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[Press Clips] Thursday, April 15, 1993

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FOIA Number: 2006-0465-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Speechwriting Series/Staff Member: David Kusnet; Liz Bowyer Subseries: OA/ID Number: 4517 FolderID: Folder Title: [Press Clips] Thursday, April 15, 1993 Stack: Row: Section: Shelf: Position: S 91 5 10 1 Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. schedule Home Phone Number. [partial] (1 page) 04/15/1993 P6/b(6) COLLECTION: Clinton Presidential Records Speechwriting David Kusnet; Liz Bowyer OA/Box Number: 4517 FOLDER TITLE: [Press Clips] Thursday, April 15, 1993 2006-0465-F vz.268 RESTRICTION CODES Presidential Records Act - 144 U.S.C. 2204(a)] Freedom of Information Act - 15 U.S.C. 552(b)] P1 National Security Classified Information |(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute |(a)(3) of the PRA) an agency |(b)(2) of the FOIA) P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information |(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes |(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions |(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells |(b)(9) of the FOIA] RR. Document will be reviewed upon request. White House News Report THE OF SEAL OF STATES THE ONITED Kusnet, David WHO 193 EOB Thursday, April 15, 1993 Morning Edition Produced by the News Analysis Staff Room 162, OEOB (Ext. 7151) WHITE HOUSE NEWS REPORT Thursday, April 15, 1993 AP DAYBOOK i 8:30 a.m. The Labor Department releases weekly jobless claims. 8:45 a.m. The Vice President addresses the National Performance Review Orientation. 450 OEOB. 9:30 a.m. The National Head Start Association holds a news conference to update the media on Head Start quality and research. Grand Hyatt, 1000 H St. NW. 9:45 a.m. Commerce Secretary Brown speaks at a town meeting at the U.S. Chamber of Commerce on NAFTA. 1615 H St. NW. 1:00 p.m. The United Seniors Association holds a news conference to announce a national advertising program to defeat the President's proposed tax increase on Social Security benefits. National Press Club. 1:00 p.m. United We Stand America volunteers meet before delivering Perot's "First National Referendum, on Government Reform" to every member of Congress. West steps of the Supreme Court. 3:00 p.m. The President meets for photographs with the National Ambassador for the March of Dimes, the Mosaic Minstrels, and the Berwick, Pennsylvania Bulldogs, the No. 1 high school football team in the nation. TV NEWS ANALYSIS ii WIRE REPORTS iv New York Times 1 Washington Post 17 Wall Street Journal 44 Washington Times 61 USA Today 82 Los Angeles Times 95 Seattle Post-Intelligencer 127 Des Moines Register 128 Boston Globe 131 Long Island Newsday 137 Arkansas Democrat-Gazette 139 Detroit Free Press 140 Chicago Tribune 141 Atlanta Constitution 142 San Diego Union-Tribune 143 04/14/93 20:26 4 001 Newsurse TV Track Published by U.S. Newswire, Washington, D.C. (202) 347-2770 NETWORK HEADLINES Wednesday April 14, 1993 ABC World News Tonight 1 Hillary Clinton Asked About Using Value Added Tax for Health Care Brit Hume Washington 2:10 2 Health Care Task Force Explores Why Health Care Costs Are So High George Strait Washington 2:10 3 Study Says Two Drugs Combined Helps Women With Menopause Peter Jennings New York 0:20 4 Blacks Demonstrate Violently in South Africa; Many Dead Don Kladstrup Johannesburg 2:10 5 Srebrenica Attached Again; Many Leaders Call For Arming Muslims Peter Jennings New York 0:11 6 Trial Begins For The Men Who Mounted Last Years' Coup in Russia John Donvan Moscow 2:00 7 Japan Announces Russian Aid Package; US Offers More Peter Jennings New York 0:10 8 George Bush in Kuwait For His First Visit Peter Jennings New York 0:10 9 King Beating Trial Jury Goes Home Early Today ÀS Juror Falls Ill Peter Jennings New York 0:10 10 Blacks In South Central Using Protest Tactics To Get Jobs Ron Claiborne Los Angeles 2:30 11 Justice Department to Investigate Hangings in Mississippi Jails Peter Jennings New York 0:15 12 Ohio Inmates Hang Bedsheets with Threat to Kill Hostages Peter Jennings New York 0:25 13 Grand Jury Set To Indict Joey Buttafuoco on 19 Counts Peter Jennings New York 0:20 14 Employers Pay For Injured Workers to Undergo Physical Therapy Ken Kashiwahara San Francisco 4:30 15 Lost Pliers Found in Space Shuttle Discovery's Rocketbooster Peter Jennings New York 0:20 16 Fla. 's Hurricane Season Approaches, Last Year's Damage Remains Mark Potter S. Dade County, Fla. 1:30 CBS Evening News 17 Civil Unrest, Rioting Breaks Out in South Africa Allen Pizzey Soweto 2:30 18 Juror Ill, Verdict Not Yet Reached in Rodney King Trial Dan Rather New York 0:20 19 LA Officials Worry, Prepare For Possible Violence Upon Verdict Bill Lagattuta Los Angeles 2:00 20 Ohio Prison Standoff Continues, National Guard Troops Called In Dan Rather New York 0:20 21 Student Stabbed in Mass. High School, Suburban Community in Shock Giselle Fernandez New York 2:00 22 Mencpausal Hormone Treatment May Reduce Women's Heart Disease Bob Arnot New York 2:00 23 Bartholomew Warns Serbs to Stop Their Terror in Former Yugoslavia Dan Rather New York 0:10 24 Horror Continues in Bosnia Dan Rather New York 0:15 25 Christopher Discusses Russian Aid With Japan, Clinton to Give More Aid Dan Rather New York 0:15 26 Yeltsin Threatens to Resign if He Loses Nationwide Referendum Anthony Mason Moscow 2:00 27 Income Tax Returns Are Slower Than Usual This Year Ray Brady No Location 2:30 28 Insurers Will Not Pay For Cancer-Treating Bone Marrow Transplants Bcb Faw San Francisco 4:00 NBC Nightly News 29 Mass Demonstrations in South Africa Explode Into Violent Riots Keith Miller Johannesburg 2:20 30 Recent Serbian Attack on Civilians Leaves the World Outraged Kate Aidy Tuzla 1:10 31 President Clinton Feels Pressure To End Fighting In Bosnia Jim Miklaszewski Washington 2:10 32 George Bush Arrives In Kuwait and Is Treated Like A Hero Tom Brokaw New York 0:15 33 Deliberations Delayed In LA Beating Trial As Juror Becomes Ill George Lewis Los Angeles 2:00 34 Suspended Police Officer Kills Three Teenagers Fred Briggs Foster, R.I. 1:40 35 Panel Tells Doctors To Aggressively Treat Depressed Patients Robert Hager Washington 1:30 36 White House Discusses Value Added Tax To Pay For Health Care Tom Brokaw New York 0:15 37 Prison Standoff Continues As Inmates Threaten Hostages Sara James Lucasville, Ch. 1:40 38 David Koresh Promises To End Standoff After He Writes Manuscript Jim Cummins Waco, Tx. 0:50 39 Airplane Catches Fire and Makes Emergency Landing in Dallas Tom Brokaw New York 0:10 40 Membership in Labor Unions Is On Decline Mike Jensen New York 3:10 41 Cable Program Featuring Fish Is Popular With Viewers Mike Leonard Columbia, S.C. 2:30 **Summaries of stories are available within 30 days of broadcast** Call U.S. Newswire at 202-347-2770 for information Date: 04/15/93 Time: 05:48 Tax Day Value-Added Tax Under Consideration G-7 Meeting Winds Down (Washington) -- Today's the day income tax forms are due, and the Internal Revenue Service has a warning for folks who waited until the last minute. The I-R-S cautions that you should not think you can come up with any fancy excuse to get out of filing, because it's heard them all before. (Washington) -- White House aides acknowledge that a value-added tax is among possibilities being considered as a way to pay for the Clinton health-care plan. They say if the general sales tax turns out to be the answer, the president will ''explain and justify'' its use. (Tokyo) -- The seven leading industrial nations, meeting in Tokyo, are offering Russian President Boris Yeltsin more than 28 (B) billion dollars in aid. As that meeting winds down, Japanese Prime Minister Kiichi Miyazawa (kee-chee mee-yah-zah-wah) travels to Washington, to meet with President Clinton tomorrow. (Los Angeles) -- The judge in the Rodney King beating trial in Los Angeles wants jury deliberations to resume today, after one juror went to the doctor yesterday to be treated for an undisclosed illness. If the juror remains ill, the trial could continue with only eleven panelists, or an alternate could be called in, although that would considerably lengthen proceedings. (Milwaukee) -- Milwaukee residents have the all-clear to drink tap water again after eight days of boiling it to kill a parasite that made thousands of people ill. Meanwhile, a Wisconsin health official says some food products made with Milwaukee tap water may have to be recalled nationwide. APNP-04-15-93 0548EDT Date: 04/15/93 Time: 05:50 WORLD NEWS SUMMARY AT 5:50 A.M. (APRIL 15) UPI - Discovery's astronauts are getting ready for tomorrow's landing at Kennedy Space Center but they could stay in orbit until Saturday. Meteorologists are watching a cold front that's expected to move through central Florida bringing rain and high winds that might prompt NASA to extend the eight day mission. Deliberations in the Rodney King civil rights are expected to resume today with or without an ill juror. One member of the jury got permission to visit a family doctor for an unspecified illness. The jury has met for all or parts of five days to weigh the evidence against four Los Angeles police officers accused of violating King's civil rights. In a related development, Laurence Powell says he's relieved to learn L-A prosecutors plan to drop his pending state assault charge. The jury in last year's state trial was deadlocked on the count against Powell. Prosecutors say re-trying him following the federal case would amount to double jeopardy. Reports from Israel say a Chicago man has been sentenced to six months in jail for smuggling cash to help Palestinians buy weapons. Mohammed Jarad and another Chicago man, Mohammed Salah, were arrested in January on charges of aiding the Hamas Islamic fundamentalist movement. Israeli prosecutors are still working on their case against Salah. Haste makes waste is the old saying. And hurrying today could prove trouble for Americans hurrying to beat the deadline for filing their tax returns. That deadline is midnight tonight. The National Taxpayers Union warns harried tax-filers to double-check returns completed in a rush reminding them the simplest errors can increase chances of an audit or slow a refund. Pope John Paul the Second has directed nine Carmelite nuns to vacate their convent at the former Nazi death camp in Auschwitz. The order is seen as likely to help end a long-running dispute between Jews and the Roman Catholic church over the site. The bishop of the diocese where the convent is located says the nuns and these are his words "accepted the order with total submission to the will of the Holy Father Senate minority leader Dole will be in New Hampshire today to join Granite State Republicans taking shots at President Clinton's economic stimulus plan. Dole's arrival fuels speculation he may be getting an early start on the 1996 presidential sweepstakes. Texas Senator Phil Gramm visits New Hampshire Saturday. On the Democratic side, Jerry Brown will be there Monday. A Florida prison guard has been arrested on charges of helping her boyfriend, a burglary suspect, escape after he smashed his way out of a patrol car. Deputy Barbara Anne Cooper, a five-year veteran, is accused of using her key to uncuff the suspect after he ducked into their motel room. Joan Crawford's Oscar for her role as ''Mildred Pierce'' in 1945 is going to the auction block. An official with Christie's auction house says the gold statuette could sell for between eight and 12-thousand dollars but will probably go for more because ''it's the only Oscar by a top movie star to come on the market so far Although several Oscars have changed hands, at least two at auction, such an event is a rarity. That's because recent winners are required to promise they won't sell Oscar. A California woman is having trouble convincing the federal government she's alive. A Medicare computer keeps sending bills to the ''estate'' of Vivian Smith marked with a caution that the person insured is now deceased. Smith's husband knows what his wife is going through. A government computer error changed his birth date from 1917 to 1971 and he was warned recently that he'd failed to register for a possible future draft. Ms. Rivlin noted that because state NEW TAX ON GOODS and municipal governments rely on CLINTON CONSIDERS sales taxes to help finance their budg- ets they would likely oppose a Federal IS WEIGHED TO PAY value-added tax, SO "there would have VALUE-ADDED TAX to be an accommodation to state and local governments.' Asked about the Administration's FOR HEALTH CARE apparent change of position on the val- ue-added tax, Mr. Stephanopoulos Continued From Page Al said: "I think what the President's concern IS to make sure he gets the best health-care proposal possible. AN INDIRECT LEVY ON SALES that the tax was now one of several He's concerned at making sure that being weighed by the task force. But he they have the most thorough process said that no firm proposal had been for examining all the possible alterna- presented yet to Mr. Clinton. tives. If a decision is made to go for- White House Officials Studying The President is not expected to un- ward with something like that, it's cer- a National Value-Added Tax veil the components of his health-care tainly something the President will ex- plain and justify, but no decision has package, aimed at providing every been made along those lines." of Type Used in Europe American a minimum level of health Talk of a value-added tax is certain A-1 insurance, until mid-May. to complicate Mr. Clinton's efforts to "They have examined the possibility sell his jobs bill. Representative Robert of a VAT," said Mr. Stephanopoulos. Michel of Illinois, the House minority By THOMAS L. FRIEDMAN "Has it been presented to the Presi- leader, announced plans today for a to The New York Times dent? Has he made a decision? No, he series of town hall meetings on Satur- WASHINGTON April 14 - The has not." day to generate opposition to the Presi- White House said today that it was One reason the White House is so dent's plan to stimulate the economy, considering a value-added tax - an reluctant to concede that such a tax is while Mr. Clinton argued that the new indirect form of sales tax - to help pay under discussion is the fear it will spending was essential to "give a little divert attention from the President's for President Clinton's health-care goose" 10 the economy and insure that efforts 10 sell his $19.5 billion jobs pack- young people will have summer jobs. package. But 11 insisted that the Presi- age, which has been trapped in the Speaking today to a conference on dent had not made any final decision on Senate by a Republican filibuster. Part summer jobs, co-sponsored by the De- such a sweeping new proposal to raise of the Republican argument against partments of Labor and Education and revenue. the bill is that Mr. Clinton is already attended by many mayors, Mr. Clinton President Clinton first broached the calling for 100 many new taxes. Any contended that while his stimulus pack- idea of a value-added tax, which is talk of a value-added tax would under- age was only "a small part of a big imposed on goods and services at each cut White House efforts to focus public budget" It would nevertheless cut the stage of production but ultimately paid attention on Republican opposition to unemployment by half a percent and for by the consumer, in February, then the jobs bill. generate 700,000 part-time jobs this backed away, calling it a "radical Nevertheless, shortly after Mr. Ste- summer for young people. change" that could only be looked at in phanopoulos spoke, Ms. Rivlin told a "I don't have all the answers, but I years ahead. gathering of the National Manufactur- ers Association that a value-added tax do know this, doing nothing is not the But in the past two days, the Health answer," said Mr. Clinton, whose aides was very much on the table. and Human Services Secretary, Donna "A VAT is clearly a possible candi- have been making available letters by E. Shalala, and Deputy Budget Direc- date," she said, apparently unaware of various Republican mayors and gover- nors who have broken ranks and en- tor Alice M. Rivlin said in separate how the White House was trying to play statements that such a tax was now it down. "I think a VAT has a good deal dorsed the package. being considered to pick up some of the to recommend it." cost of Mr. Clinton's health-care plan, Ms. Rivlin acknowledged that such estimated at $50 billion 10 $100 billion a taxes, unlike progressive income taxes, fall most heavily on the poor and mid- year. dle class. Therefore, such a tax "must No Decision Yet be designed so as not to be painful to The White House communications lower-income groups," she said. Administration officials said the rea- direc George Stephanopoulos, con- son such a tax is now under active firmed Ms. Shalala's statement, in an consideration is because the proposed interview published in USA Today, say- tax increase on alcohol and cigarettes mg, This is something that is being being looked at by the health policy looked at. but no decision has been task force would not be sufficient to made. pay for the universal health coverage The effect of a value-added tax is package being drawn up. virtually the same to the consumer as a Popular in Europe retail sales tax, since the ultimate buy- In the interview in USA Today, Ms. er eventually absorbs the cost, but the Shalala said: "We've talked a lot about many European countries with VAT's sin taxes. Certainly, we're looking a have found them to be harder to evade. VAT tax." Mr. Stephanopoulos's acknowledge- She went on to say: "But all of this ment came during a heated question- would have to be phased in, and what and- answer-period with reporters in we first must do is have the mecha- which he initially did all that he could nisms in place to slow down existing to avoid confirming that a value-added spending.' value-added taxes are used in more tax was being considered by the Ad- than 50 countries, particularly in Eu- ministration. In doing so, he contradict- rope. They are usually applied by tax- ed a statement by Mr. Clinton on Feb. ing the total value of sales of all busi- 19 that such a tax "IS not something nesses, but allowing businesses to that is now under consideration; if we claim a credit for taxes paid on their start considering it, I'll tell you." purchases of raw materials. The net Caught in a situation in which he effect is that only sales to the consumer either had 10 say that Secretary Sha- end up being taxed. According to the lala did not know what she was talking Congressional Budget Office, a 5 per- cent value-added tax would increase about. or that the President was not the Treasury's net revenues by about aware what the task force headed by $68 billion in fiscal 1995 and by about his wife, Hillary, was considering it, or $417 billion through 1998. that the President had changed his If applied as a straight percentage of mind, Mr. Stephanopoulos conceded the price, a value-added tax would af- fect all goods equally. But some Euro- Continued on Page A17, Column I pean VAT's exclude food, medicine and housing as well as many financial serv- ices, for which the tax is hard to calcu- late. THURSDAY, APRIL 15, 1993 TIMES, Clinton Seeking More Money for Spying, Aides Say By DOUGLAS JEHL made in the budgets of the Central ministration officials said today, is to Special 10 The New York Times Intelligence Agency and other spy be devoted to launching one or more WASHINGTON, April 14 - Presi- agencies. spy satellites that can take the place of dent Clinton has asked Congress for The new Director of Central Intelli- several older ones, saving money in the authority to spend even more money on gence, R. James Woolsey, had signaled future. spy agencies, satellites and other intel- earlier that the Administration would While some members of both parties ligence activities in the 1994 fiscal year oppose sharp immediate cuts in intelli- have expressed support for such an than it allotted for 1993, Congressional gence spending. But the request for an effort, other lawmakers have privately and Administration officials say. increase has surprised some lawmak- voiced some distress at the proposal The request is hidden in classified ers because Mr. Clinton had promised for an increase in the post-cold-war sections of. the Defense Department to slash intelligence spending by $7 intelligence budget. The request is ex- budget that on the whole reflects Mr. billion over four years. pected to be the subject of a sharp Clinton's plans for significant cuts in Nearly all of the new spending, Ad- debate next week when members of the military spending. House and Senate Intelligence Com- THE NEW YORK TIMES mittees meet behind closed doors to But the Administration has conclud- is available for home or review the budget. ed that at least a short-term increase in office delivery in most the intelligence spending is needed be- major U.S. cities. Please While the size of the nation's vast call this toll-free number: fore similar deep reductions can be 1-800-631-2500 ADVT. 354613 Continued n Page A16, Column 4 Clinton Seeking More Money for Spying, Aides Say Continued From Page Al agencies to consolidate programs and 'This increase is just not going to make deep cuts in the years ahead. happen," the Democratic lawmaker They also argue that Mr. Clinton has predicted. "They're going to get cut intelligence budget remains an official not violated his budget-cutting pledge severely." secret, Administration and Congres- because his request represents a sub- Even Representative Dan Glickman, sional officials disclosed today that it stantial reduction from the figure the Kansas Democrat who is chairman would total about $28 billion if the in- President George Bush had planned to of the House Intelligence Committee, crease requested by Mr. Clinton is ap- spend in 1994. Mr. Bush had set aside said in a recent interview that he had proved. They said the previous esti- $19.0 billion for the C.I.A., the National not yet decided whether to support the mates putting the figure at $29 billion Security Agency, the National Recon- White House request. "I'm not going to had been exaggerated. naissance Office and other national in- be thrilled about an increase," Mr. Of the total, the officials said Mr. telligence programs. Glickman said, "but we'll have to see Clinton had proposed that $17.8 billion Because Congress last year autho- where the increases are coming from." be set aside next year for the C.I.A. and rized about $400 million more for intel- Figuring Out the Budget other agencies whose mission is to pro- ligence than it finally appropriated, an Further evidence of the proposed vide policy makers with information Administration official said last night, increases is in a public version of Mr. about the world. That request repre- the White House intends to portray its. Clinton's 1994 Defense Department sents an increase at nearly double the proposal as a freeze, not an increase, budget request. rate of inflation from this year's final once inflation is taken into account. While the unclassified document appropriation of about $17.0 billion, The new Administration hopes such leaves blank the spending requests for they said. arguments and party loyalty might specific intelligence programs, simple blunt any Democratic impulse to re- calculations show that a research At the same time, Congressional offi- new battles that party members fought cials said Mr. Clinton proposed only budget includes a request for a $150 and won with the Bush Administration minor cuts in the other component of million increase to be divided among to cut intelligence spending. But some the intelligence budget, the military the Defense Intelligence Agency, the Congressional Democrats have al- programs intended to gather the infor- National Security Agency and the new ready made clear that they intend to mation used in battle. They said that Central Imagery Office, which handles fight the new request, even though it total remained about $10.1 billion. requests for spy satellite photographs. comes from a Democratic President. By comparison, after accounting for A separate Air Force procurement An influential Democratic lawmaker budget shows a $570 million increase inflation, Mr. Clinton proposed a 5 per- who spoke on condition of anonymity cent reduction in overall military for a category designated only as "se- said in a recent interview that the lected activities," a category that ex- spending. request for more money for spy agen- perts outside government said was Administration officials have told cies showed that the new Administra- used to disguise money set aside for the members of Congress that the upward tion "just doesn't get it" in terms of C.I.A. and the National Reconnaissance blip in intelligence spending will allow gauging opposition to the proposal. Office, which operates spy satellites. THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 2 An I.R.A. Brisk Sales Discontent on the Line Rebound In line of customers a couple "You days a discontent was brewing. have Net increase For I.R.A.'s ago, a certain age and you A. in individual reach nothing 10 fall back on," said Linda Conklin. A succession of temporary retirement This Year and spells of unemployment bor- accounts jobs left her with little, SO she to investing in mutual funds. have rowed the money from her parents what start we'll have left in Social Security?" an I.R.A. "Who knows 4 million Continued From Page Al she said. 'Probably won't be there." the polished granite information salesman counter. Advancing in line, she reached 3 temporary workers, usually lacking re- How old are you?" a tirement plans at their jobs, are among those who can still take full or partial asked. "Excuse me?" she said, frowning. tax deductions for I.R.A. contributions Well, if you have more than 10 of up to $2,000. For those covered by till retirement the sales- at 2 corporate retirement plans, with in- years began, then halted. Glancing leather comes above certain limits - about her and creaseless skin, he funds man fashionably slouching started half of all workers - only the earnings jacket over by recommending some 1 on their I.R.A. accounts remain tax- free until withdrawn. for decades-long gains. The new rules on deductions initial- Ivars and Sandra Slokenbergs, 28, were meanwhile just com- from ly curtailed the growth of I.R.A.'s, 0 with fewer than 700,000 mutual fund both the transfer of money I.R.A.'s, '82 '84 '86 '90 '92 accounts added in 1988. But a new pleting taxable accounts to new investment income accumu- surge in interest, many financial ex- Source: Investment Company Institute ecutives say, has come as those born where lates tax-free. A warm winter vaca- car or a down payment on a the after the World War 11 recognize that tion have left them without The New York Times decisions made now will help deter- might to fulfill the savings plans June. mine how comfortably they pass the money made since their marriage last to I.R.A.'s Surging final decades of their lives. "If spend the money, you have said. "The boomers are beginning to em- brace the new frugality," said Don pay you tax on it," Mr. Slokenberg As More Worry Underwood, a vice president for re- Rules Have Tightened tirement planning at Merrill Lynch. The Slokenbergs, like many young At the seminars he offers around the still qualify to make tax-de- the About Pensions country, he said, about 30 percent of people, ductible contributions. Before the participants are under 40, twice as many as five years ago. "They are 1986 could contribute as much as covered tax year, virtually everyone $2,000 changing from being a group of tax-free. Since then, anyone take By ALLEN R. MYERSON spenders to being a group of savers." The new savings are going primari- by full a or partial deduction only is retirement plan at work can if their For Linda Wollman, the perils of ly to mutual funds and brokerage a after certain adjustments, or darting through Park Avenue's rush- firms. They heavily invest the money income, less than $50,000 for joint filers hour pile-ups on her Rollerblades were in portfolios of stocks, whose high $35,000 for individuals. nothing compared with the risk of get- long-range returns tend to compen- Most investment advisers say that in- ting caught short of cash when she sate for the risks. tax savings and investment retires in, oh, about the year 2029. So Banks' Low Rates the are greatest for those who con- tax with today's deadline for I.R.A. contri- come at the beginning of the until The business had been dominated tribute But few get around to it more butions looming, on Tuesday evening by banks and savings and loans, but the rates on certificates of deposits year. they are signing their returns she rolled into the Fidelity Investments office at Park and 51st Street in Man- have fallen to dismal levels. Mrs., than a year later. hattan to drop off a check and an Wollman, her own I.R.A. still at Individual Retirement Account form: Chemical Bank, said she was too em- for her husband. barrassed to reveal her interest rate but swore she would hunt for an alter- Fearful of losing their jobs, unwilling native. to count on pensions or Social Security, The current I.R.A. marketing war many, like Mrs. Wollman, are turning has brought fusillades of pamphlets Inventory-Sales Ratio to I.R.A.'s with greater enthusiasm and guides, with advertisements and than at any time since Congress sharp- press releases blaring about ways to Total month-end business ly limited the deductibility of contribu- avoid a penniless retirement. Fees inventories divided by total monthly business sales, seasonally adjusted. tions made after the spring of 1987. have faded. Charles Schwab, the nation's larg- Job-Change Flux 1.56 est discount brokerage, has dropped Several mutual funds and brokerage its $22 annual fees for accounts of at 1.54 firms say that today will conclude their least $10,000, and promises current 1.52 strongest I.R.A. season ever. The in- investors that the fees will never re- 1.50 creases in the number of I.R.A. mutual turn. Schwab added 321,000 I.R.A. ac- counts last year, a 69 percent gain to 1.48 fund accounts and the money invested 786,000. 1.46 in them set records last year, accord- For retirement accounts only, Fi- ing to the Investment Company Insti- 1.44 delity has waived its 3 percent sales tute, a mutual fund trade group. The charges on many of its stock funds. 1.42 year-end total of 24.3 million accounts The company's mutual fund sales of 1.40 was up by more than 3.7 million from more than $1.5 billion in the first SOND JFMAMJJASOND JF the end of 1991. three months of 1993 surpassed the 1991 1992 76. Much of this money IS coming from $1.2 billion recorded in the first quar- people rolling over their payouts from ter of 1987 and the $600 million during Business Inventories and Sales retirement plans when they change, or the same period last year. Billions of dollars. seasonally adjusted. lose, their jobs. Corporate layoffs and Today is the last chance for making Feb. Jan. I.R.A. contributions for the 1992 tax the evaporation of benefits for those Inventories $854.05 $851.02 year. The Fidelity center on Park Sales who remain have forced more workers 585.42 581.78 Avenue has remained open an extra to take retirement planning into their hour and a half, until 7 P.M., this week Source: Commerce Department own hands. to handle a rush of new business. The New York Times The growing ranks of part-time and Continued on Page D3, Column 1 THE NEW YORK TIMES. THURSDAY. APRII, 15 1002 3 White House Reviewing Trade Pact Compliance some unfair trade practices and did included clauses calling for automat- By KEITH BRADSHER not always follow through on its Kantor wants ic review every 6 to 12 months, and promises, but he refused to be spe- many trade agreements with other Spet int 10 The New York Times cific. WASHINGTON April 14 - The results on his desk countries have similar clauses, she Sanctions Possible said Clinton Administration is comprehen- In addition, much of the trade agen-' sively reviewing whether Japan and By law, Mr. Kantor can demand before Clinton cy's annual report to Congress on other countries have complied with that foreign countries comply with foreign trade barriers consists of up- trade agreements with the United previous trade agreements and im- meets Miyazawa. dates on past trade pacts, she said. States and is prepared to take unilat- pose sanctions if they refuse Mr. Kantor said that trade disputes eral action to insure compliance, Acting under section 301 of the 1974 would be discussed when President Trade Act, Carla A. Hills, Mr. Kan- Mickey Kantor, the United States tor's predecessor, intervened last ury Department, the National Eco- Clinton met Mr. Miyazawa on Friday trade representative, said today. nomic Council and the National Secu- and that Japanese officials had delib- Mr. Kantor discussed the review a year in a farm trade dispute, threat- ening 200 percent taxes on imports of rity Council, all of which participate erately played down these issues in day before Prime Minister Kiichi European white wines to force the in the interagency trade process. their news conferences in prepara- Miyazawa of Japan is scheduled to Mr. Kantor said this afternoon he tion for the meeting. arrive in Washington for talks with European Community to reduce soy- was "stunned" to find when he took President Clinton. Trade is expected bean and rape-seed subsidies. Mr. Kantor, a former lawyer for office that the Government did not Many Issues Involved to be a major issue in the talks. migrant farm workers who speaks have legal cases under way against "Of course they want to," he said. Mr. Kantor said he had told his strongly of the need 10 help blue- any foreign country for failure to The fact is the Japanese are trying subordinates to have the results of comply with previous agreements. to take the issue away from areas in collar workers hurt by imports, has the review on his desk "by the close of emerged as the Administration's What? No Violations? which they have not been as forth- business" Thursday. The secret re- coming as they had promised and we view began soon after he took office. strongest advocate of aggressive "My question was, You mean to would have liked, and that covers a trade actions. But he has encountered He also said that Japan engaged in tell me there's not one country in the large number of sectoral and struc- considerable resistance at the Treas- world violating any aspect of a trade tural issues which involve trade." agreement in a substantial way?' and Mr. Noboru said Japan had met the of course the answer was, 'Of course obligations of its trade agreements. that's not correct, Mr. Kantor said. Some Congressional Democrats Mr. Kantor also said today that had discussed privately last month business practices in several sectors the possibility of introducing legisla- of the Japanese economy violated su- tion aimed at Japan's trade surplus if per 301, a 1988 amendment to the 1974 Mr. Miyazawa's visit did not produce Trade Act. The provision, which ex- THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 immediate progress in trade rela- pired in 1990, requires his agency to tions. But Representative Richard A. identify unfair foreign trade prac- Gephardt, the Missouri Democrat tices and either negotiate their elimi- ande House majority leader, said in nation or impose trade sanctions ac- an interview that Congress was ready cording to a fixed timetable. to wait for the Administration to com- President Clinton said in the cam- plete its review of American policy paign he would push 10 renew the toward Japan. provision and Mr. Kantor reaffirmed 'I don't think they've finished it today the Administration's commit- yet, and I think that's O.K.," he said. ment to reviving it. "It's such an important policy and Japanese officials have never ac- there shouldn't be a rush to judg- cepted section 301 or super 301, con- ment." tending that the United States should But Mr. Kantor also accepted the rely on international mediation of trade disputes instead. Responding criticism of Japanese officials that a today to Mr. Kantor's remarks, Seii- long-term narrowing of the United chiro Noboru, the economics minister States' persistent trade deficit with at the Japanese Embassy, said: "It is Japan would require basic changes in not for the United States to determine the American economy. that the trade practices of Japan or "Our ability to educate our people, any other country are illegal. invest in infrastructure, stimulate Compliance Monitored our economy in the short run, invest in our economy in the long run, get Erin M. Endean, who was the direc- health care and energy costs under for of Japanese affairs and then the control and do something with the staff director for Mrs. Hills, said the structural deficit will have a major Bush Administration had continually impact on trade and macroeconomic monitored foreign compliance with issues," he s;aid. "The sectoral is- trade agreements, although no sec- sues with Japan are important but non 301 cases were pending when yet not nearly as critical as the Presi- Mrs. Hills left office. dent's economic program or our abili- All the bilateral trade agreements 1v 10 fashion a reform of the health negotiated with Japan in recent years care system." White House Never Promised a Rose Garden organization, even though both Sena- bad word for specific members. "1 was mostly bemused," he said. tors attended the university. Representative Gary Condit, a Cali- "They must think my vote is cheap if White House officials deny playing fornia Democrat who voted against the they think being invited to a breakfast such retaliatory games. But they have stimulus package, said he has never is going to make a difference." By RICHARD L. BERKE on the condition of anonymity. "And are on a list of not-to-help. recounted admitted playing hardball when war- been punished and he hoped the ru. Among the others not invited to the ranted. Special 10 The New York Times we're more inclined to help people who the Geren aide. mors were not true. "If they keeping breakfast, according to White House WASHINGTON, April 14 - A warn- have been friendly to us." And there was the recent case when The officials say the White House score, that's pretty silly,' Mr. Condit officials, was Representative Bill Sar- visitors office has a set number of tour ing to members of Congress who vote For instance, the office of Represent- Mr. Clinton invited the University of said "It's not going to change how palius, Democrat of Texas. Officials tickets it allocates to Congressional people vote in Congress." against President Clinton's big legisla- ative Pete Geren, a Texas Democrat Alabama football team, acclaimed as said that when they drew up the guest offices. "The tour tickets is a non- The reward-punishment system is tive proposals: Don't go looking for who voted against the President's pro- list they did not include Mr. Sarpalius national champion after its Sugar Bowl political process, and it's just going nothing new. As President George because they did not expect him to vote small favors from the White House. posals to stimulate the economy, had victory over Miami, for a White House forward," said George Stephanopoulos, Bush's chief of staff, John H. Sununu for the legislation. But he did. White House officials said that House sought approval months ago for 80 ceremony, along with the state's two the White House communications di- was known for slights like canceling a "They owe us a breakfast, then," and Senate Democrats who are viewed senior citizens from his district to tour Senators, both Democrats. Senator rector. "We have honored lots and lots Congressman's plans to use a Presi- said Phil Duncan, Mr. Sarpalius's chief as disloyal for voting against the Presi- the White House. But after the vote, he Richard C. Shelby, who voted against of requests from members of Congress dential box at the Kennedy Center. of staff. dent's economic progam should not ex- got word that only 40 would be allowed. the President's budget for the 1994 on both sides of the aisle. We will The Clinton Administration has not pect the White House to honor special The aide who handled the matter for fiscal year, got one ticket for the event; continue to do that." been quite as blatant. Representative requests for extra tickets for constitu- Mr. Geren recalled getting the word Senator Howell Heflin, who voted for But other White House officials said David Mann, Democrat of Ohio, said he More national news ents' tours through the Rose Garden or from someone in the White House Con- the resolution, got a fistful. that often lawmakers seek additional was not invited to a breakfast Mr. pictures with the President. gressional liaison office. "She told me One White House official said Mr. tickets, and when that happens, the Clinton held for House Democrats the appears on page B7. "You know who your friends are," that, 'As far as you're concerned, you Heflin got more tickets because he was Congressional liaison office and other morning after the Congressman voted said one White House official, speaking will never get a group tour because you the contact for the university's alumni officials often weigh in with a good or against the economic package. THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 Economic Scene The Labor Secretary's Spin On Jobs Data Lifts Eyebrows gain in years - a politically incon- By SYLVIA NASAR venient fact for an Administration fighting for a big new jobs program. At a time when the economic out- The commissioner's testimony was look is confused and the President's fairly upbeat. In contrast, Mr. Reich economic stimulus package faces op- maintained that while there were job position, it should come as no sur- gains in February, they did not make prise that the Clinton Administration the stimulus program redundant be- is eager to put its own spin on politi- cause "90 percent of the new jobs that cally charged economic statistics. have been created are in involuntary Most administrations do. part time, that is, the contingent work But a recent episode at the Labor force.) Department has touched off much This claim took many of the econo- clucking within the economics com- mists in his agency by surprise. As it munity and within the department turns out, there was no way for any- itself. one to know what proportion of the payroll jobs were part-time, since the An Inconvenient Fact Labor Department simply does not On March 5, just half an hour be- ask businesses whether their payroll fore the acting commissioner of the jobs are full- or part-time when it Bureau of Labor Statistics was due to surveys them each month. testify on February employment sta- But Mr. Reich and his chief econo- tistics, Labor Secretary Robert Reich mist, Lawrence Katz, a labor econo- held his own special news conference. mist from Harvard University, de- The February figures showed that the economy had created 365,000 new jobs in February, the biggest monthly Continued on Page D2 Economic Scene Labor Secretary as a Spin Doctor could have been all new full-time walking away from reality when it Continued From First Business Page workers," the internal memo said. doesn't fit the script," Mr. Roach "We are unable to explicitly link the said. "It's unconscionable for a Cabi- rived the 90 percent statistic by going two movements." net level department at a critical to a second Government survey, the What many of these economists juncture.' so-called household survey by the and statisticians recognized is that Some economists, however, said Census Bureau, which asks individ- the part-time data are extremely vol- the episode reminded them of the uals whether they worked in the pre- atile from month to month, and that time in 1971, during the Nixon Admin- vious month and, if so, whether they the rise in February was a blip that istration, when the Labor Secretary worked full time or part time. followed a sharp move in the opposite canceled the traditional briefing by But that survey produces totally direction the previous month. the economist in charge of the the separate data, and conclusions drawn As the department's internal mem- monthly employment report. Instead, from that data cannot be applied to orandum put it: "The trend over ap- the secretary issued his own rosy the business payroll survey; for a proximately the last year and a half interpretation of some disappointing variety of reasons, trends in one do has been flat, at a level of about 6.4 statistics. At that time, in 1971, much not necessarily track trends in the million even with periodic sharp like today, unemployment was prov- other. monthly fluctuations (like this month ing particularly stubborn. But that is what Mr. Reich and Mr. for instance)." Mr. Katz, for one, now admits that In any case, Mr. Reich did not use Katz did. They took the one-month the calculation was indeed an error. the same approach this month, when jump in the number of Americans who said they were employed part "The notion that a lot of jobs created the March jobs data were released. time because they could not find full- in this recovery are temporary and "Using his methodology, the econ- time jobs, and applied it to that part time is an accurate perception," omy would have created 255,000 full- month's increase in the total number he said. But in using the 90 percent time jobs in March," said Mr. Roach of Americans who said that they had figure, he continued, "we made a of Morgan Stanley, pointing out that jobs in February. mistake.' such an inference would have been Their 90 percent figure was picked Economists outside the Labor De- ridiculous, though no more so than up by major news organizations and partment were also quick to attack the contrary claim of the prior widely repeated as fact for weeks the Labor Secretary's calculations. month. afterward. "How come they didn't say in the Indeed, an April 2 public statement previous month that there was a big Volatile Data released by the Bureau of Labor Sta- decline and this was a monthly blip?" tistics sets the record straight from The fact that the Labor Secretary asked Marvin Kosters, an economist the Labor Department's perspective. had put out such a statistic created a at the American Enterprise Institute. involuntary part-time employment, it furor among the department's career who had been chosen by President said, had bobbed around a flat trend economists and statisticians. They Bush to be the next Commissioner of for a year and a half. And 25 percent drafted an internal memorandum - the Bureau of Labor Statistics had he - not 90 percent - of the payroll jobs for use in answering telephone que- won re-election. created in the last year or so had ries - to explain why one could not And Steven Roach, an economist at sprouted in temporary help firms conclude what Mr. Reich had con- Morgan Stanley, called the Labor And finally, It said, despite no further cluded from the data. Secretary's approach "shenani- gains on either the unemployment 01 'The rise in total employment may gans.' jobs-creation fronts in March, "the have been largely persons working part time for economic reasons, or it "It smacks of cooking the numbers general trend in recent months has when it's convenient to do so, but been one of slow improvement." THE NEW YORK TIMES. THURSDAY PRII 1007 Justice Dept. to Investigate Mississippi Jail Deaths Mississippi, Ms. Reno said that if no wrongdoing is uncovered, the Justice Department would study whether the deaths indicate a pattern. But the de- By DAVID JOHNSTON "How could that many people die?" she said. partment later issued a clarification, Special to The New York Times Ms. Reno asked. She said the civil On another topic, she said she had saying Ms. Reno did not mean to imply rights division would review each of that she had any specific evidence that WASHINGTON, April 14 - Attorney encouraged Federal prosecutors con- the number of deaths indicated wrong- General Janet Reno has ordered an the deaths in the past six years. ducting the investigation into the finan- doing. investigation of 46 hanging deaths in Department officials confirmed ac- cial affairs of Representative Dan Ros- The deaths, of whites and blacks, Mississippi jails since 1987 to deter- counts of remarks by the Attorney tenkowski, the Illinois Democrat who is drew national attention after the hang- mine whether there is evidence of General to several news organizations chairman of the House Ways and ing of 18-year-old Andre Jones in a jail criminal wrongdoing by the authori- on Tuesday Means Committee, to pursue the case in Simpson County in south-central. ties, Justice Department officials said Ms. Reno also said she hoped citizens "full steam ahead." Her comments fol- Mississippi. Mr. Jones was the son of today. in Los Angeles would accept the ver- lowed the department's demand for the Esther Quinn, president of the Jackson Her directive evoked the era of the dict in the trial of four white police resignations of United States Attorneys chapter of the National Association for 1960's and 1970's, when the Justice De- officers charged with violating the civil around the country, including Jay B. the Advancement of Colored People. partment's civil rights division tried to rights of Rodney G. King, a black mo- Stephens, the former chief Federal At the time, local and Federal offi- combat violence against blacks in the torist who was beaten after being prosecutor here, who said that his re- cials determined that Mr. Jones had Deep South by enforcing laws that dat- stopped in a high-speed chase. "When moval could interfere with an investi- taken his own life, but a pathologist ed from Reconstruction but that had the jury speaks, it is my earnest hope gation of Mr. Rostenkowski. hired by his family contended that the not been fully applied. that people will accept this verdict," In commenting on the jail deaths in death was a homicide. THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 Democrats Retain House Seat in Mississippi Special to The New York Times JACKSON, Miss., April 14 - Demo- son made no overtures to white voters crats held on to the Second Congres- and traded heated attacks with Mr. sional District in Tuesday's runoff elec- Dent. tion to fill the seat that Mike Espy left The district, mostly bordering the to become Secretary of Agriculture. Mississippi River, includes some of the Bennie Thompson, a 44-year-old nation's poorest counties along with a black county supervisor from Bolton, a heavy slice of urban voters on the Jackson suburb, rode a surge in black western side of Jackson. Fifty-eight voting to defeat Hayes Dent, a white percent of its voting-age population is Republican who was an aide to Gov. black. Kirk Fordice. Mr. Thompson polled Eight candidates - seven Demo- 71,701 votes, or 55 percent. to 58,544 crats and one Republican — competed votes, or 45 percent, for Mr. Dent. in the March 30 election. which saw Mr. Regarded as far more confrontation- Dent place first, with 34 percent of the al than Mr. Espy, the state's first black vote, and Mr. Thompson second. with Congressman this century, Mr. Thomp- 28 percent. THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 8 Raises at Fed Are Criticized WASHINGTON, April 14 (AP) - The Federal Reserve, the Government agency charged with controlling infla- tion, has given its employees raises nearly two-thirds great- er than last year's inflation rate, the chairman of the House Banking Committee said today. In a letter of complaint to President Clinton, Representa- tive Henry B. Gonzalez, a Tex- as Democrat, said the Fed staff members who report to the board of governors in Washing- ton would get 4.8 percent raises this year. Employees who work for the Fed's 12 regional banks would get raises of 4.3 percent. Those rates compare with an inflation rate of 2.9 percent in 1992. Wages and salaries na- tionally, as measured by the Labor Department's Employ- ment Cost Index, rose just 2.7 percent last year. Other Fed- eral employees received a 3.7 percent increase in January. "There is a certain irony about the nation's chief infla- tion fighters giving themselves raises greater than the rate of inflation," Mr. Gonzalez wrote. He has introduced legislation that would bring the Fed under greater scrutiny. Mr. Gonzalez also com- plained that 12 senior Fed staff members in Washington would earn $161,800 this year, consid- erably more than Cabinet offi- cers, who receive $148,400, and Alan Greenspan, the chairman of the Federal Reserve, who will earn $133,400. THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 A Simple 'Guilty' or 'Not'? Not for Beating Trial Jurors Special to The New York Times LOS ANGELES, April 14 - A juror only ones not allowed to discuss the in the police beating case fell ill today, case. Now that they are talking, the cutting short the fifth day of delibera- rest of the city is in a state of limbo tions over what on its face appears to waiting for the outcome of their discus- be a simple matter: Whether to mark sions. "guilty" or "not guilty" in the blank The anonymous jury has been in a spaces on four verdict forms - one for surreal time warp, sequestered in an each officer charged in the beating of undisclosed location and shielded from Rodney G. King. news accounts about the case. Escort- But a measure of the complexity of ed round-the-clock by armed Federal the jury's task is the time it has con- marshals, they use courthouse eleva- sumed so far. To help answer the ques- tors off-limits 10 the public and come tions, the jurors have considered the and go in blue vans with tinted windows testimony of 61 witnesses, more than to keep their faces hidden. 130 exhibits and a long interpretation of The extreme measures reflect the the law from the trial judge. sense that the jurors are on trial along The juror who fell ill was taken to a with the officers. Many blacks say ac- private doctor escorted by a marshal. quittals will further erode their faith in A city ambulance was waiting outside the justice system, but the officers' the courthouse before Federal District lawyers urged jurors not to give in to Judge John G. Davies announced the the "howl of the mob and the waffling interruption 10 a courtroom packed politicians," as Harland W. Braun, the with prosecutors, the defendants, their lawyer for Officer Briseno, phrased it lawyers and reporters who had gath- in his closing arguments on Saturday. ered at the request of the judge. Focusing on Four Jurors Judge Davies did not provide any details of the juror's identity or illness. Defense lawyers said they have been "I can't tell you what the nature of the focusing their hopes on four of the problem is," he said. "There's a re- white jurors, based on their back- quest to see a family doctor this after- grounds, answers to questionnaires noon." and demeanor in court. They are a mother of three leen-agers who works Speculation and Shudders in a family-owned business outside Los The judge said the juror was expect- Angeles; a burly, bearded man in his ed to be well enough to rejoin the group 30's or 40's who said he worked in a when deliberations resume on Thurs- business whose customers included po- day. But the episode stirred specula- tion that a verdict had been reached, sending shudders through an already edgy city. It also focused attention on the three alternate jurors who followed the trial and are sequestered along with the other jurors but have not participated in the deliberations. If the sick juror cannot continue on the case, an alter- nate can join the panel. Legal experts said deliberations could also continue with 11 jurors if all parties agree. Jurors in the officers' trial on state charges a year ago in Simi Valley had to decide on 11 counts among the four defendants, including charges of as- sault. excessive force under color of law, accessory after the fact and filing false police reports. The largely white, middle-class pan- el from suburban Ventura County de- liberated for seven days, but the fore- woman said that by the end of the first day they had agreed on not-guilty ver- dicts on all but one count, on which they ultimately failed to reach a unanimous verdict. Associated Press Fewer Counts, New Hurdles Sgt. Stacey C. Koon arriving at There are fewer counts in this trial, court yesterday in disguise. but the complexity of the law and the jury's racial and demographic diversi- ty are likely 10 create hurdles not faced lice officers; a former security guard by the Simi Valley jurors. in his late 20's who said he once used a Sgt. Stacey C. Koon, Officers Laur- baton to subdue a bottle-wielding as- ence M. Powell and Theodore J. Bri- sailant, and a welder who served in the seno and former Officer Timothy E. Danish military in the late 1950's. Wind could be imprisoned for 10 years The jury picked as its foreman a and fined $250,000 if convicted of violat- while professional in the real estate ing Mr. King's civil rights in the video- business in his 40's who said he has two taped beating after his arrest on March neighbors who are law-enforcement of- 3, 1991. ficers. During jury selection, he said he Officers Powell and Briseno and Mr. was "not surprised" by the officers' Wind are charged with crimes rooted acquittals in Simi Valley. in the Fourth Amendment's prohibition Besides four other whites, two men against "unreasonable searches and and two women, there are three minor- seizures." Sergeant Koon, who did not ity jurors. One is a black man, a former beat Mr. King but who supervised the marine who appears to be in his late other officers, is charged with allowing 60's and who said he has lived in the the beating to proceed in violation of Watts section of Lo Angeles for 25 the 14th Amendment's right not to be years. Another is a Hispanic man who deprived of liberty without due process appears to be in his 30's who said he of law. had never seen the videotape of the Federal prosecutors in this case also beating. The third is a black woman, a face a different hurdle. While jurors in postal worker in her 20's who has a 4- Simi Valley only had to decide whether year-old son. She seemed distracted and bored excessive force was used, jurors in the Federal trial must go one step further during much of the trial, but her atten- and find that the officers did SO willful- tion picked up as the trial drew to a ly and not, for instance, by accident or close. Last week she wiped away a tear in self-defense. during a poignant moment in the clos- ing argument of Michael P. Stone, the For seven weeks, the jurors were the attorney for Officer Powell. THE NEW YORK TIMES, THURSDAY. APRIL 15. 1993 10 Withstanding Shocks, Dow Rises ponent stocks rose that amount. ANTHONY RAMIREZ THE FAVORITE STOCKS Indexes with a greater variety of stocks were mixed. The New York Performance of the 15 issues with the The stock market continued its Stock Exchange's composite index most shareholders. bumpy march yesterday toward a 1993 dipped 0.12, to 247.73, and the Stand- Dow Jones industrial average of % % ard & Poor's 500 index declined 0.56, 3,500, now tantalizingly close. Stock Last Chg. Chg. Chg. to 448.66. The Nasdaq composite in- Cheered by falling interest rates, the dex rose 0.11, to 673.94. A.T.&T 583/4 - 1/2 - 0.8 + 15.2 market held on to most of the gains of Ameritech 773/4 + 1/8 + 0.2 + 91 Big Board trading volume was Tuesday, amid some nasty surprises. Bell Atlantic 541/4 1/8 0.2 + 5.9 257.3 million shares, less than Tues- The most striking development BellSouth 551/2 + 8.0 day's volume of 286.7 million shares. was a huge selloff late in the day of Exxon 685/8 + 1/8 + 0.2 +12.3 General Electric 943/8 + 11/2 + 16 +104 Impact of a Slow Recovery Wal-Mart Stores stock, perhaps indi- General Motors 405/8 + 1 + 2.5 +260 cating the tentativeness of the mar- A rafter of earnings reports affect- GTE 361/8 + 1/8 + 04 + 43 ket's rise. Advancing stocks narrowly I.B.M. 49 3/8 08 2.7 ed individual stocks yesterday. The led decliners, by 1,021 to 874. Nynex 897/8 - 1/8 0.1 + 72 slow recovery was viewed by some Pacific G & E 343/4 + 4.9 Retailing analysts interpreted a investors as good for stocks because Pacific Telesis 481/4 + 1/8 + 0.3 + 8.7 Wal-Mart executive's sales projec- of low inflation, and by other invest- Sears 537/8 + 1/8 + 0.2 +18.4 tions as a warning of slower growth. Southwestern Bell 781/2 + 3/4 + 1.0 + 6.1 ors as bad for stocks because of de- Wal-Mart dropped 13/4, to 27½, hover- US West 427/8 + 1/8 + 0.3 +117 pressed earnings. ing close to its 52-week low of 25% Low interest rates could help banks At 14 million shares, trading in Wal- and finance companies, but a weak Mart stock was nearly quadruple the points at 3,455.64. The Dow Jones economy would hurt metals, paper, previous day's level. transportation average advanced chemical and major retailing stocks, The company said it was "per- 0.41, 10 1660.93, setting another certainly part of the reason for the plexed" because nothing had really record, its fourth in five trading ses- Wal-Mart slide. changed at the company. sions. Also, RJR Nabisco Holdings, the Among the Dow industrials, only second-most active stock on the Big Near a Benchmark four stocks, including the Minnesota Board, continued to decline. On Tues- The Dow Jones industrial average Mining and Manufacturing Company day, the company announced that the rose solidly throughout the day, surg- and the Goodyear Tire and Rubber dividend would be smaller than previ- ing as much as 19 points in the early Company, rose at least $1. In the ously announced once its stock is split afternoon, before closing up 11.61 transportation index, only two com- into separate shares linked to the performance of its food business and to its more turbulent tobacco busi- ness. RJR Nabisco shares closed at 53/4, down 1/4. The Digital Equipment Corpora- tion, after reporting a third-quarter loss, saw its stock rise 1½, to 415/8. Digital's chairman said the company was making progress. The B.F. Good- THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 rich Company, which also reported a loss, saw its shares drop by 11/₈, to 467/8. Analysts had expected a profit for the company. The share prices of diaper makers gyrated after Procter & Gamble, the market leader, said Tuesday it would start a price war. P.& G.'s stock rose ¹/₈, to 481/4 Its rival Kimberly-Clark fell 17/8. to 51½ The big loser, though, was Paragon Trade Brands Inc., which makes discount diapers. Its stock posted the biggest decline on the Big Board, falling 5 points to 25 1/4. Inventories Climbed 0.4% In February Fifth Gain in a Row Is Sign of Slow Demand WASHINGTON, April 14 (Reuters) - Stocks of unsold goods climbed for a fifth straight month in February, the Commerce Department said to- day, providing new evidence that con- sumer demand may be faltering. The department said inventories at the manufacturing, retail and whole- sale level grew during February by four-tenths of I percent, to a season- ally adjusted $854.05 billion. It was the biggest monthly increase since an identical rise last July. The inventory-to-sales ratio held steady at a 10-year low of 1.46 for the third consecutive month. That means it would take 1.46 months to exhaust inventories at the current sales level. The department also revised its report for January inventories, say- ing they rose three-tenths of 1 percent instead of being unchanged as previ- ously reported. Unsold stocks of goods have risen steadily since October. Some of the increase late last year might have reflected stockbuilding before a strong Christmas sales season, ana- lysts said, but there have also been indications that consumer demand has weakened this year. Sign of Sluggishness Rising inventories can signal an economic slowdown. If unsold goods pile up, businesses cut their orders and factories are forced to reduce production. The rise in February inventories was concentrated at the retail level, where stocks rose by 1 percent, to $265.1 billion. The increase at the manufacturing and wholesale levels was minimal. The department also reported that sales at all levels of business in- creased six-tenths of 1 percent to a seasonally adjusted $585.4 billion in February. While both manufacturers' and wholesalers' sales were higher than in January, retail sales de- creased three-tenths of 1 percent, to $168.7 billion. Retail sales are crucial to the econ- omy because spending by consumers on goods and services fuels about two-thirds of national economic activ- ity. On Tuesday, the Commerce De- partment said that consumers cut spending in March by ) percent, the steepest monthly decline in more than two years. Analysts said the report indicated that economic growth was slowing. THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 12 SOUTH AFRICA RIOTS Riots Across South Africa Leave 7 Dead LEAD TO 7 DEATHS; ontinued From Page Al Blacks are angry TENSIONS RUN HIGH he doesn't want to fight," Raseleti Ko- at whites; mane. an unemployed 38-year-old from Soweto. said of Mr. Mandela. 74. "We blacks are angry want 10 fight.' POLICE SHOOT 3 IN SOWETO The Government and the African Na- at blacks. tional Congress, which began the week with an extraordinary show of concert- ed action aimed at heading off violence. Despite Mandela's Plea, Rallies ended the day with an exchange of dent of a fully democratic South Africa. bitter recriminations. Mr. Mandela. dressed in a presidential- to Remember a Slain Black What happened in South Africa to- looking charcoal suit. arrived to a thun- day cannot be tolerated in a civilized derous, orchestrated roar, and basked Leader End in Violence country." President F.W. de Klerk in the praise of several warm-up said as he announced he was sending speakers. more police officers and soldiers to But with more than 10.000 people By BILL KELLER reinforce the 23,000 already keeping overwhelming a facility built for about Speciallo The New York Times watch. half that number, and thousands more SOWETO. South Africa, April 14 A A.N.C. leaders accused the police of pushing at the entry gates. the organ- "unprovoked brutality" in the Soweto nationwide day of mourning for the izers cut the program short and rushed shooting. and said the Government slain black leader Chris Hani burst out Mr. Mandela to the microphone. should be blamed for disorders that Associated Press of control today, as angry young blacks may come in the days ahead. The con- Janusz Walus, a Polish immi- 'I Understand,' He Said rioted through several cities in defi- gress has scheduled another march on grant accused of killing the ance of pleas for order. Saturday and a funeral for Mr. Ham on Many in the audience were thrilled Communist leader Chris Hani. In the worst single incident, panicky Monday. by Mr. Mandela's presence, but many police officers here fired without warn- Neither side, however, suggested more had come yearning for catharsis, ing into a throng milling outside the that the day's hostilities should impede and they did not get it. As the black main police station. killing three and talks on the first universal elections. leader plodded through an appeal for Mr. Mandela, in fact, said he expect- nonviolence, promising "certain posi- critically wounding five, and replenish- ed Mr. Hani's death to accelerate the live developments' that might ensue ing the rage that black leaders hoped dismantling of white rule, though the ZIMBABWE only direct consequence of the killing MOZAMBIQUE from Mr. Hani's death, many young would be spent by this day of protest. listeners muttered impatiently. Sev- Across the country, crowd-control has been a one-week postponement of eral times he stopped to demand order SOUTH marshals deployed by the African Na- the talks, which had been due to re- AFRICA "I understand your anger," he said. tional Congress struggled to hold angry sume next Monday. Johannesburg The African National Congress IS a youths in check, and often failed. In Business groups said most of South government in waiting, and we want Cape Town, Durban, Port Elizabeth, Africa's 6 million black workers NAMIBIA Pretoria you to remember that as members of Pietermaritzburg and other cities, ral- skipped work today, observing a one- the government in waiting, you have day strike as part of the Hani com- Soweto SWAZILAND lies turned into rampages of looting, the responsibility to behave orderly memoration. burning and clashes with the police. LESOTHO and with dignity.' Focus on Mandela Riot in Cape Town Pletermaritzburg Then he abruptly dismissed the mul- The African National Congress mo- Cape titude for a planned march to the police "No peace! War! War!" rioters bilized many hundreds of monitors who Town station. chanted in Cape Town, where two peo- have in the past proven adept at chan- ple were killed and a train was de- neling huge crowds away from trouble, Journalists and other witnesses at Miesvand railed. The scores of injured in Cape and Mr. Mandela appeared repeatedly the police station said the crowd was on television to implore the public to The New York Times Town included a prominent black lead- preparing to disperse when an ar- abjure violence. Officers fired into a crowd outside mored police vehicle roared back and er who was punched in the face as he By the time Mr. Mandela arrived at the main police station in Soweto. forth through the crowd. followed by a tried to restrain rioters. the rally in Jabulani Amphitheater in police wagon. When a few young men Organizers of the day's events said Soweto, there were already ominous showered stones on the vehicles, the the casualty toll - at least seven peo- undertones in the generally festive lice accuse of killing Mr. Hani, is a witnesses said, a line of about 30 police, ple were reported killed and hundreds mood. Young men waved sticks and Polish immigrant. most of them white, opened fire with hurt - could have been much worse, spears, a few carried guns, and the The rally was clearly intended to tear gas, shotguns and pistols. given the hundreds of thousands who placards held aloft included calls for transform this anger into political en- The police insisted later that they took part and the pitch of emotion after retribution and anti-Polish slogans. ergy, focused on Mr. Mandela, the man had been attacked and had been forced the killing Saturday of Mr. Hani, the Janusz Jakob Walus. the man the po- many assume will be the first presi- to fire. Communist Party leader and a popular figure in the African National Con- gress. But for the congress it was an em- barrassing display of the gap between the moderate, compromise-minded leadership and the unruly, disaffected young men of the townships. Scorn in Soweto At a dangerously overpacked amphi- theater in Soweto, Nelson Mandela, the A.N.C. president, labored to explain the need for discipline and nonviolence to a crowd that surged against the stage and rumbled impatiently throughout his speech. His rambling remarks were inter- rupted by the pop-pop of firecrackers meant to simulate gunfire and by jeers THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 when Mr. Mandela mentioned his bar- gaining partners in the governing white National Party. "We can all see that he's too old and Continued on Page A3, Column I 13 It's Clinton's Turn to Bargain With Japan By Clyde V. Prestowitz Jr. In theory, stimulating Japan's econ- wood and fish. Japan's chief exports ers. Yet U.S. Customs Service audits omy is supposed to increase imports to us are cars, VCR's, telecommuni- show that less than half of the materi- and reduce the trade imbalance. In cations equipment and machine tools. als and labor that Japanese auto WASHINGTON fact, a succession of similar proposals This means high-wage jobs for them plants in the U.S. use is American. A harmonious and pros- over the last decade has not solved the and lower-wage jobs for us. The Japanese should also manufac- perous era in U.S.