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".",
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",",
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"set",
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".",
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"a",
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"women",
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"or",
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"first",
"major",
"events",
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",",
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"3",
"Webster",
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",",
"permitted",
"the",
"states",
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"enact",
"restrictions",
"on",
"abortions",
".",
"``",
"But",
"how",
"many",
"more",
"times",
"we",
"'re",
"going",
"to",
"feel",
"good",
"in",
"the",
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"15",
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"another",
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".",
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".",
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"--",
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"--",
"that",
"it",
"can",
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",",
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",",
"a",
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"scientist",
"who",
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"in",
"how",
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"legislators",
"handle",
"the",
"abortion",
"question",
".",
"``",
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"it",
"still",
"has",
"n't",
"shown",
"that",
"it",
"can",
"win",
"in",
"a",
"state",
"like",
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"or",
"Missouri",
",",
"where",
"abortion",
"has",
"been",
"clearly",
"an",
"electoral",
"issue",
"and",
"where",
"it",
"'s",
"been",
"an",
"emotional",
"issue",
"for",
"a",
"long",
"time",
".",
"''",
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"foes",
"of",
"abortion",
"hold",
"the",
"strong",
"whip",
"hand",
"in",
"Pennsylvania",
",",
"where",
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"activists",
"are",
"so",
"much",
"on",
"the",
"defensive",
"that",
"their",
"strategy",
"is",
"less",
"to",
"fight",
"the",
"proposed",
"legislation",
"than",
"it",
"is",
"to",
"stress",
"how",
"the",
"state",
"legislature",
"does",
"n't",
"reflect",
"the",
"viewpoints",
"of",
"the",
"state",
"'s",
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".",
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"a",
"result",
",",
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"Rep.",
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",",
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"plan",
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"and",
",",
"he",
"hopes",
",",
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"the",
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"1973",
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"in",
"the",
"first",
"place",
".",
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"Committee",
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"it",
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"and",
"the",
"full",
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"House",
"is",
"expected",
"to",
"take",
"up",
"the",
"bill",
"next",
"Tuesday",
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"a",
"provision",
"to",
"ban",
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"after",
"24",
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"of",
"pregnancy",
",",
"except",
"to",
"avert",
"the",
"death",
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"the",
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".",
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"that",
"the",
"provision",
",",
"which",
"attacks",
"the",
"trimester",
"standards",
"that",
"Roe",
"established",
",",
"will",
"``",
"make",
"it",
"necessary",
"''",
"for",
"the",
"Supreme",
"Court",
"to",
"review",
"Roe",
"and",
",",
"perhaps",
",",
"to",
"overturn",
"it",
".",
"But",
"the",
"Pennsylvania",
"measure",
"also",
"includes",
"an",
"``",
"informed",
"consent",
"''",
"provision",
"that",
"may",
"become",
"widely",
"imitated",
"by",
"abortion",
"foes",
"who",
"want",
"to",
"make",
"women",
"contemplating",
"abortion",
"as",
"uncomfortable",
"as",
"possible",
"with",
"the",
"procedure",
"and",
"with",
"themselves",
".",
"Under",
"this",
"legislation",
",",
"a",
"woman",
"must",
"be",
"informed",
"24",
"hours",
"before",
"the",
"operation",
"of",
"the",
"details",
"of",
"the",
"procedure",
"and",
"its",
"risks",
".",
"``",
"Regardless",
"of",
"whether",
"one",
"supports",
"or",
"opposes",
"the",
"right",
"to",
"an",
"abortion",
",",
"''",
"Mr.",
"Freind",
"argues",
",",
"``",
"it",
"is",
"virtually",
"impossible",
"for",
"any",
"rational",
"human",
"being",
"to",
"disagree",
"with",
"the",
"concept",
"that",
"a",
"woman",
"has",
"the",
"right",
"to",
"have",
"all",
"of",
"the",
"appropriate",
"materials",
"and",
"advice",
"made",
"available",
"to",
"her",
"before",
"she",
"makes",
"a",
"decision",
"which",
",",
"one",
"way",
"or",
"the",
"other",
",",
"might",
"remain",
"with",
"her",
"for",
"the",
"rest",
"of",
"her",
"life",
".",
"''",
"In",
"Michigan",
",",
"where",
"the",
"state",
"Senate",
"is",
"expected",
"to",
"approve",
"parental-consent",
"legislation",
"by",
"the",
"end",
"of",
"next",
"week",
",",
"Gov.",
"Blanchard",
"is",
"the",
"principal",
"obstacle",
"for",
"anti-abortionists",
".",
"Susan",
"Rogin",
",",
"a",
"consultant",
"to",
"abortion-rights",
"activists",
"in",
"the",
"state",
",",
"takes",
"comfort",
"from",
"the",
"fact",
"that",
"the",
"state",
"'s",
"House",
"abortion",
"opponents",
"``",
"have",
"n't",
"been",
"able",
"to",
"muster",
"the",
"votes",
"to",
"overturn",
"a",
"veto",
"on",
"abortion",
"in",
"16",
"years",
".",
"''",
"But",
"proponents",
"believe",
"they",
"may",
"be",
"able",
"to",
"shake",
"enough",
"votes",
"loose",
"to",
"override",
"the",
"veto",
"if",
"they",
"are",
"successful",
"in",
"portraying",
"the",
"legislation",
"as",
"a",
"matter",
"of",
"parents",
"'",
"rights",
".",
"In",
"Illinois",
",",
"lawmakers",
"will",
"vote",
"before",
"next",
"spring",
"on",
"legislation",
"requiring",
"physicians",
"to",
"perform",
"tests",
"on",
"fetuses",
"at",
"20",
"weeks",
"to",
"determine",
"their",
"gestational",
"age",
",",
"weight",
"and",
"lung",
"maturity",
"along",
"with",
"a",
"provision",
"requiring",
"that",
",",
"if",
"fetuses",
"survive",
"an",
"abortion",
",",
"a",
"second",
"doctor",
"must",
"be",
"on",
"hand",
"to",
"help",
"it",
"survive",
".",
"The",
"legislation",
"failed",
"by",
"one",
"vote",
"to",
"clear",
"the",
"House",
"Rules",
"Committee",
"Tuesday",
",",
"but",
"anti-abortionists",
"still",
"may",
"succeed",
"in",
"bringing",
"the",
"measure",
"to",
"the",
"floor",
"this",
"fall",
".",
"Pamela",
"Sutherland",
",",
"executive",
"director",
"of",
"the",
"Illinois",
"Planned",
"Parenthood",
"Council",
",",
"says",
"she",
"and",
"her",
"allies",
"are",
"``",
"cautiously",
"optimistic",
"''",
"they",
"can",
"defeat",
"it",
"if",
"it",
"comes",
"to",
"a",
"floor",
"vote",
".",
"Abortion",
"foes",
"in",
"Wisconsin",
",",
"meanwhile",
",",
"expect",
"a",
"parental-consent",
"bill",
"to",
"be",
"sent",
"to",
"the",
"state",
"assembly",
"floor",
"by",
"early",
"November",
"and",
"are",
"hopeful",
"of",
"prevailing",
"in",
"both",
"houses",
"by",
"next",
"March",
".",
"In",
"Texas",
",",
"abortion",
"opponents",
"want",
"to",
"pass",
"parental-consent",
"legislation",
"along",
"with",
"a",
"statewide",
"ban",
"on",
"the",
"use",
"of",
"public",
"funds",
",",
"personnel",
"and",
"facilities",
"for",
"abortion",
",",
"and",
"viability",
"tests",
"for",
"fetuses",
"19",
"weeks",
"and",
"older",
".",
"The",
"anti-abortionists",
"are",
"urging",
"GOP",
"Gov.",
"Bill",
"Clements",
"to",
"press",
"the",
"issues",
"in",
"a",
"special",
"session",
"scheduled",
"to",
"run",
"Nov.",
"14",
"to",
"Dec.",
"13",
".",
"``",
"The",
"prognosis",
"is",
"only",
"fair",
",",
"''",
"says",
"Kathie",
"Roberts",
",",
"administrative",
"director",
"of",
"the",
"Texas",
"Right",
"to",
"Life",
"Committee",
".",
"``",
"Next",
"year",
"is",
"an",
"election",
"year",
"and",
"the",
"legislators",
"just",
"do",
"n't",
"want",
"to",
"do",
"anything",
"about",
"this",
"now",
".",
"''",
"This",
"legislative",
"activity",
"comes",
"as",
"both",
"sides",
"are",
"undertaking",
"new",
"mobilization",
"efforts",
",",
"plunging",
"into",
"gubernatorial",
"races",
"in",
"Virginia",
"and",
"New",
"Jersey",
",",
"and",
"girding",
"for",
"next",
"autumn",
"'s",
"state",
"elections",
".",
"At",
"the",
"same",
"time",
",",
"abortion",
"foes",
"have",
"developed",
"a",
"national",
"legislative",
"strategy",
",",
"deciding",
"to",
"move",
"on",
"what",
"Jacki",
"Ragan",
",",
"the",
"National",
"Right",
"to",
"Life",
"Committee",
"'s",
"director",
"of",
"state",
"organizational",
"development",
",",
"calls",
"``",
"reasonable",
"measures",
"that",
"an",
"overwhelming",
"mainstream",
"majority",
"of",
"Americans",
"support",
".",
"''",
"These",
"include",
"bans",
"on",
"the",
"use",
"of",
"abortion",
"for",
"birth",
"control",
"and",
"sex",
"selection",
",",
"and",
"the",
"public",
"funding",
"of",
"alternatives",
"for",
"abortion",
".",
"``",
"Those",
"who",
"are",
"on",
"the",
"other",
"side",
"can",
"hardly",
"oppose",
"alternative",
"funding",
"if",
"they",
"continue",
"to",
"insist",
"on",
"calling",
"themselves",
"`",
"pro-choice",
"'",
"rather",
"than",
"`",
"pro-abortion",
",",
"'",
"''",
"says",
"Mary",
"Spaulding",
",",
"the",
"group",
"'s",
"associate",
"state",
"legislative",
"coordinator",
".",
"Over",
"the",
"weekend",
",",
"the",
"National",
"Abortion",
"Rights",
"Action",
"League",
"singled",
"out",
"eight",
"politicians",
",",
"including",
"Pennsylvania",
"'s",
"Mr.",
"Freind",
",",
"as",
"1990",
"targets",
"and",
"held",
"a",
"Washington",
"seminar",
"designed",
"to",
"train",
"its",
"leaders",
"in",
"political",
"techniques",
",",
"including",
"how",
"to",
"put",
"the",
"anti-abortionists",
"on",
"the",
"defensive",
"in",
"state",
"legislatures",
".",
"``",
"We",
"now",
"see",
"pro-choice",
"legislators",
"going",
"on",
"the",
"offensive",
"for",
"the",
"first",
"time",
",",
"''",
"says",
"Kate",
"Michelman",
",",
"executive",
"director",
"of",
"the",
"group",
"."
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[
"Westinghouse",
"Electric",
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"said",
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"Shaw-Walker",
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".",
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",",
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",",
"Mich.",
",",
"makes",
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"desks",
",",
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"office",
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[
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"H.",
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",",
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"division",
"of",
"Mead",
"Corp.",
",",
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"a",
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"unit",
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"and",
"senior",
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"president",
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".",
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"Johnson",
"succeeds",
"Harry",
"W.",
"Sherman",
",",
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".",
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"building",
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"products",
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[
"Many",
"skittish",
"mutual",
"fund",
"investors",
"picked",
"up",
"the",
"phone",
"yesterday",
",",
"but",
"decided",
"not",
"to",
"cash",
"in",
"their",
"chips",
"after",
"all",
".",
"As",
"the",
"stock",
"market",
"bounced",
"back",
",",
"withdrawals",
"of",
"money",
"from",
"stock",
"funds",
"amounted",
"to",
"a",
"mere",
"trickle",
"compared",
"with",
"Black",
"Monday",
",",
"when",
"investors",
"dumped",
"$",
"2.3",
"billion",
",",
"or",
"about",
"2",
"%",
"of",
"stock-fund",
"assets",
".",
"Fidelity",
"Investments",
",",
"the",
"nation",
"'s",
"largest",
"fund",
"company",
",",
"said",
"phone",
"volume",
"was",
"more",
"than",
"double",
"its",
"typical",
"level",
",",
"but",
"still",
"half",
"that",
"of",
"Oct.",
"19",
",",
"1987",
".",
"Net",
"outflows",
"from",
"Fidelity",
"'s",
"stock",
"funds",
"stood",
"at",
"less",
"than",
"$",
"300",
"million",
",",
"or",
"below",
"15",
"%",
"of",
"the",
"$",
"2",
"billion",
"cash",
"position",
"of",
"the",
"firm",
"'s",
"stock",
"portfolios",
".",
"Much",
"of",
"the",
"money",
"was",
"switched",
"into",
"the",
"firm",
"'s",
"money",
"market",
"funds",
".",
"Outflows",
"since",
"the",
"close",
"of",
"trading",
"Friday",
"remain",
"below",
"one-third",
"their",
"level",
"of",
"two",
"years",
"ago",
",",
"Fidelity",
"said",
".",
"Other",
"mutual",
"fund",
"companies",
"reported",
"even",
"lighter",
"withdrawal",
"requests",
".",
"And",
"some",
"investors",
"at",
"Fidelity",
"and",
"elsewhere",
"even",
"began",
"buying",
"stock",
"funds",
"during",
"the",
"day",
".",
"``",
"Two",
"years",
"ago",
",",
"there",
"was",
"a",
"lot",
"of",
"redemption",
"activity",
"and",
"trouble",
"with",
"people",
"getting",
"through",
"on",
"the",
"phone",
",",
"''",
"said",
"Kathryn",
"McGrath",
",",
"head",
"of",
"the",
"investment",
"management",
"division",
"of",
"the",
"Securities",
"and",
"Exchange",
"Commission",
".",
"This",
"time",
",",
"``",
"We",
"do",
"n't",
"have",
"that",
"at",
"all",
".",
"''",
"Of",
"course",
",",
"the",
"relative",
"calm",
"could",
"be",
"jolted",
"if",
"the",
"market",
"plunges",
"again",
".",
"And",
"any",
"strong",
"surge",
"in",
"redemptions",
"could",
"force",
"some",
"funds",
"to",
"dump",
"stocks",
"to",
"raise",
"cash",
",",
"as",
"some",
"did",
"during",
"Black",
"Monday",
".",
"But",
"funds",
"generally",
"are",
"better",
"prepared",
"this",
"time",
"around",
".",
"As",
"a",
"group",
",",
"their",
"cash",
"position",
"of",
"10.2",
"%",
"of",
"assets",
"in",
"August",
"--",
"the",
"latest",
"figure",
"available",
"--",
"is",
"14",
"%",
"higher",
"than",
"two",
"years",
"earlier",
".",
"Many",
"fund",
"managers",
"have",
"boosted",
"their",
"cash",
"levels",
"in",
"recent",
"weeks",
".",
"The",
"biggest",
"flurry",
"of",
"investor",
"activity",
"came",
"early",
"in",
"the",
"day",
".",
"Vanguard",
"Group",
"Inc.",
"saw",
"heavy",
"exchanges",
"from",
"stock",
"funds",
"into",
"money",
"market",
"funds",
"after",
"the",
"telephone",
"lines",
"opened",
"at",
"8:30",
"a.m",
".",
"``",
"In",
"the",
"first",
"hour",
",",
"the",
"real",
"nervous",
"folks",
"came",
"along",
",",
"''",
"a",
"spokesman",
"said",
".",
"``",
"But",
"the",
"horrendous",
"pace",
"of",
"call",
"volume",
"in",
"the",
"first",
"half-hour",
"slowed",
"considerably",
".",
"''",
"At",
"Scudder",
",",
"Stevens",
"&",
"Clark",
"Inc.",
",",
"phone",
"calls",
"came",
"in",
"at",
"40",
"%",
"more",
"than",
"the",
"normal",
"pace",
"through",
"early",
"afternoon",
".",
"Most",
"of",
"that",
"increase",
"came",
"in",
"the",
"first",
"hour",
"after",
"the",
"phone",
"lines",
"opened",
"at",
"8",
"a.m",
".",
"As",
"stocks",
"rose",
",",
"in",
"fact",
",",
"some",
"investors",
"changed",
"course",
"and",
"reversed",
"their",
"sell",
"orders",
".",
"Many",
"funds",
"allow",
"investors",
"to",
"void",
"orders",
"before",
"the",
"close",
"of",
"trading",
".",
"At",
"Scudder",
"and",
"at",
"the",
"smaller",
"Ivy",
"funds",
"group",
"in",
"Hingham",
",",
"Mass.",
",",
"for",
"instance",
",",
"some",
"shareholders",
"called",
"early",
"in",
"the",
"morning",
"to",
"switch",
"money",
"from",
"stock",
"funds",
"to",
"money",
"market",
"funds",
",",
"but",
"later",
"called",
"back",
"to",
"reverse",
"the",
"switches",
".",
"Because",
"mutual",
"fund",
"trades",
"do",
"n't",
"take",
"effect",
"until",
"the",
"market",
"close",
"--",
"in",
"this",
"case",
",",
"at",
"4",
"p.m.",
"--",
"these",
"shareholders",
"effectively",
"stayed",
"put",
".",
"At",
"Fidelity",
"'s",
"office",
"in",
"downtown",
"Boston",
",",
"Gerald",
"Sherman",
"walked",
"in",
"shortly",
"after",
"7:30",
"a.m.",
"and",
"placed",
"an",
"order",
"to",
"switch",
"his",
"retirement",
"accounts",
"out",
"of",
"three",
"stock",
"funds",
"and",
"into",
"a",
"money",
"market",
"fund",
".",
"But",
"by",
"3:15",
"p.m.",
",",
"with",
"the",
"market",
"comfortably",
"ahead",
"for",
"the",
"day",
",",
"Mr.",
"Sherman",
"was",
"preparing",
"to",
"undo",
"his",
"switch",
".",
"``",
"It",
"'s",
"a",
"nice",
"feeling",
"to",
"know",
"that",
"things",
"stabilized",
",",
"''",
"said",
"Mr.",
"Sherman",
",",
"the",
"51-year-old",
"co-owner",
"of",
"a",
"discount",
"department",
"store",
".",
"But",
"some",
"investors",
"continued",
"to",
"switch",
"out",
"of",
"high-risk",
",",
"high-yield",
"junk",
"funds",
"despite",
"yesterday",
"'s",
"rebound",
"from",
"that",
"market",
"'s",
"recent",
"price",
"declines",
".",
"Shareholders",
"have",
"been",
"steadily",
"bailing",
"out",
"of",
"several",
"big",
"junk",
"funds",
"the",
"past",
"several",
"weeks",
"as",
"the",
"$",
"200",
"billion",
"market",
"was",
"jolted",
"by",
"a",
"cash",
"crunch",
"at",
"Campeau",
"Corp.",
"and",
"steadily",
"declining",
"prices",
".",
"Much",
"of",
"the",
"money",
"has",
"been",
"switched",
"into",
"money",
"market",
"funds",
",",
"fund",
"executives",
"say",
".",
"Instead",
"of",
"selling",
"bonds",
"to",
"meet",
"redemptions",
",",
"however",
",",
"some",
"funds",
"have",
"borrowed",
"from",
"banks",
"to",
"meet",
"withdrawal",
"requests",
".",
"This",
"avoids",
"knocking",
"down",
"prices",
"further",
".",
"The",
"$",
"1.1",
"billion",
"T.",
"Rowe",
"Price",
"High",
"Yield",
"Fund",
"was",
"among",
"the",
"funds",
"that",
"borrowed",
"during",
"the",
"Campeau",
"crisis",
",",
"says",
"George",
"J.",
"Collins",
",",
"president",
"of",
"T.",
"Rowe",
"Price",
"Associates",
"Inc",
".",
"That",
"way",
",",
"Mr.",
"Collins",
"says",
",",
"``",
"We",
"did",
"n't",
"have",
"to",
"sell",
"securities",
"in",
"a",
"sloppy",
"market",
".",
"''",
"When",
"the",
"market",
"stabilized",
",",
"he",
"added",
",",
"the",
"firm",
"sold",
"the",
"bonds",
"and",
"quickly",
"paid",
"the",
"loans",
"back",
".",
"Tom",
"Herman",
"contributed",
"to",
"this",
"article",
"."
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[
"This",
"is",
"slightly",
"adapted",
"from",
"remarks",
"Oct.",
"7",
"by",
"former",
"Secretary",
"of",
"State",
"George",
"P.",
"Shultz",
"to",
"an",
"alumni",
"gathering",
"at",
"the",
"Stanford",
"Business",
"School",
",",
"where",
"he",
"has",
"returned",
"to",
"the",
"faculty",
":",
"I",
"was",
"struck",
"a",
"couple",
"of",
"years",
"ago",
"by",
"the",
"drug-interdiction",
"effort",
"in",
"the",
"Bahamas",
".",
"We",
"had",
"intercepted",
"during",
"the",
"year",
"an",
"estimated",
"$",
"5",
"billion",
"street",
"value",
"of",
"cocaine",
".",
"I",
"do",
"n't",
"know",
"how",
"much",
"got",
"through",
".",
"Nobody",
"has",
"any",
"credible",
"estimate",
".",
"The",
"GNP",
"of",
"the",
"Bahamas",
"is",
"probably",
"somewhere",
"between",
"one",
"and",
"two",
"billion",
"dollars",
".",
"So",
"you",
"get",
"an",
"idea",
"of",
"the",
"leverage",
"there",
"and",
"elsewhere",
"that",
"our",
"market",
"for",
"drugs",
"has",
"brought",
"about",
".",
"I",
"welcome",
"the",
"emphasis",
"that",
"is",
"now",
"being",
"put",
"on",
"the",
"drug",
"problem",
".",
"The",
"efforts",
"to",
"get",
"to",
"the",
"people",
"who",
"are",
"addicted",
",",
"try",
"to",
"rehabilitate",
"them",
";",
"if",
"they",
"can",
"not",
"be",
"rehabilitated",
",",
"at",
"least",
"to",
"contain",
"them",
";",
"to",
"educate",
"people",
",",
"to",
"strongly",
"discourage",
"use",
"of",
"drugs",
"by",
"people",
"who",
"are",
"casual",
"users",
"and",
"first",
"users",
",",
"to",
"stop",
"this",
"process",
"among",
"the",
"young",
"--",
"all",
"of",
"these",
"things",
"I",
"think",
"are",
"extremely",
"important",
".",
"But",
",",
"I",
"have",
"to",
"tell",
"you",
"that",
"it",
"seems",
"to",
"me",
"that",
"the",
"conceptual",
"base",
"of",
"the",
"current",
"program",
"is",
"flawed",
"and",
"the",
"program",
"is",
"not",
"likely",
"to",
"work",
".",
"The",
"conceptual",
"base",
"--",
"a",
"criminal-justice",
"approach",
"--",
"is",
"the",
"same",
"that",
"I",
"have",
"worked",
"through",
"before",
",",
"in",
"the",
"Nixon",
"administration",
"when",
"I",
"was",
"budget",
"director",
"and",
"secretary",
"of",
"the",
"treasury",
"with",
"jurisdiction",
"over",
"the",
"Customs",
".",
"We",
"designed",
"a",
"comprehensive",
"program",
",",
"and",
"we",
"worked",
"hard",
"on",
"it",
".",
"In",
"the",
"Reagan",
"administration",
"we",
"designed",
"a",
"comprehensive",
"program",
";",
"we",
"worked",
"very",
"hard",
"on",
"it",
".",
"Our",
"international",
"efforts",
"were",
"far",
"greater",
"than",
"ever",
"before",
".",
"You",
"'re",
"looking",
"at",
"a",
"guy",
"whose",
"motorcade",
"was",
"attacked",
"in",
"Bolivia",
"by",
"the",
"drug",
"terrorists",
",",
"so",
"I",
"'m",
"personally",
"a",
"veteran",
"of",
"this",
"war",
".",
"What",
"we",
"have",
"before",
"us",
"now",
"is",
"essentially",
"the",
"same",
"program",
"but",
"with",
"more",
"resources",
"plowed",
"into",
"all",
"of",
"the",
"efforts",
"to",
"enforce",
"and",
"control",
".",
"These",
"efforts",
"wind",
"up",
"creating",
"a",
"market",
"where",
"the",
"price",
"vastly",
"exceeds",
"the",
"cost",
".",
"With",
"these",
"incentives",
",",
"demand",
"creates",
"its",
"own",
"supply",
"and",
"a",
"criminal",
"network",
"along",
"with",
"it",
".",
"It",
"seems",
"to",
"me",
"we",
"'re",
"not",
"really",
"going",
"to",
"get",
"anywhere",
"until",
"we",
"can",
"take",
"the",
"criminality",
"out",
"of",
"the",
"drug",
"business",
"and",
"the",
"incentives",
"for",
"criminality",
"out",
"of",
"it",
".",
"Frankly",
",",
"the",
"only",
"way",
"I",
"can",
"think",
"of",
"to",
"accomplish",
"this",
"is",
"to",
"make",
"it",
"possible",
"for",
"addicts",
"to",
"buy",
"drugs",
"at",
"some",
"regulated",
"place",
"at",
"a",
"price",
"that",
"approximates",
"their",
"cost",
".",
"When",
"you",
"do",
"that",
"you",
"wipe",
"out",
"the",
"criminal",
"incentives",
",",
"including",
",",
"I",
"might",
"say",
",",
"the",
"incentive",
"that",
"the",
"drug",
"pushers",
"have",
"to",
"go",
"around",
"and",
"get",
"kids",
"addicted",
",",
"so",
"that",
"they",
"create",
"a",
"market",
"for",
"themselves",
".",
"They",
"wo",
"n't",
"have",
"that",
"incentive",
"because",
"they",
"wo",
"n't",
"have",
"that",
"market",
".",
"So",
"I",
"think",
"the",
"conceptual",
"base",
"needs",
"to",
"be",
"thought",
"out",
"in",
"a",
"different",
"way",
".",
"If",
"I",
"am",
"catching",
"your",
"attention",
",",
"then",
"read",
"a",
"bold",
"and",
"informative",
"article",
"in",
"this",
"September",
"'s",
"issue",
"of",
"Science",
"by",
"Ethan",
"Nadelmann",
"on",
"this",
"subject",
".",
"We",
"need",
"at",
"least",
"to",
"consider",
"and",
"examine",
"forms",
"of",
"controlled",
"legalization",
"of",
"drugs",
".",
"I",
"find",
"it",
"very",
"difficult",
"to",
"say",
"that",
".",
"Sometimes",
"at",
"a",
"reception",
"or",
"cocktail",
"party",
"I",
"advance",
"these",
"views",
"and",
"people",
"head",
"for",
"somebody",
"else",
".",
"They",
"do",
"n't",
"even",
"want",
"to",
"talk",
"to",
"you",
".",
"I",
"know",
"that",
"I",
"'m",
"shouting",
"into",
"the",
"breeze",
"here",
"as",
"far",
"as",
"what",
"we",
"'re",
"doing",
"now",
".",
"But",
"I",
"feel",
"that",
"if",
"somebody",
"does",
"n't",
"get",
"up",
"and",
"start",
"talking",
"about",
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",",
"the",
"next",
"time",
"around",
",",
"when",
"we",
"have",
"the",
"next",
"iteration",
"of",
"these",
"programs",
",",
"it",
"will",
"still",
"be",
"true",
"that",
"everyone",
"is",
"scared",
"to",
"talk",
"about",
"it",
".",
"No",
"politician",
"wants",
"to",
"say",
"what",
"I",
"just",
"said",
",",
"not",
"for",
"a",
"minute",
"."
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"Resources",
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".",
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",",
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"meetings",
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"10",
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",",
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"667",
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",",
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"63",
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"342",
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"the",
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20,
13,
26,
4,
4,
4,
4,
12,
6,
4,
12,
9,
12,
11,
9,
0,
14,
12,
17,
17,
12,
19,
17,
19,
20,
21,
25,
25,
22,
27,
25,
32,
32,
32,
32,
22,
12
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[
"The",
"first",
"major",
"event",
"this",
"morning",
"in",
"U.S.",
"stock",
"and",
"futures",
"trading",
"may",
"be",
"a",
"pause",
"at",
"the",
"Chicago",
"Mercantile",
"Exchange",
".",
"Under",
"a",
"reform",
"arising",
"from",
"the",
"1987",
"crash",
",",
"trading",
"in",
"the",
"Merc",
"'s",
"stock-index",
"futures",
"will",
"break",
"for",
"10",
"minutes",
"if",
"the",
"contract",
"opens",
"and",
"stays",
"five",
"points",
"from",
"Friday",
"'s",
"close",
",",
"a",
"move",
"equal",
"to",
"40",
"points",
"on",
"the",
"Dow",
"Jones",
"Industrial",
"Average",
".",
"The",
"aim",
"of",
"the",
"interruption",
"would",
"be",
"to",
"ease",
"the",
"opening",
"of",
"the",
"New",
"York",
"Stock",
"Exchange",
",",
"which",
"would",
"be",
"hammered",
"by",
"such",
"a",
"volatile",
"move",
"on",
"the",
"Merc",
".",
"That",
"early-morning",
"breather",
"is",
"just",
"one",
"of",
"a",
"number",
"of",
"safeguards",
"adopted",
"after",
"the",
"1987",
"crash",
".",
"The",
"Big",
"Board",
"also",
"added",
"computer",
"capacity",
"to",
"handle",
"huge",
"surges",
"in",
"trading",
"volume",
".",
"Several",
"of",
"those",
"post-crash",
"changes",
"kicked",
"in",
"during",
"Friday",
"'s",
"one-hour",
"collapse",
"and",
"worked",
"as",
"expected",
",",
"even",
"though",
"they",
"did",
"n't",
"prevent",
"a",
"stunning",
"plunge",
".",
"But",
"the",
"major",
"``",
"circuit",
"breakers",
"''",
"have",
"yet",
"to",
"be",
"evaluated",
".",
"A",
"deeper",
"market",
"plunge",
"today",
"could",
"give",
"them",
"their",
"first",
"test",
".",
"A",
"further",
"slide",
"also",
"would",
"resurrect",
"debate",
"over",
"a",
"host",
"of",
"other",
",",
"more",
"sweeping",
"changes",
"proposed",
"--",
"but",
"not",
"implemented",
"--",
"after",
"the",
"last",
"crash",
".",
"Most",
"notably",
",",
"several",
"of",
"the",
"regulatory",
"steps",
"recommended",
"by",
"the",
"Brady",
"Task",
"Force",
",",
"which",
"analyzed",
"the",
"1987",
"crash",
",",
"would",
"be",
"revived",
"--",
"especially",
"because",
"that",
"group",
"'s",
"chairman",
"is",
"now",
"the",
"Treasury",
"secretary",
".",
"The",
"most",
"controversial",
"of",
"the",
"Brady",
"recommendations",
"involved",
"establishing",
"a",
"single",
"overarching",
"regulator",
"to",
"handle",
"crucial",
"cross-market",
"questions",
",",
"such",
"as",
"setting",
"consistent",
"margin",
"requirements",
"for",
"the",
"stock",
"and",
"futures",
"markets",
".",
"But",
"for",
"the",
"moment",
",",
"attention",
"focuses",
"on",
"the",
"reforms",
"that",
"were",
"put",
"into",
"place",
",",
"and",
"market",
"regulators",
"and",
"participants",
"said",
"the",
"circuit",
"breakers",
"worked",
"as",
"intended",
".",
"Big",
"Board",
"and",
"Merc",
"officials",
"expressed",
"satisfaction",
"with",
"the",
"results",
"of",
"two",
"limits",
"imposed",
"on",
"of",
"the",
"Merc",
"'s",
"Standard",
"&",
"Poor",
"'s",
"500",
"contract",
",",
"as",
"well",
"as",
"``",
"hot-line",
"''",
"communications",
"among",
"exchanges",
".",
"Those",
"pauses",
"--",
"from",
"2:07",
"p.m.",
"to",
"2:30",
"p.m.",
"CDT",
"and",
"from",
"2:45",
"p.m.",
"until",
"the",
"close",
"of",
"trading",
"a",
"half-hour",
"later",
"--",
"forced",
"traders",
"to",
"buy",
"and",
"sell",
"contracts",
"at",
"prices",
"at",
"or",
"higher",
"than",
"their",
"frozen",
"levels",
".",
"During",
"the",
"first",
"halt",
",",
"after",
"the",
"S&P",
"index",
"had",
"fallen",
"12",
"points",
",",
"the",
"Big",
"Board",
"'s",
"``",
"Sidecar",
"''",
"computer",
"program",
"automatically",
"was",
"triggered",
".",
"That",
"system",
"is",
"designed",
"to",
"separate",
"computer-generated",
"program",
"trades",
"from",
"all",
"other",
"trades",
"to",
"help",
"exchange",
"officials",
"resolve",
"order",
"imbalances",
"in",
"individual",
"stocks",
".",
"One",
"Merc",
"broker",
"compared",
"the",
"action",
"in",
"the",
"S&P",
"pit",
"during",
"the",
"two",
"freezes",
"to",
"a",
"fire",
"at",
"a",
"well-drilled",
"school",
".",
"``",
"You",
"do",
"n't",
"want",
"the",
"fire",
"but",
"you",
"know",
"what",
"to",
"do",
",",
"''",
"said",
"Howard",
"Dubnow",
",",
"an",
"independent",
"floor",
"broker",
"and",
"a",
"Merc",
"governor",
".",
"``",
"There",
"was",
"no",
"panic",
".",
"The",
"system",
"worked",
"the",
"way",
"we",
"devised",
"it",
"to",
"work",
".",
"''",
"After",
"reopening",
"for",
"about",
"15",
"minutes",
",",
"the",
"S&P",
"index",
"tumbled",
"to",
"its",
"30-point",
"limit",
"and",
"the",
"second",
"freeze",
"went",
"into",
"effect",
".",
"Traders",
"then",
"spent",
"the",
"last",
"half-hour",
"``",
"watching",
"to",
"see",
"if",
"the",
"Dow",
"would",
"drop",
"250",
"points",
",",
"''",
"Mr.",
"Dubnow",
"added",
",",
"referring",
"to",
"the",
"level",
"at",
"which",
"the",
"stock",
"market",
"itself",
"would",
"have",
"closed",
"for",
"an",
"hour",
".",
"One",
"observer",
"estimated",
"that",
"80",
"%",
"to",
"90",
"%",
"of",
"the",
"S&P",
"traders",
"``",
"were",
"just",
"standing",
"around",
"watching",
".",
"''",
"But",
"the",
"250-point",
"circuit",
"breaker",
"never",
"had",
"to",
"kick",
"in",
",",
"and",
"freezes",
"on",
"the",
"Chicago",
"Board",
"of",
"Trade",
"'s",
"Major",
"Market",
"Index",
"also",
"were",
"n't",
"triggered",
".",
"The",
"MMI",
"and",
"the",
"S&P",
"500",
"are",
"the",
"two",
"major",
"indexes",
"used",
"by",
"program",
"traders",
"to",
"run",
"their",
"computerized",
"trading",
"strategies",
".",
"The",
"programs",
"are",
"considered",
"by",
"many",
"to",
"be",
"a",
"major",
"cause",
"of",
"the",
"1987",
"crash",
".",
"The",
"process",
"of",
"post-crash",
"reforms",
"began",
"with",
"calls",
"to",
"remake",
"the",
"markets",
"and",
"wound",
"up",
"a",
"year",
"later",
"with",
"a",
"series",
"of",
"rather",
"technical",
"adjustments",
".",
"In",
"October",
"1987",
",",
"just",
"after",
"the",
"market",
"drop",
",",
"Washington",
"was",
"awash",
"in",
"talk",
"of",
"sweeping",
"changes",
"in",
"the",
"way",
"the",
"financial",
"markets",
"are",
"structured",
"and",
"regulated",
".",
"Over",
"the",
"next",
"year",
"that",
"grand",
"agenda",
"was",
"whittled",
"down",
"to",
"a",
"series",
"of",
"steps",
"to",
"soften",
"big",
"stock",
"drops",
"by",
"interrupting",
"trading",
"to",
"give",
"market",
"players",
"time",
"to",
"pause",
"and",
"reconsider",
"positions",
".",
"In",
"addition",
",",
"limits",
"were",
"placed",
"on",
"computer-driven",
"trading",
",",
"and",
"steps",
"were",
"taken",
"to",
"better",
"link",
"the",
"stock",
"and",
"futures",
"markets",
".",
"Few",
"changes",
"were",
"made",
"in",
"the",
"way",
"the",
"markets",
"are",
"regulated",
".",
"At",
"the",
"outset",
"the",
"prime",
"target",
"was",
"program",
"trading",
",",
"which",
"was",
"much",
"discussed",
"but",
"little",
"understood",
"on",
"Capitol",
"Hill",
".",
"There",
"were",
"also",
"calls",
"to",
"strip",
"the",
"stock",
"markets",
"of",
"``",
"derivative",
"''",
"products",
",",
"such",
"as",
"stock-index",
"futures",
"and",
"options",
",",
"which",
"Federal",
"Judge",
"Stanley",
"Sporkin",
",",
"for",
"example",
",",
"likened",
"to",
"``",
"barnacles",
"attached",
"to",
"the",
"basic",
"market",
".",
"''",
"And",
"there",
"was",
"much",
"criticism",
"of",
"the",
"New",
"York",
"Stock",
"Exchange",
"'s",
"system",
"of",
"having",
"stock",
"trades",
"flow",
"through",
"specialists",
",",
"or",
"market",
"makers",
".",
"When",
"the",
"Brady",
"Task",
"Force",
"'s",
"powerful",
"analysis",
"of",
"the",
"crash",
"was",
"released",
"in",
"January",
"1988",
",",
"it",
"immediately",
"reshaped",
"the",
"reformers",
"'",
"agenda",
".",
"Arguing",
"that",
"the",
"separate",
"financial",
"marketplaces",
"acted",
"as",
"one",
",",
"and",
"concluding",
"that",
"the",
"crash",
"had",
"``",
"raised",
"the",
"possibility",
"of",
"a",
"full-scale",
"financial",
"system",
"breakdown",
",",
"''",
"the",
"presidential",
"task",
"force",
"called",
"for",
"establishing",
"a",
"super-regulator",
"to",
"oversee",
"the",
"markets",
",",
"to",
"make",
"margins",
"consistent",
"across",
"markets",
",",
"to",
"unify",
"clearing",
"systems",
"and",
"to",
"install",
"circuit",
"breakers",
".",
"Only",
"the",
"last",
"of",
"those",
"recommendations",
"ever",
"was",
"implemented",
".",
"The",
"Reagan",
"White",
"House",
"held",
"the",
"Brady",
"recommendations",
"at",
"arm",
"'s",
"length",
"and",
"named",
"a",
"second",
"panel",
"--",
"the",
"Working",
"Group",
"on",
"the",
"Financial",
"Markets",
"--",
"to",
"review",
"its",
"analysis",
"and",
"those",
"of",
"other",
"crash",
"studies",
".",
"In",
"May",
"1988",
",",
"the",
"Working",
"Group",
",",
"made",
"up",
"of",
"representatives",
"from",
"the",
"Federal",
"Reserve",
",",
"the",
"Treasury",
",",
"the",
"Securities",
"and",
"Exchange",
"Commission",
",",
"and",
"the",
"Commodity",
"Futures",
"Trading",
"Commission",
",",
"finally",
"endorsed",
"only",
"circuit",
"breakers",
".",
"After",
"several",
"more",
"months",
"of",
"arguments",
"among",
"various",
"stock",
"exchanges",
"and",
"futures",
"markets",
",",
"circuit",
"breakers",
"were",
"set",
"in",
"place",
",",
"with",
"the",
"most",
"notable",
"suspending",
"trading",
"after",
"250",
"and",
"400",
"point",
"drops",
"in",
"the",
"Dow",
"Jones",
"Industrial",
"Average",
".",
"Privately",
",",
"some",
"free",
"marketeers",
"dismissed",
"such",
"mechanisms",
"as",
"sops",
"to",
"interventionists",
".",
"After",
"all",
",",
"this",
"free-market",
"argument",
"went",
",",
"the",
"Dow",
"only",
"dropped",
"more",
"than",
"250",
"points",
"once",
"this",
"century",
".",
"``",
"Circuit",
"breakers",
"''",
"set",
"to",
"soften",
"big",
"drops",
":",
"--",
"If",
"S&P",
"futures",
"fall",
"5",
"points",
"at",
"opening",
",",
"contract",
"trading",
"pauses",
"for",
"10",
"minutes",
".",
"--",
"If",
"Dow",
"Industrials",
"fall",
"25",
"points",
"at",
"opening",
",",
"contract",
"trading",
"pauses",
"for",
"10",
"minutes",
".",
"--",
"If",
"S&P",
"futures",
"fall",
"12",
"points",
"(",
"equivalent",
"to",
"about",
"100",
"points",
"on",
"DJIA",
")",
",",
"trading",
"is",
"frozen",
"for",
"half",
"hour",
"to",
"that",
"price",
"or",
"higher",
".",
"On",
"NYSE",
"program",
"trades",
"are",
"diverted",
"into",
"a",
"separate",
"computer",
"file",
"to",
"determine",
"buy",
"and",
"sell",
"orders",
".",
"--",
"If",
"S&P",
"futures",
"fall",
"30",
"points",
",",
"trading",
"is",
"restricted",
"for",
"an",
"hour",
"to",
"that",
"price",
"or",
"higher",
".",
"--",
"If",
"Dow",
"Industrials",
"fall",
"250",
"points",
",",
"trading",
"on",
"the",
"Big",
"Board",
"halts",
"for",
"an",
"hour",
".",
"S&P",
"and",
"MMI",
"contracts",
"also",
"halt",
".",
"--",
"If",
"DJIA",
"drops",
"400",
"points",
",",
"Big",
"Board",
"halts",
"trading",
"for",
"two",
"hours",
".",
"Trading",
"in",
"MMI",
"and",
"S&P",
"futures",
"also",
"halted",
".",
"Brady",
"Task",
"Force",
"recommendations",
"(",
"Jan.",
"1988",
")",
":",
"--",
"Establish",
"an",
"overarching",
"regulator",
"for",
"financial",
"markets",
"--",
"Unify",
"trade-clearing",
"systems",
"--",
"Make",
"margins",
"consistent",
"across",
"stock",
"and",
"futures",
"markets",
"SEC",
"proposals",
"(",
"May",
"1988",
")",
":",
"--",
"Require",
"prompt",
"reports",
"of",
"large",
"securities",
"trades",
".",
"--",
"Give",
"SEC",
"authority",
"to",
"monitor",
"risk-taking",
"by",
"affiliates",
"of",
"brokerage",
"firms",
".",
"--",
"Transfer",
"jurisdiction",
"over",
"stock-related",
"futures",
"to",
"SEC",
"from",
"CFTC",
".",
"(",
"Opposed",
"by",
"new",
"SEC",
"chairman",
")",
"--",
"Give",
"SEC",
"authority",
"to",
"halt",
"securities",
"trading",
",",
"(",
"also",
"opposed",
"by",
"new",
"SEC",
"chairman",
")",
".",
"Congressional",
"proposal",
":",
"--",
"Create",
"a",
"task",
"force",
"to",
"review",
"current",
"state",
"of",
"the",
"securities",
"markets",
"and",
"securities",
"laws",
".",
"Breaking",
"the",
"Soviet",
"government",
"'s",
"television",
"monopoly",
",",
"an",
"independent",
"company",
"has",
"gained",
"rights",
"to",
"show",
"world",
"programming",
",",
"including",
"American",
"films",
".",
"``",
"There",
"must",
"not",
"be",
"a",
"monopoly",
",",
"there",
"must",
"be",
"freedom",
"of",
"choice",
"for",
"both",
"journalists",
"and",
"viewers",
",",
"''",
"Nikolai",
"I.",
"Lutsenko",
",",
"the",
"president",
"of",
"the",
"Nika",
"TV",
"company",
",",
"told",
"the",
"weekly",
"newspaper",
"Nedelya",
".",
"The",
"company",
"is",
"already",
"working",
"on",
"its",
"own",
"programming",
"in",
"several",
"provincial",
"cities",
"and",
"hopes",
"to",
"be",
"on",
"the",
"air",
"regularly",
"in",
"about",
"a",
"year",
",",
"the",
"newspaper",
"said",
".",
"Mr.",
"Lutsenko",
"told",
"Nedelya",
"that",
"he",
"recently",
"had",
"been",
"to",
"the",
"U.S.",
"to",
"pick",
"up",
"the",
"rights",
"to",
"show",
"5,000",
"U.S.",
"films",
"in",
"the",
"Soviet",
"Union",
".",
"Nedelya",
"'s",
"article",
"was",
"accompanied",
"by",
"a",
"picture",
"of",
"Mr.",
"Lutsenko",
"interviewing",
"singer",
"John",
"Denver",
"in",
"Colorado",
".",
"Even",
"though",
"it",
"will",
"be",
"independent",
"of",
"official",
"television",
",",
"Nika",
"will",
"have",
"an",
"oversight",
"board",
"that",
"will",
"include",
"members",
"of",
"the",
"Communist",
"youth",
"league",
".",
"South",
"Africa",
"'s",
"National",
"Union",
"of",
"Mineworkers",
"said",
"that",
"about",
"10,000",
"diamond",
"miners",
"struck",
"for",
"higher",
"wages",
"at",
"De",
"Beers",
"Consolidated",
"Mines",
"Ltd.",
"De",
"Beers",
"said",
"that",
"workers",
"at",
"five",
"of",
"the",
"group",
"'s",
"mines",
"were",
"on",
"strike",
",",
"which",
"it",
"said",
"was",
"peaceful",
",",
"with",
"orderly",
"picketing",
"occurring",
"at",
"one",
"of",
"the",
"mines",
".",
"The",
"deadlock",
"in",
"negotiations",
"occurred",
"with",
"De",
"Beers",
"offering",
"a",
"17",
"%",
"increase",
"in",
"the",
"minimum-wage",
"category",
"while",
"the",
"union",
"demanded",
"a",
"37.6",
"%",
"increase",
"in",
"the",
"minimum",
"wage",
".",
"Japan",
"'s",
"opposition",
"Socialist",
"Party",
"denied",
"that",
"its",
"legislators",
"had",
"been",
"bribed",
"by",
"pinball-parlor",
"owners",
".",
"The",
"allegation",
"had",
"been",
"raised",
"in",
"Parliament",
"by",
"the",
"governing",
"Liberal",
"Democratic",
"Party",
"following",
"magazine",
"reports",
"suggesting",
"that",
"money",
"from",
"Japanese-style",
"pinball",
",",
"called",
"pachinko",
",",
"had",
"infiltrated",
"politics",
".",
"Tsuruo",
"Yamaguchi",
",",
"secretary",
"general",
"of",
"the",
"Socialist",
"Party",
",",
"acknowledged",
"that",
"nine",
"party",
"lawmakers",
"had",
"received",
"donations",
"from",
"the",
"pachinko",
"association",
"totaling",
"8",
"million",
"yen",
"(",
"about",
"$",
"55,000",
")",
"but",
"said",
"the",
"donations",
"were",
"legal",
"and",
"none",
"of",
"its",
"members",
"acted",
"to",
"favor",
"the",
"industry",
".",
"The",
"World",
"Wide",
"Fund",
"for",
"Nature",
"said",
"that",
"Spain",
",",
"Argentina",
",",
"Thailand",
"and",
"Indonesia",
"were",
"doing",
"too",
"little",
"to",
"prevent",
"illegal",
"trade",
"in",
"endangered",
"wildlife",
"across",
"their",
"borders",
".",
"A",
"report",
"by",
"the",
"conservation",
"group",
"presented",
"at",
"the",
"U.N.-sponsored",
"Convention",
"on",
"International",
"Trade",
"in",
"Endangered",
"Species",
"in",
"Lausanne",
"accused",
"the",
"four",
"of",
"trading",
"protected",
"species",
"ranging",
"from",
"parakeets",
"to",
"orchids",
".",
"Fund",
"official",
"Simon",
"Lyster",
"said",
"world",
"trade",
"in",
"wildlife",
"was",
"estimated",
"to",
"total",
"$",
"5",
"billion",
"of",
"business",
"annually",
".",
"A",
"NATO",
"project",
"to",
"build",
"a",
"frigate",
"for",
"the",
"1990s",
"was",
"torpedoed",
"by",
"the",
"pull-out",
"of",
"three",
"of",
"its",
"eight",
"participating",
"nations",
".",
"Britain",
",",
"France",
"and",
"Italy",
"announced",
"technical",
"reasons",
"for",
"withdrawing",
",",
"but",
"some",
"officials",
"pointed",
"to",
"growing",
"reluctance",
"among",
"the",
"allies",
"to",
"commit",
"themselves",
"to",
"big",
"defense",
"spending",
"while",
"East-West",
"disarmament",
"talks",
"show",
"signs",
"of",
"success",
".",
"Small",
"wonder",
"that",
"Britain",
"'s",
"Labor",
"Party",
"wants",
"credit",
"controls",
".",
"A",
"few",
"hours",
"after",
"the",
"party",
"launched",
"its",
"own",
"affinity",
"credit",
"card",
"earlier",
"this",
"month",
",",
"the",
"Tories",
"raised",
"the",
"nation",
"'s",
"base",
"interest",
"rate",
".",
"Labor",
"'s",
"Visa",
"card",
"is",
"believed",
"to",
"be",
"the",
"first",
"linked",
"to",
"a",
"British",
"political",
"party",
".",
"Labor",
"gets",
"25",
"pence",
"(",
"39",
"cents",
")",
"for",
"every",
"100",
"(",
"about",
"$",
"155",
")",
"that",
"a",
"user",
"charges",
"to",
"the",
"card",
".",
"As",
"with",
"other",
"plastic",
"in",
"Britain",
"'s",
"high-interest-rate",
"environment",
",",
"the",
"Labor",
"card",
",",
"administered",
"by",
"Co-operative",
"Bank",
",",
"carries",
"a",
"stiff",
"(",
"in",
"this",
"case",
",",
"29.8",
"%",
")",
"annual",
"rate",
"on",
"the",
"unpaid",
"balance",
".",
"China",
"'s",
"year-long",
"austerity",
"program",
"has",
"achieved",
"some",
"successes",
"in",
"harnessing",
"runaway",
"economic",
"growth",
"and",
"stabilizing",
"prices",
"but",
"has",
"failed",
"to",
"eliminate",
"serious",
"defects",
"in",
"state",
"planning",
"and",
"an",
"alarming",
"drain",
"on",
"state",
"budgets",
".",
"The",
"official",
"China",
"Daily",
"said",
"retail",
"prices",
"of",
"non-staple",
"foods",
"have",
"n't",
"risen",
"since",
"last",
"December",
"but",
"acknowledged",
"that",
"huge",
"government",
"subsidies",
"were",
"a",
"main",
"factor",
"in",
"keeping",
"prices",
"down",
".",
"The",
"State",
"Statistical",
"Bureau",
"found",
"that",
"more",
"than",
"1",
"billion",
"yuan",
"(",
"$",
"270",
"million",
")",
"was",
"spent",
"in",
"the",
"first",
"half",
"of",
"the",
"year",
"for",
"pork",
"subsidies",
".",
"The",
"newspaper",
"quoted",
"experts",
"as",
"saying",
"the",
"subsidies",
"would",
"cause",
"the",
"difference",
"between",
"prices",
"and",
"real",
"values",
"of",
"commodities",
"to",
"``",
"become",
"very",
"unreasonable",
"''",
"and",
"reduce",
"needed",
"funds",
"for",
"investment",
"in",
"the",
"``",
"already",
"difficult",
"state",
"budget",
".",
"''",
"The",
"aim",
"of",
"the",
"austerity",
"measures",
"was",
"to",
"slice",
"economic",
"growth",
",",
"which",
"soared",
"to",
"20.7",
"%",
"last",
"year",
",",
"to",
"8",
"%",
"in",
"1990",
".",
"Economists",
"now",
"predict",
"the",
"growth",
"rate",
"will",
"be",
"about",
"11.5",
"%",
"for",
"the",
"year",
".",
"In",
"a",
"sign",
"of",
"growing",
"official",
"tolerance",
"for",
"religion",
",",
"Russian",
"Orthodox",
"priests",
"were",
"allowed",
"to",
"celebrate",
"the",
"400th",
"anniversary",
"of",
"the",
"Moscow",
"patriarchate",
"in",
"the",
"Kremlin",
"'s",
"15th-century",
"Uspensky",
"Cathedral",
",",
"where",
"czars",
"were",
"crowned",
"...",
".",
"A",
"34-foot-tall",
",",
"$",
"7.7",
"million",
"statue",
"of",
"Buddha",
"was",
"completed",
"on",
"a",
"hill",
"outside",
"Hong",
"Kong",
",",
"facing",
"China",
".",
"The",
"statue",
"is",
"the",
"brainchild",
"of",
"Sik",
"Chi",
"Wan",
",",
"director",
"of",
"the",
"Po",
"Lin",
"Monastery",
",",
"who",
"said",
":",
"``",
"Hong",
"Kong",
"is",
"such",
"a",
"prosperous",
"place",
",",
"we",
"also",
"need",
"some",
"kind",
"of",
"religious",
"symbol",
"."