-Ja- trade problem. Japan's demand for Mr. Clinton has staked his Presi- ture more here in other industries: pan relations could foreign goods is so unchanging that dency on revitalizing the economy Their electronics companies produce start tomorrow if even a huge stimulus has yielded only and creating jobs. To do so without virtually no VCR's in America - the President Clinton a small increase in imports. If past busting the budget, he must reduce world's biggest VCR market - and plays his cards right trends hold, Mr. Clinton's proposed the trade deficit. For every $1 billion many Japanese TV sets are marked during the visit of Japan's Prime $19.5 billion package to stimulate our reduced from that deficit, the U.S. will "assembled" not "made" here. Minister, Kiichi Miyazawa. The first own economy, which has run into a gain 20,000 to 30,000 jobs. The Japa- If Mr. Miyazawa wants to give a step must be for both sides to avoid Congressional roadblock, would cre- nese say the deficit stems from the real gift, he could reaffirm his com- the traditional omiyage, or gift, of a ate more U.S. imports of Japanese gap between our low savings rate and Japanese stimulus package. For goods than Mr. Miyazawa's $100 bil- their high rate. That IS only partly nearly 50 years. Japanese prime min- lion program would yield in Japanese true. Japan has trade surpluses with isters have come to Washington bear- imports of U.S. goods. South Korea and Singapore, which ing gifts that usually have been prom- Instead, Mr. Clinton should tell Mr. have higher savings rates than Japan. He needs real help ises to stimulate their own economy. Miyazawa that friction would best be More than half the deficit is in avoided by addressing the problem's autos and auto parts. Yet the U.S. is from Miyazawa. Clyde V. Prestowitz Jr. is president of real source: the makeup of trade. now the low-cost location for auto the Economic Strategy Institute, a After airplanes and their parts, our production, mainly because our parts policy research organization. top exports to Japan are maize, raw producers are the lowest-cost suppli- mitment to George Bush last year 10 double Japan's purchases of U.S. auto parts. Some Japanese officials have said recently that it wasn't a commit- ment, just a gesture of good will. Many Bush Administration officials insist otherwise. Mr. Miyazawa could clear up the confusion. Even better, he could assure Presi- dent Clinton that Japanese auto com- panies will reach their proclaimed goal of having all cars produced at their THE NEW YORK TIMES, THURSDAY, APRIL 15, 1993 U.S. factories contain at least 75 per- cent U.S.-made parts and that electron- ics companies will do the same. More important, he could assure us that these factories will start exporting to Japan - and not just token amounts for political purposes. After all, the U.S. is a low-cost production location and the Japanese companies are losing money or facing reduced profits, so reverse exports are good business. The Japanese have pressed for a permanent seat on the U.N. Security Council. President Clinton should let Mr. Miyazawa know that if Japan helps break the General Agreement on Tariffs and Trade deadlock by unilaterally reducing all its tariffs to zero, everyone would view Japan's candidacy more favorably. Mr. Miyazawa could do wonders for Japan's image if he announced that his Government would raise the for- eign share of products it bought. U.S. computer makers have more than 40 percent of the commercial computer business in Japan but less than 10 percent of the Government market. In short, if Mr. Miyazawa and Presi- dent Clinton want to cement a produc- live relationship, they would do well to address sales and jobs; otherwise, they will increase the odds that in four years another Japanese prime minis- ter will be bringing another stimulus omiyage to another President. 14 A Simple 'Hai' Won't Do N A ¥EA By Reiko Hatsumi TOKYO hen a TV an- W nouncer here reported Bill Clinton's comment to Boris Yeltsin that when the Japanese say yes they often mean no, he gave the news with an expression of mild disbelief. (1 am back to TV.) Then he decides to Having spent my life between East destroy his newly acquired brother-in- and West, I can sympathize with law and besieges his castle. Being those who find the Japanese yes un- human, though, the attacking warlord fathomable. However, the fact that it worries about his sister and sends a sometimes fails to correspond pre- spy to look around. The spy returns cisely with the Occidental yes does and the lord inquires eagerly, "Well, is not necessarily signal intended de- she safe?" The spy bows and answers ception. This was probably why the "Hai," which means yes. We sigh with announcer looked bewildered, and it relief thinking, "Ah, the fair lady is marks a cultural gap that can have still alive!" But then the spy contin- Matthew Martin serious repercussions. ues, "To my regret she has fallen on I once knew an American who implication, the latter part of this worked in Tokyo. He was a very nice estimable thought IS often left unsaid. man, but he suffered a nervous Is there, then, a Japanese yes that breakdown and went back to the U.S. Some tips for corresponds to the Western one? 1 tearing his hair and exclaiming, "All think so, particularly when it is ac- Japanese businessmen are liars." I the President. companied by phrases such as "so- hope this is not true. If it were, all desu" (It is so) and "soshimasu" (1 Japanese businessmen would be driv- will do so). A word of caution against ing each other mad, which does not the statement, "I will think about it." seem to be the case. Nevertheless, since tragedies often arise from mis- her sword together with her husband." Though in Tokyo this can mean a Hai is also an expression of our willingness to give one's proposal se- understandings, an attempt at some explanation might not be amiss. willingness to comply with your in- rious thought, in Osaka, another busi- A Japanese yes in its primary con- tent even if your request is worded in ness center, it means a definite no. text simply means the other person the negative. This can cause compli- This attitude probably stems from has heard you and is contemplating a cations. When 1 was at school, our the belief that a straightforward no reply. This is because it would be English teacher, a British nun, would would sound too brusque. rude to keep someone waiting for an say, "Now children, you won't forget When talking to a Japanese person answer without supplying him with to do your homework, will you?" And It is perhaps best to remember that an immediate response. we would all dutifully chorus, "Yes, although he may be speaking English, For example: a feudal warlord mother," much to her consternation. he is reasoning in Japanese. And if he marries his sister to another warlord. A variation of hai may mean, "I says "I will think about it," you understand your wish and would like should inquire as to which district of Reiko Hatsumi, a novelist, is author to make you happy but unfortunately Japan he hails from before going on of "Rain and the Feast of the Stars." Japanese being a language of with your negotiations. 15 The Taxman Experiments Eligible taxpayers in Ohio can meet tonight's the Pentagon. It won't be fully in place until 2008. filing deadline by punching in the required informa- The telephone filing project, now in its second tion on a touch-tone telephone. It's an experiment by year, is limited to taxpayers who use the simple the Internal Revenue Service to streamline income Form 1040EZ and have the same address as last tax collection, like the electronic filing system origi- year; all they do is follow the instructions of a nally tested in 1986 and now handling some 14 recording that tells them what numbers to enter million returns a year. and, of course, to mail in what they owe. Of the Despite these gee-whiz advances, the I.R.S. has 126,000 Ohioans who filed by phone last year, most fallen behind in collaring delinquents and is launch- were students or young singles on starting-job in- ing yet another experiment - private debt collec- comes. tors. That's not as ominous as it sounds. They won't Electronic filing still has to go through a com- be "tax farmers" like the heavy-handed agents of mercial transmitter, but the I.R.S. is working to- 18th-century French kings, who got a piece of ward the day when returns can be filed from a home whatever they collected. Rather, private collection computer. The benefits are obvious; last year's agencies will help find delinquents who have error rate on electronic returns was 2.8 percent, dropped out of sight, and will handle routine notifi- compared with 18 percent for paper ones. cations. They will not do high-pressure collecting; The overwhelming majority of returns - more that's the Government's job. than 100 million - are still filed by mail and All these test runs are efforts by the Revenue processed by systems that aren't up to the work- Service to get out from under the two billion pieces load, despite extensive computerization already. of paper that are handled every year, part of a $23 Voluntary compliance is the bedrock of America's billion overhaul involving the largest computer tax system. A creaky I.R.S. creates problems for modernization program ever undertaken outside itself by frustrating taxpayers who want to comply. 16 FDR: FDIC, NRA, SEC-But No FBI Lag ith two weeks to go before we arrive at his time since he was presiding over a largely W President Clinton's 100th day and with in- friendly takeover. Clinton, however, is allowing a evitable comparisons to come, here's how great chunk of the government machinery to be run historian Arthur M. Schlesinger Jr. described by his enemies or people not loyal to him. Franklin D. Roosevelt's first 100 days. Another Rhodes Connection "Congress and the country were subjected to a presidential barrage of ideas and programs unlike In the all-Rhodes-lead-back-to-Chinton category. A very key member of the Joint Staff at the Penta- anything known to American history," Schlesinger gon these days is Rear Adm. Dennis C. Blair, dep- wrote in 1958. uty director of the office of Force Structure, Re- In that first 100 days, Roosevelt "sent 15 mes- sources and Assessment. sages to Congress, guided 15 major laws to enact- He's doing the "bottom-up" ment. delivered 10 speeches, held press confer- review or downsizing study ences and cabinet to establish the contours of meetings twice a the country's post-Cold War week, conducted talks military needs and struc- with foreign heads of ture. state, sponsored an Turns out Blair is yet international confer- another Rhodes scholar ence, made all the who was at Oxford with major decisions in Clinton. Blair was at the THE NEW REGIME domestic and foreign Pentagon before Clinton policy and never dis- came to town, however. played fright or panic Speaking of the Penta- and rarely even bad temper." GEN. COLIN L. POWELL gon, it's been widely re- Match that, Bill. ported that Clinton personally asked Joint Chiefs Clinton does have one thing in common with his Chairman Colin L. Powell to stay on to the end of more recent predecessors. In April 1981, Post re- his term Sept. 30. porter Lou Cannon wrote that President Ronald Actually, press secretary Dee Dee Myers, asked Reagan's aides were "struggling with the difficult at a news briefing in February about Powell's sta- task of speeding Reagan's lagging time-table on tus, said Clinton wanted him to stay on. Not quite sub-Cabinet and other political appointments. your warm, personal gesture, but at least Clinton [An] aide said that security and ethics checks had didn't ask him to leave. taken longer than anticipated." Fast forward to White House communications It's Official director George Stephanopoulos yesterday saying Clinton yesterday said he would name Vice Adm. that "the FBI background checks-and the back- Albert J. Herberger, a 35-year Navy veteran, as ground check is far more comprehensive-and it administrator of the Federal Maritime Administra- takes more time than our predecessors." tion, and Joan Yim, a longtime government affairs Stephanopoulos acknowledged that some candi- and planning analyst in Hawaii to be deputy admin- dates' domestic help problems, hiring illegal aliens istrator. or not paying Social Security taxes, has played "an At Commerce, former Senate staffer and tran- awful big part" in delaying background checks. sition team member Loretta L Duan has been Stephanopoulos, briefing reporters, offered a tally named assistant secretary for import administra- to date: "We've filled 814 [jobs]. It's broken down to tion. Carol C. Darr, former general counsel at the 384 schedule C, 149 non-career SES [Senior Exec- Democratic National Committee, has been named utive Service], 213 PAS full time, I'm not sure what deputy general counsel; Barbara Stafford, also for- that means. And 70 PA full time." PAS jobs are merly at the DNC, is deputy assistant secretary for presidential appointments subject to Senate confir- investigations for the International Trade Admin- mation. PA jobs are appointees not subject to con- istration; and, Gloria Gutierrez, formerly at the La- firmation, such as White House staff. bor Department, was named deputy assistant sec- The White House counts 3,306 presidential job retary for administration. appointments in all. About half-1,600-are Sched- At the Overseas Private Investment Corporation, ule C jobs, 880 are non-career SES, 526 are PAS Christopher Finn, formerly with the American jobs and 300 are PA slots. (The PAS slots do not Stock Exchange, is to be the executive vice pres- include nearly 200 U.S. attorneys and marshals and ident. the approximately 115 vacancies on the federal At Defense, Alice C. Maroni, formerly with the bench. House Armed Services Committee, is principal dep- "We expect the process to speed up," Stephano- uty comptroller and Deborah Castleman, a policy poulos said. "But we're at the pace of Bush," who analyst at Rand Corp., a California think tank. is also was criticized for extraordinary slowness in deputy assistant secretary for command, control putting the government in place. and communications. The difference. of course. is that Bush could take -Al Kamen T THURSDAY, APRIL 15, 1993 17 THE WASHINGTON POST How to Aid 'Working Poor? Tax Credit Serves as Lifeline but Has Its Critics A-1 about half of it as an earned income By Guy Gugliotta tax credit, a supplementary pay- Washington Post Staff Writer ment from the federal government MEMPHIS-For 20 years Flo- made to families who earned less rea Hill has worked as a short-order than $22,370 in 1992. This year, as cook at a truck stop diner, a full- every year, Hill's combined tax re- time job that in 1992 brought her fund-EITC check will be the most $10,001 before taxes. It is not money she has held in her hand at enough. any one time. "I need to buy some clothes," said Few experts dispute the effec- Hill, 59, who lives in a weatherbea- tiveness of the EITC, the govern- ten white clapboard cottage in ment's principal tool to enhance the Earle, Ark., about 15 miles north- income of "working poor" families west of Memphis. "And some things with children. President Clinton really need fixing, like the back plans a major expansion of EITC, porch and the bathroom-you don't and can expect broad congressional even want to see the bathroom." backing. Both political parties like Hill is counting on getting $2,074 the EITC because it is believed to from the Internal Revenue Service, See EITC, A8, Col. 1 THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 1/2 18 Clinton Seeks to Expand the EITC EITC. From A1 rent EITC tax form, but a spokesman said the agency does not know how many EITC recipients use tax prepar- reward work and support the family. ers. At H&R Block in Memphis, however, the idea that Yet the program has weaknesses. There are indications the form is too complicated evoked incredulity. that some Americans deliberately work hard enough to "They know about it all right," said first-year preparer obtain maximum EITC benefits-but no harder. Experts Jerry Berry. "In fact at the beginning of the year, the cli- also warn that the promise of an EITC could cause tax- ents taught me how it worked. In most cases they knew payers to falsely inflate their earnings in order to qualify exactly how much their refund was going to be." for a bigher benefit. Berry estimated "maybe 1 percent" of his clients didn't And there are also questions about whether the credit understand the credit, and "maybe 10 percent" didn't does what it purports to do: Does it ease the poverty bur- know how to calculate it. Cleopra Mitchell, another pre- den and inspire Americans to get off the welfare rolls and parer, said 60 percent of her clients had filled out the seek better-paying jobs? Or does it simply make scutwork EITC form when they arrived for their appointment. bearable and give employers an excuse to pay people less? The vast majority of EITC recipients are people who The basic EITC works on a "bell curve," rising as a work long hours for low pay at low-skill jobs that provide worker's wages rise (about 17 cents for each dollar few benefits and no future: "What we see is that people earned). reaching a maximum when annual earnings are will take janitorial work or take a part-time job at Wen- between $7,520 and $11,840 and declining gradually until dy's-anything to get income," said Notre Dame's Me- it phases out altogether at $22,370. The maximum basic lani. "This perception of people going on welfare and liv- credit in tax year 1992 for a parent with two or more chil- ing high on the hog is totally bizarre." dren, making between $7,520 and $11,840 per year, is Louis Grant, 27, who expects to get a $2,000 EITC on $1,384. A person must earn some money to qualify for the earnings of $10,000, works full time as a fork lift operator EITC. for a Memphis water purification plant, and for part of last Besides the basic credit, the government offers a year held a second, night job cleaning office buildings. All "health care credit" to workers who contribute to a health but $300 to $400 of his EITC will go to his estranged wife insurance plan for a child during the tax year and a "young and the couple's three children-"to buy them shoes, child credit" for those with a child less than a year old. clothes, whatever they need," he said. Both additional credits, criticized as being unwieldy and Like Grant, everyone interviewed in Memphis or east subject to abuse, would be eliminated under the Clinton Arkansas knew exactly how EITC money would be spent: plan. for furniture, home repairs, medical bills, a "new" used car In all, the maximum 1992 EITC is $2,211, and the ben- and, always, as Floria Wells put it, "to buy stuff for the efit can be paid in a lump sum at filing time or in monthly kids." Wells, 23, of West Memphis, worked six months installments during the tax year. The IRS expects 14 mil- last year at Pizza Hut and earned "something like $1,000." lion taxpayers to claim an EITC for 1992. She filled out her own form for a refund-EITC of $310. The Clinton proposal would expand the program to cov- With the advent of electronic filing, taxpayers can get er perhaps 2 million additional families, and would cost an refunds-and EITCs-in two days. The promise of an additional $7.6 billion in 1996 over the projected cost of immediate bonanza is a big reason why Memphis-area $17.1 billion. Clinton's goals: raise the income of all four- taxpayers express little interest in receiving their EITC person families with a full-time worker to the poverty line; on a pro-rated, monthly basis. "This country has a refund THURSDAY, APRIL 15, 1993 offset the effect of new energy taxes on poor people. mentality," Halfpap said. "If you're somebody that's un- In the Memphis metropolitan area, at the junction of employed part of the year or if you want to make plans, Tennessee, Arkansas and Mississippi, the EITC can serve then you want the money all at once." as a lifeline, both for a large mass of unskilled and semi- Supporters of the monthly payment are convinced that skilled inner city workers, and for a dwindling rural labor low-income taxpayers, like welfare recipients, need their force scrambling for scarce jobs. extra money quickly and often and can make better use of Fred Halfpap, south Memphis district manager for the it if they get it in installments. But in Memphis there is H&R Block income tax preparers, estimates that at least considerable evidence that the lump-sum payment may be 50 percent of the company's Memphis area clients apply crucial in fulfilling the stated purposes of the EITC. for the EITC. Most of his co-workers put the figure be- Halfpap suggests that it is bringing once-marginal peo- tween 70 and 85 percent. ple into the mainstream and holding them there by en- To get an EITC, taxpayers must fill out a two-page tax couraging them to file tax returns. With a monthly pay- form to accompany a completed 1040 or 1040A (no short ment, by contrast, taxpayers run the risk of earning too forms). University of Notre Dame accounting professor much or too little for their anticipated EITC: "The first Ken Melani, who runs a tax outreach program in South time they find out they have to pay extra, we'll chase Bend, Ind., described the forms as a "nightmare" because them right off the tax rolls," Halfpap said. "They may nev- of confusion caused by the new child and medical credits. er file again." But Robert Greenstein, executive director of the Cen- But the biggest advantage of the lump sum is probably ter on Budget and Policy Priorities, which runs a national intangible-making people believe in the system and giv- program to spread information on the EITC. noted that ing them a sense of worth. "I personally feel the EITC is taxpayers need only fill out the form's first page, "not par- an incentive," said Kathleen Charles, an administrator at a ticularly difficult," and let the IRS do the rest. By elimi- West Memphis housing project. "It provides most people nating the supplementary credits, Greenstein said, the with that one-time great feeling of having a lot of money Clinton proposal will make the form "significantly simpl- at one time." er." The IRS has used Charles's EITC ($2,200 over the last In South Bend, Melani said it was "amazing" that for two years) to pay down student loans that she has used in something "that's been around so long," some people still her quest to become a child psychologist. She will prob- "are surprised" to get the EITC. In West Memphis, Ark., ably achieve her goal, thanks, in part, to the EITC. however, Sherry Fisher Means, a paralegal with the local Still, for every forward-looking poor person with a plan, legal aid office, said her northeast Arkansas clients under- there appear to be several others like Hill or Grant stand the credit and were made well aware of it "by tax trapped in low-paying jobs who need an EITC simply to preparers and by word of mouth." keep from drowning. The IRS has acknowledged the complexity of the cur- See EITC, A9, Col. 1 THE WASHINGTON Plan Is Believed to Reward Work, Support Family EITC, From A8 the credit begins to phase down, do people work less?" "A lot of people think about making more money," said said the Center on Budget and Policy Priorities' Green- Melani. "But what locks them into low-paying, EITC-el- stein. "The general sense of the research is that there lible jobs is lack of skills-there's no way out for many may be that kind of effect, but with the EITC it is much people." less than in a welfare program." For some taxpayers, however, the EITC appears to be Another anticipated shortcoming of an expanded EITC enough. Tax preparers, both in Memphis and in other is what Urban Institute senior fellow Gene Steuerle calls a parts of the country, have noticed clients with an uncanny "superterranean economy"-in which taxpayers overre- ability to earn enough money to get the maximum EITC port their earnings in order to receive a higher EITC. benefit-but no more. Until recently, Steuerle said, program rates have not Melani acknowledged there may be "pockets of welfare been high enough to make overreporting profitable, but mentality, but overall-no." But H&R Block's Berry re- an expanded benefit under Clinton heightens the risk: 1 marked how many taxpayers "find their way right to the think it's one of the things that's going to have a learning middle" of the bell curve, and Halfpap said that "for what- curve," Steuerle said. "Once the word spreads, then you will see more of it." ever reason," a lot of H&R Block clients "hit the max and stay there." Still, for Steuerle and others, the EITC's faults are both This behavior suggests a complacency among some resolvable and more than offset by the program's benefits. texpayers that mocks the work ethic the EITC seeks to The EITC, advocates say, rewards honest effort, fosters promote. It is, however, a program weakness that has hope among people with limited prospects and puts a lot of money into local economies: caught the attention of experts: "People look forward to it," said Charles. "It's the one "The basic question is, when you get to the point where 19 time in the year that you can do some big things." 2/2" White House Health Plan Clinton abandoned his campaign pledge for a tax cut for the middle class and instead proposed an eoc- nomic plan that would increase the Opens Door Tax Options ax burden, if only modestly, on middle-class Americans. Previously, the VAT had been To New Tax ruled out. On March 25, for exam- Include VAT ple, Stephanopoulos said such a tax "will not be in the proposal." White House press secretary Value-Added Levy CLINTON, From A1 Dee Dee Myers also discounted news reports and comments by oth- No Longer Ruled Out the 37 million Americans currently er administration officials that a val- without health insurance. ue-added tax was under consider- To Fund Health Plan The administration may not be ation. "I think the president ruled A-1 able to raise its needed revenue that out fairly clearly a couple of solely through "sin taxes" on such weeks ago," she said March 24. By Ruth Marcus and Ann Devroy commodities as cigarettes, which On the stimulus package, Clinton Washington Post Staff Writers Clinton already has specifically and Dole at midday had what Steph- The White House yesterday mentioned. A value-added tax has anopoulos called "a good talk" re- opened the door to imposing a val- the political benefit of being a some- sulting in a presidential offer to call ue-added tax to pay for its health what hidden charge because it is the GOP leader back last night with care program, after weeks of re- tacked on at each stage in the pro- an outline of a compromise "to get peatedly insisting that such a tax duction process rather than levied something done." Dole, on behalf of was not an option. in one flat form at the end. the Senate Republicans, has been While three senior administration Shalala, in an interview with USA insisting that the White House ei- officials, including White House Today, said, "Certainly we're look- ther pay for the stimulus by cutting communications director George ing at a VAT," and Rivlin told the elsewhere or significantly reduce it. Stephanopoulos, were preparing National Association of Manufac- The conversations were the first the ground for the possibility of turers that it was clear that extend- since a successful Republican fili- such a tax proposal, President Clin- ing health care to those without in- buster stalled the stimulus package, ton yesterday was silent on that subject. Instead, he was promoting surance is "going to take some and came after several days of pub- more resources, and a VAT or a another piece of his agenda, his lic lobbying aimed at persuading at troubled economic stimulus pro- general sales tax has a good deal to least three Republicans to switch gram, and privately discussing a recommend it." Rivlin said such a sides and allow the bill to go for- compromise with Senate Minority tax "has to be offset or designed in ward. But the process has become Leader Robert J. Dole (R-Kan.) in some way that it is not too painful" more complicated for the White two telephone conversations. to the lowest-income groups. House, as now at least three Dem- Stephanopoulos said "modifica- Asked about those comments, ocrats have said they will not vote tions" in Clinton's $16.3 billion Stephanopoulos repeatedly refused for the stimulus as currently pro- stimulus package were being pre- to restate earlier remarks taking posed. pared to make it more acceptable to that option off the table. The conversations occurred in a Senate Republicans who voted in a "If a decision is made to go for- day of furious charges, counter- bloc to stop it. ward with something like that, it's charges, faxes and press releases On the tax issue, Stephanopoulos certainly something the president over the stimulus issue. The White abandoned previous statements will explain and justify, but no de- House sent press releases into the that a value-added tax (VAT), which cision has been made along those states of six moderate Republican is imposed at each stage of the man- lines he said. "But at the same senators enumerating the jobs the ufacture of a product, would not be time, he has not ruled it in. He has administration said would be lost if used to pay for overhauling the not made a proposal." the package were not approved. health care system. "I'm acknowl- Stephanopoulos's comments Clinton repeated his call for passage edging that the task force has stud- were similar to the formulations to a group of business and local ied this proposal," Stephanopoulos that the administration used before community leaders. said. "I am also stating that the But Republicans continued their president has not made a decision on it." assault on the package, which in- Clinton in February said some I'm acknowledging cludes social spending and unem- kind of national sales tax made ployment compensation, as too full sense for the country, then imme- that the task force of fat and one that should not be diately retreated, saying he envi- added to the deficit. House Repub- sioned a 10- to 15-year time frame has studied this licans announced they would make for such a change. Clinton's official that case at 19 town meetings spokesmen also were denying such proposal. I'm also scheduled Saturday from New a tax was a possibility, even as Hampshire to Southern California. members of Hillary Rodham Clin- stating that the Republican lawmakers pledged to ton's health care working groups spotlight tax increases in Clinton's over the past two months were president has not budget and appeal for more spend- looking at the VAT as one of sev- ing cuts first. The meetings were eral revenue-raising options. made a decision." timed to occur soon after today's Donna E. Shalala, secretary of -George Stephanopoulos, deadline for filing income tax re- Health and Human Services and AI- White House spokesman turns. ice M. Rivlin, deputy director of the Office of Management and Budget, Staff writers Kenneth J. Cooper and both mentioned the tax as an option Helen Dewar contributed to this in the last two days, and Stephano- report. poulos yesterday refused to rule it out. The shift in tone reflected a be- lief among some senior White House aides that a value-added tax may be its best alternative for rais- ing the $30 billion to $90 billion an- nually needed to pay for Clinton's pledge to extend health benefits to See CLINTON, All, Col. 1 THURSDAY, APRIL 15, 1993 20 THE WASHINGTON POST Value-Added-Tax Designed 0 Discourage Consumption By Steven Mufson and David S. Hilzenrath Washington Poar Staff Waters A value-added-tax (VAT) IS a form of gener- rogram. a! sales tax used in more than 50 countries, in- cluding most major industrialized nations. The attraction of the tax is that it raises tremendous amounts of money and its burden falls on consumers, encouraging people to save and invest instead of spend. Economists say that would help the econo- my grow faster in the long run. But the tax also falls more heavily on the low and moderate-income earners who need to spend almost every dollar to make ends meet. rament's election watchdog agency to predict a while campaign costs are rising, leading the gov- 1992, but fewer taxpayers are checking the box There was enough money in the system for forms to earmark a dollar for the public financing arpayers, who check a box on their yearly tax The system relies for its money on individual dress takes action." the independent agency said. elections will all but collapse in 1996 unless Con- The current system of financing presidential tion Commission said yesterday. more money into the system. the Federal Elec- Tinger of failing unless Congress acts to channel hosidies to presidential election campaigns is in The government program that offers taxpayer Reuter As a percentage of income, the burden on the bottom fifth of American families would be three times as large as the burden on the top fifth, the Congressional Budget Office (CBO) reported. And the tax could depress consump- tion and slow down the economy in the short run. Consumer spending makes up about two- thirds of the U.S. economy. A VAT is imposed at each stage of produc- tion, unlike the form of sales tax commonly imposed by states at the point of sale. A VAT taxes the total value of sales of all businesses, but allows them to deduct money used to pay for taxes, raw materials and capital goods and equipment. As a result, it does not tax investments- and it IS more difficult to evade than a conven- tional sales tax. For those reasons, the Trea- following the Watergate scandal. The system's istered by the FEC and was created by Congress partially financed by the system, which is admin- sury and U.S. representatives at international Every presidential election since 1976 has been ing program" but did not offer specifics. "ensure the financial viability of the public fund- It urged Congress to change the system to high of 28 percent in 1980. campaign fund last year compared to a record of taxpayers made the $1 contribution to the The agency reported that less than 18 percent taxpayers this year. eral income tax returns-too late to sway most before today's deadline for filing this year's fed- The FEC report was made public just one day next presidential election cycle. shortfall of $75 million to $100 million for the financial institutions have urged many devel- oping and former communist countries to adopt VATs. Under a standard VAT. U.S. exports would not be taxed and foreign imports would. so American products would be on an equal foot- ing at home and abroad. According to the CBO, a 5 percent VAT on all consumption would increase federal tax revenues by $68.2 billion in fiscal 1995 and by more than $100 billion every year after that. To ease the pain for poor and moderate-in- come earners, the VAT could be designed to exclude food, housing and medical care. A 5 percent VAT would then raise $35.7 billion in 1995 and around $60 billion a year after that. to qualify for general election subsidies. The administration's proposed energy tax bears some of the characteristics of a VAT, and Democratic Party candidates have been able qualify for primary subsidies, only the Republican While some minor-party candidates usually subsidize their nominating conventions. and Democratic parties also get lump sums to cover all their spending needs. The Republican ifying candidates receive lump sums intended to During the general election campaign, qual- the amount of private money they raise. candidates get public subsidies in proportion to support. During the primary season, qualifying quirements aimed at demonstrating widespread federal subsidies by meeting government re- Presidential candidates become eligible for wealthy contributors in the election process. primary goal was to reduce the influence of Presidential Campaign Fund May Need Bailout, FEC Says and gives an idea of the political opposition it could draw. Just as different regions and dif- ferent industries have lobbied for special ex- ceptions from the proposed energy tax, re- gions and industries would probably lobby for special breaks from a VAT. But some business groups have already em- braced the concept, suggesting that the VAT be used as an alternative to the energy tax or the corporate income tax hike that President Clinton has proposed. Most governors oppose a VAT because it would make it more difficult for them to raise state sales tax rates. It would take the Internal Revenue Service a year to implement a VAT, and administering it would cost the federal government $750 million to $1.5 billion annually, according to the Congressional Budget Office. THE WASHINGTON POST THURSDAY, APRIL 15. 1993 22 A Asians Classified as American, POW Expert Says Analyst Offers Explanation of Discrepancy in Numbers; Researcher Disputes Argument THE WASHINGTON POST By Thomas W. Lippman and members of Congress have seized on the These operations and the capture of the civil- Washington Post Staff Writer document as evidence that Vietnam has deceived ian agents were described in detail in a Los An- the United States about its prisoners for 20 geles Times article in January 1991. North Vietnam held several hundred Asian years and may still be holding some of the 1,166 "These people were consistently defined by civilians in 1972 whom it counted as American U.S. servicemen whose fate remains officially the Vietnamese as American commandos," Tou- prisoners of war, a likely explanation of the dis- undetermined. crepancy between the 1,205 POWs a Russian rison said. "In the [North] Vietnamese press and Those groups are unlikely to be swayed by the document says Vietnam held and the 591 re- on Radio Hanoi during the war, they were re- views of Tourison, who has a position to defend: leased after the war, a former Defense Intelli- ferred to as American 'spies' or 'saboteurs.' It He has said publicly since 1988 that no prisoners gence Agency analyst said yesterday. has quite often misled people to think they were remain alive, although "there were a lot of un- J The Asians were captured while on covert Americans when actually they were South Viet- answered questions in 1973," the year Vietnam missions for U.S. forces between 1961 and 1968 namese who worked for us." returned all the U.S. POWs it said it was holding. 1 and were kept in North Vietnamese prisons Stephen J. Morris, the Harvard-based re- along with American military personnel. These Tourison, a former intelligence officer and searcher who discovered the document in the Asian agents were always referred to as Amer- prisoner interrogator in Vietnam and Laos, was Moscow archives of the Soviet Communist Par- icans in North Vietnamese documents and broad- also an investigator for the Senate Select Com- ty, disputed that argument. Morris, who said he casts, said Sedgwick D. Tourison Jr., who was a mittee on POW-MIA Affairs, which spent last believes several hundred American prisoners senior analyst in DIA's POW-MIA office for five year examining the issue of missing Americans. He is writing a book about 34A, which he said is were executed after the war, noted that thou- years. scheduled to be published later this year. sands of Russian-language documents about the as 00 He said the agents were deployed on sabotage In the U.S. Embassy translation of the Russian war that he has read all distinguished clearly be- and intelligence-gathering missions collectively document-itself translated from Vietnamese- tween Americans and others. But he said he had 07 BW known as 34A-missions that were secret at the the 1,205 prisoners were said to be 767 pilots, not read Vietnamese-language documents. time but were revealed in the Pentagon Papers or 391 "American servicemen of other categories" North and South Vietnam exchanged prison- 06 and have since been reported at length. The Russian document, purportedly a trans- and 47 "individual special operations personnel ers in the spring of 1973, but according to Tou- lation of a senior Vietnamese general's politburo who were conducting reconnaissance of trans- rison, the South Vietnamese and other Asiantoa briefing about U.S. prisoners in September portation routes from helicopters and reconnais- agents captured on the covert missions were not ob 1972, was obtained by the United States last sance vessels." Most of the captured pilots were included because they were civilians. They werens week and is being evaluated by U.S. officials, actual Americans, but the other groups consisted essentially forgotten during the peace negotia- oil who appear inclined to support Tourison's anal- largely of Asians, Tourison said. tions and remained in North Vietnamese prisons 12 ysis. The numbers in the Russian document are for years after the war. E "DIA believes the number 1,205 could be an "not inconsistent with the known facts of 1972," "Some died in prison, some were released in accurate accounting of total prisoners held" in- Tourison said. Vietnam's POW population at the the late 1970s and others were released in the *IF cluding South Vietnamese, Thais and other As- time included 30 Taiwanese "inserted on a mar- late 1980s," Tourison said. Several who were ians, according to Robert R. Sheetz, director of itime operation in 1963" and "approximately 450 interviewed by the Los Angeles Times re- U on the DIA's POW office. "Numbers in the docu- agents from South Vietnam on CIA and Defense counted years of torture and deprivation, fol- 9: ment cannot be accurate if discussing only U.S. Department missions who were lost on covert lowed by shock and distress when they finally it THURSDAY, APRIL 15, 1993 POWs." operations." There were also Thais captured in returned to families who had given them up for , Some family groups, veterans organizations cross-border operations, he said. dead. Attorney General Orders Probe Of A4 Hangings in Mississippi Jails were suicides and note that 23 of By Michael Isikoff and wrote Reno asking her to re- Washington Post Staff Writer them, or nearly half, involved open the investigation into the whites. Jones death as well as other deaths Attorney General Janet Reno. Nevertheless, the issue drew na- "to determine whether there have responding to growing calls from tional attention last summer after been outrageous violations of the civil rights activists, has instructed Andre Jones, the 18-year-old son of constitutional rights of persons held the Justice Department to look into Jackson, Miss., NAACP President in custody" in Mississippi. Grash of reported hanging deaths in Esther Quinn, was found hanged by Bobby Doctor, acting director of Mississippi jails. a shoelace in the Simpson County, the commission, said yesterday he 2. Department spokeswoman Car- Miss., jail. State and federal author- was "very pleased" about Reno's ities ruled the death a suicide, but action. He said there had been "a- oline Aronovitz confirmed yester- an independent pathologist hired by high number of allegations of mis- day that Reno recently asked the the family concluded the teenager conduct" in connection with the civil rights division to conduct the was murdered, saying that the bar deaths, including some evidence réview "to see if there is a pattern" from which he was hanged was suggesting that jail employees may to the deaths and to see if such in- eight to nine feet high and that have been "infiltrated by members cidents could be prevented. reaching it would have required a of hate groups." i "How could that many people stool that was not present. But even if those allegations can- die?" Reno asked during an inter- The issue took on new urgency not be substantiated, Doctor said, view with wire service reporters in last month when President Clinton the sheer number of deaths was which she expressed her concern said he was "very much concerned" "alarming" and raised questions about the deaths. The Associated about the deaths following calls for about conditions in the jails. Press quoted Reno as calling the new investigations from the Rev. "It certainly suggests to me that large number of deaths "unaccep- Joseph Lowery and other civil if you have that number of folks table" and instructed the division rights leaders. In addition, the U.S. committing suicides, there is cer- to try to get to the bottom of it." Civil Rights Commission decided to tainly something driving them in Federal officials say there have hold its own hearings on the issue that direction," he said. been 47 deaths in Mississippi jails since 1987 can unusually large num- ger that some civil rights. activists have charged were racially moti- Pated "lynchings." State officials have ruled that all the hangings THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 23 On a Health Kick HHS Secretary Donna Shalala, Exercising Her Ideals By Barbara Vobejda HEALTH, From C1 Washington Post Staff Writer cial service programs ever. onna E. Shalala is balanced on the edge of a This is the time and these are the If it is a show of independence, it is people, she says of herself and her D Cleveland hospital bed, where a 7-year-old hardly the first time. In fact, Shalala's boy is being treated for bone cancer. His par- counterparts. It is time to make histo- assertive streak can make her seem ents, Glen and Cynthia Day, are asking her ry. "We've spent our whole careers relentless. As a child in Cleveland, she the hard questions about health care: put waiting for this moment," she says. once marched out after a dance recital "We better seize it." simply, who will pay the bills? to take a personal bow, waiting until Can she possibly fulfill her own Their son, Zach, smiles meekly at this visitor, who has she had the stage to herself. As an mythic expectations? swept into his room trailed by a knot of staff and cam- adult, she is known as a demanding boss with an imposing ego. eras. He has lost all of his hair, his right leg has been am- But Shalala is more complex than putated just above the knee and an IV is draining into his Donna Shalala does know how to get that, part steamroller, part sports things done-with or without your right arm. coupe. The folklore among Madison Shalala sits beside him, holding herself still, but ema- help. students was that, after she banned nating intensity-as if the energy of a bigger person has "She's a steamroller," said Michael smoking at the university, she would been compacted into her solid, five-foot frame. "You're Grebe, a conservative Republican on stalk the stadium tiers at athletic worth every dime we spend on you," she says decisively. the University of Wisconsin Board of events looking for smokers. Her nick- Regents, where Shalala served as name, earned when she served as an chancellor. "She just runs over people. assistant secretary at HUD in the She's a very high-energy person who Carter administration, is "Boom approaches problems with a frontal at- Boom." But she also knows how to "Keep fighting." From behind her back, she produces a tack sometimes she leaves a few charm: Donna Shalala on the football teddy bear and hands it to him. bodies in her wake," he said. field, introducing kids to Bucky the But the new secretary for health and human services At the same time, Grebe rates Shal- Badger, the UW mascot. And many has no good answers for his parents, who worry that ala as an effective chancellor. By many say she is genuinely compassionate: their insurance will be exhausted by the staggering hos- accounts, she has taken two huge insti- Donna Shalala sharing her chancellor's pital bills. Nor does she for dozens of other patients wait- tutions-University of Wisconsin-Mad- mansion for months with a North Da- ing down the hall, who tell her horror stories about their ison and Hunter College in New York, kota family whose daughter was in lack of insurance coverage, or how their insurance won't where she served as president-and Madison for a liver transplant. pay for the one treatment that could save their lives. revitalized them. But it is almost as if Above all, she is savvy. Grebe, She offers this: "We've got a system that obviously the zeal and self-confidence that pro- whose conservative Republican politics pels her also creates a momentum she doesn't work. All I can tell you is we're going to do clashed with Shalala's, believes she "ei- cannot harness. She ends up negotiat- our best." ther co-opted or neutralized" her natu- ing her world like a force of nature, ral critics in Madison-the business There is a powerful irony in the moment, as Donna more tornado than gentle breeze. And community-by her enormous success Shalala embraces what she calls her "awesome" responsi- sometimes that gets her into trouble. at fund-raising and by turning around bilities. Like many others in the Clinton administration, After a few months on her new job, the athletic department. she was shaped by the '60s belief that government can she has apparently become the first "I wonder, in my heart of hearts, if solve the most challenging human problems. But in the Cabinet member to stray from the was going to build a university corridors of this hospital, as in the corridors of HHS's White House's party line. Sources in from the ground up, if it would even the administration said White House have intercollegiate athletics," he said. officials, including Clinton, were an- Dut when she arrived here and saw massive headquarters building on Independence Avenue, noyed with her when she announced people attached importance to it, she her idealism confronts reality. without approval that the immigration jumped right on it." Shalala and her Cabinet colleagues have waited a doz- ban on persons with HIV would be lift- en or more years for this chance. Now they are here, ed, a regulatory change that Congress ready to go. But the cupboard is bare. The great spend- has since opposed. HHS spokeswoman ing days of the '60s are gone, replaced by a politics of Avis LaVelle countered that Shalala austerity and a suspicion of government. And even if went through proper channels. Never- there were enough-money to pay the health care bills for theless, Shalala received an angry call those who cannot, there still waits a punishing list of oth- from White House Chief of Staff er demands: training and jobs for welfare mothers, Thomas F. McLarty, who scolded her AIDS, child support, drug abuse, urban blight. over the matter, according to one White House official. She also angered Not that she's daunted by the limitations. Shalala de- the White House, administration sourc- scribes the transition of power in Washington as a critical es said, when she announced without point in American history, a juncture of need and oppor- approval that FDA Administrator Da- tunity that calls for a great leap forward in social policy. vid Kessler would remain in his post. Something akin to the creation of Social Security in LaVelle said this too was a misunder- 1935, which she calls the most sweeping advance in so- standing for which Shalala was not re- See HEALTH, C4, Col. 1 sponsible. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 1/2 24 She has been labeled the "high The st. camped outside her of- priestess of political correctness." fice for SIX days before they moved to Those critiquing the new administra- the Board of Regents office, where the dorms to introduce herself to the Shalala attended graduate school at den say that Shalala, of all the Cabinet they were forcibly removed in an ugly freshmen. Syracuse University during an inte members, may be most likely to falter confrontation that sent one student to The university news office had to period on college campuses. Prof. Alan it. her new role because she is most the hospital with a broken rib. But it is staff her in shifts. She would be up be- "Scotty" Campbell, for whom she representative of the old-style liberal, not the broken rib or the six days of fore dawn walking her golden retriev- worked, recalled when students occu- most eager to find sweeping govern- sleeping on a hard floor that the stu- er, Bucky, then at her desk before pied a building to protest the Vietnam ment solutions for the nation's prob- dents regret. It is the pizza, because much of the campus was awake. She War. "Donna and 1 both stayed up all Ims, most caught in a mismatch of that image-the benevolent leader traveled frequently, maintained several night," he said. "Donna tried to talk the ideology and reality. Before her Senate buying food for her critics and thereby board memberships and attended cam- students out, which she successfully confirmation, Hill Republicans named closing the gap between them-has pus athletic events regularly. On many did. She had their confidence." her as the most likely nominee to incite evenings, she held receptions at her If the students arrived with liberal outlived much else about the protest. controversy because of her politics. "She totally co-opted us," said Jordan 30-room chancellor's mansion. views, Syracuse emboldened them, re- And Rush Limbaugh, the conservative Marsh, a student government leader at With few exceptions, her life was inforcing their sense of social justice redio talk show host, airs a regular the school. Never married, she main- and their belief in government. Shalala the time. "That's what she's so good Shalala update"-accompanied with a at. She was real smart. She was able to tains a wide circle of close friends, "was not that radical, but she was cer- (akeoff on the Eric Clapton song "Lay- play both sides." among them a group that includes for- tainly to the left of center. We all by: Shalala's as left as she can be And she can be brittle in the face of mer New York City Council president were," said Peg Goertz, now a visiting spends her time hugging trees Sha- criticism. Jason Bretzmann, who works Carol Bellamy and Texas columnist professor at Rutgers University. "I Layyyyyla. think everybody still believed that we with the student government, said Molly Ivins who have established a tra- Shalala blasted him in a telephone con- dition of taking exotic vacations togeth- could make a difference We were Shalala, of course, rejects not only the accuracy of the labels, but any no- versation last fall over testimony on er, including hiking in the Himalayas going to try to make the world better." tion that she will be paralyzed, or even college costs he was scheduled to pre- and rafting on the Salmon River. bethered much, by the obstacles be- sent to a congressional committee. Shalala summarizes her years at After earning her doctorate, Shalala fore her. "I've been running institutions "She pretty much started yelling Madison with no attempt at modesty: taught at City University of New York for almost 15 years," she said in her from the get-go, Bretzmann said. "She "I pushed them beyond where they and Columbia University's Teachers unvarnished, et's-cut-through-the-crap didn't want me going out there [to voice. "For the most part, I've had to thought they could go," she said. "That College. She worked at HUD until the Washington and saying bad things cut and refocus, as opposed to adding." place is better than it thought it could end of the Carter administration then about her university. She was trying to be." returned to New York as president of More important, she says, her philoso- intimidate a student." Hunter College. phy about government has evolved: As Shalala was learning the real- "There are limits to what you can spend." Shalala's mother, Edna Shalala, said world lessons of politics and manage- If Shalala's self-assurance has .."I did indeed start out as a flaming that as a child, Donna always fought to ment, her ideas about social policy caused trouble, it has also fueled her liberal," she said. "And I still have those be first. Her twin sister, Diane Fritel, were changing. She said she began to success. values. But as an administrator, I've Within months of her arrival, she in- said Donna "was always the leader." believe that government programs Shalala and her sister were raised in should involve more give and take, that been seasoned. I didn't come here ex- troduced the Madison Plan, a contro- pecting additional resources. versial affirmative action effort to in- a big white frame house with dark beneficiaries should be forced to take was trained in graduate school to crease the number of minority faculty green trim on the west side of Cleve- more responsibility for their own lives. and students. While she fell far short of land. Their grandparents on both sides She voices support for Clinton's prom- $ a Cabinet officer in the Johnson ad- ministration," she said. "I was trained her goals in attracting minority stu- had immigrated from Lebanon, and the ise to "end welfare as we know it" by in life to be a Cabinet officer in the dents, Shalala succeeded on most other family remained closely tied to the forcing recipients to find work after Clinton administration." Lebanese community. Their father, two years of benefits. aspects, including opening a multicul- Born in 1941, she was raised in a the late James A. Shalala, ran several "Just because you're a teenager and tural center and instituting an ethnic studies requirement. small grocery stores until he went you have a baby, you shouldn't expect to be on the public dole the rest of your "That was a totally gutsy thing to do life," she said. "People ought to be for a new chancellor of any gender, es- pecially for a woman of a major public bankrupt, then sold real estate. Their taught as they grow up that they will institution," said Prof. Susan Friedman. mother was a physical education teach- go to work and work most of their close-knit, middle-class family through In part, Shalala is driven by her love er who attended night law school when lives." the post-World War II economic boom of (At the same time, it is clear from years. She was in the first class of a contest, Friedman said. When her twin daughters were in elementary school. She is still, at 81, a practicing initiatives already announced-federal Peace Corps volunteers, spent two Friedman despaired over conservative criticism, Shalala practically rubbed lawyer. purchase of vaccines for all children, years in Iran and returned to a liberal- The twins were notorious tomboys, expanded funding to make Head Start minded graduate school in the midst of her hands in anticipation, saying, "This is going to be exciting." playing baseball with the neighborhood a full-day, year-round program for the anti-Vietnam protests. She says As the first woman named to head a boys and softball on a girls' team-the more children and major new federa. she smoked marijuana as a college stu- West Boulevard Annie Oakleys- regulation of the health industry-that dent and traveled to Washington for Big 10 university, Shalala was keenly coached by George Steinbrenner, now Shalala and the Clinton admi ation aware of the symbolic importance that peace demonstrations. would attach to her treatment of the owner of the New York Yankees. Once continue to see government as a pow- For all her professional seasoning, Shalala can still sound the misty-eyed athletic program. Robert F. Wagner they tied up a neighborhood boy and erful force in improving the welfare o Jr., former deputy mayor of New York threw him in a pit. society.) idealist, painting her past and present and a longtime friend, remembers her "We never wore dresses if we didn't Shalala spends a fair amount of ener in grandiose, quixotic terms. At the gy convincing people that she is indeed December news conference when Clin- walking into a Japanese restaurant car- have to," said Fritel, who lives on a farm in North Dakota with her hus- a "new" Democrat in the Clinton mold. ton announced her appointment, she rying "this enormous wad of maga- zines" on college sports. "She was in no band and four children. The girls "My ideas have evolved. I'm not thought back 30 years. "That was also played tennis competitively, and "Don- afraid of growing up. I'm not i ure a time of great hope," she said. "In fact, way an expert on college football," said Wagner, but she "mastered it in no na always won," her sister said. Their about that. I think that's okay," she I remember writing on my Peace time." mother still holds a national title for said. And finally: Watch what we Corps application that I wanted to make a better world. I still have that her age group. do, not what you think we were." Two years into her tenure, Shalala In high school, Shalala served as edi- Like the kid taking her personal fired the athletic director and the foot- dream." But her professional life has brought ball coach, replacing them with a popu- tor of the student newspaper, the bow, Donna Shalala wants all of us to lar alum and a Notre Dame coach. "West Tech Tattler," where she is re- watch her. Much of what happens in a series of choices forcing her in ways, Many say the athletic program is membered as "a real taskmaster" by government over the next four years big and small, to compromise. In the 1970s, as a director of the Municipal stronger now than it has been for Paula Slimak, who worked for her. will happen at HHS, an agency that "She was so driven, you did not want to spends 40 percent of the federal budg- Assistance Corp., the panel charged years. with rescuing New York City from its "This five-foot woman, to watch her cross her." But Slimak, who has kept in et, she argues. "That's why I wanted fiscal crisis, Shalala and the other di- deal with football she has a good contact with her over the years, also the job. The responsibilities are rectors proposed a long list of painful says Shalala was her idol. awesome. Awesome is the word. sense of the jugular," said Marian Wright Edelman, a friend of Shalala's Things weren't always easy. Shalal- At best, I'll be a tugboat captain. It's an retrenchments, including new taxes and president of the Children's De- a's father lost his business the year she extraordinary opportunity in leader- and cuts in the work force. It was a nightmare for Shalala and fense Fund, whose board Shalala graduated from high school, leaving no ship. But frankly, it's very scary." other liberals on the board, said Felix money to pay for college expenses. Fri- The crash of reality: Donna Shalala chaired. Finally, Shalala was extraordinarily tel said relatives helped her sister buy is scared? It is, for her, an extraordi- G. Rohatyn. the investment banker who still directs MAC. They all took a good at fund-raising, bringing in $400 clothes, and Shalala scrambled around nary moment of modesty. But it million from private donors. and won several scholarships. in a breath, and then she is hersel: beating in the press. But Shalala was "The consensus was that she was a When she returned home for her again, describing with utter surety how "rock solid," he said. "She understands first visit from college-she attended she will go about it, how she will exe there's no painless alternatives to any- great chancellor. But there was a divi- sion of opinion," said Prof. Ed Cortez. Western College for Women, in south- cute her plan to make the world a bet thing." In her most difficult decision at the "The old guard said, 'Who is this little em Ohio-she had "this funny accent," ter place. University of Wisconsin, Shalala ruled lady coming from New York wheeling her sister said, which she had appar- Staff writer Dan Balz and special against students who wanted her to and dealing and moving too fast.' ently picked up from East Coast class- correspondent Margaret Mason ban ROTC from campus because it dis- Many on the faculty didn't know mates. "We thought they had an uppity contributed to this report. criminated against gays. She agreed what to make of Shalala, who insisted accent. My father said, 'You're home with the students, she said, but felt as on being called "Donna," drove herself now, you can leave the accent be- around in a Jeep Cherokee and roamed hind.' chancellor she couldn't grant their de- mands because the only way for some students to attend college is through a ROTC scholarship. It was the way she handled that con- frontation that soured some students on her methods. One day she emerged from her office to face hundreds of pro- testers, stood before them and turned them down. Then she bought them piz- THURSDAY, APRIL 15, 1993 THE WASHINGTON POST za. 2/2 25" EPA Orders Decade of Oil Cleanup a Ta ik Farm MONT. By D'Vera Cohn The oil storage facility is oper- cused mainly on stopping the oil CO. Washington Post Staff Writer ated by Star Enterprise, which is from spreading, and those pumping MD. owned by Texaco Marketing and efforts will continue. The new order The Environmental Protection Refining, and by Saudi Refining Inc. VA. is aimed at reducing the amount of D.C. Agency has ordered a Texaco af- Those three companies, plus Tex- oil contamination and restoring the Enlarged filiate to begin work on a long-term aco, which used to run the facility, environment as much as possible. area P.G. cleanup-expected to take a decade were named in the order. Officials said that deciding on a pre- FAIRFAX CO. COUNTY or more-of a Fairfax County Star spokesman Shawn Frederick cise cleanup method will take about P.W. neighborhood polluted by a giant two years. CO. underground oil leak. The federal order requires Star The order, signed last week and We can 't let this and the other three companies Fairfax City 50 released yesterday, follows a break- linked to the leak to test local air ARLINGTON down in negotiations over terms of BLVD. the cleanup between the EPA and drag on. and water to enable the EPA to de- OLD LEE termine whether the leak poses any HWY. Accotink FAIRFAX the four owners of a Fairfax City oil - Kenneth Markowitz Creek risks to residents' health and the CO. storage facility linked to the leak. EPA assistant regional counsel environment. Benzene in oil vapors 3) "We have a responsibility to pro- tect human health and the environ- said that negotiations with the EPA has been linked to cancer, respira- PICKETT Fairfax broke down because the oil compa- tory problems and other illnesses. RD. ment," said Kenneth Markowitz, nies were worried that they would In about a year, the EPA will is- City EPA assistant regional counsel. lose influence in decisions concern- sue a report describing any health "We can't afford to wait. We can't Pickett Road ing the years-long cleanup if they and environmental risks that the oil tank farm let this drag on." signed an agreement with the fed- companies will use to form a plan to Star Enterprise, a Texaco affil- eral agency. reduce the oil contamination. The liate, already is pumping out oil con- When the EPA issues such an or- long-range cleanup probably will tamination underneath the Mantua Mantua der on its own, oil companies can include expanded pumping efforts, and Stockbridge neighborhoods. appeal in court if they disagree with and the oil companies will be re- TOVITO The leak was discovered in Septem- DR decisions the agency makes on a quired to test different methods ber 1990; oil from it-an estimated cleanup method or other matters, before making a cleanup proposal to 200,000 gallons covering 21 Frederick said. the EPA. acres-has polluted storm sewers Three other oil companies that The EPA must approve any long- Star Enterprise and back yards. also do business at the Pickett Road term remedy, after holding a public site Four families were evacuated tank farm-Amoco, Chevron and hearing. because of the leak. Dozens more Citgo-are not affected by the or- The federal agency plans to brief LITTLE have signed agreements to settle a der because they are not blamed for local residents on details of the RIVER 0 1/4 TNPK legal claim and sell their houses to the contamination. cleanup order at a community MILE THE WASHINGTON PUST Texaco. Cleanup activity so far has fo- meeting on April 22. Water Inspections Called Lax GAO Says Many States Are Failing to Ensure Supplies Are Safe By Tom Kenworthy federal Safe Drinking Water Act. "This new information raises a Washington Post Staff Writer Under those agreements, states are huge warning sign that millions of required to conduct periodic on-site Americans can no longer simply Largely because of a lack of funds inspections of water systems. EPA turn on their taps and be assured and lax federal oversight, many recommends more than a dozen that their water is safe to drink," states are doing an increasingly items to review, ranging from me- said Erik Olson, a senior attorney poor job of inspecting public water chanical protections against con- with NRDC. supply systems for deficiencies that tamination to operator training pro- Under the federal Safe Water could lead to water quality prob- grams. Drinking Act, all public water sys- lems, a study by the General Ac- "This new report makes clear tems that rely on surface water counting Office has concluded. that states are ill-equipped to de- must have in place by the end of The report by the GAO, re- tect and prevent serious drinking June either filtration systems or quested by Rep. Henry A. Waxman water contamination problems, watershed protection measures to REP. HENRY A. WAXMAN (D-Calif.), found that many of the such as the one in Milwaukee," said guard against the cryptosporidium "states are ill-equipped" nation's public water systems, par- Waxman in a prepared statement. parasite that affected the Milwau- ticularly small ones, need major im- Waxman, the chairman of the health kee water and another parasite, provements in protecting, treating and environment subcommittee of giardia. and monitoring water supplies, and the House Energy and Commerce The report by GAO, the inves- that states are routinely inadequate Committee, is sponsoring legisla- tigative arm of Congress, studied at regularly inspecting for and cor- tion sought by the White House to how states conduct so-called san- recting problems. create a new revolving federal fund- itary surveys of their drinking wa- : Release of the GAO report comes ing mechanism to help states im- ter systems. The agency found that amid increased concern over the prove drinking water facilities. many states conduct the inspections safety of municipal water supplies "This is exactly why we have too infrequently, fail to follow in- sparked in part by last week's con- called in the fiscal 1994 budget for spection guidelines suggested by tamination of Milwaukee's water a drinking water state revolving EPA and often do not correct prob- system by an intestinal parasite that fund," said EPA administrator Carol lems that are uncovered during the sickened thousands of city resi- M. Browner in reacting to the GAO inspections. dents. It also coincides with efforts report. "While drinking water officials at now underway in Congress and the Responding to the outbreak in all levels agree on the importance Clinton administration to bolster Milwaukee, the Natural Resources of sanitary surveys in ensuring the federal efforts to ensure safe drink- Defense Council yesterday released capability of a water system to pro- ing water supplies. information compiled by the EPA on duce and deliver safe drinking wa- All states except Wyoming have about 100 large drinking water sys- ter, EPA has done little to ensure agreements with the Environmental tems that do not currently protect that sanitary survey programs are Protection Agency to administer against such disease-causing organ- consistently implemented in all CAROL M. BROWNER the monitoring requirements of the isms. states," the GAO concluded. cites need for new federal fund THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 26 At the Beeline auto body shop in Juror's Illness Halts Pico-Union, a neighborhood with a large concentration of Central Amer- ican immigrants, Armando Marquez, the manager, said he had noticed Beating Deliberations; more police, and added that he is çon- fident authorities are prepared this time for potential violence. "They'll stop it," he said. "They City Remains Anxious have to." But, said Mike Nogueires, the 15- year-old son of the owner, "Every- Such warnings have left the city on body's got guns now. Everybody." By Lou Cannon a strange kind of sun-drenched ten- With little news to report, televi- and William Hamilton terhooks, as everyone from office sion and radio reports are full of spec- Washington Post Staff Writers workers to mechanics go about their ulation about the meaning of the ju- LOS ANGELES, April 14-A ju- business with one ear turned to the ry's five days of deliberations. The tor's illness abruptly interrupted de- radio. longer the jury stays out, said Debhra diberations in the Rodney G. King At the Jordan Downs public hous- Santos for L.A. Renaissance, an as- civil rights trial today, prolonging for ing project in Watts, Benjamin F. sistance organization for inner city at least another day the city's anxious Chavis, new executive director of the businessmen, the more "people are wait for a verdict in the case. NAACP, took a ghetto tour with gang wondering whether it will be hung." U.S. District Judge John G. Davies members who openly discussed last "Everybody is pretty low key," said granted the juror's request to visit a April's looting following the first ver- Hortense Peoples, a spokesman for Jamily doctor under custody of a U.S. dict. the First African Methodist Episcopal marshal. The rest of the jury, which "I got everything I could get," said Church, the largest church in south has been sequestered since opening George Bogard, 33, an "original central. "But after five days people statements began Feb. 25, was sent gangster" (O.G.) in ghetto parlance. are wondering, 'Hey, what's going on back to its quarters for the rest of the It was easy, Bogard said, because the with the jury?' Former federal prosecutor and Day. police "got the [expletive] up outta The news that Davies was sum- here." Loyola University law professor Lau- moning lawyers, defendants and re- Now, the cops are everywhere. A rie Levenson, who has been monitor- porters into the courtroom early this helicopter circled overhead as a uni- ing the trial, said Davies's decision to formed officer in a patrol car trained let the anonymous juror visit a doctor afternoon made it appear that a res- plution to the case was finally at videocamera in Bogard's direction. was "basic humanity." She said that if hand. Instead, his announcement that What will happen here if the the juror is too ill too continue, fed- the jury had adjourned for the day "wrong" verdict is rendered? "You eral rules stipulate that the case will know that by the first time." Bogard be tried by the remaining 11 jurors meant the eight men and four women have now deliberated for five days stuck his bulked-up and tattooed unless attorneys for both sides say without a decision, though only for 26 arms in the air like a cop had just they want a 12th juror. In that case the juor would be selected from the hours because three of the days were three alternates by lot. truncated. With at least another day of wait- The defendants in the case-Sgt. Sing in store, city officials again sought Stacey C. Koon, officers Laurence M. to reassure city residents that they asked him to, saying, "Man, ain't no Powell and Theodore J. Briseno and "are prepared for any outbreak of vi- brothers gonna put they hands up like former officer Timothy E. Wind- Colence that could be touched off by a this no more." could be sentenced to up to 10 years "verdict. They said some of the fever- Another O.G., "Sy," 34, added, "If in prison and required to pay $25,000 Sish anxiety that seemed to sweep the we was worried about that [exple- ines if found guilty. ecity early in the week has subsided. tive] verdict, you think we would be At the start of what proved to be "It's really quieted down yesterday standing here talking to your [exple- nother day of waiting, Koon and his and today," said Deputy Mayor Mark tive]? We'd be holding your (exple- ttorney, Ira Salzman, tried to break Fabiani. "People realize nothing has tive hostage." he tension at the Edward R. Roybal scome true that they've heard." "All I'm gonna say," continued Sy, ederal building, where the trial is be- South-central Los Angeles, scene "is four more white men got away 18 held. They entered the building of much of the rioting last year after with what they been getting away his morning wearing Groucho Marx with for thousands of years." dasses and false noses. the verdict in the state trial of the "four Los Angeles police officers and Fred Williams, a former gang Staff writers Ruben Castaneda, "one former officer accused of beating member who helped introduce Chavis -ynne Duke, Guy Gugliotta, Gary Lee "King, was calm today, except for an to these men and now operates a and Nell Henderson contributed to "unusually large police presence. "It grass-roots foundation for recaptur- this report. -appears that the rumors are gener- ing school dropouts, said he does not ated by neighborhoods that were not believe the city will explode. But with affected or only slightly affected by one side preparing "for war," he said, Last year's unrest," said Fabiani. the other side might respond in kind. Frankly the neighborhoods that "The city is preparing itself for were the hardest hit last year seem war, and this war seems to be tar- to be among the calmest this year." geted against these young men that Fabiani blamed homeowners live in the projects across south cen- Koresh Says Manuscrip groups in more affluent neighbor- tral," said Williams, 34. "All they feel "hoods for "irresponsibly spreading" is that the police is out to get them." some of the rumors that have circu- Of greater concern, said Williams, -lated in recent days. An example, he whose group is called the Common Will End Waco Standoff I, was a group in Los Feliz, an up- Ground Foundation, is the trial in July of the three black men charged with A5, Sper middle class neighborhood north- a Washington Post Staff Writer angels "ready to punish foolish west of downtown, that reported in the beating of a white truck driver, WACO, Tex., April 14-David mankind." its newsletter that a group of Los when the summer heat could strain Koresh pledged today that he and But Koresh appears to predict a GAngeles gang leaders had met in Bos- tempers even more. But the waiting for this verdict was his more than 90 followers will peaceful ending to the 46-day ton recently to plot targets during a clearly getting to many south central leave the compound after he com- standoff, which began with the Second riot. pletes a manuscript that deciphers shooting deaths of four federal In Brentwood, an affluent neigh- residents today. Eva Jackson, who horhood on the city's west side, res- runs a janitorial business, said she the seven seals of a biblical apoc- firearms agents and perhaps as had kept her children out of school alypse, according to his attorney many as six cultists. "Idents were warned at a recent Dick DeGuerin of Houston. Upon the completion of the neighborhood watch meeting to stay since the jury began deliberating. "I Indoors if violence erupts again and really wish this would be over," she DeGuerin, who spoke with Ko- manuscript, "I will be freed of my said, "because the kids are driving me resh for about an hour on the tele- waiting period," DeGuerin quoted told to turn off lights so drive-by gun- men would not have silhouettes for crazy." phone, said no specific time frame Koresh as saying in his letter. "I hope to finish as soon as possible was given for completion of the Margets. and stand before man and answer manuscript. However, Koresh has any and all questions regarding my nearly completed the first seal and activities." was working "night and day" to In a news conference earlier finish the other six, DeGuerin said. today, the FBI said cult attorneys In addition to announcing Ko- would not be allowed full access to resh's plans to leave the com- Koresh until he gives the specifics pound, DeGuerin also released of surrender. excerpts of a third letter from Ko- The FBI declined to comment resh that warns of an earthquake on Koresh's latest overture untill in Waco and the presence of four Thursday. 