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[
"In",
"the",
"wake",
"of",
"a",
"slide",
"in",
"sterling",
",",
"a",
"tailspin",
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",",
"and",
"a",
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"problematic",
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"indicators",
",",
"British",
"Chancellor",
"of",
"the",
"Exchequer",
"Nigel",
"Lawson",
"promised",
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".",
"In",
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"'s",
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",",
"Mr.",
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"the",
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",",
"using",
"high",
"interest",
"rates",
"as",
"``",
"the",
"essential",
"instrument",
"''",
"to",
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"out",
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".",
"Two",
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"boosting",
"base",
"rates",
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"15",
"%",
",",
"he",
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"``",
"rates",
"will",
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".",
"''",
"Mr.",
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"he",
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"exchange",
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".",
"A",
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"makes",
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"more",
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"businesses",
"'",
"expectations",
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",",
"he",
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".",
"In",
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",",
"he",
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"``",
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".",
"''",
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"interest",
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",",
"Mr.",
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".",
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",",
"but",
"does",
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",",
"as",
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".",
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".",
"Mr.",
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",",
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",",
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".",
"Two",
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",",
"in",
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"arrest",
"a",
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",",
"he",
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"a",
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"15",
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".",
"Despite",
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",",
"the",
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"a",
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".",
"It",
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"late",
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"York",
"trading",
"Wednesday",
".",
"Leading",
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"the",
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"was",
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"economic",
"statistics",
"suggesting",
"that",
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"on",
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"will",
"be",
"more",
"bruising",
"than",
"previously",
"assumed",
".",
"Unemployment",
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"to",
"1,695,000",
",",
"the",
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"level",
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"1980",
".",
"While",
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",",
"the",
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"indicates",
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"as",
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"as",
"hoped",
"--",
"despite",
"a",
"doubling",
"of",
"interest",
"rates",
"over",
"the",
"last",
"16",
"months",
".",
"Meanwhile",
",",
"average",
"earnings",
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"Britain",
"were",
"up",
"8.75",
"%",
"in",
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"over",
"the",
"previous",
"year",
".",
"Another",
"inflationary",
"sign",
"came",
"in",
"a",
"surge",
"in",
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"lending",
"to",
"a",
"record",
"#",
"10.2",
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"(",
"$",
"16.22",
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")",
"last",
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",",
"a",
"much",
"higher",
"level",
"than",
"economists",
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".",
"In",
"a",
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"speech",
"prepared",
"for",
"delivery",
"at",
"the",
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",",
"Robin",
"Leigh-Pemberton",
",",
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",",
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"``",
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"even",
"more",
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"had",
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"''",
"when",
"the",
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"year",
".",
"He",
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"``",
"there",
"'s",
"no",
"quick-fix",
"solution",
"''",
"to",
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",",
"and",
"said",
"``",
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"the",
"right",
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".",
"''",
"Discussing",
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",",
"the",
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"``",
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"''",
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"``",
"nasty",
"jolt",
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"190.58-point",
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"Average",
"a",
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".",
"Although",
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"plunge",
"prompted",
"a",
"70.5-point",
"drop",
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"the",
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"Financial",
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"Exchange",
"100",
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",",
"Mr.",
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"owed",
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"the",
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"the",
"British",
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".",
"''",
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",",
"he",
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"that",
"compared",
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"U.S.",
"market",
",",
"the",
"U.K.",
"has",
"far",
"fewer",
"highly",
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"junk-bond",
"financings",
".",
"Discussing",
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",",
"Mr.",
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"of",
"the",
"European",
"Monetary",
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",",
"but",
"he",
"did",
"n't",
"indicate",
"when",
"."
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[
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",",
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"Pauline",
"Newman",
",",
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",",
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",",
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",",
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".",
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"Daniel",
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",",
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",",
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".",
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",",
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"specialists",
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"added",
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"Several",
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",",
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"Association",
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"Manufacturers",
"Association",
",",
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"Dr.",
"Alan",
"D.",
"Lourie",
",",
"54",
",",
"a",
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"chemistry",
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".",
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"him",
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".",
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"received",
"a",
"lukewarm",
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"the",
"Justice",
"Department",
".",
"``",
"We",
"do",
"not",
"feel",
"that",
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"(",
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",",
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"David",
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",",
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"soon",
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"candidate",
"will",
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] |
[
"When",
"China",
"opened",
"its",
"doors",
"to",
"foreign",
"investors",
"in",
"1979",
",",
"toy",
"makers",
"from",
"Hong",
"Kong",
"were",
"among",
"the",
"first",
"to",
"march",
"in",
".",
"Today",
",",
"with",
"about",
"75",
"%",
"of",
"the",
"companies",
"'",
"products",
"being",
"made",
"in",
"China",
",",
"the",
"chairman",
"of",
"the",
"Hong",
"Kong",
"Toys",
"Council",
",",
"Dennis",
"Ting",
",",
"has",
"suggested",
"a",
"new",
"sourcing",
"label",
":",
"``",
"Made",
"in",
"China",
"by",
"Hong",
"Kong",
"Companies",
".",
"''",
"The",
"toy",
"makers",
"were",
"pushed",
"across",
"the",
"border",
"by",
"rising",
"labor",
"and",
"land",
"costs",
"in",
"the",
"British",
"colony",
".",
"But",
"in",
"the",
"wake",
"of",
"the",
"shootings",
"in",
"Beijing",
"on",
"June",
"4",
",",
"the",
"Hong",
"Kong",
"toy",
"industry",
"is",
"worrying",
"about",
"its",
"strong",
"dependence",
"on",
"China",
".",
"Although",
"the",
"manufacturers",
"stress",
"that",
"production",
"has",
"n't",
"been",
"affected",
"by",
"China",
"'s",
"political",
"turmoil",
",",
"they",
"are",
"looking",
"for",
"additional",
"sites",
".",
"The",
"toy",
"makers",
",",
"and",
"their",
"foreign",
"buyers",
",",
"cite",
"uncertainty",
"about",
"China",
"'s",
"economic",
"and",
"political",
"policies",
".",
"``",
"Nobody",
"wants",
"to",
"have",
"all",
"his",
"eggs",
"in",
"one",
"basket",
",",
"''",
"says",
"David",
"Yeh",
",",
"chairman",
"and",
"chief",
"executive",
"officer",
"of",
"International",
"Matchbox",
"Group",
"Ltd",
".",
"Indeed",
",",
"Matchbox",
"and",
"other",
"leading",
"Hong",
"Kong",
"toy",
"makers",
"were",
"setting",
"up",
"factories",
"in",
"Southeast",
"Asia",
",",
"especially",
"in",
"Thailand",
",",
"long",
"before",
"the",
"massacre",
".",
"Their",
"steps",
"were",
"partly",
"prompted",
"by",
"concern",
"over",
"a",
"deterioration",
"of",
"business",
"conditions",
"in",
"southern",
"China",
".",
"By",
"diversifying",
"supply",
"sources",
",",
"the",
"toy",
"makers",
"do",
"n't",
"intend",
"to",
"withdraw",
"from",
"China",
",",
"manufacturers",
"and",
"foreign",
"buyers",
"say",
".",
"It",
"would",
"n't",
"be",
"easy",
"to",
"duplicate",
"quickly",
"the",
"manufacturing",
"capacity",
"built",
"up",
"in",
"southern",
"China",
"during",
"the",
"past",
"decade",
".",
"A",
"supply",
"of",
"cheap",
"labor",
"and",
"the",
"access",
"to",
"Hong",
"Kong",
"'s",
"port",
",",
"airport",
",",
"banks",
"and",
"support",
"industries",
",",
"such",
"as",
"printing",
"companies",
",",
"have",
"made",
"China",
"'s",
"Guangdong",
"province",
"a",
"premier",
"manufacturing",
"site",
".",
"``",
"South",
"China",
"is",
"the",
"most",
"competitive",
"source",
"of",
"toys",
"in",
"the",
"world",
",",
"''",
"says",
"Henry",
"Hu",
",",
"executive",
"director",
"of",
"Wah",
"Shing",
"Toys",
"Consolidated",
"Ltd",
".",
"Hong",
"Kong",
"trade",
"figures",
"illustrate",
"the",
"toy",
"makers",
"'",
"reliance",
"on",
"factories",
"across",
"the",
"border",
".",
"In",
"1988",
",",
"exports",
"of",
"domestically",
"produced",
"toys",
"and",
"games",
"fell",
"19",
"%",
"from",
"1987",
",",
"to",
"HK$",
"10.05",
"billion",
"(",
"US$",
"1.29",
"billion",
")",
".",
"But",
"re-exports",
",",
"mainly",
"from",
"China",
",",
"jumped",
"75",
"%",
",",
"to",
"HK$",
"15.92",
"billion",
".",
"In",
"1989",
"'s",
"first",
"seven",
"months",
",",
"domestic",
"exports",
"fell",
"29",
"%",
",",
"to",
"HK$",
"3.87",
"billion",
",",
"while",
"re-exports",
"rose",
"56",
"%",
",",
"to",
"HK$",
"11.28",
"billion",
".",
"Manufacturers",
"say",
"there",
"is",
"no",
"immediate",
"substitute",
"for",
"southern",
"China",
",",
"where",
"an",
"estimated",
"120,000",
"people",
"are",
"employed",
"by",
"the",
"toy",
"industry",
".",
"``",
"For",
"the",
"next",
"few",
"years",
",",
"like",
"it",
"or",
"not",
",",
"China",
"is",
"going",
"to",
"be",
"the",
"main",
"supplier",
",",
"''",
"says",
"Edmund",
"Young",
",",
"vice",
"president",
"of",
"Perfecta",
"Enterprises",
"Ltd.",
",",
"one",
"of",
"the",
"first",
"big",
"Hong",
"Kong",
"toy",
"makers",
"to",
"move",
"across",
"the",
"border",
".",
"In",
"the",
"meantime",
",",
"as",
"manufacturers",
"and",
"buyers",
"seek",
"new",
"sites",
",",
"they",
"are",
"focusing",
"mainly",
"on",
"Southeast",
"Asia",
".",
"Several",
"big",
"companies",
"have",
"established",
"manufacturing",
"joint",
"ventures",
"in",
"Thailand",
",",
"including",
"Matchbox",
",",
"Wah",
"Shing",
"and",
"Kader",
"Industrial",
"Co.",
",",
"the",
"toy",
"manufacturer",
"headed",
"by",
"Mr.",
"Ting",
".",
"Malaysia",
",",
"the",
"Philippines",
"and",
"Indonesia",
"also",
"are",
"being",
"studied",
".",
"With",
"the",
"European",
"Community",
"set",
"to",
"remove",
"its",
"internal",
"trade",
"barriers",
"in",
"1992",
",",
"several",
"Hong",
"Kong",
"companies",
"are",
"beginning",
"to",
"consider",
"Spain",
",",
"Portugal",
"and",
"Greece",
"as",
"possible",
"manufacturing",
"sites",
".",
"Worries",
"about",
"China",
"came",
"just",
"as",
"Hong",
"Kong",
"'s",
"toy",
"industry",
"was",
"recovering",
"from",
"a",
"1987",
"sales",
"slump",
"and",
"bankruptcy",
"filings",
"by",
"two",
"major",
"U.S.",
"companies",
",",
"Worlds",
"of",
"Wonder",
"Inc.",
"and",
"Coleco",
"Industries",
"Inc",
".",
"Hong",
"Kong",
"manufacturers",
"say",
"large",
"debt",
"writeoffs",
"and",
"other",
"financial",
"problems",
"resulting",
"from",
"the",
"1987",
"difficulties",
"chastened",
"the",
"local",
"industry",
",",
"causing",
"it",
"to",
"tighten",
"credit",
"policies",
"and",
"financial",
"management",
".",
"The",
"industry",
"regards",
"last",
"year",
"and",
"this",
"year",
"as",
"a",
"period",
"of",
"recovery",
"that",
"will",
"lead",
"to",
"improved",
"results",
".",
"Still",
",",
"they",
"long",
"for",
"a",
"``",
"mega-hit",
"''",
"toy",
"to",
"excite",
"retail",
"sales",
"in",
"the",
"U.S.",
",",
"Hong",
"Kong",
"'s",
"biggest",
"market",
"for",
"toys",
"and",
"games",
".",
"The",
"closest",
"thing",
"the",
"colony",
"'s",
"companies",
"have",
"to",
"a",
"U.S.",
"mega-hit",
"this",
"year",
"is",
"the",
"Teenage",
"Mutant",
"Ninja",
"Turtles",
"series",
"of",
"action",
"figures",
"manufactured",
"by",
"Playmates",
"Holdings",
"Ltd",
".",
"Introduced",
"in",
"mid-1988",
",",
"the",
"15-centimeter-tall",
"plastic",
"turtles",
"are",
"based",
"on",
"an",
"American",
"comic",
"book",
"and",
"television",
"series",
".",
"Paul",
"Kwan",
",",
"managing",
"director",
"of",
"Playmates",
",",
"says",
"10",
"million",
"Ninja",
"Turtles",
"have",
"been",
"sold",
",",
"placing",
"the",
"reptilian",
"warriors",
"among",
"the",
"10",
"biggest-selling",
"toys",
"in",
"the",
"U.S.",
".",
"Should",
"sales",
"continue",
"to",
"be",
"strong",
"through",
"the",
"Christmas",
"season",
",",
"which",
"accounts",
"for",
"about",
"60",
"%",
"of",
"U.S.",
"retail",
"toy",
"sales",
",",
"Mr.",
"Kwan",
"said",
"the",
"Ninja",
"Turtles",
"could",
"make",
"1989",
"a",
"record",
"sales",
"year",
"for",
"Playmates",
".",
"Other",
"Hong",
"Kong",
"manufacturers",
"expect",
"their",
"results",
"to",
"improve",
"only",
"slightly",
"this",
"year",
"from",
"1988",
".",
"Besides",
"the",
"lack",
"of",
"a",
"fast-selling",
"product",
",",
"they",
"cite",
"the",
"continued",
"dominance",
"of",
"the",
"U.S.",
"market",
"by",
"Nintendo",
"Entertainment",
"System",
",",
"an",
"expensive",
"video",
"game",
"made",
"by",
"Nintendo",
"Co.",
"of",
"Japan",
".",
"Nintendo",
"buyers",
"have",
"little",
"money",
"left",
"to",
"spend",
"on",
"other",
"products",
".",
"Many",
"of",
"the",
"toy",
"makers",
"'",
"problems",
"started",
"well",
"before",
"June",
"4",
"as",
"a",
"result",
"of",
"overstrained",
"infrastructure",
"and",
"Beijing",
"'s",
"austerity",
"programs",
"launched",
"late",
"last",
"year",
".",
"Toy",
"makers",
"complain",
"that",
"electricity",
"in",
"Guangdong",
"has",
"been",
"provided",
"only",
"three",
"days",
"a",
"week",
"in",
"recent",
"months",
",",
"down",
"from",
"five",
"days",
"a",
"week",
",",
"as",
"the",
"province",
"'s",
"rapid",
"industrialization",
"has",
"outstripped",
"its",
"generating",
"capacity",
".",
"Manufacturers",
"are",
"upgrading",
"standby",
"power",
"plants",
".",
"Bank",
"credit",
"for",
"China",
"investments",
"all",
"but",
"dried",
"up",
"following",
"June",
"4",
".",
"Also",
",",
"concern",
"exists",
"that",
"the",
"harder-line",
"Beijing",
"leadership",
"will",
"tighten",
"its",
"control",
"of",
"Guangdong",
",",
"which",
"has",
"been",
"the",
"main",
"laboratory",
"for",
"the",
"open-door",
"policy",
"and",
"economic",
"reforms",
".",
"But",
",",
"toy",
"manufacturers",
"and",
"other",
"industrialists",
"say",
"Beijing",
"will",
"be",
"restrained",
"from",
"tightening",
"controls",
"on",
"export-oriented",
"southern",
"China",
".",
"They",
"say",
"China",
"'s",
"trade",
"deficit",
"is",
"widening",
"and",
"the",
"country",
"is",
"too",
"short",
"of",
"foreign",
"exchange",
"for",
"it",
"to",
"hamper",
"production",
"in",
"Guangdong",
".",
"``",
"The",
"Chinese",
"leaders",
"have",
"to",
"decide",
"whether",
"they",
"want",
"control",
"or",
"whether",
"the",
"want",
"exports",
",",
"''",
"says",
"Mr.",
"Kwan",
"of",
"Playmates",
"."
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[
"A",
"labor-management",
"group",
"is",
"preparing",
"a",
"revised",
"buy-out",
"bid",
"for",
"United",
"Airlines",
"parent",
"UAL",
"Corp.",
"that",
"would",
"transfer",
"majority",
"ownership",
"to",
"employees",
"while",
"leaving",
"some",
"stock",
"in",
"public",
"hands",
",",
"according",
"to",
"people",
"familiar",
"with",
"the",
"group",
".",
"The",
"group",
"has",
"been",
"discussing",
"a",
"proposal",
"valued",
"in",
"a",
"range",
"of",
"$",
"225",
"to",
"$",
"240",
"a",
"share",
",",
"or",
"$",
"5.09",
"billion",
"to",
"$",
"5.42",
"billion",
".",
"But",
"to",
"avoid",
"the",
"risk",
"of",
"rejection",
",",
"the",
"group",
"does",
"n't",
"plan",
"to",
"submit",
"the",
"plan",
"formally",
"at",
"a",
"UAL",
"board",
"meeting",
"today",
".",
"Instead",
",",
"the",
"group",
"is",
"raising",
"the",
"proposal",
"informally",
"to",
"try",
"to",
"test",
"the",
"board",
"'s",
"reaction",
".",
"People",
"familiar",
"with",
"the",
"company",
"say",
"the",
"board",
"is",
"n't",
"likely",
"to",
"give",
"quick",
"approval",
"to",
"any",
"offer",
"substantially",
"below",
"the",
"$",
"300-a-share",
",",
"$",
"6.79",
"billion",
"buy-out",
"bid",
"that",
"collapsed",
"last",
"week",
"after",
"banks",
"would",
"n't",
"raise",
"needed",
"loans",
"and",
"after",
"a",
"key",
"partner",
",",
"British",
"Airways",
"PLC",
",",
"dropped",
"out",
".",
"In",
"composite",
"trading",
"Friday",
"on",
"the",
"New",
"York",
"Stock",
"Exchange",
",",
"UAL",
"closed",
"at",
"$",
"168.50",
"a",
"share",
",",
"down",
"$",
"21.625",
".",
"But",
"the",
"pilots",
"union",
",",
"which",
"has",
"been",
"pushing",
"for",
"a",
"takeover",
"since",
"1987",
",",
"appears",
"to",
"be",
"pressing",
"ahead",
"with",
"the",
"revised",
"bid",
"to",
"avoid",
"further",
"loss",
"of",
"momentum",
"even",
"though",
"it",
"has",
"n't",
"found",
"a",
"partner",
"to",
"replace",
"British",
"Air",
".",
"Although",
"the",
"bidding",
"group",
"has",
"n't",
"had",
"time",
"to",
"develop",
"its",
"latest",
"idea",
"fully",
"or",
"to",
"discuss",
"it",
"with",
"banks",
",",
"it",
"believes",
"bank",
"financing",
"could",
"be",
"obtained",
".",
"After",
"the",
"collapse",
"of",
"the",
"last",
"effort",
",",
"the",
"group",
"does",
"n't",
"plan",
"to",
"make",
"any",
"formal",
"proposal",
"without",
"binding",
"commitments",
"from",
"banks",
"covering",
"the",
"entire",
"amount",
"to",
"be",
"borrowed",
".",
"Under",
"the",
"type",
"of",
"transaction",
"being",
"discussed",
",",
"the",
"pilot-management",
"group",
"would",
"borrow",
"several",
"billion",
"dollars",
"from",
"banks",
"that",
"could",
"then",
"be",
"used",
"to",
"finance",
"a",
"cash",
"payment",
"to",
"current",
"holders",
".",
"Those",
"current",
"holders",
"would",
"also",
"receive",
"minority",
"interests",
"in",
"the",
"new",
"company",
".",
"For",
"example",
",",
"the",
"group",
"could",
"offer",
"$",
"200",
"a",
"share",
"in",
"cash",
"plus",
"stock",
"valued",
"at",
"$",
"30",
"a",
"share",
".",
"UAL",
"currently",
"has",
"22.6",
"million",
"shares",
",",
"fully",
"diluted",
".",
"The",
"new",
"structure",
"would",
"be",
"similar",
"to",
"a",
"recapitalization",
"in",
"which",
"holders",
"get",
"a",
"special",
"dividend",
"yet",
"retain",
"a",
"controlling",
"ownership",
"interest",
".",
"The",
"difference",
"is",
"that",
"current",
"holders",
"would",
"n't",
"retain",
"majority",
"ownership",
"or",
"control",
".",
"The",
"failed",
"takeover",
"would",
"have",
"given",
"UAL",
"employees",
"75",
"%",
"voting",
"control",
"of",
"the",
"nation",
"'s",
"second-largest",
"airline",
",",
"with",
"management",
"getting",
"10",
"%",
"control",
"and",
"British",
"Air",
"15",
"%",
".",
"It",
"was",
"n't",
"clear",
"how",
"the",
"ownership",
"would",
"stack",
"up",
"under",
"the",
"new",
"plan",
",",
"but",
"employees",
"would",
"keep",
"more",
"than",
"50",
"%",
".",
"Management",
"'s",
"total",
"could",
"be",
"reduced",
",",
"and",
"the",
"public",
"could",
"get",
"more",
"than",
"the",
"15",
"%",
"control",
"that",
"had",
"been",
"earmarked",
"for",
"British",
"Air",
".",
"One",
"option",
"the",
"board",
"is",
"likely",
"to",
"consider",
"today",
"is",
"some",
"sort",
"of",
"cooling-off",
"period",
".",
"Although",
"the",
"pilots",
"are",
"expected",
"to",
"continue",
"to",
"pursue",
"the",
"bid",
",",
"UAL",
"Chairman",
"Stephen",
"Wolf",
"may",
"be",
"asked",
"to",
"withdraw",
"from",
"the",
"buy-out",
"effort",
",",
"at",
"least",
"temporarily",
",",
"and",
"to",
"return",
"to",
"running",
"the",
"company",
"full",
"time",
".",
"The",
"board",
"could",
"eventually",
"come",
"under",
"some",
"pressure",
"to",
"sell",
"the",
"company",
"because",
"its",
"members",
"can",
"be",
"ousted",
"by",
"a",
"majority",
"shareholder",
"vote",
",",
"particularly",
"since",
"one-third",
"of",
"UAL",
"stock",
"is",
"held",
"by",
"takeover",
"stock",
"speculators",
"who",
"favor",
"a",
"sale",
".",
"The",
"labor-management",
"buy-out",
"group",
"plans",
"to",
"keep",
"its",
"offer",
"on",
"the",
"table",
"in",
"an",
"apparent",
"attempt",
"to",
"maintain",
"its",
"bargaining",
"position",
"with",
"the",
"board",
".",
"However",
",",
"the",
"only",
"outsider",
"who",
"has",
"emerged",
"to",
"lead",
"such",
"a",
"shareholder",
"vote",
",",
"Los",
"Angeles",
"investor",
"Marvin",
"Davis",
",",
"who",
"triggered",
"the",
"buy-out",
"with",
"a",
"$",
"5.4",
"billion",
"bid",
"in",
"early",
"August",
",",
"is",
"hanging",
"back",
"--",
"apparently",
"to",
"avoid",
"being",
"blamed",
"for",
"contributing",
"to",
"the",
"deal",
"'s",
"collapse",
".",
"Three",
"top",
"advisers",
"to",
"Mr.",
"Davis",
"visited",
"New",
"York",
"late",
"last",
"week",
",",
"at",
"least",
"in",
"part",
"to",
"confer",
"with",
"executives",
"at",
"Citicorp",
".",
"Mr.",
"Davis",
"had",
"paid",
"$",
"6",
"million",
"for",
"Citicorp",
"'s",
"backing",
"of",
"his",
"last",
"bid",
".",
"But",
"Citicorp",
"has",
"lost",
"some",
"credibility",
"because",
"it",
"also",
"led",
"the",
"unsuccessful",
"effort",
"to",
"gain",
"bank",
"loans",
"for",
"the",
"labor-management",
"group",
".",
"On",
"Friday",
",",
"British",
"Air",
"issued",
"a",
"statement",
"saying",
"it",
"``",
"does",
"not",
"intend",
"to",
"participate",
"in",
"any",
"new",
"deal",
"for",
"the",
"acquisition",
"of",
"UAL",
"in",
"the",
"foreseeable",
"future",
".",
"''",
"However",
",",
"several",
"people",
"said",
"that",
"British",
"Air",
"might",
"yet",
"rejoin",
"the",
"bidding",
"group",
"and",
"that",
"the",
"carrier",
"made",
"the",
"statement",
"to",
"answer",
"questions",
"from",
"British",
"regulators",
"about",
"how",
"it",
"plans",
"to",
"use",
"proceeds",
"of",
"a",
"securities",
"offering",
"previously",
"earmarked",
"for",
"the",
"UAL",
"buy-out",
".",
"Also",
"late",
"last",
"week",
",",
"UAL",
"flight",
"attendants",
"agreed",
"to",
"participate",
"with",
"the",
"pilots",
"in",
"crafting",
"a",
"revised",
"offer",
".",
"But",
"the",
"machinists",
"union",
",",
"whose",
"opposition",
"helped",
"scuttle",
"the",
"first",
"buy-out",
"bid",
",",
"is",
"likely",
"to",
"favor",
"a",
"recapitalization",
"with",
"a",
"friendly",
"third-party",
"investor",
".",
"One",
"advantage",
"the",
"buy-out",
"group",
"intends",
"to",
"press",
"with",
"the",
"board",
"is",
"that",
"pilots",
"have",
"agreed",
"to",
"make",
"$",
"200",
"million",
"in",
"annual",
"cost",
"concessions",
"to",
"help",
"finance",
"a",
"bid",
".",
"Speculation",
"has",
"also",
"arisen",
"that",
"the",
"UAL",
"executive",
"most",
"closely",
"identified",
"with",
"the",
"failure",
"to",
"gain",
"bank",
"financing",
",",
"chief",
"financial",
"officer",
"John",
"Pope",
",",
"may",
"come",
"under",
"pressure",
"to",
"resign",
".",
"However",
",",
"people",
"familiar",
"with",
"the",
"buy-out",
"group",
"said",
"Mr.",
"Pope",
"'s",
"departure",
"would",
"weaken",
"the",
"airline",
"'s",
"management",
"at",
"a",
"critical",
"time",
".",
"Despite",
"the",
"buy-out",
"group",
"'s",
"failure",
"to",
"obtain",
"financing",
",",
"UAL",
"remains",
"obligated",
"to",
"pay",
"$",
"26.7",
"million",
"in",
"investment",
"banking",
"and",
"legal",
"fees",
"to",
"the",
"group",
"'s",
"advisers",
",",
"Lazard",
"Freres",
"&",
"Co.",
",",
"Salomon",
"Brothers",
"Inc.",
",",
"and",
"Paul",
"Weiss",
"Rifkind",
"Wharton",
"&",
"Garrison",
"."
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[
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".",
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".",
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"Barney",
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"Upham",
"&",
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".",
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".",
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".",
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[
"It",
"was",
"the",
"kind",
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"snubbing",
"rarely",
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",",
"let",
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",",
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",",
"Ariz",
".",
"At",
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"Banking",
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"'s",
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"last",
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",",
"William",
"Seidman",
",",
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"Trust",
"Corp.",
",",
"the",
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"agency",
"created",
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"thrifts",
",",
"said",
"the",
"agency",
"is",
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"made",
"illegal",
"political",
"contributions",
".",
"Mr.",
"Keating",
"arranged",
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"$",
"1",
"million",
"in",
"donations",
"to",
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"and",
"his",
"various",
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"causes",
",",
"and",
"hundreds",
"of",
"thousands",
"more",
"to",
"other",
"lawmakers",
".",
"Future",
"witnesses",
"include",
"a",
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"regulator",
"who",
"has",
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"the",
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"subvert",
"''",
"the",
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"by",
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".",
"Unlike",
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",",
"Chairman",
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"he",
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".",
"``",
"When",
"you",
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"where",
"a",
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"body",
"is",
"trying",
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",",
"then",
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"'s",
"a",
"no-no",
"in",
"my",
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",",
"''",
"the",
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"says",
".",
"And",
"he",
"has",
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"himself",
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"Lincoln",
"story",
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".",
"``",
"Unless",
"the",
"questions",
"are",
"answered",
",",
"I",
"will",
"keep",
"on",
"going",
".",
"''",
"Lawmakers",
"often",
"are",
"reluctant",
"to",
"embarrass",
"colleagues",
",",
"even",
"those",
"of",
"opposing",
"political",
"parties",
".",
"In",
"the",
"recent",
"Housing",
"and",
"Urban",
"Development",
"Department",
"scandal",
",",
"for",
"example",
",",
"Rep.",
"Thomas",
"Lantos",
",",
"the",
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"Democrat",
"who",
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",",
"tiptoed",
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"embarrassing",
"disclosures",
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"HUD",
"grants",
"secured",
"by",
"Sen.",
"Alfonse",
"D'Amato",
",",
"a",
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"York",
"Republican",
".",
"But",
"Chairman",
"Gonzalez",
"is",
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".",
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"comes",
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",",
"a",
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".",
"Mr.",
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"is",
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"a",
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"ethical",
"standards",
"who",
"refuses",
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"and",
"who",
"believes",
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"official",
"business",
"in",
"the",
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".",
"Early",
"in",
"his",
"political",
"career",
",",
"as",
"a",
"city",
"councilman",
"in",
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"Antonio",
",",
"he",
"walked",
"out",
"of",
"a",
"meeting",
"when",
"political",
"supporters",
"asked",
"that",
"the",
"police",
"chief",
"be",
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",",
"denouncing",
"the",
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"affair",
"publicly",
"as",
"a",
"``",
"bat-roost",
"meeting",
".",
"''",
"The",
"immediate",
"target",
"of",
"Rep.",
"Gonzalez",
"'s",
"inquiry",
"is",
"Danny",
"Wall",
",",
"chairman",
"of",
"the",
"Office",
"of",
"Thrift",
"Supervision",
".",
"As",
"the",
"principal",
"regulator",
"of",
"the",
"thrift",
"industry",
",",
"Mr.",
"Wall",
"delayed",
"seizing",
"Lincoln",
"S&L",
"for",
"more",
"than",
"two",
"years",
"after",
"his",
"staff",
"told",
"him",
"that",
"the",
"California",
"thrift",
"was",
"insolvent",
"and",
"that",
"potential",
"losses",
"to",
"taxpayers",
"were",
"growing",
"rapidly",
".",
"Rep.",
"Gonzalez",
"seems",
"primed",
"to",
"lash",
"out",
"at",
"Mr.",
"Wall",
"when",
"hearings",
"resume",
"Thursday",
"with",
"testimony",
"by",
"two",
"federal",
"regulators",
"from",
"San",
"Francisco",
",",
"William",
"Black",
"and",
"Mike",
"Patriarca",
".",
"Mr.",
"Wall",
"relieved",
"them",
"of",
"responsibility",
"for",
"supervising",
"Lincoln",
"in",
"1988",
".",
"Mr.",
"Gonzalez",
"expressed",
"concern",
"over",
"a",
"report",
"that",
"the",
"two",
"had",
"been",
"summoned",
"to",
"Washington",
"by",
"Mr.",
"Wall",
"last",
"week",
"to",
"discuss",
"their",
"testimony",
"in",
"advance",
".",
"``",
"I",
"think",
"he",
"is",
"trying",
"to",
"improperly",
"influence",
"a",
"witness",
",",
"and",
"by",
"God",
"I",
"'m",
"not",
"going",
"to",
"tolerate",
"it",
",",
"''",
"he",
"says",
".",
"Mr.",
"Wall",
",",
"however",
",",
"is",
"a",
"self-proclaimed",
"``",
"child",
"of",
"the",
"Senate",
"''",
"and",
"former",
"staff",
"director",
"of",
"its",
"Banking",
"Committee",
".",
"An",
"inquiry",
"into",
"his",
"handling",
"of",
"Lincoln",
"S&L",
"inevitably",
"will",
"drag",
"in",
"Sen.",
"Cranston",
"and",
"the",
"four",
"others",
",",
"Sens.",
"Dennis",
"DeConcini",
"(",
"D.",
",",
"Ariz.",
")",
",",
"John",
"McCain",
"(",
"R.",
",",
"Ariz.",
")",
",",
"John",
"Glenn",
"(",
"D.",
",",
"Ohio",
")",
"and",
"Donald",
"Riegle",
"(",
"D.",
",",
"Mich",
".",
")",
".",
"They",
"all",
"attended",
"a",
"meeting",
"in",
"April",
"1987",
"questioning",
"why",
"a",
"federal",
"audit",
"of",
"Lincoln",
"S&L",
"had",
"dragged",
"on",
"for",
"two",
"years",
".",
"``",
"I",
"'m",
"certain",
"that",
"in",
"the",
"course",
"of",
"the",
"hearings",
"the",
"names",
"-LCB-",
"of",
"the",
"senators",
"-RCB-",
"will",
"be",
"brought",
"out",
",",
"''",
"Mr.",
"Gonzalez",
"says",
".",
"This",
"is",
"raising",
"eyebrows",
".",
"``",
"When",
"I",
"first",
"got",
"a",
"glimpse",
"at",
"the",
"witness",
"list",
",",
"I",
"could",
"n't",
"believe",
"that",
"they",
"were",
"going",
"to",
"go",
"ahead",
"and",
"do",
"this",
",",
"''",
"says",
"Michael",
"Waldman",
",",
"director",
"of",
"Congress",
"Watch",
",",
"a",
"consumer",
"group",
".",
"``",
"There",
"are",
"some",
"witnesses",
"who",
"will",
"be",
"forced",
"to",
"testify",
"about",
"their",
"meetings",
"with",
"senators",
".",
"''",
"And",
"a",
"Democratic",
"aide",
"to",
"a",
"Banking",
"Committee",
"member",
"remarks",
",",
"``",
"I",
"too",
"am",
"astounded",
"by",
"it",
",",
"because",
"Gonzalez",
"has",
"certainly",
"placed",
"a",
"lot",
"of",
"Democratic",
"senators",
"in",
"a",
"very",
"bad",
"position",
".",
"''",
"All",
"the",
"senators",
"say",
"they",
"merely",
"were",
"trying",
"to",
"ensure",
"fairness",
"for",
"a",
"constituent",
".",
"Mr.",
"Keating",
"lives",
"in",
"Phoenix",
",",
"and",
"the",
"California",
"thrift",
"'s",
"parent",
"is",
"an",
"Ohio-chartered",
"corporation",
"with",
"holdings",
"in",
"Michigan",
".",
"Chairman",
"Gonzalez",
"expresses",
"sympathy",
"for",
"Sen.",
"Riegle",
",",
"his",
"counterpart",
"as",
"chairman",
"of",
"the",
"Senate",
"Banking",
"Committee",
".",
"``",
"He",
"'s",
"wise",
",",
"he",
"'s",
"good",
"and",
"I",
"know",
"he",
"'s",
"an",
"honest",
"man",
",",
"''",
"the",
"Texan",
"says",
".",
"But",
"at",
"the",
"same",
"time",
",",
"Mr.",
"Gonzalez",
"has",
"n't",
"forgotten",
"a",
"confrontation",
"over",
"Mr.",
"Wall",
"during",
"House-Senate",
"negotiations",
"over",
"S&L",
"bailout",
"legislation",
"during",
"the",
"summer",
".",
"The",
"Senate",
"negotiators",
"included",
"Sens.",
"Cranston",
"and",
"Riegle",
"and",
"Mr.",
"Wall",
"'s",
"principal",
"sponsor",
",",
"Republican",
"Sen.",
"Jake",
"Garn",
"of",
"Utah",
".",
"They",
"were",
"willing",
"to",
"trade",
"important",
"provisions",
"in",
"the",
"bailout",
"legislation",
"to",
"preserve",
"Mr.",
"Wall",
"'s",
"job",
"and",
"to",
"avoid",
"a",
"reconfirmation",
"hearing",
"in",
"which",
"he",
"would",
"be",
"called",
"upon",
"to",
"testify",
"about",
"Lincoln",
"S&L",
".",
"Most",
"importantly",
",",
"the",
"Senate",
"traded",
"away",
"the",
"Bush",
"administration",
"'s",
"controversial",
"plan",
"to",
"finance",
"the",
"bailout",
",",
"which",
"was",
"partly",
"reinstated",
"later",
".",
"At",
"the",
"time",
",",
"Mr.",
"Gonzalez",
"said",
"several",
"senators",
"told",
"him",
"that",
"they",
"``",
"could",
"get",
"some",
"roadblocks",
"out",
"of",
"the",
"way",
"if",
"there",
"could",
"be",
"some",
"understanding",
"on",
"Garn",
"'s",
"insistence",
"on",
"Wall",
".",
"''",
"Now",
"Mr.",
"Gonzalez",
"is",
"holding",
"the",
"equivalent",
"of",
"reconfirmation",
"hearings",
"anyway",
",",
"under",
"the",
"guise",
"of",
"the",
"Lincoln",
"investigation",
".",
"``",
"In",
"a",
"way",
",",
"that",
"'s",
"what",
"this",
"is",
",",
"''",
"Mr.",
"Gonzalez",
"concedes",
".",
"Even",
"some",
"House",
"Banking",
"Committee",
"members",
"could",
"suffer",
"from",
"the",
"fallout",
".",
"Mr.",
"Keating",
"raised",
"$",
"20,000",
"for",
"Rep.",
"Doug",
"Barnard",
"'s",
"1986",
"re-election",
"campaign",
"while",
"the",
"Georgia",
"Democrat",
"was",
"taking",
"his",
"side",
"against",
"regulators",
"who",
"wanted",
"to",
"curb",
"risky",
"investments",
"and",
"wholesale",
"deposit",
"brokering",
".",
"He",
"recently",
"voted",
"``",
"present",
"''",
"when",
"the",
"committee",
"authorized",
"a",
"subpoena",
"to",
"compel",
"Mr.",
"Keating",
"to",
"testify",
",",
"then",
"changed",
"his",
"vote",
"to",
"yes",
".",
"But",
"the",
"chairman",
"'s",
"supporters",
"have",
"the",
"upper",
"hand",
"as",
"federal",
"regulators",
"press",
"a",
"$",
"1.1",
"billion",
"fraud",
"suit",
"against",
"Mr.",
"Keating",
"and",
"others",
".",
"Rep.",
"Jim",
"Leach",
"(",
"R.",
",",
"Iowa",
")",
"says",
"the",
"Lincoln",
"S&L",
"affair",
"is",
"``",
"the",
"biggest",
"bank",
"heist",
"in",
"history",
",",
"''",
"and",
"adds",
":",
"``",
"The",
"great",
"question",
"that",
"remains",
"to",
"be",
"resolved",
"is",
"whether",
"we",
"have",
"a",
"congressional",
"Watergate",
"in",
"the",
"making",
".",
"''",
"A",
"witness",
"set",
"to",
"testify",
"on",
"Thursday",
"was",
"quoted",
"in",
"a",
"news",
"report",
"over",
"the",
"weekend",
"as",
"saying",
"Lincoln",
"``",
"laundered",
"''",
"campaign",
"contributions",
"illegally",
".",
"But",
"the",
"witness",
",",
"William",
"Crawford",
",",
"California",
"'s",
"chief",
"state",
"thrift",
"regulator",
",",
"denies",
"saying",
"that",
".",
"``",
"I",
"do",
"n't",
"know",
"whether",
"it",
"was",
"done",
"properly",
"or",
"not",
",",
"because",
"I",
"'m",
"not",
"a",
"lawyer",
",",
"''",
"he",
"said",
"in",
"a",
"telephone",
"interview",
"yesterday",
".",
"But",
"he",
"said",
"he",
"is",
"prepared",
"to",
"testify",
"that",
"executives",
"of",
"Lincoln",
"and",
"its",
"parent",
"corporation",
"got",
"unusually",
"high",
"salaries",
"and",
"frequent",
"calls",
"directing",
"them",
"to",
"make",
"specific",
"contributions",
".",
"The",
"committee",
"also",
"has",
"summoned",
"Mr.",
"Wall",
"'s",
"predecessor",
",",
"Edwin",
"Gray",
".",
"He",
"has",
"characterized",
"the",
"five",
"senators",
"'",
"roles",
"as",
"``",
"tantamount",
"to",
"an",
"attempt",
"to",
"subvert",
"the",
"...",
"regulatory",
"process",
",",
"''",
"and",
"he",
"is",
"n't",
"expected",
"to",
"back",
"down",
"even",
"though",
"the",
"five",
"senators",
"have",
"disputed",
"his",
"account",
"of",
"a",
"1987",
"meeting",
".",
"So",
"the",
"senators",
"must",
"brace",
"themselves",
".",
"Sen.",
"Cranston",
",",
"as",
"he",
"returned",
"to",
"the",
"capital",
"last",
"week",
"from",
"a",
"one-day",
"trip",
"to",
"inspect",
"earthquake",
"damage",
"in",
"San",
"Francisco",
",",
"sighed",
"to",
"an",
"aide",
":",
"``",
"Well",
",",
"back",
"to",
"Keatingland",
"."