27 THURSDAY, APRIL 15, 1993 THE ION Court Won't Adjust 1990 Census Totals Count Called Questionable but Not 'Arbitrary' A27 tation and federal funds because By Barbara Vobejda Washington Post Staff Writer census numbers are used to draw political districts and distribute fed- A federal judge has refused to eral dollars. overturn a Bush administration de- McLaughlin also ordered that the cision to rely on "unadjusted" 1990 adjusted population figures be made census numbers for congressional available to communities. reapportionment. New York City Peter Zimroth, one of the attor- and other communities had argued neys representing the plaintiffs, that figures derived from a statis- said while he would have preferred tically weighted sample were more accurate than the actual head count. The decision by U.S. District Judge Joseph M. McLaughlin in The Census Bureau New York said former commerce secretary Robert A. Mosbacher's estimated it missed decision to use the unadjusted fig- ures was not "arbitrary and capri- about 3 million cious" and therefore could not be overturned. At the same time, Mc- individuals in the Laughlin said he felt the adjusted figures-those resulting from the 1990 census, most sample and designed to compensate for millions of persons missed in the of them minorities actual census-were more accurate and, if the decision had been up to living in big cities. him, he would likely have relied on those numbers. a ruling overturning Mosbacher's "The court concludes that the decision, "this is in many ways a secretary's ultimate decision very encouraging decision because against adjustment cannot be char- after a lengthy trial he found that acterized as arbitrary or capri- the adjusted counts were more ac- cious," the opinion stated. "Plaintiffs curate than the unadjusted have made a powerful case that [the counts." commerce secretary's] discretion Zimroth, a New York-based at- would have been more wisely em- torney with the Washington law ployed in favor of adjustment. In- firm of Arnold and Porter, who deed, were this court called upon to handled the case pro bono, argued decide this issue de novo, I would that the decision could encourage probably have ordered the adjust- communities to challenge political ment." districts and other census-based McLaughlin's opinion, dated decisions. That, he said, raises the Tuesday, says the plaintiffs illus- question of how the Clinton admin- trated that adjustment is statisti- istration would react if put in a po- cally feasible and "would improve sition of deciding whether to de- the quality of the counts for most fend the unadjusted census counts. purposes, while ameliorating the Rep. Thomas C. Sawyer (D- profoundly disturbing problem of Ohio), who heads the House Post differential undercounts." Office and Civil Service subcommit-; The Census Bureau estimated it tee on census, statistics and postal missed about 3 million individuals in personnel, said the ruling "does not the 1990 census, most of them mi- detract from the fact that Secretary norities living in big cities. About Mosbacher's decision against ad- three dozen counties, states, organ- justment was wrong. He just made izations and big cities argued that the wrong decision without violat- they were unfairly denied represen- ing the law." THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 28 U.S., Japanese Leaders Faced With Culture Clash U.S., Japan JAPAN, From A20 scheduled a 90 minute face-to-face session followed by a working lunch Disagree on Treasury Lloyd Bentsen-both in with back-up staff present, according Tokyo this week for the Group of to the Japanese Foreign Ministry. Seven meetings on aid to Russia- But the American insistence on Summit Focus got a detailed look at the big stimulus results, contrasting with the Japa- plan, which was timed for release nese focus on process, could lead to just before Miyazawa flew to Wash- difficulties. ington. One problem the two men face is By T. R. Reid Briefing American reporters later something that American business Washington Post Foreign Service on those meetings, American offi- people here always learn about in cials gave the plan mixed reviews. their cross-cultural training classes: TOKYO, April 14-Japan's Prime They said Christopher had called the the American and Japanese ideas of a Minister Kiichi Miyazawa is sched- program "a useful first step" but in- "meeting" are somewhat different. uled to arrive in Washington Thurs- dicated that Japan must do more. American meetings tend to have a day for an economic summit that U.S. media, accordingly, reported beginning and an end, and people like seems to have a strong chance of that the American leaders responded to walk out afterward with a sense turning into a transpacific culture cooly to the Japanese package. that some result has been achieved. clash. And yet Japanese officials, briefing Japanese meetings tend to be more The contemplative 73-year-old the press on the same top-level amorphous, and a meetings here can Japanese leader and his entourage meetings, reported a strongly pos- end successfully if they do nothing say they want his meetings Friday itive response from the visiting more than establish the format for with President Clinton to focus on the Americans. The Japanese media con- carrying out the next meeting. "process of dialogue" and the need for veyed this upbeat view. At Friday's meeting, the result- both countries to "be patient" while One Japanese diplomat involved in minded American officials have made developing a long-term relationship. the meetings, Toshi Ozawa of the clear, Japan's trade surplus with the The hard-charging 46-year-old U.S. Foreign Ministry's North America United States will be the key item on president, in contrast, is aiming for desk, seemed amazed to hear that the agenda-or at least, on Clinton's specific near-term results on trade the U.S. side had any reservations. agenda. In addition to the large stim- issues and has not exuded patience in "We did not hear anything unenthu- ulus package announced this week, his recent comments about Japan. siastic," from Bentsen and Christo- the American side wants Japanese The Japanese say Miyazawa is ea- pher, he said. "There has been no commitments to increase imports in ger to discuss a broad range of mu- comment that showed a negative certain specific trade sectors, includ- tual concerns; Japan will present pro- assessment." ing computers, telecommunications posals ranging from steps to deal A somewhat smaller risk of mis- and auto parts. with pollution in Eastern Europe to understanding arose when Christo- The more process-oriented Miya- better methods of teaching Japanese pher reportedly told Japanese offi- zawa seems to have different goals. in U.S. schools. The Americans, how- eials that the United States wants Asked this week to describe the con- ever, seem to be focused like a laser Japan to rebuild the economic crete ideas he is taking to Washin- on economic issues, particularly Ja- strength it had in the late 1980s. ton, the prime minister replied, "I pan's large and growing trade surplus Christopher evidently was referring think closer consultation between with the United States. to the desirability of a Japanese eco- our two governments." Such differences of goal and focus nomic boom fueled by domestic de- This leaves the possibility that can cause misunderstandings, as was mand rather than by exports. both sides could walk out of the evident here today. But the late 1980s, known as the White House dissatisfied Friday af- After Miyazawa's government an- era of the "bubble economy," are ternoon. Clinton will not be pleased if nounced a record-setting $115 billion seen here today as years of embar- the Japanese won't make clear economic stimulus package-a plan rassing and wasteful excess. To urge pledges to reduce the trade gap. designed to spark Japan's economy the Japanese to repeat it is roughly Miyazawa will feel unappreciated if and thus increase its imports from like urging Americans to revert to recent Japanese steps, such as the America-officials held special meet- the "me generation" days of the mid- big stimulus package and the coun- ings to explain the program. 1980s try's agreement to offer major finan- U.S. Secretary of State Warren Whether Clinton and Miyazawa cial aid to Russia, get lost amid a Christopher and Secretary of the can avoid this kind of problem at the long list of specific trade demands. See JAPAN, A23, Col. 1 White House Friday is not clear. At On the other hand, both men least there will be no language prob- would benefit from a successful lem; the erudite Miyazawa speaks transpacific partnership, and that articulate English. mutual political fact of life may over- Accordingly, the leaders of the come the built-in cultural differences world's two richest nations have surrounding Friday's session. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 29 U.S. Presses Its Allies For More Aid to Russia Washington to Unveil New $1.8 Billion Contribution A20 By Daniel Williams Washington Post Staff Writer TOKYO, April 14-The United States made preparations to unveil a new $1.8 bil- lion package of aid to Russia today but its allies were largely cool to American re- quests that each of them provide more bi- lateral assistance. Secretary of State Warren Christopher appealed for the new assistance from the Group of Seven major industrialized democ- racies meeting here to work out a large aid package for Russia. He went further than usual to warn of global adversity should re- formist president Boris Yeltsin lose an April 25 national vote of confidence. The country would take a "major step backwards," he said, and it would jeopardize an accord on nuclear weapons reduction as well as Rus- sia's current benign foreign policy. Christopher called Yeltsin "far superior" to his rivals in the conservative Russian legislature. But his comments did not ap- pear to set off an alms race among several prominent allies in the Group of Seven. The Japanese, swallowing hard to come up with their own $1.8 billion bilateral pack- age, said they did not expect to give more. Germany said it had done enough in the past, when it provided Russia with billions of dollars to speed reunification with East Germany. Italy pleaded economic hard times. The other members, France and Canada, made reference to their own domestic woes, participants in the meeting said. Brit- ain, expected to increase its aid somewhat, cautioned that Russian cooperation on for- eign policy issues must continue for aid to flow. Lack of enthusiasm could prove an em- barrassment not only to Yeltsin but to Pres- ident Clinton, who has invested much per- sonal energy and prestige in trying to whip up support for the Russian leader. In the past two days, Clinton has phoned both Ger- man Chancellor Helmut Kohl and Japan's Prime Minster Kiichi Miyazawa to ask that they open their purses. The Group of Seven is aiming to piece together a complex package of aid worth about $30 billion, with more than half com- ing from global lending agencies, such as the International Monetry Fund and World Bank. Clinton also wanted programs that would have a quick impact on public opinion in Russia during the political struggle ex- pected to persist beyond April 25, but it is See GROUP, A23, Col. 1 THURSDAY, APRIL 15, 1993 1/2 THE WASHINGTON POST 20 Plans Larger A'd Package for Russ'a, Seeks F elp From A l'es GROUP, From A20 The reluctance of G-7 members G-7 AID TO RUSSIA to raise their contributions reflects not clear how much each G-7 coun- both their internal economic pro- try is willing to give. MAJOR CATEGORIES OF ABOUT bems-most are in recession-and $30 BILLION IN AID TO RUSSIA The United States is expected to UNDER DISCUSSION IN TOKYO doubt that Russia, in political tur- announce its new bilateral assist- YESTERDAY AND TODAY: moil, would use aid effectively. ance Thursday, U.S. officials said. In this atmosphere of skepticism, The package combines money for $15 billion in Christopher sometimes sounded investment in Russia's leaky oil and I.O.U. debt rescheduling like a college fund-raiser addressing gas industry, housing for demobi- reluctant alumni. Sitting among the lized officers in the downsized Rus- ministers at a long oval table at a $10 billion in sian military, trade and investment luxury hotel here, he said that as assistance from the promotion, cultural exchanges and International part of its package, the United supplies of food and medicine. Monetary Fund States would put up $500 million to Washington will also provide $400 invest in newly privatized Russian million to fund continued disman- industries, but only if the allies sup- $4 billion to ply a combined $1.5 billion. tling of Russia's nuclear weapons convert state-run The money would be used to systems. At a summit meeting with factories to private modernize industry and to provide Yeltsin in early April, Clinton ownership, including: training for laid off workers. Social pledged another $1.6 billion, more $2 billion from services once offered by state fac- than half of it in food credits. the European Bank tories would be subsidized during a Both aid packages are designed for Reconstruction transition period during which to reduce the adverse effects of and Development schools and hospitals pass to local Russia's shift to a market economy, and the World Bank government control. U.S. officials transit likely to cause layoffs and described the program as the most social dislocation. $1.5 billion from innovative of the bilteral proposals. Today, Japan announced its aid other G-7 nations The allies are expected to respond despite an unresolved dispute with $500 million to the initiative sometime before Russia over four islands in the from the United the G-7 heads of government meet- Kuril chain, seized by Moscow at States ing to be held in July, also in Tokyo. the end of World War II. But U.S. NOTE: Group of Seven members are They may not be easy to per- United States, Japan, Germany, officials criticized the package be- suade. Klaus Kinkel, Germany's Treasury Secretary Lloyd Bentsen, center, poses with his Japanese counterpart Yoshiro Hayashi, right, and Japanese Britain, France, Italy and Canada. cause it was made up mostly of foreign minister, noted that Ger- Foreign Minister Kabun Muto before the Group of Seven meeting in Tokyo. is loans, which would probably be SOURCES: Reuter, Associated Press, many had provided billions of dol- KRT Graphics THE WASHINGTON POST lars in assistance to Russia and it aired in Russia to act as peace keep- would nonetheless produce the ficials said. "We have to show WISD tagged to purchases of Japanese ask Miyazawa for more at a meet- was not clear that further money goods. "It's business as usual," said ers in countries along its borders. desired results. "This meeting are all in this together and willing to might come from Bonn. "Now it is Nontheless, Britain announced aid sends a signal to the people of Rus- put domestic problems behind us," al a U.S. official. ing Friday in Washington. "Japan the others' turn," he told German totalling $500 million, mostly in sia that the major industrialized senior official said. Members of the Japanese dele- has financial constraints and we interviewers. export loans and may make further democracies are prepared to The proposed new package is gation appeared miffed that Treas- have made our best efforts, and I Douglas Hurd, Britain's foreign commitments Thursday. assist them not in some abstract $700 million above Clinton's ren ;ury Secretary Lloyd Bentsen, who personally don't expect we would secretary, tied aid to continued An Italian delegate pointed out way but in a down-to-earth, tan- quest for Russian aid in his newl is here with Christopher, failed to [be] asked for an additional contri- Russian cooperation to peace ef- that several hundred millions of dol- gible way." budget. Administration officials cau-" ;endorse the program wholeheart- bution," said a Japanese delegate. forts in Bosnia-Herzegovina, as well lars of old credits to Russia re- Clinton has been lobbying Con- tioned that the numbers could' edly. "We have done our best. Some as the withdrawal of Russian troops mained unpaid, implying that Italy gress to fund his new aid package change by Thursday because of In addition, they were taken grants, some loans. It's not so mis- from the Baltic states. He also ex- would not give more. and a show of reluctance from the continuing negotiations with the aback by reports that Clinton would erable," the delegate said. pressed concern about proposals Christopher said the meeting G-7 may harm the effort, U.S. of- G-7 and with Congress. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 2/2 ' rade Surplus I angs Over U.S.-Japan Talks Stimulus Plan Seen as Only Partial Solution creasing U.S. jobs and helping the By Paul Blustein U.S. economy, lies with the macro Washington Post Foreign Service factors-the rate of Japanese eco- TOKYO, April 14-No matter nomic growth and the exchange rate what President Clinton and Japanese of the yen versus the dollar," said C. Prime Minister Kiichi Miyazawa an- Fred Bergsten, director of the Insti- nounce after their White House meet- tute for International Economics and ing Friday, one central question will a prominent advocate of the macro loom: What are the Japanese doing to approach. bring down their stubborn trade sur- Bergsten's institute calculates that plus with the United States? a 1 percent increase in the Japanese Miyazawa, who is to arrive in the growth rate reduces the nation's sur- United States Thursday, will tell Clin- plus by about $5 billion, of which ton that Japan is planning to bring its something in excess of $1 billion rep- trade into better balance by imple- resents increased sales of U.S. prod- menting a record government spend- ucts in Japan. And a 1 percent rise in ing package intended to boost the Jap- the value of the yen against the dollar anese economy, according to also causes the Japanese surplus to Japanese officials. shrink by about $5 billion, although it And, the officials said, he will indi- usually takes a year or two for such cate that Japan is willing to allow the an effect to show up in the trade num- yen to rise, making foreign goods bers. cheaper and more attractive relative Under pressure from Washington, to Japanese goods. The yen has al- Japan adopted a strong macro policy ready surged close to an all-time high in the mid-1980s, spurring its econo- against the U.S. dollar in recent days. my to grow at very fast rates and al- The idea is to increase Japan's ap- lowing the yen to more than double in petite for foreign goods and, ultimate- value. The result: Japanese imports ly, reduce its trade surplus rather increased by about 60 percent in vol- than busting markets open or lower- ume terms from 1985 to 1990. And ing invisible trade barriers such as the when the economy slumped in 1992, cozy alliances among Japanese compa- so did imports. nies. The apparent effectiveness of mac- Such "macro" policies that try to ro policies explains why Clinton ad- boost demand seem to work. They ministration officials have been prod- have helped Japan significantly in- ding Tokyo to adopt as big a crease imports and reduce its surplus pump-priming package as possible. in the past, and, if properly imple- Treasury Secretary Lloyd Bentsen mented, probably will do so again, has made it clear that be is skeptical many economists say. that the $115 billion plan unveiled But even Japanese officials admit Tuesday is adequate. that the measures Tokyo is contem- Meeting with Japanese Foreign plating will not eliminate Japan's Minister Kabun Muto this week, Sec- chronic trade surplus, which hit a re- retary of State Warren Christopher cord $111 billion in the fiscal year even urged Japan to return to the that ended March 31. economic policies of the late Neither will the measures address 1980s-a bit of a stunner for the Jap- the complaints that foreign companies anese, since the boom of that time find it exceptionally difficult to com- was accompanied by a destabilizing pete in Japan in particular sectors "bubble" in stock and land prices. such as glass, construction and super- The effectiveness of raising the computers. yen explains why Japanese officials "The big money, in terms of in- See TRADE, D16, Col. 1 Trade Surplus Seen as Ongoing U.S.-Japan Problem TRADE. From D11 Perhaps more important, macro other over the long term. even if Japan's economy grows at an have igen willing to see the currency policies will not help with "X-Fac- It is over these sorts of problems acceptable pace, and even if the yen tors"-a term coined by Glen S. Fu- that Washington and Tokyo appear to appreciate over time, although they appreciates gradually, a trade surplus kushima, a former U.S. trade negotia- be in danger of a serious rift. have warned in recent days that its on the order of $50 billion would like- tor, for the peculiar problems many Noboru Hatakeyama, the vice min- ascent-has been too fast. The yen has ly remain. foreign companies encounter trying ister for international affairs at the surged more than 10 percent against Indeed, many economists argue to sell to the Japanese. Ministry of International Trade and the dollar since the beginning of the that Japan will never get rid of its sur- In a magazine commentary, Fuku- Industry, said this week that on a re- year, arousing fears that Japanese ex- shima notes that a company offering cent trip to Washington he was ap- plus unless it undergoes a far more radical transformation than anything porters might be hit so hard that the the cheapest, best-quality product will palled by the number of administra- recession would deepen anew. tion officials who argue that Japan's now being contemplated. Land poli- not always win the sale in Japan be- The appreciation of the yen, how- cause of factors that "are only re- "unique" market barriers necessitate cies would have to be drastically motely 'economic' criteria from an creating import targets. changed, for example, to allow bigger ever, makes it very expensive for for- eign companies to build facilities or American point of view." Japan, he added, will never yield to homes so that people would have station people in Japan, which may re- U.S. demands for specific import room for more consumer goods. Among these, he said, are the ties goals under threat of retaliation, be- "A country that has had a trade tard imports somewhat. that bind members of keiretsu-cor- cause that is "managed trade." surplus year in and year out e "It's a mixed blessing," said William porate families-together, or even Farrell, executive director of the "The main road for having an im- 1960," said Kenneth Courtis, cl the ties that bind people who went to American Chamber of Commerce in pact on the balance of trade is with economist at Deutsche Bank Capital the same college and therefore feel the macro approach," Hatakeyama Markets (Asia) Ltd., "is a country that Japan. more comfortable dealing with each said firmly. But he acknowledged that is structurally under-consuming." THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 32 U.S. Plays Down Russian Space Role 'No Decisions' Have Been Made on Participation in Station Redesign PIP By Kathy Sawyer NASA began its redesign effort last month at the Washington Post Staff Writer direction of the White House, which wanted the current $31-billion price tag for the U.S. orbital laboratory cut The administration's reported plan to have the Rus- in half. Reaction to the Russian connection is the latest sians and the United States build a space station togeth- in a series of political brush fires related to the redesign er has raised doubts at the highest level. that have preoccupied the White House science office in "Is that a good idea?" mused NBC's "Tonight Show" recent weeks. The administration has placed stringent host Jay Leno Tuesday night. "Know what that means? spending and schedule limits on the NASA redesign We're gonna wind up with a space station that has a team. Some of those familiar with the process say it is $30 million toilet-and no toilet paper." an almost impossible task and that the difficulty has Leno apparently was not alone in his skepticism. motivated Goldin to look increasingly to the Russians The White House had already moved that same day, and their hardware for salvation. in a letter to the NASA admininstrator, to limit what it Goldin emphasized yesterday that NASA's role is calls "confusion regarding the participation of the Rus- only to be "an honest broker" among many competing sians" in the National Aeronautics and Space Adminis- interests by presenting data to the White House, which tration's effort to redesign its planned space station. will make the final decision on the space station design. The April 13 letter from White House science advis- He praised Gibbons's letter for clarifying the ground er John H. Gibbons to NASA administrator Daniel S. rules. "There is no hidden agenda." Goldin, which was obtained by The Washington Post, The White House also wants to mollify the space sta- says, "I would like to make it clear that the White tion program's international partners: Canada, Japan House has made no policy decision to focus our space and 10 European nations. Gibbons notes in the letter station redesign effort around present or future Rus- that the administration had consulted them about the sian capabilities. In particular, NASA should not limit its Russian arrangement, but sources say some agreed redesign options to those compatible with the orbit of only reluctantly. The partners have spent several billion the Russian Mir space station." dollars on their contribution to the project, and it is not The White House is uneasy that expectations for co- clear how a new design will accommodate them. operation with the Russians may have been raised too Russian and American scientists have long pressed high, too fast, one official said. "It's a question of pace." for closer cooperation between the two superpowers. Another official said the paramount worry is that the But both Russian and American experts on the Russian apparent tilt toward the Russian option is jeopardizing program caution that integrating the two systems the "integrity of the redesign process. No deci- would not be cheap. sions have been made." "There is a working assumption," a White House of- The alleged confusion stems from Gibbons's an- ficial said, "that careful use of some of their hardware nouncement last week that the administration would could provide a means of doing it [the space station] give "full consideration" to use of Russian assets in the cheaper and sooner." design of the orbital laboratory. It has invited a team of Both Goldin and White House officials flatly ruled out Russian experts to serve as consultants in the process a plan proposed by some U.S. and Russian engineers to on an "as-needed basis." The Russians have the world's use the Russian Energia superbooster for launching the only operating space station, Mir. space station. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 33 In Kuwait, rule over t country, then a very can people beca without the nation poor pearl-fishing center, by slaying behind him, he could do nothing." his two main rivals for power-his When her newspaper announced it A Gusher for Bush brothers. Barbara Bush and the other would accept symbolic gifts from the women in the party were feted at a public and deliver them to the Bush separate dinner. party, scores of homemade offerings, Three-Day Visit Begins "Mere words cannot express how many from children, arrived, includ- proud I am to be here with you on the ing a greeting card with a picture of a As 'Operation Desert Love' hallowed ground of Kuwait," Bush flying Superman with Bush's face. It said afterward. "It gives me tremen- was addressed to "Dad Bush" and dous personal satisfaction to know signed "Your daughter, Mariam Mu- that together we really made history. hammed al Muhaini." By Caryle Murphy Together, we stood up to naked ag- "We were very sensitive about ac- Washington Post Foreign Service gression and proved once again that cepting these gifts. We didn't want KUWAIT CITY, April 14-"Read Our Lips: Wel- the thirst for freedom will always them to be of great [monetary] value come Home!" declared today's banner headline in the overwhelm those who seek to quench since he's now a private citizen and Arab Times as Kuwaitis emotionally welcomed the it with the bitter brine of tyranny." we know he will have to pay taxes," man they credit with giving them back their country. Bush will receive an honorary de- said Marzook. George Bush, whose recent election defeat gets gree from Kuwait University; address But some Kuwaitis are uncomfort- about the same treatment here as a piece of mali- the newly elected National Assembly; able with the more extravagant gifts, cious gossip, has arrived for his first visit to this tiny, meet members of the U.S. Army's reportedly including a diamond-en- oil-rich desert state whose lightning occupation by 24th Infantry Battalion, here for exer- crusted watch, that their fellow citi- Iraqi forces in August 1990 became the daily preoc- cises with the Kuwaiti military; and zens are planning to present to Bush. cupation of his administration for seven months. visit Kuwait's oil fields, which hold But amid the fierce pro-Bush mood "If we could give him our soul, it's not enough," one-tenth of the world's petroleum here, they could only express such Munira Rifai said breathlessly as she rushed into the reserves and were badly damaged by sentiments privately. "Some people U.S. Embassy with a gold-and-pearl necklace for Bar- retreating Iraqi forces. think it would be better to give him bara Bush, who came with her husband. freedom. "He is the We Kuwait's information minister and symbolic gifts, not gold and all this big love voice him. in I don't the know how to explain it, me and all world. He gave us former ambassador to Washington, fancy stuff. He doesn't need it," said a Saud Nasser Sabah, said it was only young Kuwaiti reporter. the Kuwaitis." last month that Bush accepted the And other Arabs, many of whom Bush's three-day visit, which one columnist dubbed emir's invitation to visit, first extend- regard Kuwaitis as self-absorbed, "Operation Desert Love," also puts him as close as he ed shortly after Kuwait's liberation in spoiled and over-dependent on the has ever been-or ever is likely to be-to his Per- February 1991. Bush consulted with United States to the neglect of their sian Gulf War adversary, Saddam Hussein. About the Clinton administration about mak- Arab cousins, are likely to have such feelings reinforced by the hyperbolic 350 miles north of here, in Baghdad, ing the trip, and "the White House rhetoric and pomp of Bush's visit. blessed the visit," Sabah added. Just the Iraqi president is stewing amid "These stupid people don't realize to make sure there are no misunder- constricting U.N. economic sanctions, that the Americans fought for petrol standings, the emir extended a formal but still in power. and gas," said an Egyptian living here. invitation last week to President Clin- Kuwait's Emir Jabir Ahmed Sabah "One should not blame the Kuwait- ton to visit Kuwait. greeted Bush today in a low-key, no- is for feeling this way," replied a se- But Kuwaitis, not yet able to grasp speeches ceremony at the airport as nior adviser to the emir. "For some- that their hero is now just a private U.S. and Kuwaiti flags fluttered under one whose country has been erased citizen, still widely refer to him as a cloudless blue sky. Thousands of from the map, and an American came "President Bush." schoolchildren lined the airport access and liberated it. Where were the road, chanting, "Thank you, Bush!" "It's hard for us to say 'Mr. Arabs when we were occupied? If we and waving signs bearing such slo- Bush,' said Bibi Marzook, editor of are betraying the Arab cause, where gans as: "You are the sunshine in our Al Anbaa newspaper. "But to be fair was the Arab cause when we were lives" and "A Friend in Need Is a to us, it's not undermining Mr. Clin- occupied? The Kuwaiti people are not Friend Indeed." ton. For us, Mr. Bush, or Presi- enthusiastic about anything called the dent Bush, is a symbol of the Ameri- Arab cause." On the rest of the route to the emir's sumptuous Bayan Palace, where the Bush party is staying, crowds were sparse; security-con- scious police had closed roads to traf- fic. Bush, affectionately known here as "Abu Abdullah," came with several family members and friends, as well as officials from his administration, in- cluding former secretary of state James A. Baker III, former treasury secretary Nicholas Brady, former White House chief of staff John Sunu- nu and retired U.S. Army Lt. Gen. Thomas Kelly, chief Pentagon briefer during the Gulf War. Their arrival was delayed a day when the first Ku- wait Airlines jumbo jet sent to pick up Bush developed technical problems shortly after takeoff from Houston on Monday. At ad all-male dinner for 700, the emir presented Bush with Kuwait's highest honor, the Mubarak Kabeer Chain, which is named for the Kuwaiti leader who a century ago solidified his THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 34 U.S. Moved Quickly to Calm Pakistan And India After Bombay Bombings By John M. Goshko leaders and commentators-among The Pakistanis were urged to and Don Oberdorfer them a former defense minister, cooperate fully with India's inves- Washington Post Staff Writers Sharad Pawar, and the leader of the tigation of the bombings and, if opposition in parliament, Lal Pakistani citizens were found to be The United States intervened Kishanchand Advani-were quick involved, to help bring them to jus- vigorously to calm tensions be- to charge that the bombings were tice. tween India and Pakistan last month the work of Pakistani intelligence When Akram Zaki, secretary because U.S. diplomats feared that agencies. general of the Pakistani Foreign India might take military action Recognizing what one official Ministry, accused India of fabricat- against Pakistan in response to the called "the potentially incendiary ing evidence so it could blame his wave of bombings in Bombay, U.S. nature of these charges," the Unit- officials said yesterday. country for the bombings, the Unit- At the time, the officials said, ed States immediately mounted a ed States sent a blunt message to campaign to cool passions on both Islamabad that such talk should be there was great concern here that sides. the always volatile relations be- stopped immediately. Last week, tween India and Pakistan could The officials said that perhaps when Chaudri Nisar Ali, a special drupt in fighting. In the ensuing the biggest role was played by Pakistani envoy, came here for weeks, the situation has calmed Thomas R. Pickering, who then was talks about improving relations, donsiderably, partly as the result of winding up an assignment as U.S. Secretary of State Warren Chris- U.S. efforts, and it no longer is con- ambassador to India and preparing topher reminded him that the Unit- sidered an imminent danger to the to become ambassador to Russia. ed States would be watching to see peace of the Indian subcontinent, The effort also was pursued vigor- whether Pakistan cooperates in the officials added. ously by John Monjo, the U.S. am- solving the Bombay crimes, officials : "We have seen nothing to indi- bassador in Pakistan, and by senior said. date that any Indian government State Department officials here. There has been a growing as- official has decided to retaliate or "Where the Indians were con- sumption in Bombay that the bomb- that the Pakistani government was cerned, our aim was to calm them ings were carried out by profession- responsible for what happened in down and convince them that they al criminals hired by a Dubai-based Bombay," a senior U.S. official said. shouldn't draw hasty conclusions family of Pakistani origin that has Initial reactions were different that would cause them to jump off a extensive organized crime interests after a dozen powerful explosions cliff precipitously," said one official. in Bombay and other Indian and ripped through the heart of Bombay "We told them that even if it turned Pakistani cities. The Indian police on March 12, killing at least 250 out they had been victimized by for- have claimed that the bombers re- people and injuring more than eign forces, they should turn to the ceived some training in Pakistan 1,000 others. international community for redress and may have obtained explosives The Indian government did not rather than seek to retaliate on there. make any accusations against its their own." However, one U.S. official said, northern neighbor. However, anti- U.S. officials also sought to cap- "No evidence appears to have Pakistani sentiment already was italize on the fact that Pakistan has turned up to implicate the Pakistani mounting in India because of Pak- been trying to improve relations government directly, and as the istan's alleged fomenting of terror- with the United States after being weeks have gone by, more and ist activities by Muslim groups in warned last January that, because more people have concluded that Kashmir, a province of India whose of Pakistan's activities in Kashmir, the evidence is too mixed to draw ownership Pakistan also claims. Washington was considering listing any clear-cut conclusions. That, in In that charged atmosphere, in- it officially among the countries that turn, has helped reason and ration- dividual Indian officials, political abet terrorism. ality to prevail." THURSDAY, APRIL 15, 1993 THE WASHINGTON POST Rabin and Mubarak Meet, Lift Mideast Talks Outlook Israeli Concessions Indicated, Not Specified 422 By Linda Gradstein have built since Rabin's election last Special to The Washington Post June. Egypt is the only Arab coun- try which has signed a peace treaty JERUSALEM, April 14-Israeli with Israel, and sees itself as a me- Prime Minister Yitzhak Rabin held diator between Israel and the Arab talks with Egyptian President Hosni parties, including the Palestinians. Mubarak in Ismailia today that ap- Rabin reportedly has agreed to a peared to facilitate resumption of list of concessions proposed by Sec- the Middle East peace talks in retary of State Warren Christopher Washington on April 20. to enable the Palestinians to return At a joint press conference, they to the peace table. refused to give details about what In addition to Israel's willingness concessions Israel was prepared to to allow previously excluded Faisal offer the Palestinians to bring them Husseini to join the Palestinian del- back to the table. But Mubarak egation, Israeli officials said they in- seemed optimistic that all parties clude the return of some Palestin- will attend. ians expelled from Israel between "Peace is so precious that it's 1967 and 1987 and a statement worth any concession," Mubarak that Palestinians will not be de- said. "We were trying hard just to ported in the future except under persuade the parties to meet on the extraordinary circumstances. 20th of April to start negotiations." Staff writer John M. Goshko Any Israeli concessions are likely added in Washington: to be announced only after the Pal- U.S. officials said they were urg- estinians agree to attend. The ing the Arabs and Israel to speed up peace talks were suspended after the talks by holding continuous ne- Israel expelled almost 400 sus- gotiations rather than the periodic pected Islamic fundamentalist ac- rounds of approximately two weeks tivists in December. Rabin later each that have characterized the agreed that 100 could return im- process for 17 months. mediately and the rest by the end of The U.S. suggestion was made the year, a proposal the Palestinians during consultations between the rejected. four Arab participants and senior Rabin said he told Mubarak he U.S. officials led by Edward P. did not intend to make any further Djerejian, assistant secretary of concessions on this point. state for Middle East affairs. Rabin and Mubarak also dis- The officials said that Djerejian cussed the prospects for peace be- gave the Arabs a detailed explana- tween Israel and Syria. Rabin said tion of what the Clinton administra- be told Mubarak he wants clarifi- tion means by its promise to be "a cation from Syria as to what the full partner" in future neogotiations. Syrian definition of peace with Is- According to the officials, he rael means. stressed that the United States "We accept the principle of a would not take a seat at any of the withdrawal on the Golan Heights in four conference tables where the the context of peace," Rabin said. Israelis and Arabs are trying to "We will not negotiate the dimen- work out agreements. They added sion [of the withdrawal] before that the United States does not plan knowing for what kind of peace." to be a mediator. Nor would Chris- Mubarak sought to persuade topher or other U.S. officials en- Rabin that Syrian President Hafez gage in shuttle diplomacy. Assad, with whom Mubarak has But, the officials said, the United met, is committed to peace with Is- States does intend to be more ac- rael. "He said 'All for all,' Mu- tive in critiquing proposals. And, barak said. "I could understand it the officials said, if the negotiations [as] peace with all its meaning on start to show signs of progress, the both sides." United States will offer bridging The meeting further developed proposals that might help to over- the relationship Mubarak and Rabin come obstacles. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 36 Western Anxiety Deepens Over Bosnian Crisis Unappealing Options, Sense of Helplessness Frustrate U.S., Allied Leaders The Clinton administration and the Serbs until after the referendum By William Drozdiak West European leaders are worried to avoid hampering Russian Presi- and Peter Maass that their options may be narrowed dent Boris Yeltsin and his reformist Washington Post Foreign Service even further if the heavily armed government in its struggle with re- Serbs succeed in their current mil- actionary forces in parliament. As an escalating Serb nationalist offensive itary campaign to seize the whole Yet Britain and France also have drives more Muslims out of eastern Bosnia, eastern Bosnia and purge the towns expressed qualms about lifting the the United States and its European allies of their Muslim residents and tens of arms embargo to enable Bosnia's fear that a de facto "Greater NEWS thousands of Muslim refugees driven government to acquire the means to Serbia" may be created while ANALYSIS there by earlier Serb attacks. combat the Serb nationalists-who Western governments are im- Once the Serbs consolidate those are armed by Serbia and the new mobilized in debate over the risks of military territorial gains, perhaps within the Yugoslav state it controls-on more intervention and the political crisis in Russia. next months, Western military and equal terms. Paris and London claim Despite the mounting international outrage political analysts expect them to "sue that allowing weapons to flow to the over Serb aggression, Western officials ex- for peace" by urging a cease-fire to Bosnian government would only ex- be backed by the international com- acerbate the fighting and encourage munity. The West would then be con- Russia to supply arms to the Serbs. press helplessness about the range of gloomy fronted by the choice of supporting In the absence of any consensus on options they face as the last three Slavic Mus- continued fighting or accepting ter- the Security Council to lift the arms lim enclaves in eastern Bosnia are on the ritorial gains achieved through mil- embargo, administration officials say brink of being overrun by Serb militia forces itary aggression and the expulsion of that one possible shift would be "se- that already control 70 percent of the repub- non-Serbs from their lands and lective enforcement." U.S. ships now lic. "There's a sense of frustration," said a sen- momes known as "ethnic cleansing." patrolling the Adriatic Sea, they say, "It will place us in a horrible dilem- might be given orders to step up ior U.S. Army officer involved in the policy ma," said an administration official in- their scrutiny of vessels suspected of debate. "There are only bad answers, and you volved in the Bosnia policy review, supplying Serbia, while ignoring pick the one that's least worse." U.S. and European officials said there is noting that "there is-a long list of in- those ships that are delivering sup- hibiting factors" associated with ev- plies to Bosnia. persistent reluctance on the part of their mil- ery conceivable policy decision. But administration officials say itary leadership to commit ground troops to Meanwhile, Serb forces in Bosnia, they fear that even that kind of policy enforce peace in Bosnia or even to engage in continued to tighten their year-long shift could undermine Yeltsin in his siege of Srebrenica-the largest of political battle with old-line Russian air strikes against Serb artillery positions, the three Muslim enclaves-where communists and ultranationalists who arguing that such action could provoke repri- as many as 60,000 trapped civilians believe the West is pursuing an anti- sals against U.N. humanitarian aid forces on face death from starvation and heavy Slavic line in seeking to tighten sanc- the ground. Serb shelling. Nearly 60 people were tions on the Serbs. killed by Serb shelling there on Mon- Bosnia's Muslim president, Alija While American airdrops of food and med- day, one of the bloodiest episodes of Izetbegovic, has urged the West to icine to the isolated Muslim enclaves have the year-old war, and at least eight use air strikes to break the Serb improved in accuracy and are now reaching more were killed Tuesday-just after stranglehold on Sarajevo, the be- large numbers of desperate people, the over- a U.N. convoy evacuated about 650 sieged Bosnia capital. But Western all civilian relief effort is still imperiled by people to more secure Muslim ter- military experts say that such action dwindling stocks and the difficulties U.N. sup- ritory. could endanger the lives of the ply convoys face in getting through Serb If Srebrenica falls-or when, as 10,000 U.N. troops, relief workers lines. most analysts now phrase it-West- and U.N. observers who make up the See BOSNIA, A24, Col. 1 ern military experts predict the international presence in Bosnia. Serbs will press ahead to wipe out U.S. military planners also are the last pockets of Muslim resistance wary of a proposal by an American in eastern Bosnia, the refugee- investigating mission to create "safe packed towns of Zepa and Gorazde. havens" in Bosnia to protect Muslim BOSNIA, From A20 U.S. special envoy Reginald Bar- civilians, because these would re- tholomew, who met yesterday with quire the use of ground troops that Administration officials acknowl- Slobodan Milosevic-president of could become embroiled in a hostile edge that the presence of U.N. forces in the midst of Bosnia's three-sided neighboring Serbia and the Bosnian quagmire. nationalists' chief patron-insisted The Serb refusal to sign the peace factional war restricts the possibilitiy that the Bosnian Serb faction must agreement-which would divide the of bringing effective military force to bear in the republic-including air agree to sign a U.N.-sponsored peace country into 10 largely autonomous accord immediately or the interna- provinces-has spared the United *strikes-yet the risk of widespread tional community "will make of Ser- States and its allies from confronting famine if food deliveries were halted bia a pariah state for as far ahead as their commitment to send ground appears too great to permit a sudden we can see." troops to enforce the agreement. removal of U.N. aid support forces. "The military and human horror The NATO alliance has prepared The reluctance of the West to take has to stop now," he said. "Bosnian plans to dispatch up to 70,000 troops, forceful action in Bosnia drew angry Serbs have to do it now." including 20,000 Americans, to the criticism today from former British Bartholomew also warned that the region to help enforce the terms of prime minister Margaret Thatcher, Clinton administration would press the peace plan. who accused Europe of being "an ac- But even if the Serbs made a sud- for Bosnia's Muslim-led government complice to massacre" by spurning all den turnabout and subscribed to the to be exempted from a U.N. arms forms of military intervention. "I am plan, there are doubts that the West- embargo on the warring parties if the ashamed of the [European Commu- ern allies would be able to muster the nity] that this is happening in the Serbs fail to sign the peace plan. But that initiative has run into opposition necessary troops. Pentagon officials theart of Europe and they have not I say a commitment of 20,000 troops from other permanent members of done any more to stop it," Thatcher the U.N. Security Council. would cause serious problems for the told the BBC. "It is within Europe's U.S. European Command when Russia, which maintains close his- sphere of influence; it should be with- American forces are being rapidly torical ties with Serbia, has been re- in Europe's sphere of conscience. withdrawn from the continent. Brit- There is no conscience." luctant to approve tougher sanctions ain and France say their armed against the Serbs or to allow arms to forces are stretched to the limit and Bosnia priopr to a crucial April 25 cannot afford a new international referendum that is to decide the mission. course of Russian politcal and eco- nomic reform. The United States and Maass reported from Split, Croatia; its allies have quietly agreed to delay correspondent Eugene Robinson in any further punitive actions against London and staff writer John Lancaster in Washington contributed to this article. 37. THURSDAY. APRIL 15 THE FEDERAL DIARY Clinton's Sector Strategy By Mike Causey many federal workers believe Washington Post Staff Writer they are paid less than their counterparts in industry. Most T he Clinton administration, of the government's which wants to freeze white-collar workers get the federal pay through 1994, same salary, in the same job, may try to reduce future raises regardless of where they work. on grounds that many Industry pays city-by-city rates. white-collar jobs are either Locality raises for federal overgraded or compared to the workers are to start next year, wrong higher-paying private- along with a 2.2 percent raise sector jobs, thereby across the board. The White establishing an exaggerated pay House wants to skip both until gap. 1995 and restudy the entire pay Government vs. industry pay matchups by the Bureau of comparison process. Labor Statistics show that, on Sick List average nationwide, the National Treasury Employee government pays about 30 Union President Robert Tobias percent less than employees is recovering from major surgery could get doing the same jobs in earlier this week. He's expected industry. Many people in the to be home in a few days. Cards private sector and the or get-well notes should be administration don't believe the addressed to union headquarters gap is that big. Pay comparisons at 901 E St. NW, Suite 600, don't include the value of fringe Washington, D.C. 20004. benefits. Officials at the Office of Family Ties Management and Budget have Wall Street Journal reporters been concerned for years that Joseph B. White and Paul city-by-city pay comparisons Ingrassia won a Pulitzer Prize are sometimes flawed because for their coverage of not enough private sector pay management turmoil at General data or the wrong Motors Corp. Ingrassia is the jobs contrared. The federal nephew of Tony Ingrassia. He's government has 15 pay grades chairman of the Federal plus 10 longevity steps each Prevailing Advisory Committee worth 3 percent of salary. Many and a former Milwaukee reporter occupations can be found in and labor union official. several pay grades. Broadcasting Jobs The typical white-collar The U.S. Information Agency federal worker here makes is looking for a director for about $46,400. That's $10,000 WORLDNET, its international more than federal workers broadcasting production, and a outside the Washington area. deputy for projects Federal pay is higher on management. The Senior average than the private sector Executive Service jobs pay because private industry $92,900 to $115,700. For includes many low-paying details, call Janet Haspert at service jobs that don't exist in 202-619-3117. government. The government has more scientists than Science Opening secretaries, for example, and it Agriculture's Food Safety has a much higher proportion of and Inspection Service is professionl, technical and looking for a GM (merit pay) 14 administrative jobs than supervisory microbiologist. Call industry. Teresa Adams at But on a job-for-job basis, 202-720-6617. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 38 Jim Hoagland Prepared for Non-Combat A29 THE WASHINGTON POST Conde is a Marine gunnery sergeant, cle, grabbed the sunglasses Conde was wear- from feeding the starving to acting as an or so American troops will stay to provide the "an individual trained to be one of mankind's ing and jumped back. The Marine sergeant urban police force." core of the U.N. force. thost efficient killers when the circumstances said he did not immediately realize what had The Conde case does raise a larger issue. If This is an opportunity, not a loss of sover- demand. in the dusty streets of Mogadishu happened and fired in fear of a terrorist the United States is going to commit its large eignty or some other calamity to be decried. A -two months ago, Conde thought those cir- attack. The court-martial panel implicitly re- military establishment to future humanitarian small U.S. force will be left in an essentially Cumstances had arrived. jected that claim, but gave Conde a mild or peace-keeping operations, should the Pen- non-combat situation operating under a U.N. Before he shot and wounded 13-year-old punishment in recognition of his previously tagon retrain and reequip some combat units command subject to a U.S. veto in the Security "Whmed Abdi Omar, Conde was an American unblemished record. for such duty, rather than following the pre- Council. U.S. involvement is necessary to give "hero feeding starving Somali children. He and What caught my eye in the account of sent ad hoc approach that helped put Conde in this new U.N. force credibility, experience and his mates in Operation Restore Hope were the Conde's trial filed to The Post by Africa trouble's way? And if America takes that step, leadership. America in turn will be able to help New World Order writ small in human detail, correspondent Keith B. Richburg were two should it then earmark or assign those units to shape the new forms of international interven- 6 the filigree on the fabric of international rela- related points, one made by Conde's defense a United Nations command to avoid both the tion a changed world may require. bitions beyond the Cold War. lawyer, Capt. Stephanie Jennings, the other by image and the responsibilities of America's That will not be much consolation for Sgt. Today Conde is a convict, his career in playing world policeman? Conde or for Omar. What comes next in Richburg. They are points central not only to jeopardy and his pride in being part of a new this small human drama but to bigger ques- These questions are being debated in the Somalia will not undo their tragic encounter. American approach to peace-keeping and hu- tions facing American military planners and corridors of the United Nations, at the most But America's continuing, softer involvement manitarian action shattered. That transforma- commanders in the ambiguous and messy prestigious think tanks in America and Europe in Somalia may provide some valuable ex- tion began in the few seconds it took for and at international gatherings such as the perience in avoiding or decreasing such inci- "Omar, an accomplished street thief, to reach conflicts that are replacing all-out war in Europe as likely arenas for the use of U.S. recent Trilateral Commission meeting here. dents in the future. into Conde's patrol vehicle and for the gun- The Trilateral discussion, attended by senior mery sergeant to blast away at the Somali force abroad. The fact that the Mogadishu shooting and U.N. and U.S. officials, reflected a broad Conde's trial were treated as news is in some youth with an M-79 grenade launcher loaded It was unfair, Jennings argued, "to send consensus within that influential elite that ways testimony to the success of Operation with buckshot. Marines to Somalia-trained Marines-and peace-keeping has to be redefined and rede- Restore Hope, which produced little violence If that sounds like overreaction to you, that expose them to the dangers out there" and not signed for a world no longer held in the mold against Somalis and few missteps by a 25,000- "is the way it must have sounded to the U.S. expect them to respond as they have been of bipolar superpower confrontation. person U.S. force. In Somalia, the Pentagon has court-martial that convicted Conde of aggra- trained to react in dangerous settings. "There Somalia may help provide some answers as resisted the dangers of mission creep-of get- vated assault, busted him one grade in rank is combat-like danger out there every day." well as questions. A U.N. command will short- ting pulled into local quarrels and taking on and fined him a month's pay on April 6. Conde's case, Richburg added, "encapsu- ly take over the difficult follow-on tasks of expanding, unfulfillable responsibilities. It is a Omar, who underwent surgery after the lates the tensions and dangers that U.S. keeping order and trying to rebuild civilian success that deserves recognition, and encour- blast, had reached into the U.S. military vehi- troops face as their mission here has shifted institutions for that African nation. But 5,000 agement. THURSDAY, APRIL 15, 1993 for The of fresh-baked, or perhaps half- That, at is the conclusion tentatively 01 social-acience hovers over Cisneros's idea George F. Will reached by Zbigniew Breerinski, President Cart- 1:00 combating spatial separations by means of er's national security adviser. The Polish-born an "newly designed, thoughtfully scaled" public hous- Brzezinski recalled the Soviet massacre of 4,500 ing projects. Cisneros knows the requisite 1990s Bad Enough Polish officers in 1940 and noted some chilling rhetoric-"I know we can't go back to the big similarities. Stalin had the Polish officers killed bureaucracy answers of the 1960s"-but when because many of them were members of the (explaining what should be done, he stresses gentry or aristocracy, strong anti-communists. In the '60s A29 better uses of Washington bureaucracies: "We Ominously, Quang breaks down the American think in terms of how we bring together the POWs into three ideological camps. He wrote Department of Education on schools, and the that 368 held "progressive views and can be Department of Health and Human Services on freed in the first instance." Another 372 held The "urban crisis" is, by now, a hardy perenni- child care and welfare. We change the rules." "neutralist" views about the war, but 465, all al In 1968 Glamour magazine carried an editorial Better rules from Washington. Back in the senior officers," were not in the least critical of titled "The Urban Crisis: What Can One Girl Do?" 1960s Moynihan, too, thought government By then the federal government was on the job, U.S. policy. "We understand these officers come should pull up its socks, square its shoulders and doing things. from rich families," he wrote. do better: Given such language, the comparison to the The bill creating the Department of Housing "Government has got into the business of prom- massacre in the forest of Katyn, Poland, is under- and Urban Development was signed into law by ising more than it knows how to deliver; as there is President Johnson on Sept. 9, 1965, 30 days after standable. But history offers more than anteced- little likelihood of cutting back on the promises, the the beginning of, and partly in response to, the ents; it offers some lessons as well. The first is that success of the society turns on its ability to rioting in the Watts section of Los Angeles. forgeries and bogus documents are not unknown. improve its performance. It is probably not a good Twenty-eight years and hundreds of billions of Some years back, historians of impeccable creden- thing to have got into this situation, but the social tials authenticated the so-called Hitler diaries, dollars later, welfare dependency, homelessness, dynamics of an industrial society everywhere seem which turned out to be a forgery. The "Protocols of substance abuse, family disintegration, the inter- to lead in this direction, and to do so with special the Elders of Zion," a notorious artisemitic concoc- generational transmission of poverty, teenage vehemence in the United States." tion, still circulates, and so, for that matter, do pregnancy, illegitimacy, sexually transmitted dis- But is improved government performance eases, public schools, violence and other crimes bogus photographs of American MIAs still suppos- really more likely than more judicious promising? are all worse. edly living in the jungle. Performance and promising are linked. Injudi- As Brzezinski himself points out, the document Last Sunday on television Henry Cisneros, the cious promises like Cisneros's drive government now in the hands of American officials is a Soviet secretary of HUD, was asked why it is into disappointing performances. version of the report to the Vietnamese Politburo. reasonable to expect Washington to do any good. As this is written the nation is celebrating the He said, among much else, this: It's possible that it is either false, not entirely 250th anniversary of the birth of Thomas Jefferson "I think one of the things America has to true-or, as at least one American expart claims, a and waiting to see if Los Angeles will burn yet correct accounting given the alleged tendency of address very, very squarely is whether or not we again. For perspective, remember that Jefferson the North Vietnamese to call U.S. agents "Ameri- live with continued vast spatial separations considered cities "pestilential" at a time when between the poorest of our populations, concen- cans," even if they were of other nationalities. America's largest city, Philadelphia, had approxi- trated in public housing in central cities, and the The probability is that we will never know- mately 55,000 residents, about as many as today vast differences that exist across our urban not soon, anyway. It's inconceivable that Viet- live in Rapid City, S.D. nam, now seeking economic ties with the United geography to the suburbs, which are essentially States and the West, is going to 'fess up to the white. What we've got to do is break up the murder of American POWs. It's more likely that concentrations by making it possible for people to in newly designed, thoughtfully scaled public Richard Cohen the report will be denounced as a fraud. That will 3, negotiated with outlying communities, put U.S. policy-makers in the gray zone where because many of the problems they have been all along. What should we do? of large concentrations of poor people symp- with are a few role models and no lift." POWs: The A29 After all, Poland did not break off ties with Moscow after Mikhail Gorbachev admitted Soviet One's heart sinks. The '60s were bad enough responsibility for the Katyn massacre, nor, for the first time around. that matter, have the Japanese war crimes of The government, having exacerbated prob- Awful Truth? World War II stopped us from having excellent relations with Japan. Nations move on-at least by concentrating the poor in public housing, some of them do. When they don't, you get a is going to redouble its efforts with more, better The purported report of Tran Van Quang to situation like the Balkans, a land of long memo- public housing, thereby conquering the spatial the politburo of the North Vietnam Communist ries and even longer wars. separations of the social classes. This is a 1960s impulse. Party in 1972 raises some profound questions. But the Clinton administration would be wise In the 1960s there began the explosive growth The first, of course, is whether it is the real to listen to the American people on this issue. in the number of subjects considered political and McCoys The second is whether its details are The widows and orphans of the Vietnam War are suited to government attention. Perhaps this had correct, and the third, maybe most important, is all our neighbors. For them, the spade-full of dirt something to do with Lyndon Johnson being the what the United States should do if the answers has never hit the casket. Their anguish, their to the first two questions are yes and North hurt, cannot easily be dismissed. The govern- president to have spent virtually his entire Vietnam killed as many as 600 American prie- ment owes them an accounting-and that, of adult life in Washington. oners of war. course, it has been trying to do. If the Quang By the end of the 1960s Pat Moynihan was The Quang report was discovered by historian report is true, then we cannot do business with worrying about the increasing introduction into Stephen 1 Morris of Harvard University while the murderers of American servicemen. War is politics and government of ideas originating in the social sciences, ideas which promised to bring doing some research in Moscow. It is a detailed, hell, but even hell has its rules. although perplexing, accounting of Americans then Vietnam hankers for economic ties with the about social change through manipulation of soci- ety's most basic processes. This was, he said, being held in North Vietnam. The prisoners are West. That's understandable. But there is little part of a transformation of politics: categorized-by rank and also by ideological ori- reciprocal yearning on this side of the Pacific "Not long ago it could be agreed that politics entation. The locations of their prisons are listed, Ocean-no urgent need to establish relations the business of who gets what, when, where, as well as the areas in which they were captured. with Hanoi. It is not, after all, Japan, and it is It is now more than that. It has become a The document has the air of authenticity. certainly no democracy. The Quang report needs But if God is in the details, then the ones to be disproved before we can proceed. If it is process that also deliberately seeks to effect such mentioned in the Quang report suggest agnosti- false, then it is time to put the war behind us. If it outcomes as who thinks what, who acts when, cism is warranted. For instance, Quang says that is true, then-in the name of too many American who lines where, who "three cosmonauts" (astronauts) were being held families-that time has not yet come. But even then there was a growing sense of prisoner. One of them, a "Jim Katlo," is named. But governmental overload. "How one wishes," wrote NASA says that no astronauts were ever POWs, Nathan Glazer, in the mid-1960s, "for the open and there is no record of a Jim Katlo. Similarly, of the New Deal, which was not littered with Quang's listing by rank-the numbers of colonels, the carcasses of half successful and hardly suc- for instance-does not correspond to Pentagon ceasful programs, each in the hands of a harden- data. For all of that, though, the report has to be ing bureaucracy." Nearty 30 years on, how one treated seriously if only for its implications: The wishes government would at least learn the reason so many Americans remain officially miss- formulated by Glazer's academic collabora- tor, Prof. Moynihan: "The role of social science ing is that they were killed by their captors. not in the formulation of social policy, but in the measurement of its results." THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 40 428 The Choice to Stay Away A NUMBER of angry and frightened Mount "Donahue" show. Both events, claims the mayor, Pleasant and Columbia Heights residents served a larger purpose: promoting D.C. state- didn't take kindly to Mayor Kelly's deci- hood and President Clinton's economic package. sion to leave town last weekend for New York- But statehood didn't get much play on "Dona- at least not while they remained at home gripped hue," and as of Tuesday the mayor apparently by fear of a serial shooter. The mayor, who may was following a light public schedule. How she return home today instead of Friday, rejects helped the president's stalled stimulus package in criticism of her absence. She told a Post reporter New York City, including last night's appearance who caught up with her and her three-member on "Crossfire" debating Pat Buchanan, has yet to advance team and press secretary that she was be explained. staying on top of the situation from the Big One resident, who lives two blocks from the Apple. "I just have to call it as I see it," she said. "There's always a thousand things I should be scene of the ninth and latest shooting, spoke for doing." himself and most of the city when he said of the That's fair enough. But bewildered residents brazen attacks, "I've never seen anything like are within their rights to ask whether the New this before." That point was brought home in York commitment was more important than be- yesterday's Post account of how the shotgun ing here. The fears in that part of Northwest attacks have seeped into the lives of parents and Washington aren't fanciful. In the space of a few their children, robbing them of their sense of weeks, nine apparently innocent pedestrians security. have been attacked by an unidentified shotgun- The Mount Pleasant and Columbia Heights wielding assailant. Two have been killed, four communities don't expect the mayor to catch the wounded and three badly frightened by shots that maniac who's doing these shootings. They know missed. Even in a city that has suffered through that's the business of the police. But they would more than 2,200 murders in the past five years, be reassured by their mayor's presence at their these random drive-by shootings bring a special community meetings. And they want her around brand of terror. during high-profile police operations making cer- That reality must be measured against the tain that everything is being done to protect her alternative of attending a New York conference city. The residents of those neighborhoods can't of African American mayors and the taping of a take a vacation from this terror. A28 Needles and AIDS B ALTIMORE Mayor Kurt Schmoke wants program was implemented there. There was no to begin a 30-month needle exchange pro- evidence of increased drug use after the program gram to curb the spread of AIDS. He needs was initiated, and drug treatment enrollments state approval to do so if participants are to be increased. Moreover, fewer needles were found protected from prosecution under Maryland's on the streets and playgrounds of the city after drug paraphernalia law, but the legislature ad- they became valuable as an exchange for clean journed this week without giving it to him. ones. A 60-day experimental program was begun Because he believes this step is critical to con- in the District last summer, and an evaluation is taining the epidemic in his city, the mayor is expected from Johns Hopkins University experts consulting legal experts about other options. soon. The program in this city was available only Support for a needle exchange program has to drug users who had signed up for rehabilitation grown as the demographics of the epidemic have programs, which limited its scope. But results changed. Once thought to be an affliction primari- closer to those seen in New Haven have been ly of homosexual men, AIDS is spreading at a frightening rate among intravenous drug users achieved in pilot programs in this country and who share contaminated needles and their sexual abroad that were broader in scope. They are not partners; eventually it reaches their children. to be confused with some European experiments Nationally, one-third of all AIDS cases now stem that legalized drug use in connection with needle from drugs used by injection. In Baltimore that exchange and were not successful. k figure is 42 percent. The prospect of officials This approach to AIDS creates an impression giving needles to drug addicts struck some Mary- that government is abetting illegal and harmful land legislators as immoral, impractical and even behavior. But under controlled conditions in "frightening." But the idea is not new, and in the which treatment is encouraged, the net result handful of cities and foreign countries where it can be a reduction in drug use. The primary has been tried, results have been encouraging. objective, in any event, is to combat AIDS. In the New Haven, Conn., for example, reported that face of increasingly compelling statistics on infec- - new HIV infections among intravenous drug tion among intravenous drug users, needle ex- users dropped by a third after a needle exchange change is worth trying. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 41 George Bush's Revenge A COUPLE OF recent polls have shown As of last week, according to IRS figures, the President Clinton's popularity dipping. number of refunds had dropped by 6.8 percent from This being April 15, an answer may be the comparable point last year. The IRS worries that near at hand. many taxpayers who find they unexpectedly owe In an effort to boost a sluggish election-year money they don't have may not file at all. economy last year, George Bush decided to The IRS has waived a 5-percent-a-month "fail- change the Internal Revenue Service's withhold- ure-to-file" penalty this year to encourage taxpay- ing tables so taxpayers would have a tiny bit less ers to file for an extension even if they can't pay withheld from paychecks for federal income the government what they owe by tonight's dead- taxes. The changes let taxpayers keep about a line. (The extension form, 4868, is blessedly easy dollar a day-or about $345 a year-more than to fill out.) But even this IRS gesture, at once kind they would have kept under the old tables. and practical, will go only so far in soothing Multiplied over millions of taxpayers, this taxpayers who come up short today. change, Mr. Bush hoped, would pump as much as If you wanted to fuel a tax revolt, you could $25 billion of extra purchasing power into the hardly invent a better way than to cut tax refunds economy. for many and force others to write a check to the The good news was that the recession finally IRS for the first time in their lives. ended. The bad news for Mr. Bush is that the All this may be the result of Mr. Bush's recession didn't end fast enough to win him decision, but it's Mr. Clinton who is president reelection. now. It's also Mr. Clinton who is asking Congress And now comes the bad news for Mr. Clinton to approve some tax increases and who is in the and for a lot of taxpayers. Having paid less to the middle of a fight with Senate Republicans over government last year, many taxpayers who ex- his spending plans. No wonder his popularity has pected large refunds are getting smaller ones. dropped. Mr. Bush's political timing may have And some who expected a refund are having to been off for 1992, but it should look pretty good write a check to the IRS because they were now to Sen. Bob Dole and his colleagues. They under-withheld. owe Mr. Bush a thank-you note. A18 Europe's Choice W ESTERN EUROPE is beginning to real- responsibility to open its rich market to new ize, reluctantly, that its most important democracies. That's why Greece, Spain and Por- decision in this decade is likely to be its tugal got membership as they emerged from response to its Eastern neighbors. The pressure right-wing autocracies. And that's the claim that from them is having the same effect on Germany, Poland, Hungary, the Czech Republic, Slovakia France and the rest that the prospect of the free and the others are now urging. But much of trade agreement with Mexico is having here in Western Europe is deep in recession, and unem- the United States. It is amplifying all the rich ployment rates there are higher than in the countries' doubts and anxieties about their com- United States. The commodities that the Eastern petitiveness and their ability to maintain their countries want to export westward-especially high standards of living in a world in which steel, textiles and farm products-touch deep poorer people just over the border can make political sensitivities. many of the same goods much more cheaply. You The meeting in Copenhagen this week on can already hear uneasy references to the Czech East-West cooperation ended with a pledge from Republic as the Korea of Europe. the EC to give better access to imports from the When the Soviet empire collapsed, the people struggling Eastern countries. That's the right governing Western Europe saw it as their oppor- sentiment-although, as the Eastern Europeans tunity to draw the 12 countries of the European quickly pointed out, it was a general pledge Community into a much tighter union. To that containing little that was concrete or specific. purpose they drew up the Maastricht Treaty, If the great economic experiments in East- which since then has been going through an Central Europe should collapse, one result would unexpectedly prolonged and uncertain process of surely be a tremendous wave of desperate people ratification. As it gets closer to completion, the moving westward. In a time of half-open borders, enthusiasm for the treaty seems to be diminish- it would be hard to stop them. That possibility is ing. Rather than a common foreign policy or a much in the minds of the people running the common currency, the far more urgent necessity EC-a reminder that if economic and political is arguably a serious effort to stabilize the coun- reform fails in the new democracies, the conse- tries to the east. quences will not be limited to the lands east of For many years the EC recognized a moral what used to be the Iron Curtain. THURSDAY, APRIL 15, 1993 THE WASHINGTON POST 42 The Reliable Source 3 By Lois Romano Clinton Gore Hey, Bill, About That Medal for Martha WE'VE HEARD THAT. Games Americans Play Avenue 19, The Clinton folks are close to The great American eagle may have a f Mark Harris, the controversial One source said Stone planned to speak announcing former New York police new perch soon. The U.S. Information 43-year-old husband of Martha Raye, to First Mom Virginia Kelley about the commissioner Lee Brown as the new wants to see his wife get the Agency is developing-of all things-a E matter in Arkansas this week. Mark drug policy director. While Brown has "Presidential Medal of Freedom, he might TV game show that it hopes will give a 1000 In the meantime, Harris has a message resisted the appointment for some want to reconsider his lobbying techniques. new, lively twist to the agency's longtime for, oh, just about anybody who'll listen: time, he's said to be on the verge of Displaying a copy of a '92 letter from goal of flacking America. Scandidate Bill Clinton favoring the idea of "America needs a hero, and we have one accepting. And while the budget of "What is more uniquely American than Raye getting a medal, Harris rages in a here." the office has been cut dramatically, full-page ad in Daily Variety: 'A liar is The White House had no comment last the one carrot is that it is a Cabinet the game show," said Michael Schoenfeld, director of program 1 worse than a thief,' as we all grew up to night. post. "believe." Despite rumors to the contrary, development for USIA. . lady Harris explained from Los Angeles U.S. Ambassador to France-designate "What's the Connection"-complete . yesterday that he was "not trying to bash "The an the lady gave it her all in deeds, Pamela Harriman is not selling her with the usual bells and whistles and the president," but "trying to keep him to empty President words. does it with famous Georgetown house-longtime John Ritter, left, studying role models; even a huge American his written word." He's in such a hurry, he political salon to many a Paul McCartney, staying out of it. flag-would focus on UNITED added, because the 76-year-old Raye's candidate-nor her Middleburg American language health is declining. residence. However, she recently did Tuesday, has also been appointed to and themes. It'll be sell her Barbados home. the board of the National Trust for sent by Worldnet STATES Pris Harris did mention that, as luck would have it, he ran into Butch Stone, Roger Gore di - Hollywood visited the Potomac Historic Preservation. satellite along with Clinton's manager, out in L.A. Tuesday and once again yesterday as stars Paul McCartney, who kicked off a more staid fare like Stone offered to see what he could do. Christopher Reeve, John Ritter and 19-stop tour in Las Vegas yesterday, "The MacNeil/Lehrer AGENCY Billy Crystal got an audience with Bill said he's aware of the tension in Los NewsHour" and C-SPAN. Clinton and AI Gore at the White Angeles as the verdict on the Rodney To devise the game, Schoenfeld hired House. Here for the Washington King case is anticipated-but doesn't Steve Friedman, a veteran Hollywood premiere of HBO's "Earth and the plan to cancel his Anaheim stadium game-show hand ("The Newlywed American Dream," Ritter said in a show on Saturday. Game," "The Dating Game"), who phone interview that he was thrilled "I'm keeping out of to meet his "hero," the prez. Now, as it," McCartney told recently staged a live run-through. The cost so far: a mere $25,000. for picking up some useful tips for his the Associated role as a Senate aide on the popular Press. "It's an Run-through tapes are being shown at show "Hearts Afire," he noted: "I saw American affair. I'm USIA and to educational consultants. a lot of facilitators today at the White just a British guy The idea, approved under Bush director House-guys who try to be invisible showing up." Michael Pack, now awaits approval by and Mrs. Martha Raye and, "A LIAR IS while getting stuff done. And I felt Clinton appointee Joe Duffy and funding -right, the angry ad. WORSE THAN A THIEF like we were on the right track David McCullough: to "go to series." grew David McCullough, On board. Noble aims aside, Schoenfeld readily who won the Pulitzer admits that whenever it comes to Prize for biography THURSDAY, APRIL 15. 1993 government projects, there is certainly Making an Offer Sinatra Would Refuse "the potential for ridicule." Life imitated art imitating life in a New In case Martino's career has passed you York courtroom this week when a tape of a by. his claim to fame is a small role in "The DOONESBURY couple of reputed mobsters discussing Ol' Godfather" as singer Johnny Fontaine-a By G.B. Trudeau Blue Eyes was played. The conversation slippery character believed to be modeled between defendants Lorenzo Mannino and after Sinatra. The movie depicts Fontaine SIR/WHERE DID THEY NO, BUT ONLY BE- GOOD. SEE YES. SIR. BUT Gluseppe "Joe" Gambino-accused of as owing his career to mob muscle. Sinatra HAVE YOU REACH CAUSE AN EARTH YOU DOWN ARE THE CELEBS YOU I HADTO, racketeering and murder-starts with was known to be rather displeased with the BEEN? THE CABIN MOVER BROKE AT THE THE HAVE LEFT. ALL WHAT? SIR. SHE Mannino's asking whether Gambino would depiction-and the suggestion that it was YET? DOWN LAST NIGHT. SITE. MEDIA EXCEPT CHER. WANTS TO "talk to Frank Sinatra [about] getting a few he. STILL I LET HER IN PLAYME. jobs for AI Martino in Las Vegas.' THERE? And in the latest real-life version, Sinatra ON THE PLAN. IS made out to feel the same about Martino as he did about Fontane. Mannino indicates on the tape that such a request for career help would be futile. "Sinatra can't stand AI Martino, Joe," he says on the '88 recording "Yeah, I know." Gambino responds. As far as Sinatra's true feelings about poor ol' Al. well, we don't know. A call to his publicist went unreturned. GBirudean Business and Finance World-Wide HOUSE reopened the MILLIONS OF BLACKS WENT on strike broad-based consump- in South Africa to mourn a slain leader. tion levy, such as a value-added tax. to Unrest swept much of the country and at help finance a health-care overhaul. least six people were shot dead as rallies Such a tax was ruled out in February. took place to protest last weekend's slaying but a Clinton aide conceded that the of politician Chris Hani. Hundreds were wounded as blacks battled police, and Health Care Task Force could propose looters rampaged through several cities, the tax to the president. Some in the including Cape Town. The worst violence corporate world would welcome such a was in the black township of Soweto, where tax. but consumers may oppose it. police fired on marchers and the African (Article on Page A2) National Congress said that one of its offi- cials had been killed. Inventories jumped 0.4% in Febru- Black and white leaders struggled to ary. the largest rise in seven months, prevent anger over Hani's killing from fueled mostly by a drop in car sales derailing talks on ending apartheid and and weak retail sales overall. Analysts giving the black majority the vote. said it was too early to draw conclu- THE U.S. DEMANDED that Bosnia's sions from the buildup, which usually Serbs immediately halt atrocities. augurs slower economic growth. Clinton's envoy to Belgrade warned Yu- (Article on Page A2) gostav leaders that they face complete isola- tion if Serbs persist in their attacks and AT&T plans to seek permission to refuse to accept a peace plan for Bosnia. sell international communications 'The military and human horror has to stop services to businesses with British of- now." Reginald Bartholomew said. "Bos- fices, people close to the situation said. nian Serbs have to do it now.' He said that if the Serbs resist, the U.S. and its allies will The move follows a similar effort by seek an end to the arms embargo on Bosnia's British Telecom to expand in the U.S. largely Muslim government. (Article on Page A3) Despite increasing international out- rage, artillery attacks continued on Microsoft's profit jumped 36% in Srebrenica, where ferocious shelling its third quarter, reflecting continued Monday killed at least 56 people. demand for its Windows software. Revenue surged 41%. The results Clinton pressed the Group of Seven na- slightly exceeded analysts' forecasts. tions to boost their contributions to Russia (Article on Page B4) as the G-7 prepared to unveil an aid package in Tokyo. Clinton. who wants to provide an Wal-Mart's stock slid $1.75, or 6%, additional $1.8 billion in U.S. aid to Moscow, was having a tough time convincing other to $27.25 after the retailer said it won't nations as well as U.S. lawmakers to achieve its historical double-digit support an increase. (Article on Page A3) growth in same-store sales this year. Yeltsin declared that he will resign as Other retailers' stocks also skidded. Russia's president only if most people vote (Article on Page A3) against him while simultaneously voting against early parliamentary elections. Oth- Digital Equipment's loss narrowed erwise - even if he loses the confidence to $30.1 million in the latest quarter, vote - Yeltsin said he would remain in office reflecting operating cost cuts. The at least until new elections take place. computer maker's results fueled ex- (Article on Page A10) THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 pectations of a profit for this quarter. Israeli and Palestinian officials gave (Article on Page A4) their tentative backing to a U.S. proposal for continuous Mideast peace negotiations. Upjohn's chairman and chief was Washington officials have suggested that hospitalized in critical but stable con- the talks be continuous, not round by round. dition, and another executive assumed once they resume on Tuesday. diplomats his responsibilities as CEO. said. The Arabs still haven't formally ac- (Article on Page A4) cepted an invitation to next week's session. Israel's Rabin and Egypt's Mubarak First Union's profit more than dou- and agreed that prospects are good for the bled in the first quarter. while Bank of Washington peace talks. Rabin broadly hinted that the Mideast discussions could New York's earnings jumped 56% and lead to major territorial concessions. He also Wachovia's net rose by nearly 15%. said Israel might reopen the occupied terri- The bank companies were boosted in tories if Palestinian violence ends. part by higher interest income and smaller loan-loss provisions. Deliberations ended early yesterday in (Article on Page A4) the Rodney King beating trial in Los Angeles because a juror became ill and was taken to Exxon launched a campaign in the a doctor. The nature of the illness wasn't scientific community to try to dispel disclosed. but U.S. District Judge John Da- the belief that Alaska's Prince William vies said the jury intended to resume delib- erations this morning. Sound suffered long-term damage from the 1989 Valdez oil spill. The com- A U.S. agency urged doctors to be more pany claims that its own research re- aggressive in diagnosing and treating ma- buts some government conclusions. jor depression and recommended the use of (Article on Page B1) antidepressant medicines in many cases. The government issued a detailed set of NetWorth's stock sank 43% after treatment guidelines to be used by physi- the computer company said it will post clans. (Article on Page B1) a loss for the latest quarter, illustrat- ing how highly touted initial public of- A survey of sexual behavior found that nearly one-fourth of American men under 40 ferings can quickly produce losses. have had 20 or more sexual partners. and (Article on Page C1) that only 2% engage in homosexual behav- ior. The study, conducted by a research Hong Kong stocks soared 5.8% team at the Battelle Human Affairs Re- Wednesday, a day after Britain and search Centers in Seattle, indicated more China said they would resume talks on than a quarter of the men use condoms. the colony's constitutional future. (Article on Page C12) Some senior Iraqi officials were killed in a purge ordered by President Saddam Hus- Precious metals futures prices sein. according to travelers recently in soared on news of widespread racial Baghdad. Unconfirmed reports spoke of the execution of a former interior minister. but unrest in South Africa, with platinum the travelers said they knew only that some jumping nearly $7 and gold climbing military officers and ruling Baath party $2 an ounce in heavy trading. officials had been arrested and killed. (Article on Page C14) A U.N. envoy sought to resolve Haiti's Markets- political crisis by holding talks in Port-au- Stocks: Volume 256,054,580 shares. Dow Prince with Haitian military rulers and Jones industrials 3455.64. up 11.61; transpor- supporters of ousted President Aristide. The tation 1660.93. up 0.41; utilities 245.99, up envoy, Dante Caputo, wasn't expected to 0.18. meet with Prime Minister Bazin. who has Bonds: Lehman Brothers Treasury index repudiated international mediation efforts. 5125.42. up 17.38. Commodities: Oil $20.40 a barrel, off six Died: Wallace Stegner, 84, a Pulitzer cents. Dow Jones futures index 125.02. off Prize-winning writer who celebrated the 0.20; spot index 122.01, up 0.35. American West in his novels and nonfiction, Dollar: 113.88 yen. up 0.48; 1.5935 marks, T 1y. in Santa Fe, N.M., of injuries up 0.0115. suffered in a recent auto accident. VAT Possibility VAT Is Reconsidered By the White House Is Reconsidered To Fund Health Care At White House Continued From Page A2 be ultimately passed on to the consumer. Despite the public statements that a National Sales Tax, Ruled VAT wasn't under consideration, Ira Ma- gaziner, the health-care coordinator in the Out in February, Draws White House, has mentioned it and other Another Look in April financing options in chats with legislators and staffers on Capitol Hill. But some administration officials privately have By MICHAEL K. FRISBY continued to insist that the president won't use a VAT. Staff Reporter of THE WALL STREET JOURNAL WASHINGTON The White House re- Among those pushing a VAT are some opened the door to a broad-based consump- labor unions, including the powerful tion levy, such as a value-added tax, to help American Federation of State County and finance President Clinton's health-care Municipal Employees, whose president, overhaul proposal. Gerald McEntee, is a friend and early The president ruled out such a tax in supporter of Mr. Clinton's. They argue that February, but his communication director, deploying a VAT would be far preferable to George Stephanopoulos, conceded yester- exposing workers' health benefits to taxes. day that the Health Care Task Force, Unions have worked to preserve job bene- headed by Hillary Rodham Clinton, could fits, sometimes at the expense of seeking propose the tax to the president. bigger raises. "If an argument is made, [the presi- Lining up in opposition to a VAT. Tracy dent| will clearly listen to it," said Mr. Mullin, president of the National Retail Stephanopoulos, who had in the past, along Federation, said the decline in retailers' with other Clinton administration officials, stock prices yesterday was linked to the ruled out such a tax, which is praised by administration's renewed interest in such some in the corporate world but opposed by a tax. "Advocates characterize a VAT as a many consumers. magic bullet, but in reality it's likely to backfire on the economy and the con- However, some administration officials sumer," Ms. Mullin said. remain wary of a VAT. Although it could A new twist in the administration's raise considerable funds, they say the health-care proposal will be controversial considerations, according to officials, is itself and a VAT would add to the appre- that the task force may propose as national hension. Treasury Secretary Lloyd Bent- sales tax along with other options. One possible wrinkle, which may enable the sen, whose opinion wields considerable weight with the president, has raised president to reverse himself and accept it. doubts about whether a VAT could be is that the taxes he rejected earlier were aimed at paying a large portion of the cost proposed now, particularly because of its of health-care overhaul, which could re- complexity and the fact that Mr. Clinton quire as much as $90 billion of new federal already has proposed tax increases in his spending annually. The new version is economic package. Mr. Bentsen noted in a envisioned as a smaller tax that would be recent speech that leaders in Canada and combined with other measures. Japan suffered severe political damage Still, administration officials said it is from the backlash against VATs in their difficult to seriously consider such a tax countries. Mr. Stephanopoulos was pressed to until the health-care package has been address the issue publicly- and quell some completed, identifying which services need to be paid for. of the confusion-after two administration officials said a VAT was back on the table. Alice Rivlin, deputy director of the White House Office of Management and Budget, yesterday told the National Asso- ciation of Manufacturers that a VAT or some other variation of a national sales tax is "clearly a possible candidate" for fi- nancing the health-care package. She even seemed to campaign for it by saying, "the value-added tax makes sense for a country that wants to encourage invest- THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 ment." Moreover. Health and Human Services Secretary Donna Shalala told USA Today that a VAT could be used for health care. But her press secretary, Avis LaVelle, cautioned that it is Mr. Clinton who "will make decisions on what is the most viable option for financing." She said that when task force "members speak of things being considered. they are talking about options that will be presented to the president.' It was still unclear, however. whether the president has actually changed his view and would use a VAT for health care or whether only the rhetoric has changed. A month ago, Mr. Stephanopoulos said: "It will not be in that proposal." But that changed yesterday to "it's something that is being looked at at some level in the task force." The tax would be levied on the value added to a product at each stage of produc- tion, with a credit provided for the tax that was imposed at the prior stage, and would 45 Resentful of Negative Coverage, Clinton Spurns words. His first encounter with Phil Dona- hue was especially instructive, aides say. After a series of rough questions from the The Media, but He May Need to Woo Them Back host, Mr. Clinton reared back and attacked the press for diverting the campaign from the issues that mattered. The audience applauded vigorously. By JEFFREY H. BIRNBAUM he will when he gets below 50% in job fied top administration official as saying 'Larry King Liberated Me' Staff Reporter of THE WALL STREET JOURNAL approval" - a level he's hovering around that Mr. Clinton could "roll over" Senate WASHINGTON Barely a week Into his now. "He'll be having them up to the There isn't anything unusual about a Finance Committee Chairman Daniel administration. President Clinton gath- residence for cocktails or having them president trying to "go over the heads" of Moynihan (D., N.Y.). "This puts me in the ered the entire White House staff into the out for dinner." the Washington press. Franklin Roosevelt position of having to apologize for some- elegant East Room for a pep talk and a had his fireside chats. Richard Nixon Others play this idea down. The Wash- thing I don't even believe," Mr. Clinton warning: Don't leak to the press. ington press is ready to pounce on any started the Saturday morning radio ad- sald during the Oval Office meeting, "and Amid exhortations to excel in other dresses. And Jimmy Carter went on call-in now I have to apologize to a friend." ways, Mr. Clinton admonished his aides shows. But Mr. Clinton is the first presi- Press Availability Another time Mr. Clinton was SO in- against unauthorized dealings with the dent to boast about his intentions. At a Formal news conferences held in first 12 media. "We don't want to get caught up in censed about an article he had just read in black-tie dinner for radio and television weeks in office the Washington Times that he threw down the same old Washington games that correspondents last month, Mr. Clinton paralyzed past administrations," he em- Nixon his copy of it in front of staffers who were confessed, You know why I can stiff you (1st term) 5 gathered one Saturday morning to watch phasized, referring to damage that has on the press conferences? Because Larry his weekly radio address. "This is a waste been caused by unwanted disclosures in Nixon King liberated me by giving me to the (2nd term) 3 of paper, he exclaimed. the past. American people directly." The incident isn't isolated. Clinton com- Such antipathy is partly a remnant of To be sure, queries from voters are Ford 4 Mr. Clinton's harsh treatment by the press munications staffers bear many wounds softer, more respectful in tone and more during the early part of last year's presi- from Mr. Clinton's tirades over printed or personal than those from Washington re- broadcast stories that conflicted with his Carter 5 dential campaign. The Clintons felt brutal- porters. But according to Mr. Sabato, ized by the Gennifer Flowers tabloid reve- preferred message. He is known to become "Most of the questions reflect what they Reagon lations and were bitter about much of the especially irate when aides discuss in (1st term) 2 see in the headlines or what they saw last subsequent news coverage of Mr. Clinton's public what he considers to be his private night on the evening news." Readan avoidance of the draft during the Vietnam thoughts or actions. Still, Mr. Clinton continues to get politi- (2nd term) 2 War. They also haven't forgotten that In short, Bill Clinton distrusts, and in cal mileage out of bashing the press. Even early in the campaign much of the estab- at last month's annual Gridiron Dinner many ways dislikes, the Washington Bush lishment press declared Mr. Clinton's can- press. Probably not since Richard Nixon thrown by Washington's top journalists, didacy all but dead. has a president come into office with so the president's jokes had barbs. "I'm glad Citaton During that same period, Mr. Clinton, much antagonism toward the media that to be here speaking for the first time at the who for years had cultivated the national provide the American people with the bulk Grid-lock dinner, he told the crowd. "I *President Reagan was shot on March 30, 1981 press and gotten favorable coverage, be- of what they know about him. want to apologize to Senator Dole and Source: Public Papers of the President, Congressional Ouarterly gan to seek alternative forums to convey President Bush. I always thought they 'Deeply Resentful' his message and to promote himself. In the were responsible for gridlock, but now I "He's personally contemptuous of the mistake, these people contend, regardless New Hampshire primary campaign, he know it's the press that did it." press and deeply resentful of his treatment of the president's attitude. "I don't recall turned to town hall meetings and was able White House aides make little effort to at their hands," concludes Larry Sabato, a to use them to focus on the substance of his any example, other than John F. Kennedy, counter the impression that the president political science professor at the Univer- of the press cutting any president any proposals rather than the scandal of the thinks ill of the Washington press. They sity of Virginia and a student of presidents' slack," Mr. Sabato says. Adds Jody Pow- day. assert Mr. Clinton has been quite open and press relations. ell, who was President Carter's press Soon thereafter Mr. Clinton began to has taken more questions from Washing- One indication is that in his first 12 secretary: "Most of what people are read- appear on talk shows, both on television ton reporters than any of the last three weeks in office, Mr. Clinton has held only ing as animosity is really the way they are and radio, and was able to deliver his presidents. But most of these questions one formal news conference in which he trying to go about selling major programs themes at greater length and in his own were at photo sessions, where access is alone took questions from the Washington that are tremendously complex. press corps; that's the fewest of any presi- But those inside the White House find dent, going all the way back to Mr. Nixon plenty of evidence of enmity from Mr. and including President Reagan, who was tightly controlled by the White House. unusual for a new president. "Almost Clinton toward the Washington press. Af- shot in the midst of this period in 1981. And When asked directly if Mr. Clinton likes every president comes into office claiming ter he read an article in the Washington even in his single encounter, Mr. Clinton the Washington press, Mr. Stephano- they are going to have the most open Post about sailors bad-mouthing him dur- was angered that the question dominating poulos, the White House communications administration in history and over time Ing his recent visit to the USS Theodore director, answers obliquely, "I think he they close up." says Stephen Hess, a press the news was about homosexuals in the Roosevelt, Mr. Clinton gave his communi- likes reporters.' expert at the Brookings Institution. "The military. a subject he would rather hear cations director, George Stephanopoulos, a less about. Whether he likes the Washington press difference is, this president didn't even tongue-lashing. "This isn't true," Mr. or not, Mr. Clinton's view of the press is make the gesture." Some longtime observers contend that Clinton was overheard bellowing. He even antagonistic relations with the press corps, went on to blame Mr. Stephanopoulos for even when understandable, frequently allowing the story to appear. (Mr. Stephan- come back to haunt a president during opoulos declines to comment.) tough times. Mr. Clinton earlier had a similar shout- "I don't think he does need them- ing episode with several members of his now," says Michael Deaver, President senior staff. The outburst followed a Time Reagan's communications director, "but magazine column that quoted an unidenti- THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 Clinton Experiences Difficulty in Finding Clinton Faces Tough Task in Winning More Aid to Russia Larger Contributions for Russian Aid Continued From Page A3 though I feel there are urgent needs and By CARLA ANNE ROBBINS president "hopes that they'll participate opportunities in Russia," said Sen. Patrick And JACOB M. SCHLESINGER with him and the other G-7 countries,' Mr. Leahy (D., Vt.), who heads the foreign aid Staff Reporters of THE WALL STREET JOURNAL Bentsen said. appropriations subcommittee. TOKYO President Clinton, who wants The U.S. strategy, say U.S. officials, Separately. the U.S. Export-Import to provide an additional $1.8 billion in U.S. has been "to lead by example" while Bank is expected to announce today that it aid to Russia and other former Soviet they try to "leverage" more aid. The U.S. has signed a framework agreement with republics, is having a tough time convinc- pledge of $500 million for a new privatiza- Russia, opening the door to $2 billion or ing others to follow his lead. tion fund, for example, is contingent on more in loans and loan guarantees for the Even as the foreign and finance minis- the other members anteing enough to meet purchase of oil and gas equipment and ters from the Group of Seven industrial a $2 billion target. It also is intended to services from U.S. firms. nations were getting ready to sit down encourage another $2 billion contribution Wednesday for the start of a two-day for the fund from the World Bank and emergency meeting here on Russia, Mr. European development bank. Clinton was dialing up some of their bosses Even with such incentives, the sell to lobby for larger contributions. The pres- hasn't been easy. ident and his aides were going through the When Secretary of State Warren Chris- same drill with the U.S. Congress. seeking topher made his pitch at the first closed- to win support for more spending on Rus- door session - warning of dire conse- sia. quences if Mr. Yeltsin fails in his reform The details of the G-7 package were to effort - the response was less than over- be announced in Tokyo Thursday. The whelming. Six separate foreign ministers, overall package of multilateral loans, bilat- and then six finance ministers, rose to recite all the contributions their countries Narrow Definition of Defeat already had made to support Russian Russian President Yeltsin, speaking at a reform and to explain why, given the tough news conference ahead of the April 25 economic times at home, it would be hard referendum. said he will resign only if to do more. Germany's foreign minister, most people vote against him and simul- Klaus Kinkel, later said his country had taneously give resounding support to the "reached the bottom line. We don't have Congress. See article on Page A10. much room for maneuvering left." There are other concerns as well. The eral grants and credits and debt forgive- ness is likely to top $30 billion including at German and British foreign ministers ex- least $15 billion that the International pressed hope that Russia would cleave Monetary Fund, World Bank and European more closely to Western foreign policy in Bank for Reconstruction and Development Bosnia and the Baltics. The Japanese want plan to lend Russia on somewhat easier to get back four tiny, disputed islands. And terms than in the past. the Italians plan to remind the Russian The $1.8 billion U.S. contribution, about ministers Thursday, when they join the session, of some $40 million in bad loans. $1.5 billion of which would go to Russia, would be in addition to the $1.6 billion U.S. officials, nevertheless, are hopeful that beyond the new bilateral packages package Mr. Clinton unveiled 11 days ago in Vancouver. British Columbia, after his that were to be announced Thursday. more aid will be coming before the planned July summit with Russian President Boris Yelt- sin. summit meeting of G-7 heads of state. Of that $1.8 billion - most, if not all, of Britain announced Wednesday that it would extend an additional $600 million in which requires congressional approval- $500 million would be earmarked for a new export credits, investment insurance and technical assistance to Russia. fund to help privatize large industries. Other funds would help repair leaky Rus- Lobbying for Russian aid is likely to sian oil wells and gas pipelines. resettle continue long past this week's meeting. Russian military personnel. improve nu- U.S. officials already are girding for clear safety, encourage small businesses. a battle over the privatization fund. It is expand student-exchange and technical- intended to encourage the sale or shut- exchange programs, and dismantle nu- down of large, unprofitable state enter- clear weapons. Mr. Clinton's fiscal 1994 prises. But a good part of the money will budget includes $1.1 billion in new aid to have to go to cushioning the social the former Soviet republics - some $700 blow-especially in one-industry towns- million less than the new pledge. U.S. by helping to retrain workers and weaning officials wouldn't say where the new local hospitals and schools from industry handouts. money would come from. Officials stressed as late as Wednesday Critics could brand the fund a welfare night that the numbers for the overall G-7 program - a taboo not only on Capitol Hill package were changing hourly, as the but in G-7 countries. which have their own lobbying process continued in closed-door domestic problems. But without such a sessions. The G-7 includes the U.S., Japan, fund, U.S. officials say, any proposal Germany, Britain, France, Canada and to shut down Russian factories could set off Italy. a revolution against reform and Mr. Yelt- Even the latest numbers may not be sin. final. Treasury Secretary Lloyd Bentsen In the U.S., at least some congressional told reporters that he expected Mr. Clinton Democrats aren't yet convinced by Mr. to discuss the need for additional Japanese Clinton. "Before I will be willing to support contributions - beyond the $1.8 billion To- this supplemental request for Russia, I am kyo pledged this week - when he meets going to need a lot more explanation of with Japanese Prime Minister Kiichr where the money is coming from, even Miyazawa in Washington tomorrow. The Please Turn to Page A16, Column 1 WATT 47 Federal Reserve's Purchase of Coupons to Boost Bank Reserves Lifts Treasurys in Quiet Trading By THOMAS D. LAURICELLA And TERENCE DONNELLY Treasury Yield Curve Special to THE WALL STREET JOURNAL Yields as of 4:30 p.m. Eastern time NEW YORK - An open-market pur- 8.00% chase of notes and bonds by the Federal 7.50% Yesterday Reserve provided a modest lift to an other- 7.00% week ago wise quiet U.S. Treasury market. 6.50% 4 weeks ago The benchmark 30-year Treasury bond 6.00% rose more than 3/8 point, or more than $3.75 for a bond with $1,000 face value, to 5.50% 104 24/32, yielding 6.75%, down from 6.78% 5.00% on Tuesday. The 10-year note rose more 4.50% than 4 point to 102 23/32 to yield 5.87%, 4.00% down from 5.91%. 3.50% The Fed arranged the purchase, which 3.00% is known as a pass, as a means of address- 2.50% ing a seasonal need to inject reserves into 3 6 1 2 3 5 7 10 30 mos. yr maturities the banking system. Source: Technical Data's Bond Date Typically at this time of year. corporate and individual tax payments sent to the Treasury create a drain on banks' reserves YIELD COMPARISONS that the Fed must counter. While the move had no monetary policy Based on Merrill Lynch Bond Indexes. priced as of significance. it did have the same impact midaffernoon Eastern time. 52 Week on prices as a buyer entering the market 4/14 4/13 High Low Corp.-Govt. Master 5.63% 5.66% 7.15% 5.62% and ridding dealers of a significant Treasury 1-10yr 4.52 4.54 6.21 4.49 amount of unwanted coupon securities. 10+ yr 6.78 6.80 8.13 6.74 Agencies 1-10yr 5.29 5.30 6.78 5.29 "It was probably on the larger side, 10+ Yr 7.16 7.19 8.35 7.11 probably about $4 billion." said Marilyn Corporate 1-10 yr High QIty 5.87 5.91 7.63 5.87 Schaja, money-market economist at Don- Med QIty 6.36 6.41 8.10 6.36 10 High Qity 7.54 7.57 8.67 7.54 aldson, Lufkin & Jenrette Securities. Med QIty 7.95 7.97 9.09 7.95 The move had been anticipated for Yankee bends( 6.98 7.02 8.45 6.90 Current-coupen mortgages (2) some time, and the only real question was GNMA 6.50% 6.88 6.92 8.31 6.65 whether the Fed would be buying bills or FNMA 6.50% 6.88 6.92 8.41 6.76 FHLMC8.00% 6.54 6.55 8.32 6.34 coupons. High-vield corpora 10.45 10.48 11.77 10.39 New tax-exempts Before the coupon pass. Treasury 10-yr G.O. (AA) 5.00 5.00 6.03 4.65 prices were little changed. But after the 20-yr G.O. (AA) 5.55 5.55 6.63 5.30 30-yr revenue (A) 5.85 5.85 6.80 5.80 pass, Treasurys were able to close near Note: High quality rated AAA-AA; medium quality their highs for the day. -BBB/Baa; high vield, BB/Ba-C (1) Dollar denominated. SEC -registered bonds of for. "The market had a little bit of a bid left elgn Issuers sold in the U.S. (2) Reflects the 52-week high and low of mortgage-backed securities indexes rather over at the open from the rock 'n' roll we than the individual securities shown. saw" on Tuesday. said Alan Levenson, a money-market economist at UBS Securi- dustrial production and the University of ties Inc. "It lost some of that, but then got it Michigan's early reading on April con- back on the coupon pass, he said. sumer confidence. Aside from the coupon pass, little else Much of the data the rest of this week transpired yesterday. "That was the high- and into next week will probably continue light of the day, said Matthew Alexy, to be depressed by the impact of the March market strategist at First Boston Corp. East Coast blizzard and thus be supportive The little trading that occurred was for Treasurys, participants said. dominated by dealers, with most institu- "In the near term. the data are going to Ional accounts staying on the sidelines. be positive," said Mr. Levenson of UBS. And overall, the market remains con- fined to ranges that have persisted for Corporate & Junk Bonds weeks, although prices are at the upper Utilities continued to sell new debt end of the bands. paper yesterday. although the new supply "This thing is just zigging and zagging, does not appear to be putting much of a doing a little bit better day by day,' he dent in secondary prices. said. "But we're very close to what Investment-grade bonds ended flat to 1/4 would be the top of the trading range." point higher. but volume was thin. Many With the bond yielding 6.77%. it is not retail investors are concerned that interest far from its 16-year low yield of 6.72% set on rates lack the momentum to decline fur- March 8. But without fresh news as a cata- ther, although institutional investors seem lyst for taking the market through its more confident, traders said. Interest rates have steadily dropped Short-Term Interest Rates this month. erasing in large part the 0.30-percentage-point increase in yields in (Weekly averages) March. Federal Funds "We're clearly at a turning point," one trader said. 'But which way? 3-Month Commercial Paper Nonetheless, with intermediate and 3-Month Treasury Bills long-term interest rates hovering just 4.0% above near-record lows, companies con- tinue to sell debt to refinance outstanding debt and lock in cheap borrowing rates. Utilities offered more than half of yes- 3.5% terday's $1.7 billion issuance, which in- cluded new offerings from Georgia Power Co., a Southern Co. unit, FPL Group Inc. 's Florida Power & Light Co. unit, and Penn- 3.0% sylvania Power & Light Co. One reason why utility debt continues THE WALL STREET JOURNAL THURSDAY, APRIL 15. 1993 to find buyers in the face of so much recent supply is that investors, flush with a lot of 2.5% cash to invest, have seen dwindling supply o N D J F M A of outstanding industrial paper maturing 1992 1993 in seven to 10 years. said Mark Grant, fixed-income managing director at Rod- Source: Federal Reserve Bank of New York man & Renshaw Inc. "The supply of paper in that sector has highs, prices are likely to languish in tight dried up, said Mr. Grant. This suggests ranges, players said. that a permanent move to a lower interest "We're going to need some better eco- rate base could be under way, he added. nomic data," said Mr. Levenson of UBS. Separately, investors shrugged off Unfortunately for those hoping for a news that Canadian utility Ontario Hydro near-term break out of the ranges, the will be divided into three separate operat- economic data on deck in coming sessions ing divisions. The utility, which is owned does not appear up to the task. "We're by the province of Ontario, should com- pretty much through the data cycle. The plete its reorganization by July, company news that we are going to be getting is officials said. secondary in nature,' Mr. Alexy said. While it was unclear how the move Due out today are the report on weekly would affect the utility's debt outstanding. jobless claims and the Philadelphia Fed- traders said they were confident that the aral Reserve's Business Outlook Survey for province would continue to stand behind 1/2 April. Ontario Hydro's obligations. The reorgani- Slated for release tomorrow are data on zation had been expected, they added. February merchandise trade, March in- Ontario Hydro bonds ended little changed. Municipal Bonds Municipal bonds performed strongly once again because of solid demand in the primary and secondary sectors of the market. In new-issue dealings. there was heartv 48 buying of the more than $1 billion of bonds introduced. and several underwriting groups repriced their offerings to raise prices and lower yields. Despite the latest supply spurt. second- ary market issues were generally 1/8 to % point higher in late trading. The Jackson- ville. Fla., Electric Authority's 5.50% reve- nue refunding bonds due 2013 finished % firmer at 97%. yielding 5.68%. It's clear that the mood about the market is "positive" after the big down- ward correction last month. but heavy supply could still cause problems for munis, a New York trading manager said. Largely because of quick-paced pric- ings last month. there was a long. steep decline in tax-exempt bond prices. While a number of offerings are still on a day-to- day pricing basis after the slump. issuance is starting to pick up again after a full before the Easter holiday. Pennsylvania was among the issuers of new debt yesterday. A Lehman Brothers group won the state's $420.3 million of First Series of 1993 general obligation bonds with a bid setting the true interest cost at 5.1475%. Yields for reoffered bonds were Ginnie Maes were flat at 100 23/32. Freddie yesterday. set at 3.40% in 1995 to 5.60% in 2011-13. Mac Golds were up 3/32 at 100 31/32 and "The volatility of the current environ- There was an unsold balance of $23.9 Fannie Maes were 3/32 firmer on the day ment is causing investor uncertainty re- million in late trading, Lehman Brothers at 100 25/32. Ten-year Treasury notes rose garding the possibility of an even lower said. 6/32. rate backdrop and thus is fueling inertia". Moody's Investors Service Inc. has "There were a lot of sellers - 6½s. 7s. in the mortgage-backed securities market, rated the issue single-A-1. and Standard & 7'25, you name it and they were selling it, writes Adrian Katz in a recent Prudential Poor Corp. has assigned a double-A-mi- says one trader. who characterized this Securities Inc. report called "Differentiat- nus rating. session as "very busy" for his trading ing Long-Term Opportunity from Short desk. Mortgage securities holders were Term Uncertainty. Mortgage & Asset-Backed Securities "trying to take advantage of the (recent) But looking forward. demand should The mortgage securities market was market uptick" to take profits. experience a "dramatic turnaround that little changed. trailing slightly behind Traders noted that prices, however, should more than offset any supply Treasurys amid profit-taking and linger- were confined to stifling ranges all session. growth." he writes. "Brace yourself for ing prepayment concerns. Meanwhile. there were no new real estate further volatility. but we believe now Among 7% securities for May delivery. investment conduit offerings announced is the time to invest. THE WALL STREET JOURNAL THURSDAY. APRIL 15 1002 2/2 49 She Can Be Grateful They Didn't Give Her Extra Heads or Limbs By DAVID WESSEL would then draw their pensions tax-free. Staff Reporter of THE WALL STREET JOURNAL But she never mentioned individual retire- WASHINGTON - Alicia Munnell hoped ment accounts, and her idea isn't part of for a little attention when she landed a job the Clinton economic plan. in the Clinton Treasury Department. But Ms. Munnell isn't talking: she's await- she never expected this. ing Senate confirmation as assistant Trea- In the latest issue of the supermarket sury secretary for economic policy- good tabloid the Star, Ms. Munnell gets nearly a job, to be sure, though not the president's full page, complete with a seven-inch-high No. 2 economic adviser, as the Star has it. photo and a headline that identifies her as W. Thomas Kelly, an employee-bene- "Clinton's #2 economic adviser." That fits and insurance-company consultant outshines Vanna White, who on the same from Malvern, Pa., got wind of her Fed page gets only a two-inch photo ("Doc article. He has flooded reporters and orders Vanna: Quit suntanning"). Washington officials with letters of out- It's an unusual place to find a Wellesley rage on behalf of the Savers and Investors graduate and Harvard Ph.D. who was League, of which he is the president and senior vice president of the Boston Federal primary backer. "Any person with one Reserve Bank for the past decade. What scintilla of common sense," Mr. Kelly caught the Star's eye, it says, is that "her wrote Treasury Secretary Lloyd Bentsen, pet idea to solve the nation's deficit is to "let alone any sound economic sense, GRAB 15 PERCENT out of your IRA ac- would violently disagree with Munnell." counts and pension plans." After seeing a few of Mr. Kelly's letters, The Star's article has a germ of truth. Henry Aaron, a Brookings Institution Ms. Munnell, 50 years old. wrote last year economist, wrote a reply: "I trust that your in a Boston Fed publication that individ- letter will be recognized as the wild ad uals' taxable income should include contri- hominem allegations of someone speaking butions employers make to pension funds; for a special interest who, lacking solid now, those contributions aren't taxed until arguments, resorted to mud." And he withdrawal. She proposed a one-time 15% hadn't even seen the Star yet. tax on all pension-fund assets and a 15% Mr. Kelly, undaunted, issued a news annual tax on pension earnings; retirees release summarizing Mr. Aaron's letter. THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 50 National Medical that federal and state agencies were inves- tigating whether some of its psychiatric facilities engaged in improper practices. Discloses Probe At that time, the company said it believed the most important investigations were in Texas, New Jersey and Florida. Of Two Hospitals "The investigations in Texas and New Jersey remain active, but to the com- pany's knowledge, there has been no sig- By RHONDA L. RUNDLE nificant investigative activity in Florida" Staff Reporter of THE WALL STREET JOURNAL since November, according to yesterday's National Medical Enterprises Inc. dis- filing. closed that its two psychiatric hospitals in A former employee of the Laugh- Missouri are under federal investigation, lin Pavilion in Missouri said he thinks 5 delivering another setback to the com- the investigators may be looking at that pany's efforts to move beyond the prob- facility in part because of its former ad- lems of its psychiatric division. ministrator. After the administrator left In a filing with the Securities and Laughlin in 1990, he went to Colonial Hills 10 Exchange Commission, the company said Hospital. a National Medical facility in 10 it has "learned that a federal investigation San Antonio, Texas, that came under 19 which the company believes to be signifi- heavy fire during a state investigation two 10 cant is being conducted in Missouri relat- years ago. It later closed. 10 ing to practices at two psychiatric facilities "I am under subpoena to produce 2 within that state." documents to the FBI," said the for- Investors reacted negatively to the 2 mer Laughlin employee, who asked not to O news. Shares of the Santa Monica, Calif., be identified. National Medical main- health-care services concern fell $1.125 to tained an elaborate tracking system that close at $7.125 in New York Stock Exchange put tremendous pressure on all employees composite trading. to admit patients regardless of medi- A National Medical spokesman said cal need, he said. The administrator "did the company recently received subpoenas exactly what National Medical wanted." from federal grand juries in St. Louis and the former employee said. Kansas City to produce documents from its Laughlin Pavilion facility in Kirksville and The Texas probe ended in a settlement in June under which National Medical its North Hills hospital in Kansas City. agreed to pay about $9 million, including "The inquiries are no different from the the value of surrendered claims. National kinds of inquiries under way in Texas," the Medical didn't admit wrongdoing, but spokesman said. agreed to make sweeping changes in National Medical issued a statement the operation of its psychiatric hospi- late yesterday saying it doesn't believe the tals. investigations are "financially significant. The company also faces lawsuits filed There has been no indication from federal by a number of insurance companies that authorities that any individual or facility is have charged National Medical perpe- a specific target or subject of the investiga- trated a nationwide scheme to bilk them of tion or what the eventual goal of the millions of dollars in psychiatric claims. inquiry may be." National Medical has denied the allega- National Medical said a year ago tions. THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 Mentor Set to Stop Making Implants, Pay $24 Million By RHONDA L. RUNDLE Staff Reporter of THE WALL STREET JOURNAL Mentor Corp. agreed to pay $24 million and eventually to stop making silicone breast implants as part of a legal settle- ment with women who claim they were injured by the implants. Mentor. based in Santa Barbara, Calif., is the first manufacturer to reach an agreement with us, said Margaret Moses Branch. an Albuquerque attorney repre- senting plaintiffs in the consolidated liti- gation. Women with Mentor implants will still have a claim against Dow Corning Corp., which made the gel used in Mentor's product. she said. Dow Corning is a a joint venture of Dow Chemical Co. and Corning Inc. In national over-the-counter trading. Mentor rose 75 cents to $10.75. Funds collected from Mentor will be distributed under instructions from a fed- eral court in Birmingham. Ala., that has been overseeing the litigation against Mentor and a number of other manufac- turers. More than 1,000 women with Men- tor implants have filed claims SO far, Ms. Branch said. The pact must be approved by the court. In the accord, Mentor agreed to stop making silicone implants within 18 months after the settlement is completed. That could take between six months and a year, estimated Mentor Chairman and Chief Executive Officer Christopher J. Conway. Mentor is the only remaining maker of silicone breast implants in the U.S. Dow Corning and other companies stopped making them last year after safety con- cerns caused the Food and Drug Adminis- tration to put a moratorium on sales. The FDA now allows restricted sales. mainly for cancer patients who need breast recon- ) struction. In settling, Mentor said it "denies any wrongdoing or legal liability of any kind. S We have settled in order to avoid the costs and risks associated with this kind of litigation." The proposed settlement will result in a per-share charge of between $1.15 and $1.30 a share for the fourth quarter ended March 31, Mentor said. Mr. Conway said he expects insurance to cover part of the settlement. "It won't be a very big portion. but we hope they will pay some." Silicone implants contributed roughly 20% of Mentor's revenue of about $115 million in fiscal 1993, Mr. Conway said. The company is developing a new filler material that it hopes will be available by the time it ceases production of silicone implants. Litigation is continuing against several other defendants, including Dow Corning. Honda. Isuzu Marketing Pact DETROIT Honda Motor Co. and Isuzu Motors Ltd. finalized their previously an- nounced agreement to begin marketing each other's vehicles. Under the agreement. Honda will begin selling the Isuzu Rodeo sport utility vehicle in January 1994 in the U.S. Honda said it expects to sell between 20,000 and 30,000 of the vehicles annually. In Japan. Honda will start selling the sport utility vehicles in the fall of 1993. The agreement allows Honda to fill a gap in its product line without much start-up cost. The market for recreational vehicles is strong in the U.S. and Japan. while demand for cars has been sluggish. WALT JOURNAL THURSDAY APRIL 15. 1993 52 WORLD BRITISH RECOVERY GAINS SPEED WIRE A surprisingly big increase in Brit- ain's manufacturing output last month left KOREA WIDENS CORRUPTION FIGHT some economists convinced the recession that began in the 1990 third quarter is over. As part of its anti-corruption drive. A March rise of just 0.2% had been ex- South Korea's new government began a pected, but production climbed 1.2% from banking investigation in a crackdown on January. for which the increase was re- illegal transfers of money abroad. vised to 1.3% from 0.8%. Economists also Speculation has grown that wealthy were pleased by a 1.2% climb in factory Koreans launder or hide ill-gotten cash output for the three months ended Feb. 28 through foreign banks. from a year earlier, saying this further Regulators investigation of overseas reinforced the recovery scenario. New remittances and loans includes examina- goods aren't stacking up in warehouses, tions of three of the 12 Korean branches of signaling growing consumer demand. Citicorp's Citibank unit. The bank declined to comment. Among foreign banks in Ko- rea. Citibank is the most active, with a EUROPEANS EMBRACE FREER TRADE retail emphasis, while most others have Thirty European countries agreed in a small branches doing wholesale business Copenhagen conference that free trade is largely with corporate customers. the key to undoing the legacy of communist Separately. Choi Hyong Woo, a confidant rule. The 19 Western and 11 Eastern coun- of President Kim Young Sam, resigned as an tries emphasized the importance of liberal officer of the ruling Democratic Liberal policies to Eastern countries' transition to Party after the discovery of a bribe in his market economies. Dissatisfied by Euro- son's admission to a college. Mr. Choi pean Community promises of lower trade had a key role in the anti-corruption cam- barriers, East Europeans pressed for more paign that has forced a dozen legislators and access to Western markets and a clear senior government officials to quit. path to joining the EC. But a joint declara- tion excluded accords or aid pledges and EC RESHAPES TECHNOLOGY POLICY made only a loose commitment to liberal- The European Community Commission ized trade, an issue that is souring ties between the East and the West. next Wednesday will consider a revised plan for science and technology programs for the five years through 1998. Members FOREIGN INVESTMENT IN TAIWAN rejected a first draft last year as too expensive. The new proposal, which critics In the first quarter, foreign investment branded as unwieldy and politically approved in Taiwan sank 14% to $183 slanted, would increase research grants million from a year earlier. The govern- and subsidies to 12 billion European cur- ment attributed the drop mainly to shriv- rency units ($14.78 billion) from the cur- eled investment from Japan, which rent five-year program's 6.6 billion ECUs. plunged 65% to $38.9 million. The quarterly Competing for funds are industrial re- shrinkage reversed a trend in this year's search projects in high-performance com- first two months, when foreign investment advanced 25% to $164 million. The March puting, intergovernmental computer net- works and software engineering. total was just $19.3 million. For the quar- ter, Europe displaced Japan to become the biggest investor, tripling to $67.9 million. CHINA DISCONTINUES FARM IOUs U.S. investments rose 25% to $32.7 million. China will pay for crops with cash and The electronics and electric-appliance in- stop issuing IOUs. The move underlines dustry attracted the most investment from the government's concern about unrest abroad, $94.1 million, or 51% of the total. among financially squeezed peasants and their importance to the economy. An urban LEAK CITED IN RUSSIAN BLAST and coastal economic boom has diverted money from China's vast rural areas, In last week's explosion at a Russian hurting the 800 million farmers who con- nuclear plant, tiny amounts of pluto- tract to sell part of their harvests to the nium leaked into the Siberian area. government. Last year. local governments But the republic's nuclear agency said issued IOUs to many farmers, because the contamination didn't pose health risks some money for crop purchases went in- or require new safety measures. stead to development zones, industrial The International Atomic Energy projects and real estate. Agency in Vienna also said post-blast plutonium levels didn't appear dangerous but radioactive hot spots may exist in the contaminated area of 46 square miles around the Tomsk-7 military reprocessing plant about 1,800 miles east of Moscow. Meanwhile, President Boris Yeltsin's environmental adviser, Alexei Yablokov, warned that more Russian nuclear acci- THE WALL STREET JOURNAL THURSDAY. APRIL 15, 1993 dents are possible, saying the system is dangerously out of control. POSTSCRIPTS Syrian Prime Minister Mahmoud al- Zoubi, saying Arab nations face stiffening global competition. urged them to seek economic and political unity, emulating the European Community Beer con- sumption in Japan in 1992 increased for the eighth consecutive year, and accounted for 70% of total alcoholic-beverage consump- tion of 1.56 billion gallons, up 2.7% from 1991. Overall consumption rose for the seventh year in a row, while whisky con- sumption fell for the fourth straight year. Compiled by Richard L. Holman 53 FOREIGN EXCHANGE Dollar Moves Higher as Dealers Suggest Despite a recent string of economic yen's steady gains. Rumors of intervention data suggesting the pace of the recovery is by the Bank of Japan in recent days have slackening, "there is long-term bullish- kept the market from pushing the yen still Selling Lately May Have Been Overdone ness about the U.S.," Mr. Dennis said. higher, participants said. By contrast, "German data have been "People have concluded the Bank of horrendous" recently, said Lynn Tierney, Japan might want to make a stand at 112.50 By RICHARD SCHUMACHER "We've come down quite a bit recently, a vice president at Shawmut Bank of yen," said Mr. Dennis of James Capel. Special to THE WALL STREET JOURNAL and there's a sense the dollar might have Boston N.A. Meanwhile, sterling rose against the NEW YORK-The dollar climbed stead- gotten oversold," said Lee Kassler, a se- The latest reminder of Germany's mark on news of a stronger-than-expected ily yesterday, with dealers saying that nior trader at National Westminster USA. economic troubles came yesterday when increase in British industrial production in technical indicators suggested the cur- Dealers said the dollar's upswing yes- the Federal Statistics Office reported that February. Output rose a seasonally ad- rency's recent declines may have been terday was most pronounced against Euro- western German retail sales fell 8% in justed 1.6% from January, compared with overdone. pean currenices, as players took profits on February, more than expected. market expectations of a 0.7% rise. Late in New York, the dollar was quoted the dollar's sharp decline Tuesday follow- Traders said the dollar's rise against The data added to "the substantial at 1.5935 marks, up from 1.5820 marks late ing a surprising 1% drop in U.S. retail Tuesday in New York. The U.S. currency the yen yesterday was prompted mostly by evidence that we're getting growth in the sales during March. uncertainty over the outcome of a meet- U.K. economy," Mr. Dennis said. also was changing hands at 113.88 yen, up from 113.40 yen. Sterling was trading at Additionally, some players now believe ing of Group of Seven finance and foreign Ms. Tierney said that data also in- $1.5520, down from $1.5580. the dollar is approaching "good, long-term ministers in Tokyo. crease the likelihood that British interest About midday Thursday in Tokyo, the buying levels" against the mark, accord- They said perceptions that the Group of will hold steady in the near term, which dollar was trading at 1.5958 marks and at ing to Geoffrey Dennis, a strategist at Seven has wanted the yen to appreciate as she said is bullish for sterling. 