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[
"Couple",
"Counseling",
"Grows",
"to",
"Defuse",
"Stress",
"MORE",
"EXECUTIVES",
"and",
"their",
"spouses",
"are",
"seeking",
"counseling",
"as",
"work",
"and",
"family",
"pressures",
"mount",
".",
"Some",
"employers",
"initiate",
"referrals",
",",
"especially",
"if",
"work",
"problems",
"threaten",
"a",
"top",
"manager",
"'s",
"job",
".",
"Many",
"couples",
"``",
"are",
"like",
"ships",
"passing",
"in",
"the",
"night",
",",
"''",
"a",
"communications",
"gulf",
"that",
"sparks",
"problems",
"on",
"the",
"job",
"and",
"at",
"home",
",",
"says",
"psychologist",
"Harry",
"Levinson",
".",
"His",
"Levinson",
"Institute",
"in",
"Belmont",
",",
"Mass.",
",",
"has",
"seen",
"in",
"recent",
"years",
"a",
"doubling",
"in",
"the",
"number",
"of",
"executives",
"and",
"spouses",
"at",
"its",
"weeklong",
"counseling",
"program",
".",
"Employers",
"foot",
"the",
"bill",
",",
"he",
"says",
",",
"figuring",
"what",
"'s",
"good",
"for",
"the",
"couple",
"is",
"good",
"for",
"the",
"company",
".",
"One",
"East",
"Coast",
"manufacturing",
"executive",
",",
"faced",
"with",
"a",
"job",
"transfer",
"his",
"wife",
"resented",
",",
"found",
"that",
"counseling",
"helped",
"them",
"both",
"come",
"to",
"grips",
"with",
"the",
"move",
".",
"And",
"the",
"vice",
"president",
"of",
"a",
"large",
"Midwestern",
"company",
"realized",
"that",
"an",
"abrasive",
"temperament",
"threatened",
"his",
"career",
"when",
"his",
"wife",
"confided",
"that",
"similar",
"behavior",
"at",
"home",
"harmed",
"their",
"marriage",
".",
"More",
"dual-career",
"couples",
"also",
"are",
"getting",
"help",
",",
"with",
"men",
"increasingly",
"bringing",
"their",
"working",
"wives",
"for",
"joint",
"counseling",
".",
"``",
"The",
"level",
"of",
"stress",
"for",
"a",
"woman",
"is",
"often",
"so",
"high",
",",
"it",
"'s",
"the",
"husband",
"who",
"says",
",",
"`",
"I",
"'m",
"worried",
"about",
"her",
",",
"'",
"''",
"says",
"psychologist",
"Marjorie",
"Hansen",
"Shaevitz",
".",
"Her",
"Institute",
"for",
"Family",
"and",
"Work",
"Relationships",
"in",
"La",
"Jolla",
",",
"Calif.",
",",
"has",
"noted",
"a",
"doubling",
"in",
"the",
"number",
"of",
"couples",
"seeking",
"help",
"the",
"past",
"two",
"years",
".",
"``",
"No",
"matter",
"how",
"competent",
"and",
"smart",
"you",
"both",
"are",
",",
"the",
"relationship",
"almost",
"certainly",
"will",
"erode",
"if",
"you",
"do",
"n't",
"have",
"time",
"to",
"talk",
",",
"to",
"have",
"fun",
"and",
"to",
"be",
"sexual",
",",
"''",
"says",
"Ms.",
"Shaevitz",
".",
"She",
"urges",
"client",
"couples",
"to",
"begin",
"a",
"``",
"detoxification",
"''",
"period",
",",
"purging",
"social",
"and",
"other",
"nonproductive",
"activities",
"and",
"setting",
"time",
"apart",
"for",
"themselves",
".",
"``",
"Putting",
"those",
"times",
"on",
"the",
"calendar",
",",
"''",
"she",
"says",
",",
"``",
"is",
"as",
"important",
"as",
"remembering",
"business",
"appointments",
".",
"''",
"Power",
"of",
"Suggestion",
"Stronger",
"in",
"Japan",
"HERE",
"'S",
"ONE",
"more",
"explanation",
"for",
"why",
"Japan",
"is",
"a",
"tough",
"industrial",
"competitor",
":",
"Two",
"of",
"three",
"Japanese",
"employees",
"submit",
"suggestions",
"to",
"save",
"money",
",",
"increase",
"efficiency",
"and",
"boost",
"morale",
",",
"while",
"only",
"8",
"%",
"of",
"American",
"workers",
"do",
".",
"And",
"the",
"Japanese",
"make",
"far",
"more",
"suggestions",
"--",
"2,472",
"per",
"100",
"eligible",
"employees",
"vs.",
"only",
"13",
"per",
"100",
"employees",
"in",
"the",
"Data",
"for",
"1987",
"from",
"the",
"National",
"Association",
"of",
"Suggestion",
"Systems",
"and",
"the",
"Japan",
"Human",
"Relations",
"Association",
"also",
"indicate",
"that",
"Japanese",
"employers",
"adopt",
"four",
"of",
"five",
"suggestions",
",",
"while",
"their",
"U.S.",
"counterparts",
"accept",
"just",
"one",
"in",
"four",
".",
"In",
"Japan",
",",
"small",
"suggestions",
"are",
"encouraged",
".",
"Each",
"new",
"employee",
"is",
"expected",
"to",
"submit",
"four",
"daily",
"in",
"the",
"first",
"few",
"months",
"on",
"the",
"job",
".",
"U.S.",
"companies",
"tend",
"to",
"favor",
"suggestions",
"``",
"that",
"go",
"for",
"the",
"home",
"runs",
",",
"''",
"says",
"Gary",
"Floss",
",",
"vice",
"president",
"of",
"corporate",
"quality",
"at",
"Control",
"Data",
"Corp",
".",
"That",
"helps",
"explain",
"why",
"American",
"employers",
"grant",
"an",
"average",
"award",
"of",
"$",
"604.72",
"per",
"suggestion",
",",
"while",
"Japan",
"'s",
"payment",
"is",
"$",
"3.23",
".",
"Still",
",",
"suggestions",
"'",
"net",
"savings",
"per",
"100",
"employees",
"is",
"$",
"274,475",
"in",
"Japan",
"vs.",
"$",
"24,891",
"in",
"the",
"U.S.",
".",
"U.S.",
"companies",
"developing",
"management",
"teams",
"are",
"wrestling",
"with",
"how",
"to",
"handle",
"individual",
"suggestion",
"systems",
".",
"Control",
"Data",
",",
"for",
"one",
",",
"plays",
"down",
"its",
"employee",
"suggestion",
"program",
"because",
"it",
"favors",
"the",
"team-management",
"focus",
".",
"Merger",
"Fallout",
":",
"Beware",
"Employee",
"Dishonesty",
"CORPORATE",
"security",
"directors",
"increasingly",
"worry",
"that",
"merger",
"mania",
"spawns",
"a",
"rise",
"in",
"employee",
"dishonesty",
".",
"A",
"Security",
"magazine",
"survey",
"places",
"the",
"effect",
"of",
"takeovers",
"and",
"buy-outs",
"among",
"the",
"industry",
"'s",
"10",
"biggest",
"challenges",
".",
"``",
"If",
"it",
"causes",
"management",
"to",
"take",
"their",
"eye",
"off",
"the",
"ball",
",",
"inventory",
"shrinkage",
"is",
"going",
"to",
"be",
"affected",
",",
"''",
"says",
"Lewis",
"Shealy",
",",
"vice",
"president",
"for",
"loss",
"prevention",
"at",
"Marshall",
"Field",
"'s",
",",
"the",
"department",
"store",
"chain",
".",
"A",
"separate",
"study",
"of",
"the",
"extent",
"of",
"employee",
"misconduct",
"linked",
"general",
"job",
"satisfaction",
"to",
"property",
"loss",
".",
"Co-author",
"Richard",
"Hollinger",
"cites",
"what",
"happened",
"at",
"one",
"family-owned",
"company",
"absorbed",
"by",
"a",
"foreign",
"giant",
".",
"Pilferage",
"climbed",
"dramatically",
"as",
"many",
"angry",
"employees",
"``",
"felt",
"abandoned",
"by",
"the",
"former",
"owners",
",",
"''",
"says",
"the",
"University",
"of",
"Florida",
"sociologist",
".",
"But",
"top",
"management",
"should",
"watch",
"for",
"other",
"tell-tale",
"signs",
"of",
"employee",
"misdeeds",
",",
"like",
"expense-account",
"fudging",
"and",
"phone",
"misuse",
".",
"Security",
"consultant",
"Dennis",
"Dalton",
"of",
"Ventura",
",",
"Calif.",
",",
"thinks",
"mergers",
"often",
"trigger",
"longer",
"lunch",
"hours",
"and",
"increased",
"absenteeism",
",",
"conduct",
"which",
"can",
"sap",
"the",
"bottom",
"line",
"more",
"than",
"thefts",
".",
"New",
"management",
"can",
"take",
"several",
"steps",
"to",
"reduce",
"dishonesty",
".",
"Most",
"important",
",",
"experts",
"say",
",",
"is",
"to",
"show",
"that",
"a",
"company",
"'s",
"ethical",
"tone",
"is",
"set",
"at",
"the",
"top",
".",
"Mr.",
"Dalton",
"also",
"recommends",
"that",
"the",
"chief",
"executive",
"establish",
"a",
"rumor",
"control",
"center",
"and",
"move",
"swiftly",
"to",
"bolster",
"morale",
".",
"Consultant",
"John",
"Keller",
"of",
"Southlake",
",",
"Texas",
",",
"urges",
"that",
"top",
"management",
"adopt",
"a",
"``",
"tough",
"hands-on",
"approach",
"''",
"with",
"very",
"tight",
"controls",
"and",
"monitoring",
".",
"And",
"security",
"authority",
"Robert",
"L.",
"Duston",
"favors",
"disciplining",
"all",
"employees",
"who",
"cheat",
".",
"Firms",
"Walk",
"Fine",
"Line",
"In",
"Distributing",
"Profits",
"ARE",
"CORPORATE",
"profits",
"distributed",
"fairly",
"?",
"A",
"survey",
"by",
"Sirota",
",",
"Alper",
"&",
"Pfau",
",",
"a",
"New",
"York",
"consulting",
"firm",
",",
"underscores",
"the",
"difficulty",
"for",
"top",
"management",
"in",
"satisfying",
"employees",
"and",
"investors",
"on",
"that",
"score",
".",
"Nearly",
"seven",
"of",
"10",
"investors",
"think",
"companies",
"reinvest",
"``",
"too",
"little",
"''",
"of",
"their",
"profits",
"in",
"the",
"business",
".",
"And",
"half",
"the",
"employees",
"surveyed",
"think",
"companies",
"dole",
"out",
"too",
"little",
"to",
"them",
".",
"But",
"both",
"see",
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[
"Dale",
"Lang",
",",
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"this",
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"the",
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"Mr.",
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",",
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".",
"``",
"Any",
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"can",
"publish",
"a",
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"magazine",
".",
"I",
"want",
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"one",
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",",
"''",
"said",
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".",
"``",
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"Ms.",
",",
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",",
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",",
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"News",
"Corp.",
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"Seventeen",
"magazine",
",",
"Mr.",
"Lang",
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"he",
"will",
"spend",
"$",
"6",
"million",
"promoting",
"and",
"improving",
"the",
"magazine",
".",
"Though",
"Sassy",
"has",
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"its",
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"1988",
",",
"it",
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"skittish",
"advertisers",
"who",
"bristled",
"at",
"its",
"frank",
"editorial",
"matter",
"on",
"teen-age",
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".",
"Mr.",
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"were",
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"Moral",
"Majority",
"...",
".",
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"was",
"to",
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"and",
"ride",
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".",
"''",
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",",
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",",
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"''",
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";",
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"advertising",
"pages",
"have",
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".",
"What",
"'s",
"more",
",",
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":",
"a",
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"``",
"Seventeen",
"is",
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"mothers",
",",
"not",
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",",
"''",
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".",
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"It",
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"mail",
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"a",
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",",
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"Woman",
"10",
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".",
"''",
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"Lang",
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".",
"Two",
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"ago",
",",
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"and",
"Mr.",
"Lang",
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"$",
"800,000",
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"keep",
"the",
"doors",
"open",
".",
"Industry",
"observers",
"have",
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"Lang",
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"what",
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"his",
"``",
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"''",
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"Ms.",
",",
"but",
"his",
"track",
"record",
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"in",
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"has",
"gotten",
"mixed",
"reviews",
".",
"Besides",
"Ms.",
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"Sassy",
",",
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"Lang",
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"includes",
"Success",
",",
"a",
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"and",
"small",
"businesses",
",",
"and",
"Working",
"Woman",
"and",
"Working",
"Mother",
",",
"two",
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"magazines",
".",
"Working",
"Woman",
",",
"with",
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",",
"and",
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"Mother",
",",
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"625,000",
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",",
"are",
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"magazine",
"success",
"stories",
".",
"The",
"magazine",
"Success",
",",
"however",
",",
"was",
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"years",
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"and",
"unfocused",
".",
"Only",
"recently",
"has",
"it",
"been",
"attractively",
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"and",
"its",
"editorial",
"product",
"improved",
".",
"Success",
"is",
"expected",
"to",
"gain",
"at",
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"of",
"the",
"recent",
"folding",
"of",
"rival",
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",",
"another",
"magazine",
"for",
"growing",
"companies",
".",
"Working",
"Woman",
"and",
"Working",
"Mother",
"have",
"operated",
"as",
"part",
"of",
"Working",
"Woman/McCall",
"'s",
"Group",
",",
"a",
"less-than-successful",
"joint",
"venture",
"between",
"Mr.",
"Lang",
"and",
"Time",
"Warner",
"Inc",
".",
"The",
"joint",
"venture",
"is",
"being",
"undone",
",",
"with",
"McCall",
"'s",
"magazine",
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"York",
"Times",
"Co.",
"'s",
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"Group",
"for",
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[
"What",
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",",
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[
"J.C.",
"PENNEY",
"Co.",
",",
"Dallas",
",",
"said",
"it",
"issued",
"$",
"350",
"million",
"of",
"securities",
"backed",
"by",
"credit-card",
"receivables",
".",
"The",
"offering",
"was",
"priced",
"with",
"an",
"8.95",
"%",
"coupon",
"rate",
"at",
"99.1875",
"%",
"to",
"yield",
"9.19",
"%",
".",
"The",
"retailer",
"said",
"the",
"securities",
"are",
"expected",
"to",
"be",
"rated",
"triple-A",
"by",
"Standard",
"&",
"Poor",
"'s",
"Corp.",
"and",
"Aaa",
"by",
"Moody",
"'s",
"Investors",
"Service",
"Inc",
".",
"They",
"pay",
"interest",
"only",
"for",
"115",
"months",
",",
"with",
"principal",
"payments",
"beginning",
"thereafter",
".",
"The",
"expected",
"average",
"life",
"of",
"the",
"certificates",
"is",
"10",
"years",
",",
"with",
"the",
"final",
"scheduled",
"payment",
"in",
"October",
",",
"2001",
".",
"First",
"Boston",
"Corp.",
"is",
"sole",
"underwriter",
".",
"As",
"part",
"of",
"the",
"transaction",
",",
"J.C.",
"Penney",
"will",
"sell",
"a",
"portion",
"of",
"its",
"credit-card",
"receivables",
"to",
"its",
"JCP",
"Receivables",
"Inc.",
"unit",
",",
"which",
"will",
"then",
"transfer",
"them",
"to",
"a",
"master",
"trust",
".",
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"trust",
"will",
"issue",
"the",
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".",
"Credit",
"support",
"will",
"be",
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"the",
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",",
"Fuji",
"Bank",
"&",
"Trust",
"Co.",
",",
"for",
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"the",
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"holders",
".",
"J.C.",
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"will",
"continue",
"to",
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"the",
"receivables",
"."
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"J.",
"Tirello",
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".",
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"the",
"MeraBank",
"unit",
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"federal",
"regulators",
".",
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"at",
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"utility",
"and",
"thrift",
"holding",
"company",
",",
"based",
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",",
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",",
"reflect",
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"losses",
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"real-estate",
",",
"venture-capital",
"and",
"uranium-mining",
"operations",
".",
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"slid",
"to",
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"5.1",
"million",
",",
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"a",
"share",
",",
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"56",
"million",
",",
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"65",
"cents",
",",
"a",
"year",
"earlier",
".",
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"operations",
",",
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",",
"had",
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"26",
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",",
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"86.3",
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",",
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"a",
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"'s",
"huge",
"Palo",
"Verde",
"nuclear",
"facility",
"and",
"the",
"cost",
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"purchased",
"replacement",
"power",
".",
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"other",
"operations",
",",
"losses",
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"MeraBank",
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"$",
"85.7",
"million",
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"latest",
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",",
"compared",
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"a",
"$",
"2.5",
"million",
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".",
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"includes",
"a",
"$",
"42.7",
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"loan-loss",
"reserves",
".",
"As",
"recently",
"as",
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",",
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"did",
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"a",
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"substantial",
"additions",
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"reserves",
".",
"Pinnacle",
"'s",
"SunCor",
"Development",
"Co",
".",
"real-estate",
"unit",
"'s",
"loss",
"narrowed",
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"$",
"13.8",
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"78.4",
"million",
".",
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"latest",
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"included",
"a",
"$",
"9",
"million",
"write-down",
"on",
"undeveloped",
"land",
",",
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"46",
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[
"A",
"House-Senate",
"conference",
"approved",
"a",
"nearly",
"$",
"17",
"billion",
"State",
",",
"Justice",
"and",
"Commerce",
"Department",
"bill",
"that",
"makes",
"federal",
"reparations",
"for",
"Japanese-Americans",
"held",
"in",
"World",
"War",
"II",
"internment",
"camps",
"a",
"legal",
"entitlement",
"after",
"next",
"Oct.",
"1",
".",
"The",
"measure",
"provides",
"no",
"money",
"for",
"the",
"promised",
"payments",
"until",
"then",
",",
"but",
"beginning",
"in",
"fiscal",
"1991",
",",
"the",
"government",
"would",
"be",
"committed",
"to",
"meeting",
"annual",
"payments",
"of",
"as",
"much",
"as",
"$",
"500",
"million",
"until",
"the",
"total",
"liability",
"of",
"approximately",
"$",
"1.25",
"billion",
"is",
"paid",
".",
"The",
"action",
"abandons",
"earlier",
"efforts",
"to",
"find",
"offsetting",
"cuts",
"to",
"fund",
"the",
"payments",
",",
"but",
"is",
"widely",
"seen",
"as",
"a",
"more",
"realistic",
"means",
"of",
"expediting",
"reparations",
"first",
"authorized",
"in",
"1988",
".",
"The",
"action",
"came",
"as",
"Congress",
"sent",
"to",
"President",
"Bush",
"a",
"fiscal",
"1990",
"bill",
"providing",
"an",
"estimated",
"$",
"156.7",
"billion",
"for",
"the",
"Departments",
"of",
"Labor",
",",
"Education",
",",
"Health",
"and",
"Human",
"Services",
".",
"Final",
"approval",
"was",
"on",
"a",
"67-31",
"roll",
"call",
"in",
"the",
"Senate",
",",
"which",
"sets",
"the",
"stage",
"for",
"a",
"veto",
"confrontation",
"with",
"Mr.",
"Bush",
"over",
"the",
"issue",
"of",
"publicly",
"financed",
"abortions",
"for",
"poor",
"women",
".",
"Reversing",
"an",
"eight-year",
"federal",
"policy",
",",
"the",
"measure",
"supports",
"Medicaid",
"abortions",
"in",
"cases",
"of",
"rape",
"and",
"incest",
",",
"but",
"Mr.",
"Bush",
"has",
"so",
"far",
"refused",
"to",
"support",
"any",
"specific",
"exemption",
"beyond",
"instances",
"in",
"which",
"the",
"mother",
"'s",
"life",
"is",
"in",
"danger",
".",
"Mr.",
"Bush",
"'s",
"veto",
"power",
"puts",
"him",
"a",
"commanding",
"position",
"in",
"the",
"narrowly",
"divided",
"House",
",",
"but",
"a",
"vote",
"to",
"override",
"his",
"position",
"could",
"well",
"pick",
"up",
"new",
"support",
"because",
"of",
"the",
"wealth",
"of",
"health",
"and",
"education",
"programs",
"financed",
"in",
"the",
"underlying",
"bill",
".",
"The",
"measure",
"before",
"the",
"conference",
"yesterday",
"funds",
"the",
"Departments",
"of",
"State",
",",
"Justice",
"and",
"Commerce",
"through",
"fiscal",
"1990",
".",
"An",
"estimated",
"$",
"1.32",
"billion",
"is",
"provided",
"for",
"next",
"year",
"'s",
"census",
",",
"and",
"negotiators",
"stripped",
"a",
"Senate-passed",
"rider",
"seeking",
"to",
"block",
"the",
"counting",
"of",
"illegal",
"aliens",
".",
"Elsewhere",
"in",
"the",
"Commerce",
"Department",
",",
"nearly",
"$",
"191.2",
"million",
"is",
"preserved",
"for",
"assistance",
"programs",
"under",
"the",
"Economic",
"Development",
"Administration",
".",
"And",
"in",
"a",
"footnote",
"to",
"the",
"fall",
"of",
"House",
"Speaker",
"James",
"Wright",
"this",
"year",
",",
"the",
"conference",
"voted",
"to",
"rescind",
"$",
"11.8",
"million",
"in",
"unspent",
"EDA",
"funds",
"for",
"a",
"Fort",
"Worth",
",",
"Texas",
",",
"stockyards",
"project",
"that",
"figured",
"in",
"ethics",
"charges",
"against",
"the",
"former",
"Democratic",
"leader",
".",
"Fiscal",
"pressures",
"also",
"forced",
"the",
"adoption",
"of",
"new",
"fees",
"charged",
"by",
"federal",
"agencies",
",",
"and",
"an",
"18",
"%",
"increase",
"in",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"'s",
"budget",
"would",
"be",
"financed",
"entirely",
"by",
"an",
"added",
"$",
"26",
"million",
"in",
"filing",
"fees",
".",
"In",
"an",
"unprecedented",
"step",
",",
"the",
"measure",
"anticipates",
"another",
"$",
"30",
"million",
"in",
"receipts",
"by",
"having",
"the",
"Federal",
"Bureau",
"of",
"Investigation",
"charge",
"for",
"fingerprint",
"services",
"in",
"civil",
"cases",
"--",
"a",
"change",
"that",
"is",
"almost",
"certain",
"to",
"increase",
"Pentagon",
"costs",
"in",
"processing",
"personnel",
"and",
"security",
"clearances",
".",
"The",
"bill",
"does",
"n't",
"include",
"an",
"estimated",
"$",
"1.9",
"billion",
"in",
"supplemental",
"anti-drug",
"funds",
"for",
"Justice",
"Department",
"and",
"law-enforcement",
"accounts",
"that",
"are",
"still",
"in",
"conference",
"with",
"the",
"House",
".",
"But",
"yesterday",
"'s",
"agreement",
"would",
"make",
"it",
"easier",
"for",
"state",
"governments",
"to",
"handle",
"the",
"promised",
"aid",
"by",
"deferring",
"for",
"one",
"year",
"a",
"scheduled",
"50",
"%",
"increase",
"in",
"the",
"required",
"state",
"matching",
"funds",
"for",
"law-enforcement",
"grants",
".",
"Similarly",
",",
"the",
"measure",
"adjusts",
"the",
"current",
"funding",
"formula",
"to",
"promise",
"smaller",
"states",
"such",
"as",
"New",
"Hampshire",
"and",
"Delaware",
"a",
"minimum",
"allocation",
"of",
"$",
"1.6",
"million",
"each",
"in",
"drug",
"grants",
",",
"or",
"three",
"times",
"the",
"current",
"minimum",
".",
"The",
"odd",
"mix",
"of",
"departments",
"in",
"the",
"bill",
"makes",
"it",
"one",
"of",
"the",
"more",
"eclectic",
"of",
"the",
"annual",
"appropriations",
"measures",
",",
"and",
"the",
"assorted",
"provisions",
"attached",
"by",
"lawmakers",
"run",
"from",
"$",
"1.5",
"million",
"for",
"a",
"fish",
"farm",
"in",
"Arkansas",
"to",
"a",
"music",
"festival",
"in",
"Moscow",
"under",
"the",
"United",
"States",
"Information",
"Agency",
".",
"Lawmakers",
"scrapped",
"all",
"of",
"a",
"$",
"7.4",
"million",
"State",
"Department",
"request",
"for",
"the",
"1992",
"Expo",
"in",
"Seville",
",",
"Spain",
",",
"but",
"agreed",
"elsewhere",
"to",
"$",
"15,000",
"for",
"an",
"oil",
"portrait",
"of",
"former",
"Chief",
"Justice",
"Warren",
"Burger",
".",
"Senate",
"Commerce",
"Committee",
"Chairman",
"Ernest",
"Hollings",
"(",
"D.",
",",
"S.C.",
")",
",",
"who",
"also",
"chairs",
"the",
"Senate",
"appropriations",
"subcommittee",
"for",
"the",
"department",
",",
"attached",
"$",
"10",
"million",
"for",
"an",
"advanced",
"technology",
"initiative",
",",
"including",
"work",
"on",
"high-definition",
"television",
".",
"His",
"Republican",
"counterpart",
",",
"Sen.",
"Warren",
"Rudman",
"(",
"R.",
",",
"N.H.",
")",
",",
"has",
"used",
"his",
"position",
"to",
"wage",
"a",
"legislative",
"war",
"with",
"the",
"conservative",
"board",
"of",
"the",
"Legal",
"Services",
"Corp",
".",
"An",
"estimated",
"$",
"321",
"million",
"is",
"provided",
"to",
"maintain",
"the",
"program",
",",
"but",
"Mr.",
"Rudman",
"also",
"succeeded",
"in",
"attaching",
"language",
"seeking",
"to",
"curb",
"the",
"authority",
"of",
"the",
"current",
"board",
"until",
"new",
"members",
"are",
"confirmed",
".",
"The",
"effective",
"date",
"of",
"any",
"new",
"regulations",
"by",
"the",
"current",
"board",
"would",
"be",
"delayed",
"until",
"Oct.",
"1",
"next",
"year",
",",
"and",
"the",
"bill",
"seeks",
"to",
"reverse",
"efforts",
"by",
"the",
"corporation",
"to",
"cut",
"off",
"funds",
"to",
"service",
"organizations",
"such",
"as",
"the",
"Food",
"Research",
"and",
"Action",
"Center",
".",
"The",
"bill",
"also",
"provides",
"$",
"620.5",
"million",
"to",
"meet",
"U.S.",
"contributions",
"to",
"international",
"organizations",
"and",
"$",
"80",
"million",
"for",
"peace-keeping",
"activities",
".",
"Both",
"accounts",
"reflect",
"significant",
"increases",
"from",
"fiscal",
"1989",
",",
"although",
"the",
"amount",
"for",
"peace-keeping",
"shows",
"a",
"27",
"%",
"cut",
"from",
"the",
"administration",
"'s",
"request",
"."
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[
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"and",
"the",
"Cananea",
"mine",
"in",
"Mexico",
",",
"were",
"finally",
"resolved",
".",
"Also",
",",
"the",
"premiums",
"paid",
"by",
"the",
"U.S.",
"government",
"on",
"a",
"purchase",
"of",
"copper",
"for",
"the",
"U.S.",
"Mint",
"were",
"lower",
"than",
"expected",
",",
"and",
"acted",
"as",
"a",
"price",
"depressant",
",",
"analysts",
"said",
".",
"The",
"mint",
"purchases",
"were",
"at",
"premiums",
"about",
"4",
"1/2",
"cents",
"a",
"pound",
"above",
"the",
"respective",
"prices",
"for",
"the",
"copper",
".",
"At",
"the",
"time",
"merchants",
"were",
"asking",
"for",
"premiums",
"of",
"about",
"five",
"cents",
"a",
"pound",
".",
"All",
"this",
"has",
"led",
"to",
"prolonged",
"selling",
"in",
"futures",
",",
"mostly",
"on",
"the",
"part",
"of",
"computer-guided",
"funds",
".",
"Prices",
"fell",
"through",
"levels",
"regarded",
"as",
"important",
"support",
"areas",
",",
"which",
"added",
"to",
"the",
"selling",
".",
"The",
"reluctance",
"of",
"traders",
"to",
"buy",
"contracts",
"indicates",
"that",
"they",
"have",
"begun",
"focusing",
"on",
"demand",
"rather",
"than",
"supply",
".",
"At",
"least",
"one",
"analyst",
"noted",
"that",
"as",
"production",
"improves",
",",
"the",
"concern",
"among",
"traders",
"is",
"whether",
"the",
"prospective",
"increased",
"supply",
"will",
"find",
"buyers",
"because",
"of",
"uncertainty",
"over",
"national",
"economies",
".",
"``",
"Demand",
"from",
"Japan",
"is",
"expected",
"to",
"continue",
"strong",
",",
"but",
"not",
"from",
"other",
"areas",
"of",
"the",
"world",
"into",
"the",
"first",
"quarter",
"of",
"next",
"year",
",",
"''",
"he",
"said",
".",
"Japan",
"normally",
"depends",
"heavily",
"on",
"the",
"Highland",
"Valley",
"and",
"Cananea",
"mines",
"as",
"well",
"as",
"the",
"Bougainville",
"mine",
"in",
"Papua",
"New",
"Guinea",
".",
"Recently",
",",
"Japan",
"has",
"been",
"buying",
"copper",
"elsewhere",
".",
"But",
"as",
"Highland",
"Valley",
"and",
"Cananea",
"begin",
"operating",
",",
"they",
"are",
"expected",
"to",
"resume",
"their",
"roles",
"as",
"Japan",
"'s",
"suppliers",
".",
"According",
"to",
"Fred",
"Demler",
",",
"metals",
"economist",
"for",
"Drexel",
"Burnham",
"Lambert",
",",
"New",
"York",
",",
"``",
"Highland",
"Valley",
"has",
"already",
"started",
"operating",
"and",
"Cananea",
"is",
"expected",
"to",
"do",
"so",
"soon",
".",
"''",
"The",
"Bougainville",
"mine",
"is",
"generally",
"expected",
"to",
"remain",
"closed",
"until",
"at",
"least",
"the",
"end",
"of",
"the",
"year",
".",
"It",
"has",
"n't",
"been",
"operating",
"since",
"May",
"15",
"because",
"of",
"attacks",
"by",
"native",
"landowners",
".",
"A",
"recent",
"attempt",
"to",
"resume",
"operations",
"was",
"cut",
"short",
"quickly",
"by",
"these",
"attacks",
".",
"However",
",",
"traders",
"disregarded",
"a",
"potential",
"production",
"disruption",
"in",
"Chile",
"and",
"a",
"continued",
"drop",
"in",
"inventories",
".",
"Workers",
"at",
"two",
"Chilean",
"mines",
",",
"Los",
"Bronces",
"and",
"El",
"Soldado",
",",
"which",
"belong",
"to",
"the",
"Exxon-owned",
"Minera",
"Disputado",
"group",
",",
"will",
"vote",
"Thursday",
"on",
"whether",
"to",
"strike",
"after",
"a",
"two-year",
"labor",
"pact",
"ends",
"today",
".",
"The",
"mines",
"produced",
"a",
"total",
"of",
"110,000",
"tons",
"of",
"copper",
"in",
"1988",
".",
"According",
"to",
"Drexel",
"'s",
"Mr.",
"Demler",
",",
"the",
"potential",
"strike",
"is",
"expected",
"to",
"be",
"resolved",
"quickly",
",",
"which",
"may",
"be",
"one",
"reason",
"why",
"the",
"situation",
"did",
"n't",
"affect",
"prices",
"much",
".",
"Another",
"analyst",
"said",
"that",
",",
"if",
"there",
"was",
"any",
"concern",
",",
"it",
"was",
"that",
"a",
"strike",
"could",
"encourage",
"other",
"walkouts",
"in",
"Chile",
".",
"London",
"Metal",
"Exchange",
"copper",
"inventories",
"fell",
"550",
"tons",
"last",
"week",
"to",
"83,950",
"tons",
",",
"a",
"smaller-than-expected",
"decline",
".",
"But",
"that",
"development",
"also",
"had",
"little",
"effect",
"on",
"traders",
"'",
"sentiment",
".",
"Mr.",
"Demler",
"said",
"that",
"stocks",
"of",
"copper",
"in",
"U.S.",
"producers",
"'",
"hands",
"at",
"the",
"end",
"of",
"September",
"were",
"down",
"16,000",
"metric",
"tons",
"from",
"August",
"to",
"30,000",
"tons",
".",
"Outside",
"the",
"U.S.",
",",
"he",
"said",
",",
"producer",
"stocks",
"at",
"the",
"end",
"of",
"August",
"were",
"273,000",
"tons",
",",
"down",
"3,000",
"tons",
"from",
"the",
"end",
"of",
"July",
".",
"Consumer",
"stocks",
"of",
"copper",
"in",
"the",
"U.S.",
"fell",
"to",
"44,000",
"tons",
"at",
"the",
"end",
"of",
"September",
"from",
"54,000",
"tons",
"a",
"month",
"earlier",
",",
"and",
"stocks",
"of",
"copper",
"held",
"by",
"consumers",
"and",
"merchants",
"outside",
"of",
"the",
"U.S.",
"at",
"the",
"end",
"of",
"July",
"stood",
"at",
"123,000",
"tons",
",",
"down",
"from",
"125,000",
"tons",
"in",
"June",
".",
"The",
"high",
"point",
"of",
"foreigners",
"'",
"copper",
"stocks",
"this",
"year",
"was",
"136,000",
"tons",
"at",
"the",
"end",
"of",
"April",
",",
"according",
"to",
"Mr.",
"Demler",
".",
"In",
"other",
"commodity",
"markets",
"yesterday",
":",
"GRAINS",
"AND",
"SOYBEANS",
":",
"The",
"prices",
"of",
"most",
"corn",
",",
"soybean",
"and",
"wheat",
"futures",
"contracts",
"dropped",
"slightly",
"as",
"farmers",
"in",
"the",
"Midwest",
"continued",
"to",
"rebuild",
"stockpiles",
"that",
"were",
"depleted",
"by",
"the",
"1988",
"drought",
".",
"Buying",
"by",
"the",
"Soviets",
"has",
"helped",
"to",
"prop",
"up",
"corn",
"prices",
"in",
"recent",
"weeks",
",",
"but",
"a",
"lack",
"of",
"any",
"new",
"purchases",
"kept",
"prices",
"in",
"the",
"doldrums",
".",
"COFFEE",
":",
"Futures",
"prices",
"rose",
"slightly",
"in",
"a",
"market",
"filled",
"with",
"rumors",
"that",
"a",
"new",
"international",
"coffee",
"agreement",
"might",
"still",
"be",
"achieved",
".",
"The",
"December",
"contract",
"ended",
"with",
"a",
"gain",
"of",
"1.29",
"cents",
"a",
"pound",
"at",
"74.35",
"cents",
".",
"According",
"to",
"one",
"analyst",
",",
"prices",
"opened",
"higher",
"because",
"of",
"reports",
"over",
"the",
"weekend",
"that",
"Brazil",
"and",
"Colombia",
",",
"at",
"the",
"Pan-American",
"summit",
"meeting",
"in",
"Costa",
"Rica",
",",
"had",
"agreed",
"to",
"a",
"reduction",
"in",
"their",
"coffee",
"export",
"quotas",
"for",
"the",
"sake",
"of",
"creating",
"a",
"new",
"agreement",
".",
"The",
"reports",
",",
"attributed",
"to",
"the",
"Colombian",
"minister",
"of",
"economic",
"development",
",",
"said",
"Brazil",
"would",
"give",
"up",
"500,000",
"bags",
"of",
"its",
"quota",
"and",
"Colombia",
"200,000",
"bags",
",",
"the",
"analyst",
"said",
".",
"These",
"reports",
"were",
"later",
"denied",
"by",
"a",
"high",
"Brazilian",
"official",
",",
"who",
"said",
"Brazil",
"was",
"n't",
"involved",
"in",
"any",
"coffee",
"discussions",
"on",
"quotas",
",",
"the",
"analyst",
"said",
".",
"The",
"Colombian",
"minister",
"was",
"said",
"to",
"have",
"referred",
"to",
"a",
"letter",
"that",
"he",
"said",
"President",
"Bush",
"sent",
"to",
"Colombian",
"President",
"Virgilio",
"Barco",
",",
"and",
"in",
"which",
"President",
"Bush",
"said",
"it",
"was",
"possible",
"to",
"overcome",
"obstacles",
"to",
"a",
"new",
"agreement",
".",
"The",
"minister",
"was",
"also",
"quoted",
"as",
"saying",
"that",
"a",
"new",
"pact",
"could",
"be",
"achieved",
"during",
"the",
"first",
"half",
"of",
"next",
"year",
",",
"according",
"to",
"the",
"analyst",
".",
"PRECIOUS",
"METALS",
":",
"Futures",
"prices",
"showed",
"modest",
"changes",
"in",
"light",
"trading",
"volume",
".",
"December",
"delivery",
"gold",
"eased",
"40",
"cents",
"an",
"ounce",
"to",
"$",
"380.80",
".",
"December",
"silver",
"was",
"off",
"3.7",
"cents",
"an",
"ounce",
"at",
"$",
"5.2830",
".",
"January",
"platinum",
"rose",
"90",
"cents",
"an",
"ounce",
"at",
"$",
"500.20",
".",
"The",
"market",
"turned",
"quiet",
"after",
"rising",
"sharply",
"late",
"last",
"week",
",",
"according",
"to",
"one",
"analyst",
".",
"Last",
"week",
"'s",
"uncertainty",
"in",
"the",
"stock",
"market",
"and",
"a",
"weaker",
"dollar",
"triggered",
"a",
"flight",
"to",
"safety",
",",
"he",
"said",
",",
"but",
"yesterday",
"the",
"market",
"lacked",
"such",
"stimuli",
".",
"There",
"was",
"some",
"profit-taking",
"because",
"prices",
"for",
"all",
"the",
"precious",
"metals",
"had",
"risen",
"to",
"levels",
"at",
"which",
"there",
"was",
"resistance",
"to",
"further",
"advance",
",",
"he",
"said",
".",
"The",
"dollar",
"was",
"also",
"slightly",
"firmer",
"and",
"prompted",
"some",
"selling",
",",
"as",
"well",
",",
"according",
"to",
"the",
"analyst",
"."
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"Tuesday",
"'s",
"sharp",
"gains",
",",
"as",
"prices",
"closed",
"slightly",
"higher",
"in",
"sluggish",
"trading",
".",
"While",
"renewed",
"optimism",
"about",
"the",
"outlook",
"for",
"takeover",
"activity",
"boosted",
"several",
"so-called",
"deal",
"stocks",
",",
"traders",
"said",
"profit-taking",
"weighed",
"on",
"the",
"market",
",",
"with",
"blue-chips",
"bearing",
"the",
"brunt",
"of",
"the",
"selling",
".",
"The",
"Dow",
"Jones",
"Industrial",
"Average",
",",
"which",
"had",
"jumped",
"41.60",
"points",
"on",
"Tuesday",
",",
"drifted",
"on",
"either",
"side",
"of",
"its",
"previous",
"close",
"and",
"finished",
"with",
"a",
"gain",
"of",
"just",
"0.82",
"at",
"2645.90",
".",
"Standard",
"&",
"Poor",
"'s",
"500-Stock",
"Index",
"added",
"0.84",
"to",
"341.20",
";",
"the",
"rise",
"was",
"equivalent",
"to",
"a",
"gain",
"of",
"about",
"six",
"points",
"in",
"the",
"industrial",
"average",
".",
"The",
"Dow",
"Jones",
"Equity",
"Market",
"Index",
"gained",
"0.99",
"to",
"319.75",
"and",
"the",
"New",
"York",
"Stock",
"Exchange",
"Composite",
"Index",
"went",
"up",
"0.60",
"to",
"188.84",
".",
"Advancing",
"stocks",
"led",
"decliners",
"on",
"the",
"New",
"York",
"Stock",
"Exchange",
"by",
"847",
"to",
"644",
".",
"Big",
"Board",
"volume",
"amounted",
"to",
"154,240,000",
"shares",
",",
"down",
"from",
"176.1",
"million",
"Tuesday",
".",
"The",
"October",
"survey",
"of",
"corporate",
"purchasing",
"managers",
",",
"as",
"expected",
",",
"provided",
"evidence",
"that",
"economic",
"growth",
"remains",
"subdued",
".",
"An",
"index",
"of",
"economic",
"activity",
"drawn",
"from",
"the",
"survey",
"stood",
"last",
"month",
"at",
"47.6",
"%",
";",
"a",
"reading",
"above",
"50",
"%",
"would",
"have",
"indicated",
"that",
"the",
"manufacturing",
"sector",
"was",
"improving",
".",
"But",
"with",
"the",
"index",
"proving",
"somewhat",
"better",
"than",
"expected",
"and",
"the",
"widely",
"anticipated",
"report",
"on",
"October",
"employment",
"scheduled",
"to",
"arrive",
"tomorrow",
",",
"stock",
"prices",
"firmed",
"only",
"modestly",
"in",
"response",
"to",
"the",
"report",
"and",
"then",
"faltered",
".",
"``",
"This",
"market",
"'s",
"still",
"going",
"through",
"its",
"pains",
",",
"''",
"said",
"Philip",
"Puccio",
",",
"head",
"of",
"equity",
"trading",
"at",
"Prudential-Bache",
"Securities",
".",
"``",
"The",
"psychology",
"is",
"still",
":",
"`",
"We",
"want",
"(",
"stocks",
")",
"up",
",",
"but",
"if",
"they",
"do",
"n't",
"carry",
"we",
"'re",
"going",
"to",
"sell",
"them",
".",
"'",
"''",
"Uncertainty",
"about",
"the",
"prospects",
"for",
"further",
"action",
"to",
"curtail",
"stock-index",
"arbitrage",
",",
"a",
"form",
"of",
"program",
"trading",
"blamed",
"for",
"recent",
"volatility",
"in",
"the",
"market",
",",
"also",
"contributed",
"to",
"its",
"lack",
"of",
"direction",
",",
"Mr.",
"Puccio",
"said",
".",
"Arbitrage-related",
"trading",
"during",
"the",
"session",
"was",
"confined",
"largely",
"to",
"a",
"round",
"of",
"buy",
"programs",
"near",
"the",
"close",
",",
"which",
"helped",
"offset",
"the",
"impact",
"of",
"profit-taking",
"among",
"blue",
"chips",
".",
"Trading",
"is",
"expected",
"to",
"remain",
"subdued",
"as",
"the",
"market",
"awaits",
"tomorrow",
"'s",
"release",
"of",
"the",
"jobs",
"data",
"with",
"the",
"hope",
"that",
"it",
"will",
"point",
"toward",
"a",
"decline",
"in",
"interest",
"rates",
".",
"``",
"I",
"sense",
"that",
"some",
"people",
"are",
"reluctant",
"to",
"stick",
"their",
"necks",
"out",
"in",
"any",
"aggressive",
"way",
"until",
"after",
"the",
"figures",
"come",
"out",
",",
"''",
"said",
"Richard",
"Eakle",
",",
"president",
"of",
"Eakle",
"Associates",
",",
"Fair",
"Haven",
",",
"Campbell",
"Soup",
"jumped",
"3",
"3/8",
"to",
"47",
"1/8",
"as",
"the",
"resignation",
"of",
"R.",
"Gordon",
"McGovern",
"as",
"president",
"and",
"chief",
"executive",
"officer",
"sparked",
"a",
"revival",
"of",
"rumors",
"that",
"the",
"company",
"could",
"become",
"a",
"takeover",
"target",
".",
"Prudential-Bache",
"Securities",
"boosted",
"the",
"stock",
"'s",
"short-term",
"investment",
"rating",
"in",
"response",
"to",
"the",
"departure",
";",
"analyst",
"John",
"McMillin",
"said",
"he",
"believes",
"the",
"company",
"will",
"turn",
"to",
"new",
"management",
"``",
"that",
"'s",
"more",
"financially",
"oriented",
".",
"''",
"Other",
"rumored",
"takeover",
"and",
"restructuring",
"candidates",
"to",
"attract",
"buyers",
"included",
"Woolworth",
",",
"which",
"went",
"up",
"1",
"3/4",
"to",
"59",
"1/2",
";",
"Avon",
"Products",
",",
"up",
"1",
"3/4",
"to",
"29",
"1/4",
";",
"Paramount",
"Communications",
",",
"up",
"2",
"to",
"57",
"7/8",
",",
"and",
"Ferro",
",",
"up",
"2",
"5/8",
"to",
"28",
"3/4",
".",
"Upjohn",
",",
"a",
"rumored",
"target",
"within",
"the",
"drug",
"industry",
",",
"advanced",
"7/8",
"to",
"38",
"7/8",
".",
"The",
"company",
"said",
"it",
"plans",
"a",
"fourth-quarter",
"charge",
",",
"which",
"it",
"did",
"n't",
"specify",
",",
"for",
"an",
"early-retirement",
"program",
".",
"AMR",
"climbed",
"1",
"3/4",
"to",
"73",
"1/8",
"amid",
"rumors",
"that",
"New",
"York",
"developer",
"Donald",
"Trump",
"was",
"seeking",
"financing",
"to",
"mount",
"a",
"new",
",",
"lower",
"offer",
"for",
"the",
"parent",
"company",
"of",
"American",
"Airlines",
".",
"Mr.",
"Trump",
"withdrew",
"a",
"$",
"120-a-share",
"bid",
"last",
"month",
".",
"UAL",
"rose",
"1",
"1/2",
"to",
"177",
".",
"Drexel",
"Burnham",
"Lambert",
"analyst",
"Michael",
"Derchin",
"said",
"he",
"sees",
"a",
"70",
"%",
"chance",
"that",
"the",
"parent",
"of",
"United",
"Airlines",
",",
"the",
"target",
"of",
"a",
"failed",
"$",
"300-a-share",
"offer",
"from",
"a",
"labor-management",
"group",
",",
"will",
"be",
"acquired",
"or",
"restructured",
"within",
"six",
"months",
".",
"Georgia",
"Gulf",
"added",
"1",
"3/4",
"to",
"51",
"1/4",
"after",
"NL",
"Industries",
",",
"controlled",
"by",
"Dallas",
"investor",
"Harold",
"Simmons",
",",
"offered",
"to",
"acquire",
"the",
"stock",
"it",
"does",
"n't",
"already",
"own",
"for",
"$",
"50",
"a",
"share",
".",
"NL",
",",
"which",
"closed",
"unchanged",
"at",
"22",
"3/4",
",",
"has",
"a",
"stake",
"of",
"just",
"under",
"10",
"%",
".",
"Great",
"Northern",
"Nekoosa",
",",
"which",
"surged",
"20",
"1/8",
"Tuesday",
"after",
"Georgia-Pacific",
"launched",
"a",
"$",
"3.18",
"billion",
"offer",
"for",
"the",
"company",
",",
"dropped",
"1",
"3/8",
"to",
"61",
"1/2",
"in",
"Big",
"Board",
"composite",
"trading",
"of",
"5.1",
"million",
"shares",
".",
"Georgia-Pacific",
",",
"which",
"went",
"down",
"2",
"1/2",
"Tuesday",
",",
"lost",
"another",
"1/2",
"to",
"50",
"3/8",
".",
"Other",
"paper",
"and",
"forest-products",
"stocks",
"closed",
"mixed",
".",
"Mead",
"rose",
"3/4",
"to",
"39",
"1/2",
",",
"Federal",
"Paper",
"Board",
"added",
"1/2",
"to",
"24",
"3/8",
"and",
"Scott",
"Paper",
"gained",
"1/2",
"to",
"48",
"3/8",
",",
"while",
"International",
"Paper",
"fell",
"7/8",
"to",
"48",
"7/8",
",",
"Champion",
"International",
"lost",
"3/8",
"to",
"31",
"1/2",
"and",
"Louisiana-Pacific",
"dropped",
"1/8",
"to",
"40",
"1/4",
".",
"Texaco",
"rose",
"3/4",
"to",
"53",
"3/8",
"as",
"4.4",
"million",
"shares",
"changed",
"hands",
".",
"Most",
"of",
"the",
"volume",
"came",
"from",
"trades",
"designed",
"to",
"capture",
"the",
"stock",
"'s",
"next",
"dividend",
";",
"Texaco",
"has",
"a",
"yield",
"of",
"5.6",
"%",
"and",
"goes",
"ex-dividend",
"today",
".",
"Santa",
"Fe",
"Pacific",
"dropped",
"1",
"1/8",
"to",
"17",
"3/4",
".",
"The",
"company",
"'s",
"proposal",
"to",
"sell",
"a",
"20",
"%",
"stake",
"in",
"its",
"real-estate",
"unit",
"for",
"around",
"$",
"400",
"million",
"has",
"caused",
"analysts",
"to",
"consider",
"whether",
"to",
"cut",
"their",
"estimates",
"of",
"Santa",
"Fe",
"'s",
"asset",
"value",
".",
"GenCorp",
"tumbled",
"2",
"to",
"14",
".",
"The",
"company",
"forecast",
"that",
"fourth-quarter",
"income",
"from",
"continuing",
"operations",
"would",
"be",
"``",
"significantly",
"''",
"lower",
"than",
"a",
"year",
"earlier",
".",
"Allergan",
"went",
"up",
"1/2",
"to",
"19",
"3/8",
".",
"The",
"Food",
"and",
"Drug",
"Administration",
"allowed",
"the",
"company",
"to",
"begin",
"marketing",
"a",
"new",
"lens",
"for",
"use",
"in",
"cataract",
"patients",
".",
"The",
"American",
"Stock",
"Exchange",
"Market",
"Value",
"Index",
"gained",
"1.56",
"to",
"372.14",
".",
"Volume",
"totaled",
"11,390,000",
"shares",
".",
"Old",
"Spaghetti",
"Warehouse",
"rose",
"1",
"to",
"16",
"1/8",
".",
"Its",
"net",
"income",
"for",
"the",
"September",
"quarter",
"rose",
"about",
"41",
"%",
"from",
"a",
"year",
"ago",
"."
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",",
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",",
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"--",
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".",
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",",
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"fans",
"only",
"once",
".",
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"came",
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"inning",
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"Game",
"Four",
"when",
",",
"trailing",
"8-2",
",",
"they",
"scored",
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"brought",
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"--",
"Will",
"Clark",
"and",
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"Mitchell",
"--",
"to",
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"with",
"one",
"out",
"and",
"a",
"runner",
"on",
".",
"But",
"Clark",
"flied",
"out",
"to",
"short",
"right",
"field",
"and",
"Mitchell",
"'s",
"drive",
"to",
"left",
"was",
"caught",
"on",
"the",
"warning",
"track",
"by",
"Rickey",
"Henderson",
"as",
"62,000",
"sets",
"of",
"lungs",
"exhaled",
"as",
"one",
".",
"``",
"I",
"went",
"out",
"to",
"Todd",
"-LCB-",
"Burns",
",",
"the",
"A",
"'s",
"reliever",
"-RCB-",
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"were",
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"guy",
"beat",
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",",
"''",
"said",
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"catcher",
"Terry",
"Steinbach",
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"decisive",
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",",
"the",
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"League",
"'s",
"reigning",
"home-run",
"king",
".",
"``",
"I",
"told",
"him",
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"everything",
",",
"and",
"that",
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".",
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"hit",
"was",
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".",
"If",
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",",
"he",
"mighta",
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"out",
".",
"''",
"But",
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"the",
"A",
"'s",
"had",
"n't",
"won",
"in",
"four",
",",
"they",
"would",
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"five",
",",
"or",
"six",
",",
"or",
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".",
"The",
"best",
"team",
"won",
"this",
"Series",
",",
"which",
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"more",
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".",
"Baseball",
"ai",
"n't",
"football",
",",
"where",
"the",
"good",
"teams",
"beat",
"up",
"on",
"the",
"bad",
"ones",
".",
"The",
"best",
"baseball",
"teams",
"win",
"six",
"of",
"10",
"games",
"and",
"the",
"worst",
"win",
"four",
"of",
"10",
".",
"Without",
"becoming",
"overly",
"contentious",
",",
"allow",
"me",
"to",
"suggest",
"that",
"several",
"recent",
"champions",
"of",
"the",
"world",
"according",
"to",
"us",
"(",
"as",
"in",
"U.S.",
")",
"might",
"not",
"have",
"ranked",
"No.",
"1",
"in",
"many",
"polls",
".",
"That",
"list",
"includes",
"last",
"season",
"'s",
"champs",
",",
"the",
"Los",
"Angeles",
"Dodgers",
",",
"who",
"rode",
"a",
"miracle",
"home",
"run",
"by",
"Kirk",
"Gibson",
"and",
"two",
"faultless",
"pitching",
"performances",
"by",
"Orel",
"Hershiser",
"to",
"a",
"five-game",
"triumph",
"over",
"a",
"bewitched",
",",
"bothered",
"Oakland",
"crew",
".",
"These",
"A",
"'s",
",",
"however",
",",
"got",
"few",
"grades",
"as",
"low",
"as",
"B",
"on",
"their",
"1989",
"report",
"card",
".",
"They",
"led",
"the",
"Major",
"Leagues",
"in",
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"wins",
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"99",
"and",
"flattened",
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"Toronto",
"Blue",
"Jays",
"four",
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"to",
"one",
"for",
"the",
"American",
"League",
"pennant",
"before",
"stomping",
"their",
"cross-bay",
"rivals",
".",
"The",
"pithiest",
"testimony",
"to",
"their",
"domination",
"of",
"the",
"just-concluded",
"tournament",
"came",
"from",
"Giants",
"'",
"manager",
"Roger",
"Craig",
"after",
"his",
"team",
"had",
"fallen",
"in",
"Game",
"Three",
"to",
"a",
"five-home-run",
"barrage",
"that",
"tied",
"a",
"61-year-old",
"Series",
"record",
".",
"Asked",
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"would",
"do",
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"morrow",
",",
"Craig",
"allowed",
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"might",
"play",
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"outfielders",
"deeper",
",",
"``",
"maybe",
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".",
"''",
"The",
"A",
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"showing",
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"Series",
"got",
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"A",
",",
"as",
"in",
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".",
"Their",
"85",
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"bases",
"broke",
"a",
"record",
"for",
"a",
"four-game",
"set",
",",
"and",
"their",
"nine",
"home",
"runs",
"tied",
"one",
".",
"Eight",
"Oakland",
"players",
"hit",
"homers",
",",
"with",
"centerfielder",
"Dave",
"Henderson",
"getting",
"two",
",",
"both",
"on",
"Friday",
".",
"Rickey",
"Henderson",
",",
"the",
"do-everything",
"leadoff",
"man",
",",
"had",
"nine",
"hits",
"and",
"set",
"or",
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"Series",
"marks",
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"triples",
"(",
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")",
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"(",
"3",
")",
".",
"The",
"sole",
"A",
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"homer",
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"cleanup",
"hitter",
"Mark",
"McGwire",
",",
"their",
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"leader",
"with",
"33",
",",
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"Giant",
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".",
"``",
"Think",
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"--",
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"show",
",",
"though",
",",
"the",
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"'",
"star",
",",
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",",
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",",
"Dave",
"Stewart",
".",
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"shut",
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"hits",
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"One",
",",
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"One",
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"Land",
"Beyond",
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"News",
",",
"he",
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",",
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")",
",",
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".",
"``",
"Give",
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"Series",
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",",
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"Cy",
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"Indeed",
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"Saturday",
",",
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".",
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"Twelve",
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".",
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",",
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[
"Albert",
"Engelken",
"and",
"Robert",
"Thomson",
"had",
"never",
"met",
",",
"though",
"for",
"38",
"years",
"their",
"lives",
"had",
"been",
"intertwined",
"in",
"a",
"way",
"peculiar",
"to",
"the",
"sports",
"world",
".",
"Mr.",
"Engelken",
",",
"now",
"a",
"transit-association",
"executive",
"in",
"Washington",
",",
"D.C.",
",",
"and",
"Mr.",
"Thomson",
",",
"a",
"paper-products",
"salesman",
"in",
"Montvale",
",",
"N.J.",
",",
"had",
"n't",
"even",
"talked",
"to",
"each",
"other",
".",
"But",
"one",
"recent",
"day",
",",
"they",
"became",
"much",
"closer",
".",
"Mr.",
"Engelken",
",",
"a",
"rabid",
"baseball",
"fan",
",",
"pores",
"over",
"the",
"sports",
"pages",
"to",
"chart",
"the",
"exploits",
"of",
"``",
"my",
"favorite",
"and",
"not-so-favorite",
"teams",
"and",
"players",
".",
"''",
"He",
"often",
"groans",
",",
"he",
"says",
",",
"at",
"the",
"``",
"clutter",
"''",
"of",
"sports",
"stories",
"about",
"drugs",
",",
"alcohol",
",",
"gambling",
"and",
"some",
"player",
"'s",
"lament",
"``",
"about",
"the",
"miserly",
"millions",
"he",
"is",
"offered",
"to",
"play",
"the",
"game",
".",
"''",
"His",
"morning",
"paper",
",",
"the",
"Washington",
"Post",
",",
"even",
"carries",
"a",
"sports",
"column",
"called",
"``",
"Jurisprudence",
"''",
"that",
"recounts",
"the",
"latest",
"arrests",
"and",
"convictions",
"of",
"players",
"and",
"team",
"managers",
".",
"Like",
"many",
"sports",
"buffs",
",",
"Mr.",
"Engelken",
"has",
"turned",
"cynic",
".",
"But",
"his",
"is",
"a",
"story",
"about",
"a",
"hero",
"in",
"an",
"era",
"of",
"sports",
"anti-heroes",
",",
"and",
"about",
"what",
"Babe",
"Ruth",
",",
"Mr.",
"Engelken",
"reminds",
"us",
",",
"once",
"called",
"``",
"the",
"only",
"real",
"game",
"in",
"the",
"world",
".",
"''",
"To",
"Mr.",
"Engelken",
",",
"it",
"is",
"also",
"a",
"story",
"``",
"about",
"love",
",",
"because",
"I",
"'m",
"blessed",
"to",
"have",
"a",
"wife",
"who",
"still",
"thinks",
"her",
"slightly",
"eccentric",
"husband",
"'s",
"50th",
"birthday",
"deserves",
"the",
"ultimate",
"present",
".",
"''",
"To",
"understand",
"what",
"Mr.",
"Engelken",
"means",
",",
"one",
"must",
"go",
"back",
"to",
"a",
"sunny",
"October",
"afternoon",
"in",
"1951",
"at",
"New",
"York",
"'s",
"Polo",
"Grounds",
"stadium",
",",
"where",
",",
"it",
"can",
"be",
"argued",
",",
"the",
"most",
"dramatic",
"moment",
"in",
"baseball",
"history",
"was",
"played",
"out",
".",
"It",
"was",
"the",
"ninth",
"inning",
"of",
"the",
"third",
"game",
"of",
"a",
"three-game",
"playoff",
"between",
"the",
"Brooklyn",
"Dodgers",
"and",
"the",
"New",
"York",
"Giants",
"(",
"the",
"predecessor",
"to",
"the",
"San",
"Francisco",
"Giants",
"scheduled",
"to",
"play",
"in",
"tonight",
"'s",
"world",
"series",
")",
".",
"Baseball",
"fans",
"throughout",
"New",
"York",
"had",
"sweated",
"out",
"a",
"long",
"summer",
"with",
"their",
"teams",
",",
"and",
"now",
"it",
"had",
"come",
"to",
"this",
":",
"a",
"battle",
"between",
"the",
"two",
"for",
"the",
"National",
"League",
"pennant",
"--",
"down",
"to",
"the",
"last",
"inning",
"of",
"the",
"last",
"game",
",",
"no",
"less",
".",
"Some",
"34,320",
"fans",
"jammed",
"the",
"stands",
",",
"and",
"shouted",
"at",
"the",
"top",
"of",
"their",
"lungs",
".",
"Mr.",
"Engelken",
"was",
"doing",
"the",
"same",
"across",
"the",
"Hudson",
"River",
"in",
"New",
"Jersey",
",",
"where",
",",
"with",
"his",
"nose",
"pressed",
"against",
"the",
"front",
"window",
"of",
"the",
"Passaic-Clifton",
"National",
"Bank",
",",
"he",
"watched",
"the",
"duel",
"on",
"a",
"television",
"set",
"the",
"bank",
"set",
"up",
"for",
"the",
"event",
".",
"The",
"playoff",
"series",
"had",
"riveted",
"the",
"12-year-old",
"Giants",
"fan",
".",
"``",
"The",
"Giants",
"struck",
"first",
",",
"winning",
"the",
"opener",
",",
"3-1",
",",
"on",
"a",
"two-run",
"homer",
"off",
"Dodger",
"right-hander",
"Ralph",
"Branca",
",",
"''",
"Mr.",
"Engelken",
"recalls",
"with",
"precision",
"today",
".",
"``",
"The",
"Giants",
"got",
"swamped",
"in",
"the",
"second",
"game",
",",
"100",
",",
"and",
"trailed",
"4-1",
"going",
"into",
"the",
"bottom",
"of",
"the",
"ninth",
"of",
"the",
"third",
"and",
"deciding",
"game",
".",
"The",
"Giants",
"scored",
"once",
"and",
"had",
"runners",
"on",
"second",
"-LCB-",
"Whitey",
"Lockman",
"-RCB-",
"and",
"third",
"-LCB-",
"Clint",
"Hartung",
"-RCB-",
"as",
"Bobby",
"Thomson",
"advanced",
"to",
"the",
"plate",
".",
"''",
"The",
"rest",
",",
"as",
"they",
"say",
",",
"is",
"history",
".",
"Mr.",
"Thomson",
",",
"a",
"tall",
",",
"Scottish-born",
",",
"right-hand",
"hitter",
",",
"stepped",
"into",
"the",
"batter",
"'s",
"box",
".",
"``",
"Thomson",
"took",
"a",
"called",
"strike",
",",
"''",
"Mr.",
"Engelken",
"recounts",
".",
"The",
"tension",
"mounted",
"as",
"Ralph",
"Branca",
",",
"again",
"on",
"the",
"mound",
",",
"stared",
"down",
"the",
"batter",
".",
"He",
"wound",
"up",
"and",
"let",
"loose",
"a",
"fastball",
".",
"The",
"pitch",
"sailed",
"toward",
"Bobby",
"Thomson",
"high",
"and",
"inside",
"and",
"then",
",",
"with",
"a",
"crack",
"of",
"the",
"bat",
",",
"was",
"sent",
"rocketing",
"back",
"into",
"the",
"lower",
"leftfield",
"stands",
".",
"``",
"Giants",
"fans",
"went",
"into",
"euphoria",
",",
"''",
"says",
"Mr.",
"Engelken",
".",
"And",
"Bobby",
"Thomson",
"was",
"made",
"a",
"legend",
".",
"The",
"same",
"Bobby",
"Thomson",
",",
"it",
"turns",
"out",
",",
"who",
"sells",
"those",
"paper-goods",
"today",
".",
"There",
"ca",
"n't",
"be",
"an",
"older",
"baseball",
"fan",
"alive",
"who",
"does",
"n't",
"clearly",
"remember",
"that",
"Bobby",
"Thomson",
"homer",
",",
"who",
"ca",
"n't",
"tell",
"you",
"where",
"he",
"was",
"when",
"he",
"heard",
"the",
"famous",
"Russ",
"Hodges",
"radio",
"broadcast",
"--",
"the",
"one",
"that",
"concluded",
"with",
"Mr.",
"Hodges",
"shouting",
",",
"over",
"and",
"over",
",",
"``",
"The",
"Giants",
"win",
"the",
"pennant",
",",
"the",
"Giants",
"win",
"the",
"pennant",
"!",
"''",
"Mr.",
"Engelken",
"and",
"Mr.",
"Thomson",
"drifted",
"in",
"different",
"directions",
"in",
"the",
"subsequent",
"years",
",",
"and",
"the",
"Polo",
"Grounds",
",",
"located",
"under",
"Coogan",
"'s",
"Bluff",
"in",
"upper",
"Manhattan",
",",
"was",
"replaced",
"by",
"a",
"public-housing",
"project",
".",
"Mr.",
"Thomson",
"played",
"outfield",
"and",
"third",
"base",
"until",
"1960",
",",
"posting",
"a",
"lifetime",
".270",
"batting",
"average",
"and",
"chalking",
"up",
"264",
"home",
"runs",
"before",
"retiring",
"and",
"going",
"into",
"paper-goods",
"sales",
".",
"Mr.",
"Engelken",
"moved",
"south",
"to",
"Washington",
",",
"but",
"he",
"took",
"with",
"him",
"enduring",
"memories",
"of",
"the",
"homer",
"of",
"1951",
".",
"When",
"his",
"wife",
",",
"Betsy",
",",
"came",
"down",
"the",
"aisle",
"on",
"their",
"wedding",
"day",
"in",
"1966",
",",
"Mr.",
"Engelken",
"--",
"no",
"slouch",
"on",
"the",
"romantic",
"front",
"--",
"gave",
"her",
"the",
"ultimate",
"compliment",
":",
"``",
"You",
"look",
"prettier",
"than",
"Bobby",
"Thomson",
"'s",
"home",
"run",
".",
"''",
"The",
"couple",
"'s",
"first",
"dog",
",",
"Homer",
",",
"was",
"named",
"after",
"the",
"Great",
"Event",
",",
"though",
"unwitting",
"friends",
"assumed",
"he",
"was",
"the",
"namesake",
"of",
"the",
"poet",
".",
"And",
"when",
"Mr.",
"Engelken",
"'s",
"sister",
",",
"Martha",
",",
"who",
"was",
"born",
"two",
"days",
"before",
"the",
"home",
"run",
",",
"reached",
"her",
"25th",
"birthday",
",",
"Mr.",
"Engelken",
"wrote",
"his",
"sports",
"hero",
"to",
"tell",
"him",
"of",
"the",
"coincidence",
"of",
"events",
".",
"Mr.",
"Thomson",
"sent",
"off",
"a",
"card",
"to",
"Martha",
":",
"``",
"It",
"does",
"n't",
"seem",
"like",
"25",
"years",
"since",
"I",
"hit",
"that",
"home",
"run",
"to",
"celebrate",
"your",
"birth",
",",
"''",
"it",
"read",
".",
"Martha",
"was",
"pleased",
",",
"but",
"nowhere",
"near",
"as",
"much",
"as",
"Mr.",
"Engelken",
".",
"The",
"family",
"license",
"plate",
"reads",
"``",
"ENG",
"23",
",",
"''",
"the",
"first",
"three",
"letters",
"of",
"the",
"family",
"name",
"and",
"--",
"no",
"surprise",
"here",
"--",
"Bobby",
"Thomson",
"'s",
"uniform",
"number",
".",
"And",
"on",
"Mr.",
"Engelken",
"'s",
"40th",
"birthday",
",",
"his",
"wife",
"bought",
"a",
"book",
"detailing",
"the",
"big",
"homer",
"and",
"sent",
"it",
"off",
"to",
"Mr.",
"Thomson",
"to",
"be",
"autographed",
".",
"``",
"What",
"could",
"have",
"been",
"better",
"?",
"''",
"asks",
"Mr.",
"Engelken",
".",
"Betsy",
"Engelken",
"asked",
"the",
"same",
"question",
"earlier",
"this",
"year",
",",
"when",
"her",
"husband",
"was",
"about",
"to",
"turn",
"50",
".",
"She",
"had",
"an",
"idea",
".",
"On",
"her",
"husband",
"'s",
"50th",
"birthday",
"(",
"after",
"an",
"auspicious",
"23",
"years",
"of",
"marriage",
",",
"it",
"should",
"be",
"noted",
")",
",",
"Betsy",
",",
"Al",
"and",
"their",
"college-bound",
"son",
"set",
"out",
"for",
"New",
"York",
"to",
"visit",
"Fordham",
"University",
".",
"Mrs.",
"Engelken",
"had",
"scheduled",
"a",
"stop",
"on",
"the",
"New",
"Jersey",
"Turnpike",
"to",
",",
"she",
"told",
"her",
"husband",
",",
"pick",
"up",
"some",
"papers",
"for",
"a",
"neighbor",
".",
"The",
"papers",
"would",
"be",
"handed",
"over",
"at",
"a",
"bank",
"of",
"telephone",
"booths",
"just",
"off",
"Exit",
"10",
".",
"``",
"It",
"sounded",
"like",
"something",
"out",
"of",
"Ian",
"Fleming",
",",
"''",
"Mr.",
"Engelken",
"recalls",
".",
"At",
"the",
"appointed",
"exit",
",",
"the",
"family",
"pulled",
"over",
",",
"and",
"Mrs.",
"Engelken",
"went",
"to",
"get",
"her",
"papers",
".",
"Mr.",
"Engelken",
"turned",
"off",
"the",
"motor",
"and",
"rolled",
"down",
"the",
"window",
".",
"In",
"a",
"matter",
"of",
"minutes",
",",
"she",
"was",
"back",
",",
"with",
"a",
"tall",
",",
"silver-haired",
"man",
"in",
"tow",
".",
"She",
"crouched",
"down",
"by",
"the",
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",",
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",",
"``",
"Happy",
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",",
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",",
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",",
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",",
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",",
"``",
"fulfilling",
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",",
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"Engelken",
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"Albert",
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"''",
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",",
"Mr.",
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",",
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",",
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",",
"other",
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",",
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",",
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",",
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",",
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"Engelken",
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",",
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"What",
"a",
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"me",
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",",
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",",
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",",
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"Bluff",
",",
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",",
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"one",
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"`",
"Jurisprudence",
"'",
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".",
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"him",
"at",
"that",
"bank",
"of",
"telephone",
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"just",
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"10",
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"Jersey",
"Turnpike",
"."
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[
"Vickers",
"PLC",
",",
"a",
"British",
"aerospace",
",",
"defense",
"and",
"automotive",
"conglomerate",
",",
"said",
"it",
"reached",
"an",
"agreed",
"cash",
"bid",
"of",
"#",
"108.2",
"million",
"(",
"$",
"173.3",
"million",
")",
"for",
"Ross",
"Catherall",
"Group",
"PLC",
",",
"a",
"maker",
"of",
"specialty",
"alloy",
"and",
"ceramics",
".",
"The",
"company",
"said",
"it",
"expects",
"to",
"receive",
"acceptances",
"for",
"its",
"offer",
"of",
"253",
"pence",
"(",
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"4.05",
")",
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"67",
"%",
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"Catherall",
"'s",
"issued",
"share",
"capital",
",",
"or",
"12.7",
"million",
"ordinary",
"shares",
".",
"Vickers",
"said",
"its",
"offer",
"also",
"includes",
"an",
"option",
"to",
"receive",
"a",
"redeemable",
"loan",
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"in",
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"cash",
".",
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"can",
"be",
"redeemed",
"starting",
"in",
"July",
"1991",
".",
"The",
"company",
"said",
"its",
"acquisition",
"of",
"Ross",
"Catherall",
"will",
"be",
"covered",
"largely",
"by",
"cash",
"raised",
"in",
"its",
"July",
"disposal",
"of",
"Howson-Algraphy",
"for",
"#",
"241.7",
"million",
"."
] | [
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[
"When",
"Maj.",
"Moises",
"Giroldi",
",",
"the",
"leader",
"of",
"the",
"abortive",
"coup",
"in",
"Panama",
",",
"was",
"buried",
",",
"his",
"body",
"bore",
"several",
"gunshot",
"wounds",
",",
"a",
"cracked",
"skull",
"and",
"broken",
"legs",
"and",
"ribs",
".",
"They",
"were",
"the",
"signature",
"of",
"his",
"adversary",
",",
"Panamanian",
"leader",
"Manuel",
"Antonio",
"Noriega",
".",
"The",
"rebel",
"officer",
"'s",
"slow",
"and",
"painful",
"death",
",",
"at",
"the",
"headquarters",
"of",
"Panama",
"'s",
"Battalion-2000",
"squad",
",",
"was",
"personally",
"supervised",
"by",
"Gen.",
"Noriega",
",",
"says",
"a",
"U.S.",
"official",
"with",
"access",
"to",
"intelligence",
"reports",
".",
"Leaping",
"into",
"rages",
",",
"sinking",
"into",
"bouts",
"of",
"drunkenness",
"and",
"mistrust",
",",
"Mr.",
"Noriega",
"has",
"put",
"to",
"death",
"some",
"70",
"of",
"his",
"troops",
"involved",
"in",
"the",
"coup",
",",
"according",
"to",
"U.S.",
"officials",
"monitoring",
"crematoriums",
"and",
"funeral",
"parlors",
"in",
"Panama",
"City",
".",
"He",
"is",
"now",
"changing",
"the",
"place",
"he",
"sleeps",
"every",
"night",
",",
"sometimes",
"more",
"than",
"once",
"a",
"night",
".",
"His",
"meals",
"are",
"most",
"often",
"prepared",
"by",
"women",
"he",
"trusts",
"--",
"his",
"full-time",
"mistress",
",",
"Vicky",
"Amado",
",",
"and",
"her",
"mother",
",",
"Norma",
".",
"And",
"he",
"is",
"collecting",
"the",
"names",
"of",
"those",
"who",
"telephoned",
"the",
"coup-makers",
"to",
"congratulate",
"them",
"during",
"their",
"brief",
"time",
"in",
"control",
"of",
"his",
"headquarters",
".",
"More",
"enemies",
"to",
"be",
"dealt",
"with",
".",
"In",
"the",
"two",
"weeks",
"since",
"the",
"rebellion",
",",
"which",
"the",
"U.S.",
"hesitantly",
"backed",
",",
"Mr.",
"Noriega",
"has",
"been",
"at",
"his",
"most",
"brutal",
"-",
"and",
"efficient",
"-",
"in",
"maintaining",
"power",
".",
"Yet",
",",
"while",
"the",
"failed",
"coup",
"is",
"a",
"major",
"U.S.",
"foreign",
"policy",
"embarrassment",
",",
"it",
"is",
"merely",
"the",
"latest",
"chapter",
"in",
"a",
"byzantine",
"relationship",
"between",
"Mr.",
"Noriega",
"and",
"Washington",
"that",
"stretches",
"back",
"three",
"decades",
".",
"America",
"'s",
"war",
"on",
"the",
"dictator",
"over",
"the",
"past",
"two",
"years",
",",
"following",
"his",
"indictment",
"on",
"drug",
"charges",
"in",
"February",
"1988",
",",
"is",
"the",
"legacy",
"of",
"that",
"relationship",
".",
"Before",
"American",
"foreign",
"policy",
"set",
"out",
"to",
"destroy",
"Noriega",
",",
"it",
"helped",
"create",
"him",
"out",
"of",
"the",
"crucible",
"of",
"Panama",
"'s",
"long",
"history",
"of",
"conspirators",
"and",
"pirates",
".",
"For",
"most",
"of",
"the",
"past",
"30",
"years",
",",
"the",
"marriage",
"was",
"one",
"of",
"convenience",
".",
"In",
"1960",
",",
"for",
"example",
",",
"when",
"Mr.",
"Noriega",
"was",
"both",
"a",
"cadet",
"at",
"an",
"elite",
"military",
"academy",
"in",
"Peru",
"and",
"a",
"spy-in-training",
"for",
"the",
"U.S.",
"Defense",
"Intelligence",
"Agency",
",",
"he",
"was",
"detained",
"by",
"Lima",
"authorities",
"for",
"allegedly",
"raping",
"and",
"savagely",
"beating",
"a",
"prostitute",
",",
"according",
"to",
"a",
"U.S.",
"Embassy",
"cable",
"from",
"that",
"period",
".",
"The",
"woman",
"had",
"nearly",
"died",
".",
"But",
"U.S.",
"intelligence",
",",
"rather",
"than",
"rein",
"in",
"or",
"cut",
"loose",
"its",
"new",
"spy",
",",
"merely",
"filed",
"the",
"report",
"away",
".",
"Mr.",
"Noriega",
"'s",
"tips",
"on",
"emerging",
"leftists",
"at",
"his",
"school",
"were",
"deemed",
"more",
"important",
"to",
"U.S.",
"interests",
".",
"From",
"that",
"point",
"on",
",",
"the",
"U.S.",
"would",
"make",
"a",
"practice",
"of",
"overlooking",
"the",
"Panamanian",
"'s",
"misadventures",
".",
"The",
"U.S.",
"has",
"befriended",
"and",
"later",
"turned",
"against",
"many",
"dictators",
",",
"but",
"none",
"quite",
"so",
"resourceful",
".",
"The",
"55-year-old",
"Mr.",
"Noriega",
"is",
"n't",
"as",
"smooth",
"as",
"the",
"shah",
"of",
"Iran",
",",
"as",
"well-born",
"as",
"Nicaragua",
"'s",
"Anastasio",
"Somoza",
",",
"as",
"imperial",
"as",
"Ferdinand",
"Marcos",
"of",
"the",
"Philippines",
"or",
"as",
"bloody",
"as",
"Haiti",
"'s",
"Baby",
"Doc",
"Duvalier",
".",
"Yet",
"he",
"has",
"proved",
"more",
"resilient",
"than",
"any",
"of",
"them",
".",
"And",
"out",
"of",
"necessity",
":",
"The",
"U.S.",
"can",
"make",
"mistakes",
"and",
"still",
"hope",
"to",
"remove",
"him",
"from",
"power",
",",
"but",
"a",
"single",
"error",
"on",
"his",
"part",
"could",
"cost",
"him",
"his",
"life",
".",
"``",
"The",
"U.S.",
"underestimated",
"Noriega",
"all",
"along",
",",
"''",
"says",
"Ambler",
"Moss",
",",
"a",
"former",
"Ambassador",
"to",
"Panama",
".",
"``",
"He",
"has",
"mastered",
"the",
"art",
"of",
"survival",
".",
"''",
"In",
"keeping",
"with",
"America",
"'s",
"long",
"history",
"of",
"propping",
"up",
"Mr.",
"Noriega",
",",
"recent",
"U.S.",
"actions",
"have",
"extended",
"rather",
"than",
"shortened",
"his",
"survival",
".",
"Mr.",
"Noriega",
"might",
"have",
"fallen",
"of",
"his",
"own",
"weight",
"in",
"1988",
"because",
"of",
"Panama",
"'s",
"dire",
"economic",
"situation",
",",
"says",
"Mr.",
"Moss",
",",
"but",
"increasing",
"external",
"pressure",
"has",
"only",
"given",
"him",
"additional",
"excuses",
"for",
"repression",
",",
"and",
"a",
"scapegoat",
"for",
"his",
"own",
"mismanagement",
".",
"``",
"If",
"the",
"U.S.",
"had",
"sat",
"back",
"and",
"done",
"nothing",
",",
"he",
"might",
"not",
"have",
"made",
"it",
"through",
"1988",
",",
"''",
"Mr.",
"Moss",
"contends",
".",
"Perhaps",
"most",
"important",
",",
"Mr.",
"Noriega",
"'s",
"allies",
"have",
"intervened",
"to",
"encourage",
"--",
"in",
"some",
"cases",
",",
"to",
"demand",
"--",
"that",
"the",
"dictator",
"maintain",
"his",
"grip",
"of",
"the",
"throne",
".",
"One",
"Colombian",
"drug",
"boss",
",",
"upon",
"hearing",
"in",
"1987",
"that",
"Gen.",
"Noriega",
"was",
"negotiating",
"with",
"the",
"U.S.",
"to",
"abandon",
"his",
"command",
"for",
"a",
"comfortable",
"exile",
",",
"sent",
"him",
"a",
"hand-sized",
"mahogany",
"coffin",
"engraved",
"with",
"his",
"name",
".",
"``",
"He",
"is",
"cornered",
",",
"''",
"says",
"the",
"Rev.",
"Fernando",
"Guardia",
",",
"who",
"has",
"led",
"Catholic",
"Church",
"opposition",
"against",
"Noriega",
".",
"``",
"The",
"Americans",
"have",
"left",
"him",
"without",
"a",
"way",
"out",
".",
"It",
"is",
"easy",
"to",
"fight",
"when",
"you",
"do",
"n't",
"have",
"any",
"other",
"option",
".",
"''",
"His",
"chief",
"advantage",
"in",
"the",
"fight",
":",
"his",
"intimate",
"knowledge",
"of",
"American",
"ways",
"and",
"weaknesses",
".",
"Mr.",
"Noriega",
"often",
"tells",
"friends",
"that",
"patience",
"is",
"the",
"best",
"weapon",
"against",
"the",
"gringos",
",",
"who",
"have",
"a",
"short",
"attention",
"span",
"and",
"little",
"stomach",
"for",
"lasting",
"confrontation",
".",
"The",
"U.S.",
"discovered",
"the",
"young",
"Tony",
"Noriega",
"in",
"late",
"1959",
",",
"when",
"he",
"was",
"in",
"his",
"second",
"year",
"at",
"the",
"Chorrillos",
"Military",
"Academy",
"in",
"Lima",
",",
"according",
"to",
"former",
"U.S.",
"intelligence",
"officials",
".",
"The",
"contact",
"occurred",
"through",
"Mr.",
"Noriega",
"'s",
"half-brother",
",",
"a",
"Panamanian",
"diplomat",
"based",
"in",
"Peru",
"named",
"Luis",
"Carlos",
"Noriega",
"Hurtado",
".",
"Luis",
"Carlos",
",",
"knowing",
"that",
"helping",
"the",
"Americans",
"could",
"advance",
"the",
"career",
"of",
"any",
"Panamanian",
"officer",
",",
"relayed",
"Tony",
"'s",
"reports",
"on",
"the",
"leftist",
"tendencies",
"he",
"observed",
"among",
"his",
"fellow",
"students",
"and",
",",
"more",
"important",
",",
"among",
"his",
"officers",
"and",
"instructors",
".",
"A",
"spy",
"was",
"born",
".",
"It",
"was",
"a",
"heady",
"experience",
"for",
"the",
"pockmarked",
"and",
"slightly",
"built",
"Mr.",
"Noriega",
",",
"who",
"was",
"known",
"to",
"his",
"friends",
"as",
"Cara",
"la",
"Pina",
"--",
"pineapple",
"face",
".",
"Born",
"the",
"illegitimate",
"son",
"of",
"his",
"father",
"'s",
"maid",
",",
"he",
"was",
"raised",
"on",
"the",
"mean",
"streets",
"of",
"the",
"central",
"market",
"district",
"of",
"Panama",
"City",
".",
"Tony",
"was",
"four",
"years",
"older",
"than",
"most",
"of",
"his",
"fellow",
"cadets",
",",
"and",
"gained",
"admission",
"to",
"the",
"academy",
"because",
"his",
"brother",
"had",
"falsified",
"his",
"birth",
"certificate",
".",
"He",
"considered",
"himself",
"intellectually",
"superior",
"to",
"his",
"Peruvian",
"peers",
",",
"many",
"of",
"whom",
"were",
"wayward",
"sons",
"sent",
"by",
"their",
"well-off",
"families",
"to",
"the",
"highly",
"disciplined",
",",
"French-modeled",
"academy",
"as",
"a",
"sort",
"of",
"reform",
"school",
".",
"In",
"his",
"peaked",
"military",
"cap",
"and",
"neatly",
"pressed",
",",
"French-made",
"uniform",
",",
"Noriega",
"felt",
"more",
"respected",
"and",
"powerful",
"than",
"ever",
"in",
"his",
"underprivileged",
"life",
",",
"friends",
"from",
"the",
"period",
"say",
".",
"``",
"He",
"had",
"an",
"elegant",
"uniform",
"with",
"gold",
"buttons",
"in",
"a",
"country",
"where",
"there",
"was",
"a",
"cult",
"of",
"militarism",
",",
"where",
"officers",
"were",
"the",
"elite",
"with",
"special",
"privileges",
",",
"''",
"recalls",
"Darien",
"Ayala",
",",
"a",
"fellow",
"student",
"in",
"Peru",
"and",
"a",
"lifelong",
"friend",
".",
"Mr.",
"Noriega",
"'s",
"relationship",
"to",
"American",
"intelligence",
"agencies",
"became",
"contractual",
"in",
"either",
"1966",
"or",
"1967",
",",
"intelligence",
"officials",
"say",
".",
"His",
"commanding",
"officer",
"at",
"the",
"Chiriqui",
"Province",
"garrison",
",",
"Major",
"Omar",
"Torrijos",
",",
"gave",
"him",
"an",
"intriguing",
"assignment",
":",
"Mr.",
"Noriega",
"would",
"organize",
"the",
"province",
"'s",
"first",
"intelligence",
"service",
".",
"The",
"spy",
"network",
"would",
"serve",
"two",
"clients",
":",
"the",
"Panamanian",
"government",
",",
"by",
"monitoring",
"political",
"opponents",
"in",
"the",
"region",
",",
"and",
"the",
"U.S.",
",",
"by",
"tracking",
"the",
"growing",
"Communist",
"influence",
"in",
"the",
"unions",
"organized",
"at",
"United",
"Fruit",
"Co.",
"'s",
"banana",
"plantations",
"in",
"Bocas",
"del",
"Toros",
"and",
"Puerto",
"Armuelles",
".",
"United",
"Fruit",
"was",
"one",
"of",
"the",
"two",
"largest",
"contributors",
"to",
"Panama",
"'s",
"national",
"income",
".",
"Satisfying",
"its",
"interests",
"was",
"a",
"priority",
"for",
"any",
"Panamanian",
"leader",
".",
"Mr.",
"Noriega",
"'s",
"initial",
"retainer",
"was",
"only",
"$",
"50",
"to",
"$",
"100",
"a",
"month",
",",
"plus",
"occasional",
"gifts",
"of",
"liquor",
"or",
"groceries",
"from",
"the",
"American",
"PX",
",",
"a",
"former",
"intelligence",
"official",
"says",
".",
"It",
"was",
"modest",
"pay",
"by",
"American",
"standards",
",",
"but",
"a",
"healthy",
"boost",
"to",
"his",
"small",
"military",
"salary",
",",
"which",
"fellow",
"officers",
"remember",
"as",
"having",
"been",
"$",
"300",
"to",
"$",
"400",
"monthly",
".",
"``",
"He",
"did",
"it",
"very",
"well",
",",
"''",
"recalls",
"Boris",
"Martinez",
",",
"a",
"former",
"Panamanian",
"colonel",
"who",
"managed",
"Mr.",
"Noriega",
"and",
"his",
"operation",
".",
"``",
"He",
"started",
"building",
"the",
"files",
"that",
"helped",
"him",
"gain",
"power",
".",
"''",
"A",
"National",
"Guard",
"job",
"assumed",
"by",
"Capt.",
"Noriega",
"in",
"1964",
"--",
"as",
"chief",
"of",
"the",
"transit",
"police",
"in",
"David",
"City",
",",
"capital",
"of",
"the",
"Chiriqui",
"Province",
"--",
"was",
"tailor-made",
"for",
"an",
"aspiring",
"super-spy",
".",
"By",
"pressuring",
"taxi",
"and",
"bus",
"drivers",
"who",
"needed",
"licenses",
",",
"he",
"gained",
"a",
"ready",
"cache",
"of",
"information",
".",
"He",
"knew",
"which",
"local",
"luminaries",
"had",
"been",
"caught",
"driving",
"drunk",
",",
"which",
"had",
"been",
"found",
"with",
"their",
"mistresses",
".",
"This",
"proved",
"particularly",
"valuable",
"to",
"the",
"Panamanian",
"government",
"in",
"1967",
",",
"when",
"union",
"leaders",
"were",
"planning",
"a",
"May",
"Day",
"march",
"that",
"the",
"government",
"feared",
"could",
"turn",
"violent",
".",
"Mr.",
"Noriega",
"had",
"learned",
"that",
"a",
"local",
"union",
"leader",
"was",
"sleeping",
"with",
"the",
"wife",
"of",
"his",
"deputy",
".",
"So",
"he",
"splashed",
"the",
"information",
"on",
"handbills",
"that",
"he",
"distributed",
"throughout",
"the",
"banana-exporting",
"city",
"of",
"Puerto",
"Armuelles",
",",
"which",
"was",
"ruled",
"by",
"United",
"Fruit",
"Co",
".",
"The",
"campaign",
"so",
"divided",
"union",
"leaders",
"that",
"the",
"government",
"found",
"them",
"far",
"easier",
"to",
"control",
".",
"``",
"It",
"was",
"like",
"a",
"play",
"on",
"Broadway",
",",
"''",
"recalls",
"Mr.",
"Martinez",
".",
"``",
"Noriega",
"managed",
"the",
"whole",
"thing",
".",
"He",
"was",
"superb",
".",
"Noriega",
"was",
"an",
"expert",
"at",
"bribing",
"and",
"blackmailing",
"people",
".",
"''",
"During",
"his",
"years",
"in",
"Chiriqui",
",",
"however",
",",
"Mr.",
"Noriega",
"also",
"revealed",
"himself",
"as",
"an",
"officer",
"as",
"perverse",
"as",
"he",
"was",
"ingenious",
".",
"Rodrigo",
"Miranda",
",",
"a",
"local",
"lawyer",
"and",
"human-rights",
"monitor",
",",
"recalls",
"an",
"intoxicated",
"Noriega",
"visiting",
"prisoners",
"in",
"their",
"cells",
"at",
"the",
"5th",
"Zone",
"Garrison",
"headquarters",
"in",
"David",
",",
"where",
"he",
"had",
"his",
"offices",
".",
"Mr.",
"Noriega",
"would",
"order",
"them",
"all",
"to",
"take",
"off",
"their",
"clothes",
"and",
"run",
"around",
"the",
"courtyard",
"naked",
",",
"laughing",
"at",
"them",
"and",
"then",
"retreating",
"to",
"his",
"office",
".",
"``",
"People",
"started",
"wondering",
"if",
"something",
"was",
"wrong",
"with",
"him",
",",
"''",
"Mr.",
"Miranda",
"recalls",
".",
"But",
"through",
"this",
"period",
",",
"so",
"far",
"as",
"the",
"U.S.",
"military",
"was",
"concerned",
",",
"Mr.",
"Noriega",
"was",
"a",
"model",
"recruit",
".",
"He",
"signed",
"up",
"for",
"intelligence",
"and",
"counter-intelligence",
"training",
"under",
"American",
"officers",
"at",
"Fort",
"Gulick",
"in",
"Panama",
"in",
"July",
"1967",
",",
"according",
"to",
"a",
"copy",
"of",
"a",
"1983",
"resume",
"with",
"details",
"Mr.",
"Noriega",
"has",
"since",
"classified",
"as",
"secret",
".",
"He",
"flew",
"to",
"Fort",
"Bragg",
",",
"N.C.",
",",
"in",
"September",
"of",
"that",
"year",
"for",
"a",
"course",
"in",
"psychological",
"operations",
",",
"returning",
"to",
"the",
"School",
"of",
"the",
"Americas",
"in",
"Panama",
"for",
"a",
"two-month",
"course",
"called",
"``",
"military",
"intelligence",
"for",
"officers",
".",
"''",
"Some",
"American",
"officers",
"interpreted",
"his",
"eagerness",
"and",
"studiousness",
"as",
"a",
"sign",
"of",
"loyalty",
",",
"but",
"they",
"did",
"so",
"falsely",
".",
"He",
"rose",
"to",
"chief",
"of",
"intelligence",
"in",
"Panama",
"'s",
"socalled",
"G-2",
"in",
"1970",
"after",
"providing",
"populist",
"dictator",
"Torrijos",
"the",
"critical",
"support",
"to",
"defeat",
"a",
"coup",
"attempt",
"against",
"him",
"a",
"year",
"earlier",
".",
"He",
"became",
"Gen.",
"Torrijos",
"'s",
"inseparable",
"shadow",
",",
"and",
"the",
"holder",
"of",
"all",
"Panama",
"'s",
"secrets",
".",
"Mr.",
"Noriega",
",",
"by",
"now",
"a",
"lieutenant",
"colonel",
",",
"expanded",
"his",
"contacts",
"to",
"include",
"the",
"Cubans",
"--",
"not",
"to",
"mention",
"the",
"Israelis",
",",
"the",
"Taiwanese",
"and",
"any",
"other",
"intelligence",
"service",
"that",
"came",
"knocking",
".",
"When",
"U.S.",
"diplomats",
"complained",
"to",
"the",
"CIA",
"of",
"Col.",
"Noriega",
"'s",
"moonlighting",
",",
"intelligence",
"experts",
"always",
"insisted",
"that",
"his",
"allegiance",
"was",
"first",
"to",
"the",
"Americans",
".",
"``",
"Early",
"on",
"in",
"the",
"State",
"Department",
",",
"we",
"took",
"to",
"calling",
"him",
"the",
"rent-a-colonel",
",",
"in",
"tribute",
"to",
"his",
"ability",
"to",
"simultaneously",
"milk",
"the",
"antagonistic",
"intelligence",
"services",
"of",
"Cuba",
"and",
"the",
"United",
"States",
",",
"''",
"recalls",
"Francis",
"J.",
"McNeil",
",",
"who",
",",
"as",
"deputy",
"assistant",
"secretary",
"of",
"state",
"for",
"inter-American",
"affairs",
",",
"first",
"ran",
"across",
"reports",
"about",
"Mr.",
"Noriega",
"in",
"1977",
".",
"``",
"Some",
"of",
"us",
"wondered",
"how",
"our",
"intelligence",
"people",
"could",
"put",
"so",
"much",
"stock",
"in",
"his",
"information",
"when",
"he",
"was",
"just",
"as",
"close",
"to",
"the",
"Cubans",
".",
"''",
"Even",
"at",
"this",
"early",
"stage",
",",
"drugs",
"caused",
"additional",
"concerns",
".",
"During",
"the",
"Nixon",
"administration",
",",
"the",
"Drug",
"Enforcement",
"Administration",
"became",
"dismayed",
"at",
"the",
"extent",
"of",
"the",
"G-2",
"'s",
"connections",
"to",
"arrested",
"drug",
"traffickers",
".",
"One",
"DEA",
"agent",
"drew",
"up",
"a",
"list",
"of",
"five",
"options",
"for",
"dealing",
"with",
"Col.",
"Noriega",
",",
"one",
"of",
"which",
"was",
"assassination",
".",
"The",
"head",
"of",
"the",
"DEA",
"at",
"the",
"time",
",",
"John",
"Ingersoll",
",",
"scotched",
"the",
"assassination",
"plan",
".",
"But",
"he",
"did",
"fly",
"to",
"Panama",
"to",
"scold",
"dictator",
"Torrijos",
"on",
"the",
"drug",
"ties",
"of",
"Panamanian",
"officials",
",",
"including",
"Mr.",
"Noriega",
".",
"Mr.",
"Ingersoll",
"later",
"recalled",
"that",
"Gen.",
"Torrijos",
"seemed",
"afraid",
"to",
"act",
"on",
"the",
"concerns",
"of",
"the",
"U.S.",
".",
"``",
"Everybody",
"was",
"afraid",
"of",
"him",
",",
"''",
"Mr.",
"Ingersoll",
"says",
".",
"Mr.",
"Noriega",
"became",
"an",
"even",
"greater",
"threat",
"in",
"1976",
",",
"when",
"U.S.",
"intelligence",
"services",
"discovered",
"that",
"he",
"had",
"been",
"buying",
"recordings",
"of",
"electronically",
"monitored",
"conversations",
"from",
"three",
"sergeants",
"working",
"for",
"the",
"U.S.",
"Army",
"'s",
"470th",
"Military",
"Intelligence",
"Group",
".",
"The",
"tapes",
"included",
"wiretaps",
"of",
"Gen.",
"Torrijos",
"'s",
"own",
"phone",
",",
"according",
"to",
"American",
"intelligence",
"officials",
".",
"``",
"We",
"caught",
"him",
"with",
"his",
"hands",
"on",
"our",
"cookie",
"jar",
",",
"''",
"says",
"former",
"CIA",
"Director",
"Stansfield",
"Turner",
".",
"For",
"the",
"first",
"time",
",",
"the",
"U.S.",
"considered",
"cutting",
"Mr.",
"Noriega",
"from",
"its",
"intelligence",
"payroll",
"--",
"and",
"the",
"deliberations",
"were",
"intense",
",",
"Mr.",
"Turner",
"says",
".",
"``",
"In",
"the",
"world",
"of",
"intelligence",
",",
"if",
"you",
"want",
"to",
"get",
"information",
",",
"you",
"get",
"it",
"from",
"seedy",
"characters",
".",
"The",
"question",
"is",
"how",
"much",
"you",
"get",
"tied",
"in",
"with",
"seedy",
"characters",
"so",
"they",
"can",
"extort",
"you",
".",
"''",
"Intelligence",
"officials",
"to",
"this",
"day",
"worry",
"whether",
"Mr.",
"Noriega",
"sold",
"sensitive",
"information",
"on",
"the",
"recordings",
"to",
"the",
"Cubans",
"or",
"others",
".",
"Mr.",
"Turner",
"was",
"troubled",
"enough",
"to",
"cancel",
"the",
"U.S.",
"contract",
"with",
"the",
"rent-a-colonel",
"at",
"the",
"beginning",
"of",
"the",
"Carter",
"administration",
".",
"The",
"U.S.",
"soon",
"found",
"new",
"cause",
"for",
"concern",
":",
"gun-running",
".",
"Prosecutors",
"in",
"Southern",
"Florida",
"indicted",
"five",
"Panamanians",
"on",
"charges",
"of",
"illegally",
"running",
"arms",
"to",
"Sandinista",
"rebels",
"trying",
"to",
"overthrow",
"the",
"Nicaraguan",
"government",
"of",
"Mr.",
"Somoza",
".",
"They",
"included",
"one",
"of",
"Mr.",
"Noriega",
"'s",
"closest",
"friends",
"and",
"business",
"partners",
",",
"Carlos",
"Wittgreen",
".",
"And",
"the",
"investigators",
"were",
"quickly",
"closing",
"in",
"on",
"Mr.",
"Noriega",
"himself",
".",
"At",
"the",
"time",
",",
"though",
",",
"in",
"1979",
",",
"the",
"U.S.",
"was",
"once",
"again",
"flirting",
"with",
"its",
"longtime",
"Latin",
"American",
"spy",
".",
"Mr.",
"Noriega",
"made",
"plans",
"to",
"fly",
"to",
"Washington",
"for",
"a",
"meeting",
"with",
"his",
"counterpart",
"at",
"the",
"Pentagon",
".",
"Dade",
"County",
"and",
"federal",
"authorities",
",",
"learning",
"that",
"he",
"intended",
"to",
"fly",
"through",
"Miami",
",",
"made",
"plans",
"to",
"arrest",
"him",
"on",
"the",
"gun-running",
"charges",
"as",
"soon",
"as",
"he",
"hit",
"U.S.",
"soil",
".",
"It",
"was",
"a",
"Friday",
"in",
"June",
".",
"The",
"Pentagon",
"foiled",
"the",
"plan",
".",
"According",
"to",
"military",
"officers",
"at",
"the",
"time",
",",
"word",
"was",
"passed",
"to",
"Mr.",
"Noriega",
"by",
"his",
"American",
"hosts",
"that",
"the",
"police",
"would",
"be",
"waiting",
".",
"On",
"Monday",
",",
"U.S.",
"officials",
"received",
"a",
"routine",
",",
"unclassified",
"message",
"from",
"the",
"military",
"group",
"commander",
"in",
"Panama",
".",
"``",
"Due",
"to",
"health",
"reasons",
",",
"Lt.",
"Col.",
"Noriega",
"has",
"elected",
"to",
"postpone",
"his",
"visit",
"to",
"Washington",
",",
"''",
"it",
"read",
".",
"Prosecutors",
"in",
"Miami",
"received",
"yet",
"another",
"setback",
".",
"Their",
"original",
"indictment",
"against",
"Mr.",
"Wittgreen",
",",
"the",
"friend",
"of",
"Mr.",
"Noriega",
",",
"and",
"the",
"other",
"four",
"was",
"dismissed",
"on",
"a",
"technicality",
".",
"But",
"now",
",",
"along",
"with",
"reindicting",
"Mr.",
"Noriega",
"'s",
"pal",
",",
"they",
"intended",
"to",
"charge",
"Mr.",
"Noriega",
"himself",
",",
"on",
"allegations",
"that",
"he",
"was",
"involved",
"in",
"the",
"illegal",
"trading",
"of",
"some",
"$",
"2",
"million",
"in",
"arms",
".",
"In",
"January",
"1980",
",",
"Jerome",
"Sanford",
",",
"as",
"assistant",
"U.S.",
"attorney",
",",
"was",
"summoned",
"to",
"a",
"meeting",
"with",
"a",
"Federal",
"Bureau",
"of",
"Investigation",
"agent",
"assigned",
"to",
"the",
"Bureau",
"of",
"Alcohol",
",",
"Tobacco",
"and",
"Firearms",
"in",
"Miami",
".",
"Panamanian",
"dictator",
"Torrijos",
",",
"he",
"was",
"told",
",",
"had",
"granted",
"the",
"shah",
"of",
"Iran",
"asylum",
"in",
"Panama",
"as",
"a",
"favor",
"to",
"Washington",
".",
"Mr.",
"Sanford",
"was",
"told",
"Mr.",
"Noriega",
"'s",
"friend",
",",
"Mr.",
"Wittgreen",
",",
"would",
"be",
"handling",
"the",
"shah",
"'s",
"security",
".",
"It",
"would",
"n't",
"be",
"a",
"good",
"idea",
"to",
"indict",
"him",
"--",
"much",
"less",
"Mr.",
"Noriega",
",",
"the",
"prosecutor",
"was",
"told",
".",
"After",
"prodding",
"from",
"Mr.",
"Sanford",
",",
"U.S.",
"Attorney",
"Jack",
"Eskenazi",
"pleaded",
"with",
"Justice",
"Department",
"officials",
"in",
"Washington",
"to",
"let",
"the",
"indictment",
"proceed",
".",
"``",
"Unfortunately",
",",
"''",
"Mr.",
"Eskenazi",
"wrote",
"in",
"a",
"letter",
",",
"``",
"those",
"of",
"us",
"in",
"law",
"enforcement",
"in",
"Miami",
"find",
"ourselves",
"frequently",
"attempting",
"to",
"enforce",
"the",
"laws",
"of",
"the",
"United",
"States",
"but",
"simultaneously",
"being",
"caught",
"between",
"foreign",
"policy",
"considerations",
"over",
"which",
"we",
"have",
"no",
"control",
".",
"''",
"The",
"letter",
",",
"along",
"with",
"a",
"detailed",
"prosecution",
"memo",
",",
"sat",
"on",
"the",
"desks",
"of",
"Justice",
"officials",
"for",
"months",
"before",
"the",
"case",
"died",
"a",
"quiet",
"death",
".",
"``",
"I",
"think",
"if",
"we",
"had",
"been",
"allowed",
"to",
"go",
"ahead",
"then",
"we",
"would",
"n't",
"have",
"the",
"problems",
"we",
"have",
"now",
",",
"''",
"Mr.",
"Sanford",
"says",
".",
"``",
"If",
"he",
"had",
"been",
"found",
"guilty",
",",
"we",
"could",
"have",
"stopped",
"him",
".",
"''",
"In",
"August",
"1983",
",",
"Mr.",
"Noriega",
"took",
"over",
"as",
"General",
"and",
"de-facto",
"dictator",
"of",
"Panama",
",",
"having",
"maneuvered",
"his",
"way",
"to",
"the",
"top",
"only",
"two",
"years",
"after",
"the",
"mysterious",
"death",
"in",
"a",
"plane",
"crash",
"of",
"his",
"old",
"boss",
"Omar",
"Torrijos",
".",
"Soon",
",",
"the",
"military",
"became",
"a",
"veritable",
"mafia",
"controlling",
"legal",
"and",
"illegal",
"businesses",
".",
"The",
"Reagan",
"administration",