113.84 yen. James Capel & Co. one way to restrain Japan's bulging trade Mr. Dennis and Ms. Tierney said they surpluses have propelled the yen's recent expect that growing confidence about the advance. The Group of Seven is comprised U.K. recovery will continue to bolster of the U.S., Britain, Japan, Germany. sterling against the mark in the next France, Italy and Canada. several days. But both also said that 2.50 But now, the market is "leery" about marks likely will be a significant technical what group ministers might say about the resistance point for the pound. yen, said Ms. Tierney, and this provided an excuse to take profits. "No one knows THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 London Metal Exchange Prices what they will say," Ms. Tierney added. Quotations In pounds sterling per metric ton at the close In the past, official comments have had of second ring trading In the afternoon. Wednesday. April 14, 1993. significant impact on the yen. Players Bld Chg. Asked Chg. have used such comments to try to deter- Aluminum Spot (z) 1124.50 + 3.50 1125.50 3.50 months 1147.00 + 4.00 1148.00 4.50 mine government preferences on ex- Tin- (z) 5610.00 5.00 5615.00 months 5670.00 5675.00 change-rate levels. On Feb. 19, Treasury Copper Cath HI Spot 1277.00 28.00 1278.00 28.00 Secretary Lloyd Bentsen said he would like 3 months 1302.00 27.00 1302.50 27.00 Lead Spot 273.50 1.50 274.50 1.50 to see a stronger yen, and the Japanese months 284.00 .50 285.00 currency surged. Nickel Spot (z) 5975.00 5980.00 5.00 months 6045.00 6050.00 Moreover, players said Japanese offi- Zinc Sp Hi Spot (z) 1024.50 12.50 1025.50 12.50 3 months 1043.50 12.00 1044.00 12.00 cials seem increasingly concerned with the 2 Prices quoted in U.S. dollars. Vehicle Sales Rose % Early This Month, Some Data Indicate By OSCAR SURIS Staff Reporter of THE WALL STREET JOURNAL DETROIT - Strong demand for trucks in early April appeared to sustain the sales rebound for domestically built vehicles that began late last month, industry ana- lysts said. Ford Motor Co. and Chrysler Corp., which together represent about 40% of the vehicle market, didn't report early April sales yesterday. However, based on sales reported by General Motors Corp. and several Japanese auto makers, analysts estimated the industry hit a seasonally adjusted annual sales rate of about 6.5 million cars and 4.9 million trucks in the first 10 days of April. That would put total domestic vehicles sales at 11.4 million vehicles, well ahead of the 10.9 million rate for the previous 30 days. "The consumer balance sheet has dra- matically improved. with debt levels down substantially. And that provides a launch- ing pad for increased spending," said Thomas Glavin, an auto industry analyst with C.J. Lawrence Inc. Demand has continued to be weak for passenger cars, however. "They are clearly being affected by the sluggish economy, while light trucks look like we are back in the 1980s," said Christopher Cedergren, an auto industry analyst for AutoPacific Group Inc. GM reported its sales of domestically produced cars fell 0.8% while domestic truck sales surged 25.3%. The auto maker sold 44,279 trucks in early April, up from 35,351 trucks a year earlier. Likewise, Toyota Motor Corp.'s truck sales jumped 30% in early April. as the Japanese auto maker sold 6,029 trucks, up from 4,630 trucks a year earlier. Unlike GM. Toyota's car sales also were robust, increasing 39% in early April, a gain that analysts attributed to a recovering Califor- nia economy, where the Japanese account for more than half the automobile market. Another Japanese manufacturer, Nissan Motor Co. said its car sales increased 22%, while its truck sales jumped 137% for the period. Honda Motor Co., which has been los- ing market share in recent months. re- ported sales of its domestically produced cars fell 6.9% in early April. Mazda Motor Corp. said its sales of domestically made cars increased 24%, while its truck sales fell 3%. Mitsubishi Motors Corp. reported a 34% drop in domestic car sales for early April. Sales of trucks made in the U.S. by Isuzu Motors Ltd. increased 77%. Ford plans to release its 10-day sales figures today. Chrysler. which reports only month-end sales figures, had a 32.4% in- crease in car sales and a 29% increase in truck sales in early April, according to an estimate by Ward's Automotive Reports, a trade publication. THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 55 Manufacturers' ment index was 24. The index dropped a turing are just beginning a period of sults suggest that contractors may not be point in February, and recovered the expansion." able to continue to pass along the in- point in March. Reflecting increased confidence in a creased costs of lumber and wood products Optimism Is Up, In its monthly survey of 1,000 manufac- gradual economic recovery, construction to their customers," Mr. Handler said. turers nationwide, D&B said more compa- companies showed the greatest confi- The indexes represent the percentage nies expect to add employees during the dence, D&B reported in a separate of respondents who see increases, minus Survey Indicates coming three months than in February's monthly survey of 200 construction con- the percentage indicating decreases, in survey. Douglas Handler, D&B's manager cerns. More firms said they expect orders various segments of economic activity. of econometric analysis, said that manu- to increase than in the February survey. In facturers' expectations to increase capac- March, the new-orders index for the com- By PATRICK M. REILLY Staff Reporter of THE WALL STREET JOURNAL ity during the coming three months were ing three months rose four points to 51 Apache Discovers Natural Gas from 47 in February, but remained six HOUSTON - Apache Corp. said it dis- NEW YORK - The nation's manufac- unchanged. In February, D&B's index of manufacturers' expectations to increase points below March 1992's level of 57. covered natural gas in a wildcat well turers showed improved optimism in capacity stood at 37, the highest level since "Even in the face of ongoing economic drilled offshore western Australia. The March after a February slip, while con- stress in the West and a particularly rough well flowed about 33.8 million cubic feet of struction industry executives' optimism March 1991. winter, construction executives remain up- gas and 1,714 barrels of condensate a rose for the fourth straight month, Dun & "It is interesting that the more cyclical beat," Mr. Handler said. day. Bradstreet Corp. said. durable-goods industries, which experi- But in the construction survey, the Apache, which owns a 20% interest in Manufacturers' optimism returned to enced a longer period of expansion, are price index for the coming three months the well, said it intends to drill delineation the record high levels of January, Dun & planning to beef up payroll," Mr. Handler fell to 20, five points below February and wells to determine the extent and size of Bradstreet said, when the Industrial senti- said. "The nondurable areas of manufac- four points below March 1992. "The re- the well later this year. THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 Communists Find New Life in Lithuania Old Bosses Return, Pushing Capitalism and Ties to Russia By BARRY NEWMAN The 25 co-owners call it Ateitis, "future" in 0 50 Staff Reporter of THE WALL STREET JOURNAL Lithuanian. The name makes Ona Pukals- VILNIUS. Lithuania - A cold snap last MILES kiene laugh. In an overcoat and muffler, October accompanied the first elections to LATVIA RUSSIA she sits at her office desk doing the Parliament since this nation freed itself Baltic accounts. "They destroyed agriculture." from Soviet rule. It turned cold again in Sea she says, clicking her abacus. February, just as Lithuanians, for the first LITHUANIA Sajudis divided Lithuania's 1,200 collec- time, were voting for a president. tives into 4,450 companies, letting mem- The country had no heat. All its oil RUSSIA Vilnius BELARUS bers feud over buildings, supplies, land came from Russia, and Russia had cut it and labor. This farm hived off mills and off without a drop. The absence of central POLAND machine shops, all fast going bankrupt. heating seemed to nurture nostalgia for And the livestock? "Don't go see them." the central plan. says Ms. Pukalskiene. "It's a horror." Lithuanians cracked open the Soviet The sties are empty, the 1,500 pigs Union in 1990. Just 13 months before. the slaughtered. In the barn. a half-dozen head world had at last endorsed their independ- of cattle stand in muck, hides drooping on ence. But when elections finally came, bone. They are starving. these same people voted in the old politi- Sajudis knew that Russian fuel heated cians, rechristened the Democratic Labor Lithuanian hothouses. that Russian fodder Party. As Lithuania's first president they fed Lithuanian calves. What it didn't want chose Algirdis Brazauskas. formerly local- to know was that Russia's resources could branch chairman of the Communist Party still be milked. With links to the Russian of the Soviet Union. industrial bureaucracy. private Lithua- Vytautas Landsbergis, the moody mu- nian traders are spiriting tons of material sic teacher who led Sajudis, Lithuania's will offer variations on another reason: through the country and onto Western liberation movement. didn't even run. You can't trust him. commodities markets. Lithuania is drip- At first, Lithuania's vote looked woeful. Piano against the wall, heater under ping with dollars. The government doesn't On second glance, it looks hopeful. Yes, the desk. Mr. Landsbergis broods in his get a red cent. people felt worn out by hard times, but they parliamentary office. "Many features of "If an enterprise sells 100 tons of cop- didn't rally to revive the order they had our Soviet past are coming back to life,' he per. Edward Petraitis says, "you can be just torn down. As much as it startled those says. "I mean a tendency to suppress sure another 100 tons are sold under the wary of resurgent communism, the elec- people who think differently. to support table. What's sold under the table is what I tion here wasn't what it seemed - an power by fear. The old custom of dictating get." Mr. Petraitis, born in Australia and alarm that Russia's ravaged voters. given is very easily renewed." educated in England. now profits from his a similar chance April 25, will return Shortcomings of Sajudis Lithuanian roots by extracting metals, reactionaries to power. Lithuania's ex- communists are anything but. That will be hard to prove - unless the chemicals and timber from Russia. He right wins in Moscow and Russia tries to maintains that his business is legitimate. Saying 'No' to Nationalism retake the Baltics. If Lithuania succumbs "Russians think they don't understand Since coming back to their chilly of- to a new cataclysm, though, Sajudis would the Western mentality," he says. "They fices, they haven't set out to subvert have to bear part of the blame. rely on the Baltics to be their bridge to the democracy or dump capitalism. Rather. While Labor rebuilt its organization, world. We've got this relationship, so we they have disowned the least-likable prod- the independence coalition fell apart in capitalizing on it." uct of communism's collapse: overdone petty quarrels and concentrated on smash- Sajudis might have done the same, Mr. nationalism. ing the clockwork of the Soviet state. Petraitis thinks. He once suggested that "Leaders in Yugoslavia and other "They thought all they had to do was break the state wire company could make a places use ethnic craziness for political it and replace it," says Romualdas Ozolas, fortune by getting in on the copper trade. purposes," says Povilas Gylys, the new a centrist deputy. "I saw some ministers." he says. "They foreign minister. "Some are former com- Even accomplishments tripped up Sa- were just sleepy." But when Labor's econ- munists - but of a different kind. They judis. It enacted a new constitution; but omy minister, Julius Veselka, hears the exploit national feelings, and their nations without such a framework, voters might proposition from a visitor, he says, "Yes. suffer.' have deemed a government of ex-commu- It's a good idea." "Sajudis didn't see that nationalism nists too big a risk. Sajudis also gained For a party on the left, Labor's eco- has no future." says Justinas Karosas, Lithuania's greatest goal: a Russian nomic posture faces squarely to the right. the Labor Party's majority leader. "It pledge to withdraw its army of occupation. "A neo-communist redistribution of as- thought we could cross out 50 years of But by removing a threat that still besets sets,' is Mr. Veselka's label for the Sajudis history and build democracy from nothing. the other Baltic states, Sajudis lost its industrial privatization plan, on hold pend- We can't. In Lithuania, the time for ro- strongest credential for staying in power. ing revision. Farms will re-consolidate, if mance is over." Its weakest credential was economic possible, into 150-acre spreads. Prices will Though these ex-communists quit the management. Output and wages dropped float, and the budget will balance. "The Soviet party in 1989, they didn't believe a by half here in 1992. Lithuania once spun people are smart enough." he says, "to tell year later that the Baltic nation of 3.7 Russian copper into wire and made motors the difference between sweet promises and million could secede from the Soviet Union. for Russian refrigerators; now it can't bitter realities." They accept that for materials and mar- afford the copper and Russia can't afford The International Monetary Fund and kets Lithuania must look to its old oppres- the motors. The same holds for every raw Western diplomats here all buy it. Mr. sor. material and manufactured product. The Landsbergis doesn't. On the day of his President Brazauskas calls it "peaceful one thing Lithuania imported from Russia country's first presidential inaugural. he coexistence." "Why should we be narrow- last year was inflation. It hit 1,700%. sits in his office as drumrolls rise from the minded?" he says. "For 50 years we were Sajudis can't take all the responsibility. courtyard below. "The Russians want to part of the Soviet Union. It's impossible to But it is partly at fault - with scorn for throw upon us special ties, unnecessary cut these ties. We choose nonconfronta- deals with Russians and zeal for undoing treaties," he says. "We are treated as a tion." their institutions. possible area of military activity, a zone of The less spiteful Russia's freed repub- Look at what's left of the collective farm Russian interests." lics are, Lithuania's governors think, the in the village of Maisiagala. A cart lies Trumpets sound. Mr. Landsbergis ex- less ammunition Russia's own nationalists overturned near a mound of rusting ma- cuses himself to stand at the window. A will have in their war with Boris Yeltsin. chinery. Fuel tanks stand empty. Beneath band strikes up the new national anthem, Lithuanians who back Mr. Bra- ripped plastic sheeting in a cold hothouse, and the crowd sings: zauskas - and 60% did - explain their men weld together crude stoves. They have "Lithuania, our choice with variations on one reason: He nothing to burn but wood. homeland, land of worthy heroes, may can manipulate the sinking Soviet system. The farm has fractured into 15 compa- your sons derive their vigor from your vast Anyone who didn't back Mr. Brazauskas nies. This one wants to grow vegetables. experience. THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 57 Yeltsin Says He'll Resign Only if Most Vote Against Him and Back Congress By ELISABETH RUBINFIEN Mr. Yeltsin has been fighting back on a Staff Reporter of THE WALL STREET JOURNAL stumping tour around the country, armed MOSCOW Facing a crucial confidence with a slew of campaign promises. He vote in 10 days. Russian President Boris reiterated some of those promises at the Yeltsin is defining defeat very narrowly, news conference. including: more-consis- signaling that he intends to remain in his tent economic reforms: legal protection for post. individual and private property rights: the Mr. Yeltsin said he will resign only if curtailing of subsidies to state industry most people vote against him and simulta- and other ailing sectors. and social protec- neously give re- tion for the needy. He also pledged more sounding support independence for regions within Russia. to the Congress by prompting the leaders of Russia's 21 se- voting against miautonomous ethnic republics yesterday early parliamen- to agree to take part in the referendum. tary elections. Mr. Yeltsin also debunked what he Otherwise even called the mvth of an "avalanche-like" if he loses the con- collapse of industrial production. contend- fidence vote he ing that productivity had stabilized in will remain in of- recent months. Citing inflation as the fice at least until main problem. he said that also appears to new elections. be improving. The monthly inflation rate which he expects has dropped to 17% in March from 25% in next autumn. he February and 27% in January. "The tend- said. Boris Yeltsin ency is clear, he said. There should be no vacuum of power during this period. he said at a news conference. "Until the elections. the president should go on work- ing. If the president receives support dur- ing the referendum. his actions will be more resolute.' The referendum scheduled for April 25 includes four questions that were carefully worded by the Congress of People's Depu- ties in an attempt to stack the deck against Mr. Yeltsin. They are: Do you trust in the THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 president? Do you support the economic and social policies of the president? Do you want early presidential elections? Do you want early parliamentary elections? The congress also required Mr. Yeltsin to receive support from more than 50% of eligible voters. regardless of turnout. to claim legal victory - a near impossibility. Mr. Yeltsin has challenged this in the constitutional court and his aides are con- fident they will get a favorable ruling, at least in regard to the first two questions. Complicated Referendum The referendum risks drawing a low turnout in part because it seems so compli- cated. Trying to simplify the process. and increase the vote favorable to him. Mr. Yeltsin has urged people to vote "yes" to all four questions. His supporters are advocating a "yes" vote to three questions and a "no" to early presidential elections. Pravda. the former Communist Party daily, urges "yes" to the first two and "no" to both early elections. "Outwardly [the political crisis) is manifest in the central authorities of the country having quarreled and failing to come to terms." Mr. Yeltsin told re- porters yesterday. "But in reality every- thing is far more deep-seated and serious. What it all amounts to in fact is that two irreconcilable positions on the past, pres- ent and future of Russia have come into conflict. into opposition. At the root of the conflict, Mr. Yeltsin said. is the resistance of holdover Soviet bureaucrats to distributing property to the people. The opponents of reform. he said, offer recipes for development that lead to one conclusion: "Russia is dead and done with, it can be written off as far as world development. world politics and economics and the world balance of power are concerned." 'Dictatorial Regime' Mr. Yeltsin's opponents hurl similar accusations back at him. On Tuesday, Congress Chairman Ruslan Khasbulatov accused the government of tapping phones and using other repressive methods. "The political regime has been transformed openly into a dictatorial regime." Mr. Khasbulatov told a public meeting. Mr. Yeltsin's vice president. Alexander Rutskoi. has aligned against him. Mr. Rutskoi. an Afghanistan war hero with open presidential ambitions, has publicly criticized Mr. Yeltsin's economic reforms and some of his advisers. Mr. Yeltsin hasn't demanded the vice president's res- ignation. but implied that if he wins the referendum. Mr. Rutskoi should go. "Rutskoi is categorically not in agreement with reform.' Mr. Yeltsin said. How can a vice president work who is not in agreement with the president?" 58 A14 REVIEW & OUTLOOK Dissecting the Uninsured Bill Clinton has 500 geniuses get seriously ill and therefore less beavering away on Hillary's health- likely to collect much from their in- care task force. and one of the adver- surance. Under the circumstances, tised reasons is the "crisis" of the 37 paying a fat premium would only sub- million uninsured. But before turning sidize hernia operations for the old one-eighth of the economy upside codger at the next lathe. down to help these souls, maybe some- In effect, these workers opt to self- body should try to distinguish between insure, which means they reach into an intriguing problem and a "crisis." their own pockets when they need a Thirty-seven million sounds like a doctor. As patients, they're uniquely lot, but that still leaves 182 million interested in getting their money's people swimming in the world's best worth. On average such people spend medical care. Some 83% of Americans $711 a year on medical services, or less have public or private insurance or than half what people spend when both, including the genuinely poor: 24 company health insurance is paying million of them have Medicaid. the freight, according to actuarial ac- Now, being without health insur- countants Milliman & Robertson. ance is not the same thing as being What makes this $711 figure even without health care. But it is true that more impressive is that it includes the some folks are outside the system. Who are they? $10 billion a year in "uncompensated care" that hospitals are stuck provid- The Census Bureau's survey asks, ing to people without insurance. No 'Was anyone in this household cov- doubt, some of the uninsured exploit ered by health insurance at any time" in a given year? In theory, people who the availability of this largess. They say "no" should have been without assume that if they get really sick, help health insurance for the whole year. will turn up-and generally it does, In practice, the Census Bureau tacitly though the fully insured get the tab. accepts that what these folks are re- Nobody knows how many of the ally saying is they don't have insur- long-term uninsured are truly needy, ance now. That is, for most people, how many are just economizing or it's a temporary condition. how many have fallback strategies. It turns out that half of the unin- They do indeed have a problem. but it sured go without coverage for less isn't that their afflictions will go un- than five months, and 70% for less treated; it's that if they contract than nine months. Among the unin- something serious while they're unin- sured capable of or willing to work, sured, insurance companies will deny three-quarters reacquire coverage them coverage for what's called a within a year. Amazingly. this figure "pre-existing condition." But no way holds for both full- and part-time do 36 million people have this prob- workers. lem. or "crisis." What's going on here is that many No question. our health care sys- of the uninsured are between jobs or tem is riddled with distortions. are just climbing out of the Medicaid There's room for improvement. But at corral and into the self-supporting least the current structure manages sector. A lot may be plugging away at to reconcile the conflicting demands low-wage or part-time jobs in indus- we place on it. We want medical care tries like retail with high turnover. that's responsive to the individual, Eventually their employers will offer but we don't want people dying for them health insurance but only after lack of basic treatment just because a waiting period. That's because em- they're penniless. ployers want to make sure that new Mr. Clinton goes around quoting hires intend to stick around first. FDR and claiming that the times call All of this throws into doubt a cen- for "bold, persistent experimenta- tral tenet of the scheme being ad- tion." But this is not the Great De- vanced by Hillary's project, that com- pression and America isn't running panies must be compelled to insure off a cliff. Despite all the media their workers. "Mandating employer hoopla and hand-wringing in various provided health insurance is not likely to provide it to great numbers of the medical journals, we think a very uninsured" is the conclusion of strong case can be made that smaller- Katherine Swartz and Timothy scale experimentation and innovation McBride. who produced the above find- would be more apt. ings in a study for the Urban Institute. How about medical IRAs. Medicaid What else do we actually know vouchers and loosening up state man- about the uninsured? They tend to be dates that force companies to gold- young. low on the earning curve, but plate their health benefits? Each of not necessarily poor. Nearly half these would help to lure more folks un- have household incomes above der the insurance umbrella and trim $20,000 and 17% earn more than demand for uncompensated care. $40,000, according to the Employee Perhaps the drumbeat of stories Benefit Research Institute. about the system's anomalies will What this suggests is that many help the Clintonites bully Congress young workers are turning down into enacting whatever Hillary cooks health coverage from their employ- up. But a sober look at the system's ers. They'd rather have the cash real problems suggests that this ad- wages and funnel the money toward ministration is really overreaching. A rent. car payments or a savings ac- spasm of activist hubris from a secre- count. This isn't such a foolhardy tive group of liberal geniuses is not gamble. Young folks are less likely to anyone's formula for a serious cure. THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 59 A15 Justice's Proper Interference in Rep. Ford's Trial Rep. Harold Ford's acquittal Friday on Because Mr. Ford likely would continue strongly felt that the rule in Los Angeles court's decision to go forward with a jury charges of financial corruption further to seek racial sympathy in Memphis, the should be the rule in Memphis. from Jackson was within its discretion. validates my ruling while acting attorney prosecutors rationalized that by asking for The Ford case is instructive not only This was a contingency we anticipated general that the government should not a Jackson jury they were doing no more of the government's role in seeking a fair from the outset. It represented no change engage in jury shopping. Contrary to some than ensuring that the government would trial but also of a fundamentally conserva- of position for the government to join Mr. assertions, my decision was made inde- get a "fair" trial. But the prosecutors are tive view of race. The importation of a Ford's motion to strike the Jackson jury pendently. It was informed by a race-neu- not the government; the people are. And as virtually all-white jury to a mostly black but then not to support his petition to block tral policy, consistent with the Justice the people's surrogate, I questioned community, whatever rational concerns the trial. Department's historical practices. whether it was fair for the Justice Depart- led to it, sends a powerful racial message: The decisions I made in this case were Federal prosecutors originally sought ment to declare an entire community inca- that the black community's citizens are mine alone and were made without any to try Mr. Ford, who is black, along with pable of rendering justice. For many unworthy of trust. attempt by purported agents of the White several white co-defendants, in Knoxville, reasons - historical, practical and ethi- Such a notion should be particularly House, including its nominee Webster Tenn., a mostly white city where several concluded that it was not. unacceptable to us conservatives who de- Hubbell, directly or indirectly to exert alleged collaborators had been convicted. Although issues of race marked the fended the nomination of Justice Clarence influence. I value my independence and The prosecutors wanted the Ford trial to be case from its beginning (and although Mr. Thomas against liberal criticisms of his that of the Justice Department enough that held in Knoxville because they worried Ford doubtless sought racial advantage). I would have resigned if I had been that the congressman's popularity would at my order the Justice Department joined make it difficult to obtain a favorable The decisions were pressured, but am compelled to note that Mr. Ford's petition for a Memphis jury. In there would have been nothing inherently doing so, I was supporting the race-neutral mine alone and made with- improper about the president himself try- Counterpoint principle that federal prosecutors should ing to direct his subordinate's decision. expect just verdicts from citizens of any out any attempt by pur- Nor is there anything improper about By Stuart Gerson community. The Framers of the Constitu- ported agents of the White an attorney general meeting with public tion recognized this principle, writing in groups or members of Congress-such as I verdict from his constituents in mostly the Sixth Amendment that the accused House, including its nomi- did with the Congressional Black Caucus black Memphis. shall be tried "by an impartial jury of the on the Ford matter - to speak about policy Memphis was nonetheless ruled the State and district wherein the crime shall nee Webster Hubbell. issues raised by a prosecution. The prose- proper locale for the trial, which ended have been committed." cutor should be publicly accessible. with a hung jury split strictly along The decision to accept the juries that nonconformity with perceived black philo- What was unfortunate in this case is THE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993 racial lines. The government wanted a re- inhabit the cities in which the Justice sophical orthodoxies, or who urge local that the compressed period from when I trial, but evidence of improper pressure on choice in education, housing and health first learned of the issue to when I had to potential jurors by Mr. Ford and his sup- Department tries its cases is not only care, and demand local initiative to create make my decision tended to give the consistent with constitutional tradition but porters raised the question of whether a also with the department's historic prac- a culture of responsibility in minority appearance of undue political influence. I retrial could be decided on the merits. tice. The 1960s civil rights trials of Klan communities to counteract crime, drug thus was left with the choice between Forbidden to try the case outside of the dependency and illegitimacy. We cannot making what to me was the right decision Memphis area, the prosecutors convinced criminals all took place before their towns- rationally expect minority communities to and enduring criticism and results, includ- the judge then presiding at the retrial that men. More recently, the government tried accept justice if we have no confidence in ing the resignation of a U.S. attorney in the jury should be selected from Jackson, John Gotti before a hometown jury in New them to do justice. Tennessee, or making the wrong decision York City, where many feared or admired Tenn., a largely white community near him. None of this, however, is to say that simply to maintain a false peace. Though Memphis. the Jackson jury did not deal with the case these events were troubling, the decision That judge ruled without apparent con- In most cases, it is the government, fairly, just as I believed a Memphis jury was not. I thought then as I think now: A sideration of such possible alternate meas- opposing defendants' motions to change should have been made to do. We should Memphis jury should have been given the ures as sequestration or use of an anony- venues or avoid juries, that insists that not stereotype a largely white community chance to do its civic duty in the Ford mous Memphis jury. The prosecutors exer- local passions and prejudices can be over- either. case. cised most of their challenges against come in fair courtroom proceedings. The My decision was a matter of strong blacks. As a result, of the 18 regular and Justice Department took this position with policy preference, but not of legal man- Mr. Gerson, appointed to the Justice alternate members of the Jackson jury, 17 respect to the police officers charged in the date. The Justice Department was re- Department by President Bush, was Presi- were white. Rodney King case in Los Angeles. I quired to conclude that the Tennessee dent Clinton's acting attorney general. Sales tax back Yesterday's missteps took the punch out of the administration's ef- fort to target at least nine Repub- lican senators who are part of a as 'possibility' united GOP effort to block Mr. Clin- ton's $16 billion stimulus plan. Senate Majority Leader George Mitchell of Maine also learned yes- terday that two more Senate Demo- Latest change crats, Russell Feingold and Herbert Kohl, both of Wisconsin, plan to join considered for Sen. Richard Shelby, Alabama Democrat, in opposing the presi- dent's plan, CNN reported. health reform TAX Even as the White House used sev- eral surrogates and props to attack From page Al Republican critics of its one-year By Paul Bedard AI spending plan, Mr. Clinton appeared Donna Shalala told USA Today in THE WASHINGTO TIMES to be conceding defeat. yesterday's editions that the tax was Speaking to mayors and business- The Clinton administration yes- being considered. Alice Rivlin, men at a summer jobs conference in terday shifted course and said it is deputy director of the Office of Man- Arlington, Mr. Clinton even scuttled considering a national sales tax. un- agement and Budget, made similar his earlier claims that the stimulus dermining its stumbling effort to comments to a business group. package would jump-start the lum- convince Republican senators to In addition to admitting the sales bering national economy. back its economic package. tax is a contender to fund the poten- "It is an attempt to engage in an Despite earlier promises by Pres- tial $150 billion health care reform experiment to see whether or not, ident Clinton to reject a national package Mr. Clinton is expected to with the economy recovering in "value-added" tax on virtually all unveil May 17, the spokesman said terms of corporate profit, we can products, White House spokesman the White House wants the health give a little goose to it," he said. George Stephanopoulos said Hillary plan to pay for elective abortions. For the second day in a row, Mr. Rodham Clinton's task force is con- The White House effort to sell its Clinton muted his criticism of Re- sidering the tax to cover a massive stimulus program also tripped yes- publicans. Most of the nine targeted national health care program. terday when the press office re- GOP senators said the president has "This is something that is being leased a letter signed by Republican yet to call them to lobby in person, looked at, but no decision has been governors that appeared to back the choosing instead to rely on Vice made of any kind," Mr. Stephan- president's plan, even though it was President Al Gore and Cabinet sec- opoulos said. written before the administration retaries. Presented a chance later in the program was presented. "We feel solid. They've come into day to shoot down the tax talk, Mrs. Tucker Eskew, spokesman for Gov. this too late," said a spokesman for Clinton remained silent during a Carroll A. Campbell Jr., South Caro- Senate Minority Leader Bob Dole of photo opportunity with reporters de- lina Republican and one of the sign- Kansas. "They just don't get it." spite questions on the issue. She ers of the letter, said it had nothing Mr. Dole and other Republicans chairs the health care reform task to do with the Clinton plan. He ex- yesterday continued their attack on force. pressed anger that the White House The White House earlier flip- would use the letter, which detailed flopped on the president's campaign a National Governors' Association promise to cut taxes on the middle jobs policy, to sell its program and pressure Republican senators who the president's plan, which they class and has included an energy tax and new income taxes on the rich in are holding up consideration of the claim is full of pork barrel projects, swells the federal deficit and creates its budget plan. White House plan. "The White House is desperate. few jobs. Just three weeks ago, Mr. Steph- The letter has no direct correlation Mr. Dole, speaking at a fund- anopoulos reiterated the president's with the Clinton 'make-work' plan," raiser for one of the targeted sen- firm position against the value- added tax to pay for health care re- he said. "They grasp at straws, but ators, James Jeffords of Vermont, is- form. "The president's proposal will this is a weak reed," said Mr. Eskew. sued a news release questioning the cover a four- to five-year period, and He said Mr. Campbell opposes the emergency nature of Mr. Clinton's it will not be in that proposal," he president's economic plan. stimulus plan. "The only emergency I can see is Bill Clinton's misguided said, when pressed on reports plan to jack up the record federal value-added. or national deficit another $19.5 billion looks was being considered. like another false alarm from the In a Feb. 19 visit to Chillicothe, White House," he said. Ohio, Mr. Clinton floated the idea of Sen. Alfonse D'Amato, New York a national sales taxbut quickly re" Republican and one of those tar- jected it himself. "If we start.consid- geted by the administration, also ering it, I'll tell you," he promised criticized the White House. "Tomor- reporters at that time. row is April 15th, the day middle- A value-added tax imposes taxes class taxpayers realize how much of at each stage of production and their hard-earned money goes to the would raise the price of a final prod- government," he said. uct by the amount of the tax. In addition to Mr. D'Amato and Mr. Jeffords, the administration has targeted William Cohen of Maine, Explaining the change of position, William Roth of Delaware, Mark Mr. Stephanopoulos said yesterday Hatfield and Bob Packwood of Or- the president reserves the right to egon, Ted Stevens of Alaska, Arlen change his mind. "Well,"I mean, Specter of Pennsylvania and David that's indisputably true," he said. Durenberger of Minnesota. Mr. Stephanopoulos was forced to The administration, meanwhile, confront the issue because Health rolled out a letter from three Repub- and Human Services Secretary lican mayors calling for passage of the stimulus plan. see TAX, page A8 "While we believe Republican leadership has made a very impor- tant political point before the Senate recess, we urge you to vote for clo- ture on the president's plan and end this debate," the mayors wrote yes- terday on letterhead from the U.S. Conference of Mayors. The Washington Times THURSDAY, APRIL 15, 1993 Clinton's method ed to fight plan "Americans who have completed their taxes will be sorely aware of how much they already have to 'con- leaders are taking tribute,' said Rep. Tom DeLay, a on to President Clin- Texas Republican who organized the plan out on the road campaign. Americans their fu- He said they will try to deflate the Clinton terms "contribute," "sacri- very of 1992 tax pay- fice," "investment" and "incentive" American minds, 28 to show flaws in his $16.2 billion members and stimulus package and a budget that will conduct proposes a $300 billion tax increase. Bob Michel said the GOP had only hall" meetings in Many of the town meetings will two weeks to devise its plan. turday feature a 12-minute video that cri- the success of this tiques the Clinton budget and gives White House budget, said they took Republicans plan the Republican alternative, now be- a page from Mr. Clinton's public re- possibly expand their ing pushed in Congress by Rep. John lations juggernaut. peal through meet- Kasich of Ohio, ranking Republican "He's turned the White House into 29 - Mr. Clinton's on the House Budget Committee. a television disk," said Rep. Dick Ar- House Minority Leader Bob mey, Texas Republican and House imbracing a process Michel said Republican activists Republican Conference chairman. going back to voters to had only two weeks to devise the Mr. Armey said that Republicans person and not through grass-roots comeback, given their seek to convey that raising taxes Rep. Peter Hoekstra, busy schedules. does not spur the economy and that mublican, said at news Since the administration pro- real spending cuts are necessary. vesterday. They get posed its federal budget on Feb. 17, The Republican campaign will de- information on how, we do the president and his Cabinet trav- fine GOP views on economic reform. Washington." eled nationwide to promote it - urg- It also will remind the public that town meetings will ing citizens to call their members of Republicans devised a deficit reduc- C-SPAN, but nego- Congress to endorse the plan. tion and economic growth package the major networks Republican leaders, confronted under President Bush, but it was fruit, the Republican with Democratic taunts to "give spe- killed by the Democrats who con- cific" alternatives in criticizing the trolled Congress: The Washington Times THURSDAY, APRIL 15, 1993 62 63 PAGE B6 / THURSDAY, APRIL 15, 1993 * The Washington Times Clinton picks District resident THURSDAY, APRIL 15, 1993 as local liaison By Jim Clardy and Paul Bedard several organizations and state and THE WASHINGTON TIMES local governments. She has worked in a variety of po- President Clinton, promising to be sitions for the U.S. Conference of a better neighbor to the Washington Mayors, the National League of area, yesterday named a longtime Cities, the National Governors' As- associate with broad local contacts sociation and the Federal Home as his regional czar to boost cooper- Loan Mortgage Corp. She was a ation between federal and local gov- senior campaign adviser to Mr. Clin- ernments. ton, whom she has known since the Loretta Avent, special assistant early 1970s. for intergovernmental affairs, was "Too often in the past, the federal appointed White House liaison to the government has not been a very Metropolitan Washington Council of good neighbor to the rest of the Area officials say they hope the selection of Loretta Avent will help them. Governments (COG), which coordi- Washington area," Mr. Clinton said. nates regional action on transpor- He said he has "full confidence" D.C. Delegate Eleanor Holmes Nor- Crone said. tation, housing and development. in Mrs. Avent "to make the White ton. The last administration to have a "There are a lot of problems, such House a full partner in the affairs of Local officials hope that Mrs. strong regional czar was President as crime and transportation, which the region where we live." Avent's access to the Oval Office will Ford's, although others have as- cross boundaries. Regional coopera- Although District leaders are result in the federal government signed a White House staffer as a tion is something that has to hap- counting on the Clinton administra- paying more attention to local con- liaison to local governments. In Jan- pen," Mrs. Avent said. tion to back their drive for statehood, cerns. uary, COG's chairman wrote Mr. White House observers said Mrs. Mrs. Avent said she will not take a stand on the divisive issue. Most sub- Unlike the Bush and Reagan ad- Clinton and asked that he "designate Avent's designation as a special li- aison to COG raises her visibility to urban lawmakers oppose statehood ministrations, which local govern- one of your senior advisers with re- that of an ambassador for the Wash- for the District, fearing that the 51st ments viewed as aloof, the Clinton sponsibility for Washington metro- politan area affairs." ington area. The only other region state would impose a commuter tax administration has shown a willing- on their residents who work in the ness to play an expanded role in the Hilda R. Pemberton, chairman of where Mr. Clinton has assigned a li- aison is California, whose economy city. area, local officials said. COG and the Prince George's County Council, wrote, "The desig- has been devastated by the reces- "She's accessible, she under- "There seems to be a very clear nation of such a role within the Ex- sion. stands and knows the District, and sense that the president wants to be ecutive Office of the President will The Washington Times Mrs. Avent, 50, has spent most of she's personally connected to the a good neighbor and use the area as open a line of communication that her life in the District, where she Clintons, which will be very helpful a model of cooperation between the will be of mutual benefit to your ad- graduated from high school and has not just to the city but the region as federal and local governments," ministration and the Washington served as a Capitol Hill lobbyist for well," said Donna Brazile, an aide to COG Executive Director Ruth R. metropolitan region." Poss'b e Clinto 1 no-show angers gay march leaders By Joyce Price [Va.] that weekend," he replied. dent will issue a statement of sup- THE WASHINGTON TIMES But Miss Smith suggested the port or meet with march leaders be- Senate Democratic retreat is an in- fore leaving Washington. Leaders of the homosexual March sufficient excuse for the president's The press aide indicated he be- on Washington expressed disap- absence. "There are those who'll be lieves a statement and meeting are pointment yesterday that President attending the retreat who'll also be likely. At the same time, he flatly Clinton plans to be out of town that attending the march." she said. stated Mr. Clinton will be issuing a weekend and put more pressure on The march steering committee statement for Earth Day on April 22. him to attend. initially had a stronger response It would be a "mistake" for Mr. when it learned Mr. Clinton would be The Human Rights Campaign Clinton not to take part in the April in Jamestown the day of the event, Fund will hold a daylong leadership 25 march, the "largest civil rights saying it was "very disappointed the conference at the Mayflower Hotel demonstration in [U.S.] history," said White House has taken this position." on the Saturday before the march. Nadine Smith, march co-chairman. "We supported Clinton in his en- Roberta Achtenberg, assistant HUD "President Kennedy didn't speak deavors to get into the White House, secretary-designate, will represent at the 1963 [civil rights) march, and and he made us a lot of promises," the administration at meeting. he always considered that a big mis- according to a spokesman who On the other hand, Robert G. take. It's a mistake we don't expect stressed anonymity. "And we're very Grant, chairman of the 300,000- this president to make," she said. disappointed he won't be supporting member Christian Voice lobby, said "Unless the White House says de- us on one of the most historic days of it would be "politically unwise" for finitively [Clinton won't attend], we our movement." the president to be in the march. have expectations he'll be partici- About an hour later, however, that 'The president is already in trou- pating," she added. spokesman telephoned to say the ble and to place the official ap- The 1993 National March on steering committee changed its po- proval of the White House on a Washington for Lesbian, Gay and Bi- sition. He referred a reporter to march for sodomy would be an enor- sexual Equal Rights and Liberation Miss Smith for comments. mously offensive act on his part," Mr. is expected to draw as many as 1 Miss Smith said the position Grant said. million people to Washington. shifted because of conflicting re- Mike Russell, spokesman for Rev. Miss Smith said march leaders in ports by officials and the press over Pat Robertson's Christian Coalition, February invited Mr. Clinton to at- what Mr. Stephanopoulos said at an said, "We'd urge the president to fo- tend the event and this desire was afternoon briefing. cus on the economic turnaround reiterated in a meeting with White Due to the confusion, she said and issues affecting middle America House officials several weeks ago. march leaders would continue to be- rather than on splinter organiza- White House spokesman George lieve Mr. Clinton intends to partici- tions pushing for special rights Stephanopoulos was asked yester- pate unless they get a statement in that do not represent families and day if Mr. Clinton will be taking part. writing from the White House. middle America." "I believe he's going to be at the Sen- Mr. Stephanopoulos was not clear Rowan Scarborough contributed ate Democrat retreat in Jamestown yesterday as to whether the presi- to this report. Aspin aide upbraids major whose book supports gay ban The Times By Rowan Scarborough THE WASHINGTON TIMES CONDUCT A top assistant to Defense Secre- tary Les Aspin delivered a face-to- face rebuke to an Army major who UNBECOMING has prominently written and spoken out against lifting the ban on homo- sexuals in the military. Rudy de Leon, Mr. Aspin's special assistant, last Friday chastised Maj. Melissa Wells-Petry in the presence of a three-star Air Force general for her public opposition, according to Pentagon sources. Maj. Wells-Petry is one of the armed forces' most prominent pro- ban advocates. She is the author of "Exclusion: Homosexuals and the Right to Serve." which argues in fa- vor of the ban on medical, legal and RANDY SHILTS military readiness grounds. She is now on a publicity cam- "Conduct Unbecoming" (left) and "Exclusion" are two books about the issue. paign for the book. It was published in late March; a copy was delivered to each member of Congress. Military officers at the Defense Kilpatrick said the major followed asserting her rights of free speech. Department, who gave an account of Army guidelines in writing and pro- "She got really rough treatment," the dressing-down on condition they moting the book, and went through one department source said. not be identified, contended the inci- the public affairs office, as required, Also at the meeting was Air Force dent is a case of the Clinton admin- before granting interviews. Lt. Gen. Robert Alexander, who istration attempting to stamp out Last month, the Navy threatened heads the homosexual-issue task dissent to the president's plan to lift a lieutenant in its public affairs de- force. the exclusion rule. partment with disciplinary action Vernon Guidry, Mr. Aspin's THURSDAY, APRIL 15, 1993 "They made it plain what she was for publicly speaking in favor of the spokesman, took issue with the of doing they didn't like it," said one ban. Lt. David Quint subsequently ficers' characterization of the meet- officer familiar with the meeting. requested, and was granted, trans- ing. He said there was "no sugges- "He tried to shut her down." said fer to a non-public-relations job. tion" from Mr. de Leon "that she was another officer. "But he can't intimi- Mr. de Leon, who directed the not entitled to her viewpoint." date her." staff of the House Armed Services Asked if it was an attempt to in- Both officers noted the Pentagon Committee while Mr. Aspin chaired timidate Maj. Wells-Petry, Mr. took no similar action when women it, is the top civilian official in a new Guidry said, "It's a little late. She's officers lobbied the press and Con- 46-member task force. authored a book on the subject." gress about lifting the Pentagon ban The Pentagon group is charged Under guidelines issued earlier on women combat pilots. with finding a way to integrate this year by the Army, personnel are They also said the rebuke of Maj. homosexuals into the military. Mr. free to express views on the homo- Wells-Petry could have a chilling ef- Clinton wants the blueprint by July, sexual ban as long as they state it is fect on other officers who want to when he plans to sign an executive their opinion, not the Army's. speak publicly. order lifting the ban. Sgt. Kilpatrick, the Army spokes- The Senate Armed Services Com- Pentagon sources said Maj. Wells- woman, said Maj. Wells-Petry is free mittee is holding hearings on the ban Petry arrived at Mr. de Leon's Penta- to promote her book as long as it is and plans to elicit testimony from gon office on Friday to provide a syn- done off duty. enlisted personnel and officers. opsis of her book. "She can express her own per- Maj. Wells-Petry yesterday de- The meeting, however, soon sonal opinion and she just needs to clined to comment when asked about turned sour, with Mr. de Leon accus- make it known these are her per- the meeting with Mr. de Leon. ing the author of working against the sonal opinions," Sgt. Kilpatrick said. Army spokeswoman Sgt. D administration and Maj. Petry "She is not a spokesperson." 65 THURSDAY, APRIL 15, 1993 U.S. presses Vietnam on POW report By Bill Gertz Morris, is a Russian translation of a Vietnam Veterans Association. the post identified in the document. THE WASHINGTON TIMES secret report by Vietnamese Army "It will indeed be raised as the But U.S. officials said Pentagon Gen. Tran Van Quang to the Viet- first order of business when Gen. documents indicate Gen. Quang was The Clinton administration has namese Communist Party on Sept. Vessey gets there April 18th," Mr. deputy chief of staff of the People's asked Vietnam to investigate a 1972 15, 1972. Boucher said. Army of Vietnam from 1958 to 1974 report from Soviet archives that It states that at that time the Mr. Boucher said the Vietnamese and also was a member of the mili- says Hanoi lied about the number of North Vietnamese were holding questioned the authenticity of the tary central party committee. American POWs it was holding, the 1,205 American POWs but only ac- document but promised "to fully in- The DIA analysis, written by Rob- State Department said yesterday. knowledged keeping 368 captive. vestigate the matter." ert R. Sheetz, director of the DIA's "We did provide copies of the doc- "The number of American POWs The Vietnamese government also special office for POWs and MIAs, ument to the Vietnamese govern- in the DRV [North Vietnam] has not stated in reply to the diplomatic note stated that the number of POWs ment," State Department spokesman to this day been made public; we that Hanoi did not hold U.S. prison- "cannot be accurate if discussing Richard Boucher said. "We conveyed have kept this figure secret," the doc- ers after 1973, Mr. Boucher said. only U.S. POWs." to them the seriousness of the ques- ument states. A Defense Intelligence Agency tions that were raised by the doc- A total of 591 American POWs "DIA believes this document is re- (DIA) analysis of the document pro- ument, and we asked the Vietnamese were returned after the war; 457 of duced Monday questioned the accu- ferring both to U.S. POWs and to al- to investigate as quickly as possible." whom were repatriated from North lied POWs racy of figures of American POWs Mr. Sheetz said, not- A State Department official said Vietnam. The discrepancy would but recommended that the Vietnam- ing that the "confusion" was later the document was passed in a leave some 700 American POWs in ese supply an original transcript of probably due to an inaccurate trans- note to the Vietnamese mission to North Vietnamese captivity after lation. Gen. Quang's report. the United Nations in New York on the war. In Hanoi, a Foreign Ministry offi- Mr. Sheetz said the 1,205 figure Monday, following news reports dis- Mr. Boucher said retired Army cial said the document was a "fabri- "grossly overstates" the number of closing the existence of the Soviet Gen. John Vessey, who will hold talks cation." Americans who survived captivity military intelligence (GRU) report. on the POW issue in Hanoi next Ha Huy Thong, deputy director of until late 1972. He also said a review The GRU document, uncovered in week, would seek to question di- the Americas Department, told the of all unaccounted-for POWs "leaves Moscow archives three months ago rectly Gen. Quang, a former deputy Associated Press that Gen. Quang only 92" persons who may have sur- by Harvard researcher Stephen J. chief of staff who is now head of the held a different position in 1972 than vived after the war. The Washington Times THURSDAY, APRIL 10, 1995 The Washington Times down from outer space. This one's Former Rep. Barber B. Conable, Capitol for repairs. NATION not for you, say irate scientists and EXECUTED IN ARIZONA a New York Republican, retired The Capitol's architect, George environmentalists, outraged at a from Congress in 1985 and finished White, wants to remove the statue proposal for a space billboard by Execution site: Arizona State Penitentiary in Florence at 2:07 a.m. EDT. a five-year term as president of the in May so it can be repaired and re- 1996. Somebody's going to do it, Method: Lethal injection. World Bank Group in 1991. stored. He asked for use of a Na- says the engineer for the billboard project, and the United States Crime: James Dean Clark, 35, was convicted of killing Elfrida, Ariz. Wesley Samuel Williams Jr. is a tional Guard helicopter, but Deputy might as well be the first. dude-ranch owners Charles Thumm, 65, and his wife, Mildred, 62, and two partner in the Washington law firm Secretary of Defense William ranch hands, George Martin, Jr., 51, and Gerald McFerron, 17, on Dec. 4, of Convington & Burling. Perry said a commercial helicopter Page A1 1977. After a night of drinking, Clark fatally stabbed Martin, who was Mr. Gray, Mr. Conable and Mr. service should be used instead. Clinton considers sleeping, and and shot McFerron to death. Then he fatally shot the Williams will begin six- The 20-foot, 15,000-pound statue value-added tax Thumms and stole their car, which he loaded with their personal property month terms next month. of a woman holding a sword Sinatra mentioned before driving to El Paso, Texas. He was arrested four days later in El Paso. New members of the 17-member and shield was placed on top of the The White House shifted gears by mobsters in tape Appeals: U.S. Supreme Court rejected two late-hour appeals, in 7-2 board, the Smithsonian's governing 300-foot high dome in 1863 with yesterday on a national sales tax, or votes. body, must be nominated by the ropes and pulleys and has value-added tax. The switch is NEW YORK - Three reputed The numbers: He was the third person in Arizona, and the 198th board and approved by Congress. never been taken down. It has been likely to hinder the administration's mobsters were on trial, but Frank nationally, to be executed since the high court in 1976 allowed resumption President Clinton signed congres- struck several times by lightning chances of winning the support of Sinatra momen- of the death penalty. sional resolutions approving the and is corroded in spots. Republican senators for President tarily stole the nominations Monday. Clinton's economic package. Hil- show. His name The Washington Times lary Rodham Clinton's task force is came up in a se- Buttafuoco indicted considering the tax as a possible cretly taped care of elderly people during their who arrived in December and Scientists find ancient, way of paying for a national health conversation last year of life, a study found. whose ceremonial acceptance was significant bird fossils on 'Lolita' rape charge care program, said White House that the govern- This figure has changed little left by President Bush to the ad- MINEOLA, N.Y. Joey Butta- spokesman George Stephanopoulos. ment placed in since the late 1970s. Contrary to ministration with which he would NEW YORK - The discovery of fuoco was indicted yesterday on Page A1 evidence. some speculation, the cost of dying serve. two ancient bird fossils has charges of statutory rape by a In the tape, does not appear to be driving up The others were ambassadors strengthened evidence that birds grand jury that alleged Amy Fisher San Francisco top cop Sinatra Lorenzo Man- the nation's medical bills faster from Mali, Lesotho, Kuwait, evolved from dinosaurs and raises was 16 when their sexual involve- nino asks than other kinds of care. Mexico, Jordan, Sweden, Latvia, new possibilities about the evolu- ment began, court sources said. linked to spy ring Giuseppe "Joe" Gambino if he The review was conducted by Austria, Azerbaijan, Israel and tion of flight, a scientist for the Mr. Buttafuoco, 36, will surren- would "talk to Frank Sinatra James D. Lubitz and Gerald F. Tom Gerard, a San Francisco po- Qatar. American Museum of Natural His- der to police in Mineola this morn- [about] getting a few jobs for Al lice intelligence officer who earned Riley of the Health Care Financing The Washington Times reported tory said yesterday. ing to be fingerprinted and booked Martino in Las Vegas." Administration in Baltimore. It was the nickname "the Weatherman" last week that the diplomatic com- A report on the discovery is to before he is arraigned at the Nas- "Sinatra can't stand Al Martino, for his forecasts of gang violence, published in today's New England munity had been grumbling appear in the British scientific sau County Courthouse, the Joe," he says. Mr. Gambino re- Journal of Medicine. about the delay, which then in- journal Nature today. is off the force and in the Philip- sources said. sponds: "Yeah, I know." The study found that medical volved 20 "ambassadors-appointed," A joint American-Mongolian pines after being implicated in Mr. Buttafuoco, an auto me- Mr. Martino appeared in the costs in the last year of life rose as the diplomats are called until team of scientists found the new a ring that spied for the Anti- chanic, has repeatedly denied hav- movie "The Godfather" as singer Defamation League of B'nai B'rith from an average of $3,488 in 1976 credentials are presented to the type of dinosaur, named Monony- ing an affair with the teen-ager and Johnny Fontane, a character many to $13,316 in 1988. head of state. Mr. Clinton had ac- chus, in the Gobi Desert where the and South Africa on people and claims he only shared a pizza with believe was meant to suggest Mr. researchers are conducting a four- groups considered anti-Jewish. A cepted no credentials during his her. Sinatra. first 12 weeks in office. year expedition. city investigation has led to a law- Fisher, now 18, claims to have Mr. Mannino, Mr. Gambino and Clinton receives suit by the spies' subjects. had a long sexual involvement with his brother, Giovanni, are being Page A1 tried on charges that they engaged envoys' credentials Smithsonian names Pentagon says it him. She shot Mr. Buttafuoco's wife, Mary Jo, in the face May 19, in racketeering, murder and drug President Clinton last night re- trafficking while working for the ceived credentials from 12 of the 3 regents to board won't remove statue leaving her with a partial paralysis Environmentalists decry University of Chicago President The Defense Department yester- of her face and hearing loss. She is Gambino crime family. 