"also",
"put",
"Mr.",
"Noriega",
"'s",
"G-2",
"back",
"on",
"the",
"U.S.",
"payroll",
".",
"Payments",
"averaged",
"nearly",
"$",
"200,000",
"a",
"year",
"from",
"the",
"U.S.",
"Defense",
"Intelligence",
"Agency",
"and",
"the",
"CIA",
".",
"Although",
"working",
"for",
"U.S.",
"intelligence",
",",
"Mr.",
"Noriega",
"was",
"hardly",
"helping",
"the",
"U.S.",
"exclusively",
".",
"During",
"the",
"Reagan",
"years",
"he",
"expanded",
"his",
"business",
"and",
"intelligence",
"contacts",
"with",
"the",
"Cubans",
"and",
"the",
"Sandinistas",
".",
"He",
"allegedly",
"entered",
"into",
"Panama",
"'s",
"first",
"formal",
"business",
"arrangement",
"with",
"Colombian",
"drug",
"bosses",
",",
"according",
"to",
"Floyd",
"Carlton",
",",
"a",
"pilot",
"who",
"once",
"worked",
"for",
"Mr.",
"Noriega",
"and",
"who",
"testified",
"before",
"the",
"U.S.",
"grand",
"jury",
"in",
"Miami",
"that",
"would",
"ultimately",
"indict",
"the",
"Panamanian",
"on",
"drug",
"charges",
".",
"But",
"Mr.",
"Noriega",
"was",
"convinced",
"the",
"Reagan",
"White",
"House",
"would",
"n't",
"act",
"against",
"him",
",",
"recalls",
"his",
"close",
"ally",
"Jose",
"Blandon",
",",
"because",
"he",
"had",
"an",
"insurance",
"policy",
":",
"his",
"involvement",
"with",
"the",
"Contra",
"rebels",
"in",
"Nicaragua",
".",
"Mr.",
"Blandon",
"says",
"the",
"general",
"allowed",
"the",
"Contras",
"to",
"set",
"up",
"a",
"secret",
"training",
"center",
"in",
"Panama",
".",
"Mr.",
"Noriega",
"also",
"conveyed",
"intelligence",
"from",
"his",
"spy",
"operation",
"inside",
"the",
"Nicaraguan",
"capital",
"of",
"Managua",
".",
"And",
"on",
"at",
"least",
"one",
"occasion",
",",
"in",
"the",
"spring",
"of",
"1985",
",",
"he",
"helped",
"arrange",
"a",
"sabotage",
"attack",
"on",
"a",
"Sandinista",
"arsenal",
"in",
"Nicaragua",
".",
"Although",
",",
"his",
"help",
"for",
"the",
"Contra",
"cause",
"was",
"limited",
",",
"it",
"was",
"enough",
"to",
"win",
"him",
"important",
"protectors",
"in",
"the",
"Reagan",
"administration",
",",
"says",
"Sen.",
"Patrick",
"Leahy",
",",
"a",
"Vermont",
"Democrat",
"who",
"then",
"served",
"on",
"the",
"Senate",
"Intelligence",
"Committee",
".",
"``",
"Noriega",
"played",
"U.S.",
"intelligence",
"agencies",
"and",
"the",
"U.S.",
"government",
"like",
"a",
"violin",
",",
"''",
"he",
"says",
".",
"An",
"incident",
"in",
"1984",
"suggested",
"one",
"additional",
"means",
"by",
"which",
"Mr.",
"Noriega",
"might",
"have",
"maintained",
"such",
"influence",
"with",
"Washington",
"--",
"by",
"compromising",
"U.S.",
"officials",
".",
"Curtin",
"Windsor",
",",
"then",
"the",
"ambassador",
"to",
"Costa",
"Rica",
",",
"recalls",
"being",
"invited",
"to",
"Panama",
"by",
"Mr.",
"Noriega",
"'s",
"brother",
"Luis",
"Carlos",
"for",
"a",
"weekend",
"of",
"deep",
"sea",
"fishing",
"and",
"``",
"quiet",
",",
"serious",
"conversation",
"''",
"on",
"the",
"Aswara",
"Peninsula",
".",
"Mr.",
"Windsor",
"notified",
"Everett",
"E.",
"Briggs",
",",
"the",
"U.S.",
"ambassador",
"to",
"Panama",
",",
"of",
"the",
"invitation",
".",
"``",
"Briggs",
"screamed",
",",
"''",
"Mr.",
"Windsor",
"recalls",
".",
"He",
"says",
"Mr.",
"Briggs",
"told",
"him",
"he",
"was",
"being",
"set",
"up",
"for",
"a",
"``",
"honey",
"trap",
",",
"''",
"in",
"which",
"Mr.",
"Noriega",
"would",
"try",
"to",
"involve",
"him",
"in",
"an",
"orgy",
"and",
"then",
"record",
"the",
"event",
"``",
"with",
"sound",
"and",
"video",
".",
"''",
"Mr.",
"Briggs",
",",
"on",
"vacation",
"after",
"resigning",
"his",
"position",
"at",
"the",
"National",
"Security",
"Council",
",",
"could",
"n't",
"be",
"reached",
"for",
"comment",
".",
"As",
"Mr.",
"Noriega",
"'s",
"political",
"troubles",
"grew",
",",
"so",
"did",
"his",
"offers",
"of",
"assistance",
"to",
"the",
"Contras",
",",
"an",
"apparent",
"attempt",
"to",
"curry",
"more",
"favor",
"in",
"Washington",
".",
"For",
"instance",
",",
"he",
"helped",
"steal",
"the",
"May",
"1984",
"Panamanian",
"elections",
"for",
"the",
"ruling",
"party",
".",
"But",
"just",
"one",
"month",
"later",
",",
"he",
"also",
"contributed",
"$",
"100,000",
"to",
"a",
"Contra",
"leader",
",",
"according",
"to",
"documents",
"released",
"for",
"Oliver",
"North",
"'s",
"criminal",
"trial",
"in",
"Washington",
",",
"D.C",
".",
"Yet",
",",
"his",
"political",
"setbacks",
"mounted",
".",
"Mr.",
"Noriega",
"was",
"accused",
"of",
"ordering",
"in",
"1985",
"the",
"beheading",
"of",
"Hugo",
"Spadafora",
",",
"his",
"most",
"outspoken",
"political",
"opponent",
"and",
"the",
"first",
"man",
"to",
"publicly",
"finger",
"Mr.",
"Noriega",
"on",
"drug",
"trafficking",
"charges",
".",
"He",
"then",
"ousted",
"President",
"Nicholas",
"Ardito",
"Barletta",
",",
"a",
"former",
"World",
"Bank",
"official",
"with",
"close",
"ties",
"to",
"the",
"U.S.",
",",
"after",
"Mr.",
"Barletta",
"tried",
"to",
"create",
"a",
"commission",
"to",
"investigate",
"the",
"murder",
".",
"And",
",",
"all",
"the",
"while",
",",
"Panama",
"'s",
"debt",
"problems",
"continued",
"to",
"grow",
".",
"Mr.",
"Noriega",
"was",
"growing",
"desperate",
".",
"In",
"late",
"1986",
",",
"he",
"made",
"an",
"offer",
"he",
"thought",
"the",
"U.S.",
"could",
"n't",
"refuse",
".",
"As",
"recounted",
"in",
"a",
"stipulation",
"that",
"summarized",
"government",
"documents",
"released",
"for",
"the",
"North",
"trial",
",",
"Mr.",
"Noriega",
"offered",
"to",
"assassinate",
"the",
"Sandinista",
"leadership",
"in",
"exchange",
"``",
"for",
"a",
"promise",
"to",
"help",
"clean",
"up",
"Noriega",
"'s",
"image",
"and",
"a",
"commitment",
"to",
"lift",
"the",
"-LCB-",
"U.S.",
".",
"-RCB-",
"ban",
"on",
"military",
"sales",
"to",
"the",
"Panamanian",
"Defense",
"Forces",
".",
"''",
"``",
"North",
",",
"''",
"the",
"document",
"went",
"on",
",",
"referring",
"to",
"Oliver",
"North",
",",
"``",
"has",
"told",
"Noriega",
"'s",
"representative",
"that",
"U.S.",
"law",
"forbade",
"such",
"actions",
".",
"The",
"representative",
"responded",
"that",
"Noriega",
"had",
"numerous",
"assets",
"in",
"place",
"in",
"Nicaragua",
"and",
"could",
"accomplish",
"many",
"essential",
"things",
",",
"just",
"as",
"Noriega",
"had",
"helped",
"-LCB-",
"the",
"U.S.",
".",
"-RCB-",
"the",
"previous",
"year",
"in",
"blowing",
"up",
"a",
"Sandinista",
"arsenal",
".",
"''",
"Col.",
"North",
"conveyed",
"the",
"request",
"to",
"his",
"superiors",
"and",
"to",
"Assistant",
"Secretary",
"of",
"State",
"Elliot",
"Abrams",
",",
"who",
"relayed",
"it",
"to",
"Secretary",
"of",
"State",
"George",
"Shultz",
".",
"Mr.",
"Noriega",
"'s",
"proposal",
"was",
"turned",
"down",
".",
"And",
"Mr.",
"Shultz",
"curtly",
"told",
"Mr.",
"Abrams",
"that",
"the",
"general",
"should",
"be",
"told",
"that",
"only",
"he",
"could",
"repair",
"his",
"tarnished",
"image",
".",
"The",
"end",
"of",
"the",
"marriage",
"was",
"at",
"hand",
".",
"Within",
"weeks",
"the",
"unfolding",
"Iran-Contra",
"scandal",
"took",
"away",
"Mr.",
"Noriega",
"'s",
"insurance",
"policy",
".",
"The",
"death",
"of",
"CIA",
"Director",
"William",
"Casey",
"and",
"resignation",
"of",
"Oliver",
"North",
"allowed",
"anti-Noriega",
"political",
"forces",
"to",
"gain",
"influence",
".",
"Public",
"protests",
"against",
"him",
"were",
"triggered",
"in",
"June",
"1987",
"due",
"to",
"charges",
"by",
"Diaz",
"Herrera",
",",
"his",
"former",
"chief",
"of",
"staff",
",",
"that",
"Mr.",
"Noriega",
"had",
"stolen",
"the",
"1984",
"election",
"and",
"had",
"ordered",
"the",
"killing",
"of",
"Messrs.",
"Spadafora",
"and",
"Torrijos",
".",
"Few",
"American",
"officials",
"were",
"willing",
"any",
"longer",
"to",
"defend",
"him",
".",
"Lawyers",
"in",
"Miami",
"--",
"this",
"time",
"working",
"virtually",
"without",
"impediment",
"--",
"prepared",
"to",
"have",
"him",
"indicted",
"on",
"drug",
"charges",
"in",
"February",
"1988",
".",
"During",
"negotiations",
"with",
"American",
"officials",
"in",
"May",
"1988",
"over",
"proposals",
"to",
"drop",
"the",
"U.S.",
"indictments",
"in",
"exchange",
"for",
"his",
"resignation",
",",
"Mr.",
"Noriega",
"often",
"asked",
"almost",
"plaintively",
"how",
"the",
"Americans",
",",
"whom",
"he",
"had",
"helped",
"for",
"so",
"many",
"years",
",",
"could",
"turn",
"against",
"him",
".",
"Now",
",",
"neither",
"side",
"--",
"the",
"U.S.",
"nor",
"Mr.",
"Noriega",
"--",
"has",
"an",
"easy",
"out",
".",
"President",
"Bush",
"has",
"sworn",
"to",
"bring",
"him",
"to",
"justice",
".",
"Mr.",
"Noriega",
"believes",
"he",
"has",
"n't",
"any",
"alternative",
"but",
"to",
"continue",
"clutching",
"to",
"power",
".",
"It",
"is",
"a",
"knock-out",
"battle",
"--",
"perhaps",
"to",
"the",
"death",
".",
"In",
"the",
"end",
",",
"is",
"Mr.",
"Noriega",
"the",
"political",
"equivalent",
"of",
"Frankenstein",
"'s",
"monster",
",",
"created",
"by",
"a",
"well-intentioned",
"but",
"misguided",
"foreign",
"power",
"?",
"Not",
"quite",
",",
"Sen.",
"Leahy",
"contends",
".",
"``",
"For",
"short-term",
"gains",
",",
"people",
"were",
"willing",
"to",
"put",
"up",
"with",
"him",
".",
"That",
"allowed",
"him",
"to",
"get",
"stronger",
"and",
"stronger",
",",
"''",
"he",
"says",
".",
"``",
"I",
"do",
"n't",
"think",
"we",
"created",
"him",
"as",
"much",
"as",
"we",
"fed",
"him",
",",
"nurtured",
"him",
"and",
"let",
"him",
"grow",
"up",
"to",
"be",
"big",
"and",
"strong",
"."
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",",
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",",
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[
"Michelle",
"Pfeiffer",
"ca",
"n't",
"chew",
"gum",
"and",
"sing",
"at",
"the",
"same",
"time",
".",
"But",
"on",
"the",
"evidence",
"of",
"``",
"The",
"Fabulous",
"Baker",
"Boys",
",",
"''",
"that",
"may",
"be",
"the",
"only",
"thing",
"she",
"ca",
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"do",
",",
"at",
"least",
"when",
"she",
"'s",
"acting",
"in",
"movies",
".",
"As",
"the",
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",",
"slinky",
"lounge",
"chanteuse",
"in",
"``",
"The",
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",",
"''",
"Ms.",
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",",
"and",
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".",
"Her",
"Susie",
"Diamond",
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"the",
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"do",
",",
"like",
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"the",
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".",
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".",
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"is",
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",",
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",",
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".",
"Like",
"almost",
"everything",
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"wonderfully",
"romantic",
"and",
"edgy",
"movie",
",",
"Ms.",
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"'s",
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",",
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"stories",
"(",
"even",
"her",
"name",
",",
"Susie",
"Diamond",
",",
"sounds",
"like",
"a",
"character",
"Marilyn",
"Monroe",
"must",
"have",
"played",
")",
".",
"Yet",
"nothing",
"about",
"``",
"Baker",
"Boys",
",",
"''",
"and",
"certainly",
"nothing",
"about",
"Ms.",
"Pfeiffer",
",",
"really",
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"like",
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"from",
"the",
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"vault",
".",
"Steve",
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",",
"the",
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"and",
"director",
"(",
"he",
"is",
"n't",
"yet",
"30",
")",
",",
"has",
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"one",
"produced",
"picture",
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"his",
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";",
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"the",
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"for",
"``",
"Racing",
"With",
"the",
"Moon",
",",
"''",
"a",
"lovely",
"coming-of-age",
"picture",
"set",
"in",
"the",
"'40s",
".",
"Both",
"movies",
"are",
"infused",
"with",
"the",
"nostalgic",
"sensibility",
"of",
"someone",
"much",
"older",
",",
"someone",
"who",
"does",
"n't",
"dismiss",
"dreams",
",",
"but",
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"has",
"enough",
"experience",
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"see",
"his",
"limits",
".",
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",",
"Mr.",
"Kloves",
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"his",
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"without",
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"and",
"at",
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";",
"``",
"Baker",
"Boys",
"''",
"is",
"both",
"bluesy",
"and",
"funny",
".",
"He",
"'s",
"put",
"a",
"fresh",
"spin",
"on",
"material",
"that",
"could",
"come",
"off",
"terribly",
"cliched",
";",
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"example",
",",
"the",
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"Susie",
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"an",
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"the",
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"she",
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"Boys",
".",
"Of",
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",",
"it",
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"has",
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"with",
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"who",
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"exactly",
"what",
"they",
"'re",
"doing",
".",
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"the",
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"'s",
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"emerges",
"from",
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"Michael",
"Ballhaus",
"'s",
"slyly",
"seductive",
"lens",
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".",
"After",
"working",
"for",
"years",
"with",
"Werner",
"Rainer",
"Fassbinder",
",",
"the",
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"director",
",",
"and",
"more",
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"with",
"Martin",
"Scorsese",
"(",
"``",
"After",
"Hours",
",",
"''",
"``",
"The",
"Color",
"of",
"Money",
",",
"''",
"``",
"The",
"Last",
"Temptation",
"of",
"Christ",
"''",
")",
",",
"Mr.",
"Ballhaus",
"has",
"developed",
"a",
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"style",
".",
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"Dave",
"Grusin",
"'s",
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"score",
"embraces",
"the",
"banal",
"requirements",
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"banquet-hall",
"musicianship",
"(",
"``",
"Feelings",
"''",
"is",
"a",
"must",
")",
"without",
"condescension",
".",
"Though",
"Ms.",
"Pfeiffer",
"has",
"the",
"flashy",
"part",
"--",
"she",
"gets",
"the",
"best",
"comic",
"bits",
"and",
"to",
"wear",
"glamorous",
"dresses",
"and",
"spiked",
"heels",
"the",
"boys",
"are",
"pretty",
"great",
",",
"too",
".",
"What",
"seemed",
"like",
"a",
"good",
"idea",
",",
"to",
"cast",
"the",
"Bridges",
"brothers",
"(",
"Jeff",
"and",
"Beau",
")",
"as",
"the",
"Baker",
"brothers",
",",
"actually",
"turned",
"out",
"to",
"be",
"a",
"good",
"idea",
".",
"Anyone",
"who",
"'s",
"tried",
"to",
"appear",
"``",
"natural",
"''",
"in",
"front",
"of",
"a",
"camera",
"knows",
"that",
"it",
"'s",
"much",
"more",
"natural",
"to",
"end",
"up",
"looking",
"like",
"a",
"stiff",
".",
"So",
"it",
"'s",
"quite",
"possible",
"that",
"the",
"terrific",
"play",
"between",
"the",
"brothers",
"is",
"n't",
"natural",
"at",
"all",
",",
"that",
"Jeff",
"and",
"Beau",
"had",
"to",
"work",
"like",
"crazy",
"to",
"make",
"their",
"brotherly",
"love",
"--",
"and",
"resentment",
"and",
"frustration",
"and",
"rage",
"--",
"seem",
"so",
"very",
"real",
".",
"When",
"the",
"movie",
"opens",
"the",
"Baker",
"brothers",
"are",
"doing",
"what",
"they",
"'ve",
"done",
"for",
"15",
"years",
"professionally",
",",
"and",
"twice",
"as",
"long",
"as",
"that",
"for",
"themselves",
":",
"They",
"'re",
"playing",
"proficient",
"piano",
",",
"face-to-face",
",",
"on",
"twin",
"pianos",
".",
"They",
"'re",
"small",
"time",
"in",
"the",
"small",
"time-hotels",
"(",
"not",
"the",
"best",
"ones",
")",
"and",
"restaurants",
"in",
"Seattle",
".",
"Yet",
"they",
"do",
"n't",
"disparage",
"their",
"audiences",
"by",
"disparaging",
"their",
"act",
".",
"They",
"wear",
"tuxedos",
"most",
"nights",
",",
"unless",
"circumstances",
"(",
"a",
"regular",
"gig",
"at",
"a",
"``",
"tropical",
"''",
"lounge",
",",
"for",
"example",
")",
"require",
"them",
"to",
"wear",
"special",
"costumes",
",",
"like",
"Hawaiian",
"shirts",
".",
"Plump",
"Beau",
",",
"looking",
"eager",
"to",
"please",
"with",
"his",
"arched",
"eyebrows",
"and",
"round",
"face",
",",
"plays",
"the",
"older",
"brother",
",",
"Frank",
".",
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"plans",
"the",
"program",
",",
"takes",
"care",
"of",
"business",
",",
"and",
"approaches",
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"work",
"like",
"any",
"other",
"job",
".",
"He",
"'s",
"even",
"able",
"to",
"think",
"of",
"a",
"job",
"that",
"takes",
"him",
"out",
"of",
"the",
"house",
"300",
"nights",
"a",
"week",
"as",
"an",
"ordinary",
"job",
".",
"He",
"'s",
"got",
"a",
"wife",
"and",
"two",
"kids",
"and",
"a",
"house",
"in",
"the",
"suburbs",
";",
"the",
"audience",
"sees",
"only",
"the",
"house",
",",
"and",
"only",
"near",
"the",
"end",
"of",
"the",
"movie",
".",
"Frank",
"grovels",
"a",
"little",
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"the",
"bookers",
",",
"probably",
"no",
"more",
"or",
"less",
"than",
"he",
"would",
"have",
"to",
"if",
"he",
"worked",
"for",
"a",
"big",
"corporation",
".",
"On",
"his",
"off-hours",
"he",
"wears",
"cardigan",
"sweaters",
".",
"Jeff",
"Bridges",
"is",
"the",
"younger",
"brother",
",",
"Jack",
",",
"who",
"fancies",
"himself",
"the",
"rebellious",
"artist",
";",
"he",
"lives",
"in",
"a",
"loft",
"with",
"his",
"sick",
"dog",
"and",
"the",
"occasional",
"visit",
"from",
"the",
"little",
"girl",
"upstairs",
",",
"who",
"climbs",
"down",
"the",
"fire",
"escape",
".",
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"Jack",
"'s",
"the",
"one",
"who",
"can",
"remember",
"every",
"dive",
"they",
"ever",
"played",
",",
"and",
"when",
",",
"and",
"he",
"dutifully",
"shows",
"up",
"for",
"work",
"night",
"after",
"night",
"(",
"he",
"consoles",
"himself",
"with",
"booze",
"and",
"by",
"showing",
"up",
"at",
"the",
"last",
"minute",
")",
".",
"Looking",
"leaner",
"than",
"he",
"has",
"in",
"a",
"while",
",",
"the",
"younger",
"Mr.",
"Bridges",
"'s",
"Jack",
"is",
"sexy",
"and",
"cynical",
"and",
"a",
"far",
"sadder",
"case",
"than",
"Frank",
",",
"who",
"'s",
"managed",
"to",
"chisel",
"his",
"dreams",
"to",
"fit",
"reality",
"without",
"feeling",
"too",
"cheated",
".",
"He",
"can",
"live",
"with",
"little",
"pleasures",
".",
"Mr.",
"Kloves",
"has",
"put",
"together",
"some",
"priceless",
"moments",
".",
"These",
"include",
"Jennifer",
"Tilly",
"'s",
"audition",
"to",
"be",
"the",
"Baker",
"Boys",
"'",
"girl",
"singer",
".",
"Ms.",
"Tilly",
"of",
"the",
"tweety-bird",
"voice",
"showed",
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"comic",
"promise",
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",",
"``",
"Hill",
"Street",
"Blues",
".",
"''",
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"she",
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",",
"especially",
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"her",
"enthusiastically",
"awful",
"rendition",
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"``",
"Candy",
"Man",
",",
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"prancing",
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"candy",
"pink",
"angora",
"sweater",
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".",
"(",
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".",
")",
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"``",
"Making",
"Whoopee",
"''",
"--",
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"red",
"velvet",
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"--",
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"think",
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"had",
"n't",
"gone",
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"become",
"a",
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"her",
"own",
"right",
".",
"VIDEO",
"TIP",
":",
"If",
"you",
"'d",
"like",
"to",
"see",
"the",
"first",
"time",
"Michelle",
"Pfeiffer",
"sang",
"on",
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",",
"and",
"you",
"have",
"a",
"lot",
"of",
"patience",
",",
"take",
"a",
"look",
"at",
"``",
"Grease",
"2",
".",
"''",
"You",
"'ll",
"find",
"her",
"there",
".",
"Better",
"yet",
",",
"check",
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"the",
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"her",
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"persona",
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"``",
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"to",
"the",
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",",
"''",
"Jonathan",
"Demme",
"'s",
"delightful",
"Mafia",
"comedy",
"."
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"A",
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"After",
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",",
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"a",
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",",
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",",
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"$",
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"''",
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[
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"'d",
"like",
"to",
"see",
"that",
"initiative",
",",
"and",
"I",
"have",
"n't",
".",
"There",
"is",
"n't",
"a",
"big",
"shot",
",",
"an",
"agenda",
".",
"''",
"A",
"few",
"hours",
"later",
",",
"the",
"stock",
"market",
"dropped",
"190",
"points",
".",
"Politicians",
"tried",
"to",
"finger",
"each",
"other",
"for",
"the",
"blame",
",",
"although",
"many",
"analysts",
"doubt",
"that",
"Washington",
"was",
"singly",
"responsible",
"for",
"Wall",
"Street",
"'s",
"woes",
".",
"But",
"Mr.",
"Butcher",
"'s",
"comments",
"make",
"one",
"thing",
"clear",
":",
"Some",
"on",
"Wall",
"Street",
"wonder",
"if",
"anyone",
"is",
"in",
"charge",
"of",
"economic",
"policy",
".",
"Consider",
"this",
":",
"--",
"By",
"11:59",
"p.m.",
"tonight",
",",
"President",
"Bush",
"must",
"order",
"$",
"16",
"billion",
"of",
"automatic",
",",
"across-the-board",
"cuts",
"in",
"government",
"spending",
"to",
"comply",
"with",
"the",
"Gramm-Rudman",
"budget",
"law",
".",
"The",
"cuts",
"are",
"necessary",
"because",
"Congress",
"and",
"the",
"administration",
"have",
"failed",
"to",
"reach",
"agreement",
"on",
"a",
"deficit-cutting",
"bill",
".",
"``",
"We",
"simply",
"do",
"n't",
"have",
"strong",
"leadership",
"to",
"try",
"to",
"reduce",
"the",
"deficit",
"and",
"make",
"tough",
"choices",
",",
"''",
"House",
"Budget",
"Committee",
"Chairman",
"Leon",
"Panetta",
"(",
"D.",
",",
"Calif",
".",
")",
"said",
"yesterday",
"on",
"NBC",
"News",
"'s",
"``",
"Meet",
"the",
"Press",
".",
"''",
"--",
"For",
"the",
"last",
"two",
"weeks",
",",
"the",
"Bush",
"administration",
"and",
"the",
"Federal",
"Reserve",
"have",
"been",
"engaged",
"in",
"a",
"semi-public",
"battle",
"over",
"international",
"economic",
"policy",
".",
"The",
"administration",
"has",
"been",
"trying",
"to",
"push",
"the",
"dollar",
"lower",
";",
"the",
"Fed",
"has",
"been",
"resisting",
".",
"``",
"One",
"of",
"the",
"things",
"that",
"continues",
"to",
"worry",
"me",
"is",
"this",
"monetary",
"warfare",
"between",
"the",
"Treasury",
"Department",
"and",
"the",
"Federal",
"Reserve",
"Board",
",",
"''",
"said",
"Lawrence",
"Kudlow",
",",
"a",
"Bear",
",",
"Stearns",
"&",
"Co.",
"economist",
",",
"on",
"ABC",
"'s",
"``",
"This",
"Week",
".",
"''",
"--",
"The",
"administration",
"has",
"sent",
"out",
"confusing",
"signals",
"about",
"its",
"response",
"to",
"a",
"recent",
"spate",
"of",
"airline",
"takeovers",
".",
"Last",
"month",
",",
"Transportation",
"Secretary",
"Sam",
"Skinner",
"forced",
"Northwest",
"Airlines",
"to",
"reduce",
"a",
"stake",
"held",
"by",
"KLM",
"Royal",
"Dutch",
"Airlines",
".",
"But",
"he",
"has",
"since",
"run",
"into",
"opposition",
"from",
"the",
"Treasury",
"and",
"the",
"White",
"House",
"over",
"that",
"decision",
".",
"And",
"he",
"has",
"kept",
"mum",
"on",
"how",
"his",
"decision",
"might",
"affect",
"a",
"bid",
"for",
"United",
"Airlines",
",",
"which",
"includes",
"a",
"big",
"stake",
"by",
"British",
"Airways",
"PLC",
".",
"Some",
"analysts",
"say",
"uncertainty",
"about",
"Washington",
"'s",
"anti-takeover",
"policy",
"was",
"one",
"reason",
"that",
"financing",
"for",
"the",
"United",
"Airlines",
"takeover",
"fell",
"through",
"--",
"the",
"event",
"that",
"triggered",
"the",
"market",
"drop",
".",
"In",
"many",
"ways",
",",
"the",
"backdrop",
"to",
"Friday",
"'s",
"stock",
"decline",
"is",
"eerily",
"similar",
"to",
"that",
"of",
"October",
"1987",
"'s",
"508-point",
"crash",
".",
"Then",
",",
"as",
"now",
",",
"the",
"budget",
"debate",
"was",
"behind",
"schedule",
"and",
"automatic",
"spending",
"cuts",
"were",
"within",
"days",
"of",
"taking",
"hold",
".",
"The",
"Treasury",
"was",
"locked",
"in",
"a",
"battle",
"over",
"international",
"economic",
"policy",
",",
"although",
"at",
"that",
"time",
"it",
"was",
"with",
"West",
"German",
"officials",
"rather",
"than",
"the",
"Federal",
"Reserve",
".",
"And",
"concern",
"about",
"official",
"actions",
"aimed",
"at",
"takeovers",
"--",
"then",
"by",
"the",
"tax-writing",
"House",
"Ways",
"and",
"Means",
"Committee",
"rather",
"than",
"the",
"Transportation",
"Department",
"--",
"were",
"making",
"markets",
"nervous",
".",
"The",
"1987",
"crash",
"brought",
"the",
"Reagan",
"administration",
"and",
"Democratic",
"lawmakers",
"to",
"the",
"table",
"for",
"the",
"first",
"budget",
"summit",
",",
"resulting",
"in",
"a",
"two-year",
"plan",
"to",
"reduce",
"the",
"deficit",
"by",
"more",
"than",
"$",
"76",
"billion",
"--",
"even",
"though",
"the",
"deficit",
"actually",
"rose",
"by",
"nearly",
"$",
"12",
"billion",
"during",
"that",
"period",
".",
"But",
",",
"barring",
"further",
"drops",
"in",
"the",
"market",
"this",
"week",
",",
"a",
"similar",
"outcome",
"does",
"n't",
"seem",
"likely",
"this",
"year",
".",
"Lawmakers",
"and",
"administration",
"officials",
"agree",
"that",
"Friday",
"'s",
"drop",
",",
"by",
"itself",
",",
"is",
"n't",
"enough",
"to",
"force",
"both",
"sides",
"back",
"to",
"the",
"table",
"to",
"try",
"to",
"reach",
"a",
"deficit-reduction",
"agreement",
"that",
"would",
"be",
"more",
"serious",
"and",
"more",
"far-reaching",
"than",
"last",
"spring",
"'s",
"gimmick-ridden",
"plan",
",",
"which",
"still",
"is",
"n't",
"fully",
"implemented",
".",
"One",
"of",
"the",
"biggest",
"reasons",
"that",
"new",
"talks",
"are",
"n't",
"likely",
"to",
"come",
"about",
"is",
"that",
",",
"as",
"everyone",
"learned",
"in",
"1987",
",",
"the",
"economy",
"and",
"the",
"market",
"can",
"survive",
"a",
"one-day",
"508-point",
"tumble",
".",
"``",
"Everybody",
"thought",
"we",
"were",
"looking",
"at",
"a",
"repetition",
"of",
"1929",
",",
"that",
"we",
"were",
"looking",
"at",
"a",
"recession",
",",
"''",
"Rep.",
"Panetta",
"said",
"yesterday",
"in",
"an",
"interview",
".",
"``",
"That",
"did",
"not",
"happen",
".",
"They",
"learned",
"they",
"could",
"survive",
"it",
"without",
"much",
"problem",
".",
"''",
"But",
"administration",
"officials",
"privately",
"agree",
"with",
"Mr.",
"Panetta",
",",
"who",
"said",
"a",
"precipitous",
"drop",
"this",
"week",
"``",
"is",
"going",
"to",
"force",
"the",
"president",
"and",
"Congress",
"to",
"take",
"a",
"much",
"harder",
"look",
"at",
"fiscal",
"policy",
".",
"''",
"In",
"that",
"case",
",",
"there",
"will",
"be",
"plenty",
"of",
"blame",
"to",
"go",
"around",
".",
"``",
"There",
"is",
"an",
"underlying",
"concern",
"on",
"the",
"part",
"of",
"the",
"American",
"people",
"--",
"and",
"there",
"should",
"be",
"-",
"that",
"the",
"administration",
"has",
"not",
"gone",
"far",
"enough",
"in",
"cutting",
"this",
"deficit",
"and",
"that",
"Congress",
"has",
"been",
"unwilling",
"to",
"cut",
"what",
"the",
"administration",
"asked",
"us",
"to",
"cut",
",",
"''",
"said",
"Senate",
"Finance",
"Committee",
"Chairman",
"Lloyd",
"Bentsen",
"(",
"D.",
",",
"Texas",
")",
".",
"Nevertheless",
",",
"it",
"clearly",
"will",
"take",
"more",
"than",
"Friday",
"'s",
"190-point",
"decline",
"to",
"overcome",
"the",
"bitter",
"feelings",
"that",
"have",
"developed",
"between",
"lawmakers",
"and",
"White",
"House",
"Budget",
"Director",
"Richard",
"Darman",
"over",
"the",
"capital-gains",
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".",
"Hill",
"Democrats",
"are",
"particularly",
"angry",
"over",
"Mr.",
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"'s",
"claim",
"that",
"the",
"capital-gains",
"cut",
"was",
"part",
"of",
"April",
"'s",
"budget",
"accord",
"and",
"his",
"insistence",
"on",
"combining",
"it",
"with",
"the",
"deficit-reduction",
"legislation",
".",
"``",
"There",
"is",
"no",
"prospect",
"of",
"any",
"so-called",
"grand",
"compromise",
"or",
"deal",
"next",
"year",
"because",
"the",
"administration",
"simply",
"did",
"n't",
"live",
"up",
"to",
"this",
"year",
"'s",
"deal",
",",
"''",
"Senate",
"Majority",
"Leader",
"George",
"Mitchell",
"(",
"D.",
",",
"Maine",
")",
"said",
"yesterday",
"on",
"CBS",
"News",
"'s",
"``",
"Face",
"the",
"Nation",
".",
"''",
"During",
"last",
"week",
"'s",
"maneuverings",
"on",
"the",
"deficit-cutting",
"bill",
"and",
"the",
"capital-gains",
"issue",
",",
"there",
"were",
"signs",
"that",
"Senate",
"Republicans",
"and",
"the",
"administration",
"were",
"at",
"odds",
".",
"At",
"the",
"very",
"moment",
"that",
"Senate",
"Republicans",
"were",
"negotiating",
"a",
"deal",
"to",
"exclude",
"capital",
"gains",
"from",
"the",
"deficit-reduction",
"legislation",
",",
"White",
"House",
"spokesman",
"Marlin",
"Fitzwater",
"told",
"reporters",
"that",
"it",
"was",
"the",
"president",
"'s",
"policy",
"to",
"include",
"it",
".",
"When",
"an",
"agreement",
"was",
"reached",
"to",
"strip",
"capital",
"gains",
"from",
"the",
"legislation",
",",
"Oregon",
"Sen.",
"Bob",
"Packwood",
",",
"the",
"ranking",
"GOP",
"member",
"of",
"the",
"tax-writing",
"Senate",
"Finance",
"Committee",
",",
"hailed",
"it",
".",
"Asked",
"if",
"the",
"administration",
"agreed",
",",
"he",
"curtly",
"replied",
":",
"``",
"The",
"adminstration",
"will",
"have",
"to",
"speak",
"for",
"itself",
".",
"''",
"Friday",
"'s",
"market",
"tumble",
"could",
"spur",
"action",
"on",
"reconciling",
"the",
"House",
"and",
"Senate",
"versions",
"of",
"the",
"deficit-reduction",
"measure",
",",
"a",
"process",
"that",
"is",
"n't",
"expected",
"to",
"begin",
"until",
"tomorrow",
"at",
"the",
"soonest",
".",
"Senate",
"Republicans",
"expressed",
"the",
"hope",
"that",
"the",
"House",
"would",
"follow",
"the",
"lead",
"of",
"the",
"Senate",
",",
"which",
"on",
"Friday",
"agreed",
"to",
"drop",
"a",
"variety",
"of",
"spending",
"measures",
"and",
"tax",
"breaks",
"that",
"would",
"have",
"increased",
"the",
"fiscal",
"1990",
"deficit",
".",
"``",
"The",
"market",
"needs",
"a",
"strong",
"signal",
"that",
"we",
"'re",
"serious",
"about",
"deficit",
"reduction",
",",
"and",
"the",
"best",
"way",
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"do",
"that",
"is",
"for",
"the",
"House",
"of",
"Representatives",
"to",
"strip",
"their",
"bill",
"''",
"of",
"similar",
"provisions",
",",
"Sen.",
"Warren",
"Rudman",
"(",
"R.",
",",
"N.H",
".",
")",
".",
"said",
"yesterday",
".",
"The",
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"House",
"Office",
"of",
"Management",
"and",
"Budget",
",",
"whose",
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"determine",
"whether",
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",",
"estimated",
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"1990",
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"$",
"6.2",
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",",
"almost",
"half",
"of",
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"Congressional",
"Budget",
"Office",
"'s",
"estimate",
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"$",
"11.0",
"billion",
".",
"Rep.",
"Panetta",
"said",
"that",
"OMB",
"'s",
"figure",
"would",
"still",
"be",
"enough",
"to",
"avoid",
"permanent",
"across-the-board",
"cuts",
",",
"but",
"added",
":",
"``",
"We",
"'re",
"getting",
"very",
"close",
"to",
"the",
"margins",
"here",
".",
"''",
"No",
"one",
"in",
"Washington",
"was",
"willing",
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"take",
"the",
"blame",
"for",
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"Friday",
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"drop",
"in",
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"market",
".",
"But",
"some",
"players",
"were",
"quick",
"to",
"seize",
"the",
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".",
"Before",
"the",
"sun",
"had",
"set",
"on",
"Friday",
",",
"Richard",
"Rahn",
",",
"the",
"supply-side",
"chief",
"economist",
"of",
"the",
"U.S.",
"Chamber",
"of",
"Commerce",
",",
"issued",
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"statement",
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"the",
"drop",
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"prices",
"to",
"the",
"Senate",
"decision",
"to",
"postpone",
"action",
"on",
"capital",
"gains",
".",
"``",
"Investors",
",",
"who",
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"holding",
"assets",
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",",
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",",
"''",
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"``",
"There",
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",",
"''",
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"his",
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"appearance",
",",
"``",
"but",
"I",
"suggest",
"that",
"is",
"perhaps",
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"than",
"any",
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"supervised",
"NSC",
"staff",
"had",
"spun",
"out",
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"control",
"and",
"nearly",
"wrecked",
"President",
"Reagan",
"'s",
"second",
"term",
".",
"So",
",",
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"pursued",
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"Ford",
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",",
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"tried",
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"--",
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",",
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"views",
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"Department",
",",
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"and",
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";",
"serving",
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"broker",
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"distilling",
"that",
"information",
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"the",
"president",
"and",
"then",
"making",
"sure",
"presidential",
"decisions",
"are",
"carried",
"out",
".",
"The",
"Tower",
"Commission",
"specifically",
"said",
"that",
"the",
"NSC",
"staff",
"should",
"be",
"``",
"small",
"''",
"and",
"warned",
"against",
"letting",
"``",
"energetic",
"self-starters",
"''",
"like",
"Lt.",
"Col.",
"Oliver",
"North",
"strike",
"out",
"on",
"their",
"own",
"rather",
"than",
"leaving",
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",",
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"Intelligence",
"Agency",
".",
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",",
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"staff",
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",",
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".",
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"attempt",
"and",
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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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",",
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",",
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",",
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".",
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"and",
"chairman",
"of",
"the",
"Joint",
"Chiefs",
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"Staff",
"also",
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"unofficial",
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".",
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"the",
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",",
"shape",
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"role",
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"the",
"NSC",
"staff",
"have",
"been",
"left",
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"president",
"and",
"his",
"national",
"security",
"adviser",
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".",
"That",
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"one",
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".",
"In",
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"White",
"House",
",",
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",",
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"Panama",
"crisis",
".",
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"attempt",
"was",
"that",
"the",
"NSC",
"staffer",
"most",
"experienced",
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"America",
",",
"Everett",
"Briggs",
",",
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".",
"He",
"had",
"just",
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",",
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"a",
"feud",
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"Secretary",
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"State",
"Bernard",
"Aronson",
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"policy",
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"and",
"support",
"for",
"Nicaragua",
"'s",
"Contra",
"rebels",
".",
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"absence",
"of",
"Mr.",
"Briggs",
"underscored",
"the",
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"inadequacy",
"of",
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"current",
"NSC",
"staff",
".",
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",",
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",",
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".",
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".",
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".",
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"America",
",",
"the",
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".",
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"areas",
",",
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"one",
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"and",
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"State",
"Department",
"and",
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".",
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"NSC",
"adviser",
"has",
",",
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"Scowcroft",
"now",
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"what",
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",",
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",",
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[
"Japan",
"Air",
"Lines",
",",
"Lufthansa",
"German",
"Airlines",
"and",
"Air",
"France",
"reportedly",
"plan",
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"an",
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"air-freight",
"company",
"this",
"year",
",",
"a",
"move",
"that",
"could",
"further",
"consolidate",
"the",
"industry",
".",
"Japanese",
"newspaper",
"Nihon",
"Keizai",
"Shimbun",
"reported",
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"plan",
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"and",
"ground-cargo",
"and",
"air-cargo",
"systems",
".",
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"will",
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"a",
"total",
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"yen",
"(",
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"140",
"million",
")",
"in",
"the",
"venture",
",",
"whose",
"headquarters",
"would",
"be",
"in",
"France",
"or",
"West",
"Germany",
".",
"The",
"action",
"follows",
"Federal",
"Express",
"Corp.",
"'s",
"acquisition",
"of",
"Flying",
"Tiger",
"Line",
"Inc.",
"in",
"August",
".",
"After",
"that",
",",
"``",
"it",
"would",
"make",
"sense",
"for",
"airlines",
"to",
"talk",
"about",
"doing",
"things",
"jointly",
",",
"''",
"said",
"Cotton",
"Daly",
",",
"director",
"of",
"cargo",
"services",
"for",
"New",
"York",
"consulting",
"firm",
"Simat",
",",
"Helliesen",
"&",
"Eichner",
"Inc",
".",
"Mr.",
"Daly",
"said",
"such",
"discussions",
"are",
"motivated",
"by",
"the",
"competitive",
"threat",
"posed",
"by",
"Federal",
"Express",
",",
"United",
"Parcel",
"Service",
"of",
"America",
"Inc.",
"and",
"other",
"fast-growing",
"air-freight",
"companies",
".",
"Many",
"airlines",
"are",
"talking",
"about",
"cargo",
"ventures",
",",
"and",
"there",
"have",
"been",
"rumors",
"about",
"such",
"a",
"tie",
"between",
"JAL",
"and",
"European",
"airlines",
".",
"In",
"Tokyo",
",",
"a",
"JAL",
"spokesman",
"said",
"he",
"could",
"n't",
"confirm",
"or",
"deny",
"the",
"latest",
"Japanese",
"report",
".",
"But",
"he",
"said",
"JAL",
"is",
"talking",
"to",
"Lufthansa",
"and",
"Air",
"France",
"about",
"some",
"sort",
"of",
"cargo",
"venture",
".",
"``",
"It",
"is",
"just",
"one",
"of",
"a",
"number",
"of",
"strategies",
"JAL",
"has",
"embarked",
"upon",
"to",
"come",
"to",
"terms",
"with",
"the",
"situation",
"in",
"Europe",
"after",
"1992",
",",
"''",
"the",
"deadline",
"for",
"ending",
"trade",
"barriers",
"in",
"the",
"EC",
",",
"he",
"said",
".",
"In",
"Frankfurt",
",",
"a",
"Lufthansa",
"spokesman",
"confirmed",
"talks",
"are",
"under",
"way",
",",
"but",
"declined",
"to",
"comment",
".",
"A",
"Lufthansa",
"spokeswoman",
"in",
"Tokyo",
"said",
"the",
"head",
"of",
"Lufthansa",
"'s",
"cargo",
"operations",
"had",
"been",
"in",
"Toyko",
"last",
"week",
"for",
"talks",
"with",
"JAL",
".",
"In",
"Paris",
",",
"Air",
"France",
"declined",
"to",
"comment",
".",
"``",
"Nothing",
"is",
"defined",
"or",
"signed",
"at",
"this",
"point",
",",
"''",
"Mr.",
"Daly",
"said",
"of",
"the",
"talks",
".",
"Whatever",
"accord",
"the",
"three",
"carriers",
"reach",
",",
"he",
"said",
",",
"he",
"is",
"skeptical",
"it",
"would",
"create",
"a",
"separate",
"airline",
".",
"If",
"the",
"three",
"companies",
"pool",
"their",
"air-freight",
"businesses",
",",
"their",
"clout",
"would",
"be",
"considerable",
".",
"According",
"to",
"figures",
"from",
"the",
"International",
"Air",
"Transport",
"Association",
",",
"they",
"carried",
"a",
"combined",
"1.8",
"million",
"tons",
"of",
"freight",
"last",
"year",
".",
"Federal",
"Express",
"and",
"Flying",
"Tiger",
",",
"as",
"separate",
"companies",
",",
"carried",
"a",
"combined",
"2.6",
"million",
"tons",
".",
"Air",
"France",
"and",
"Lufthansa",
"last",
"month",
"concluded",
"a",
"far-reaching",
"cooperation",
"accord",
"that",
"includes",
"air-freight",
"activities",
".",
"They",
"plan",
"to",
"increase",
"cooperation",
"in",
"freight",
"ground-handling",
"and",
"create",
"a",
"world-wide",
"computer",
"system",
"to",
"process",
"cargo",
".",
"Other",
"airlines",
"would",
"have",
"access",
"to",
"the",
"system",
",",
"they",
"said",
",",
"and",
"negotiations",
"with",
"partners",
"were",
"already",
"under",
"way",
".",
"Both",
"European",
"airlines",
"operate",
"extensive",
"fleets",
"of",
"Boeing",
"747",
"freighters",
"and",
"747",
"Combis",
",",
"aircraft",
"that",
"carry",
"both",
"freight",
"and",
"passengers",
"on",
"the",
"main",
"deck",
".",
"They",
"currently",
"have",
"large",
"orders",
"for",
"cargo",
"planes",
".",
"Several",
"airlines",
",",
"including",
"Lufthansa",
",",
"JAL",
"and",
"Cathay",
"Pacific",
"Airways",
",",
"are",
"working",
"on",
"a",
"so-called",
"global",
"cargo",
"system",
"and",
"are",
"trying",
"to",
"attract",
"other",
"carriers",
"to",
"join",
",",
"Mr.",
"Daly",
"said",
".",
"JAL",
"also",
"has",
"signaled",
"it",
"is",
"looking",
"for",
"toeholds",
"in",
"Europe",
"before",
"the",
"end",
"of",
"1992",
".",
"Last",
"month",
",",
"the",
"carrier",
"said",
"it",
"wanted",
"to",
"lease",
"crews",
"and",
"planes",
"from",
"British",
"Airways",
"so",
"it",
"could",
"funnel",
"its",
"passengers",
"from",
"London",
"to",
"other",
"European",
"destinations",
".",
"British",
"Airways",
"said",
"it",
"has",
"n't",
"received",
"a",
"proposal",
"from",
"JAL",
".",
"But",
"last",
"week",
"there",
"were",
"air-traffic",
"negotiations",
"between",
"the",
"U.K.",
"and",
"Japan",
",",
"a",
"likely",
"first",
"step",
"to",
"any",
"commercial",
"agreement",
"between",
"JAL",
"and",
"British",
"Airways",
"or",
"another",
"U.K.",
"carrier",
"."
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"27",
"."
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"Co",
".",
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"&",
"H",
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"shares",
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"Brothers",
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".",
"Baldwin",
"Technology",
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",",
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"Upham",
"&",
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".",
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"250",
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"Liquid",
"Yield",
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"Lynch",
".",
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"--",
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",",
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"PaineWebber",
".",
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"Response",
"Corp.",
"--",
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"common",
"shares",
",",
"via",
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"Lynch",
".",
"Marsam",
"Pharmaceuticals",
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"--",
"1,300,000",
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"shares",
",",
"via",
"Smith",
"Barney",
",",
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"Upham",
".",
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"Titanium",
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"15",
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"shares",
",",
"via",
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"Brothers",
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".",
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"Inc.",
"--",
"4,631,400",
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"shares",
",",
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"Brothers",
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".",
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"--",
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"230",
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"bonds",
",",
"consolidated",
"loan",
"of",
"1989",
",",
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"D",
",",
"via",
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"bid",
".",
"Montgomery",
"County",
",",
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"--",
"$",
"75",
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"bonds",
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",",
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"B",
",",
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"River",
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",",
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"--",
"$",
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"system",
"improvement",
"revenue",
"bonds",
",",
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"1989",
",",
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"bid",
".",
"City",
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"Honolulu",
",",
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"--",
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"75",
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"bonds",
",",
"1989",
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"B",
",",
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"1993-2009",
",",
"via",
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"110",
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"center",
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",",
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",",
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",",
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".",
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"--",
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"revenue",
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6,
16,
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19,
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2,
23,
23,
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3,
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7,
15,
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17,
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22,
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16,
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22,
22,
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27,
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30,
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"John",
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"The",
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",",
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[
"A.F.",
"Sloan",
",",
"60",
"years",
"old",
",",
"announced",
"that",
"he",
"will",
"retire",
"next",
"April",
"as",
"chairman",
"and",
"chief",
"executive",
"officer",
"of",
"this",
"snack",
"food",
"and",
"bakery",
"products",
"maker",
".",
"No",
"replacement",
"was",
"immediately",
"named",
".",
"Mr.",
"Sloan",
"plans",
"to",
"remain",
"on",
"the",
"board",
"until",
"his",
"current",
"term",
"expires",
"in",
"April",
"1991",
",",
"a",
"Lance",
"spokesman",
"said",
"."
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[
"Law",
"firms",
"that",
"have",
"feasted",
"and",
"grown",
"on",
"the",
"revenue",
"from",
"mergers",
"and",
"acquisitions",
"work",
"are",
"feeling",
"the",
"squeeze",
"as",
"that",
"work",
"declines",
".",
"The",
"disarray",
"in",
"the",
"junk-bond",
"market",
"that",
"began",
"last",
"month",
"with",
"a",
"credit",
"crunch",
"at",
"Campeau",
"Corp.",
"and",
"the",
"failure",
"of",
"banks",
"to",
"deliver",
"financing",
"for",
"a",
"leveraged",
"buy-out",
"of",
"United",
"Airlines",
"parent",
"UAL",
"Corp.",
"has",
"reverberated",
"through",
"some",
"of",
"the",
"nation",
"'s",
"largest",
"law",
"firms",
".",
"While",
"it",
"is",
"still",
"too",
"early",
"to",
"tell",
"whether",
"the",
"dearth",
"of",
"takeover",
"activity",
"is",
"only",
"temporary",
",",
"many",
"lawyers",
"say",
"their",
"firms",
"are",
"bracing",
"for",
"lower",
"revenue",
"from",
"merger",
"work",
",",
"which",
"has",
"been",
"so",
"lucrative",
"in",
"the",
"past",
".",
"Much",
"of",
"this",
"work",
"was",
"done",
"for",
"higher",
"fees",
"than",
"other",
"legal",
"work",
"and",
"was",
"not",
"generally",
"billed",
"by",
"the",
"hour",
".",
"If",
"deals",
"take",
"longer",
"to",
"complete",
"and",
"there",
"are",
"fewer",
"of",
"them",
"to",
"do",
",",
"``",
"you",
"ca",
"n't",
"bill",
"the",
"same",
"kind",
"of",
"premium",
"as",
"when",
"deals",
"took",
"a",
"few",
"weeks",
"from",
"start",
"to",
"finish",
",",
"''",
"says",
"one",
"lawyer",
"at",
"a",
"large",
"New",
"York",
"firm",
".",
"``",
"We",
"'re",
"planning",
"on",
"a",
"rip-roaring",
"year",
"in",
"1989",
",",
"but",
"next",
"year",
"we",
"'ll",
"be",
"another",
"story",
",",
"''",
"said",
"Robert",
"Freedman",
",",
"a",
"partner",
"at",
"Simpson",
"Thacher",
"&",
"Bartlett",
".",
"``",
"We",
"'re",
"settling",
"down",
"to",
"a",
"less",
"active",
"period",
".",
"''",
"Lawyers",
"at",
"such",
"firms",
"as",
"Sullivan",
"&",
"Cromwell",
";",
"Willkie",
"Farr",
"&",
"Gallagher",
";",
"Wachtell",
",",
"Lipton",
",",
"Rosen",
"&",
"Katz",
";",
"and",
"Fried",
",",
"Frank",
",",
"Harris",
",",
"Shriver",
"&",
"Jacobson",
"all",
"say",
"they",
",",
"too",
",",
"have",
"experienced",
"a",
"significant",
"slowdown",
",",
"particularly",
"during",
"the",
"past",
"few",
"weeks",
".",
"``",
"Everyone",
"is",
"waiting",
"to",
"see",
"if",
"deals",
"can",
"be",
"done",
"at",
"sensible",
"prices",
"and",
"if",
"money",
"is",
"available",
",",
"''",
"said",
"Jack",
"Nusbaum",
",",
"co-chairman",
"of",
"Willkie",
"Farr",
".",
"``",
"It",
"'s",
"hard",
"to",
"know",
"right",
"now",
"if",
"the",
"change",
"is",
"fundamental",
"or",
"cyclical",
".",
"''",
"Some",
"lawyers",
"say",
"the",
"slump",
",",
"while",
"more",
"obvious",
"in",
"recent",
"weeks",
",",
"began",
"earlier",
"this",
"year",
".",
"Dennis",
"Block",
",",
"a",
"partner",
"at",
"the",
"New",
"York",
"firm",
"of",
"Weil",
",",
"Gotshal",
"&",
"Manges",
",",
"said",
"that",
"in",
"the",
"first",
"eight",
"months",
"of",
"this",
"year",
",",
"89",
"hostile",
"offers",
"were",
"launched",
",",
"compared",
"with",
"157",
"for",
"the",
"first",
"eight",
"months",
"of",
"What",
"'s",
"more",
",",
"he",
"said",
",",
"``",
"transactions",
"are",
"taking",
"a",
"much",
"longer",
"time",
"to",
"conclude",
"and",
"many",
"fall",
"apart",
"for",
"lack",
"of",
"financing",
"''",
"and",
"more",
"stringent",
"scrutiny",
"by",
"state",
"courts",
".",
"Lawyers",
"also",
"say",
"an",
"erratic",
"stock",
"market",
"and",
"uncertain",
"financing",
"conditions",
"have",
"sharply",
"reduced",
"the",
"number",
"of",
"lucrative",
"big",
"deals",
"likely",
"to",
"be",
"proposed",
".",
"Still",
",",
"some",
"lawyers",
"say",
"the",
"mergers",
"slowdown",
"has",
"n't",
"affected",
"foreign",
"buyers",
"as",
"much",
"as",
"domestic",
"ones",
".",
"``",
"We",
"just",
"took",
"another",
"floor",
"for",
"our",
"London",
"offices",
",",
"''",
"said",
"Joseph",
"Flom",
"of",
"the",
"New",
"York",
"firm",
"of",
"Skadden",
",",
"Arps",
",",
"Slate",
",",
"Meagher",
"&",
"Flom",
".",
"Davis",
"Polk",
"&",
"Wardwell",
"also",
"said",
"its",
"international",
"clients",
"are",
"keeping",
"mergers",
"and",
"acquisitions",
"partners",
"busy",
".",
"``",
"European",
"companies",
"are",
"looking",
"to",
"buy",
"American",
"ones",
",",
"''",
"said",
"Henry",
"King",
",",
"the",
"managing",
"partner",
"at",
"that",
"firm",
".",
"``",
"But",
"the",
"question",
"is",
"whether",
"things",
"people",
"are",
"looking",
"at",
"will",
"actually",
"surface",
"in",
"live",
"transactions",
"in",
"light",
"of",
"the",
"current",
"market",
"conditions",
".",
"''",
"MURDER",
"THREAT",
"charged",
"in",
"Haas",
"Securities",
"Corp",
".",
"stock-manipulation",
"trial",
".",
"In",
"the",
"trial",
"of",
"former",
"Haas",
"Securities",
"Chairman",
"Eugene",
"Laff",
",",
"the",
"defense",
"accused",
"one",
"of",
"the",
"government",
"'s",
"chief",
"witnesses",
"of",
"threatening",
"to",
"kill",
"Mr.",
"Laff",
".",
"Mr.",
"Laff",
"'s",
"attorney",
",",
"John",
"Lang",
",",
"filed",
"a",
"memorandum",
"asking",
"that",
"the",
"trial",
"record",
"include",
"a",
"secretly",
"taped",
"conversation",
"in",
"which",
"the",
"witness",
",",
"Henry",
"Lorin",
",",
"told",
"a",
"Haas",
"stockbroker",
"that",
"Mr.",
"Laff",
"should",
"be",
"killed",
".",
"The",
"conversation",
"was",
"taped",
"by",
"federal",
"investigators",
"in",
"what",
"Mr.",
"Lang",
"said",
"was",
"an",
"effort",
"to",
"get",
"Mr.",
"Lorin",
"to",
"implicate",
"Mr.",
"Laff",
".",
"In",
"his",
"opening",
"arguments",
"last",
"week",
"in",
"federal",
"court",
"in",
"New",
"York",
",",
"Mr.",
"Lang",
"told",
"the",
"jury",
"that",
"Mr.",
"Lorin",
"was",
"the",
"``",
"real",
"master",
"criminal",
"''",
"behind",
"the",
"stock",
"manipulation",
",",
"and",
"that",
"Mr.",
"Laff",
"knew",
"nothing",
"about",
"it",
".",
"In",
"March",
",",
"Mr.",
"Laff",
"was",
"indicted",
"on",
"15",
"counts",
"of",
"conspiracy",
",",
"mail",
"and",
"securities",
"fraud",
",",
"and",
"obstructing",
"an",
"investigation",
"by",
"the",
"Securities",
"and",
"Exchange",
"Commission",
".",
"The",
"government",
"has",
"charged",
"that",
"Mr.",
"Lorin",
"and",
"Mr.",
"Laff",
"were",
"part",
"of",
"a",
"conspiracy",
"to",
"maintain",
"the",
"prices",
"of",
"certain",
"stocks",
"at",
"artificially",
"high",
"prices",
".",
"Mr.",
"Lorin",
",",
"a",
"stock",
"promoter",
",",
"pleaded",
"guilty",
"to",
"the",
"stock-manipulation",
"charges",
"in",
"April",
"and",
"agreed",
"to",
"cooperate",
"with",
"the",
"government",
"'s",
"investigation",
"of",
"Mr.",
"Laff",
".",
"During",
"his",
"cross",
"examination",
"of",
"Mr.",
"Lorin",
",",
"Mr.",
"Lang",
"read",
"from",
"the",
"transcripts",
"of",
"a",
"conversation",
"that",
"was",
"taped",
"Oct.",
"20",
",",
"1988",
".",
"Stanley",
"Aslanian",
",",
"the",
"Haas",
"broker",
"who",
"agreed",
"to",
"carry",
"a",
"hidden",
"microphone",
"during",
"the",
"conversation",
",",
"also",
"has",
"pleaded",
"guilty",
"to",
"conspiracy",
"to",
"commit",
"securities",
"violations",
"in",
"the",
"stock",
"manipulation",
"and",
"agreed",
"to",
"cooperate",
".",
"According",
"to",
"the",
"transcript",
",",
"Mr.",
"Lorin",
"said",
"Mr.",
"Laff",
"should",
"be",
"killed",
"after",
"Mr.",
"Aslanian",
"told",
"him",
"that",
"information",
"given",
"to",
"Mr.",
"Laff",
"by",
"another",
"conspirator",
"could",
"jeopardize",
"the",
"stock",
"scheme",
".",
"Mr.",
"Lorin",
"then",
"repeated",
"the",
"threat",
",",
"and",
"Mr.",
"Aslanian",
"urged",
"him",
"not",
"to",
"say",
"such",
"things",
".",
"From",
"the",
"parts",
"of",
"the",
"transcript",
"read",
"by",
"Mr.",
"Lang",
",",
"it",
"was",
"unclear",
"what",
"exactly",
"Mr.",
"Lorin",
"feared",
"might",
"happen",
".",
"When",
"asked",
"for",
"a",
"copy",
"of",
"the",
"transcript",
",",
"Mr.",
"Lang",
"said",
"Judge",
"Thomas",
"P.",
"Griesa",
"had",
"instructed",
"him",
"not",
"to",
"release",
"it",
"or",
"the",
"memorandum",
".",
"During",
"the",
"trial",
",",
"Mr.",
"Lang",
"asked",
"Mr.",
"Lorin",
"whether",
"he",
"had",
"been",
"so",
"upset",
"``",
"that",
"you",
"considered",
"killing",
"Mr.",
"Laff",
"?",
"...",
"Is",
"n't",
"it",
"true",
"that",
"you",
"were",
"so",
"worked",
"up",
"that",
"framing",
"Mr.",
"Laff",
"for",
"this",
"crime",
"was",
"the",
"least",
"that",
"you",
"planned",
"for",
"him",
"?",
"''",
"Mr.",
"Lorin",
"responded",
",",
"``",
"No",
".",
"''",
"When",
"Mr.",
"Lang",
"asked",
"Mr.",
"Lorin",
"whether",
"he",
"had",
"taken",
"steps",
"to",
"have",
"Mr.",
"Laff",
"killed",
",",
"the",
"witness",
"again",
"said",
"no",
".",
"Peter",
"Lieb",
",",
"the",
"assistant",
"U.S.",
"attorney",
"prosecuting",
"the",
"case",
",",
"declined",
"to",
"comment",
"on",
"the",
"trial",
".",
"TRUSTEE",
"WHO",
"MONITORED",
"settlement",
"payments",
"to",
"Dalkon",
"Shield",
"claimants",
"quits",
".",
"Stephen",
"A.",
"Saltzburg",
",",
"one",
"of",
"five",
"trustees",
"appointed",
"to",
"monitor",
"payments",
"to",
"women",
"injured",
"by",
"the",
"Dalkon",
"Shield",
"intrauterine",
"contraceptive",
",",
"resigned",
",",
"citing",
"personal",
"reasons",
".",
"Mr.",
"Saltzburg",
",",
"who",
"teaches",
"evidence",
"at",
"the",
"University",
"of",
"Virginia",
"School",
"of",
"Law",
"and",
"was",
"a",
"deputy",
"assistant",
"attorney",
"general",
"in",
"the",
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"until",
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",",
"submitted",
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"Robert",
"R.",
"Merhige",
"Jr.",
",",
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",",
"Va",
".",
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"Merhige",
"is",
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"reorganization",
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"A.H.",
"Robins",
"Co.",
",",
"the",
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"the",
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".",
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"Saltzburg",
",",
"the",
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"said",
"he",
"would",
"``",
"reluctantly",
"''",
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".",
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"2.38",
"billion",
"Dalkon",
"Shield",
"Claimants",
"Trust",
"was",
"established",
"as",
"part",
"of",
"A.H.",
"Robins",
"'",
"bankruptcy-reorganization",
"plan",
"to",
"resolve",
"injury",
"claims",
"arising",
"from",
"use",
"of",
"the",
"shield",
".",
"American",
"Home",
"Products",
"Corp.",
"proposes",
"to",
"acquire",
"the",
"company",
".",
"The",
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"four",
"trustees",
"on",
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"Trust",
"have",
"60",
"days",
"to",
"nominate",
"a",
"successor",
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"Saltzburg",
".",
"Judge",
"Merhige",
"will",
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".",
"CHICAGO",
"LAW",
"FIRM",
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"Express",
"Co.",
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"president",
":",
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"Harris",
"&",
"Slavin",
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"in",
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"A.",
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"a",
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",",
"D.C.",
",",
"office",
",",
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"opened",
"Oct.",
"1",
".",
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"past",
"six",
"years",
",",
"Mr.",
"Menell",
",",
"43",
"years",
"old",
",",
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"as",
"vice",
"president",
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"affairs",
"at",
"American",
"Express",
".",
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"previously",
"was",
"staff",
"director",
"and",
"counsel",
"for",
"the",
"Senate",
"committee",
"on",
"banking",
",",
"housing",
"and",
"urban",
"affairs",
".",
"The",
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"lawyer",
"in",
"the",
"office",
"is",
"partner",
"Robert",
"A.",
"Macari",
",",
"the",
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"'s",
"legislative",
"director",
".",
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"firm",
"of",
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",",
"Spahr",
",",
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"&",
"Ingersoll",
"said",
"three",
"partners",
"have",
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".",
"John",
"Ake",
",",
"48",
",",
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"compliance",
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"Capital",
"Management",
"&",
"Research",
"Inc.",
",",
"in",
"Houston",
",",
"will",
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"Spahr",
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"practice",
".",
"Kent",
"Walker",
",",
"45",
",",
"a",
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"partner",
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"Mesirov",
",",
"Gelman",
",",
"Jaffe",
",",
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"&",
"Jamieson",
",",
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"in",
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",",
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".",
"Richard",
"L.",
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",",
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",",
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",",
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",",
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"division",
"of",
"Ebasco",
",",
"a",
"subsidiary",
"of",
"Enserch",
"Corp.",
",",
"have",
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"the",
"first",
"250-megawatt",
"phase",
"of",
"the",
"project",
",",
"which",
"they",
"expect",
"to",
"complete",
"in",
"late",
"1990",
".",
"The",
"second",
"portion",
"will",
"be",
"completed",
"the",
"following",
"year",
".",
"GE",
"'s",
"Power",
"Generation",
"subsidiary",
"will",
"operate",
"and",
"maintain",
"the",
"plant",
"upon",
"its",
"completion",
"."
] | [
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[
"Sony",
"Corp.",
",",
"New",
"York",
",",
"said",
"its",
"bids",
"for",
"Columbia",
"Pictures",
"Entertainment",
"Inc.",
"and",
"Guber-Peters",
"Entertainment",
"Co.",
"have",
"been",
"cleared",
"by",
"federal",
"antitrust",
"regulators",
".",
"The",
"Japanese",
"company",
"said",
"the",
"waiting",
"period",
"under",
"the",
"Hart-Scott-Rodino",
"antitrust",
"act",
"for",
"the",
"$",
"3.4",
"billion",
"bid",
"for",
"Columbia",
"and",
"the",
"$",
"200",
"million",
"offer",
"for",
"Guber-Peters",
"expired",
"Monday",
".",
"Sony",
"has",
"agreed",
"to",
"buy",
"both",
"companies",
",",
"but",
"is",
"in",
"a",
"legal",
"battle",
"with",
"Warner",
"Communications",
"Inc.",
"over",
"the",
"services",
"of",
"producers",
"Peter",
"Guber",
"and",
"Jon",
"Peters",
".",
"In",
"a",
"filing",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
",",
"Sony",
"also",
"said",
"two",
"more",
"suits",
"have",
"been",
"filed",
"opposing",
"the",
"company",
"'s",
"agreement",
"to",
"buy",
"Columbia",
".",
"Sony",
"added",
"that",
"a",
"hearing",
"has",
"been",
"set",
"for",
"Thursday",
"in",
"the",
"Delaware",
"Chancery",
"Court",
"in",
"one",
"of",
"the",
"suits",
"."
] | [
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] |
[
"Copper",
"futures",
"sold",
"off",
"sharply",
"yesterday",
",",
"influenced",
"by",
"declines",
"in",
"the",
"stock",
"market",
"and",
"dollar",
",",
"and",
"a",
"rally",
"in",
"bonds",
".",
"December",
"copper",
"opened",
"near",
"Monday",
"'s",
"close",
",",
"tried",
"to",
"rally",
"but",
"failed",
",",
"and",
"then",
"triggered",
"stop-loss",
"orders",
"on",
"its",
"way",
"down",
"to",
"settle",
"at",
"$",
"1.1510",
"a",
"pound",
",",
"off",
"4.50",
"cents",
"for",
"the",
"day",
".",
"Stop-loss",
"orders",
"are",
"placed",
"previously",
"with",
"instructions",
"to",
"execute",
"them",
"if",
"the",
"market",
"hits",
"a",
"predetermined",
"price",
".",
"William",
"Kaiser",
",",
"president",
"of",
"the",
"Kaiser",
"Financial",
"Group",
"in",
"Chicago",
",",
"said",
"the",
"decline",
"was",
"almost",
"certainly",
"influenced",
"by",
"the",
"early",
"sell-off",
"in",
"the",
"stock",
"market",
",",
"which",
"partly",
"reflected",
"a",
"weakening",
"economy",
".",
"He",
"said",
"the",
"recent",
"decline",
"in",
"copper",
"stocks",
"was",
"misleading",
"in",
"the",
"face",
"of",
"a",
"slowdown",
"in",
"manufacturing",
".",
"Mr.",
"Kaiser",
"said",
"traders",
"could",
"have",
"picked",
"up",
"signals",
"of",
"an",
"imminent",
"price",
"decline",
"had",
"they",
"been",
"watching",
"the",
"scrap",
"metal",
"markets",
",",
"which",
"became",
"noticeably",
"weaker",
"two",
"to",
"three",
"weeks",
"ago",
".",
"But",
"though",
"a",
"weakening",
"economy",
"implies",
"reduced",
"demand",
",",
"Mr.",
"Kaiser",
"said",
"that",
"Third",
"World",
"copper-producing",
"countries",
"have",
"n't",
"any",
"choice",
"but",
"to",
"sell",
"copper",
".",
"They",
"might",
"even",
"step",
"up",
"sales",
"in",
"a",
"falling",
"market",
",",
"he",
"said",
",",
"in",
"an",
"effort",
"to",
"maintain",
"the",
"flow",
"of",
"foreign",
"exchange",
"into",
"their",
"treasuries",
".",
"Technically",
",",
"Mr.",
"Kaiser",
"noted",
"that",
"a",
"lot",
"of",
"traders",
"had",
"bought",
"into",
"the",
"market",
"when",
"the",
"price",
"was",
"in",
"the",
"$",
"1.24",
"to",
"$",
"1.26",
"range",
",",
"thinking",
"there",
"was",
"support",
"at",
"the",
"$",
"1.20",
"level",
".",
"When",
"the",
"market",
"fell",
"below",
"that",
"level",
"on",
"Monday",
"and",
"then",
"yesterday",
"could",
"n't",
"climb",
"above",
"that",
"level",
",",
"traders",
"started",
"selling",
"out",
"their",
"positions",
".",
"Betty",
"Raptopoulos",
",",
"senior",
"metals",
"analyst",
"at",
"Prudential-Bache",
"Securities",
"in",
"New",
"York",
",",
"agreed",
"that",
"most",
"of",
"the",
"selling",
"was",
"of",
"a",
"technical",
"nature",
".",
"She",
"said",
"the",
"market",
"hit",
"the",
"$",
"1.18",
"level",
"at",
"around",
"10",
"a.m.",
"EDT",
"where",
"it",
"encountered",
"a",
"large",
"number",
"of",
"stop-loss",
"orders",
".",
"More",
"stop-loss",
"orders",
"were",
"touched",
"off",
"all",
"the",
"way",
"down",
"to",
"below",
"$",
"1.14",
",",
"where",
"modest",
"buying",
"was",
"attracted",
".",
"Ms.",
"Raptopoulos",
"said",
"the",
"settling",
"of",
"strikes",
"in",
"Canada",
"and",
"Mexico",
"will",
"have",
"little",
"effect",
"on",
"supplies",
"of",
"copper",
"until",
"early",
"next",
"year",
".",
"She",
"thinks",
"the",
"next",
"area",
"of",
"support",
"for",
"copper",
"is",
"in",
"the",
"$",
"1.09",
"to",
"$",
"1.10",
"range",
".",
"``",
"I",
"believe",
"that",
"as",
"soon",
"as",
"the",
"selling",
"abates",
"somewhat",
"we",
"could",
"see",
"a",
"rally",
"back",
"to",
"the",
"$",
"1.20",
"region",
",",
"''",
"she",
"added",
".",
"She",
"thinks",
"a",
"recovery",
"in",
"the",
"stock",
"market",
"would",
"help",
"copper",
"rebound",
"as",
"well",
".",
"She",
"noted",
"that",
"the",
"preliminary",
"estimate",
"of",
"the",
"third-quarter",
"gross",
"national",
"product",
"is",
"due",
"out",
"tomorrow",
"and",
"is",
"expected",
"to",
"be",
"up",
"about",
"2.5",
"%",
"to",
"3",
"%",
".",
"``",
"If",
"the",
"number",
"is",
"a",
"little",
"better",
",",
"then",
"copper",
"will",
"respond",
"positively",
",",
"if",
"it",
"is",
"worse",
"then",
"more",
"selling",
"could",
"ensue",
",",
"''",
"she",
"predicted",
".",
"Ms.",
"Raptopoulos",
"noted",
"that",
"relating",
"economic",
"numbers",
"to",
"specific",
"market",
"activity",
"is",
"tricky",
".",
"Yesterday",
",",
"for",
"example",
",",
"``",
"the",
"durable",
"goods",
"numbers",
"came",
"out",
"for",
"September",
"and",
"the",
"number",
"was",
"down",
"only",
"0.1",
"%",
",",
"''",
"she",
"said",
".",
"``",
"However",
",",
"if",
"you",
"exclude",
"defense-related",
"orders",
"then",
"durable",
"goods",
"were",
"down",
"3.9",
"%",
".",
"I",
"believe",
"that",
"number",
"reflects",
"a",
"slowing",
"economy",
".",
"''",
"She",
"said",
"copper",
"traders",
"will",
"also",
"be",
"looking",
"toward",
"the",
"release",
"of",
"the",
"index",
"of",
"leading",
"economic",
"indicators",
"next",
"Tuesday",
".",
"However",
",",
"David",
"Threlkeld",
",",
"president",
"of",
"Threlkeld",
"&",
"Co.",
",",
"an",
"international",
"metals",
"company",
",",
"noted",
"that",
"so",
"far",
"this",
"year",
"copper",
"consumption",
"is",
"way",
"ahead",
"of",
"the",
"same",
"period",
"of",
"1988",
",",
"and",
"that",
"projected",
"production",
"is",
"below",
"last",
"year",
".",
"Mr.",
"Threlkeld",
"said",
"the",
"copper",
"market",
"seems",
"to",
"be",
"anticipating",
"a",
"recession",
"in",
"three",
"months",
",",
"with",
"declining",
"use",
"being",
"the",
"result",
".",
"``",
"But",
",",
"''",
"he",
"added",
",",
"``",
"we",
"have",
"had",
"that",
"exact",
"same",
"perception",
"six",
"times",
"in",
"the",
"last",
"six",
"years",
".",
"''",
"He",
"noted",
"that",
"currently",
"the",
"ratio",
"of",
"available",
"copper",
"to",
"consumption",
"is",
"about",
"3.5",
"weeks",
".",
"He",
"said",
"the",
"normal",
"ratio",
"is",
"five",
"to",
"six",
"weeks",
".",
"According",
"to",
"Mr.",
"Threlkeld",
",",
"the",
"bottleneck",
"in",
"copper",
"production",
"is",
"n't",
"at",
"the",
"mines",
"but",
"at",
"the",
"copper",
"refineries",
".",
"``",
"It",
"takes",
"three",
"months",
"to",
"turn",
"copper",
"concentrate",
"into",
"cathodes",
",",
"''",
"he",
"said",
".",
"If",
"there",
"is",
"n't",
"a",
"recession",
",",
"he",
"said",
",",
"``",
"we",
"will",
"be",
"out",
"of",
"copper",
"by",
"the",
"end",
"of",
"March",
".",
"If",
"there",
"is",
"a",
"recession",
"that",
"will",
"change",
"the",
"statistical",
"situation",
".",
"''",
"He",
"thinks",
"that",
"without",
"a",
"recession",
"copper",
"prices",
"could",
"exceed",
"a",
"high",
"of",
"$",
"1.65",
"a",
"pound",
",",
"which",
"was",
"reached",
"last",
"year",
".",
"In",
"the",
"past",
"Mr.",
"Threlkeld",
"has",
"been",
"known",
"to",
"have",
"substantial",
"long",
"positions",
"that",
"is",
",",
"he",
"had",
"bought",
"copper",
"futures",
"in",
"anticipation",
"of",
"rising",
"prices",
"--",
"in",
"the",
"copper",
"futures",
"market",
".",
"In",
"other",
"commodity",
"markets",
"yesterday",
":",
"ENERGY",
":",
"The",
"attitude",
"was",
"``",
"wait-and-see",
"''",
"in",
"crude",
"oil",
"futures",
"yesterday",
"in",
"trading",
"on",
"the",
"New",
"York",
"Mercantile",
"Exchange",
".",
"Prices",
"for",
"the",
"U.S.",
"benchmark",
"West",
"Texas",
"Intermediate",
"crude",
"remained",
"locked",
"in",
"a",
"fairly",
"narrow",
"range",
"before",
"ending",
"the",
"session",
"four",
"cents",
"lower",
"at",
"$",
"19.72",
"a",
"barrel",
"for",
"December",
"delivery",
".",
"Several",
"analysts",
"and",
"brokers",
"said",
"the",
"petroleum",
"market",
"was",
"ready",
"to",
"rally",
"after",
"two",
"days",
"of",
"price",
"declines",
"from",
"profit-taking",
".",
"But",
"an",
"early",
"80-point",
"drop",
"in",
"the",
"Dow",
"Jones",
"Industrial",
"Average",
"stopped",
"the",
"crude",
"rally",
"cold",
".",
"The",
"industrial",
"average",
"recovered",
"to",
"close",
"only",
"3.69",
"points",
"lower",
",",
"but",
"petroleum",
"futures",
"never",
"shook",
"off",
"the",
"chill",
".",
"Most",
"market",
"participants",
"said",
"they",
"were",
"looking",
"to",
"this",
"week",
"'s",
"inventory",
"statistics",
"from",
"the",
"American",
"Petroleum",
"Institute",
"to",
"give",
"the",
"market",
"some",
"direction",
".",
"The",
"report",
"is",
"n't",
"generally",
"available",
"until",
"late",
"on",
"Tuesdays",
".",
"PRECIOUS",
"METALS",
":",
"Futures",
"prices",
"inched",
"upward",
"in",
"mostly",
"lackluster",
"trading",
".",
"December",
"gold",
"was",
"up",
"$",
"3.20",
"an",
"ounce",
"at",
"$",
"373.40",
";",
"December",
"silver",
"gained",
"5.7",
"cents",
"to",
"$",
"5.1950",
"an",
"ounce",
".",
"January",
"platinum",
"rose",
"$",
"2.30",
"an",
"ounce",
"to",
"$",
"488.60",
".",
"Mr.",
"Kaiser",
"said",
"there",
"were",
"no",
"fundamental",
"factors",
"moving",
"these",
"markets",
".",
"He",
"noted",
"that",
"two",
"weeks",
"ago",
"there",
"were",
"rumors",
"of",
"Soviet",
"sales",
"of",
"precious",
"metals",
"to",
"finance",
"grain",
"purchases",
",",
"but",
"the",
"sales",
"do",
"n't",
"seem",
"to",
"have",
"materialized",
".",
"Ms.",
"Raptopoulos",
"thought",
"yesterday",
"'s",
"price",
"action",
"reflected",
"weakness",
"in",
"the",
"stock",
"market",
"and",
"the",
"dollar",
".",
"``",
"Gold",
"still",
"acts",
"as",
"a",
"haven",
"when",
"uncertainty",
"prevails",
"in",
"the",
"financial",
"markets",
"as",
"it",
"did",
"''",
"yesterday",
",",
"she",
"said",
".",
"Mr.",
"Kaiser",
"noted",
"that",
"gold",
"was",
"more",
"than",
"71",
"times",
"the",
"price",
"of",
"silver",
"at",
"the",
"close",
"yesterday",
",",
"which",
"is",
"historically",
"high",
".",
"``",
"The",
"high",
"ratio",
"reflects",
"the",
"fact",
"that",
"silver",
"is",
"still",
"regarded",
"as",
"about",
"a",
"half-industrial",
"metal",
"and",
"its",
"price",
"lagging",
"relative",
"to",
"gold",
"says",
"that",
"traders",
"are",
"expecting",
"a",
"weakening",
"economy",
",",
"''",
"he",
"said",
".",
"GRAINS",
"AND",
"SOYBEANS",
":",
"Prices",
"closed",
"lower",
"after",
"trading",
"in",
"relatively",
"narrow",
"ranges",
"because",
"of",
"strong",
"selling",
"in",
"the",
"cash",
"market",
"and",
"continued",
"favorable",
"harvest",
"weather",
".",
"The",
"sale",
"to",
"the",
"Chinese",
"government",
"of",
"330,000",
"metric",
"tons",
"of",
"wheat",
"under",
"the",
"government",
"'s",
"export",
"enhancement",
"program",
"was",
"announced",
"after",
"the",
"close",
"of",
"trading",
"Monday",
",",
"but",
"the",
"sale",
"was",
"expected",
"and",
"failed",
"to",
"buoy",
"prices",
"yesterday",
",",
"said",
"Dale",
"Gustafson",
",",
"a",
"futures",
"analyst",
"with",
"Drexel",
"Burnham",
"Lambert",
"Inc.",
"in",
"Chicago",
".",
"As",
"for",
"other",
"export",
"customers",
",",
"the",
"Soviet",
"Union",
"is",
"n't",
"expected",
"to",
"be",
"back",
"buying",
"U.S.",
"corn",
"in",
"significant",
"amounts",
"until",
"early",
"next",
"year",
",",
"he",
"said",
".",
"A",
"number",
"of",
"commercial",
"grain",
"users",
"buttressed",
"that",
"opinion",
"yesterday",
"by",
"buying",
"certain",
"corn",
"options",
"for",
"delivery",
"in",
"March",
",",
"indicating",
"to",
"analysts",
"that",
"the",
"commercial",
"companies",
"would",
"use",
"the",
"options",
"to",
"hedge",
"against",
"expected",
"corn",
"sales",
"in",
"next",
"year",
"'s",
"first",
"quarter",
".",
"COCOA",
":",
"Futures",
"at",
"first",
"continued",
"the",
"rally",
"begun",
"on",
"Monday",
",",
"but",
"then",
"faltered",
"and",
"closed",
"lower",
".",
"The",
"December",
"contract",
"opened",
"just",
"under",
"Monday",
"'s",
"close",
",",
"triggered",
"some",
"previously",
"placed",
"buy",
"orders",
"just",
"above",
"$",
"1,030",
"a",
"metric",
"ton",
",",
"pushing",
"the",
"price",
"to",
"$",
"1,040",
",",
"and",
"then",
"encountered",
"heavy",
"selling",
"by",
"traders",
"who",
"buy",
"and",
"sell",
"for",
"their",
"own",
"accounts",
"and",
"by",
"commercial",
"interests",
".",
"The",
"contract",
"settled",
"at",
"$",
"1,014",
"a",
"ton",
",",
"off",
"$",
"13",
".",
"Robert",
"Hafer",
",",
"senior",
"commodities",
"analyst",
"at",
"Kaiser",
"Financial",
"Group",
",",
"said",
"Monday",
"'s",
"rally",
"continued",
"yesterday",
"for",
"only",
"about",
"20",
"minutes",
"after",
"the",
"opening",
".",
"He",
"said",
"even",
"though",
"there",
"was",
"arbitrage",
"buying",
"in",
"New",
"York",
"because",
"of",
"the",
"weak",
"dollar",
",",
"cocoa",
"fell",
"to",
"relentless",
"pressure",
"from",
"bearish",
"traders",
".",
"But",
"he",
"noted",
"that",
"speculators",
"apparently",
"do",
"n't",
"believe",
"there",
"is",
"much",
"more",
"of",
"a",
"decline",
"in",
"store",
"for",
"cocoa",
".",
"The",
"December",
"contract",
"reached",
"its",
"life-of-contract",
"low",
"of",
"$",
"975",
"a",
"ton",
"on",
"Oct.",
"11",
";",
"its",
"lifetime",
"high",
"was",
"$",
"1,735",
",",
"set",
"in",
"1988",
",",
"and",
"its",
"recent",
"high",
"was",
"$",
"1,368",
",",
"set",
"in",
"early",
"August",
".",
"The",
"last",
"time",
"cocoa",
"traded",
"at",
"prices",
"as",
"low",
"as",
"currently",
"was",
"in",
"1974",
".",
"But",
"while",
"further",
"modest",
"declines",
"might",
"be",
"ahead",
",",
"Mr.",
"Hafer",
"said",
"it",
"would",
"be",
"difficult",
"to",
"get",
"through",
"resistance",
"levels",
"just",
"above",
"yesterday",
"'s",
"high",
"."