20 new and not-so-new ambassa- proposed space ads dors who have been waiting for Hanna Holburn Gray will join a day turned down a congressional serving five to 15 years for the Study finds costs months to formally begin their dip- former congressman and a promi- request for a military helicopter to shooting at an upstate New York Imagine gazing one clear night lomatic service here. lift the 130-year old Statue of Free- prison. at the stars and planets, when the of dying little changed nent Washington lawyer as new The first to be received at the dom from the dome of the U.S. members of the Smithsonian Insti- From wire dispatches and staff reports heavenly vista is interrupted by a BOSTON - Nearly 29 percent of traditional closed ceremony was tution's Board of Regents, the mile-long beer billboard beamed all Medicare funds are spent taking Ricardo Luna Mendoza of Peru, Smithsonian said yesterday. Laid an egg continued the shareholder, "and INSIDE THE this is a relevant question about "Dear President Clinton and how you get the news - and why, Family," said the letter dated April BELTWAY by the way, did the Times Washing- 12, sent to the White House (with a ton bureau get scooped by The copy to us) by six children from Washington Post with regard to nearby Silver Spring. Senator Packwood?" "Today we went to the Easter John McCaslin "Well," Mr. Sulzberger offered The Washington Times Egg Roll. We got there around 9:50 after much thought, "we scoop The a.m. and got into a very long line. Washington Post more than they After we got onto the White in on the meeting, which included scoop us." House lawn it was after 2 p.m. this incredible exchange between a and then found out you had run out shareholder and Mr. Sulzberger, a of eggs. balding man in his mid-60s with an Wrongway DeSarno "The Turnhams cousin (Miranda Ivy League voice and the capacity Imagine filling the shoes of Todd) came all the way from Ten- to charm the fuzz off a peach - not James V. DeSarno, FBI special nessee for Easter and your Easter to mention soothe enraged share- agent in charge of the criminal di- Egg Roll. She didn't get an egg. We holders. vision at the Washington field of- are really angry. "John Crewdson, who used to fice. He and his G-men handle "Sincerely work for the New York Times," be- everything from murders to cap- "P.S. We think we should get an gan one shareholder, "told me how turing armed fugitives. In this egg or an apology. Our parents amazing it was that his old paper crime-filled metropolis of ours, voted for you and we are disap- was now permitting Jeffrey you'd soon need a vacation, right, pointed!" Schmalz, who has AIDS, to cover or perhaps an out-of-town junket? this story for the paper. Crewdson On March 5, Agent DeSarno ar- recalled the old Abe Rosenthal rived early at National Airport, No queer nation quote: 'I don't care if my reporters bound for a vacation in Florida. He copulate elephants. But if they do, went to the departure gate, took a We reported yesterday how ten- they can't cover the circus.' seat, relaxed and waited. A plane nis great Martina Navratilova "I recall that Laura Foreman of soon pulled up and the FBI agent charged that "every family has gay your Washington bureau was fired proceeded to board. Comfortably persons in it," citing as examples when it was discovered that while seated and buckled in, it wasn't un- families of Sens. Sam Nunn, Jesse she was a reporter for the Philadel- til the last second that he learned Helms and Robert Dole, and the Martina Navratilova finds the Rev. phia Inquirer she had covered the he'd gotten on the wrong plane. Revs. Pat Robertson and Jerry Fal- Pennsylvania State Legislature Luckily, airline officials got him well. Jerry Falwell no love-love pushover. from the vantage point of the bed onto the right plane before the The last named, for one, is not of a virile state senator from South wrong plane departed. amused. We're still waiting to hear a lesbian tennis player," said Mr. Philadelphia. There was also Pa- On March 28, Agent DeSarno ar- from the other ones. DeMoss. rade magazine's report that Con- rived early - an hour early - at "While I cannot speak for all of Last fall, Mr. Falwell received a gressman Les Aspin was sleeping Washington Dulles International the families of those listed above, I package containing HIV-infected with a female member of the Airport. He couldn't miss this can and do speak for Jerry Falwell. urine and a letter, signed by Queer Times' Washington bureau, who, flight since he and his boss, Robert We would demand that you substan- Nation, warning that if the urine after this was asked about at press "Bear" Bryant, special agent in tiate this statement with regard to didn't kill him, "we will kill you." briefings at the White House and charge of the Washington FBI of- Jerry Falwell, or provide public re- John Woods, a spokesman for the State Department, was, as I fice, were traveling together to Las THURSDAY, APRIL 15, 1993 traction," Falwell spokesman R. Queer Nation in San Francisco, understand, transferred to Cairo. Vegas for a weeklong conference Marc DeMoss wrote to the National said that while he didn't know any- "So I am wondering, Mr. Chair- dealing with Asian organized Gay & Lesbian Task Force, on thing about the death threat, it man, why such action was taken crime. whose behalf Miss Navratilova sounds like a great idea to me." against normal heterosexual Mr. Bryant got to the airport made her remarks. women, while Schmalz is allowed to early as well. He wondered where "Surely Martina Navratilova The other Times go on covering the AIDS- Agent DeSarno was. Mr. Bryant fi- does not presume that just because homosexual beat, about which he nally had to board the plane, alone. she is a proud lesbian, every family The annual shareholders meet- can hardly be regarded as either As for Agent DeSarno, he was at in America has gay and lesbian ing of the New York Times was objective or a disinterested party?" the other end of the airport, wait- members. Fortunately, studies held this week, and company Chair- The chairman said he wouldn't ing at the wrong gate. Soon he was [that] have found the homosexual man Arthur Ochs "Punch" Sulzber- speculate on that. Sounding an- sprinting the entire length of the population to be between 2.5 and ger Sr. was on hand. One of the noyed, he added, "After all, this is a concourse to the right gate. Both 2.8 percent have more credibility shareholders, Washington journal- business meeting." the plane - and his boss - that a fund-raising letter signed by ist Les Kinsolving, agreed to fill us "But this is the news business," were gone. Yeltsin will ask Rutskoi to resign; coup trial opens openly squabbling with his vice By Gerald Nadler THE WASHINGTON TIMES president seemed incongruous, the start of the trial of the alleged 1991 MOSCOW - Boris Yeltsin said coup plotters yesterday, 17 months yesterday he will ask for the resigna- after the failed putsch, bordered on tion of his constant critic, Vice Pres- farce. ident Alexander Rutskoi. The defendants marched through "Ethically, I must tell him this not the streets at the head of a column in public, but privately, and this is of mostly elderly communist sup- what I shall do," Mr. Yeltsin said at a porters with red flags, ended their Anatoly Lukyanov waves to supporters yesterday on the way to his trial. news conference. The Russian pres- procession at the door of the Su- ident said his face-to-face meeting preme Military Court, entered the with the Afghanistan war hero could chambers and walked right into the take place as early as today. dock. Mr. Yeltsin also said that if he wins Instead of an open proclamation the April 25 referendum, he will be- that they had acted as patriots to gin the next day "to neutralize" any save the Soviet Union, the 12 defen- obstructions by parliament. dants used legal maneuvering, say- The referendum in 10 days will ing only a court of the now-defunct ask voters four questions: Do you Soviet Union could try them. have confidence in the president? When the claim was turned down, Do you approve of his policies? Do the lawyer for defendant Alexander you want him to stand for re- Tizyakov, former president of Soviet Kryuchkov Yanayev Paviov Lukyanov election? Do you want balloting for a state enterprises, said his client felt new parliament? ill, and the proceedings were ad- COUP PLOTTERS ON TRIAL Mr. Yeltsin hinted last week that if journed for the day. The 12 men accused of plotting the falled August 1991 coup against voters show confidence in him and The defendants, including former the government of Soviet President Mikhall Gorbachev. vote to hold parliamentary elections, Vice President Gennadi Yanayev, are he will declare presidential rule and charged with treason, attempting to Viadimir Kryuchkov, 69, was chairman of the KGB. Gorbachev called order elections. usurp power and exceeding their him the mastermind of the coup. If voters disapprove of his rule, he authority. If convicted, they could Gennady Yanayev, 55, was vice president of the Soviet Unioof the said, "the president will step down." face the death penalty or up to 15 self-proclaimed State Committee for the State of Emergency, which seized Yesterday, he said if elections are years in prison. power. needed for president and parlia- Defendant Anatoly Lukyanov, for- Valentin Paviov, 56, was prime minister. According to investigators, he ment, the balloting should be held in mer chairman of the Supreme So- was so drunk on the second day of the coup that a Kremlin doctor was the fall. viet, said the proceeding will be called to treat him. Mr. Yeltsin's bold declarations left turned into a political trial. Anatoly Lukyanov, 62, was chairman of the Soviet parliament and had the confused Russian political scene In a dramatic moment on the Rus- been a friend of Gorbachev's since law school. He wrote patriotic poetry murkier. sian TV evening news, announcer while in prison. Mr. Rutskoi, who was elected with Svetlana Sorukina said, "I want to Gen. Dmltry Yazov, 69, was defense minister. He told investigators he Mr. Yeltsin in June 1991, said he has express my opinion." began having second thoughts soon after the coup was launched. no intention of being forced out. She said the members of the Oleg Shenin, 56, was a Politburo member and might have replaced "I will stay until the finish," he "Emergency Committee" should be Gorbachev as Communist Party leader. He recently was elected head of said in a televised interview. tried for causing the deaths of three the newly revived Union of Communist Parties in the former Soviet But Mr. Yeltsin appears almost as innocent persons Aug. 20, 1991. That republics. obsessed with ridding himself of Mr. was the most dramatic day of the Rutskoi as with getting a new parlia- Gen. Yurl Plekhanov, 53, was head of KGB presidential security. coup, when three young men were ment and a new constitution. By crushed to death by an armored ve- Gen. Vyacheslav Generalov, 47, was Plekhanov's deputy. holding elections this fall, Mr. Yel- hicle. Gen. Viadimir Varennikov, 69, was head of Soviet ground troops and tsin could simply dump his vice The opening of the trial 11 days was sent to the Crimea to tell Gorbachev he had been ousted. president in favor of another. before the referendum is expected Oleg Baklanov, 61, was deputy chief of the state defense council and a That would force Mr. Rutskoi, 44, to inflame the passions tearing at the representative of the military-industrial complex. the leader of the Democratic Party country. If the defendants persist in of Free Russia, to run against Mr. Alexander Tizyakov, 67, headed an association of state factories. entangling the trial in legal details, Yeltsin in an election that the pres- their refurbished image as patriots Vasily Starodubtsev, 62, headed a group of collective farm leaders. ident believes he would win easily. may fade fast and make Mr. Yeltsin Source: Associated Press If the spectacle of a president more attractive in the national vote. The Washington Times machinaton Times THURSDAY, APRIL 15, 1993 68 Go-Round Merrie Morris Party patter: Among sup- posedly more substantial issues raised during Dee Dee Myers' press briefing Tuesday came the question of state dinners - as in there haven't been any. Princess Diana Q: When is President Clinton] going to have a state visit? I mean, would just love it if Di could visit we kind of miss the fife and drum New York next month on behalf of corps. the financially shaky American Miss Myers: Soon. But you can Ballet Theatre. only have one state visit per coun- And since she'd be here anyway, try per administration, so we don't Harvard University has invited want to spend them all upfront. Diana to Boston to speak on AIDS, Q: Who gets the first one? a cause with which she's closely Q: What's it going to be? Zim- identified. And then she can just babwe? (Laughter.) hop a shuttle and drop by Washing- Miss Myers: Helen [presumably ton to see if the White House will UPI's Helen Thomas], we thought treat her better than it did hubby we'd let you pick. So why don't you Prince Charles. let us know what country you'd like News reel: Michael Jackson us to start with? (Laughter.) continues in his campaign to over- Tax relief: The new Capitol whelm the country's consciousness. Grille in Arlington's Courthouse This time he appears with newly- Plaza is doing its bit to get in the wed Eddle Murphy in Eddie's eco- president's good graces. The res- logically inspired video "Whatzup- taurant will donate $10.40 from ev- witu." The video debuts at 8:58 ery table check today - and today (now how's that for precise?) to- only - to the Bureau of Public night on Fox TV, MTV and Black Debt's Debt Reduction Fund. Entertainment Television. Hollywood on Potomac: The Rolling Stones waived royalty rights to their '60s classic The city is already gearing up for "Gimme Shelter" and donated a Julia Roberts and Denzel Washing- previously unreleased version of ton to start shooting "The Pelican Brief" here in mid-June. Auditions the song to a British charity for the for small parts are today at Arena homeless. Putting Our House in Or- Stage, but don't bother showing up der plans to put out several ver- without an appointment. Everyone sions of the song in England. No plans for a U.S. rerelease yet. wants a piece of this action. On the weirder side, that was Kathleen Turner shooting John Wa- ters' latest, "Serial Mom," in Glen Burnie yesterday and Tuesday. It's hard to miss local lawyer turned actor Steve Aronson on "An- other World" today. He's the umpire gone berserk at Wrigley Field. Tiara boom: The world's No. 1 cover girl soon may grace our shores. The New York Post reports that none other than Jackle Onas- sis is lending her name to an invita- tion to Princess Diana. Jackie Julia Roberts The Washington Times THURSDAY, APRIL 15, 1993 69 SUZANNE FIEL S F E DS From page Gl Unwed turned to school. compared to about a third who did not. Such percent- ages demonstrate promise. What's striking is that so many bonus teen-agers who would earn extra money decided to forego the bonus and accept the penalty rather than go to school. strategy It tells us that $62 doesn't mean much to many teen-age mothers, not enough to go to school. Some teen- age mothers probably have other oney talks. It talks to the means of hidden support from their M rich and it talks to the families and even the fathers of their poor. But it has a differ- children. Many of these young ent vocabulary for rich women never learned the value of and poor. A prosperous father promises his education. The incentive approach to wel- teen-age daughter a dollar for every fare is benign, and a 10 percent in- "A" on her report card. Welfare crease in teen-agers who will gradu- strategists use similar strategies to ate from high school makes it worth keep teen-age mothers in school. doing. But behaviorist approaches to A welfare program in Ohio, for welfare and education suffer from example, fattens the welfare check the same problem critics of B.F. by $62 each month that a teen-age mother stays in school or returns to Sen. Moynihan wants school after dropping out. But, like birth to children out of wedlock the father who docks a child's allow- even more incentive soared. The stigma of unwed moth- ance for bad grades, teen-age moth- erhood evaporated, too. The rise in ers who quit school or who have programs for welfare unwed mothers accounts for more more than two unexcused absences suffer a welfare check cut of $62. recipients. than 70 percent of additional welfare families between 1987 and 1991. B.F. Skinner, the behaviorist who Sen. Pat Moynihan of New York, pushed rewards and punishments as Skinner identified when they ap- godfather of welfare reform, wants a powerful means for changing be- plied his theories to many other hu- even more incentive programs for havior, would appreciate this imagi- man endeavors. They don't get to the welfare recipients. He's especially native public boxing of his theory. root of problems. Whether meas- troubled by the way our society has An Ohio teen-age mother with one ured in dollars or sense, such incen- "normalized" deviancy, and worries child, who is eligible for a monthly tives are superficial. that society accepts increasing num- grant of $274, soon learns that she Thirty years ago, welfare agen- bers of deviant behavior as normal. can earn as much as $336 a month if cies became moral regulators, re- Unwed motherhood, in this sce- she attends school, and as little as fusing to pay an unmarried woman nario, has been normalized. What $212 if she doesn't. with a man in her house. The state was once shocking has become com- The acronym for the Ohio pro- became the husband who looked for monplace. What was once shameful gram is Leap for "Learning, Earning cheaters under the bed, sending out is now celebrated. An attempt to turn and Parenting," and emphasizes the snoops at all hours to ensure the up- incentives around can't hurt, but un- benefits of a high school education rightness of the welfare recipient. til we redefine social standards and - hope for a better job. Leap also The law of unintended conse- revive social stigma for hurtful be- shows that discipline and learning quences let men off the hook alto- havior, nothing else is likely to make much of a difference. can pay-as-you-go. Not everybody takes advantage did. gether. Marriage didn't pay. Only sex Harsh, maybe, but true. Money of the program. Stigma disappeared. The num- talks. But those who take it often talk In a six-year study of more than bers of welfare mothers who gave hear. back, and we may not like what we 7,000 teen-age mothers, the Man- power Demonstration Research Corp. of New York found 61 percent - 10 percent more teen-agers - stayed in school when they earned the bonus, compared with 51 per- cent in a control group who did not. Nearly half of the teen dropouts who received economic enticements re- see FIELDS, page G4 Suzanne Fields, a columnist for The Washington Times, is nationally syndicated. The Washington Times THURSDAY, APRIL 15, 1993 70 FRANK GAFFNEY JR. f a Republican filibuster in the I Senate has brought to an early end President Clinton's honey- Secret reports moon on domestic policy, the Clinton ship of state has been no less severely rocked by two powerful mines struck while navigating the rocking the boat often-treacherous waters of interna- tional affairs. While at this point, the full extent of the damage done to the not enough to provide food and medi- group's assessment of the United administration's program by the re- cine to the victims of Serbian ag- States' options. cent revelation of two heretofore se- gression. What is killing and maim- Regrettably, this subterfuge cret reports can only be surmised, ing them is artillery shells and other seems of a piece with other recent weapons fire, not malnutrition. Clinton decisions toward the former its credibility concerning - and therefore the prospects for effec- The report concludes, accord- Yugoslavia - notably, his acquies- tively managing - the crisis in Bos- ingly, that what is needed are "safe cence to Russia's insistence that fur- nia and U.S. policy toward Vietnam havens," which can of course only be ther action on tightening the sanc- has unquestionably been seriously made safe by deploying ground tions against Serbia, to say nothing eroded. forces and air cover for protection. of lifting the Bosnian arms em- bargo, be postponed until after April The first report was one pre- As this position is inconsistent with pared at the administration's re- President Clinton's current determi- 25 (the date of Boris Yeltsin's ref- quest by a 26-member government nation to avoid committing troops to erendum). Such actions have the ef- team. The group had been sent to the conflict in Bosnia, the adminis- fect of signaling to Belgrade that its Bosnia to evaluate what could be tration's reluctance to disclose this predations in Bosnia may continue done swiftly to alleviate the suffer- finding is understandable. unchecked; that there need be no ing of innocent civilians there. Not What is not acceptable, however, fear of meaningful Western inter- surprisingly, the officials from the is the fact that, when the fact-finding vention to defend the innocent, let State, Defense and other depart- team was authorized to relay its con- alone to punish the aggressor. ments concluded the obvious: It is clusions to the Congress last week, The second report was discov- the Clinton administration in- ered in February in the archives of structed the briefers to delete any the Soviet Union's military intelli- Frank J. Gaffney Jr. is the director reference to their central recom- gence unit, the GRU. It details a 1972 of the Center for Security Policy, the mendation. As a result, members briefing by Gen. Tran Van Quang, host of public television's "The World were given a seriously misleading the then-Deputy Chief of Staff of the This Week" and a columnist for The picture of the situation on the Washington Times. ground and misinformed about the see GAFFNEY, page G4 GAFFNEY Unfortunately for the Clinton ad- special committee on POW-MIA af- ministration, as with the Bosnia re- fairs and successive U.S. administra- From page G1 port, the revelation of this explosive tions have used to cover up evidence document comes at a particularly in- of North Vietnamese bad faith and North Vietnamese Army to his coun- opportune time. It had just an- official American guilty knowledge try's Communist Party Politburo nounced that Gen. John Vessey, the of the same. concerning the exact number of former chairman of the Joint Chiefs Still, the existence of the Quang Americans captured by Hanoi dur- of Staff who had been appointed report - like the true character of ing the Vietnam War. Gen. Quang President Bush's special emissary to the Bosnia study - should make it helpfully breaks out the POWs by Vietnam, was going to return to Ha- more difficult for the Clinton admin- rank, by location of capture and by noi next week. The object of the Ves- istration to perpetrate the ap- attitude toward the war - from sey trip was transparent: to finalize peasement policy it had in mind. The "progressive" (that is, apologetic) to the whitewash of North Vietnam's real question is this: Will President "reactionary" (read, defiantly sup- prevarications about American Clinton continue to ignore the com- portive of the war effort). POWs and MIAs SO as to clear the mitments to democracy, to opposing decks for normalized bilateral trade totalitarian oppression and to resist- Most importantly, the report con- and diplomatic relations. ing its aggression that he made re- firms what many have long believed: Now, we are told, the Quang re- peatedly during the campaign? Hanoi in 1972 held 1,205 American port will be the first item discussed If so, he will presumably persist prisoners of war, three times the between Gen. Vessey and his Viet- in trying, despite these setbacks. to number it has previously disclosed namese interlocutors - who have al- abandon those aspiring to peace and and 614 more than it permitted to be ready denounced it as a fabrication. freedom in Bosnia, Vietnam and be- repatriated at the end of the war. It Doubtless, a concerted effort will be yond. In the process, he will inevita- is, in the words of Stephen Morris, made by Hanoi and its friends in the bly further desecrate the memory of the Harvard researcher who discov- United States to discredit this doc- those Americans and others who ered the document, the "smoking ument. Indeed, its troubling disclo- have not simply paid lip-service to gun" long sought in connection with sures will probably be swept under such ideals but have given their lives the POW-MIA issue. the same rug that Sen. John Kerry's to defend and promote them. The Washington Times THURSDAY, APRIL 15, 1993 71 CAL HOMAS HOM AS From page G1 Agony Mr. Brock notes that Miss Hill Brock dismantles every statement, denied the sworn testimony of Carl- offering names of numerous wit- ton Stewart (former special assis- nesses and/or Miss Hill's own con- tant to Clarence Thomas at the Equal bathed in tradictory statements to dismantle Employment Opportunity Commis- her contentions. sion) and Stanley Grayson (former Mr. Brock reminds us that every- deputy mayor of New York City) that one who worked with and knew both she said Justice Thomas deserved rays of Clarence Thomas and Anita Hill be- the nomination. Miss Hill offered a lieved Justice Thomas, not Miss Hill. misleading account of how she got Those with political scores to settle her teaching job at Oral Roberts and who knew neither Miss Hill nor reality University. Because the alleged sex- Justice Thomas skillfully turned ual harassment is supposed to have what should have been a hearing that occurred behind closed doors with focused on background, writing and just the two of them present, there evidence into a political show trial on will never be a "smoking gun" doc- H e still talks about it. He the issue of sexual harassment. In a ument or third-party witness who brings it up without courtroom, such an attempt would will persuade everyone who is tell- prompting. The public have been deemed immaterial, and ing the truth. So we have to look at lynching of Clarence objections would have been sus- the character of those involved, and Thomas, 18 months ago, continues to tained. But a show trial permits any- Mr. Brock does this with the thor- occupy much of the Supreme Court thing that helps make the point those justice's thinking. But a visitor has oughness of an FBI agent conduct- holding power want made. the impression that it is more than a ing a background check. Miss Hill could not find a single gnawing personal pain. To be called corroborating witness to back up It was suggested during the hear- a sexual harasser and hear words her charges. During the time she al- ings that Miss Hill should be be- attributed to you that you never said leged Justice Thomas was sexually lieved over Justice Thomas because - words that harassing her, Mr. Brock writes, she had nothing to gain and he had would have "Hill complained that Thomas 'did everything to lose. But since the crushed the nuns not even notice me'; she portrayed hearings, Anita Hill has enriched who taught you, him as the 'ideal boss' who was par- herself with speeches at a reported and the grandfa- ticularly respectful of women em- $10,000 a pop. She refuses all ques- ther who reared ployees; and she asserted he would tions about her testimony from audi- you, and the wife 'make a great father' ences and the press. Given her con- and children who Are these the words of someone tradictory statements and the fact love and respect who feels sexually harassed? If Miss that more than a dozen credible wit- you - is some- Hill was afraid of losing her job nesses with reputations of integrity thing you can (which Mr. Brock debunks, saying would have had to perjure them- never forget. Jus- Clarence Thomas she had job security and knew it), selves in order to testify in favor of tice Thomas obviously believes he she might have made lukewarm Justice Thomas, it ought to be clear was done a grave injustice. comments in favor of Thomas, but to fair-minded people, who are inter- those she did make went above and ested in the truth instead of scoring Of greater concern to him, beyond generalities. They are words political points, that Clarence though, is the effect his experience has had on the Supreme Court and of conviction, not pragmatism. Thomas suffered cruel and unusual on the nation's dwindling respect for Miss Hill testified she had agreed punishment he did not deserve. law and the legal system. when making her complaint to the In addition to vindicating Cla- Judiciary Committee that Justice rence Thomas, the book also sup- But now, like the convict wrong- Thomas could be told her name. In ports the prosecutorial tactics of Re- fully accused who is set free from an fact, says Mr. Brock, she did not. Mr. publican Sens. Arlen Specter of unjust sentence, Clarence Thomas Brock also notes that when the Jus- Pennsylvania and Alan Simpson of can see the light of vindication. It tice Department suggested Miss Wyoming, who were denounced at comes in a new book by David Brock titled "The Real Anita Hill: The Un- Hill as a possible witness in Justice the time for not "getting it" in their Thomas' favor, before Miss Hill relentless pursuit of the truth. told Story," a portion of which has been excerpted in the Wall Street made her charge, Justice Thomas The press, especially television, Journal. thought it was a good idea. Even has an obligation to give Mr. Brock after the charge, Justice Thomas re- and his book the saturation coverage It takes every charge leveled by fused to withdraw from the nomina- they deserve. Anita Hill was never Miss Hill during those riveting hear- tion. Is this the behavior of a man held accountable for her remarks ings and destroys them (and her with something to hide? and continues to profit from them. credibility) one by one. She has become a high priestess in Revisiting each allegation Miss the cult of feminist male-bashing. Hill made during the Senate Judi- Those who believed Anita Hill ciary Committee hearings, Mr. based on her testimony need to read this book and then offer Clarence see THOMAS, page G4 Thomas an apology. Cal Thomas is a nationally syndi- cated columnist. The Washington Times THURSDAY, APRIL 15, 1993 72 LEONAR LARSEN Senate's tacked federal prosecutors for lodg- ing the indictment against him. The grand jury's action in sub- mitting a felony charge, Mr. Duren- buddy berger asserted, resulted not from his own misconduct but from "the unfettered ambition of bureaucrats who have spent millions of taxpayer system dollars to find a nonexistent needle in the haystack of facts surrounding this case." The needle in the haystack was en. Dave Durenberger, a man not so difficult for the Senate Ethics S most other senators see as an Committee to find three years ago, able lawmaker and a fine and it was plain enough then for Mr. friend, is what's wrong with Durenberger to admit to. the U.S. Senate and its poisonous What he'd done, almost all parties palsmanship. agreed, was set up a false front to In 1990, the full Senate should make it appear he did not really own have expelled the Minnesota Repub- a condo he owned in Minneapolis. lican for what amounted to theft of That way, he stayed in what was ac- government funds. His shame de- tually his own property on visits served that. from Washington and he billed the Instead, members of the Senate, Senate for rental expenses - an some of them moved to tears, issued amount reported at more than a strong wrist slap for Mr. Durenber- $39,000 during the run of Mr. Duren- ger's shady dealings, which had berger's scam. been described by the Senate Ethics At the time of his denouncement Committee as "reprehensible" and by the Senate, Mr. Durenberger had, "clearly and uneqivocally uneth- in effect. admitted his guilt and had ical." The Senate's formal punishment, by a 96-0 vote, was to adopt a res- olution denouncing Mr. Durenber- The Senate obviously ger for shenanigans that, the res- olution said, brought "dishonor and finds it easier to disrepute" on the Senate itself. punish the entire The then-chairman of the Ethics Committee, Sen. Howell Heflin, Ala- nation with their bama Democrat, said of Mr. Duren- berger that "the evidence of know- collective legislative ing and willful misconduct is clear misdeeds than to and convincing." Mr. Durenberger, who accepted punish each other. without protest the punishment of denouncement from his fellow Sen- ate clubmen, said at the time one of repaid $11,000 in the bogus billings. his regrets was the "extra burden The Senate said he should repay an- my misconduct has placed on each other $29,000 before the books of you." For television, Mr. Duren- would be clear. berger said that only three words The trouble with the long unrav- were appropriate: "I am sorry." eling of the Durenberger case and All that was then: July 25, 1990. the trouble for all Americans is that Now, though, to hear Mr. Duren- most of the senators - Democrats berger's response to a recently re- and Republicans - are such dear turned criminal indictment arising friends in the club that they are un- from the same charges and accusing able, even paralyzed, and prevented him of false claims for reim- from doing the right thing. bursement of expenses, all that They can quarrel over politics - never happened. currently whether and how much President Clinton's budget requests The indictment, which covers will be changed - but the Senate only a part of the broader accusa- obviously finds it easier to punish tions made against Mr. Durenberger the entire nation with their col- during the probe by the Ethics lective legislative misdeeds than to Committee, was "groundless," Mr. punish each other. Durenberger said, adding for good Mr. Durenberger is not the first. measure that "these allegations are In 1981, Sen. Harrison Williams, completely false." New Jersey Democrat - another As if submitting proof that there nice guy liked by everyone - was are absolutely no limits on the hy- indicted and convicted of taking a pocrisy of high office, Mr. Duren- bribe. The Senate was only getting berger - denounced by the Senate around to considering his expulsion three years ago for "reprehensible" when he resigned. actions and so contrite that he Mr. Durenberger can still count apologized to colleagues for the "ex- on palsmanship. Sen. Bob Dole of tra burden of my misconduct" - at- Kansas, the Republican minority leader, said after the indictment that, "I have every confidence that Leonard E. Larsen is a columnist Dave Durenberger will be cleared of for Scripps Howard News Service. these old charges." The Washington Times THURSDAY, APRIL 15, 1993 73 MIKE ROYKO Los Angeles TICK TICK TICK VERDICT ometimes there is just no S pleasing people. Word vocative: 52 dead bodies and dozens of burning buildings. A few days ago, the police Considering the death toll of the chief in Los Angeles was be- last L.A. riot, I don't know how any- ing interviewed on public radio one can consider a large police and about his strategy for preventing an- other big riot. games National Guard presence provoca- tive. His strategy includes putting a Mr. Chavis says it reminds him of lot of police on the streets before the in L.A. preparations for Desert Storm? Rodney King verdict comes in. Fine. If I were in charge of de- The reporter asked him if such a flecting a possible riot, I would con- show of force wouldn't be seen by sider that the minimal desired ef- some people as a "provocative" act. my dictionary says means: "To ex- fect. If anything, I would want my Instead of saying, "You are a cite to some action or feeling; to an- preparations to make people think of screwball, and I don't talk to screw- ger, irritate or annoy; to stir up; to Gen. Dwight Eisenhower, talking to balls," and ending the interview, the call forth, evoke." the troops before the invasion of police chief had to patiently explain I'm not sure what Mr. Chavis or Normandy, or Gen. George Patton, that, no, he wasn't putting cops on that public radio reporter find "pro- stirring the blood lust of his tank the streets to cause trouble: he was vocative" about the police and Na- divisions. doing it in hopes of preventing trou- tional Guard presence. Only one thing discourages riot- ble. About a year ago, the first trial of ing. It is the possibility of swift, firm The reporter didn't sound totally Rodney King took place. The jury and remorseless bodily harm. For convinced. Maybe the police chief found the cops not guilty of undue all the media and political talk about should have said he was going to put zeal in flailing him. the motives of rioters, nobody can be 1,000 sociologists on the streets to (Had I been a juror, I wouldn't sure why people riot. gather statistics on frustration, have voted to acquit. One of the cops Yes, when the Rev. Martin Luther hopelessness and the need to enter seemed to be far too enthusiastic. I King Jr. was murdered, riots broke stores through the display window. admired his swing, which appeared out all over urban America, and it Then there are the concerns ex- as compact and powerful as that of was probably a collective outburst pressed by Ben Chavis, the new Bernhard Langer. But any golf pro of grief and rage. head of the National Association for could have told him to practice a few But less than a year ago, we had the Advancement of Colored People. putts or chip shots, which would a riot in Chicago. What provoked Mr. Chavis noted that the gover- have improved his game and kept them to burn and loot? The Chicago nor of California has called up Na- him from being indicted.) Bulls won their second champion- tional Guard troops and is sending After the first trial, the police ship. them into areas where rioting OC- chief of L.A. went to a cocktail party, So what was their motive? Mi- curred after the first trial of the cops and his police department appeared chael Jordan didn't get a triple- who beat Rodney King. to have gone out for coffee. double? And the governor is mobilizing I don't know what the governor of The only thing we know for sure before even one disorderly act has California did. Maybe he went out in about riots is that when there are occurred. the yard and picked some oranges. cops and troops in sight, about 98 The sight of the troops, Mr. But the result was that nobody percent of the potential rioters stay Chavis said, reminded him of this with a badge and a gun was within home and watch it on TV. They are country's preparations for the De- sight or hearing when thousands of not dummies. Nobody wants to get sert Storm conflict. unruly people took to the streets for shot for stealing a bag of onions. "I want to make sure," Mr. Chavis their own purposes. Some for seri- Which means that this time there said, "that we don't go too far and ous violence, others to grab a new won't be 52 people dead and $1 bil- wind up doing something provoca- car battery. lion in destroyed property. tive." And when it was all over, 52 peo- That might be frustrating for That word again: provocative. It ple were dead, many more were those who think that everybody who is from the word "provoke," which moaning from bumps and bruises, burns a building or loots a storefront and more than $1 billion in property is a victim of social injustice. had been destroyed. But it will make for a better next Mike Royko is a nationally syndi- That, I believe, is what any rea- morning for the 52 and their fam- cated columnist. sonable person would consider pro- ilies. The Washington Times THURSDAY, APRIL 15, 1993 74 L 15, 1993 The Washington Times THURSDAY, APRIL 15, 1993 COMMENTARY HARRY SUMMERS everal important military S precedents were set last week that may have serious future repercussions around The deepening crisis in Bosnia the world. First was the decision by the Ger- According to The Washington Another symbolic display was 28, joined by France on March 27 man Federal Constitutional Court Post, the American portion of the the April 8 demand by the Interna- and Germany on March 28. Tb- that continuation of Germany's self- Unlike no-fly zone imposed restrictions on its military 60-plane force will include U.S. Air tional Court of Justice in The Hague gether, they have dropped 1,494.8 Force F-15 fighters deployed from that Serb-dominated Yugoslavia tons of food and 39.2 tons of medical would "endanger the trust for Ger- enforcement, the their base at Bitburg, Germany, to take steps to prevent the "crime of supplies. Those airdrops were sub- many within the (NATO) alliance." airdrops were not a Aviano Air Base in Italy and U.S. genocide" in neighboring Bosnia- jected to much ridicule when they The 5-to-3 decision by Germany's first began and many - myself in- highest court broke the political im- Navy F/A-18 attack fighters from Herzegovinia. While not binding, it passe between two contradictory ar- symbolic display. the aircraft carrier USS Theodore was designed to "help shape world cluded - doubted their practical ticles in the German Basic Law. One Roosevelt, now in the Adriatic. opinion." value, given what we believed to be But world opinion was shaped in an inability to set the goods down article with World War II in mind French and Dutch aircraft are another direction with the discovery precisely where they were aimed. - imposed a constitutional re- decision was precipitated by NATO's also deploying to Northern Italian that same day of 48 crates of small But we were wrong. striction on use of German forces for plans to enforce the U.N.-mandated bases and the British carrier Ark arms ammunition hidden in a load of As Air Force Brig. Gen. Donald other than defensive purposes. The "no-fly zone" in Bosnia, because Royal and the French carrier Cle- flour supplied by the U.N. humani- E. Loranger, Jr., the commander of other, written when German partici- German military crews make up menceau are on station in the Adri- tarian aid mission destined for a the 435th Air Lift Wing actually pation in the North Atlantic Treaty one-third of the AWACS (airborne atic. All of this mighty air armada Muslim-controlled section of Sara- making the drops explained, the air- Organization was deemed critical to warning and control system) air- should prove sufficient to deal with the Serbian air threat. The one Serb jevo. Twenty-four sacks of gunpow- craft involved are equipped with Western defenses, specifically au- craft essential to that operation. der and even more ammunition were AWADS, a post-Vietnam War "Ad- thorized German membership in As soon as the court ruling was aircraft used to attack the Muslim- found when the U.N. team searched "collective security" coalitions. issued, yet another historic decision held town of Srebrenica last month verse Weather Aerial Delivery Sys- their warehouses at the airport. tem." Tied in to the satellite-derived Ironically, just as events in the was made. On April 8, NATO's 16- was a biplane, apparently a con- Meanwhile, also on April 8, un- Global Positioning System and using Balkans propelled Germany into member ruling council committed verted crop duster. noticed and unremarked by the 26-foot ring-slot parachutes de- World War I, events in the Balkans the organization to combat for the As Associated Press corre- world press, the airdrop to the be- signed specifically for high altitude are now placing Germany in a com- first time since it was created in spondent Robert J. Wielaard re- sieged Muslims in Eastern Bosnia release, AWADS has achieved re- bat situation for the first time since 1949. NATO Secretary-General ported from Brussels: "The enforce- continued. On that night, six U.S. markable accuracy. The Washington Times the end of World War II. The court Manfred Woerner informed the ment has little military effect C-130 Hercules aircraft, one French United Nations that, effective April Unlike no-fly zone enforcement, because almost all Serbian attacks C-160 Transall and one German 12, NATO warplanes would patrol the airdrops were not a symbolic dis- have been by ground troops. But it is Harry G. Summers Jr., a retired C-160 airdropped 53.8 tons of food Bosnian airspace and shoot down play. Thousands in the region are U.S. Army colonel, is a distinguished seen as a symbolic display of inter- and 1.7 tons of medical supplies to alive today because of the dedication any Serbian aircraft violating the fellow of the Army War College and a national support for Bosnian Mus- Srebrenica for the 39th U.S. and 13th of U.S. and allied air-lifters. Let us no-fly zone imposed by the Security nationally syndicated columnst. lims and outrage against Bosnian combined airdrop mission. hope the latest escalation will have Council in October 1992. Serbs." The U.S. air drops began on Feb. the same beneficial effect. he news that the Demo- T cratic chairmen of the House and Senate tax- writing committees op- pose a key proposal in President Clinton's eco- Behind the budget curve? nomic recovery plan has dealt an- other serious blow to his leadership on the economy. Less than three months into his presidency, with his job approval rating sinking below 50 percent, the core proposals in Mr. Clinton's eco- nomic plan face serious opposition from leaders in both parties and in the business community. What this means is that the very foundation of his leadership on eco- nomic policy may be crumbling be- neath him. It also means that unless he changes his plan to soak business and investors with higher taxes, he THURSDAY, APRIL 15, 1993 is in danger of seeing the central elements of his economic proposals rejected by Congress. POW! SPENDING Soon after Mr. Clinton realized PLAN that he had badly miscalculated by trying to freeze the Republicans out of the process, he was hit by a new development that makes the GOP filibuster to his $16.3 billion spend- ing stimulus package the least of his problems. Now it turns out that the two Democrats who will be responsible for writing and enacting his tax pro- posals have serious questions about the $21 billion investment tax credit that is the heart of his economic pro- gram. New York Sen. Daniel Moynihan, who chairs the Senate Finance Com- mittee, and Rep. Dan Rostenkowski SCHULL of Chicago, who chairs the House Ways and Means panel, fear that the spring recess that higher taxes will inexperienced White House team, as raise their costs and force them to investment tax credit would open up it nears the 100-day mark, scramb- It turns out that the two Democrats who will cut their work force. a rash of tax loopholes that they had ling to repair the damage from two both worked to close in the tax re- be responsible for writing and enacting his tax "They can't find a friend for it in enormous blunders. forms of 1986. Rosty has privately Congress or in industry," Roger He had lamely sought to imitate told the White House there is little proposals have serious questions about the $21 Brinner, chief economist for DRI/ Ronald Reagan's successful 1981 support for the temporary, incre- McGraw-Hill, told New York Times legislative strategy But unlike Mr. mental investment tax credit among billion investment tax credit. reporter David Rosenbaum. Reagan, who formed a bipartisan co- Democrats on his committee, let Still, Mr. Clinton is battling for his alition by reaching out to conserva- alone among the Republicans. $30 billion plan, hoping to salvage tive Democrats, Mr. Clinton arro- "He has serious questions about centives and pulled the investment byists who argue that Mr. Clinton's what he can when Congress returns gantly believed he could legislate it," a chief Rostenkowski aide told rug out from under real estate devel- temporary, incremental investment for business next week, even though through one party rule. He was opers and the banking industry. tax credit proposal would create few most business economists believe it me. wrong. Both men were strong supporters Nevertheless, Mr. Moynihan is on new jobs. would have a marginal impact on the Meantime, it turns out that the of the 1986 reforms that broadened record as saying that "we estab- The National Association of Man- nation's $6 trillion economy. vaunted economic plan he had been The Washington Times the tax base and lowered tax rates in lished a very important principle in ufacturers, representing corpora- But if Senate Republican Leader selling so skillfully - which is order to encourage long-term capi- the '86 law. We shouldn't go back tions that would be among the Bob Dole and his troops have effec- mostly government spending (i.e. tal investment. Unfortunately, that on that." heaviest purchasers of machinery, tively blocked the administration's borrowing) and higher taxes and plan also raised capital gains taxes the American Council for Capital spending stimulus package, the soul precious little else - is beginning to At the same time, the business to 28 percent, weakened savings in- Formation, and many other groups, of his economic program, and if Mr. wear thin. community, threatened with higher are flatly opposed to it. Rostenkowski and Mr. Moynihan "What's happened is that busi- 36 percent income tax rates and even They would rather junk the in- want to dump his investment tax ness finally got around to reading higher marginal tax rates on invest- vestment tax credit and keep the credit, the heart of his tax stimulus the fine print and saw that there's Donald Lambro, chief political ment income, has escalated its offen- corporate tax rates where they are plan, what is left? Answer: Not much nothing in it for them," said Wall correspondent of The Washington sive against the investment tax now. While Mr. Clinton pitches for it in the way of real economic stim- Times, is a nationally syndicated Street economist Larry Kudlow. credit. The two chairmen have been here, business owners are telling ulus. columnist. "And now the natives are getting besieged by an army of business lob- lawmakers back home for their That leaves Mr. Clinton and his restless." Mr. Eisner's answer has two parts: Whether the deficit fell de- pends on how it is measured. If it is measured in relation to the size of ow it's liberal economists the economy, the long Reagan expan- N giving Clintonomics the sion cut the deficit in half as a per- thumbs down. Robert Eis- centage of gross domestic product. ner, professor of econom- It fell less in absolute size, because ics at Northwestern University, past the Reagan expansion was unique. president of the American Eco- Inflation was lower at the end of the nomic Association and one of Amer- expansion than at the beginning. ica's most famous liberal econo- Mr. Eisner reports that bigger mists, says President Clinton's plan deficits result from less inflation to reduce the deficit will do more and smaller deficits from more in- harm than good. flation. The reason is simple. By in- Mr. Clinton says a tax increase flating incomes, inflation produces will cut the deficit and free national higher tax revenues. savings for investment, thus boost- In the 1960s and 1970s, we "paid ing the economy. Mr. Eisner says the for" economic growth by accepting tax increase will cut consumption a rising rate of inflation. During the and investment, thus boosting the 1980s, inflation fell dramatically, deficit. and the loss of revenues from lower Who is right? Consider Mr. Eis- inflation offset the growth in rev- ner's argument, and make up your enues from an expanding economy. own mind. It is ironic that the budget deficit On the surface, Mr. Eisner says, it resulted from Mr. Reagan's greatest looks like a smaller deficit would success - the simultaneous reduc- mean less government borrowing of tion in unemployment and inflation. our savings and, therefore, more for Mr. Eisner is concerned that mis- private investment. Indeed, this taken claims of irreparable harm would be the result if the deficit from budget deficits are pushing the were reduced by a higher rate of government into a policy that will economic growth. contract the economy. Raising taxes But when taxes are raised, other makes us poorer, but deficits make factors come into play. Most notably, us richer. When the government fi- disposable personal income falls, nances its spending by borrowing, and this results in cutbacks in per- people exchange their money for sonal saving and consumption. Simi- Treasury securities, that are part of larly, higher taxes on corporate prof- their wealth. But when government its reduce retained earnings and finances its spending with taxes, business saving. Thus, the people exchange their money for a shrinkage in private savings would receipt for tax payment. offset the gain from a smaller gov- Test his point on yourself. Would ernment deficit. you rather pay your taxes every year And this is just the beginning of by writing the government a check the story. The fall in private con- or by buying an equivalent amount sumption means unsold goods, lead- of government bonds? Would you ing to a cutback in production and feel richer holding the bonds or a tax layoffs. If the government is simulta- receipt? neously cutting its own spending as Mr. Eisner does not believe there part of a deficit reduction deal, there are no limits to debt. Governments is an even bigger decline in aggre- cannot indefinitely allow their debt gate demand. to grow faster than their income. To As unemployment rises, the defi- add perspective, he reports that at cit goes up. The government esti- the end of the 1992 fiscal year the mates that every 1 percentage point public debt held by the public was 51 rise in the unemployment rate adds percent of gross domestic product, $50 billion to the deficit. A deficit- as compared to 47 percent in 1939 reduction program that would really and 114 percent in 1946. work, Mr. Eisner says, is one that President Bush raised taxes, and would get the unemployment rate the unemployment rate rose, taking back down to 5 percent where Mr. the deficit up with it. Would it be any Reagan had it, thus cutting the defi- different for Mr. Clinton? cit by $130 billion. The gist of Mr. Eisner's argument is that deficits are reduced by eco- Paul Craig Roberts, an economist nomic growth which won't happen at the Center for Strategic and Inter- if government is reducing purchas- national Studies, is a columnist for ing power with higher taxation. The Washington Times and is nation- Here a question naturally leaps to ally syndicated. mind. If economic growth cuts the deficit, how come it didn't work for Mr. Reagan? The Washington Times THURSDAY, APRIL 15, 1993 77 COMMENTARY The Washington Times THURSDAY, APRIL 15, 1993 / PAGE G3 GEORGIE ANNE GEYER How is it that, after all of these mechanisms to protect the people's Qualified hope for months of military rule, with Father expectations." Aristide in exile in the United States, As for the 5 percent, the extraor- a solution seems imminent? dinarily wealthy elite, who have tra- One secret to what is happening ditionally backed the armed forces a solution in Haiti is the apparent determination of the against the people? "They are Clinton administration to make a changing their attitude because they Haitian settlement its first victory. now understand that the U.S. means Unlike in other areas, Mr. Clinton business," a Western ambassador PORT-AU-PRINCE, Haiti hausted and frightened at the fact immediately poured interest and, told me. "But if for any reason they erhaps the searing heat is that it has gone on so long." Then he more important, tough-mindedness perceive that the American adminis- P getting to me, but during thought for a moment and calmed into the Haitian question. Negoti- tration is not keen to see Aristide Easter week this year I down a bit, adding the demurrer, ators such as Mr. Caputo, retired back, they could change again." sensed a messianic expecta- "We're not on the brink of an agree- American Ambassador Lawrence And what about controversial tion in the air here. It is almost as ment but on the path." Pezzullo and Charge d'Affaires priest-president Father Aristide, though any moment now the Hai- Perhaps at that moment of quali- Charles Redmond have assaulted the adored by the abysmally poor 95 tians expect to see their new Amer- fied hope, his optimism was tem- Haitian military dictatorship with percent of the population as a kind ican "god" Bill Clinton carrying a pered by the popular Haitian Creole pressures and threats. But they of god and abominated by the other "resurrected" Jean-Bertrand Aris- proverb: "Behind the mountain were also aware of the military's 5 percent? In a recent talk with a tide back to Haiti in his very own there's another mountain." fears of Father Aristide, whom they group of us here, Father Aristide in- arms. Nevertheless, according to all re- consider the "leader of the rabble" dicated that he, too, had mellowed in So, all right, the temperature and ports, the resolute U.N. negotiator, in Haiti; and so the negotiations have the last year and a half. the garbage and the despair here do Dante Caputo of Argentina, returns also focused on providing enough re- "I look with a dialectical vision come to affect one. Yet, finally, there to Haiti this week with a "compre- assurances from outside to keep ev- toward what has happened and say, is now real reason to believe that the hensive package." It will encompass erybody in line. 'Let's do it better tomorrow,' he told negotiations for a settlement of the such an astonishing array of pres- One can glimpse the changes in us. "It is better to learn from my "Haitian problem" are down to the sures and promises to redemoc- "ONCE,I ESCAPED AND MADE IT TO THE GATES OF HEAVEN... attitude, even in the hardest-line past. I would be a very bad president wire. ratize Haiti and get the military out groups. Would the military agree to in the future if I didn't respect also Perhaps one Western diplomat of politics that, if it works, it could BUT MY REQUEST FOR ASYLUM WAS DENIED: Father Aristide's return? "If you those who didn't vote for me. I have put the mood best: "Getting anyone easily augur solutions to similar find the right man as prime min- learned a lot in these months." to negotiate here at all was amazing. problems elsewhere in the world. ister," a ranking and well-informed Another of the sadly cynical Hai- Getting them to accept a U.N./O.A.S. In short, the package that has a total reorganization and profes- whether Father Aristide, a Catholic retired military officer told me. "It tian proverbs reads: "Rocks in the mission was amazing. People are ex- been hammered out by U.N., U.S. and sionalization of the military and for O.A.S. diplomats would provide for priest, would accept an amnesty for would have to be a man who has the water don't know the suffering of a gigantic $1 billion in aid to rebuild all the military officers, who are re- confidence of both sides. rocks in the sun." If these reports are the Haitian military removing itself and institutionalize Haiti. For the sponsible for hundreds of deaths "You see, we've got to keep Aris- correct, conceivably those different Georgie Anne Geyer is a nation- from politics, for the return of Pres- last two weeks, the package has been ident Aristide within six months, for since the coup against him 18 tide so as not to destroy people's sufferings are really about to be ally syndicated columnist. mired in the unanswered question of months ago. hope, but you've got to put in legal bridged. MARTIN ANDERSON ow would you like it if the venture capital they are losers, in- H federal government de- Can the competents, men who know no more creed that your sched- nor less about high techology than uled open heart surgery you do or I do. was to be performed by a high rank- never operated before and was not losers Losers cannot pick winners in ing government official who had this game. The notion of any govern- ment bureaucrat picking winners in even a doctor? the race to develop new high technol- Well, the idea of allowing govern- pick ogy is laughable. They may enter- ment bureaucrats to pick the future tain Walter Mitty dreams of being "winners" of high technology invest- high technology mavens, but it is un- ment may not be as dangerous, but conscionable for them to play with it is just as foolish. The central issue in the New In- winners? our money. dustrial Policy (NIP) of the Clinton Can you imagine what would hap- administration is: Who does the pen if Clinton's pickers-to-be left picking? People who can pick even a government and founded a private few winners are rare. For every new venture capital firm? How much of technology idea that receives finan- their own money would they invest? cial backing there are hundreds, The only difference Do you think they could raise 5 cents thousands, that never get off the between the Dukakis from the rest of us? ground - almost always for very What makes the whole $17 billion good reasons. disaster and President scheme even more outrageous is Under our current system the picking is done by venture capital- Clinton's NIP is that most high technology entrepre- neurs don't need or want the govern- ists and entrepreneurs, a rare breed who combine the prudence of bank- $16.95 billion dollars. ment's help. True, some business- men like John Scully of Apple ers, the risk-taking of gamblers and Computers, who was formerly a the willingness to invest large Pepsi-Cola executive, have strongly amounts of their own money and President Clinton has promised to endorsed the industrial policy idea, their own time. Last year private investors back his high tech industrial policy shamelessly angling for their piece plan - which includes joint ven- of federal pork. But most of the real poured billions into risky, unpredict- tures between government and busi- high tech entrepreneurs, the ones able investments that would make ness and investing in a national com- who actually invent and build the most Americans blanch. These men puter network - with $17 billion of marvels of new technology shower- and women are brilliant, bold and the taxpayers' money over the next ing down on us, would prefer to be expert. Theirs is a small, exotic four years. This means that men like left alone. world. It is no place for dabblers or Ron Brown, the Commerce Secre- dilettantes. For example, in testimony before tary, and Robert Reich, the Labor Congress on March 25, 1993, T. Rog- Secretary, and their staffs will, by ers, the president of the Cypress default, become the pickers. Martin Anderson, a senior ad- Semiconductor Corp. in California, viser on the President's Economic In their fields of expertise these put it this way: "As a high-technology Policy Advisory Board during the people are winners. Mr. Brown is a executive who faces the rigors of the Reagan administration, is now a very capable politician and Dr. market every day, I view both the senior fellow at the Hoover Institu- Reich is a Harvard intellectual and data highway and any subsidy of tion at Stanford University. high-performance computers as the writer. But in the world of high-tech most recent examples of industries lining up to feed at the public trough. The men and women of our com- COMING DOWN THE STRETCH, IT'S pany do not want handouts." IBM WITH DIGITAL CLOSE BEHIND: APPLE COMPUTER IS MAKING The record of government in in- A MOVE ON THE OUTSIDE dustrial policy ventures is one of unremitting failure. The latest pick to go belly-up was the brainchild of Gov. Michael Dukakis. Called the Massachusetts Microelectronics RELAX! HAS YOUR GOVERNMENT EVER Center, the computer chip-making LET YOU DOWN? plant built in 1988 was Mr. Dukakis' choice to be one of the next genera- tion's technology winners, and he lavished the Massachusetts taxpay- ers' money on it. On Feb. 14, 1993, the Boston Globe announced that the plant had been mothballed, describing the project as "a $50 million-plus mon- ument to high-priced good inten- tions gone bad." INVESTORS PUBLIC-PRIVATE They say the only difference be- tween men and boys is the price of their toys. The only difference be- tween the Dukakis disaster and President Clinton's NIP is $16.95 bil- lion dollars. The Washington Times THURSDAY, APRIL 15, 1993 79 The hidden costs of taxes eople who use tax preparation services know is almost a two-thirds surcharge built into the system. P that there are more costs involved in taxation The first set of costs Mr. Payne evaluates are those than just the check being written to the Inter- incurred by taxpayers in complying with all their filing nal Revenue Service. And those running up requirements. There are record-keeping burdens (col- against the April 15 deadline, who had to take a day off lecting records such as receipts and making sense of from work to see to the careful data entry on their 1040 the assembled materials). Then there is the burden of and various expense schedule forms, probably see that learning tax requirements (including wading through time as a loss. tax forms, instructions and pamphlets, calling the IRS But there are other costs, far less obvious, in the a hundred times for information, and then in the end system of income tax collection, burdens that ought to finding a professional tax adviser). The most obvious be considered whenever a politician proposes a new burden is filling out the return (filling in the forms, program funded with fresh tax dollars. If every dollar copying and mailing them). And then there is the time raised in income tax imposes 50 cents in additional and money spent on long-term tax planning. compliance burdens, then the $19.5 billion in new tax Each of these activities has costs, and not just the revenues needed to pay for Bill Clinton's "emergency" cost of hiring H&R Block. The 10 hours a person spent stimulus package will have a hidden extra cost of some doing taxes could have been spent productively. And $10 billion. If there were truth in political advertising, compliance costs are just the start: There are enforce- Mr. Clinton would be talking about his $30 billion ment costs (both for the auditors and the auditees). stimulus package. Perversities in the tax code mean distortions in eco- This calculation is based on the assumption that for nomic activity that are also costly. And then there are every dollar of tax collected, there is a hidden sur- the time and effort, not to mention diseconomic distor- charge of 50 cents. Actually, the hidden costs are closer tions, involved in tax evasion. Add to that the emotional to 65 cents per dollar of taxes. James Payne in his toll of worrying about an audit, and one arrives at the exhaustive work on the burdens of federal taxation, nifty surcharge of 65 cents per dollar of tax. So maybe "Costly Returns," breaks down the various costs of tax we should start talking about Mr. Clinton's $32.5 billion collection. When he adds up the tab, he finds that there spending package. The mayor and the taxman omorrow could be an interesting beginning for payments for 13 years to protest "taxation without T District taxpayers gullible enough to follow the representation." But he has had no taxes due. Mrs. counsel of several of the city's leaders, includ- Kelly was asked the question on a radio show. Her ing Mayor Sharon Pratt Kelly. On April 1, the convoluted answer boiled down to "no." She said that mayor, in the company of Jesse Jackson and several her withholdings are so enormous that she'll probably dozen labor, religious and civic activists, recom- get a refund anyway. In fact, according to the Internal mended to District residents that they refuse to file Revenue Service, 75 percent of all taxpayers in the their federal income tax returns. Maryland-D.C. area receive federal refunds as a norm. An April Fools' joke perhaps? Not at all. "Today is The average refund is around $1,000, says Sam Serio, April 1st," Mrs. Kelly said, "and today we're an- an IRS spokesman. nouncing that the District of Columbia isn't going to So if District residents decide not to file their re- be a fool any longer." With that she declared April turns, they won't be hurting the IRS, but their own Statehood Month and threw down the gauntlet to Pres- pocketbooks since most will be due a refund. If they ident Clinton. don't file, they won't get one, and the IRS couldn't care Protest in this country is nothing new, of course. less. Everyone has heard about that business with the tea in However, if the taxpayer is a member of that 25 Boston awhile back and what it got for the protesters. percent who owes, they have plenty to look forward to, Mr. Jackson, the city's "shadow" senator who was Mr. Serio says. First, there is a "failure to file" monthly elected primarily to lobby for statehood, brought up penalty of 5 percent per month. And since Uncle Sam that very point. "We cannot accept the burden of tax- knows how to make a mountain out of a small payment, ation without representation." he tacks on interest that varies every three months. Well, tax revolts may be in the best tradition of Right now, the interest rate is hovering around 7 per- America, but the leaders who are advising people to cent. As a final gesture, the government adds another break the law are being somewhat disingenuous. The half a percent per month as a "failure to pay" penalty. joke would be on anyone foolish enough to take them Perhaps the lawlessness that has gripped the city is seriously. getting to the city's leaders. Agitating for full represen- The bottom line is, as always, are these leaders tation as a state is a fine activity. But advocating law- willing to follow their own advice? Let's see. Statehood lessness won't further that cause. All that is guar- lobbyist Charles J. Moreland says he has withheld anteed is a visit from the IRS. Now, who wants that? The Washington Times THURSDAY, APRIL 15, 1993 80 If this is April 15, it must be tax day pril 15 is the cruelest day, the one that many in the summer or early fall. If the taxes are retroactive A people spend paying off the tab the feds have to Jan. 1, employees could find sharply reduced pay- run up on $100,000 congressional staffers, checks after Oct. 1. ethanol welfare checks, assorted bike paths Withholding has been much in the news of late. and all too much more. The good news is that most Former President Bush reduced withholding last year people probably had a little something left over for to put more money in consumer pockets, and for that themselves this year. The bad news is the Clinton ad- he has been much criticized. It means, for example, ministration wants to take even more away from you that fewer people will be getting refunds and more next year. people will be paying taxes out of pocket. There are other important days on the tax calendar, Suddenly people are getting a painful look at just however. Sometime early next month, the nation will how much government really costs them. And that finally reach Tax Freedom Day, the one the Tax Foun- cost, not Mr. Bush's withholding strategies, should be dation designates as the day Americans stop working the real object of their complaints. The feds under- for the government and start working for themselves. stand that withholding effectively hides that cost. As In 1992, a leap year, Tax Freedom Day was May 2, this newspaper's Rod Dreher put it Wednesday: "I meaning that the average American had to work the remained relatively indifferent to how my tax money equivalent of 123 days to pay off his obligation to gov- was spent because it was taken out before the check ernment at all levels. Today, the foundation is scheduled reached my hands. I never deeply felt the loss of in- to set Tax Freedom Day for 1993 and, perhaps, to give come because I never really had it." some idea of how the Clinton tax plan may affect it in Exactly. Few people would be indifferent to the bur- the future. den of government if they had to sit down and write a Then there is Oct. 1. That's the day employers may check for every penny of their obligation. If you want have to adjust federal withholding amounts from pay- to make that obligation smaller, if you want Tax Free- checks to reflect the higher taxes Mr. Clinton is propos- dom Day to come sooner, put the tax burden out where ing, assuming those taxes become law sometime late everyone can see it. Get rid of federal withholding. but not everyone gets to pay. ho could forget President Clinton's harsh W $400,000. Energy Secretary Hazel O'Leary is seeking campaign threats against the people who to shelter gains of up to $900,000 from the taxman. made off with the 1980s, the rich who re- Now there are, no doubt, a lot of people who wish fused to pay their fair share? As a matter they had the same opportunity. Part of the problem of fact, the rich folks in the president's Cabinet could with the capital gains tax is that it locks up old, out- afford to forget. While everyone else pays up today, the dated investments with confiscatory rates. Say you Clinton Cabinet is cashing in. bought into Widget Corp. at $3 per share and watched As Forbes magazine reminded its readers earlier it rise to $50 a share in a few years. Other companies this month, businesspeople-turned-government- are now battling Widget for a share of the market, a officials get a tax break available to no one else. When battle that is likely to limit future growth. Other invest- they sell holdings to avoid conflicts of interests, they ment opportunities beckon, but if you pull out of Wid- can defer taxes on their capital gains as long as they get, you will get socked with a massive capital gains reinvest the proceeds in Treasury bonds or mutual tax. Besides, although the new opportunities are poten- funds. They defer the tax until they sell those replace- tially lucrative, they are also enormously risky. Given ments. But, if they keep the replacement assets until the capital gains tax, it might be better to stay with death, they avoid the tax completely. At that time, the Widget. In short, the capital gains tax discourages new capital gains disappear when heirs assume the assets capital formation and limits the diversification of as- at current market value. sets. Of course, if you are a member of the Clinton Thus, Robert Rubin, formerly co-chairman of the Cabinet, you don't have that problem. Goldman Sachs Group and now director of the pres- It's true that Mr. Clinton didn't come up with this tax ident's National Economic Council, stands to make a break. The Bush administration did. But Mr. Bush also killing. Last year alone he had at least $30 million in sought to cut the capital gains rate for everyone, and income. Forbes reports that he could defer taxes on would have four years ago until Senate Majority the sale of 38 partnerships and two stock holdings. The Leader George Mitchell gridlocked the Senate with a savings run in the millions. filibuster. Likewise, White House Chief of Staff Thomas It's also true that this sort of tax shelter makes McLarty III sheltered the sale of more than $2 million government service more attractive to the Rubins and in assets. Roger Altman, deputy secretary of the Trea- O'Learys and McLartys of the world. Fine. How about sury, has taken advantage of the loophole to protect making real service, the kind offered by the private more than $200,000 in gains. Commerce Secretary Ron sector, more attractive: Let private citizens enjoy the Brown protected gains valued between $250,000 and Clinton loophole, too. The Washington Times THURSDAY, APRIL 15, 1993 81 Clinton to look at national tax Would pay health-care reform bill By Bill Nichols USA TODAY A-1 President Clinton will con- sider a value-added tax as a way to fund health-care re- form, the White House says. Clinton first raised, and re- jected, a VAT in February. But aides, after a barrage of questions Wednesday, say it now is among the options. "If an argument is made he will clearly listen to it," said spokesman George Stephano- poulos. "That does not mean he has decided to do it." The questions were prompt- ed by Secretary of Health and Human Services Donna Sha- lala, who Tuesday told USA TODAY it is being considered. A VAT, widely used in Eu- rope and Canada, levies a tax at various stages in production and marketing. The Congressional Budget Office estimates a 5% VAT - excluding food, housing and medical care - would raise $217 billion over four years. The health-care task force, due to deliver its report in May, is looking at a variety of ways to raise the needed billions. Still, Hillary Rodham Clin- ton, who chairs the task force, brushed off a question Wednes- day about the VAT. The idea was swiftly criti- cized by the National Retail Federation. It says the VAT: Would be regressive. Could add to inflation. Would impose a heavy ad- ministrative burden. The VAT is "likely to back- fire," says federation president Tracy Mullin. THURSDAY, APRIL 15, 1993 USA TODAY But recent polls do find pub- lic support for a modest nation- 1/2 al tax of some kind to pay for health-care reform. Meanwhile, the debate over Clinton's $16 billion economic stimulus plan, blocked by a GOP filibuster, continued. Clinton said he can only ask for shared national sacrifice if he can promise jobs as part of the bargain. But congressional Republi- cans stuck to their guns, plan- ning 19 public-forums on Satur- day to explain their opposition. is VAT a 'trial balloon'? 4A 82 Back and forth O 1 na onal sa es tax C inton says idea can't Challenge be ruled out By Bill Nichols USA TODAY On Feb. 19. after creating a momentary stir at a town meeting in Chillicothe, Ohio, by seeming to raise the possibility of a national value-added tax, President Clinton told report- ers to settle down. "It is not something that is now under consideration," By Gary Hershorn, Reuters Clinton said of the VAT, a kind CLINTON: Young people 'playing by the rules' deserve jobs of national sales tax he had only hours before called a "radical change in the tax sys- GOP turning the tables tem of the United States." "If we start considering it, I'll tell you. I did not mean to with its own town meetings float a trial balloon." On Wednesday, the White By Bill Nichols on the verge of being able to House said something quite dif- USA TODAY kill the entire Clinton eco- ferent - that Clinton will con- nomic stimulus package." sider a VAT as a way to finance House Republicans, taking The White House, howev- health-care reform if the ad- a page from President Clin- er, continues to court and ministration health-care task ton's playbook, plan to hold pressure Senate Republicans force presents that option. 19 town meetings Saturday to to try to spring the bill from And that change has raised bash Clinton's $16 billion eco- its Senate logjam. questions once more about nomic stimulus plan. Clinton, with Education Clinton's penchant for retreat- Clinton has "turned the Secretary Richard Riley and ing from strongly stated opin- White House into a television Labor Secretary Robert ions on major issues. dish and is transmitting his Reich in tow, said at a confer- It also focuses on whether it message across the country," ence on summer jobs that he is politically wise to contem- says Rep. Richard Armey, R- needs more jobs to offer plate a national sales tax on top Texas, saying the GOP must youths as a reward for "play- of the nearly $300 billion in net play by the same rules. ing by the rules." new taxes proposed in Clinton's Speaking for conservative "We cannot go through an- five-year budget plan. Republicans, former con- other 10 years when we don't By J. Scott Applewhite, AP Any dip in Clinton's personal gressman Vin Weber of Min- give these children anything REACHING THE AUDIENCE: Labor Secretary Robert Reich popularity or suggestions that nesota says, "We stand today to say yes to," he said. delivers his more-jobs-are-needed message. the costs of his legislative pro- gram could outweigh the bene- fits could crack the resolve of tax increase just a couple of his shaky coalition, says politi- Adding it up: How the tax works months ago politically, I cal analyst Charles Cook. would call this perilous.' "People are willing to go for Beyond the substance of the short-term pain in exchange A value-added tax is com- Each business would like- That's good if more savings VAT, Clinton's seeming turn- for long-term gain, but if you mon in Europe and Canada: ly add the tax to its bill leads to more business in- around adds another item to a raise many doubts, they'll drop How a VAT works. The Who ends up paying. vestment, as banks lend the list critics say validates his rep- his thing like a hot potato." tax can be applied to goods Economists say consumers money consumers save. utation for flip-flopping for the The White House made and services. For goods, the would foot nearly all the bill The minuses. A VAT sake of political expediency: clear Clinton isn't endorsing a tax is levied at each stage of Competition from abroad hits lower-income people Clinton promised to end VAT. But it would not rule it out the production process. and consumer sticker shock harder than upper-income the Bush administration's before hearing the task force's A lumber mill might be might prevent companies people, who can more easily forced returns of Haitian refu- ecommendations, which are taxed, for example, 5% of from passing along all the absorb price increases. gees, then adopted that policy. expected to include the tax. the difference between the tax. But, experts say, con- Some of the burden can be He made a middle-class "The president hasn't made price of the timber it bought sumer prices would rise. relieved by income tax cred- tax cut an early campaign is- inal decisions on how to fi- and the higher price of the The pluses. A VAT its for low-income families. sue, then opted for an energy iance health-care reform lumber it sold. Then a furni- would boost federal tax reve- Also, key goods and services tax that affects anyone making ut a VAT or general sales tax ture maker would be taxed nue. (A 5% VAT would raise can be exempt from a VAT. more than $30,000 annually. clearly a possible candi- 5% of the difference be- about $47 billion a year.) President Clinton has said Many gay advocates say late," said deputy budget di- tween the price of the lum- And because prices would that if a VAT is enacted, food Clinton is selling out on his ector Alice Rivlin. ber it bought from the mill rise, consumers would have would have to be exempt. pledge to revoke the ban on ho- Health and Human Services and the chairs It sold. more incentive to save. - Mark Memmott mosexuals in the military. ecretary Donna Shalala made The White House argument milar comments Tuesday to is that Clinton has the courage SA TODAY's editorial board. the argument if it is presented cohol taxes more palatable. believe a VAT can be sold to to change his mind when cir- When the possibility of the to him,' said spokesman Or the administration may the nation and Congress. cumstances warrant. x was raised previously in George Stephanopoulos. be paving the road for propos- But other Washington ob- Others warn of a backlash. ews reports of the task force's The chorus of administra- ing an idea Congress has long servers are dubious. "Any flip-flop on taxes is a flip- ecret deliberations, however, tion voices raising the prospect considered too radical. Says analyst William flop that can be very damag- e White House said Clinton's of a VAT presents the question Some in the White House, Schneider: "They would be ing" says University of Virgin- arlier dismissal still stood. of whether this is a trial bal- citing poll data showing how asking for another not only big ia analyst Larry Sabato. Wednesday, that changed. "I loon, a method of making other passionately many Americans tax increase, but a whole new sume that he will consider options such as cigarette or al- want guaranteed health care, tax on top of what is a record National sales tax, 1A THURSDAY, APRIL 15, 1993 USA TODAY 2/2 83 Abortion issues could trip up health-care reform By Mimi Hall ment for reproductive rights in says Kush. How to provide the bene- USA TODAY America, because we're talk- But abortion-rights activists fits if there is no doctor willing ing about having abortion as a promise a fight if abortion is to perform abortions in a pa- The Clinton administration basic benefit for every Ameri- not included. Analysts say that tient's network, the system of is wrestling with abortion cov- can woman," says Planned leaves Clinton at political risk health providers expected to erage in its basic package of Parenthood President Pamela no matter what he does. be a key part of the reform health-care benefits, aware Maraldo. But "we know there's "He's made a personal com- plan. That could be a common that the explosive issue could going to be a fight." mitment about reproductive scenario, given the nationwide jeopardize - or at least stall - With abortion covered, in- health services and abortion shortage of abortion doctors. congressional passage of surers would have to offer the services, and it would be very What to do about five health-care reform. benefit to all, including the 37 difficult now to exclude cover- states - Idaho, Kentucky, Mis- "When members of Con- million uninsured people to be age for abortion services," says souri, North Dakota and Rhode gress see this, they will draw brought into the system. Drew Altman of the Henry J. Island - that require private the line," says David Kush, Abortion foes complain that Kaiser Family Foundation, a insurance companies to ex- spokesman for Rep. Chris would force everyone, no mat- health-care philanthropy. clude most abortion benefits. Smith, R-N.J., an abortion foe. ter what their views on abor- Experts and activists on both "The federal government "There is going to be a fight." tion, to indirectly pay for abor- sides of the issue say Hillary has no business mandating" Clinton said in January that MARALDO: 'We know there's tions through insurance Rodham Clinton's health-care benefits, says Doug Johnson of he wanted his health-care over- going to be a fight.' premiums or tax dollars. task force is looking at several the National Right to Life Com- haul to provide "access to qual- And they're counting on issues on abortion: mittee. "We're saying it should THURSDAY, APRIL 15, 1993 USA TODAY ity, affordable health care, in- By including abortion bene- many abortion-rights support- Whether to explicitly in- be kept optional." cluding abortion services." fits in his health-care plan, due ers in Congress to join their clude abortion or to include a Says Helen Alvare of the Na- Already, he has fulfilled a in mid-May, Clinton would con- fight in saying that goes too far. vague mandate that all repro- tional Conference of Catholic promise to lift Republican-era tinue efforts to make abortion "A lot of members of Con- ductive care be covered. Bishops: "It will become one of abortion restrictions affecting available to all women. gress draw the line between "The challenge is how to put the hottest issues, and that's poor women and women in the "You could say that this is making (abortion) legal and it in the plan and minimize the a shame because health-care military abroad. going to be the defining mo- requiring people to pay for it," damage," Altman says. reform is so badly needed." Russia aid plan to top $30 billion By Johanna Neuman HA tary Lloyd Bentsen asked the "Russia is now at a critical USA TODAY other nations jointly to contrib- juncture," Prime Minister Kii- ute $1.5 billion, with $2 billion chi Miyazawa of Japan said in The world's seven largest in- from the World Bank and the opening the meeting Other na- dustrial nations today unveil a European Bank for Recon- tions must "send a clear mes- package of aid for Russia ex- struction and Development. sage" they expect Russia's re- pected to top $30 billion, in- Secretary of State Warren forms to succeed. cluding an expected $1.8 bil- Christopher explained the ra- Miyazawa, en route to Wash- lion from the United States. tionale, saying "Yeltsin is far ington for Friday's meeting Backing embattled Russian superior to any of his likely with Clinton, said Japan will President Boris Yeltsin with successors," and citing the like- pledge $1.82 billion - includ- money as well as words, the lihood of "benign foreign poli- ing $320 million in grants, $1.5 THURSDAY, APRIL 15, 1993 USA TODAY U.S. pledge would be over and cy" under Yeltsin, including billion in loans and $100 mil- above the $1.6 billion pledged nuclear reduction treaties. lion in food and medicine. by President Clinton at the re- In another boost to Yeltsin, But Bentsen said Clinton ex- cent Vancouver summit. foreign ministers from the sev- pects Japan to do more. The money would come en nations - Britain, Canada, "Given the strength of the from the U.S. foreign aid budg- France, Germany, Italy, Japan (Japanese) economy, I'm sure et, now at $15 billion, out of a and the United States - the president will be urging 1994 federal budget of $1.5 tril- agreed to defer any U.N. action them to participate," he said. 6 lion. Also proposed: creation of to tighten sanctions on Serbia. But Germany told the others By Koji Sasahara, AP a $4 billion privatization fund, Russia, a traditional Serbian it had reached the limit of its CRAFTING AID PLAN: Secretary of State Warren Christopher is including a $500 million contri- ally, votes April 25 on Yeltsin's support - $39 billion in aid. flanked by Japanese Prime Minister Kiichi Miyazawa, left, and bution from the United States. leadership. Ministers didn't Russian Foreign Minister Andrei Kozyrev at a dinner in Tokyo. In Tokyo, Treasury Secre- want to alienate voters. Yeltsin vote, 6A COVER STORY IRS seeks less-taxing process 'An audit By Janet L. Flx USA TODAY shouldn't be a First, their boat sank. The nightmare,' salvage and repairs cost a fortune. Then, the economy but some tanked, pulling their charter- boat business down for good. taxpayers have Just when they thought life couldn't get worse, Ben- had just that jamin and Sylvia Lane of Berkeley, Calif., were hit with what every taxpayer dreads - an IRS audit. After examining their returns for 1986, 1987 and 1988, the Inter- nal Revenue Service ordered them to pay $330,000 in taxes, penalties and interest. "We were looking at bankruptcy," says Sylvia Lane, "and we were horrified." Perhaps only the IRS can inspire such terror. Today, the fear of an IRS audit hangs over millions of taxpayers as they rush to finish and mail their 1992 returns by midnight. They worry: Will a deduction come back to haunt me? Will a math error bring trouble? "You're afraid you'll lose everything," says Karen Don- nelly of San Diego, who helped her husband reconstruct a year's worth of lost records for an IRS audit. "But it's the IRS, not the audit, that's so scary." Even the IRS is tired of being the heavy. It wants to cast the audit net more accurately on likely tax cheats. It's also trying to make the audit process less painful for taxpayers. "An audit shouldn't be a nightmare," says Michael Killfoil, IRS deputy assistant commissioner for examinations. Even if you aren't convinced by the IRS's new nice-guy approach, you can rest easy until October. That's when the IRS starts auditing 1992 returns. Even then, the chances you'll be audited are slim. Just 1 million of the 113 million returns filed last year were selected for audits. "It's the re- verse of winning the lottery," says Geoffrey Kregg, a tax preparer and former IRS auditor in Imperial Beach, Calif. Every year, the IRS checks on millions of taxpayers with- out their ever knowing It. Computers match wage, interest and dividend income on their returns with W-2s and 1099 forms filed by their employers and banks. No error, no problem - so far. But once every four years, the IRS has randomly picked 50,000 unlucky taxpayers for a grueling line-by-line audit Please see COVER STORY next page THURSDAY, APRIL 15, 1993 USA TODAY 1/2 86 COVER STORY RS tries to shed ogre image in audits Continued from 1B under its Taxpayer Compliance Mea- Being audited? Be prepared and be nice surement Program, TCMP for short. From those 50,000 audits, the IRS If you're ever faced with an audit, formation in writing. The audit may with the auditor. Politeness pays. learns what kind of deductions tend to don't panic. Millions of taxpayers focus on one deduction - or many. If you need help, get it. It's smart be taken by taxpayers in different in- have survived without losing every- Don't try this at home. If you to hire a professional if you're audit- come groups. With that information, it thing. Tips for dealing with the IRS: must meet, try to do it at the IRS of- ed. Only well-prepared taxpayers develops a secret formula it uses to Prepare for an audit in advance. fice. If the IRS suspects you're not re- should go it alone. If a preparer did evaluate every other income-tax return Keep a copy of your 1992 return, porting all income, you may not want your return, have that person deal filed. The farther outside the norm for along with every 1099, W-2, receipt an auditor to see your fancy digs. with the IRS. Often, preparers will your income your return is, the higher and canceled check. Bring documents. It's your word deal with the IRS for free - some your score. The higher your score, the Know your rights. Get a free IRS VS. the IRS's. Your best defense is charge $200 an hour. more likely you are to be audited. publication called "Your Rights as a documentation of any expenses Appeal if you feel you've been "It's top secret," Killfoil says. "Even if Taxpayer." Read it. you've claimed. A cash-register re- wronged. If you don't like what the you knew (the formula), it's impossible Find out why you're being audit- ceipt is good. An itemized bill is bet- auditor decides, ask to speak to a su- to compute." This much seems clear: ed. When notifying you of an audit, ter. An itemized bill with a canceled pervisor. If that doesn't work, you can Your return is more likely to be flagged the IRS should tell you what it wants check attached is better still. ultimately take your case to court. for an audit if your itemized deductions to review. If it doesn't, ask for the in- Be nice. Avoid confrontations Janet L. Fix are considered high for your income. Remember, Congress in 1986 eliminat- ed many of the deductions taxpayers were used to. So it's easier for the IRS to target taxpayers with lots of deductions. Frequent-flier awards may be IRS target Your chances of being audited also in- CI if you file a Schedule C claiming If you don't report frequent-flier Plus, frequent-flier programs business income or losses. awards on your tax returns, you have gotten so big, they're now a But exactly what makes a score sky- could be a tax cheat. But you'll have huge revenue source. Last year, rocket is kept a mystery from taxpay- a lot of company. about 5 million awards were issued. ers, accountants and IRS auditors who The IRS says awards are taxable "It's a $1 billion windfall that the are simply told by higher-ups whom to if you earn them from company-paid (Clinton) administration is not going audit and what to focus on. business trips and use them for per- to overlook," warns Stanley Dale, Peter Dowling was audited three sonal travel. So far, the IRS hasn't editor of Mileage & Points, a fre- times in three years. The IRS never told tried to collect taxes on them be- Stan Godlewski quent-flier newsletter. the South Norwalk, Conn., resident ex- THIRD TIME'S A CHARM? Dowling cause it doesn't know what they're Despite the Florida audits, spokes- actly why he was examined. But Dowl- was audited three times in three years. worth. But that could change. IRS au- man Henry Holmes says the IRS ing figures it's because he quit his man- ditors in Florida recently socked a no plans to crack down on travel agement-consulting job and started people do their returns right, we handful of fliers with back-tax bills awards. But he adds, "What might speculating in real estate. "My income shouldn't bother them." after they sold their awards to their happen down the road? Who knows." went from $65,000 to negative $20,000," The IRS was scheduled to start a new employer. Julie Schmit Dowling says. TCMP this year on 1992 returns. Recog- Whatever the reason, Dowling shud- nizing it was spending a lot for flawed ders when he recalls the experience. information, the IRS had decided to put the IRS wanted to audit his 1990 return, two," he says. "It took four or five hours "Mention audit," Dowling says now, only 25,000 taxpayers through the pro- his friends and family advised him to the first day and two hours the sec "and my eye develops a tick." gram this year. But the GAO recently hire an accountant or lawyer. But "I'd But Caruso still came out ahead. The Plenty of others feel the way Dowling criticized that plan - 90 the IRS says it done my own taxes. Why pay somebody audit revealed that the IRS owed him c "The audits are abusive. They ask will continue to use information from its $800 to handle the audit?" Caruso says. $4,000 because he found a mistake for everything from birth certificates to 1988 TCMP study and not put anyone "It's part of the IRS training to try to in- of his employers made on his W-2. "Af- the kitchen sink," says Mark Bloom, through the painful TCMP process this still a sense of fear. But I had nothing to ter all the nitpicking," Caruso recalls, "it spok an for the J.K. Lasser Institute, year. Instead, the IRS will try to develop be afraid of." was great to tell the auditor, 'You owe which publishes annual tax guides. a better way to select returns for audit. So he went to work. He read an IRS me $4,000 - plus interest.' Weary of the grief, the IRS is trying to "Taxpayers didn't enjoy the process, publication called "Your Rights as a Tax- An IRS audit also proved a b. g become a kinder, gentler bureaucracy. and we didn't, either," Killfoil says. payer." And he bought three books on for Brenda Daily of San Francisco. In The tough-guy approach hasn't worked. Despite all the fear about audits, tax- surviving an audit. Feeling confident, he 1987, she and her husband hired a tax Evidence gathered by the General Ac- payers sometimes fare surprisingly packed his records into boxes, grabbed attorney to handle the IRS audit of their counting Office and the IRS suggests well. Look what happened to the Lanes' the daily-expense diary he keeps and 1985 return. He managed to whittle that audits often target the wrong peo- $330,000 tax bill. They think the agency hauled them down to the IRS office. The their tax bill to $5,000 from $20,000. ple. The scoring system is supposed to didn't believe their charter-boat busi- books told him it was safer to face the Then, a few years later, the IRS came snag likely tax cheats, but 5% of all tax- ness was legitimate. Terrified, they IRS on its turf - that way, auditors won't back for another audit, after the couple payers audited end up getting refunds. hired a tax lawyer to face off with the see if you have an extravagant lifestyle, had divorced. She called the same tax What's more, a small chunk of audits IRS - and wound up winning The IRS which might lead to more questions. attorney. One thing led to another. A yields the biggest rewards. A quarter of got zilch, Benjamin Lane says. "We For every question the IRS asked, Ca- year later, she married her attorney - one percent - 525 - of the 209,506 au- didn't do anything wrong." ruso had an answer - and documents Frederick Daily, author of Stand Up to dits completed by the IRS in 1992 gener- Then there's Phillip Caruso, a Wil- to back it up. And the IRS did find a ml- the IRS and the lawyer who saved the ated 34% - $1.1 billion - of all taxes mington, N.C., photographer who takes nor error: Caruso had listed his interest Lanes a fortune. and penalties assessed. pictures used to promote films, includ- income from his individual retirement "I was afraid I'd have the IRS around "A lot of (audits) produce no change ing Backdraft. account as $650 instead of $750. for life," Brenda Daily says. "Instead, I in taxes or very little," Killfoil says. "If When Caruso learned last year that "It mentally drained me for a day or got him" THURSDAY, APRIL 15. 1993 USA TODAY 2/2 81 Illness fells juror in King case nmates Some say a verdict hreaten 'not close' hostage By Sally Ann Stewart USA TODAY Ohio sends in LOS ANGELES - The judge in the Rodney King beating tri- National Guard al triggered a new round of speculation Wednesday when he summoned lawyers and de- By Joyce Harris Jones fendants to court. USA TODAY "You could hear the hearts beating in there," says Dan Ca- Gov. George Voinovich sent By Chris Kasson, AP plis, lawyer and TV commenta- 500 Ohio National Guard CURIOUS: Mary Hoover and tor for several NBC stations. troops Wednesday to a maxi- her children, Christa and J.B., But U.S. District Judge John mum security prison in Lucas- peer at the prison. Hoover's Davies quashed hopes for a ville after inmates threatened husband, a fire chief, has been verdict when he said one of the to kill one of eight guards held assigned duty in the prison. Of- jurors was ill and the panel hostage since Sunday. ficials say he's not a hostage. ending deliberations early. After the inmates' deadline Jurors are deciding whether 1, authorities said they four police officers intent could not confirm the condi- ly violated King's civil rights tion of the hostages. two years ago. But negotiations continued, Cleveland Davies didn't say which of and authorities sent in food - Ohio the 12 was sick, but he said the tuna, cheese, sandwich meat, juror went to a doctor. peanut butter, fruit and bread 71 KCBS-TV said a female juror - along with water and medi- had stress-related hives but cine for two hostages. Cincinnati would be back today for the 0 Supplies and electricity had 40 sixth day of deliberations. been withheld since the siege By Gary Gardiner, AP "I think it may mean that ju- began on Sunday. RIOT GEAR: Ohio National Guard troops dressed in riot gear as- miles rors are not close to a verdict," Delores Brown, spokeswom- semble Wednesday at the Scioto County Fairgrounds before Lucasville says Kristin Jeannette-Meyers, an for the prison, said negotia- joining law-enforcement officers at the Lucasville prison. The a lawyer covering the trial for tions were active and continu- Guard was activated by Ohio Gov. George Voinovich. USA TODAY cable's Court TV. "If they were ing at the 22-acΓe facility, 70 near to a decision, wouldn't miles south of Columbus. scrawled on a banner hung Ohio Corrections Director local life. they have just hung in there? The troops joined State High- from a window. Reginald Wilkinson also re- The elementary, middle and The wait is raising specula- way Patrol and corrections of- The inmates gave officials quested Lanson Newsome, a high schools have been closed tion the jury may be ficials already on the scene. 3½ hours to meet 19 demands, deputy commissioner at the to 1,241 students since the cri- locked. "If it's a hung jury, it's "It's a precautionary mea- which, according to published Georgia Department of Cor- sis began because roads to the still a victory for my client," sure," says Brown. "The high- reports, included the dismissal rections, to help negotiators. schools run too close to the said Ira Salzman, lawyer for est priority of the governor, of Warden Art Tate and most Newsome, 48, helped quell prison, says Superintendent suspended Sgt. Stacey K prison officials and other law unit supervisors, better jobs for disturbances at the Georgia Douglas Booth. Should the jury deadlock, de- enforcement agencies is to black inmates and contact with State Prison in Reidsville in the "Until it's over, we're proba- fense lawyers don't expect a minimize the loss of life." the media. Prison officials 1970s and at Rivers Correction- bly are not going to go in," retrial. Prosecutors haven't Seven inmates have died, all won't talk about demands. al Institution in Milledgeville in Booth says. said what they would do. presumably killed by other in- The only injury Wednesday 1989. He was also part of a Na- School officials even post- University of Southern Call- mates, officials say. An esti- occurred when a law enforce- tional Institute of Corrections poned the Monday opening of a fornia law professor Erwin mated 450 prisoners are barri- ment helicopter crashed. The fact-finding team sent into the new high school one-half mile Chemerinsky says it's too / caded in a cell block. pilot and a passenger were Montana State Prison after ri- from the prison. Instead, 40 to to talk of a deadlock. The threat to kill a hostage slightly hurt; an officer broke ots there in 1991. 60 family members of the hos- The jury in last year's trial was spotted midmorning. his leg running to the crash. The siege is also disrupting tages have been staying there. took seven days to acquit the officers on all but one charge. Also Wednesday: Jesse Jackson called for "a renewed commitment to justice and disarmament" by the Clinton administration. He told USA TODAY "Rodney King is a symbol of a deeper malady in the Justice De 1- ment. We need to assure peo- ple police brutality will end." Koon and Salzman arrived at court wearing Groucho Marx glasses and mustaches. A helicopter practiced landing on the courthouse roof. Defense lawyers say they've gotten death threats and have met with U.S. marshals about departure after the verdicts. THURSDAY A spokesman said Califor- APRIL nia Gov. Pete Wilson and Da- 15, 1993 USA vies have talked frequently TODAY about how to release the ver- dicts, and there's no big for holding the verdicts after they're reached. Police, residents wait, 8A 38. Probe of jail deaths wins praise By Mark Mayfield and called for a federal probe. than suicide." USA TODAY A3 All of the hangings were ruled The last comprehensive Justice Depart- suicides by Mississippi state ment count found 284 suicides by local-jail Civil rights leaders Wednes- pathologists, but the families inmates in the USA in 1988, nearly all by day praised Attorney General of some dead prisoners are hanging But prison experts say hundreds Janet Reno's order of a feder- questioning whether the of suicides may have gone uncounted. A al probe into dozens of hang- deaths were actually slayings, new report is expected this year. ing deaths in Mississippi jails. covered up by officials. In Mississippi, the parents of the dead "We're excited about it. It At the least, they charge prisoners called the federal investigation a shows she means business," that conditions in the jails and major step in resolving the troubling ques- said the Rev. Joseph Lowery, neglect led to suicides that tions about the hangings. head of the Southern Christian USA TODAY could have been prevented. "We're just hoping it will be a thorough Leadership Conference. "Mis- RENO: Questions "Inmates are supposed to be investigation and a truthful one because I sissippi is not alone. Hopefully number of deaths protected in jails, even from know that my son was murdered," said Es- this investigation will lead to a themselves," said Lowery. ther Quinn, mother of Andre Jones, 18. look at this problem in many other states." James Ingram, Mississippi's public safe- Jones, a black youth from Jackson, Reno directed the Justice Department ty commissioner and a former FBI agent, Miss., was arrested on misdemeanor traf- to investigate the "suicide" hanging deaths said Wednesday his office will cooperate fic charges Aug. 22. A few hours later, he of 47 prisoners in local jails and state pris- with the federal probe. was found dead in a Simpson County jail, ons during the past six years. "How could "If any other evidence is uncovered, hanging by his shoelace. His death brought that many people die?" she asked. we'll be pleased to follow the trail," said national attention to the suicides. Last month, the SCLC and a coalition of Ingram. But "we've looked at these jail "We can't really feel at peace until my other groups held hearings on the deaths hangings and we have no evidence other son has been vindicated," said Quinn. Fear of rape in jail delays Koresh surrender By Mark Potok cles on the Branch Davi- phone. He said the cult ists dead, he said he would leave after USA TODAY dians in the Waco Tribune- leader is working on a reve- radio stations broadcast a 58-minute Herald quoted several for- latory manuscript about sermon. He reneged, saying he was WACO, Texas A key obstacle to mer members as saying the "seven seals" discussed awaiting a message from God. cult leader David Koresh's surrender Koresh had sex with girls in the Bible's book of Reve- Last week, Koresh told DeGuerin he has been his fear of being raped in pris- as young as 12. lations, which are said to would leave at the end of the Davidian his lawyer said Wednesday. Koresh has told male fol- herald the end of the world. Passover, Tuesday. He later told the "Wouldn't you be concerned if some- lowers he had rights to DeGuerin said Koresh FBI he had made no promises. body said you're going to be identified their women and has as wants his manuscript given In an interview, DeGuerin said Kor- and publicized as a child molester?" many as 19 "wives," for- to two religious scholars. esh's concerns about prison rape had asked lawyer Dick DeGuerin. "These mer members have said. The attorney said Kor- been allayed after DeGuerin spoke to concerns about what would happen in He reportedly kept a Reuters esh has promised to surren- McLennan County Sheriff Jack Har- jail were raised early on." "House of David" - a KORESH der when the work is com- well, a participant in negotiations. Many prison inmates are known to group of young girls who plete and that he expected "Sheriff Harwell has assured me he'll despise child molesters. Frequently, wore Star of David necklaces signifying it would take "at least a week." take all measures necessary to ensure molesters are raped by other prisoners. they were future Koresh wives. But Koresh has made promises be- the safety" of prisoners when the 47- Koresh hasn't been accused officially Also Wednesday, DeGuerin spoke fore. Two days after the raid that left day-old standoff ends, DeGuerin said. of child molestation. But a series of arti- with Koresh for about an hour by tele- four federal agents and at least two cult- "David has confidence" in Harwell. Gonzalez, who frequently raps the Fed for being too se- cretive, said Wednesday: There are 34 staff mem- Gonzalez: bers at the Fed's board of gov- ernors in Washington who will earn more than $125,000 this Fed biased year. One is a woman and one is non-white. At the 12 Fed district in hiring banks, 82 staff members earn more than $125,000 a year. Fourteen are women and three By Mark Memmott are non-white. USA TODAY Fed Chairman Alan Green- span has said the Fed has trou- The Federal Reserve "con- ble recruiting and retaining fe- tinues to exclude women and male and minority minorities from almost all its professionals because of com- top positions" the chairman of petition from the private sec- the House Banking Committee tor, where salaries are higher. said Wednesday. Gonzalez also criticized the And Rep. Henry Gonzalez, Fed for planning 4.8% average D-Texas, called on President salary increases for Washing Clinton "to urge the Federal ton staff this year. Reserve to comply with your plans to make the government open to all Americans." The independent Fed must "be made to understand that diversity and competence can go hand-in-hand," Gonzalez wrote in a letter to Clinton. Fed spokesman Joseph Coyne said Wednesday that of- ficials were aware of the letter THURSDAY, APRIL 15, 1993 USA TODAY and had no comment. There was also no immedi- ate response Wednesday from the White House. 89 ELSEWHERE IN THE WORLD WASHINGTON A QUICK LOOK AT WHAT'S GOING ON IN THE NATION'S CAPITAL Tsongas: Reforms need doctors' views Former presidential candidate Paul Tsongas on Wednes- day said the Clinton administration should take doctors' concerns into account to make health-care reform succeed. He said he would have advised the administration to bring groups such as the American Medical Association into Qatar News Agency via Reuter discussions early so they have an emotional, as well as a TREATED LIKE ROYALTY: George Bush and Sheik Jaber al-Ahmed al-Sabah, right, the emir of Kuwait. financial, stake in making reform work. "If you set up a system where doctors feel they're imposed upon, 'Operation Love Storm' particularly because they've not been included in negotiations, you greets Bushes in Kuwait then have thousands upon thou- sands of physicians who have no Whirling sword dancers, flower-bearing girls and thou- self-interest in the system work- sands of cheering children greeted George Bush on ing" Tsongas said. "And that's like Wednesday as Kuwaitis launched "Operation Love Storm" having termites in your system." to welcome the man who helped liberate their country. The American Medical Associa- The party started as soon as a chartered blue and white tion unsuccessfully asked for rep- Kuwaiti Airways jetliner landed, bringing the former p resentation on Clinton's health- dent, his wife, Barbara, and other guests on his first visit to By Tim Dillon, USA TODAY care task force. the oll-wealthy emirate. TSONGAS: Doctors Tsongas, who has been treated The former president who organized Kuwait's liberation should be 'allies.' for lymphoma with a bone marrow from Iraqi troops in 1991 took on a rock star aura as police transplant, recently completed a and teachers restrained children from running out to try to month-long radiation treatment for another recurrence. touch his car. Kuwait newspaper columnists dubbed the fes- Working part time for his Massachusetts law firm and tivities "Operation Love Storm." part time with former New Hampshire senator Warren As president, Bush assembled the 32-nation Western and Rudman on reducing the deficit, Tsongas has also signed on Arab military coalition that defeated the Iraqi forces. The with a group of hospital and pharmaceutical company exec- Bush family is staying at the emir's Bayan Palace, on the utives called the Healthcare Leadership Council to endorse capital's southern outskirts. the managed competition form of health reform. "This group should be seen as a group of allies," in the AUSCHWITZ NUNS: A group of 14 Carmelite nuns is White House discussions, Tsongas said. "There hasn't been preparing to leave the convent at the former Auschwitz a heck of a lot of reaching out." - Leslie Phillips Nazi death camp in Poland after an appeal by Pope John CONSERVATIVE ASSESSMENT: On President Paul II, officials said. The pope's letter follows more than a year of tension between the Catholic Church and Jewish Clinton's 85th day in office, conservatives panned his per- groups, which want to preserve the camp as a Holocaust formance at a National Review forum. Said William Ben- memorial. The World Jewish Congress threatened to boy- nett, a possible GOP candidate in 1996: "He is talented, he is cott next week's commemoration of the 50th anniversary of voluble, he is personable, but the American people increas- the Warsaw Ghetto uprising, the rebellion of Polish Jews ingly have the feeling he cannot be trusted. He loves against Nazi occupiers, unless Catholic leaders expedited great big government and doesn't think we have enough of it. He loves taxes and doesn't think we have enough of the closing of the convent. (Holocaust museum, IA, 2A, 5A) them." Bennett had nicer things to say about first lady Hilla- MIDEAST SUMMIT: ry Rodham Clinton: "Overall, an asset," he said, saluting her After their Wednesday summit in the Egyptian town of Ismailia, Israell Prime Minister Yitz- work running the health-care task force. hak Rabin and Egyptian President Hosni Mubarak ex- GAY MARCH: President Clinton is likely to miss the up- pressed hope that Middle East peace talks can resume in coming gay and lesbian march on Washington, making a Washington April 20. Israel appeared to end its ban on nego- tiating with Palestinians who live in annexed East Jerusa- rare weekend trip to attend a Senate retreat in Jamestown, lem when Rabin indicated Israel might allow Jerusalem- Va. Communications director George Stephanopoulos said based Faisal al-Husseini to sit at the negotiating table. The Clinton was likely to attend the retreat for at least part of the April 24-25 weekend. Stephanopoulos said Clinton, who Israeli government's previous position: allowing negotiators has long been reported unlikely to attend what could be a from East Jerusalem might give the wrong impression that the annexed territory was up for negotiations. politically troublesome event, would look for other ways to mark it, such as by sending a written message or meeting ITALY CORRUPTION: Former Italian prime minister with homosexual leaders at the White House. Glulio Andreotti appeared before Italy's Senate to answer PRESIDENTIAL COMICS: President Clinton con- charges that he had colluded with the Mana. The country is fessed at a summer jobs conference that he botched his first embroiled in a widening scandal over political corruption. business deal when he was 13 years old, though he didn't know it until years later. Clinton said he set up a comic book stand and "made more money than I'd ever had in my life" selling off two trunks of comics. "If I'd saved those trunks, they'd be worth $100,000 today," he joked, a reference to the high prices of some old comics. THURSDAY, APRIL 15. 1993 USA TODAY Yeltsin to resign if voters fail him By Jack Kelley the president will take more USA TODAY decisive action," Yeltsin said. But many aren't sure MOSCOW - Russian Pres- whether Yeltsin can win the ident Boris Yeltsin said support of 50% of all eligible Wednesday that he'll resign if voters - not just those who he loses an April 25 vote of actually vote - the standard confidence and citizens re- set by the Congress. fuse to hold early elections. "It's certain people want At a campaign stop in Mos- early elections, but the big cow, Yeltsin told student sup- question mark is Yeltsin," porters, "You are being asked says political analyst Anatoly to choose not between the Porokhovsky. "No one is will- Congress and the president. ing to predict the outcome of "The choice is between two that race." strategies: Will we continue to Recent polls show barely move forward or put our- 50% of the electorate will selves in the hands of those vote in the referendum. Of who want to roll back re- those, 43% say they'll back forms?" Yeltsin. On Wednesday, Yel- Yeltsin's power struggle tsin would not say whether with Russia's hard-line Con- he'll resign immediately if he gress of People's Deputies - loses or wait until presiden- which opposes his economic tial elections in 1996. Also: reforms - comes to a head Twelve Communist lead- at an April 25 national refer- ers accused of plotting the endum. August 1991 Soviet coup Voters will be asked if they opened their trial by chal- approve of Yeltsin's leader- lenging the authority of Rus- ship and reforms, and if they sia's Supreme Court to hear want early elections for the their case. presidency and the commu- The defendants, including nist-dominated Congress. former Soviet prime minister Wednesday, Yeltsin vowed Valentin Paviov and KGB to accelerate his reforms - chief Vladimir Kryuchkov, which led to 2,600% inflation are accused of treason and last year - introduce a new could be sentenced to death if constitution and fight growing found guilty. The trial is ex- corruption. pected to last several weeks. He also threatened to sack Russian officials said last Vice President Alexander week's blast at a Siberian nu- Rutskoi, a foe who has openly clear reactor released small criticized Yeltsin's reforms. amounts of plutonium, but "If there is support for the not enough to warrant new president in the referendum, safety measures. THURSDAY, APRIL 15, 1993 USA TODAY 91 Clinton too slow on L.A. The Rev. Jesse Jackson on Wednesday talked with White House aides about his appeal to President Clinton on Los Angeles and the need for an urban initiative. His remarks here were edited from a subsequent meeting with USA TODAY's editorial board. An appeal to Clinton I wrote President Clinton an ap- peal about a month ago to assume an urban policy initiative to begin to shift focus away from the court- room to the abandoned areas where rising tension was evident. By H. Darr Beiser, USA TODAY My feeling was unless he moved early on, our destinies were in the hands of 12 jurors End the brutality who we don't know and who are without accountability. There have been 47,000 cases ple's humanity, and they simply I urged the president again that of police brutality which have lashed back. Jackie (Jackson's we meet to talk this through be- been registered at the Justice De- wife) and I have three boys. All cause there's this heavy emphasis partment level since 1986, ac- three have looked down the bar- on law and order and almost no cording to Rep. John Conyers' rels of the guns of police. emphasis on justice and jobs. committee on criminal justice. So my first appeal is to Attor- Since 1 had sent the letter a The major rebellions in Watts ney General Janet Reno and L.A. month before, White House chief and Detroit and Chicago and Police Chief Willie Williams to as- of staff Mack McLarty had to ad- Newark were never precipitated sure people that the police brutal- mit the circumstances would've by raw poverty - as in there are ity in our country will end. That is been different if they had taken so many people unemployed, as reasonable as saying lynching the initiative a month ago, but they exploded. In each instance, will end. Police brutality must now they're in the red zone. according to the Kerner Commis- end. If there are any violations, They, like everybody else, are sion report, and since that time, it dial 1-800-JUSTICE. That will locked into the disposition of the was always some act of humilia- end. It's illegal. It's immoral and jury. If they take too high a profile tion that finally took away peo- it's provocative. now, they can be accused of inter- fering with the process. If they do nothing, they can be accused of having waited too late. Major urban policy statement needed So, like everybody else, they're reduced to spectators with some Rebuild L.A. got kicked off with damentally, there is no plan. front-side preparation to protect lots of hype. They say we need This is the moment for a major the innocent from a social explo- 75,000 to 90,000 jobs. It created urban policy statement. This is sion. 5,000, many of those grocery the moment to save urban Ameri- That's why early on, in addition stores. Grocery stores come when ca. On President Clinton's to assuring people of justice, there you have a predictable base of stimulus package, it is a contra- must also be an assurance of re- shoppers based upon support diction to be a fiscal conservative ducing easy access to guns and checks, in many instances. Not and not support it. The stimulus drugs, since the civilians are now one new plant has been built in package will save money, create more heavily armed legally than the last year. There's still 45% to jobs and taxpayers, which is all the police. It cannot come up as 50% unemployment for black and related to the welfare burden. It is just an anti-police situation. Peo- Hispanic youth. There is no devel- going to cost more to pay people ple need police. They don't need opment bank. Forty percent of to not work than to pay people to police brutality, but they need po- those in kindergarten do not ex- work. So we need a far bigger lice. pect to finish high school. So, fun- stimulus package. THURSDAY, APRIL 15, 1993 USA TODAY 1/2 92 Dealing with hopelessness When Congresswoman Maxine Waters and I stayed Adult supervision, organized recreation, disciplined down in the Imperial Courts housing projects last hours, balanced meals, doctors, lawyers, recreation, year, I talked with kids and their parents all night telephone, television. So something has gone awry long Some of them, for three generations deep, had when there's more relief and security in jail than in not seen anyone finish high school. None of them had the community, and it costs SO much more. an insurance policy or ever owned a piece of land and And when people lose family stability and hope for had never filled out an application to college. And having a job and people become idle, what was once a their parents, once their kids got to the downtown ju- [temporary] problem becomes a [lasting] condition. venile detention center, were relieved that they were Problems have deteriorated into conditions. Solutions less likely to be killed. Now I went to Dorsey High, and and visions need [to offer] healing. Many people now there were around 5,200 kids there. The detention are using drugs as anesthesia for their pain. Guns con- center had around 34,000. They spend about six or trol their territory. It's a substantial deterioration, thus seven times more to jail them than to educate them. a kind of spiritual surrender. Young people don't look That's when I came up with the notion that for many forward to living to become 20, don't dream of a fam- of them, jail is a step up. Once they're in jail, there are ily and vacation. Many of their dreams have been no more drive-by shootings. Once they're in jail, it's crushed There is a spiritual surrender and a kind warm in the wintertime, cool in the summertime. of ethical collapse. Comparing King and Denny cases Russia parallel? What people saw the first time is four young blacks left their Part of the urgency to meet was that those who beat Rodney home and saved Denny from with Boris Yeltsin and why Secre- King walked. The assumption is them and took him to the hospital, tary of State Warren Christopher these guys [accused of beating and a black doctor performed is meeting with the "big seven" truck driver Reginald Denny] surgery on him. And then there's right now is because we fear may get some time. That would all the black-Korean conflict and something explosive is going to be that kind of black/white com- all the anguish behind how the happen unless we move. So we're parison that has no regard for the Haitians have been treated. Well, not having a voluntary rebuild- details. It's just like one group before the Supreme Court, the Moscow plan. We know that you walks; another group goes to jail. guy arguing the case for the Hai- relieve fears with hope, and prob- I don't want to ask the press to tians was Harold Koh, a Korean- ably with resources. Christo- alter its basic character, but there American lawyer. That part has pher says we must put forth a are some hopeful stories to be to be told, too. plan of security, not charity, to told. Young people should not It's almost as if the media have ease the pain of Russian children conclude all whites are racist on their own need. No riot and and the unemployed for health the basis of the Rodney King beat- their media budgets will be care and housing. That we must ing. After all, had not George Hol- messed up. You've got all these provide for students, business liday (who is white) filmed it and people you wouldn't let take off. people and scientists free market taken it public, we would never They're all dressed up and there's training. know Rodney King ever existed. no party? Since you all are look- Never heard of that for urban It seems to me that you all have ing for something to do in the America. We must provide for not projected him enough. Now meantime, there really are three them long-term aid, trade, credits, since that time, he's had threats stories that say something about industrial conversion and the re- and has bodyguards. The revul- this idea. The redemptive men- building of their infrastructure. sion against him by whites is tell- tion of this to me is George Holli- We know how to rebuild cities. ing On the other hand, four young day, and the four blacks, and the We're doing one right now in Mos- blacks beat Denny and should not doctor who saved Denny, and cow. We must take the aban- have done it. They admit them- Koh. Only the most angry don't donment of urban America just as selves they shouldn't have done it. want to hear those examples be- seriously, and I'm convinced that President Bush referred to them cause it messes with their simplis- people are capable of being re- as "savages," trying to appeal to tic view of white/black, black/ vived. People's hopes can be re- white fear. What's not focused on brown. vived if there's a plan to do SO. THURSDAY, APRIL 15, 1993 USA TODAY 2/2 93 De-demonizing Iraq On another subject, USA TODAY Understandably, the Clinton admin- finds a need for thoughtful new istration is reviewing its regional policies policies In the Persian Gulf. with great caution. The president has tried to depersonal- After the gulf war, President Bush au- ize the USA's relationship with Iraq, thorized $15 million for a clandestine ef- stating that its regime will be judged by fort to overthrow Iraqi President Sad- its actions, not its bombast. But beyond dam Hussein. A year later, he raised it to that, it's hard to change foreign policy, $40 million. Now, reports say President and wrong to change it abruptly. Clinton will cut it to $20 million. The goals are easy enough. Baghdad Such uncertainty - indeed, the very must comply with the U.N. resolutions. presence of the campaign itself - sug- Tehran must abandon its nuclear quest. gests that Iraq, like Iran, continues to And both capitals must be persuaded to confound Washington policymakers. leave their neighbors alone. Partly, the problem is that the region's But such simple ambitions are desper- leaders stir deep emotions. Bush called ately hard to realize. They require deli- Saddam "worse than Hitler," making a cately crafted new policies that promise balanced approach almost impossible. economic aid as well as economic hurt. What policy can accommodate Hitler? Clinton was right to abandon the last Nor can Iraq be looked at in isolation. administration's crude rhetoric. He The growing power of neighboring Iran, should find it easy to abandon the crude which is rebuilding its army, fomenting overthrow program, too. terrorism and seeking nuclear weapons, They are the same thing - clumsy complicates U.S. policy. gestures of no good purpose. THURSDAY, APRIL 15, 1993 USA TODAY 94 Value-Added Tax Is Reconsidered A, Health plan: White House takes another look at levy to help pay for universal care. It would potentially hit hardest at the poor and the middle class. By EDWIN CHEN, TIMES STAFF WRITER WASHINGTON Anxious to find new money to pay for sweeping health care reforms. the White House is taking another look at a national "value-added tax." a potentially controversial levy that President Clinton appeared to have ruled out in February. Administration officials said Wednesday. The Administration is drawn to the idea by its simplicity and its potential for helping pay the enor- mous sums needed to guarantee health coverage for all Americans. Sources said that White House analysts also were intrigued by a nationwide poll last month which found that 58% of the public would support a 3% value-added tax if it were earmarked for health care reform. The political costs to Clinton, however, could be great. By its nature, a value-added tax is re- gressive, potentially landing hard- est on low- and middle-income families whose tax burden Clinton promised last year would be eased if he were elected. The President has since retreat- ed from that promise, citing unex- pectedly higher federal budget deficits. He already has proposed WASHINGTON EDITON / LOS ANGELES TIMES Thursday, April 15, 1993 financing part of his economic package with a national energy tax, which would raise the tax burden of middle-income Ameri- cans. White House Communications Director George Stephanopoulos said Wednesday that a value-add- ed tax is still among the array of prospective financing sources un- der consideration by the Task Force on National Health Care Reform as it begins to fine-tune various options to be presented to Clinton. "The working groups are looking at it but the President has not made a decision." Stephanopoulos said. "I assume that he will consid- er the argument if it is presented to him." Alice Rivlin, deputy director of the Office of Management and Budget. told a breakfast meeting of Please see TAX, A5 1/2 95 WASHINGTON EDITON ANGELES TIMES Thursday, April 15, 1993 2/2 NATION TAX: White House Reconsiders Value-Added Tax to Pay for Health Care Continued from A1 Clinton Administration could ex- less money, of course, but they majority of the public would sup- mean to float a trial balloon. It Word of the possible new tax the National Assn. of Manufactur- pect strong opposition to the idea might make the tax easier to sell port a 3% tax for health care is not now under consideration. If surfaced as Senate Republicans ers that such a tax "is clearly a because of the regressive nature of politically. reform was conducted by the Cali- we start considering it, I'll tell continued to spar with the White possible candidate." the tax. The President and Mrs. Clinton fornia-based Henry J. Kaiser Fam- you." House over Clinton's proposed The issue is just one of hundreds For instance, just last week the this week are undergoing many ily Foundation and Louis Harris & But the idea was thrust back in $16.3-billion economic stimulus that the President and First Lady U.S. League of Women Voters hours of briefings on literally hun- Associates, a leading polling firm. the limelight Wednesday by Ad- plan, which faces a major test next Hillary Rodham Clinton, who endorsed a bevy of tax increases to dreds of health care reform options Foundation officials later briefed ministration officials. week when the Senate again votes chairs the task force, must decide pay for health care reform. includ- that have been assembled by the task force members on the find- In her remarks to the manufac- on whether to end a GOP filibuster in the weeks ahead. They plan to ing raising income taxes. But the 500-member task force since Jan. ings. unveil a proposal to overhaul the turers, Rivlin acknowledged that that has stalled the legislation. league ruled out a value-added tax 25. Clinton first raised the idea of a extending health care to the unin- Clinton said at a summer jobs health care system sometime in because, the organization said, it Foremost among the decisions value-added tax in February, in May. sured clearly would "take some conference in nearby Arlington, would unfairly burden poor and that must be made are how soon response to a question at a town more resources, and a VAT. or a Va., that the bill would give "a A value-added tax is imposed on middle-income families who must coverage should be extended to the hall meeting in Chillicothe, Ohio. general sales tax, has a good deal to little goose" to the nation's eco- products at each stage of produc- spend a higher part of their income 37 million uninsured Americans- He did not mention it directly in recommend it. Rivlin also nomic recovery but Republicans tion and is ultimately passed on to on consumable items subject to the and where to find the $30 billion to connection with financing health conceded that such a tax can hit retorted that it would merely drive consumers in the form of higher tax. $90 billion that universal coverage care reform but as possibly part of prices. It is sometimes called a hardest at the poor and thus "has up the budget deficit. To ease the burden on those would cost annually. according to a broader change in the way the to be offset or designed in some "I don't have all the answers but national or general sales tax, al- families, such items as housing, Administration analysts. government raises money. though its application is different way so that it is not too painful to I know this: Doing nothing is not food, education, utilities or medical While a value-added tax might "I do believe that America, at from state and local sales taxes, the lowest-income groups." the answer," Clinton declared. costs might be excluded from the be controversial politically, the another time, and maybe not too Aside from the value-added tax, which are calculated at the time of Elsewhere, House Republicans tax. White House sees merits in its long in the future. will debate purchase and collected on top of the White House is considering 20 borrowed a favorite Clinton tactic "The more you exclude, the less simplicity, sources said. A 3% tax whether we want to shift the listed prices. or more proposals for tax increases, by announcing that they would regressive it becomes," said ana- could raise as much as $60 billion a nature of our tax system." Clinton including so-called sin taxes on take their attack on Clinton's plan Most nations that compete with lyst Edie Rasell of the Washing- year, according to the Congres- said. the United States economically tobacco and alcohol products, as directly to the public in a series of ton-based Economic Policy Insti- sional Budget Office. Asked about the remark after have value-added taxes. But the well as a cap on the premiums that meetings that they are planning tute. Such exclusions would raise The nationwide poll that found a the meeting, Clinton said: "I did not insurers may charge. across the country Saturday. King Juror's Illness Stirs a Brief Frenzy Trial: Parties convene nervously in court, only to learn that a visit to doctor will delay deliberations. By JIM NEWTON Davies informed prosecutors and and DAVID FERRELL defense attorneys that he had TIMES STAFF WRITERS granted permission for the juror to see the doctor, accompanied by a Hundreds of reporters descended U.S. marshal. With the issue thus upon the federal courthouse while concluded, Davies grinned at the helicopters took to the air over- lawyers and said: "Have a good head Wednesday after the judge in afternoon." the Rodney G. King civil rights The courtroom erupted in ner- trial summoned lawyers and de- vous laughter as reporters dashed fendants to his courtroom for an for the exits to alert their news afternoon announcement. organizations-many of which The accused officers fidgeted were broadcasting live reports nervously in their seats as U.S. from the courthouse-that the District Judge John G. Davies took much-anticipated verdicts still had the bench and dropped his bomb- not been delivered. The jurors, who shell: A juror had requested to see a have been sequestered. left for the doctor. day before 2 p.m., having deliber- "There are no verdicts," Davies ated for just 3½ hours. told the packed courtroom. "But While the false alarm over the we do have a problem. One of expected verdicts created an ad- the jurors appears to have become renaline rush among those careful- ill and needs medical attention. ly following the historic trial, resi- The juror has made a request to see dents in many corners of the city a family doctor this afternoon." Please see KING, A6 WASHINGTON EDITON / LOS ANGELES TIMES Thursday, April 15, 1993 1/2 97 K NG: Ju or Excused for A ternoon to Visit Doctor Continued from A1 from the building in the future. seemed oblivious to the all commotion. Update: The King Trial "Some people really seem to enjoy the tension," Paul At the intersection of Florence and Normandie R. DePasquale, the lawyer for Officer Timothy E. avenues, the flash point of last year's riots, all was A look at the developments Wednesday: Wind, said later of Davies. quiet. At a gas station there, two men pumped gas and Davies told lawyers that he was not sure how chatted about Tuesday's Dodger game. A woman Word of a forthcoming "announcement" by U.S. serious the juror's ailment was, and he did not disclose standing nearby was asked by the only reporter who District Judge John G. Davies sent hundreds of reporters scurrying to the federal courthouse in which juror it was. showed up whether she had heard rumors about anticipation of a verdict, but it turned out to be a Davies' handling of the issue drew some fire from possible verdicts. "What verdict?" she said. false alarm. The judge wanted to report that defense attorneys in the case, who complained that he At the Imperial Courts housing project in Watts. it deliberations would be halted for the afternoon so a had allowed speculation to run wild about possible was much the same. But for the presence of two news sick juror could get medical attention. verdicts when he could simply have told lawyers that reporters, those who had gathered outside in the warm Among those following the historic trial, the a juror needed medical attention. April sunshine would have been completely unaware verdict rumor created an adrenaline rush. Local "I really think this was unnecessary." Braun said. of possible developments. television stations went live. Media helicopters "He could have just issued an order and kept this all Small children pedaled their tricycles on the grass hovered overhead. But for most of the city, there from happening." and filled a small pool with a garden hose. Young men was no panic, and businesses that had shut down If the juror is too sick to continue, Davies could allow sat on a sunny bench, sipping malt liquor and playing Monday. when the last verdict rumor circulated, the panel to continue with 11 members. Although the dominoes. Drying laundry flapped in the breeze and an remained open this time. federal rules do not specifically address the question of ice cream truck made its rounds. In a separate development. Dist. Atty. Gil Garcetti whether one of the alternate jurors could be added to said that the remaining charge against Officer the 11 remaining panelists, lawyers said they might be F or the most part, business continued as usual Laurence M. Powell. left in limbo after the jury in allowed to draft one of three alternate jurors if both throughout the city, despite the brief midafternoon Simi Valley deadlocked over whether the officer spike in anxiety levels. Venice advertising agency used unnecessary force against King. will be sides agreed to that idea. Those alternates, like the 12 Thursday, April 15, 1993 Chiat/Day, which closed early on Monday when dismissed at his office's request, possibly this regular jurors, have been sequestered since late Friday. Garcetti said that because of the federal jury February. verdicts were rumored. stayed open this time and "there was no panic." a company spokesman said. trial, the state cannot retry him without subjecting him to double jeopardy. A number of retailers noted an afternoon sales I f one of the alternates were drafted, that could force deliberations to begin again, since none of the lull-among them the Fedco store on La Cienega, looted alternates have been allowed to attend the jury and burned last year but quickly reopened. A crowd were also fielding a greater than usual number of calls discussions that have been under way since Saturday. gathered in the discount department store's television from merchants anxious for what they figured would Braun said that if both sides agreed to use an alternate department to watch news bulletins. Employees were a be inside information in the hands of the police. juror, that person would be selected randomly. bit jittery about possible verdicts, acknowledged assist- "When all that was going on, the officers at Newton Despite the uncertainty about the ailing juror's ant manager Ed Parness, who said: "There was possibly Division were busy delivering a baby," reported a medical condition, jurors told Davies that they hope to a slight letup in business, but not that much." proud Capt. Jim Tatreau, "and that overshadowed any reconvene this morning at 8:30. In Koreatown. one of the communities hardest hit by last year's unrest, merchants reported that business news about a possible verdict." In a separate development, Dist. Atty. Gil Garcetti But that was not the case at the Edward R. Roybal said that the remaining state charge against Officer has been down 40% to 50% since the jury began deliberating. But there appeared to be little outward Federal Building. where the chaos and suspense began Laurence M. Powell, left in limbo after the jury in Simi excitement over the sudden court hearing. mounting during the lunch hour when Judge Davies' Valley deadlocked over whether the officer used Most people already were prepared for the verdicts, clerk began quietly circulating among the lawyers, unnecessary force against King, will be dismissed at telling them to be in court at 1 p.m. Meanwhile, the his office's request, possibly this Friday. merchants noted. Many had stocked up on such staples as rice, canned food and Korean-style instant noodles. wire services notified the media about the scheduled Garcetti said Wednesday that the decision to drop Now they were going about their daily business, albeit proceeding. the charge was made months ago. Because of the with a weary stoicism. When court convened, U.S. Atty. Terree A. Bowers federal jury trial, "Legally we will be obligated to do WASHINGTON ANGELES TIMES "What can we do but wait?" asked Charles Yoon and the head of the Justice Department's civil rights so, because it's double jeopardy," Garcetti said. "Even from his metal folding chair outside a key shop in a division were in attendance. fueling speculation that if we wanted to we couldn't try him again." mini-mall parking lot. an announcement of the verdicts could be at hand. A hearing is scheduled Friday before Judge Stanley At Bourbon Street Liquor. next door to a supermarket Some radio and television organizations went live to Weisberg, who presided over the first trial. A where a security guard was killed in a cross-fire of announce the news that Davies had convened the spokesman for the district attorney's office said bullets last spring. owner Jay Shim reacted to Wednes- afternoon session. and within minutes, helicopters prosecutors would move to dismiss the charge at that day's false alarm by citing a Korean proverb: "When were broadcasting aerial shots of the courthouse. hearing if the federal jury has returned its verdicts by you get frightened by the sight of a turtle, you become Then, just as the anxiety crested. Davies was forced then. If not, prosecutors will move to continue the startled even when you see the top of a hot pot." to order a one-hour delay in the announcement hearing until after the federal case is over. At five inner-city police divisions-Southeast, because one of the defense lawyers. Harland W. The day started Wednesday on a strange note, when Southwest, Hollywood. Rampart and Newton-and at Braun, was having a pasta lunch in Chinatown. one of the defendants, Sgt. Stacey C. Koon, and his headquarters downtown. officials reported ordering no The extra time merely stoked the tension, and within attorney, Ira Salzman. arrived for the day's activities increased patrols or other actions in response to the the hour. the Federal Building was in an uproar. wearing Groucho Marx-style gag glasses with fake verdict rumor. "Lucille, I think that it's time to leave.' one federal noses and phony mustaches. The two suggested that Rampart Sgt. Michael Chamberlain said officers worker said to another as they boarded an elevator. "I they were attempting to inject some levity into the were trying to find out themselves if verdicts were in feel like I'm in a MASH unit." situation. store by monitoring news broadcasts. Braun and his client, Officer Theodore J. Briseno, Contributing to this story were Times staff writers "We probably did like a whole lot of other folks and were on hand when court reconvened at 2:07 p.m. Stephanie Chavez, Paul Feldman, Jesse Katz, K. Connie watched.' he said. Davies chided Braun for being away from the Kang, Eric Mainic, Dean Murphy, Nancy Rivera Brooks, Ted The only difference was that officers at Rampart courthouse and told him to stay within 10 minutes' call Rohrlich, Amy Wallace and Henry Weinstein. Russian Court Challenged as Trial Opens in Coup Plot By ELIZABETH SHOGREN and "[President Boris N.] Yeltsin, TIMES STAFF WRITER Beware the Trial and the Nation!" The trial, which is being heard MOSCOW The trial of 12 of the by a military tribunal of the Rus- most powerful men of the Gorba- sian Supreme Court in an austerely chev era, who face charges of high treason for their roles in the Au- decorated courtroom, is expected to gust, 1991, coup, commenced last weeks or months. As many as Wednesday with the accused au- daciously challenging the court U.S. PLEA TO ALLIES with one legal maneuver after U.S. asks major economic allies another. to increase aid to Russia. B5 Rather than acting like defend- YELTSIN THREAT TO QUIT ants on trial for a crime so grave Yeltsin said he will quit if he that it carries a possible death loses Russian referendum. A3 penalty, the men appeared relaxed and confident, talking among 120 witnesses, including former themselves, almost as if they were Soviet President Mikhail S. Gorba- back in the past, participating in a chev. are scheduled to take the Communist Party meeting. stand. Security is tight and press Outside, a group of fervent sup- coverage is limited to a handful of porters cheered them on, waving Russian reporters and one foreign red Soviet flags and holding post- correspondent. ers with such slogans as "Freedom The defendants-including the to the Patriots of the Motherland" Please see TREASON, A3 WASHINGTON EDITON / LOS ANGELES TIMES Thursday, April 15, 1993 99 TREASON: Trial Opens for 12 Men Who Opposed Gorbachev in Coup Continued from A1 But the defense did not stop there. and cherry red tie. When army Gen. former vice president, prime minister, Several of the defendants defiantly de- Valentin I. Varennikov, 69, was asked why defense minister, KGB chief and top Com- manded that the prosecution team be he was not wearing his uniform and munist Party and military officials of the dismissed because it is subordinate to numerous medals, he replied in a righteous Soviet Union-claim that their actions did Valentin G. Stepankov. Russia's chief tone: "My weapon is the truth. and I don't not constitute a coup but a last-ditch effort prosecutor, and Yevgeny K. Lisov, the want to influence the court with my to preserve their country, the Soviet head investigator in the case, who co-au- medals." Union, from certain collapse. thored a book on the conspiracy based on Public anger toward the leaders of the The defense's first tactic was to chal- their investigation. The book shows that coup has dissipated over the long months lenge the authority of the court itself. the prosecutor's office has a clear bias, the since Yeltsin clambered atop a tank out- Thursday, April 15, 1993 They claimed that Russia's Supreme Court defendants charged. side the Russian Parliament building. In a is not the legal heir of the Supreme Court Lukyanov rose, commanding the court- recent survey of Muscovites, only 1% of of the former Soviet Union, which disinte- room in the authoritative style that he was those polled said they think the defendants grated four months after the failure of the famous for as chairman of the Soviet should be given the death penalty and 34% coup, and hence has no right to rule on a said they should be pardoned. case of treason against the Soviet Union. "The union no longer exists," argued 'The union no longer exists. It W ith the economic situation steadily Genrikh Pavda, an attorney for former deteriorating, many Russians have Soviet Parliament leader Anatoly I. Luky- seems to me that we have begun to look back on the days of Commu- anov, 62. "It seems to me that we have today to decide who can judge nist rule-and on the leaders of the failed today to decide who can judge an alleged putsch-with increasing fondness. crime against a state that may no longer an alleged crime against a "They're not criminals-they just want- exist." state that may no longer ed to stop the disintegration of our country D efense lawyers also charged that the exist.' that Gorbachev started," Vladimir Golu- bev, a retired factory worker who has seen judges should be dismissed because GENRIKH PAVDA his life savings vanish because of high they could not be objective since as Attorney for former Soviet Parliament leader inflation, said as he stood outside the military men, they are subordinate to Anatoly I. Lukyanov courthouse. Russian Defense Minister Gen. Pavel S. "They didn't want a putsch-they just Grachev, who is a witness for the prosecu- wanted order." tion. But while the public's attitude toward WASHINGTON ANGELES TIMES One after another, the defendants voiced Parliament, and declared that if the prose- the plotters has softened, the mother of their concurrence and demanded that their cutors remain on the case, "I will refuse to Ilya Krichevskaya. one of three men killed trial be heard by a special tribunal that answer their questions!" during the coup, said her bitterness has not represents other republics of the former The judges announced a recess until ebbed. Soviet Union, not just Russia. today while they consider Lukyanov's "The only way that my feelings and But, after three hours of deliberations, challenge. convictions have changed over time is that Maj. Gen. Anatoly Ukolov, who is presiding The trial is being held in a military court because several of the defendants are I feel more contempt toward these men." over the non-jury trial with two other Naisa Krichevskaya said in an interview judges, rejected the defense's demands as former generals, but at court, all of the accused were dressed in civilian clothing. with the Russian news program "Vesti." legally groundless and stated that the Reuters court has authority over proceedings for Former Soviet Defense Minister Dmitri Special correspondent Viktor A. Vodola- crimes committed on Russian territory. T Yazov, 69, appeared wearing a pink shirt zhsky contributed to this story. Defendant Anatoly Lukyanov makes his way through crowd on his way to court. Millions Unable to Pay Taxes by Deadline Today By ALEXEI BARRIONUEVO TIMES STAFF WRITER Accustomed to indebtedness for everything from vacations to re- frigerators, millions of Americans now find themselves beholden to a scary new creditor: the Internal Revenue Service. April 15 dawned today on more last-minute filers, extension seek- ers and people just plain unable to pay than at any time in years. The reasons? A federal withholding-tax cut designed to boost take-home pay, and the lingering economic slump the cut was created to address-not to mention the per- sistent unpopularity of saving money. Take Bruce Brackett. The 46- year-old security supervisor at Pepperdine University owes the IRS $2,600, double what he got back last year. Unable to pay by today's official deadline, Brackett filed for an extension so he can save up what he owes by the extension deadline of Aug. 16. "I thought the extra money I was getting on my paycheck was a cost-of-living increase." Brackett said. "My wife and I live for today. We spend what we make; it's the American way." Paying up has stymied many Please see DEADLINE, A5 DEADLINE: Millions Cannot Meet Cutoff Continued from A1 pensation, which is not taxed until were confused by the withholding a recessionary mode," he said. "My Americans this year. More people the end of the year. change or simply cannot afford to income dropped 30% this year." than ever filed late. often because "Tax on unemployment can be pay. they were not getting a refund or very substantial," said Marvin Wright said he did not take any At the downtown IRS office could not pay what they owe, tax Weisbrod, vice president of techni- vacations and cut back on personal Tuesday, Mike Terrell. a food clerk preparers report. cal services for Triple-Check In- expenses. But he still owes the IRS at a Von's in South-Central Los Many taxpayers blessed with come Tax Service in Burbank. thousands for his work as an inde- Angeles, said he did not make more falling rates on their home loans "When you're someone who is out pendent contractor, money he money this year but discovered to found themselves paying far less of work, you don't have to owe needs more time to collect, he said. his horror that he owes $1,200 to interest than the year before. thousands of dollars to be in trou- Uncle Sam, $900 more than last Cleophus Nicholoson, a postal slashing their mortgage interest ble." year. supervisor, was filing an extension deduction. But many. like Brackett. blame "And I was off sick for three to buy time. He owes the IRS Overall. Americans are getting withholding changes put into effect months," he said. "If I had been $1,700 this year. Last year he got smaller refunds this year-an av- last year, when President George working those months I might be back $1,200, money he used for a erage of $971. $4 less than last Bush, in an attempt to boost the $3,000 in the hole." vacation. sagging economy, reduced the "Next time around. I plan to get LATE TAX TIPS amount of taxes withheld from Last-minute filing reminders. paychecks. T errell filed a Form 9465, the someone professional to do my IRS' installment plan request. taxes and add property to offset my including what to do if you Sooner or later, the piper must Borrowing from the IRS does not liability," he said. cannot pay what you owe. B6 be paid, and now the IRS worries bother him, though, since he will that the lower rate of withhold- only have to pay a 0.5%-per- For the poor, filing seems almost year they are waiting longer ing-and the subsequent inability as tough as paying. Samuel San month penalty on the unpaid to file. As of Friday. filings nation- of many people to pay-could Roman, 64, struggled to fill out his amount. plus 7% annual interest, wide were down 6.5% from last cause record numbers of Ameri- forms at the downtown IRS office. which is less than commercial year. the biggest gap in five years, cans to drop out of the tax system. "The last eight years, I haven't lenders are charging. the IRS said. The IRS responded last Wednes- Tom Connus, a property manag- made enough money to pay some- In Los Angeles, filings were one to do it," he said. day by announcing that it would er, said he was counting on a running 23% behind as of March drastically reduce penalties for refund this year to pay back taxes San Roman said he lives on 27. when the national rate was those who ask to file returns late he owes for 1990. "Now I am Social Security, unemployment in- 7.4%. High unemployment in the and delay sending tax payments. doubly hit," he said. "I didn't surance and money earned work- Southland is one possible explana- Brackett is among the roughly 5 realize the withholdings change ing part-time jobs, which yielded tion, said Nancy McCurley. an IRS million Americans who will avoid was happening until the end of the him about $6,000 in 1992. He said spokeswoman. 