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6,
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"$",
"50.875",
"in",
"Big",
"Board",
"trading",
".",
"Takeover",
"stock",
"traders",
"noted",
"that",
"with",
"the",
"junk-bond",
"market",
"in",
"disarray",
",",
"Georgia-Pacific",
"'s",
"bid",
"is",
"an",
"indication",
"of",
"where",
"the",
"takeover",
"game",
"is",
"headed",
":",
"namely",
",",
"industrial",
"companies",
"can",
"continue",
"bidding",
"for",
"one",
"another",
",",
"but",
"financial",
"buyers",
"such",
"as",
"leveraged",
"buy-out",
"firms",
"will",
"be",
"at",
"a",
"disadvantage",
"in",
"obtaining",
"financing",
".",
"``",
"The",
"way",
"the",
"world",
"is",
"shaping",
"up",
",",
"the",
"strategic",
"buyer",
"is",
"going",
"to",
"be",
"the",
"rule",
"and",
"the",
"financial",
"buyer",
"is",
"going",
"to",
"be",
"the",
"exception",
",",
"''",
"said",
"one",
"trader",
".",
"For",
"the",
"paper",
"industry",
"specifically",
",",
"most",
"analysts",
"said",
"the",
"deal",
"will",
"spur",
"a",
"wave",
"of",
"paper-company",
"takeovers",
",",
"possibly",
"involving",
"such",
"companies",
"as",
"Union",
"Camp",
"Corp.",
",",
"Federal",
"Paperboard",
"Co.",
"and",
"Mead",
"Corp",
".",
"The",
"analysts",
"argued",
"that",
"Georgia-Pacific",
"'s",
"offer",
",",
"the",
"first",
"hostile",
"bid",
"ever",
"among",
"major",
"players",
"in",
"the",
"paper",
"industry",
",",
"ends",
"the",
"unwritten",
"taboo",
"on",
"hostile",
"bids",
",",
"and",
"will",
"push",
"managements",
"to",
"look",
"closely",
"at",
"the",
"industry",
"'s",
"several",
"attractive",
"takeover",
"candidates",
".",
"``",
"Consolidation",
"has",
"been",
"long",
"overdue",
".",
"It",
"was",
"just",
"the",
"culture",
"of",
"the",
"industry",
"that",
"kept",
"it",
"from",
"happening",
".",
"The",
"Georgia-Pacific",
"offer",
"has",
"definitely",
"changed",
"the",
"landscape",
",",
"''",
"said",
"Gary",
"Palmero",
"of",
"Oppenheimer",
"&",
"Co",
".",
"Added",
"Mark",
"Rogers",
"of",
"Prudential-Bache",
"Securities",
"Inc.",
":",
"``",
"It",
"'s",
"much",
"easier",
"to",
"be",
"second",
".",
"''",
"A",
"Georgia-Pacific",
"acquisition",
"of",
"Nekoosa",
"would",
"create",
"the",
"largest",
"U.S.",
"forest-products",
"company",
".",
"Based",
"on",
"1988",
"sales",
",",
"Georgia-Pacific",
"ranked",
"third",
"at",
"$",
"9.51",
"billion",
",",
"behind",
"Weyerhaeuser",
"Co.",
"at",
"$",
"10",
"billion",
"and",
"International",
"Paper",
"Co.",
"at",
"$",
"9.53",
"billion",
".",
"Nekoosa",
"ranked",
"11th",
"with",
"sales",
"of",
"$",
"3.59",
"billion",
".",
"The",
"combined",
"company",
"would",
"have",
"had",
"1988",
"sales",
"of",
"$",
"13.1",
"billion",
".",
"But",
"such",
"a",
"combination",
"also",
"presents",
"great",
"risks",
".",
"At",
"a",
"time",
"when",
"most",
"analysts",
"and",
"industry",
"consultants",
"say",
"pulp",
"and",
"paper",
"prices",
"are",
"heading",
"for",
"a",
"dive",
",",
"adding",
"capacity",
"and",
"debt",
"could",
"squeeze",
"Georgia-Pacific",
"if",
"the",
"industry",
"declines",
"more",
"than",
"the",
"company",
"expects",
".",
"Moreover",
",",
"any",
"unexpected",
"strengthening",
"of",
"the",
"dollar",
"would",
"hurt",
"Georgia-Pacific",
"because",
"two",
"of",
"Nekoosa",
"'s",
"major",
"product",
"lines",
"--",
"containerboard",
",",
"which",
"is",
"used",
"to",
"make",
"shipping",
"boxes",
",",
"and",
"market",
"pulp",
"--",
"are",
"exported",
"in",
"large",
"quantities",
".",
"``",
"Nobody",
"knows",
"how",
"deep",
"the",
"cycle",
"is",
"going",
"to",
"be",
",",
"''",
"said",
"Rod",
"Young",
",",
"vice",
"president",
"of",
"Resource",
"Information",
"Systems",
"Inc.",
",",
"a",
"Bedford",
",",
"Mass.",
",",
"economic-forecasting",
"firm",
".",
"``",
"Depending",
"on",
"how",
"far",
"down",
"you",
"go",
",",
"it",
"may",
"be",
"difficult",
"to",
"pay",
"off",
"that",
"debt",
".",
"''",
"One",
"person",
"familiar",
"with",
"Georgia-Pacific",
"said",
"the",
"acquisition",
"would",
"more",
"than",
"double",
"the",
"company",
"'s",
"debt",
"of",
"almost",
"$",
"3",
"billion",
".",
"It",
"also",
"could",
"be",
"a",
"drag",
"on",
"Georgia-Pacific",
"earnings",
"because",
"the",
"roughly",
"$",
"1.5",
"billion",
"in",
"goodwill",
"--",
"the",
"amount",
"by",
"which",
"the",
"bid",
"exceeds",
"Nekoosa",
"'s",
"book",
"value",
"of",
"$",
"1.5",
"billion",
"--",
"will",
"have",
"to",
"be",
"subtracted",
"from",
"earnings",
"over",
"a",
"period",
"of",
"decades",
".",
"Georgia-Pacific",
"'s",
"Mr.",
"Hahn",
"said",
"that",
"a",
"combined",
"operation",
"would",
"allow",
"savings",
"in",
"many",
"ways",
".",
"The",
"two",
"companies",
"each",
"produce",
"market",
"pulp",
",",
"containerboard",
"and",
"white",
"paper",
".",
"That",
"means",
"goods",
"could",
"be",
"manufactured",
"closer",
"to",
"customers",
",",
"saving",
"shipping",
"costs",
",",
"he",
"said",
".",
"Moreover",
",",
"production",
"runs",
"would",
"be",
"longer",
",",
"cutting",
"inefficiencies",
"from",
"adjusting",
"machinery",
"between",
"production",
"cycles",
".",
"And",
"Georgia-Pacific",
"could",
"save",
"money",
"in",
"selling",
"pulp",
",",
"because",
"the",
"company",
"uses",
"its",
"own",
"sales",
"organization",
"while",
"Nekoosa",
"employs",
"higher-cost",
"agents",
".",
"Mr.",
"Hahn",
"said",
"Georgia-Pacific",
"has",
"accounted",
"in",
"its",
"strategy",
"for",
"a",
"``",
"significant",
"downturn",
"''",
"in",
"the",
"pulp",
"and",
"paper",
"industry",
",",
"an",
"event",
"that",
"he",
"said",
"would",
"temporarily",
"dilute",
"earnings",
".",
"But",
"he",
"said",
"that",
"even",
"under",
"those",
"conditions",
",",
"the",
"company",
"still",
"would",
"realize",
"a",
"savings",
"of",
"tens",
"of",
"millions",
"of",
"dollars",
"in",
"the",
"first",
"year",
"following",
"a",
"merger",
".",
"``",
"The",
"fit",
"is",
"so",
"good",
",",
"we",
"see",
"this",
"as",
"a",
"time",
"of",
"opportunity",
",",
"''",
"he",
"said",
".",
"Georgia-Pacific",
",",
"which",
"has",
"suspended",
"its",
"stock-repurchase",
"program",
",",
"would",
"finance",
"the",
"acquisition",
"with",
"all",
"bank",
"debt",
",",
"provided",
"by",
"banks",
"led",
"by",
"BankAmerica",
"Corp",
".",
"Georgia-Pacific",
"owns",
"349,900",
"Nekoosa",
"shares",
"and",
"would",
"need",
"federal",
"antitrust",
"clearance",
"to",
"buy",
"more",
"than",
"$",
"15",
"million",
"worth",
".",
"U.S.",
"clearance",
"also",
"is",
"needed",
"for",
"the",
"proposed",
"acquisition",
".",
"For",
"Nekoosa",
",",
"defense",
"options",
"may",
"be",
"undercut",
"somewhat",
"by",
"the",
"precarious",
"state",
"of",
"the",
"junk-bond",
"market",
",",
"which",
"limits",
"how",
"much",
"value",
"the",
"target",
"could",
"reach",
"in",
"a",
"debt-financed",
"recapitalization",
".",
"The",
"company",
"'s",
"chairman",
",",
"Mr.",
"Laidig",
",",
"and",
"a",
"group",
"of",
"advisers",
"met",
"at",
"the",
"offices",
"of",
"Wachtel",
"Lipton",
"Rosen",
"&",
"Katz",
",",
"a",
"law",
"firm",
"specializing",
"in",
"takeover",
"defense",
".",
"Nekoosa",
"also",
"is",
"being",
"advised",
"by",
"Goldman",
",",
"Sachs",
"&",
"Co",
".",
"Georgia-Pacific",
"'s",
"advisers",
"are",
"Wasserstein",
",",
"Perella",
"&",
"Co.",
",",
"which",
"stands",
"to",
"receive",
"a",
"$",
"15",
"million",
"fee",
"if",
"the",
"takeover",
"succeeds",
",",
"and",
"the",
"law",
"firm",
"of",
"Shearman",
"&",
"Sterling",
".",
"People",
"familiar",
"with",
"Nekoosa",
"said",
"its",
"board",
"is",
"n't",
"likely",
"to",
"meet",
"before",
"the",
"week",
"after",
"next",
"to",
"respond",
"to",
"the",
"bid",
".",
"The",
"board",
"has",
"10",
"business",
"days",
"to",
"respond",
".",
"In",
"addition",
"to",
"the",
"usual",
"array",
"of",
"defenses",
",",
"including",
"a",
"so-called",
"poison",
"pill",
"and",
"a",
"staggered",
"board",
",",
"Nekoosa",
"has",
"another",
"takeover",
"defense",
":",
"a",
"Maine",
"state",
"law",
"barring",
"hostile",
"bidders",
"from",
"merging",
"acquired",
"businesses",
"for",
"five",
"years",
".",
"Nekoosa",
"is",
"incorporated",
"in",
"Maine",
".",
"Georgia-Pacific",
"has",
"filed",
"a",
"lawsuit",
"in",
"federal",
"court",
"in",
"Maine",
"challenging",
"the",
"poison",
"pill",
"and",
"the",
"Maine",
"merger",
"law",
".",
"Nekoosa",
"'s",
"poison",
"pill",
"allows",
"shareholders",
"to",
"vote",
"to",
"rescind",
"it",
",",
"but",
"Georgia-Pacific",
"is",
"n't",
"likely",
"to",
"pursue",
"such",
"a",
"course",
"immediately",
"because",
"that",
"would",
"take",
"90",
"to",
"120",
"days",
",",
"and",
"would",
"n't",
"affect",
"the",
"provisions",
"of",
"the",
"Maine",
"law",
".",
"Among",
"companies",
"mentioned",
"by",
"analysts",
"as",
"possible",
"counterbidders",
"for",
"Nekoosa",
"are",
"International",
"Paper",
",",
"Weyerhaeuser",
",",
"Canadian",
"Pacific",
"Ltd.",
"and",
"MacMillan",
"Bloedel",
"Ltd",
".",
"``",
"I",
"'m",
"sure",
"everybody",
"else",
"is",
"putting",
"pencil",
"to",
"paper",
",",
"''",
"said",
"Kathryn",
"McAuley",
",",
"an",
"analyst",
"with",
"First",
"Manhattan",
"Co",
".",
"International",
"Paper",
"and",
"Weyerhaeuser",
"declined",
"to",
"comment",
".",
"Canadian",
"Pacific",
"could",
"n't",
"be",
"reached",
"for",
"comment",
",",
"and",
"MacMillan",
"Bloedel",
"said",
"it",
"has",
"n't",
"any",
"plans",
"to",
"make",
"a",
"bid",
"for",
"Nekoosa",
".",
"Investors",
"were",
"quick",
"to",
"spot",
"other",
"potential",
"takeover",
"candidates",
",",
"all",
"of",
"which",
"have",
"strong",
"cash",
"flows",
"and",
"low-cost",
"operations",
".",
"Among",
"paper",
"company",
"stocks",
"that",
"rallied",
"on",
"the",
"Big",
"Board",
"because",
"of",
"the",
"offer",
"were",
"Union",
"Camp",
",",
"up",
"$",
"2.75",
"to",
"$",
"37.75",
",",
"Federal",
"Paperboard",
",",
"up",
"$",
"1.75",
"to",
"$",
"27.875",
",",
"Mead",
",",
"up",
"$",
"2.375",
"to",
"$",
"38.75",
",",
"and",
"Temple",
"Inland",
"Inc.",
",",
"up",
"$",
"3.75",
"to",
"$",
"62.25",
".",
"In",
"over-the-counter",
"national",
"trading",
",",
"Bowater",
"Inc.",
"jumped",
"$",
"1.50",
"to",
"$",
"27.50",
".",
"Some",
"analysts",
"argued",
"that",
"there",
"wo",
"n't",
"be",
"a",
"flurry",
"of",
"takeovers",
"because",
"the",
"industry",
"'s",
"continuing",
"capacity-expansion",
"program",
"is",
"eating",
"up",
"available",
"cash",
".",
"Moreover",
",",
"some",
"analysts",
"said",
"they",
"expect",
"a",
"foreign",
"paper",
"company",
"with",
"deeper",
"pockets",
"than",
"Georgia-Pacific",
"to",
"end",
"up",
"acquiring",
"Nekoosa",
",",
"signaling",
"to",
"the",
"rest",
"of",
"the",
"industry",
"that",
"hostile",
"bids",
"are",
"unproductive",
".",
"``",
"This",
"is",
"a",
"one-time",
"event",
",",
"''",
"said",
"Lawrence",
"Ross",
"of",
"PaineWebber",
"Inc.",
",",
"referring",
"to",
"the",
"Georgia-Pacific",
"bid",
".",
"But",
"many",
"analysts",
"believe",
"that",
",",
"given",
"the",
"attractiveness",
"of",
"paper",
"companies",
"'",
"cash",
"flows",
",",
"as",
"well",
"as",
"the",
"frantic",
"consolidation",
"of",
"the",
"paper",
"industry",
"in",
"Europe",
",",
"there",
"will",
"be",
"at",
"least",
"a",
"few",
"more",
"big",
"hostile",
"bids",
"for",
"U.S.",
"companies",
"within",
"the",
"next",
"several",
"months",
".",
"The",
"buyers",
",",
"these",
"analysts",
"added",
",",
"could",
"be",
"either",
"foreign",
"or",
"other",
"U.S.",
"concerns",
".",
"``",
"The",
"Georgia-Pacific",
"bid",
"may",
"open",
"the",
"door",
"to",
"a",
"new",
"era",
"of",
"consolidation",
"''",
"in",
"the",
"paper",
"industry",
",",
"said",
"Mark",
"Devario",
"of",
"Shearson",
"Lehman",
"Hutton",
"Inc",
".",
"``",
"I",
"do",
"n't",
"think",
"anyone",
"is",
"now",
"immune",
"from",
"takeover",
",",
"''",
"said",
"Robert",
"Schneider",
"of",
"Duff",
"&",
"Phelps",
"Inc.",
",",
"Chicago",
".",
"He",
"added",
":",
"``",
"Every",
"paper",
"company",
"management",
"has",
"to",
"be",
"saying",
"to",
"itself",
",",
"`",
"Before",
"someone",
"comes",
"after",
"me",
",",
"I",
"'m",
"going",
"to",
"go",
"after",
"somebody",
".",
"'",
"''",
"Prudential-Bache",
"'s",
"Mr.",
"Rodgers",
"said",
"he",
"does",
"n't",
"see",
"the",
"industry",
"'s",
"capacity-expansion",
"program",
"hindering",
"takeover",
"activity",
".",
"Several",
"projects",
",",
"he",
"said",
",",
"are",
"still",
"on",
"the",
"drawing",
"board",
".",
"Moreover",
",",
"``",
"it",
"'s",
"a",
"lot",
"cheaper",
"and",
"quicker",
"to",
"buy",
"a",
"plant",
"than",
"to",
"build",
"one",
".",
"''",
"Indeed",
",",
"a",
"number",
"of",
"analysts",
"said",
"that",
"Japanese",
"paper",
"companies",
"are",
"hungry",
"to",
"acquire",
"additional",
"manufacturing",
"capacity",
"anywhere",
"in",
"the",
"world",
".",
"Some",
"predicted",
"that",
"Nekoosa",
"will",
"end",
"up",
"being",
"owned",
"by",
"a",
"Japanese",
"company",
".",
"Meanwhile",
",",
"Shearson",
"Lehman",
"'s",
"Mr.",
"Devario",
"said",
"that",
",",
"to",
"stay",
"competitive",
",",
"the",
"U.S.",
"paper",
"industry",
"needs",
"to",
"catch",
"up",
"with",
"the",
"European",
"industry",
".",
"Since",
"the",
"most-recent",
"wave",
"of",
"friendly",
"takeovers",
"was",
"completed",
"in",
"the",
"U.S.",
"in",
"1986",
",",
"there",
"have",
"been",
"more",
"than",
"100",
"mergers",
"and",
"acquisitions",
"within",
"the",
"European",
"paper",
"industry",
",",
"he",
"said",
"."
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"amod",
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"cop",
"ccomp",
"mark",
"xcomp",
"amod",
"compound",
"obj",
"advmod",
"case",
"det",
"obl",
"punct",
"nsubj",
"root",
"mark",
"nsubj",
"aux",
"ccomp",
"compound:prt",
"aux:pass",
"xcomp",
"case",
"det",
"amod",
"obl",
"punct",
"advmod",
"punct",
"compound",
"nmod:poss",
"case",
"compound",
"nsubj",
"root",
"mark",
"punct",
"mark",
"advcl",
"xcomp",
"punct",
"det",
"compound",
"compound",
"nsubj",
"ccomp",
"mark",
"xcomp",
"compound:prt",
"case",
"det",
"amod",
"obl",
"punct",
"mark",
"det",
"amod",
"nsubj:pass",
"case",
"amod",
"nmod",
"aux:pass",
"advcl",
"case",
"det",
"obl",
"case",
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"aux",
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"advmod",
"fixed",
"nummod",
"ccomp",
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"conj",
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"amod",
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] |
[
"reminiscent",
"of",
"those",
"during",
"the",
"1987",
"crash",
"--",
"that",
"as",
"stock",
"prices",
"plummeted",
"and",
"trading",
"activity",
"escalated",
",",
"some",
"phone",
"calls",
"to",
"market",
"makers",
"in",
"over-the-counter",
"stocks",
"went",
"unanswered",
".",
"``",
"We",
"could",
"n't",
"get",
"dealers",
"to",
"answer",
"their",
"phones",
",",
"''",
"said",
"Robert",
"King",
",",
"senior",
"vice",
"president",
"of",
"OTC",
"trading",
"at",
"Robinson-Humphrey",
"Co.",
"in",
"Atlanta",
".",
"``",
"It",
"was",
"-LCB-",
"like",
"-RCB-",
"the",
"Friday",
"before",
"Black",
"Monday",
"''",
"two",
"years",
"ago",
".",
"Whether",
"unanswered",
"phone",
"calls",
"had",
"any",
"effect",
"or",
"not",
",",
"Nasdaq",
"stocks",
"sank",
"far",
"less",
"than",
"those",
"on",
"the",
"New",
"York",
"and",
"American",
"exchanges",
".",
"Nonetheless",
",",
"the",
"Nasdaq",
"Composite",
"Index",
"suffered",
"its",
"biggest",
"point",
"decline",
"of",
"the",
"year",
"and",
"its",
"sixth",
"worst",
"ever",
",",
"diving",
"14.90",
",",
"or",
"3",
"%",
",",
"to",
"467.29",
".",
"Ten",
"points",
"of",
"the",
"drop",
"occurred",
"during",
"the",
"last",
"45",
"minutes",
"of",
"trading",
".",
"By",
"comparison",
",",
"the",
"New",
"York",
"Stock",
"Exchange",
"Composite",
"tumbled",
"5.8",
"%",
"Friday",
"and",
"the",
"American",
"Stock",
"Exchange",
"Composite",
"fell",
"4",
"%",
".",
"On",
"Oct.",
"16",
",",
"1987",
",",
"the",
"Nasdaq",
"Composite",
"fell",
"16.18",
"points",
",",
"or",
"3.8",
"%",
",",
"followed",
"by",
"its",
"devastating",
"46.12-point",
",",
"or",
"11",
"%",
"slide",
",",
"three",
"days",
"later",
".",
"Nasdaq",
"volume",
"Friday",
"totaled",
"167.7",
"million",
"shares",
",",
"which",
"was",
"only",
"the",
"fifth",
"busiest",
"day",
"so",
"far",
"this",
"year",
".",
"The",
"single-day",
"record",
"of",
"288",
"million",
"shares",
"was",
"set",
"on",
"Oct.",
"21",
",",
"``",
"There",
"was",
"n't",
"a",
"lot",
"of",
"volume",
"because",
"it",
"was",
"just",
"impossible",
"to",
"get",
"stock",
"moved",
",",
"''",
"said",
"E.E.",
"``",
"Buzzy",
"''",
"Geduld",
",",
"president",
"of",
"Herzog",
",",
"Heine",
",",
"Geduld",
",",
"a",
"New",
"York",
"company",
"that",
"makes",
"markets",
"in",
"thousands",
"of",
"OTC",
"issues",
".",
"Most",
"of",
"the",
"complaints",
"about",
"unanswered",
"phone",
"calls",
"came",
"from",
"regional",
"brokers",
"rather",
"than",
"individual",
"investors",
".",
"Mr.",
"King",
"of",
"Robinson-Humphrey",
"and",
"others",
"were",
"quick",
"to",
"add",
"that",
"they",
"believe",
"the",
"problem",
"stemmed",
"more",
"from",
"traders",
"'",
"inability",
"to",
"handle",
"the",
"volume",
"of",
"calls",
",",
"rather",
"than",
"a",
"deliberate",
"attempt",
"to",
"avoid",
"making",
"trades",
".",
"The",
"subject",
"is",
"a",
"sore",
"one",
"for",
"Nasdaq",
"and",
"its",
"market-making",
"companies",
",",
"which",
"were",
"widely",
"criticized",
"two",
"years",
"ago",
"following",
"complaints",
"from",
"investors",
"who",
"could",
"n't",
"reach",
"their",
"brokers",
"or",
"trade",
"in",
"the",
"chaos",
"of",
"the",
"crash",
".",
"Peter",
"DaPuzzo",
",",
"head",
"of",
"retail",
"equity",
"trading",
"at",
"Shearson",
"Lehman",
"Hutton",
",",
"declared",
":",
"``",
"It",
"was",
"the",
"last",
"hour",
"of",
"trading",
"on",
"a",
"Friday",
".",
"There",
"were",
"too",
"many",
"phones",
"ringing",
"and",
"too",
"many",
"things",
"happening",
"to",
"expect",
"market",
"makers",
"to",
"be",
"as",
"efficient",
"as",
"robots",
".",
"It",
"was",
"n't",
"intentional",
",",
"we",
"were",
"all",
"busy",
".",
"''",
"James",
"Tarantino",
",",
"head",
"of",
"OTC",
"trading",
"at",
"Hambrecht",
"&",
"Quist",
"in",
"San",
"Francisco",
",",
"said",
",",
"``",
"It",
"was",
"just",
"like",
"two",
"years",
"ago",
".",
"Everybody",
"was",
"trying",
"to",
"do",
"the",
"same",
"thing",
"at",
"the",
"same",
"time",
".",
"''",
"Jeremiah",
"Mullins",
",",
"the",
"OTC",
"trading",
"chief",
"at",
"Dean",
"Witter",
"Reynolds",
"in",
"New",
"York",
",",
"said",
"proudly",
"that",
"his",
"company",
"executed",
"every",
"order",
"it",
"received",
"by",
"the",
"close",
"of",
"trading",
".",
"But",
",",
"he",
"added",
",",
"``",
"you",
"can",
"only",
"take",
"one",
"call",
"at",
"a",
"time",
".",
"''",
"Market",
"makers",
"keep",
"supplies",
"of",
"stock",
"on",
"hand",
"to",
"maintain",
"orderly",
"trading",
"when",
"imbalances",
"occur",
".",
"On",
"days",
"like",
"Friday",
",",
"that",
"means",
"they",
"must",
"buy",
"shares",
"from",
"sellers",
"when",
"no",
"one",
"else",
"is",
"willing",
"to",
".",
"When",
"selling",
"is",
"so",
"frenzied",
",",
"prices",
"fall",
"steeply",
"and",
"fast",
".",
"Two",
"years",
"ago",
",",
"faced",
"with",
"the",
"possibility",
"of",
"heavy",
"losses",
"on",
"the",
"stocks",
"in",
"their",
"inventories",
",",
"market",
"makers",
"themselves",
"began",
"dumping",
"shares",
",",
"exacerbating",
"the",
"slide",
"in",
"OTC",
"stock",
"prices",
".",
"On",
"Friday",
",",
"some",
"market",
"makers",
"were",
"selling",
"again",
",",
"traders",
"said",
".",
"But",
",",
"with",
"profits",
"sagging",
"on",
"Wall",
"Street",
"since",
"the",
"crash",
",",
"companies",
"have",
"kept",
"smaller",
"share",
"stockpiles",
"on",
"hand",
".",
"Mr.",
"Tarantino",
"of",
"Hambrecht",
"&",
"Quist",
"said",
"some",
"prices",
"fell",
"without",
"trades",
"taking",
"place",
",",
"as",
"market",
"makers",
"kept",
"dropping",
"the",
"prices",
"at",
"which",
"they",
"would",
"buy",
"shares",
".",
"``",
"Everyone",
"was",
"hitting",
"everyone",
"else",
"'s",
"bid",
",",
"''",
"he",
"said",
".",
"So",
",",
"while",
"OTC",
"companies",
"incurred",
"losses",
"on",
"Friday",
",",
"trading",
"officials",
"said",
"the",
"damage",
"was",
"n't",
"as",
"bad",
"as",
"it",
"was",
"in",
"1987",
".",
"``",
"Two",
"years",
"ago",
"we",
"were",
"carrying",
"huge",
"inventories",
"and",
"that",
"was",
"the",
"big",
"culprit",
".",
"I",
"do",
"n't",
"know",
"of",
"anyone",
"carrying",
"big",
"inventories",
"now",
",",
"''",
"said",
"Mr.",
"King",
"of",
"Robinson-Humphrey",
".",
"Tony",
"Cecin",
",",
"head",
"of",
"equity",
"trading",
"at",
"Piper",
",",
"Jaffray",
"&",
"Hopwood",
"in",
"Minneapolis",
",",
"said",
"that",
"Piper",
"Jaffray",
"actually",
"made",
"money",
"on",
"Friday",
".",
"It",
"helped",
"that",
"his",
"inventory",
"is",
"a",
"third",
"smaller",
"now",
"than",
"it",
"was",
"two",
"years",
"ago",
",",
"he",
"said",
".",
"Joseph",
"Hardiman",
",",
"president",
"of",
"the",
"National",
"Association",
"of",
"Securities",
"Dealers",
",",
"which",
"oversees",
"the",
"Nasdaq",
"computerized",
"trading",
"system",
",",
"said",
"that",
"despite",
"the",
"rush",
"of",
"selling",
",",
"he",
"never",
"considered",
"the",
"situation",
"an",
"``",
"emergency",
".",
"''",
"``",
"The",
"pace",
"of",
"trading",
"was",
"orderly",
",",
"''",
"he",
"said",
".",
"Nasdaq",
"'s",
"Small",
"Order",
"Execution",
"System",
"``",
"worked",
"beautifully",
",",
"''",
"as",
"did",
"the",
"automated",
"system",
"for",
"larger",
"trades",
",",
"according",
"to",
"Mr.",
"Hardiman",
".",
"Nevertheless",
",",
"the",
"shock",
"of",
"another",
"steep",
"plunge",
"in",
"stock",
"prices",
"undoubtedly",
"will",
"shake",
"many",
"investors",
"'",
"confidence",
".",
"In",
"the",
"past",
",",
"the",
"OTC",
"market",
"thrived",
"on",
"a",
"firm",
"base",
"of",
"small-investor",
"participation",
".",
"Because",
"Nasdaq",
"'s",
"trading",
"volume",
"has",
"n't",
"returned",
"to",
"pre-crash",
"levels",
",",
"traders",
"and",
"OTC",
"market",
"officials",
"hope",
"the",
"damage",
"wo",
"n't",
"be",
"permanent",
".",
"But",
"they",
"are",
"worried",
".",
"``",
"We",
"were",
"just",
"starting",
"to",
"get",
"the",
"public",
"'s",
"confidence",
"back",
",",
"''",
"lamented",
"Mr.",
"Mullins",
"of",
"Dean",
"Witter",
".",
"More",
"troubling",
"is",
"the",
"prospect",
"that",
"the",
"overall",
"collapse",
"in",
"stock",
"prices",
"could",
"permanently",
"erode",
"the",
"base",
"of",
"small-investor",
"support",
"the",
"OTC",
"market",
"was",
"struggling",
"to",
"rebuild",
"in",
"the",
"wake",
"of",
"the",
"October",
"1987",
"crash",
".",
"Mr.",
"Cecin",
"of",
"Piper",
"Jaffray",
"says",
"some",
"action",
"from",
"government",
"policy",
"makers",
"would",
"allay",
"investor",
"fears",
".",
"It",
"wo",
"n't",
"take",
"much",
"more",
"to",
"``",
"scare",
"the",
"hell",
"out",
"of",
"retail",
"investors",
",",
"''",
"he",
"says",
".",
"The",
"sellers",
"on",
"Friday",
"came",
"from",
"all",
"corners",
"of",
"the",
"OTC",
"market",
"--",
"big",
"and",
"small",
"institutional",
"investors",
",",
"as",
"well",
"as",
"individual",
"investors",
"and",
"market",
"makers",
".",
"But",
"grateful",
"traders",
"said",
"the",
"sell",
"orders",
"generally",
"ranged",
"from",
"20,000",
"shares",
"to",
"50,000",
"shares",
",",
"compared",
"with",
"blocks",
"of",
"500,000",
"shares",
"or",
"more",
"two",
"years",
"ago",
".",
"Shearson",
"'s",
"Mr.",
"DaPuzzo",
"said",
"retail",
"investors",
"nervously",
"sold",
"stock",
"Friday",
"and",
"never",
"returned",
"to",
"bargain-hunt",
".",
"Institutional",
"investors",
",",
"which",
"had",
"been",
"selling",
"stock",
"throughout",
"last",
"week",
"to",
"lock",
"in",
"handsome",
"gains",
"made",
"through",
"the",
"third",
"quarter",
",",
"were",
"calmer",
".",
"``",
"We",
"had",
"a",
"good",
"amount",
"of",
"selling",
"from",
"institutions",
",",
"but",
"not",
"as",
"much",
"panic",
",",
"''",
"Mr.",
"DaPuzzo",
"said",
".",
"``",
"If",
"they",
"could",
"n't",
"sell",
",",
"some",
"of",
"them",
"put",
"the",
"shares",
"back",
"on",
"the",
"shelf",
".",
"''",
"In",
"addition",
",",
"he",
"said",
",",
"some",
"bigger",
"institutional",
"investors",
"placed",
"bids",
"to",
"buy",
"some",
"OTC",
"stocks",
"whose",
"prices",
"were",
"beaten",
"down",
".",
"In",
"addition",
",",
"Mr.",
"DaPuzzo",
"said",
"computer-guided",
"program",
"selling",
"of",
"OTC",
"stocks",
"in",
"the",
"Russell",
"Index",
"of",
"2000",
"small",
"stocks",
"and",
"the",
"Standard",
"&",
"Poor",
"'s",
"500-stock",
"Index",
"sent",
"occasional",
"``",
"waves",
"``",
"through",
"the",
"market",
".",
"Nasdaq",
"'s",
"biggest",
"stocks",
"were",
"hammered",
".",
"The",
"Nasdaq",
"100",
"Index",
"of",
"the",
"largest",
"nonfinancial",
"issues",
",",
"including",
"the",
"big",
"OTC",
"technology",
"issues",
",",
"tumbled",
"4.2",
"%",
",",
"or",
"19.76",
",",
"to",
"449.33",
".",
"The",
"Nasdaq",
"Financial",
"Index",
"of",
"giant",
"insurance",
"and",
"banking",
"stocks",
"dropped",
"2",
"%",
",",
"or",
"9.31",
",",
"to",
"462.98",
".",
"The",
"OTC",
"market",
"has",
"only",
"a",
"handful",
"of",
"takeover-related",
"stocks",
".",
"But",
"they",
"fell",
"sharply",
".",
"McCaw",
"Cellular",
"Communications",
",",
"for",
"instance",
",",
"has",
"offered",
"to",
"buy",
"LIN",
"Broadcasting",
"as",
"well",
"as",
"Metromedia",
"'s",
"New",
"York",
"City",
"cellular",
"telephone",
"interests",
",",
"and",
"in",
"a",
"separate",
"transaction",
",",
"sell",
"certain",
"McCaw",
"properties",
"to",
"Contel",
"Cellular",
".",
"McCaw",
"lost",
"8",
"%",
",",
"or",
"3",
"1/2",
",",
"to",
"40",
".",
"LIN",
"Broadcasting",
",",
"dropped",
"5",
"1/2",
",",
"or",
"5",
"%",
",",
"to",
"107",
"1/2",
".",
"The",
"turnover",
"in",
"both",
"issues",
"was",
"roughly",
"normal",
".",
"On",
"a",
"day",
"when",
"negative",
"takeover-related",
"news",
"did",
"n't",
"sit",
"well",
"with",
"investors",
",",
"Commercial",
"Intertech",
",",
"a",
"maker",
"of",
"engineered",
"metal",
"parts",
",",
"said",
"Haas",
"&",
"Partners",
"advised",
"it",
"that",
"it",
"does",
"n't",
"plan",
"to",
"pursue",
"its",
"previously",
"reported",
"$",
"27.50-a-share",
"bid",
"to",
"buy",
"the",
"company",
".",
"Commercial",
"Intertech",
"plummeted",
"6",
"to",
"26",
".",
"The",
"issues",
"of",
"companies",
"with",
"ties",
"to",
"the",
"junk",
"bond",
"market",
"also",
"tumbled",
"Friday",
".",
"On",
"the",
"OTC",
"market",
",",
"First",
"Executive",
",",
"a",
"big",
"buyer",
"of",
"the",
"high-risk",
",",
"high-yield",
"issues",
",",
"slid",
"2",
"to",
"12",
"1/4",
".",
"Among",
"other",
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[
"After",
"several",
"years",
"of",
"booming",
"business",
"with",
"China",
",",
"foreign",
"traders",
"are",
"bracing",
"for",
"the",
"biggest",
"slump",
"in",
"a",
"decade",
".",
"The",
"imposition",
"of",
"austerity",
"measures",
",",
"starting",
"last",
"October",
",",
"already",
"had",
"begun",
"to",
"pinch",
"when",
"the",
"massacre",
"in",
"Tiananmen",
"Square",
"on",
"June",
"4",
"and",
"subsequent",
"events",
"tugged",
"the",
"belt",
"far",
"tighter",
".",
"Foreign",
"lending",
"has",
"been",
"virtually",
"suspended",
"since",
"then",
",",
"choking",
"liquidity",
"and",
"hobbling",
"many",
"projects",
".",
"And",
"Beijing",
"has",
"pulled",
"back",
"on",
"domestic",
"loans",
"and",
"subsidies",
",",
"leaving",
"many",
"domestic",
"buyers",
"and",
"export-oriented",
"plants",
"strapped",
"for",
"cash",
".",
"Givaudan",
"Far",
"East",
"Ltd.",
",",
"a",
"Swiss",
"concern",
"that",
"sells",
"chemicals",
"to",
"shampoo",
"and",
"soap",
"factories",
"in",
"China",
",",
"typifies",
"the",
"problems",
".",
"Last",
"year",
"'s",
"retrenchment",
"dried",
"up",
"the",
"working",
"capital",
"of",
"Chinese",
"factories",
".",
"The",
"company",
"'s",
"sales",
"flattened",
"during",
"1989",
"'s",
"first",
"half",
".",
"The",
"June",
"killings",
"magnified",
"the",
"problems",
".",
"In",
"Canton",
",",
"Givaudan",
"'s",
"representative",
"office",
"received",
"no",
"orders",
"in",
"June",
".",
"At",
"first",
"it",
"attributed",
"the",
"slump",
"to",
"temporary",
"business",
"disruptions",
",",
"but",
"when",
"no",
"orders",
"were",
"logged",
"in",
"August",
"and",
"September",
",",
"manager",
"Donald",
"Lai",
"became",
"convinced",
"that",
"business",
"would",
"be",
"bad",
"for",
"many",
"months",
".",
"``",
"Things",
"have",
"grown",
"worse",
"since",
"June",
"4",
",",
"''",
"Mr.",
"Lai",
"says",
".",
"He",
"predicts",
"that",
"sales",
"will",
"drop",
"between",
"30",
"%",
"and",
"40",
"%",
"from",
"last",
"year",
"'s",
"$",
"3",
"million",
".",
"The",
"consumer-products",
"and",
"light-industrial",
"sectors",
"are",
"bearing",
"the",
"brunt",
"of",
"China",
"'s",
"austerity",
"measures",
",",
"and",
"foreign",
"companies",
"such",
"as",
"Givaudan",
"that",
"deal",
"with",
"those",
"industries",
"are",
"being",
"hit",
"the",
"hardest",
".",
"But",
"in",
"general",
",",
"all",
"foreign-trading",
"companies",
"are",
"feeling",
"the",
"pinch",
".",
"``",
"The",
"import",
"pie",
"will",
"shrink",
",",
"''",
"says",
"John",
"Kamm",
",",
"first",
"vice",
"president",
"of",
"the",
"American",
"Chamber",
"of",
"Commerce",
"in",
"Hong",
"Kong",
"and",
"a",
"China",
"trade",
"specialist",
".",
"``",
"On",
"the",
"down",
"side",
",",
"sales",
"could",
"fall",
"as",
"much",
"as",
"90",
"%",
"for",
"some",
"companies",
";",
"on",
"the",
"upper",
"side",
",",
"sales",
"will",
"be",
"flat",
".",
"''",
"China",
"'s",
"foreign",
"trade",
"has",
"gone",
"in",
"cycles",
"during",
"the",
"past",
"decade",
".",
"The",
"last",
"time",
"that",
"traders",
"experienced",
"a",
"trough",
"was",
"during",
"1985-86",
",",
"when",
"Beijing",
"imposed",
"tough",
"measures",
"to",
"curb",
"imports",
"and",
"conserve",
"foreign",
"exchange",
".",
"The",
"current",
"trough",
"is",
"expected",
"to",
"be",
"much",
"deeper",
",",
"because",
"Beijing",
"has",
"cut",
"off",
"domestic",
"funds",
"from",
"factories",
"for",
"the",
"first",
"time",
"to",
"slow",
"inflation",
".",
"In",
"addition",
",",
"the",
"suspension",
"of",
"loans",
"and",
"export",
"credits",
"from",
"foreign",
"governments",
"and",
"institutions",
"following",
"the",
"June",
"killings",
"have",
"been",
"a",
"big",
"setback",
".",
"``",
"The",
"freeze",
"on",
"new",
"lending",
"is",
"dealing",
"the",
"single",
"biggest",
"blow",
"to",
"trading",
",",
"''",
"says",
"Raymond",
"Wong",
",",
"China",
"manager",
"for",
"Mannesmann",
"AG",
",",
"a",
"West",
"German",
"machinery-trading",
"company",
".",
"Import",
"growth",
"from",
"the",
"year-earlier",
"months",
"slowed",
"to",
"16",
"%",
"in",
"July",
"and",
"7.1",
"%",
"in",
"August",
",",
"compared",
"with",
"an",
"average",
"growth",
"rate",
"of",
"26",
"%",
"in",
"the",
"first",
"half",
".",
"In",
"the",
"first",
"eight",
"months",
"of",
"1989",
",",
"imports",
"grew",
"21",
"%",
",",
"to",
"$",
"38.32",
"billion",
",",
"down",
"slightly",
"from",
"a",
"growth",
"rate",
"of",
"23",
"%",
"a",
"year",
"earlier",
".",
"The",
"picture",
"for",
"China",
"'s",
"exports",
"is",
"just",
"as",
"bleak",
",",
"mainly",
"because",
"of",
"the",
"domestic",
"credit",
"squeeze",
".",
"Exports",
"in",
"the",
"first",
"eight",
"months",
"grew",
"only",
"9",
"%",
",",
"to",
"$",
"31.48",
"billion",
",",
"compared",
"with",
"a",
"growth",
"rate",
"of",
"25",
"%",
"a",
"year",
"earlier",
",",
"according",
"to",
"Chinese",
"customs",
"figures",
".",
"The",
"threat",
"to",
"China",
"'s",
"balance",
"of",
"payments",
"is",
"further",
"aggravated",
"by",
"the",
"plunge",
"in",
"its",
"foreign-exchange",
"reserves",
",",
"excluding",
"gold",
"holdings",
".",
"The",
"reserves",
"dropped",
"for",
"the",
"first",
"time",
"in",
"recent",
"years",
",",
"to",
"$",
"14",
"billion",
"in",
"June",
"from",
"$",
"19",
"billion",
"in",
"April",
".",
"The",
"trend",
"has",
"prompted",
"Beijing",
"to",
"intensify",
"efforts",
"to",
"curb",
"imports",
".",
"In",
"recent",
"weeks",
",",
"China",
"'s",
"leaders",
"have",
"recentralized",
"trading",
"in",
"wool",
"and",
"scores",
"of",
"chemical",
"products",
"and",
"commodities",
".",
"The",
"Ministry",
"of",
"Foreign",
"Economic",
"Relations",
"and",
"Trade",
"set",
"up",
"a",
"special",
"bureau",
"last",
"month",
"to",
"monitor",
"the",
"issue",
"of",
"import",
"and",
"export",
"licenses",
".",
"Beijing",
"'s",
"periodic",
"clampdowns",
"on",
"imports",
"have",
"taught",
"many",
"trading",
"companies",
"that",
"the",
"best",
"way",
"to",
"get",
"through",
"the",
"drought",
"is",
"by",
"helping",
"China",
"export",
".",
"For",
"example",
",",
"Nissho",
"Iwai",
"Corp.",
",",
"one",
"of",
"the",
"biggest",
"Japanese",
"trading",
"houses",
",",
"now",
"buys",
"almost",
"twice",
"as",
"many",
"goods",
"from",
"China",
"as",
"it",
"sells",
"to",
"that",
"country",
".",
"Three",
"years",
"ago",
",",
"the",
"ratio",
"was",
"reversed",
".",
"But",
"the",
"strategy",
"is",
"n't",
"helping",
"much",
"this",
"time",
".",
"``",
"Both",
"sectors",
"of",
"imports",
"and",
"exports",
"look",
"just",
"as",
"bad",
",",
"''",
"says",
"Masahiko",
"Kitamura",
",",
"general",
"manager",
"of",
"Nissho",
"Iwai",
"'s",
"Canton",
"office",
".",
"He",
"expects",
"the",
"company",
"'s",
"trading",
"business",
"to",
"drop",
"as",
"much",
"as",
"40",
"%",
"this",
"year",
".",
"For",
"a",
"short",
"time",
"after",
"June",
"4",
",",
"it",
"appeared",
"that",
"the",
"trade",
"picture",
"would",
"remain",
"fairly",
"bright",
".",
"Many",
"foreign",
"trading",
"offices",
"in",
"Hong",
"Kong",
"were",
"swamped",
"with",
"telexes",
"and",
"telephone",
"calls",
"from",
"Chinese",
"trade",
"officials",
"urging",
"them",
"not",
"to",
"sever",
"ties",
".",
"Even",
"the",
"Bank",
"of",
"China",
",",
"which",
"normally",
"took",
"weeks",
"to",
"process",
"letters",
"of",
"credit",
",",
"was",
"settling",
"the",
"letters",
"at",
"record",
"speed",
"to",
"dispel",
"rumors",
"about",
"the",
"bank",
"'s",
"financial",
"health",
".",
"But",
"when",
"foreign",
"traders",
"tried",
"to",
"do",
"business",
",",
"they",
"discovered",
"that",
"the",
"eagerness",
"of",
"Chinese",
"trade",
"officials",
"was",
"just",
"a",
"smokescreen",
".",
"The",
"suspension",
"of",
"foreign",
"loans",
"has",
"weakened",
"the",
"buying",
"power",
"of",
"China",
"'s",
"national",
"trading",
"companies",
",",
"which",
"are",
"among",
"the",
"country",
"'s",
"biggest",
"importers",
".",
"Business",
"is",
"n't",
"any",
"better",
"on",
"the",
"provincial",
"or",
"municipal",
"level",
",",
"foreign",
"traders",
"say",
".",
"Shanghai",
"Investment",
"&",
"Trust",
"Co.",
",",
"known",
"as",
"Sitco",
",",
"is",
"the",
"city",
"'s",
"main",
"financier",
"for",
"trading",
"business",
".",
"Sitco",
"had",
"customarily",
"tapped",
"the",
"Japanese",
"bond",
"market",
"for",
"funds",
",",
"but",
"it",
"ca",
"n't",
"do",
"that",
"any",
"longer",
".",
"Foreign",
"traders",
"say",
"the",
"company",
"is",
"strapped",
"for",
"cash",
".",
"``",
"It",
"has",
"difficulties",
"paying",
"its",
"foreign",
"debts",
",",
"''",
"says",
"a",
"Hong",
"Kong",
"executive",
"who",
"is",
"familiar",
"with",
"Sitco",
"'s",
"business",
".",
"``",
"How",
"can",
"it",
"make",
"available",
"funds",
"for",
"purchases",
"?",
"''",
"Foreign",
"traders",
"also",
"say",
"many",
"of",
"China",
"'s",
"big",
"infrastructural",
"projects",
"have",
"been",
"canceled",
"or",
"postponed",
"because",
"of",
"the",
"squeeze",
"on",
"domestic",
"and",
"foreign",
"credit",
".",
"Albert",
"Lee",
",",
"a",
"veteran",
"trader",
"who",
"specializes",
"in",
"machinery",
"sales",
",",
"estimates",
"that",
"as",
"many",
"as",
"70",
"%",
"of",
"projects",
"that",
"had",
"obtained",
"approval",
"to",
"proceed",
"have",
"been",
"canceled",
"in",
"recent",
"months",
".",
"``",
"There",
"are",
"virtually",
"no",
"new",
"projects",
",",
"and",
"that",
"means",
"no",
"new",
"business",
"for",
"us",
",",
"''",
"he",
"says",
".",
"Even",
"when",
"new",
"lending",
"resumes",
",",
"foreign",
"exchange",
"would",
"still",
"be",
"tight",
"because",
"Beijing",
"will",
"likely",
"try",
"to",
"rein",
"in",
"foreign",
"borrowing",
",",
"which",
"has",
"grown",
"between",
"30",
"%",
"and",
"40",
"%",
"in",
"the",
"past",
"few",
"years",
".",
"And",
"foreign",
"creditors",
"are",
"likely",
"to",
"be",
"more",
"cautious",
"about",
"extending",
"new",
"loans",
"because",
"China",
"is",
"nearing",
"a",
"peak",
"repayment",
"period",
"as",
"many",
"loans",
"start",
"falling",
"due",
"in",
"the",
"next",
"two",
"to",
"five",
"years",
".",
"Another",
"reason",
"for",
"the",
"intensity",
"of",
"the",
"trade",
"problems",
"is",
"that",
"Beijing",
"has",
"extended",
"the",
"current",
"clampdown",
"on",
"imports",
"beyond",
"the",
"usual",
"target",
"of",
"consumer",
"products",
"to",
"include",
"steel",
",",
"chemical",
"fertilizers",
"and",
"plastics",
".",
"These",
"have",
"been",
"among",
"the",
"country",
"'s",
"leading",
"imports",
",",
"particularly",
"last",
"year",
"when",
"there",
"were",
"shortages",
"that",
"led",
"many",
"traders",
"to",
"buy",
"heavily",
"and",
"pay",
"dearly",
".",
"But",
"the",
"shortages",
"also",
"spawned",
"rampant",
"speculation",
"and",
"spiraling",
"prices",
".",
"To",
"stem",
"speculation",
",",
"Beijing",
"imposed",
"ceiling",
"prices",
"that",
"went",
"into",
"effect",
"earlier",
"this",
"year",
".",
"Traders",
"who",
"had",
"bought",
"the",
"goods",
"at",
"prices",
"above",
"the",
"ceiling",
"do",
"n't",
"want",
"to",
"take",
"a",
"loss",
"on",
"resales",
"and",
"are",
"holding",
"onto",
"their",
"stock",
".",
"The",
"resulting",
"stockpiling",
"has",
"depressed",
"the",
"market",
".",
"But",
"Beijing",
"ca",
"n't",
"cut",
"back",
"on",
"such",
"essential",
"imports",
"as",
"raw",
"materials",
"for",
"too",
"long",
"without",
"hampering",
"the",
"country",
"'s",
"export",
"business",
".",
"Mr.",
"Kamm",
",",
"the",
"China",
"trade",
"expert",
",",
"estimates",
"that",
"as",
"much",
"as",
"50",
"%",
"of",
"Guangdong",
"'s",
"exports",
"is",
"made",
"up",
"of",
"processed",
"imported",
"raw",
"materials",
"."
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[
"After",
"watching",
"interest",
"in",
"the",
"sport",
"plummet",
"for",
"years",
",",
"the",
"ski",
"industry",
"is",
"trying",
"to",
"give",
"itself",
"a",
"lift",
".",
"Across",
"the",
"country",
",",
"resorts",
"are",
"using",
"everything",
"from",
"fireworks",
"to",
"classical-music",
"concerts",
"to",
"attract",
"new",
"customers",
".",
"Some",
"have",
"built",
"health",
"spas",
",",
"business",
"centers",
"and",
"shopping",
"villages",
"so",
"visitors",
"have",
"more",
"to",
"do",
"than",
"ski",
".",
"And",
"this",
"week",
",",
"the",
"industry",
"'s",
"efforts",
"will",
"go",
"national",
"for",
"the",
"first",
"time",
"when",
"it",
"unveils",
"a",
"$",
"7",
"million",
"advertising",
"campaign",
".",
"Such",
"efforts",
"--",
"unheard",
"of",
"only",
"a",
"few",
"years",
"ago",
"--",
"are",
"the",
"latest",
"attempts",
"to",
"revive",
"the",
"sagging",
"$",
"1.76",
"billion",
"U.S.",
"ski",
"industry",
".",
"Since",
"the",
"start",
"of",
"the",
"decade",
",",
"lift-ticket",
"sales",
"have",
"grown",
"only",
"3",
"%",
"a",
"year",
"on",
"average",
",",
"compared",
"with",
"16",
"%",
"annual",
"growth",
"rates",
"in",
"the",
"'60s",
"and",
"'70s",
".",
"Last",
"season",
",",
"lift-ticket",
"sales",
"fell",
"for",
"the",
"first",
"time",
"in",
"seven",
"years",
".",
"By",
"some",
"estimates",
",",
"nearly",
"a",
"fourth",
"of",
"all",
"U.S.",
"ski",
"areas",
"have",
"been",
"forced",
"to",
"shut",
"down",
"since",
"the",
"early",
"'80s",
".",
"Competition",
"and",
"mounting",
"insurance",
"and",
"equipment",
"costs",
"have",
"been",
"the",
"undoing",
"of",
"many",
"resorts",
".",
"But",
"another",
"big",
"problem",
"has",
"been",
"the",
"aging",
"of",
"baby",
"boomers",
".",
"Skiing",
",",
"after",
"all",
",",
"has",
"mainly",
"been",
"for",
"the",
"young",
"and",
"daring",
"and",
"many",
"baby",
"boomers",
"have",
"outgrown",
"skiing",
"or",
"have",
"too",
"many",
"family",
"responsibilities",
"to",
"stick",
"with",
"the",
"sport",
".",
"In",
"its",
"new",
"ad",
"campaign",
",",
"created",
"by",
"D'Arcy",
"Masius",
"Benton",
"&",
"Bowles",
"Inc.",
",",
"Chicago",
",",
"the",
"ski",
"industry",
"is",
"trying",
"to",
"change",
"its",
"image",
"as",
"a",
"sport",
"primarily",
"for",
"young",
"white",
"people",
".",
"One",
"60-second",
"TV",
"spot",
"features",
"a",
"diverse",
"group",
"of",
"skiers",
"gracefully",
"gliding",
"down",
"sun-drenched",
"slopes",
":",
"senior",
"citizens",
",",
"minorities",
",",
"families",
"with",
"children",
"--",
"even",
"a",
"blind",
"skier",
".",
"``",
"Ski",
"school",
"is",
"great",
",",
"''",
"cries",
"out",
"a",
"tot",
",",
"bundled",
"in",
"a",
"snowsuit",
"as",
"he",
"plows",
"down",
"a",
"bunny",
"slope",
".",
"``",
"You",
"'ll",
"never",
"know",
"'til",
"you",
"try",
",",
"''",
"says",
"a",
"black",
"skier",
".",
"``",
"We",
"used",
"to",
"show",
"some",
"hot-dog",
"skier",
"in",
"his",
"twenties",
"or",
"thirties",
"going",
"over",
"the",
"edge",
"of",
"a",
"cliff",
",",
"''",
"says",
"Kathe",
"Dillmann",
",",
"a",
"spokeswoman",
"for",
"the",
"United",
"Ski",
"Industries",
"Association",
",",
"the",
"trade",
"group",
"sponsoring",
"the",
"campaign",
".",
"Ski",
"promotions",
"have",
"traditionally",
"avoided",
"the",
"touchy",
"issue",
"of",
"safety",
".",
"But",
"the",
"new",
"commercials",
"deal",
"with",
"it",
"indirectly",
"by",
"showing",
"a",
"woman",
"smiling",
"as",
"she",
"tries",
"to",
"get",
"up",
"from",
"a",
"fall",
".",
"``",
"We",
"wanted",
"to",
"show",
"it",
"'s",
"okay",
"if",
"you",
"fall",
",",
"''",
"says",
"Ms.",
"Dillmann",
".",
"``",
"Most",
"people",
"think",
"if",
"you",
"slip",
",",
"you",
"'ll",
"wind",
"up",
"in",
"a",
"body",
"cast",
".",
"''",
"The",
"ad",
"campaign",
"represents",
"an",
"unusual",
"spirit",
"of",
"cooperation",
"among",
"resorts",
"and",
"ski",
"equipment",
"makers",
";",
"normally",
",",
"they",
"only",
"run",
"ads",
"hyping",
"their",
"own",
"products",
"and",
"facilities",
".",
"But",
"in",
"these",
"crunch",
"times",
"for",
"the",
"ski",
"industry",
",",
"some",
"resorts",
",",
"such",
"as",
"the",
"Angel",
"Fire",
",",
"Red",
"River",
"and",
"Taos",
"ski",
"areas",
"in",
"New",
"Mexico",
",",
"have",
"even",
"started",
"shuttle-busing",
"skiers",
"to",
"each",
"other",
"'s",
"slopes",
"and",
"next",
"year",
"plan",
"to",
"sell",
"tickets",
"good",
"for",
"all",
"local",
"lifts",
".",
"Many",
"resorts",
"also",
"are",
"focusing",
"more",
"on",
"the",
"service",
"side",
"of",
"their",
"business",
".",
"Since",
"40",
"%",
"of",
"skiers",
"are",
"parents",
",",
"many",
"slopes",
"are",
"building",
"nurseries",
",",
"expanding",
"ski",
"schools",
"and",
"adding",
"entertainment",
"for",
"kids",
".",
"Vail",
",",
"Colo.",
",",
"now",
"has",
"a",
"playland",
"that",
"looks",
"like",
"an",
"old",
"mining",
"town",
";",
"kids",
"can",
"ski",
"through",
"and",
"pan",
"for",
"fool",
"'s",
"gold",
".",
"For",
"$",
"15",
",",
"they",
"can",
"enjoy",
"their",
"own",
"nightly",
"entertainment",
",",
"with",
"dinner",
",",
"without",
"mom",
"and",
"dad",
".",
"A",
"few",
"years",
"ago",
",",
"parents",
"usually",
"had",
"to",
"hire",
"a",
"sitter",
"or",
"take",
"turns",
"skiing",
"while",
"one",
"spouse",
"stayed",
"with",
"the",
"children",
".",
"``",
"Most",
"parents",
"who",
"had",
"to",
"go",
"through",
"that",
"never",
"came",
"back",
",",
"''",
"says",
"Michael",
"Shannon",
",",
"president",
"of",
"Vail",
"Associates",
"Inc.",
",",
"which",
"owns",
"and",
"operates",
"the",
"Vail",
"and",
"nearby",
"Beaver",
"Creek",
"resorts",
".",
"To",
"make",
"skiing",
"more",
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"for",
"time-strapped",
"visitors",
",",
"several",
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"are",
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"or",
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"own",
"travel",
"agencies",
".",
"In",
"one",
"phone",
"call",
",",
"ski",
"buffs",
"can",
"make",
"hotel",
"and",
"restaurant",
"reservations",
",",
"buy",
"lift",
"tickets",
",",
"rent",
"ski",
"equipment",
"and",
"sign",
"up",
"for",
"lessons",
".",
"And",
"resorts",
"are",
"adding",
"other",
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",",
"such",
"as",
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"restaurants",
",",
"health",
"spas",
"and",
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"packages",
"with",
"a",
"twist",
".",
"During",
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"Carnival",
"week",
",",
"for",
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",",
"visitors",
"at",
"Sunday",
"River",
"in",
"Maine",
"can",
"take",
"a",
"hot-air",
"balloon",
"ride",
".",
"``",
"People",
"these",
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"want",
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"else",
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"and",
"sit",
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",",
"''",
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"Don",
"Borgeson",
",",
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"Fire",
",",
"N.M.",
"'s",
"Chamber",
"of",
"Commerce",
".",
"The",
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"industry",
"hopes",
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"number",
"of",
"skiers",
"by",
"3.5",
"million",
"to",
"about",
"21.7",
"million",
"in",
"the",
"next",
"five",
"years",
"with",
"its",
"latest",
"ads",
"and",
"promotions",
".",
"But",
"some",
"think",
"that",
"'s",
"being",
"overly",
"optimistic",
".",
"For",
"one",
"thing",
",",
"it",
"may",
"be",
"tough",
"to",
"attract",
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"is",
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":",
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"ticket",
"can",
"cost",
"up",
"to",
"$",
"35",
"a",
"day",
"and",
"equipment",
"prices",
"are",
"rising",
".",
"And",
"most",
"vacationers",
"still",
"prefer",
"a",
"warm",
"climate",
"for",
"their",
"winter",
"excursions",
".",
"An",
"American",
"Express",
"Co.",
"survey",
"of",
"its",
"travel",
"agents",
"revealed",
"that",
"only",
"34",
"%",
"believe",
"their",
"clients",
"will",
"pick",
"a",
"trip",
"this",
"winter",
"based",
"on",
"the",
"availability",
"of",
"winter",
"sports",
",",
"as",
"opposed",
"to",
"69",
"%",
"who",
"think",
"that",
"warm-weather",
"sports",
"will",
"be",
"the",
"deciding",
"factor",
".",
"``",
"Even",
"if",
"they",
"could",
"bring",
"in",
"that",
"many",
"new",
"skiers",
",",
"I",
"do",
"n't",
"know",
"if",
"-LCB-",
"the",
"industry",
"-RCB-",
"could",
"handle",
"that",
"kind",
"of",
"an",
"increase",
",",
"''",
"says",
"I.",
"William",
"Berry",
",",
"editor",
"and",
"publisher",
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"the",
"Ski",
"Industry",
"Letter",
"in",
"Katonah",
",",
"N.Y",
".",
"``",
"Most",
"people",
"will",
"come",
"on",
"the",
"weekend",
",",
"the",
"slopes",
"will",
"be",
"overcrowded",
"and",
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"-LCB-",
"new",
"skiers",
"-RCB-",
"wo",
"n't",
"come",
"back",
"."
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"obl:npmod",
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"case",
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"appos",
"case",
"compound",
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"mark",
"xcomp",
"det",
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"mark",
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"acl",
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"obl",
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] |
[
"Battle-tested",
"Japanese",
"industrial",
"managers",
"here",
"always",
"buck",
"up",
"nervous",
"newcomers",
"with",
"the",
"tale",
"of",
"the",
"first",
"of",
"their",
"countrymen",
"to",
"visit",
"Mexico",
",",
"a",
"boatload",
"of",
"samurai",
"warriors",
"blown",
"ashore",
"375",
"years",
"ago",
".",
"``",
"From",
"the",
"beginning",
",",
"it",
"took",
"a",
"man",
"with",
"extraordinary",
"qualities",
"to",
"succeed",
"in",
"Mexico",
",",
"''",
"says",
"Kimihide",
"Takimura",
",",
"president",
"of",
"Mitsui",
"group",
"'s",
"Kensetsu",
"Engineering",
"Inc.",
"unit",
".",
"Here",
"in",
"this",
"new",
"center",
"for",
"Japanese",
"assembly",
"plants",
"just",
"across",
"the",
"border",
"from",
"San",
"Diego",
",",
"turnover",
"is",
"dizzying",
",",
"infrastructure",
"shoddy",
",",
"bureaucracy",
"intense",
".",
"Even",
"after-hours",
"drag",
";",
"``",
"karaoke",
"''",
"bars",
",",
"where",
"Japanese",
"revelers",
"sing",
"over",
"recorded",
"music",
",",
"are",
"prohibited",
"by",
"Mexico",
"'s",
"powerful",
"musicians",
"union",
".",
"Still",
",",
"20",
"Japanese",
"companies",
",",
"including",
"giants",
"such",
"as",
"Sanyo",
"Industries",
"Corp.",
",",
"Matsushita",
"Electronics",
"Components",
"Corp.",
"and",
"Sony",
"Corp.",
"have",
"set",
"up",
"shop",
"in",
"the",
"state",
"of",
"Northern",
"Baja",
"California",
".",
"Keeping",
"the",
"Japanese",
"happy",
"will",
"be",
"one",
"of",
"the",
"most",
"important",
"tasks",
"facing",
"conservative",
"leader",
"Ernesto",
"Ruffo",
"when",
"he",
"takes",
"office",
"Nov.",
"1",
",",
"as",
"the",
"first",
"opposition",
"governor",
"in",
"Mexico",
"'s",
"modern",
"history",
".",
"Mexico",
",",
"with",
"its",
"desperate",
"need",
"for",
"investment",
",",
"and",
"Japan",
",",
"with",
"its",
"huge",
"budget",
"surplus",
",",
"would",
"seem",
"like",
"a",
"perfect",
"match",
".",
"But",
"the",
"two",
"countries",
"remain",
"separated",
"by",
"a",
"cultural",
"barrier",
"wider",
"than",
"the",
"ocean",
".",
"Conservative",
"Japanese",
"investors",
"are",
"put",
"off",
"by",
"what",
"they",
"consider",
"Mexico",
"'s",
"restrictive",
"investment",
"regulations",
"and",
"loose",
"work",
"habits",
".",
"From",
"the",
"Mexicans",
"'",
"viewpoint",
",",
"vaunted",
"tactics",
"of",
"methodical",
"Japanese",
"managers",
"do",
"n't",
"count",
"for",
"much",
"in",
"a",
"land",
"where",
"a",
"saying",
"says",
"``",
"there",
"are",
"no",
"fixed",
"rules",
".",
"''",
"Japan",
"ranks",
"as",
"only",
"the",
"fourth",
"largest",
"foreign",
"investor",
"in",
"Mexico",
",",
"with",
"5",
"%",
"of",
"the",
"total",
"investments",
".",
"That",
"is",
"just",
"1",
"%",
"of",
"all",
"the",
"money",
"Japan",
"has",
"invested",
"abroad",
".",
"Mexican",
"President",
"Carlos",
"Salinas",
"de",
"Gortari",
"would",
"like",
"to",
"change",
"that",
".",
"The",
"young",
"president",
"so",
"admires",
"Japanese",
"discipline",
"that",
"he",
"sends",
"his",
"children",
"to",
"a",
"Japanese",
"school",
"in",
"Mexico",
"City",
".",
"He",
"already",
"has",
"finagled",
"a",
"$",
"2",
"billion",
"loan",
"from",
"the",
"Japanese",
"government",
".",
"But",
"Mexico",
"urgently",
"needs",
"more",
"help",
".",
"Mr.",
"Salinas",
"'s",
"unpopular",
"Institutional",
"Revolutionary",
"Party",
",",
"or",
"PRI",
",",
"faces",
"congressional",
"elections",
"in",
"1991",
".",
"For",
"the",
"PRI",
"to",
"stand",
"a",
"chance",
",",
"Mr.",
"Salinas",
"has",
"to",
"press",
"on",
"with",
"an",
"economic",
"program",
"that",
"so",
"far",
"has",
"succeeded",
"in",
"lowering",
"inflation",
"and",
"providing",
"moderate",
"economic",
"growth",
".",
"But",
"maintaining",
"the",
"key",
"components",
"of",
"his",
"strategy",
"--",
"a",
"stable",
"exchange",
"rate",
"and",
"high",
"level",
"of",
"imports",
"--",
"will",
"consume",
"enormous",
"amounts",
"of",
"foreign",
"exchange",
".",
"Mr.",
"Salinas",
"needs",
"big",
"investment",
"inflows",
"--",
"quickly",
".",
"The",
"problem",
"is",
"that",
"Japanese",
"businesses",
"make",
"decisions",
"with",
"a",
"view",
"well",
"beyond",
"the",
"coming",
"months",
"that",
"weigh",
"so",
"heavily",
"on",
"Mr.",
"Salinas",
".",
"``",
"The",
"Japanese",
"will",
"come",
"to",
"Mexico",
",",
"but",
"not",
"immediately",
",",
"''",
"says",
"Kazushige",
"Suzuki",
",",
"director-general",
"of",
"the",
"Japanese",
"External",
"Trade",
"Organization",
"in",
"Mexico",
".",
"If",
"not",
"now",
",",
"when",
"?",
"``",
"When",
"the",
"fruit",
"is",
"ripe",
",",
"it",
"falls",
"from",
"the",
"tree",
"by",
"itself",
",",
"''",
"he",
"says",
".",
"Pressed",
"on",
"the",
"matter",
",",
"he",
"is",
"more",
"specific",
".",
"``",
"There",
"will",
"be",
"big",
"Japanese",
"investments",
"probably",
"five",
"to",
"10",
"years",
"from",
"now",
".",
"''",
"Ryukichi",
"Imai",
",",
"Japan",
"'s",
"ambassador",
"to",
"Mexico",
",",
"agrees",
"that",
"Mexico",
"may",
"be",
"too",
"eager",
".",
"``",
"There",
"seems",
"to",
"be",
"a",
"presumption",
"in",
"some",
"sectors",
"of",
"(",
"Mexico",
"'s",
")",
"government",
"that",
"there",
"is",
"a",
"lot",
"of",
"Japanese",
"money",
"waiting",
"behind",
"the",
"gate",
",",
"and",
"that",
"by",
"slightly",
"opening",
"the",
"gate",
",",
"that",
"money",
"will",
"enter",
"Mexico",
".",
"I",
"do",
"n't",
"think",
"that",
"is",
"the",
"case",
".",
"''",
"Mexican",
"officials",
"maintain",
"the",
"Japanese",
"reserve",
"is",
"only",
"a",
"result",
"of",
"unfamiliarity",
".",
"``",
"Because",
"of",
"distance",
",",
"it",
"takes",
"a",
"while",
"for",
"them",
"to",
"appreciate",
"the",
"economic",
"stability",
"we",
"'ve",
"achieved",
",",
"''",
"says",
"one",
"economic",
"policymaker",
".",
"Mexico",
"is",
"sending",
"a",
"number",
"of",
"missions",
"to",
"Japan",
"looking",
"for",
"a",
"major",
"breakthrough",
"investment",
"in",
"telecommunications",
",",
"petrochemicals",
"or",
"tourism",
".",
"It",
"is",
"hoped",
"that",
"other",
"Japanese",
"would",
"then",
"follow",
"the",
"leader",
".",
"But",
"Japanese",
"investors",
"say",
"that",
"their",
"reluctance",
"to",
"invest",
"stems",
"not",
"only",
"from",
"concerns",
"about",
"Mexico",
"'s",
"economic",
"outlook",
",",
"but",
"also",
"reservations",
"about",
"Mexico",
"'s",
"recently",
"revamped",
"investment",
"law",
".",
"Unable",
"to",
"get",
"a",
"new",
"law",
"through",
"a",
"congress",
"with",
"a",
"strong",
"leftist",
"bloc",
",",
"Mexico",
"jury-rigged",
"the",
"existing",
"law",
"'s",
"regulations",
".",
"It",
"created",
"special",
"20-year",
"trusts",
"to",
"allow",
"foreigners",
"100",
"%",
"ownership",
"in",
"some",
"once-closed",
"industries",
".",
"It",
"also",
"made",
"artful",
"use",
"of",
"semantics",
",",
"redefining",
"as",
"non-strategic",
"industries",
"some",
"that",
"had",
"been",
"in",
"the",
"national",
"domain",
".",
"``",
"Those",
"devices",
"do",
"n't",
"give",
"sufficient",
"certainty",
"to",
"our",
"bosses",
"in",
"Japan",
",",
"''",
"says",
"Yasuo",
"Nakamura",
",",
"representative",
"of",
"the",
"Industrial",
"Bank",
"of",
"Japan",
".",
"Mr.",
"Nakamura",
"cites",
"the",
"case",
"of",
"a",
"customer",
"who",
"wants",
"to",
"build",
"a",
"giant",
"tourism",
"complex",
"in",
"Baja",
"and",
"has",
"been",
"trying",
"for",
"eight",
"years",
"to",
"get",
"around",
"Mexican",
"restrictions",
"on",
"foreign",
"ownership",
"of",
"beachfront",
"property",
".",
"He",
"could",
"develop",
"the",
"beach",
"through",
"a",
"trust",
",",
"but",
"instead",
"is",
"trying",
"have",
"his",
"grandson",
"become",
"a",
"naturalized",
"Mexican",
"so",
"his",
"family",
"gains",
"direct",
"control",
".",
"Some",
"say",
"the",
"best",
"hope",
"for",
"the",
"Mexicans",
"is",
"catching",
"the",
"eye",
"of",
"Japan",
"by",
"promoting",
"the",
"one",
"industry",
"the",
"Japanese",
"clearly",
"like",
"--",
"the",
"border",
"assembly",
"plants",
",",
"known",
"as",
"``",
"maquiladoras",
",",
"''",
"which",
"are",
"open",
"to",
"100",
"%",
"foreign",
"control",
".",
"``",
"We",
"must",
"do",
"more",
"to",
"help",
"the",
"Japanese",
"here",
"in",
"Baja",
"if",
"we",
"want",
"them",
"to",
"invest",
"elsewhere",
",",
"''",
"says",
"Mr.",
"Ruffo",
",",
"the",
"governor-elect",
"of",
"the",
"National",
"Action",
"Party",
"and",
"himself",
"a",
"succesful",
"businessman",
".",
"Plant",
"operators",
"are",
"heartened",
"by",
"Mr.",
"Ruffo",
"'s",
"pledge",
"to",
"cut",
"corruption",
"associated",
"with",
"the",
"ruling",
"party",
"officials",
".",
"But",
"Mr.",
"Ruffo",
"frets",
"that",
"an",
"even",
"bigger",
"problem",
"could",
"be",
"protectionism",
"from",
"the",
"U.S.",
",",
"where",
"some",
"politicians",
"oppose",
"what",
"they",
"consider",
"Japanese",
"efforts",
"to",
"use",
"maquiladoras",
"to",
"crack",
"the",
"U.S.",
"market",
"through",
"the",
"back",
"door",
"."
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",",
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"Credit",
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",",
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".",
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",",
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"an",
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"investor",
".",
"During",
"the",
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",",
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[
"Greece",
"'s",
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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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",",
"the",
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"--",
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"Communist",
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":",
"PASOK",
"(",
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",",
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",",
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",",
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".",
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"ex",
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",",
"however",
",",
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",",
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",",
"not",
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"George",
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",",
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",",
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",",
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".",
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"unanswered",
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"are",
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"received",
"$",
"23",
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"Bank",
"of",
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"an",
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",",
"as",
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";",
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"the",
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"ordered",
"state",
"agencies",
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"57",
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"then",
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"and",
",",
"what",
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".",
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"so",
"heavily",
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"affair",
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"PASOK",
"members",
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"Parliament",
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"to",
"refer",
"them",
"to",
"the",
"special",
"court",
".",
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"eluding",
"parliamentary",
"probe",
"was",
"the",
"case",
"of",
"millions",
"of",
"drachmas",
"Mr.",
"Koskotas",
"funneled",
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"New",
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"coffers",
".",
"In",
"the",
"end",
",",
"the",
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"produced",
"only",
"circumstantial",
"evidence",
"and",
"``",
"indications",
"''",
"that",
"point",
"to",
"PASOK",
",",
"not",
"clinching",
"proof",
".",
"On",
"another",
"issue",
",",
"Greeks",
"were",
"told",
"how",
"their",
"national",
"intelligence",
"agency",
",",
"the",
"EYP",
",",
"regularly",
"monitored",
"the",
"telephone",
"conversations",
"of",
"prominent",
"figures",
",",
"including",
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"opposition",
"politicians",
",",
"journalists",
"and",
"PASOK",
"cabinet",
"members",
".",
"Despite",
"convincing",
"arguments",
",",
"it",
"was",
"never",
"established",
"that",
"Mr.",
"Papandreou",
"personally",
"ordered",
"or",
"directed",
"the",
"wiretaps",
".",
"The",
"central",
"weakness",
"of",
"the",
"``",
"scandals",
"''",
"debates",
"was",
"pointed",
"up",
"especially",
"well",
"when",
"discussions",
"focused",
"on",
"arms",
"deals",
"and",
"kickbacks",
".",
"The",
"coalition",
"government",
"tried",
"to",
"show",
"that",
"PASOK",
"ministers",
"had",
"received",
"hefty",
"sums",
"for",
"OKing",
"the",
"purchase",
"of",
"F-16",
"Fighting",
"Falcon",
"and",
"Mirage",
"2000",
"combat",
"aircraft",
",",
"produced",
"by",
"the",
"U.S.based",
"General",
"Dynamics",
"Corp.",
"and",
"France",
"'s",
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"Marcel",
"Dassault",
",",
"respectively",
".",
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",",
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"nor",
"Dassault",
"could",
"be",
"expected",
"to",
"hamper",
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"future",
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"by",
"making",
"disclosures",
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"paid",
"(",
"or",
"not",
")",
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"officials",
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"services",
"rendered",
".",
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"it",
"seems",
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"Mr.",
"Mitsotakis",
"and",
"his",
"communist",
"chums",
"may",
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"PASOK",
",",
"whether",
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",",
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"as",
"a",
"witch",
"hunt",
"at",
"Mr.",
"Papandreou",
"'s",
"expense",
".",
"But",
"while",
"verbal",
"high",
"jinks",
"alone",
"wo",
"n't",
"help",
"PASOK",
"regain",
"power",
",",
"Mr.",
"Papandreou",
"should",
"never",
"be",
"underestimated",
".",
"First",
"came",
"his",
"predictable",
"fusillade",
":",
"He",
"charged",
"the",
"Coalition",
"of",
"the",
"Left",
"and",
"Progress",
"had",
"sold",
"out",
"its",
"leftist",
"tenets",
"by",
"collaborating",
"in",
"a",
"right-wing",
"plot",
"aimed",
"at",
"ousting",
"PASOK",
"and",
"thwarting",
"the",
"course",
"of",
"socialism",
"in",
"Greece",
".",
"Then",
",",
"to",
"buttress",
"his",
"credibility",
"with",
"the",
"left",
",",
"he",
"enticed",
"some",
"smaller",
"leftist",
"parties",
"to",
"stand",
"for",
"election",
"under",
"the",
"PASOK",
"banner",
".",
"Next",
",",
"he",
"continued",
"to",
"court",
"the",
"communists",
"--",
"many",
"of",
"whom",
"feel",
"betrayed",
"by",
"the",
"left-right",
"coalition",
"'s",
"birth",
"--",
"by",
"bringing",
"into",
"PASOK",
"a",
"well-respected",
"Communist",
"Party",
"candidate",
".",
"For",
"balance",
",",
"and",
"in",
"hopes",
"of",
"gaining",
"some",
"disaffected",
"centrist",
"votes",
",",
"he",
"managed",
"to",
"attract",
"a",
"former",
"New",
"Democracy",
"Party",
"representative",
"and",
"known",
"political",
"enemy",
"of",
"Mr.",
"Mitsotakis",
".",
"Thus",
"PASOK",
"heads",
"for",
"the",
"polls",
"not",
"only",
"with",
"diminished",
"scandal-stench",
",",
"but",
"also",
"with",
"``",
"seals",
"of",
"approval",
"''",
"from",
"representatives",
"of",
"its",
"harshest",
"accusers",
".",
"Crucial",
"as",
"these",
"elections",
"are",
"for",
"Greece",
",",
"pressing",
"issues",
"of",
"state",
"are",
"getting",
"lost",
"in",
"the",
"shuffle",
".",
"The",
"country",
"'s",
"future",
"NATO",
"participation",
"remains",
"unsure",
",",
"for",
"instance",
".",
"Greece",
"also",
"must",
"revamp",
"major",
"pieces",
"of",
"legislation",
"in",
"preparation",
"for",
"the",
"1992",
"targets",
"of",
"heightened",
"Common",
"Market",
"cooperation",
".",
"Greece",
"'s",
"bilateral",
"relations",
"with",
"the",
"U.S.",
"need",
"attention",
"soon",
"as",
"well",
".",
"For",
"one",
",",
"the",
"current",
"accord",
"concerning",
"U.S.",
"military",
"bases",
"in",
"Greece",
"lapses",
"in",
"May",
"1990",
".",
"Negotiations",
"for",
"a",
"new",
"agreement",
"were",
"frozen",
"before",
"the",
"June",
"elections",
",",
"but",
"the",
"clock",
"is",
"running",
".",
"Another",
"matter",
"of",
"concern",
"is",
"the",
"extradition",
"of",
"Mohammed",
"Rashid",
",",
"a",
"Palestinian",
"terrorist",
"who",
"is",
"wanted",
"in",
"the",
"U.S.",
"for",
"the",
"1982",
"bombing",
"of",
"a",
"Pan",
"American",
"Airways",
"flight",
".",
"The",
"Greek",
"courts",
"have",
"decided",
"in",
"favor",
"of",
"extradition",
"in",
"the",
"Rashid",
"case",
",",
"but",
"the",
"matter",
"awaits",
"final",
"approval",
"from",
"Greece",
"'s",
"next",
"justice",
"minister",
".",
"The",
"Greeks",
"seem",
"barely",
"aware",
"of",
"the",
"importance",
"of",
"the",
"case",
"as",
"a",
"litmus",
"test",
"of",
"whether",
"Greece",
"will",
"be",
"counted",
"in",
"or",
"out",
"for",
"international",
"efforts",
"to",
"combat",
"terrorism",
".",
"That",
"PASOK",
"could",
"win",
"the",
"elections",
"outright",
"is",
"improbable",
";",
"the",
"Greek",
"press",
",",
"previously",
"eager",
"to",
"palm",
"off",
"PASOK",
"'s",
"line",
",",
"has",
"turned",
"on",
"Mr.",
"Papandreou",
"with",
"a",
"wild-eyed",
"vengeance",
".",
"Yet",
"the",
"possibility",
"of",
"another",
"lash-up",
"government",
"is",
"all",
"too",
"real",
".",
"If",
"Mr.",
"Papandreou",
"becomes",
"the",
"major",
"opposition",
"leader",
",",
"he",
"could",
"hamstring",
"a",
"conservative-led",
"coalition",
".",
"Also",
",",
"he",
"could",
"force",
"new",
"elections",
"early",
"next",
"year",
"by",
"frustrating",
"the",
"procedures",
"for",
"the",
"election",
"of",
"the",
"president",
"of",
"the",
"republic",
"in",
"March",
".",
"New",
"Democracy",
"has",
"once",
"again",
"glaringly",
"underestimated",
"the",
"opponent",
"and",
"linked",
"its",
"own",
"prospects",
"to",
"negative",
"reaction",
"against",
"PASOK",
",",
"forgetting",
"to",
"tend",
"to",
"either",
"program",
"clarity",
"or",
"the",
"rectification",
"of",
"internal",
"squabbles",
".",
"As",
"for",
"Mr.",
"Papandreou",
"?",
"He",
"'s",
"not",
"exactly",
"sitting",
"pretty",
"at",
"this",
"stage",
".",
"But",
"since",
"he",
"is",
"undoubtedly",
"one",
"of",
"the",
"most",
"proficient",
"bull",
"slingers",
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",",
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"view",
"him",
"as",
"sidelined",
",",
"but",
"certainly",
"not",
"yet",
"eliminated",
".",
"Mr.",
"Carpenter",
",",
"a",
"regional",
"correspondent",
"for",
"National",
"Review",
",",
"has",
"lived",
"in",
"Athens",
"since",
"1981",
"."
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[
"Housing",
"construction",
"sank",
"in",
"September",
"to",
"its",
"lowest",
"level",
"since",
"the",
"last",
"recession",
",",
"the",
"Commerce",
"Department",
"reported",
".",
"Work",
"began",
"on",
"homes",
"and",
"apartments",
"at",
"an",
"annual",
"rate",
"of",
"1,263,000",
"units",
"last",
"month",
",",
"down",
"5.2",
"%",
"from",
"August",
",",
"the",
"department",
"said",
".",
"The",
"September",
"decline",
"followed",
"an",
"even",
"steeper",
"drop",
"of",
"6.2",
"%",
"in",
"August",
"and",
"left",
"housing",
"starts",
"at",
"their",
"weakest",
"since",
"October",
"1982",
",",
"when",
"the",
"country",
"was",
"nearing",
"the",
"end",
"of",
"a",
"recession",
".",
"Originally",
"the",
"department",
"had",
"reported",
"the",
"August",
"decline",
"as",
"5",
"%",
".",
"The",
"numbers",
"suggest",
"that",
"the",
"housing",
"industry",
"is",
"still",
"suffering",
"the",
"effects",
"of",
"the",
"Federal",
"Reserve",
"'s",
"battle",
"against",
"inflation",
".",
"The",
"industry",
"had",
"shown",
"signs",
"of",
"recovery",
"this",
"summer",
",",
"after",
"the",
"central",
"bank",
"began",
"to",
"relax",
"its",
"clamp",
"on",
"credit",
",",
"allowing",
"interest",
"rates",
"to",
"drop",
"a",
"bit",
"after",
"pushing",
"them",
"up",
"for",
"a",
"year",
".",
"Sales",
"of",
"new",
"homes",
"rose",
"and",
"inventories",
"of",
"houses",
",",
"which",
"had",
"been",
"climbing",
",",
"dropped",
".",
"But",
"last",
"month",
"new",
"construction",
"in",
"all",
"types",
"of",
"homes",
"waned",
",",
"from",
"single-family",
"houses",
"to",
"large",
"apartment",
"complexes",
".",
"``",
"It",
"'s",
"pretty",
"much",
"weak",
"across",
"the",
"board",
",",
"''",
"said",
"Martin",
"Regalia",
",",
"chief",
"economist",
"of",
"the",
"National",
"Council",
"of",
"Savings",
"Institutions",
".",
"Mr.",
"Regalia",
"said",
"the",
"industry",
"may",
"be",
"reluctant",
"to",
"step",
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[
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",",
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"Tu",
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",",
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"Co",
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"As",
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",",
"waiting",
"lists",
"of",
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"are",
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"all",
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"--",
"Hyundai",
",",
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",",
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"Co.",
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"--",
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".",
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",",
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".",
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",",
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"200",
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"``",
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"family",
".",
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"will",
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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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"Koreans",
"the",
"money",
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"things",
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"were",
"supplying",
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"rest",
"of",
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".",
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".",
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",",
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"Motor",
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".",
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"``",
"Korando",
"''",
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"had",
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"American",
"Motors",
"Corp.",
",",
"now",
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"part",
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"Chrysler",
"Corp",
".",
")",
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"Family",
",",
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"Bronco",
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"Blazer",
".",
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"15,000",
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",",
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"240",
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",",
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"Pride",
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",",
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"Mazda",
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"Big",
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[
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"503.1",
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"F.",
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"65.6",
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[
"Sanwa",
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",",
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",",
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".",
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"Kean",
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"J.V",
".",
")",
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"54",
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"$",
"381,000",
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"The",
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",",
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[
"Meredith",
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"Morris",
"Cos",
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".",
"Kraft",
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".",
"Bill",
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",",
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",",
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"leading",
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"product",
"categories",
",",
"but",
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"n't",
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".",
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"ad",
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"electronics",
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"services",
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"pages",
"in",
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"Golf",
"Digest",
"magazine",
".",
"Time",
"Warner",
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",",
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"concern",
",",
"succeeding",
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"Lafontant",
",",
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"a",
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"."
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",",
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[
"With",
"airline",
"deals",
"in",
"a",
"tailspin",
",",
"legendary",
"Wall",
"Street",
"trader",
"Michael",
"Steinhardt",
"could",
"have",
"trouble",
"parachuting",
"out",
"of",
"USAir",
"Group",
",",
"traders",
"say",
".",
"Only",
"a",
"week",
"ago",
",",
"when",
"airline",
"buy-out",
"fever",
"was",
"already",
"winding",
"down",
",",
"Mr.",
"Steinhardt",
"was",
"engaged",
"in",
"a",
"duel",
"with",
"USAir",
".",
"He",
"was",
"threatening",
"to",
"take",
"over",
"the",
"carrier",
",",
"after",
"spending",
"an",
"estimated",
"$",
"167",
"million",
"to",
"build",
"an",
"8.4",
"%",
"USAir",
"stake",
"for",
"his",
"investment",
"clients",
".",
"The",
"would-be",
"raider",
"even",
"hired",
"an",
"investment",
"banker",
"to",
"give",
"teeth",
"to",
"his",
"takeover",
"threat",
",",
"which",
"was",
"widely",
"interpreted",
"as",
"an",
"effort",
"to",
"flush",
"out",
"an",
"acquirer",
"for",
"USAir",
",",
"or",
"for",
"his",
"own",
"stake",
".",
"In",
"fighting",
"USAir",
",",
"Mr.",
"Steinhardt",
"was",
"pitted",
"against",
"another",
"investor",
",",
"billionnaire",
"Warren",
"Buffett",
",",
"who",
"bought",
"into",
"USAir",
"to",
"help",
"fend",
"off",
"Mr.",
"Steinhardt",
".",
"Mr.",
"Buffett",
"'s",
"firm",
",",
"Berkshire",
"Hathaway",
",",
"holds",
"a",
"much",
"bigger",
"stake",
"in",
"the",
"carrier",
"than",
"Mr.",
"Steinhardt",
"'s",
"firm",
",",
"Steinhardt",
"Partners",
".",
"Now",
",",
"in",
"the",
"wake",
"of",
"UAL",
"'s",
"troubles",
"in",
"financing",
"its",
"buy-out",
",",
"the",
"airline",
"raiding",
"game",
"has",
"been",
"grounded",
".",
"Instead",
"of",
"hoping",
"to",
"sell",
"his",
"USAir",
"stake",
"at",
"analysts",
"'",
"estimated",
"buy-out",
"price",
"of",
"$",
"80",
"a",
"share",
",",
"Mr.",
"Steinhardt",
"is",
"stuck",
"with",
"roughly",
"3.7",
"million",
"USAir",
"shares",
"that",
"cost",
"him",
"$",
"45",
",",
"on",
"average",
",",
"but",
"yesterday",
"closed",
"at",
"40",
"1/2",
",",
"up",
"1/4",
",",
"in",
"New",
"York",
"Stock",
"Exchange",
"composite",
"trading",
".",
"``",
"It",
"does",
"n't",
"make",
"sense",
"to",
"parachute",
"out",
"at",
"this",
"price",
",",
"''",
"Mr.",
"Steinhardt",
"says",
",",
"though",
"he",
"has",
"stopped",
"his",
"takeover",
"talk",
"and",
"now",
"commends",
"USAir",
"managers",
"'",
"``",
"operating",
"skills",
".",
"''",
"At",
"the",
"current",
"price",
",",
"the",
"USAir",
"holding",
"represents",
"9",
"%",
"of",
"all",
"the",
"assets",
"that",
"Mr.",
"Steinhardt",
"manages",
".",
"A",
"week",
"ago",
",",
"USAir",
"stock",
"briefly",
"soared",
"above",
"52",
"after",
"a",
"report",
"in",
"USA",
"Today",
"that",
"Mr.",
"Steinhardt",
"might",
"launch",
"a",
"hostile",
"bid",
"for",
"the",
"carrier",
",",
"though",
"takeover",
"speculators",
"say",
"they",
"were",
"skeptical",
".",
"``",
"If",
"USAir",
"is",
"worth",
"80",
"as",
"a",
"takeover",
"and",
"the",
"stock",
"went",
"to",
"52",
",",
"the",
"market",
"was",
"saying",
"Steinhardt",
"'s",
"presence",
"was",
"n't",
"worth",
"anything",
",",
"in",
"terms",
"of",
"getting",
"a",
"deal",
"done",
",",
"''",
"says",
"a",
"veteran",
"takeover",
"speculator",
".",
"Traders",
"say",
"this",
"all",
"goes",
"to",
"show",
"that",
"even",
"the",
"smartest",
"money",
"manager",
"can",
"get",
"infected",
"with",
"crowd",
"passions",
".",
"In",
"trying",
"to",
"raid",
"USAir",
",",
"Mr.",
"Steinhardt",
"abandoned",
"his",
"usual",
"role",
"as",
"a",
"passive",
"investor",
",",
"and",
"ran",
"into",
"snags",
".",
"Moreover",
",",
"unlike",
"Mr.",
"Buffett",
",",
"who",
"often",
"holds",
"big",
"stakes",
"in",
"companies",
"for",
"years",
",",
"Mr.",
"Steinhardt",
"has",
"n't",
"in",
"the",
"past",
"done",
"much",
"long-term",
"investing",
".",
"Mr.",
"Steinhardt",
",",
"who",
"runs",
"about",
"$",
"1.7",
"billion",
"for",
"Steinhardt",
"Partners",
",",
"made",
"his",
"name",
"as",
"a",
"gunslinging",
"trader",
",",
"moving",
"in",
"and",
"out",
"of",
"stocks",
"with",
"agility",
"--",
"enriching",
"himself",
"and",
"his",
"investment",
"clients",
".",
"Meanwhile",
",",
"his",
"big",
"losses",
",",
"for",
"instance",
"in",
"1987",
"'s",
"crash",
",",
"generally",
"have",
"been",
"trading",
"losses",
".",
"So",
",",
"some",
"see",
"a",
"special",
"irony",
"in",
"the",
"fact",
"that",
"Mr.",
"Steinhardt",
",",
"the",
"trader",
",",
"now",
"is",
"encumbered",
"with",
"a",
"massive",
",",
"illiquid",
"airline",
"holding",
".",
"Analysts",
"say",
"USAir",
"stock",
"might",
"lose",
"four",
"or",
"five",
"points",
"if",
"the",
"Steinhardt",
"stake",
"was",
"dumped",
"all",
"at",
"once",
".",
"As",
"a",
"result",
",",
"Mr.",
"Steinhardt",
"must",
"reconcile",
"himself",
"to",
"selling",
"USAir",
"at",
"a",
"loss",
",",
"or",
"to",
"holding",
"the",
"shares",
"as",
"an",
"old-fashioned",
"investment",
".",
"``",
"Long-term",
"investing",
"--",
"that",
"'s",
"not",
"Steinhardt",
"'s",
"style",
",",
"''",
"chuckles",
"an",
"investor",
"who",
"once",
"worked",
"at",
"Steinhardt",
"Partners",
".",
"``",
"He",
"does",
"n't",
"usually",
"risk",
"that",
"much",
"unless",
"he",
"thinks",
"he",
"has",
"an",
"ace",
"in",
"the",
"hole",
",",
"''",
"adds",
"another",
"Steinhardt",
"Partners",
"alumnus",
".",
"In",
"recent",
"days",
",",
"traders",
"say",
"USAir",
"has",
"been",
"buying",
"its",
"own",
"shares",
",",
"as",
"part",
"of",
"a",
"program",
"to",
"retire",
"about",
"eight",
"million",
"USAir",
"shares",
",",
"though",
"the",
"carrier",
"wo",
"n't",
"discuss",
"its",
"buy-back",
"program",
".",
"If",
"USAir",
"stepped",
"up",
"its",
"share",
"purchases",
",",
"that",
"might",
"be",
"a",
"way",
"for",
"Mr.",
"Steinhardt",
"to",
"get",
"out",
",",
"says",
"Timothy",
"Pettee",
",",
"a",
"Merrill",
"Lynch",
"analyst",
".",
"But",
"USAir",
"might",
"not",
"want",
"to",
"help",
"Mr.",
"Steinhardt",
",",
"he",
"adds",
".",
"In",
"1987",
",",
"USAir",
"Chairman",
"Edwin",
"Colodny",
"stonewalled",
"when",
"Trans",
"World",
"Airlines",
"Chairman",
"Carl",
"Icahn",
"threatened",
"to",
"take",
"over",
"the",
"carrier",
".",
"Mr.",
"Icahn",
",",
"a",
"much",
"more",
"practiced",
"raider",
"than",
"Mr.",
"Steinhardt",
",",
"eventually",
"sold",
"a",
"big",
"USAir",
"stake",
"at",
"a",
"tiny",
"profit",
"through",
"Bear",
",",
"Stearns",
".",
"Mr.",
"Steinhardt",
"also",
"could",
"take",
"that",
"route",
".",
"He",
"confers",
"big",
"trading",
"commissions",
"on",
"Wall",
"Street",
"firms",
".",
"However",
",",
"with",
"airline",
"stocks",
"cratering",
",",
"he",
"might",
"not",
"get",
"a",
"very",
"good",
"price",
"for",
"his",
"shares",
",",
"traders",
"say",
".",
"Especially",
"galling",
"for",
"Mr.",
"Steinhardt",
",",
"say",
"people",
"close",
"to",
"him",
",",
"is",
"that",
"USAir",
"'s",
"Mr.",
"Colodny",
"wo",
"n't",
"even",
"take",
"his",
"telephone",
"calls",
".",
"While",
"USAir",
"is",
"n't",
"considered",
"absolutely",
"takeover-proof",
",",
"its",
"defenses",
",",
"including",
"the",
"sale",
"in",
"August",
"of",
"a",
"12",
"%",
"stake",
"in",
"the",
"company",
"to",
"Mr.",
"Buffett",
"'s",
"Berkshire",
"Hathaway",
",",
"are",
"pretty",
"strong",
".",
"USAir",
"'s",
"deal",
"with",
"Mr.",
"Buffett",
"``",
"was",
"n't",
"exactly",
"a",
"shining",
"example",
"of",
"shareholder",
"democracy",
",",
"''",
"Mr.",
"Steinhardt",
"says",
".",
"Since",
"last",
"April",
",",
"the",
"investor",
"has",
"made",
"seven",
"so-called",
"13D",
"filings",
"in",
"USAir",
",",
"as",
"he",
"bought",
"and",
"sold",
"the",
"company",
"'s",
"stock",
".",
"Such",
"disclosures",
"of",
"big",
"holdings",
"often",
"are",
"used",
"by",
"raiders",
"to",
"try",
"to",
"scare",
"a",
"company",
"'s",
"managers",
",",
"and",
"to",
"stir",
"interest",
"in",
"the",
"stock",
".",
"But",
"of",
"course",
"it",
"would",
"be",
"highly",
"unusual",
"for",
"an",
"investment",
"fund",
"such",
"as",
"Steinhardt",
"Partners",
"to",
"take",
"over",
"a",
"company",
".",
"USAir",
"and",
"Mr.",
"Buffett",
"wo",
"n't",
"talk",
"about",
"Mr.",
"Steinhardt",
"at",
"all",
".",
"Analysts",
"say",
"USAir",
"has",
"great",
"promise",
".",
"By",
"the",
"second",
"half",
"of",
"1990",
",",
"USAir",
"stock",
"could",
"hit",
"60",
",",
"says",
"Helane",
"Becker",
"of",
"Shearson",
"Lehman",
"Hutton",
".",
"She",
"thinks",
"traders",
"should",
"buy",
"the",
"stock",
"if",
"it",
"tumbles",
"to",
"35",
".",
"But",
"meanwhile",
",",
"USAir",
"is",
"expected",
"to",
"show",
"losses",
"or",
"lackluster",
"profit",
"for",
"several",
"quarters",
"as",
"it",
"tries",
"to",
"digest",
"Piedmont",
"Airlines",
",",
"which",
"it",
"acquired",
".",
"Moreover",
",",
"some",
"investors",
"think",
"a",
"recession",
"or",
"renewed",
"airfare",
"wars",
"will",
"pummel",
"airline",
"stocks",
"in",
"coming",
"months",
".",
"However",
",",
"Mr.",
"Steinhardt",
"says",
"he",
"'s",
"``",
"comfortable",
"holding",
"USAir",
"as",
"an",
"investment",
".",
"''",
"While",
"he",
"has",
"bought",
"and",
"sold",
"some",
"USAir",
"shares",
"in",
"recent",
"days",
",",
"he",
"says",
"that",
"contrary",
"to",
"rumors",
",",
"he",
"has",
"n't",
"tried",
"to",
"unload",
"his",
"holding",
".",
"Mr.",
"Steinhardt",
"adds",
"that",
"he",
"bought",
"USAir",
"stock",
"earlier",
"this",
"year",
"as",
"``",
"part",
"of",
"a",
"fundamental",
"investment",
"in",
"the",
"airline",
"group",
".",
"''",
"In",
"1989",
",",
"Mr.",
"Steinhardt",
"says",
"he",
"made",
"money",
"trading",
"in",
"Texas",
"Air",
",",
"AMR",
"and",
"UAL",
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