5% per month in non-filing fees. year." he always files on time and always Some people who had good jobs Late filers could still be liable for Tough economic times forced owes taxes. owe taxes on 1992 income even interest and penalties of up to 13% screenwriter M. Augustus Wright "Every year I say, "I don't have though they may be unemployed until the account is paid. to seek out extension Form 4868 at money. Send me to jail.' But they now. Others are struggling to pay The IRS move has meant little to the IRS office downtown. "The say, "That's all right. Can you pay taxes on their unemployment com- Brackett and others who say they entertainment industry has been in $5 or $10?'tSo I keep coming back.' WASHINGTON EDITON ANGELES TIMES Thursday, April 15, 1993 Clinton Will Likely Skip Gay-Rights March Rally: President will probably instead through his participation. Two weeks ago, a delegation met Lesbian Victory Fund, which raises money for candidates with White House aides to urge Clinton to take part. who support gay rights. meet with Democratic senators, his Some gay rights activists compare the event to the civil Hileman said the issue of Clinton's appearance has spokesman says. Event poses a political rights march organized by Dr. Martin Luther King Jr. in become so important to march participants that it is "the 1963. They say Clinton should make the kind of statement single most asked question" on the march's telephone dilemma for the White House. that President John F. Kennedy would not when he chose information lines. Organizers have predicted that the not to participate in King's march. procession itself could draw 1 million visitors. By PAUL RICHTER Some also have warned that, depending on Clinton's "We think Clinton in time will understand this event in TIMES STAFF WRITER actions, the event could turn from a celebration into a terms of its importance in fighting prejudice and would protest. regret it if he didn't attend." said Hileman, a high school W ASHINGTON-President Clinton-facing pressure he march has put Clinton in a delicate political position science teacher from Pittsburgh, Pa. to show support for gay rights at a march here April T Torie Osborn. executive director of the National Gay and because his presence would heighten tensions over an 25-probably will instead join Democratic senators at a Lesbian Task Force, said the news concerning Clinton's issue that the White House has been working hard to weekend retreat 150 miles away in Jamestown, Va., his plans was "disappointing" but that she still holds out hope chief spokesman said Wednesday. downplay. that he will attend. As an alternative to an appearance at the march. Clinton And, although the event's organizers have worked to She said march organizers decided that they could not might issue a statement of support for its goals and perhaps bring in mainstream groups, including religious organiza- limit attendance to supporters who would be less likely to meet with some gay-rights leaders, White House Commu- tions, it also includes at least some of the more flamboyant offend some segments of the American public. nications Director George Stephanopoulos said. and militant gay-rights organizations. "Drag queens launched the modern gay-rights move- But a decision not to participate could risk alienating Clinton's absence, on the other hand. would enable him ment," she said. "We are not ashamed of the diversity gay-rights supporters, who are already uncertain what to make a different political point: that he is willing to within the community. Nor, if we wanted to, could we Clinton ultimately will do on the issue of gays in the stand up to pressure from special interest groups even control a very colorful and anarchistic and broad-based military and who could turn the rally into a huge protest. though they have supported him with their dollars and community." Billy Hileman, a co-chairman of the event, said marchers their votes. But Rep. Barney Frank (D-Mass.), who is openly gay, would be "disturbed and perplexed" if Clinton were unable Some leaders of gay groups have suggested that Clinton said an appearance by Clinton at the march could weaken to make a personal appearance. might participate through a videotaped appearance or the gay-rights cause by prompting unflattering news "We don't believe standing alongside gay men and address the marchers through an audio hookup, as coverage of the President. lesbians would make a politically embarrassing photo- President George Bush did in recent years during the "How would it help gay and lesbian rights if the graph," he said. "I think being alongside Sam Nunn in annual anti-abortion marches in Washington. President's position in this regard were weakened?" he Virginia could be an embarrassment." Nunn (D-Ga.), the But Stephanopoulos was skeptical about the latter idea, asked. chairman of the Senate Armed Services Committee, has saying that Jamestown, east of Richmond, Va., at the The issue should not be "whether the President was at opposed Clinton's plans to open the military to homosex- mouth of the James River, was "a little far out." an event with people dressed outrageously. wearing too uals. At least one prominent associate of the President, few clothes, et cetera. There are fewer constraints on me The march organizers have been urging Clinton since campaign aide James Carville, will take part in the event. than there are on the President, but there are demonstra- last December to make a visible statement of support He will attend a luncheon sponsored by the Gay and tions I won't be in, pictures I won't pose in," he said. Los Angeles Times 4/15/93 Los Angeles Times 4/15/93 Clinton's Expert on California Sees Slow Economic Recovery Federal aid: Commerce Secretary Ronald ty business development. Brown said he looks forward to the challenge but Brown is charged with helping to revive stresses that it will take years to make an impact, economy and rebuild riot areas. particularly in areas devastated by last year's riots. "This is not about the 29th of April, 1992. This is about August, 1965," he said, referring to the Watts riots. "This By GLENN F. BUNTING just didn't happen. There was no response or an inadequate TIMES STAFF WRITER response 30 years ago. Until we start taking a long-term, WASHINGTON- the Clinton Administration's newly non-crisis-oriented point of view, we are not going to be effective with these problems. appointed czar on California, Commerce Secretary Ronald "We've got to have a federal government that doesn't H. Brown is developing a federal strategy to stimulate the just parachute in and run out. That is the usual response. state's depressed economy and revive charred neighbor. You either get chased out or run out because you give up. hoods of Los Angeles amid tense anticipation of verdicts in The attitude of this Administration is we can make a the Rodney G. King civil rights trial. difference, we can help and we intend to." No Cabinet official, including Brown, volunteered for the task. President Clinton assigned the responsibility to T: 0 underscore the many obstacles confronting Brown, Brown last month as part of the Administration's effort to consider his stated objective of harmonizing relations focus attention on California and cultivate a political base between two volunteer organizations-Peter Ueberroth's in the state. Rebuild L.A. and Rep. Maxine Waters' Community Build. Brown said he plans to visit Los Angeles next week for Rebuild L.A. officials said there is no dispute between the second of many trips to the state. Last weekend. Brown the two agencies for Brown to resolve, only vitriolic was appointed to head an emergency advisory team to attacks by Waters. "Maxine has kept up a drumfire of coordinate the Administration's response if violence erupts inaccurate, unfair criticism of our organization and Peter after the verdicts. Ueberroth." said Barry A. Sanders, Rebuild L.A. co-chair- Administration officials said the President considers man. Brown ideally suited to direct the California rescue Waters portrayed any attempt by Brown to broker peace operation because the chief of the Commerce Department as a waste of time. "They can't get me together with Peter is among the nation's most influential policy-makers in Ueberroth. Peter Ueberroth doesn't have anything to many key areas affecting the state. These include interna- offer," Waters said. tional and domestic trade, technology. tourism and minori- Please see BROWN, B4 1/2 103 BROWN: Commerce Secretary Focuses on State Continued from B1 George Bush enjoyed record high popularity and office. Brown sought to avoid such verbal warfare few gave Brown any chance of getting a Brown, 51. approaches his California assign- during his fact-finding trip to Los Angeles on Democrat elected as President. But Brown ment with a vast background as a civil rights March 27 and 28 by barring the media from his raised millions of dollars, helped unite the advocate and successful attorney. He was meetings with dozens of political, business and fractious Democratic Party and staged a suc- educated at a special elementary school run by community leaders. His visit sparked hope cessful national convention in New York last Hunter College for New York's elite private among some that, under Brown's guidance, the summer that helped put Clinton on the road to prep schools, and at Middlebury College in federal government will provide much-needed the White House. Vermont and St. John's Law School in New assistance to impoverished inner-city areas. York. "I was impressed with him," said Sweet Alice "I f he brings that same kind of wisdom and Harris, executive director and founder of Par- perspective to the problems here. which ents of Watts. "I found him to be sensitive to our there's no question he I n 1973. he moved to Washington to serve as are almost insoluble chief spokesman of the National Urban needs. So often, people will tell us what they is the best guy in the Administration to do it," League. He later worked on Capitol Hill and ran want us to do, but they don't ask us what we said attorney Johnnie L. Cochran Jr., a longtime Sen. Edward M. Kennedy's successful 1980 want them to do. He kept asking." acquaintance who hosted a luncheon for Brown California primary campaign against President So far, Brown said, he has received an earful of suggestions on how to help Los Angeles. during last month's visit to Los Angeles. "It's a Jimmy Carter. As a prominent lawyer-lobbyist They include focusing attention on unemployed herculean task, even for him.' in Washington, Brown benefited financially by inner-city men between the ages of 17 to 30 who Seated in his office at the Commerce Depart- winning controversial and lucrative contracts often are untouched by government programs; ment, Brown appears confident and at ease with local governments and represented several altering the Administration's summer jobs pack- discussing his role. The constant bubbling of a special interests. One of his clients was Jean- age to help Los Angeles youths who attend large aquarium can be heard in the background. Claude Duvalier, the dictator of Haiti at the school year-round: making Small Business Ad- A painting of former Commerce Secretary W. time. ministration loans under $50,000 available to Averill Harriman watches over Brown from Brown's reputation as a consensus builder and entrepreneurs, and overhauling the oft-criti- above the nearby fireplace. a wall position held a keen political strategist is expected to serve cized bureaucracy within the Federal Emergen- by Herbert Hoover before the Democrats took him well in trying to turn around the California cy Management Agency. over. economy and keep the state devoted to Clinton. Brown is no stranger to long-shot missions. Ever the consummate politician, Brown is "I think we can play a significant role in Shortly after Brown was named chairman of the quick to point out that Hoover occupies a pulling various groups and forces and sectors of Democratic National Committee, President "respectful" position in the hallway outside his the community together." Brown said. Dos Angeles Times 4/15/93 104 PHYSICAL FITNESS Relief on Way for Clinton Knees, Capital Commuters President about to jog around a stroke, heart attack and ileitis in less than three years, he allayed concerns White House, evoking about his health by taking to the golf memories of Carter's 'Killer course and the putting green he had in- stalled on the White House lawn. Rabbit,' Nixon's bowling ball. On the other hand. in the late 1950s, Ike's golfing became a great political lia- By PAUL HOUSTON bility, suggesting that the President was TIMES STAFF WRITER unduly complacent about the surge of the Soviet Union. W ASHINGTON- Clinton, the first President to tie up traffic by "It was a metaphor of a President not jogging on the streets of the capital, soon on top of the job," Beschloss says. will be switching to a quarter-mile track For Jimmy Carter, who had a swim- dug into the White House grounds. ming pool built outside the White House, The track. privately financed by a recreation was sometimes a public rela- company donating $10,000 worth of ma- tions nightmare. When aides claimed terials and by others kicking in $20,000 that a rabbit had attacked his canoe on a for labor. will protect Clinton's knees fishing trip, prompting Carter to splash from hard pounding on pavement and water with an oar to scare it off, car- sidewalks and give him better securi- toonists went wild over the "Killer Rab- ty-but it also will be a blessing to bit" and "Banzai Bunny." Later, Carter Washington motorists delayed by presi- sent shivers around the world when he dential jogging. nearly collapsed from fatigue while run- His jogging in downtown Washington ning in a race. has created early morning traffic jams Richard Nixon actively sought press and lunchtime spectacles. One day, he coverage of his bowling, thinking it attracted startled stares, tourists cam- would boost his stock with hard-hat eras and a straggly entourage of spur- Democrats. Nixon's lack of golfing and of-the-moment running partners as he bowling prowess-he once dropped a jogged along monument grounds, with bowling ball on his wife's foot-inspired Secret Service all-terrain vehicles a joke: "I scored 128 today,' Nixon sup- zooming down sidewalks to keep up. posedly told Henry A. Kissinger. his na- Presidents from Herbert Hoover on tional security adviser. "Your golf game have turned to exercise for psychic as is getting better." Kissinger said. Nixon well as physical relief from the rigors of replied, "I was bowling. Henry." decision making. But some also have N ot many presidents before Hoover seemed well aware of political dividends. exercised because it was long con- "One reason that John Kennedy em- sidered dangerous for people over 40. phasized exercise was to divert attention Hoover tossed around a heavy medi- from his bad health," says presidential cine ball with members of his Cabinet, historian Michael Beschloss. "With the who of course were called the Medicine pictures of him sailing and swimming, no Ball Cabinet. one believed he was suffering the way Franklin D. Roosevelt swam in an in- he was from back problems and Addi- door pool built for him at the White son's disease." House as therapy for his infantile paral- Associated Press C linton benefits from displaying Ken- ysis. nedyesque vigor with his almost Harry S. Truman took brisk walks and President Clinton takes to the streets, daily jogs through the streets and parks pumped a rowing machine. a source of aggravation to motorists. of Washington. His aides insist he IS not Eisenhower fished and played golf. seeking political profit-in fact, he only Kennedy played touch football in ad- Carter played softball in addition to grudgingly tolerates having the press dition to swimming and sailing. his other activities. along on his three-mile runs. Still, aides Lyndon B. Johnson rode horses. Ronald Reagan rode. chopped wood acknowledge the dividends. "It only re- Nixon, besides installing a bowling al- and lifted weights. inforces that image of youthfulness and ley in the White House, restored a bil- George Bush ran, golfed. boated. energy and change," one says. liards room that had been banished by hunted. played tennis and threw horse- But presidential sportiveness can be a the puritanical Rutherford B. Hayes. shoes. mixed blessing. Gerald R. Ford swam, skied and Besides running, Clinton golfs and us- After Dwight D. Eisenhower suffered golfed. es body-building machines. Los Angeles Times 4/15/93 105 EPA: State Must Toughen Smog Check By MARIA L. La GANGA TIMES ENVIRONMENTAL WRITER The head of the U.S. Environ- mental Protection Agency warned Gov. Pete Wilson Wednesday that the Smog Check program being considered by the state Legislature must be toughened significantly or the state will face federal sanc- tions. In a letter also signed by Secre- tary of Transportation Federico Pena, EPA Administrator Carol M. Browner said none of the Smog Check proposals under consider- ation fully addresses federal clean air requirements "and thus none would be approvable by EPA as currently written." Browner goes on to say that unless appropriate legislation is enacted by Nov. 15, the federal government is considering cuts in federal highway funding and stiffer air pollution reduction require- ments for new industry in the state. "The imposition of sanctions in California would be costly to in- dustry, jobs, and the economic growth of your state," the letter said. James Lee, a spokesman for CalEPA and Wilson's office, said there is no disagreement about the need to enhance the Smog Check program. "We still think there is ample time left to work with the Legislature in crafting a good Smog Check bill that everyone would support-including the feds," he said. Smog Check, which was enacted in 1984 to monitor and reduce vehicle emissions, is undergoing its third major overhaul. The legisla- tion as written differs from federal Clean Air Act requirements in two ways. The EPA calls for an entirely centralized system, with separate test and repair facilities. The state proposal is a hybrid system. Motor- ists would take their car first to a centralized test-only site. If they failed the smog test, they could go to a so-called Gold Shield station for repair and subsequent testing in the same place. In addition, EPA says all drivers must pay at most $450 if necessary to bring cars into compliance with emission requirements. The state plan calls for a three-tier repair cap, depending on the model year of the car, that tops out at $350. Los Angeles Times 4/15/93 106 Judge Rejects Challenge to Census By DANIEL M. WEINTRAUB TIMES STAFF WRITER In a decision that could end a fight over the "undercount" of millions of people in the 1990 U.S. Census, a federal judge in New York has ruled against cities and states that were trying to force the federal government to adjust its official head count upward. Unless it is overturned on ap- peal, the decision will clear the way for the federal government to continue to peg California's 1990 population at 29.7 million, a figure the Census Bureau acknowledges is more than 1 million below the number of people believed to have lived in the state at that time. At issue in the lawsuit was which set of figures to use: the original, door-to-door canvass or a second, statistical adjustment also performed by the Census Bureau, which estimated that the tradition- al count missed 3 million to 5 million people nationwide. The decision to accept the Cen- sus Bureau's original count has broad repercussions. affecting such issues as the state's allotment of representatives in Congress and the delivery of federal funds to California. Democrats in the Legislature had sought in separate actions to force the use of the Census Bu- reau's revised numbers because most of those missed in the original census lived in inner-city neigh- borhoods that are considered Dem- ocratic strongholds. Republicans, including Atty. Gen. Dan Lungren, joined the fight as well, in an effort to secure more federal money for the state. "We're disappointed," said Jessi- ca Heinz, an assistant city attorney in Los Angeles. Heinz said U.S. District Judge Joseph McLaughlin acknowledged that the evidence supported the plaintiffs' contention that the ad- justed census numbers were more reliable than the original count. Yet McLaughlin said that the Commerce Department's decision to reject the Census Bureau's ad- justed numbers should stand be- cause it could not be shown that the department acted in an arbi- trary or capricious manner. Heinz and David Puglia, a spokesman for Lungren, said no decision has been made on whether to appeal the ruling. Los Angeles Times 4/15/93 107 U.S. Asks Allies for New Aid for Russia Economics: Officials warn cross every 't,''' said a Treasury official, cynical Russians, who will vote in 10 days finance ministers worked into the morning suggesting that some decisions would be in a referendum on their country's future. today on the details of the multinational aid that a $40-billion package may put off for several weeks or more. There have been some results. Japan package, an outline emerged. As described not be finished at Tokyo meeting At the same time, several countries, announced that it will offer $1.8 billion in by Waigel, who said he was offering only including wealthy but recession-pressed aid to Russia, a huge increase over previous approximate figures, the plan would in- of top industrialized nations. Germany, turned aside the U.S. request for levels. And President Clinton was putting clude: more money. German Finance Minister the finishing touches on an aid proposal for $3 billion in credits that the IMF would By DOYLE McMANUS Theo Waigel, asked what new aid his the federal budget year that begins Oct. 1, make available to Russia almost immedi- and JAMES GERSTENZANG country was willing to promise for Russia, reportedly also in the range of $1.8 bil- ately. primarily to cover the cost of import- TIMES STAFF WRITERS bluntly replied: "None. lion-on top of this year's pledge of $1.6 ing necessary goods and equipment from "We are ready to support more aid from billion, offered just last week. the West and Japan. This money would be TOKYO-The United States asked its the international institutions like the Inter- But U.S. officials had hoped this week's offered without requiring Russia to take major economic allies Wednesday to prom- national Monetary Fund and the World meeting would produce a list of aid com- specific steps to stabilize its economy, other ise new increases in aid to Russia, but there Bank." Waigel said. But as for direct aid mitments from all the countries in the than to demonstrate some measures to were signs that pledges were not coming as from the German government, "we have Group of Seven-the United States, Japan, control inflation-which in recent months easily as the Clinton Administration hoped. reached our limit,' he said. Germany, France, Italy, Britain and Cana- has neared 30% but dropped to 17% in Top officials from the seven biggest A shortfall in aid pledges could have da. Three of the countries-Germany, March. industrial powers worked into the night to significant political consequences for Rus- France and Italy-have not pledged yet. $4 billion in additional IMF credits that complete a multinational aid package that sia and the West. This week's unusual Germany, which has given more than would be made available to Russia in a could approach $40 billion, but U.S. officials meeting between Secretary of State War- half of the worldwide total of about $80 piecemeal fashion as Moscow institutes real began to warn that the plan might not be ren Christopher, Treasury Secretary Lloyd billion in aid to Russia since 1989, has often economic reform. This step-by-step pro- finished at this week's meeting of foreign Bentsen and their foreign counterparts was complained that its share of the burden has gram represents a relaxation of the fund's and finance ministers. intended to produce a list of aid big been disproportionate. usual insistence that full reform be estab- "We won't be able to dot every 'i' and enough-and concrete enough-to impress Even as the aides to the foreign and Please see RUSSIA, B7 Los Angeles Times 4/15/93 Los Angeles Times 4/15/93 RUSSIA: U.S. Asking Allies to Promise New Increases in Aid ( inued from B5 theWorld Bank and the European The Administration is also ask- lished before any money is trans- Bank for Reconstruction and De- ing the other industrial powers to ferred. velopment would contribute $2 bil- contribute to a multinational proj- $6 billion in a fund to help lion. ect to dismantle the nuclear arse- stabilize the ruble. This would be a A senior U.S. official said the nal of the former Soviet Union. The renewal of a central element in the fund was designed in response to project is built on an $800-million international plan that the George suggestions from Russian Presi- fund already earmarked for that Bush Administration presented a dent Boris N. Yeltsin and his purpose in the U.S. Defense De- year ago to funnel $24 billion in aid deputy prime minister for finance, partment budget. to Russia, much of which has not Boris G. Fyodorov. The Russians Development of the aid plan has been made available because of the noted that a major worry among grown more urgent over the past slow pace of economic reform there. their compatriots is that the huge two months as the Group of Seven $1 billion from the World Bank members came to see it as their for economic development projects. biggest possible contribution to Up to $10 billion in bilateral aid 'The United States can't helping Yeltsin emerge successful- from individual countries, most of ly from the April 25 vote in Russia it in the form of export credits- carry the whole burden on that amounts to a vote of confi- loans to finance Russian purchases these things, and we dence on him and his policies. of goods from the countries that extend the aid. have to find new ways to Yeltsin said Wednesday that if less than half of the voters express $15 billion in already an- share the job.' confidence in his presidency and if nounced debt rescheduling. to help voters decline to set early elections Moscow get out from under the A SENIOR U.S. OFFICIAL for his opponents in Russia's Par- crushing burden of paying back the liament, he would resign. The $80-billion foreign debt it inherited leaders at the conference here fear from the defunct Soviet Union. state industries employing hun- that whoever replaces him would That adds up to $39 billion, but dreds of thousands of workers- be likely to step back from his Waigel and other top officials said and often dominating the econo- policy of political and economic it would be deceptive to rely on mies of smaller cities-could col- reform. that total because it mixes different lapse in the face of economic "I made the point that President types of aid-grants, loans and reforms. Yeltsin was far superior to any of debt relief-that do not have com- "This program is targeted at his likely successors in terms of parable dollar values. firms with 1,000 or more employees commitment to the market pro- At the same time as they worked to try to respond to that cess," Secretary of State Christo- on the international plan, the min- perceived problem," the official isters were presented with a sepa- said. pher told reporters during a break rate U.S.-led effort to commit $4 He said the Administration also in Wednesday's nearly five-hour session at the New Otani Hotel. billion for a privatization fund to hopes the unusual structure of the Although none of the assistance help large state industries, which program-with the U.S. contribu- could reach Russia in the 10 days once took orders directly from the tion seen as "seed money" to before the vote, the United States former Communist government. prompt similar contributions from and the others believe such a convert to privately led, profit- Japan, Germany and other coun- making enterprises operating un- tries-might become a pattern for commitment of support would der the laws of supply and demand. further joint aid packages. probably bolster Yeltsin's pros- Under the Clinton Administra- "The United States can't carry pects by casting an optimistic aura tion plan, the United States would the whole burden on these things, to his presidency. contribute $500 million, other na- and we have to find new ways to Times staff writer Sam Jameson tions would add $1.5 billion and share the job," he said. contributed to this report. 2/2 109 NAACP Directo Gets Taste of New Job, M ood i .A. Civil rights: The organization's new leader African-American and Latino students at the Riley High and Tuesday he began to question all the predictions of School-South campus, a school for pregnant teen-agers violence. He met with community leaders, talked with calls the city a 'barometer' for the rest of the and young mothers. gang members about the truce, and consulted with local nation. "It's going to be a challenge," Chavis said later. "It's an NAACP chapter presidents. indication of just how hard we have to work." "The national perception is one that officials in Los The new NAACP executive director said that revitaliz- Angeles seem to be relying on law and order to solve its By JOHN L. MITCHELL ing the organization is one of his goals. He started his racial and economic inequalities," he said. "This looks like a TIMES STAFF WRITER NAACP stewardship in Los Angeles because the eyes of mini-Desert Storm. But South-Central Los Angeles is not At an "April Baby Shower" for pregnant teen-agers, the the nation are focused on the city as a jury deliberates in some desert in Saudi Arabia." Rev. Benjamin F. Chavis Jr. asked a question that the federal trial against the officers accused of beating Already some of his comments have angered local Rodney King. leaders. Police Chief Willie Williams got word to him that demonstrated how much work may be ahead for the new Chavis said he wanted to find out first-hand whether the he was upset with his remarks about desert storm. executive director of the oldest civil rights organization in city was really about to explode. Chavis, who succeeded the retiring Benjamin L. Hooks, the country. "I have not seen any indication of violence," he said. said he came to Los Angeles because he felt the city has "How many of you have heard of the NAACP?" he "Not one gun. I heard no gunshots." become a "barometer" of whether or not the nation will asked. But after two peaceful nights in Los Angeles housing begin to focus its attention on the needs of the poor in inner Only a few hands raised in the audience of nearly 100 projects-Imperial Courts and Jordan Downs-on Monday Please see CHAVIS, B4 CHAVIS: NAACP Director Tours L.A. Continued from B1 begin to "bridge the needs of the poor' with Fred Williams, a former gang member who now cities. those of working- and upper-class African operates a program helping them. "He has been While the attention is on the potential for Americans. Eventually. he said the organization in the trenches for a long time. There is renewed rioting in Los Angeles, he said there is will expand to include Latinos and Asian Amer- something inside him that drives him to stay also an important struggle going on in Washing- icans. connected to the roots. That is why he can relate Los Angeles Times ton where a Senate filibuster has blocked the Chavis said he was invited to meet with to the folks in South-Central Los Angeles." president's jobs package. President Clinton after his selection as director, At the gift-giving ceremony for the young "We want to send the message to Washington but he turned it down and flew here. mothers, Chavis told the audience that they are 4/15/93 from the hood in Los Angeles that people want "Thats why I came here," he said. "I could be the future of the NAACP. jobs," he said. in a hotel, but that's not my style." "You are the future of the race," he said. "We Since 1985, Chavis has been an executive want to make sure your insights are part of the A t Imperial Court housing project where director and chief executive officer of the NAACP." Chavis spent his first night, many of the Commission for Racial Justice, affiliated with gang members were not talking about the the 1.7-million-member United Church of H e told the young group not to let the juries tension of the verdicts. They worried about the Christ. decision change their course they have lack of jobs. But he gained national attention as an activist chosen for themselves. George Bogard. 33. who was recently released back in the 1970s while protesting school from prison, said the frustration over the lack of desegregation in North Carolina. "No matter what the verdict don't lose hope." Chavis was arrested as one of the a group of he said. "Don't let a jury determine whether you work could ignite unrest. "We want to work, we want jobs," he said. activists called the "Wilmington 10." He was are going to be successful in life or not." "Most of the guys out here have become so convicted of arson and conspiracy to commit The message was well received. desperate that they don't care about them- assault and sentenced to 34 years in prison. He "Most people put us down because we are selves." served four years before the convictions were teen-agers and pregnant," said Tilesha Pearson, As part of his mission, Chavis said he wants to overturned by a federal appeals court. 17. "He is telling us don't forget your education. expand the traditional focus of the NAACP to "Ben Chavis is not a traditional leader," said Be somebody. It's good to hear that." King Defendants Seek Pay-for-Talk TV Deal Media: The four on trial will most likely speak after the verdicts on the tabloid news show 'A Current Affair'-for a price. Their attorneys defend the move. ordeal. By DANIEL CERONE On the advice of Beck-and to the TIMES STAFF WRITER chagrin of the national news media- A fter the verdicts are reached in the once outspoken defendants have the Rodney G. King civil rights kept mum during this week's jury case, don't expect to see the four deliberations. At the same time, Beck defendants making statements all over has been working to secure a deal with the place. The four men on trial have a TV tabloid or talk show. made themselves available to just one Beck formally represents Koon, Lau- news outlet-for a price. They will rence M. Powell and Timothy E. Wind. most likely take their case to the Theodore J. Briseno has his own agent, tabloid news show "A Current Affair." but Briseno's attorney confirmed that The idea to market the four was born his client hopes to be included in the in the mind of Sgt. Stacey C. Koon, one deal. of the defendants. He recalled reading And the attorneys are being over- that Amy Fisher had received $40,000 whelmed by comments and questions for an exclusive interview with a TV from reporters suggesting that the four tabloid show after she was convicted of defendants are trying to turn a tragic assault for shooting her alleged lover's event into personal gain. The defendants declined to comment wife in the head. for this story. Their attorneys, who do Koon figured that he and the other not represent the police officers in their three defendants-who haven't re- media endeavors, strongly disagree ceived their LAPD salaries for two that their clients are doing any wrong years, and whose collective attorneys' by trying to capitalize on the King case. fees and costs range near $1 million- "We keep getting these implications could do at least as well as Fisher if by journalists that there's something they offered themselves as an exclusive improper about what they're doing," packaged deal. said Harland W. Braun, Briseno's attor- So last week Koon contacted Dan ney. "[The defendants] try to make Beck, vice president of the Hannaford something off the very publicity that Co., a public relations firm whose destroyed their lives, and everyone is clients include the California Trucking going nuts. Up till now, the journalists Assn. and former Gov. George Deuk- have taken their interviews for free mejian. Last October Beck had helped and then charged advertisers to make Koon arrange interviews and talk money off their broadcasts. It's so shows for a book Koon wrote about his Please see MEDIA, B11 Los Angeles Times 4/15/93 1/2 MEDIA: Defendants Make Deal Continued from B8 hypocritical it's unbelievable." "They've been cast aside by their departments, they have not received a salary for two years, and the press has savaged them." said Ira Salzman, Koon's attorney. "The press coverage has been uniformly negative. As a result, they've got an obligation to their families. I support their decision wholeheart- edly." Last week, similar nationwide criticism mounted against mem- bers of the Spur Posse-current and former Lakewood High School students accused of raping or mo- lesting young girls and keeping an account of their sexual conquests. 'They've been cast aside by their departments, they have not received a LARRY DAVIS / Los Angeles Times salary for two years, and Sgt. Stacey C. Koon is flanked by defense attorneys Paul De Pasquale, left, and Michael P. Stone. the press has savaged them. They've got "stratospheric." But he did say the story, as I see it [is] you're going Attorney Michael P. Stone said obligation to their total would be more than the against-I don't like the term po- that his client, Powell, has "always $40,000 reportedly paid to Amy litically correct-but against the been interested in trying to change families. I support their Fisher. accepted truth," Braun said. "You public opinion about him. And he decision wholeheartedly.' There has also been talk of have a black man who was appar- hasn't been paid a dime for any- speaking engagements and TV ently beaten by four white people. thing he's done, appearing on local IRA SALZMAN movie deals in the wake of the Because of our history of racism in news programs. network news Koon's attorney verdict, although to this point Hol- this country, we assume it has to be programs. Larry King." lywood has been reluctant handle a racial beating. And therefore The network news magazines the case. these are bad guys. And if they're Some of them were paid $1,000 were locked out because, as a rule. "I think there are Hollywood not bad guys, then America is each for appearances on "The they don't pay for guests. Neither politics involved that don't want to wrong. So there's an incredible Maury Povich Show" and "The do "The Oprah Winfrey Show," cast these officers in any positive vested interest in vilifying these Jane Whitney Show." "Donahue" or "Geraldo." those light," Beck said. guys." Beck said that the police officers Nor have consumers appeared to There appears to be hope that by programs say. are selling their first post-verdict be terribly interested. None of the choosing their own forum-either Among the tabloids, "Inside Edi- interview-which will remain ex- major publishers bought Koon's a talk show hosted by a friendly tion." which ran an earlier story clusive to the buyer for a period of book. "Presumed Guilty: The interviewer, or a tabloid show about Briseno's ex-wife, denied time before the officers can give Tragedy of the Rodney King Af- where they won't have to face an seeking an interview with the further interviews-for two rea- fair." Published by the small Reg- aggressive studio audience-the officers. "Like any other news sons. nery Gateway in Washington, police officers can tip the balance organization, we'd be interested in "One, they feel that they can get Koon's book has sold a less than of what they perceive to be sensa- having them on, together or sepa- their story out. a story that has not impressive 25,000 copies in six tional press coverage in their fa- rately," spokeswoman Allison been completely told, either months. vor. Kossow Felix said. "But we are not through the media or by them as "To do something in the popular Several sources said that "A interested in paying for an inter- ndividuals," Beck said. "And two, media, these guys have to over- Current Affair" was the tabloid view with them." they need some money to help come incredible prejudices," said show the officers were headed for. Either way, how "exclusive" an recoup their losses." Braun. whose client, Briseno, em- The sources said Beck had made a interview the officers will provide Beck would not say how much ployed his agent six months ago to verbal agreement with the syndi- is up for debate-until now the his clients would receive for their represent him to Hollywood. But cated show and was working officers have made themselves exclusive interviews. He balked at Briseno was unable to strike up Wednesday to close the deal. A available to both TV and print he mention of a six-figure sum for any deals with publishing houses spokesman for "A Current Affair" reporters. he four, of them, as rumors have or production companies. would only say "I'm not at liberty Times staff writer Jane Hall contributed to uggested, calling that amount "The problem with selling this to discuss it." this story. 4 2/2 Los Angeles Times 4/15/93 112 MEDICINE Minnesota Model Health Plan Irks Doctors, Pleases Patients By RHONDA HILLBERRY adults. The emphasis is on getting SPECIAL TO THE TIMES people to the doctor regularly. Participants may choose from more ST. PAUL. Minn.-Health care re- than 25,000 providers, who must accept form has arrived for Laura and Jay MinnesotaCare patients if they already LaFavor, who live 25 miles from the take patients from public programs, nearest gas station in the northern such as state medical assistance and Minnesota town of Hovland. Public Employee Health Plans. More For a premium of $32 a month, they than 80% of the state's licensed physi- now have family health insurance. cians participate in such plans. They can go to the doctor for the first Doctors are reimbursed by the De- time in years, and it's free. For $3 they partment of Human Services using the can get a prescription filled. For $25, a same billing procedures as state medi- pair of glasses. cal assistance. Their insurance plan? It's called So far, more than 45,000 Minnesotans MinnesotaCare, the continental United are enrolled, and the state estimates up States' most comprehensive state-sub- to 180,000 people, or one-third of the sidized health plan now in operation. state's uninsured, could qualify under When it created the plan last year, the guidelines. If health costs drop. or the Minnesota Legislature targeted the more revenue sources are found. 10% of the state's population too poor guidelines could be liberalized to make to pay for private health insurance but more uninsured residents eligible. not poor enough to qualify for state MinnesotaCare is expected to cost medical assistance. $326 million a year by 1997, offset by While it remains controversial, espe- enrollees' premium payments of $50 cially among physicians, the plan has million. The remainder would be paid become a model for health reformers by the cigarette tax and provider tax. since enrollment opened last October. THE OBJECTIONS. Doctors. clinics "I think it's a cautious but realistic and hospitals call the 2% provider tax plan." said Kala Ladenheim, senior "simply unfair," said Kirk Johnson. research associate for the Intergovern- general counsel for the American Med- mental Health Policy Project at George ical Assn. in Chicago. Washington University. It hasn't The Minnesota Medical Assn. says promised more than it can deliver and the program should be designed to was one that they were able to offer cover all of the uninsured and favors a right away." broad-based tax. something Republi- THE PLAN. MinnesotaCare is paid for can Gov. Arne Carlson opposes. "The by a 5-cent per pack cigarette tax and a tax falls heaviest on primary care 2% revenue tax on health care provid- specialists in small clinics who already ers. Enrollees also pay monthly premi- run their offices on very thin margins," ums, based on their income. Families said A. Stuart Hanson, MMA president. with incomes up to 275% of federal The provider tax kicks in gradually. poverty guidelines are eligible. For a Hospitals and surgical centers had to family of two, that's $25,920. For a ante up as of Jan. 1. Other providers, family of four, it is $39,360, and for six wholesale drug distributors. HMOs and or more, $52,800. Premiums can range nonprofit health service groups will be from $20 to more than $250 a month. taxed later. MinnesotaCare covers doctor visits, Other criticisms: That premiums are limited dental and vision care, immuni- too high for middle income families and zations, diagnostic tests and X-rays, that the hospitalization benefits are most prescription drugs, certain mental inadequate. health and home care, plus outpatient "It's a large Band-Aid. but it's not surgery. emergency room services. and really the solution," Hanson said. up to 10 hours of alcohol or chemical But families who are enrolling think dependency treatment a year. the program is a big step forward. There are limits. It does not cover "For the past five years. I haven't nursing home or catastrophic care. been able to get my teeth fixed, or go to Hospitalization coverage will begin in the eye doctor." said Laura LaFavor. July, but is limited to $10,000 a year for "I'm thrilled with the idea of it." Los Angeles Times 4/16/- 113 SCIENCE/ATMOSPHERE Wider Damage to the Earth's Ozone Layer Is Feared By MARK A. STEIN over the South Pole, develop only when levels over the Northern Hemisphere in flows might explain why high levels of tions produce ozone-eating chlorine TIMES SCIENCE WRITER shifting winds cut off this replenishing late February and early March were 10% chlorine monoxide are measured over monoxide. flow, the scientists believe. below levels at the same time last year. both poles at certain times without pro- Wind patterns usually cause such S cientists studying atmospheric ozone If confirmed by later observations, this "This is twice the year-to-year average ducing the expected drop in the ozone clouds to linger longer over the Antarctic depletion have long believed that would indicate that ozone loss over the fluctuation." Waters said, "and last year level, a paradox that has long perplexed than the Arctic. This, scientists said, is pollutants ravage the Earth's protective poles already could be depleting the was already low." scientists. why an ozone hole hovers over the South ozone layer only at certain times of the protective form of oxygen in the upper Ozone is a lung-searing pollutant at Pole while the ozone is merely thin over year, when sunlight and other conditions atmosphere over a much wider area than low altitudes, but in the upper atmos- previously believed. M artyn Chipperfield of Cambridge the North Pole. are just so. phere it absorbs solar ultraviolet rays University said the finding about This year, however, the Northern Now, however, satellite measurements that cause skin cancer and cataracts. oe Waters, the National Aeronautics chlorine, coming at the beginning of what Hemisphere experienced a particularly made by scientists at the Jet Propulsion J Chlorine-based industrial gases, such as scientists worry will be a particularly bad cold winter, letting these "polar strato- Laboratory in Pasadena and at Edin- and Space Administration scientist who heads a team of scientists using the Upper those found in refrigerators and some fire spring and summer for Earth's atmos- spheric clouds" form earlier and last burgh University in Scotland indicate Atmosphere Research Satellite to mea- extinguishers, destroy ozone. phere. is "an invaluable aid in trying to longer over the Arctic-allowing the that the ozone-destroying process oper- sure atmospheric chemistry, called the Waters and his team discovered that understand and quantify the evolution of creation of more chlorine monoxide. ates for extended periods. new data "a significant reason for con- all of the chlorine in the atmosphere- stratospheric ozone." Waters confirmed that the atmospheric The data, published in today's edition cern." less than 20% of which occurs natural- Until now, it was believed that chlorine satellite detected high levels of that gas of the British journal Nature, suggests However, he said too little is known ly-is converted to an ozone-eating form assumed its highly reactive form only from early December through early that the potentially dangerous ozone loss about atmospheric chemistry to say such as chlorine monoxide. In the past when exposed to sun for extended periods March, or about a month longer than may be masked in the winter and early whether this is the first indication of a scientists believed at least part of the during longer spring and summer days normal. A predictable drop in ozone over spring by the influx of ozone from potentially catastrophic trend or merely a chlorine bonded to other elements to and to immense clouds of water and nitric the hemisphere has since been measured elsewhere on the planet. statistical quirk. form inert combinations. acid. Ice crystals in the clouds provide a by the World Meteorological Organiza- Ozone holes, such as those observed The Nature article says that ozone Evidence of the replenishing ozone surface on which certain chemical reac- tion. Los Angeles Times 4/15/93 114 115 Yeltsin Warns He'll Quit if He Loses Vote Russia: If Parliament also loses, he will remain until new elections can be held, he asserts. By CAREY GOLDBERG rhetorically at a Kremlin press conference. "It's replace the messy patchwork of new and outdated. TIMES STAFF WRITER probably time for him to make up his mind." Soviet ideas now providing the shaky basis for the Under the Russian constitution, if Yeltsin resigns, country's laws. M OSCOW-For the first time since he launched a Rutskoi takes over, a development that Yeltsin The new constitution will carry Western-style grueling pre-referendum campaign last week, a appears determined to avoid. guarantees of rights and freedoms for Russia's citizens, visibly tired Russian President Boris N. Yeltsin laid make the country a "full-blooded federation" and out his plans for the various possible outcomes of the It was unlikely, however, that Rutskoi would agree Thursday, April 15, 1993 provide clear divisions of power that would prevent a nationwide poll set for April 25, reiterating that he to a request from Yeltsin to resign. The former air repetition of the current confusion over who controls would quit if the vote goes against him but in favor of force pilot, general and hero of the Afghanistan war what. the conservative Parliament. has argued that he too was chosen by the Russian Yeltsin broached the idea that his revamped Parlia- If a majority of the Russians who go to the polls vote people and will continue to serve despite his friction ment's upper chamber, to be known as the Federation against him and for the Congress of People's Deputies with the president. Council, could pass the constitution once Russia's 88 dominated by his opponents, "the president will Considered a centrist, Rutskoi has repeatedly blast- regions, republics and provinces had approved it. resign," Yeltsin said, implying that he would do so ed Yeltsin's reforms as overly radical and poorly run. With surprisingly rosy economic figures, Yeltsin immediately. He has also complained that the president's inner also set about trying to prove that the economy is If, however, they reject him and also vote against circle allows him no access to real power. already beginning to stabilize after the initial shock of the Parliament, he will remain president until new the painful reforms he unleashed at the beginning of Asked whether he was requesting Rutskoi to resign, elections can be held. 1992. "There must not be any power vacuum allowed this Yeltsin said that "for ethical considerations, I must tell He said inflation had dropped from 27% a month in time," he said. him that not in public but in private, which I will do." January to 17% a month in March, and was slowing Referendum voters will be asked four questions: The Russian president also announced the elements still further. The drop in Russian production, which whether they trust Yeltsin, whether they support his of the new program he plans to implement if Russia's totaled about 40% over the last two years, has stopped, economic reforms, whether they want early presiden- 108 million voters back him in the referendum. he said. tial elections and whether they want early elections to "If the president wins support at the referendum, his "We have the basis to get out of this crisis," he said. the Parliament. actions will be more decisive," he said with a "There will be no second shock like the one last year." Yeltsin, who has urged Russians to vote yes on all significant smile. Intent on carrying through his reforms, Yeltsin four questions, said he expects the referendum's pushed for the referendum as a last-ditch way to In the latest of a rash of promises he has made WASHINGTON ANGELES TIMES 'How can a vice president work if he results to mean that elections will be held this fall resolve the power struggle between himself and the voters, Yeltsin announced that the millions of Russians more conservative Parliament. disagrees with the reforms done by the rather than in the fall of 1995 for the Parliament and in who now only have the use of garden plots on state Leaders of Russia's 21 semiautonomous ethnic 1996 for the presidency. president? It's probably time for him to land would soon become their owners. With just days left until the vote that may decide his republics agreed Wednesday to take part in the April political fate, Yeltsin, triple-tier bags under his eyes He also warned that he would crack down on 25 vote. Yeltsin met with them and afterward make up his mind.' and his speech carrying its usual slight slur, also said business people who have slipped billions of dollars of declared: "I was worried beforehand that some he would ask for the resignation of his backbiting vice profits abroad, saying they would face criminal republics might not take part, but I no longer have that president. Alexander V. Rutskoi, an increasingly vocal charges. worry." BORIS YELTSIN Commenting on Vice President Alexander V. Rutskoi, an The republics range from tiny tribal territories in critic of his reforms. Giving voters a major hint about his long-term plans Increasingly vocal critic of his reforms the northern Caucasus to the major oil-producing "How can a vice president work if he disagrees with for Russia, Yeltsin also announced the basic outline of region of Tatarstan and the giant diamond-rich the reforms done by the president?" Yeltsin asked the new constitution with which he proposes to republic of Yakutia in Siberia. Yeltsin Agrees to Visit Japan; Shift on Kurils Issue Foreseen By CAREY GOLDBERG States dropped an atomic bomb on days ago, when the Russian news and SAM JAMESON Hiroshima in 1945. The Russian agency Itar-Tass reported that he TIMES STAFF WRITERS government inherited the diplo- might be willing to visit before the matic impasse with the breakup of annual Group of Seven advanced M OSCOW-In an announce- the Soviet Union in 1991. industrial nations' economic sum- ment that astonished Tokyo, On Wednesday. Miyazawa an- mit in Tokyo in July. Russian President Boris N. Yeltsin nounced that Japan will add $1.82 On Wednesday, the Russian said here Wednesday that he is billion to its aid to Russia-bring- leader told a Kremlin news confer- willing to visit Japan in late May. ing its total pledges to $4.6 billion. ence that "an opportunity has ap- Prime Minister Kiichi Miyazawa But Japan has insisted that only a peared to make an official visit to immediately welcomed the propos- resolution of the territorial dispute Japan since Japan's prime minister, Thursday, April 15, 1993 al, which was delivered to him in can open the door to full-scale Mr. Miyazawa, unequivocally stat- Tokyo by Russian Foreign Minister assistance. ed that the two issues will not be Andrei V. Kozyrev. He asked Ko- All of the aid that Japan has directly linked-that is, that of zyrev to work out details with his pledged so far has been given bilateral cooperation, economic co- Japanese counterpart, Kabun Mu- within a framework of internation- operation and territorial issues. to. al cooperation with other advanced Miyazawa, in fact. has made no The announcement indicated countries, and often only after such statement-at least not in that Yeltsin sees the possibility of pressure from the United States. public. But Foreign Minister Muto significant progress in breaking a Until now, the territorial conflict said at a news conference Tuesday 48-year political deadlock that has has appeared insoluble. Last Sep- that Japan would treat "bilateral kept Russian-Japanese relations tember. Yeltsin canceled a sched- problems as bilateral problems, and cool and Japanese aid to Russia uled trip to Japan four days before aid to Russia as aid to Russia-su- relatively modest. he was due to arrive when it perseding all other factors." Muto Special economic zones and joint became clear that a visit would added that Japan would continue to projects already under way in the bring no agreement. insist on the return of the islands. Russian Far East have been hin- Before the aborted visit, Japa- Kozyrev initiated the subject of dered by the inability of the two nese aid to Russia of up to $26 Yeltsin's trip in what originally had countries to agree on the fate of billion had been mentioned unoffi- been billed only as a "courtesy four islands seized by the Soviet cially. If Russia and Japan can call" by declaring that Russia con- Associated Press Union after World War II. The solve their differences, the poten- siders "a solution to the territorial islands are north of Japan's north- tial for economic cooperation is dispute and normalization of diplo- Japan Prime Minister Kilchi Miyazawa, right, greets Russian Foreign Minister Andrei V. Kozyrev in Tokyo. WASHINGTON ANGELES TIMES ernmost main island of Hokkaido tremendous. Russia's Far East matic ties" with Japan to be "im- and at the southern end of the holds vast reserves of raw materi- portant." foreign ministers," the Japanese "late May," Kozyrev told Miyaza- ty over the islands-and leave Kuril chain. als-from wood to gold-that could "Efforts to work toward those official added. wa only that a visit in May is "one open the date for their future Although the Soviet Union and supply Japan's industry. At the goals also are important." a Japa- Muto and Kozyrev, who is visit- possibility." return. Yeltsin, however, declared Japan restored diplomatic relations same time, the region could jump nese Foreign Ministry official ing Tokyo for a conference on aid Shortly before Yeltsin enraged that even that concession was in 1956, the two nations never ahead by decades with Japanese quoted Kozyrev as telling Miyaza- to Russia, are to meet tonight. Miyazawa and other Japanese unacceptable and blamed Japanese signed a peace treaty ending a technological assistance. wa. But whether the territorial Yeltsin said Kozyrev would set leaders by calling off his trip to stubbornness for forcing him to seven-day period of hostilities There had been no hint that issue would be taken up during a dates for his visit while the foreign Tokyo last September, Japan had when the Soviet Union declared Yeltsin had changed his view of the back out of the planned visit. Yeltsin visit "is one of the details to minister is in Tokyo. Although offered to accept Soviet recogni- Goldberg reported from Moscow and war on Japan after the United prospects for compromise until two be hammered out by the two Yeltsin mentioned a plan to visit in tion of Japan's ultimate sovereign- Jameson from Tokyo. Rabin, Mubarak Expect Talks to Resume Diplomacy: The two confer as pressure grows on the Palestinians to join Mideast negotiations next week. By MICHAEL PARKS TIMES STAFF WRITER ISMAILIA. Egypt-With maximum pressure now upon the Palestinians to re- turn to the Arab-Israeli peace talks, Egyptian President Hosni Mubarak and Is- raeli Prime Minister Yitzhak Rabin ex- pressed confidence after meeting Wednes- day that the negotiations will resume next week in Washington following a four- month break. Rabin, intensifying that pressure, said Israel is ready to negotiate with the Pales- tinians on all issues and make the compro- mises necessary to grant them self-gov- ernment and reach a permanent settle- ment-but only within the framework of the Washington talks and not before the Palestinians return. "After meeting President Mubarak, I am much more hopeful, and I stress hopeful, that the peace negotiations will be re- sumed." Rabin said after more than three hours of talks with the Egyptian leader at a villa on the Suez Canal. Mubarak, who had met Tuesday in Cairo with Yasser Arafat, chairman of the Pales- tine Liberation Organization, told Rabin flatly. according to participants in the meeting, that the Palestinians will go to Washington on the terms worked out in re- cent weeks of complex bargaining. That would free other Arab delegations to re- turn as well. Later, at a joint press conference with Rabin, Mubarak qualified his confidence only a bit as he, too, put the burden on the Palestinians for resumption of the talks and, by extension, their success or failure. "There are very great hopes that the talks will be held on [Tuesday]. and this will be decided in the meeting of Arab for- eign ministers) that will take place in Damascus on Friday and Saturday," Mubarak said, basking in Egypt's role as a key mediator. "My big hopes are based on the fact that all the factions want peace." Syria, Jordan and Lebanon are eager to resume the talks. But the Palestinians have sought major Israeli concessions, including the return of almost 400 accused Islamic militants exiled last December, an easing of Israeli restrictions in the occupied West Bank and Gaza Strip and, above all, an im- proved offer on autonomy. Resumption of the talks-and the Pales- tinians return-will be far more than pro- cedural. the two leaders suggested. The Palestinians will be accepting the realpoli- tik of the negotiations and acknowledging their inability to force concessions from Rabin. "If the Palestinians don't come or if they postpone their return, they will miss the train. for the international community, WASHINGTON EDITON LOS ANGELES TIMES Thursday, April 15, 1993 1/2 117 Rabin, Mubarak Expect Talks to Resume namely the United States, will turn its at- tories." But Israel will not go back to its that they, too, would like to keep the talks tention to other world problems.' Mubarak pre-1967 borders, he added. in virtually permanent session as long as declared, according to a participant in the Rabin said Israel might reopen the West they are serious. talks. Bank and Gaza Strip, permitting their resi- Palestinian sources in Cairo said after Rabin assured Mubarak that Israel is dents to work in Israel, if Palestinian vio- Arafat's visit that they had enough of a willing to negotiate everything, including lence against Israelis stops. package to justify returning to the peace "territory for peace." with the Palestini- Determined to get sustained negotiations talks, though a heated debate is likely at ans. either in an interim agreement on au- under way again, Rabin said all the moves the PLO executive committee session in tonomy or in an overall settlement that Israel has been discussing with Egypt, the Tunis today. will follow. Palestinian negotiators have U.S. and the European Community will These, according to Palestinian sources, been seeking such a commitment from Is- come only after the negotiations resume. are some of the most important elements of rael as well as new proposals on self-gov- "The Palestinians have already had a that package: ernment. peek in the envelope, but they get nothing An accelerated timetable for return of "Israel is willing to negotiate with the before sitting down," a senior Israeli offi- the Islamic militants exiled to southern Palestinians on every issue," Rabin told cial said. "We understand their need to Lebanon in December. Mubarak, according to an account of the know what they will get. and we went as The return home of 30 to 40 deportees meeting. 'Everything is negotiable within far as we could with Mubarak to assure from earlier years. the terms of the original letter of invitation them they will get it." An Israeli statement pledging no [from the United States and Soviet Union Israeli officials also expressed support more deportations, though this will depend in October, 1991) and within the frame- for the suggestion, originally made by Ra- on the "security situation." work of the talks. Everything, every- bin but since taken up by the United Restatement of Israel's acceptance of thing." States, for continuous negotiations once U.N. Security Council Resolutions 242 and Referring to the West Bank and Gaza the Washington talks resume. 338, including acknowledgment of "legiti- Strip, seized in the 1967 Arab-Israeli war, "This stop-and-go leads to a lot of mate Palestinian rights" and the principle Rabin told the press conference, "We don't stalls," one Rabin aide remarked. "Once of territorial withdrawal. want to annex the bulk of almost 2 million we start, let's keep going." Times staff writer Kim Murphy in Palestinians residing in the occupied terri- Palestinian negotiators said in Jerusalem Cairo contributed to this story. WASHINGTON EDITON ANGELES TIMES Thursday, April 15, 1993 2/2 118 Comment Even as he proposed budget cuts in ON BUSINESS other science and technology do- mains, Office of Management and Space Age's Budget Director Richard Darman was an outspoken public champion of big- ticket space expenditures. The reality Glory Fades that much of the civilian space pro- gram-from the shuttle to the Hubble telescope to the space station-was From View poorly conceived and unimpressively implemented did not seem to matter much. Political inertia and a nostalgic sense of futurism-not a coherent BY MICHAEL SCHRAGE vision or cost-effective sensibilities- determined multibillion-dollar space 1 35, merica's Space Age won't budgets. A have to suffer through the Indeed, with few notable excep- angst of a mid-life crisis. tions. such as Voyager, the post- The reason is that the Space Age is Apollo era is the story of the gold- already dead. The technologies no plated porkification of space explora- longer define our times, and the public tion with programs and promises that has grown weary of multibillion-dol- delivered less and less for more and more. Go back and read the original lar celestial investments that yield minimal psychic or economic rewards. cost and performance claims for the Space exploration has mutated from space shuttle or the (literally) pie-in- a central focus of America's science the-sky proposals for commercial and technology dialogue into a pe- manufacturing; you won't know ripheral issue. Space is not a meaning- whether to laugh or cry. ful part of the ongoing industrial Even if we ignore the Challenger competitiveness debate, our technolo- tragedy-which we should not-the gy infrastructure discussions or even space program had devolved into our defense conversion policy. initiatives, budgets and numbers that To be sure. America should contin- lacked credibility. That Challenger ue to invest in satellite technologies was seen internally as a horrible for telecommunications and remote accident, rather than the direct result sensing-cheap, deep-space probes of chronic mismanagement, confirmed would be nice too-but the ideal of that self-deception had come to over- space as a meaningful driver of scien- shadow introspection at the civil tific and industrial innovation is now space program. dead. While the Clinton Administration "Sadly. what is really dead is space has kept on the highly regarded Daniel Goldin as administrator of the as something special-as something that embodies American values and National Aeronautics and Space Ad- self-image," says George Washington ministration. it seems clear that space University's John M. Logsdon. a long- Please see SCHRAGE, B7 time observer of U.S. space policy. "I think we're back to an Eisenhower space policy: We'll do space when it STOCKS +11.61 has tangible benefits for the coun- try. But we are no longer going DOW INDUS. AVG. 3,455.64 to invest for preeminence. We clearly are not going to seek space leadership OIL BONDS Per barrel 30-Year U.S. for its own sake." -0.06 -0.03 "The belief that space is the next $20.40 6.75% frontier and that America will follow its manifest destiny and lead mankind DOLLAR GOLD into space is over," says Laurel L. In yen New York Wilkening, the University of Wash- +0.48 +2.00 113.88 $339.70 ington provost who oversaw the Bush Administration's final Space Policy Advisory Board report. "We are still the leader because it just so happens our competitors are in worse shape than we are No space-faring country seems able to do what it takes to keep people in space in a value-en- hancing way." Most important. perhaps, Wilken- ing notes that space investments now seem decoupled from the initiatives and aspirations of tax-paying earth- lings: "People do not see space as a solution to the problems that they worry about." Before the change in administra- tions, it would have been foolish to write an obituary for the Space Age. 1/2 The Bush White House aggressively supported the space program and proposed spending well over $30 bil- lion to build space station Freedom alone. Los Angeles Times 4/15/93 119 SCHRAGE: Space Age's Glory Fades Continued from B5 structure, its technological infra- try and boost aerospace over big- exploration is not being positioned structure and is communications budget programs that pour dollars as either a symbolic or substantive infrastructure. You just can't turn a into key Congressional districts. centerpiece of America's techno- switch off for five or 10 years and "I wish this had happened 10 logical prowess. The space station years ago instead of starting to design budget has-rightly-been happen now," says Bruce Murray, slashed. Space is virtually ignored 'Sadly, what is really a Caltech professor who ran when the Administration champi- NASA's Jet Propulsion Lab in ons its competitiveness agenda. dead is space as Pasadena. "We've put off a lot of So Goldin has been furiously something special-as things we shouldn't have. I trying to restructure NASA as an would rather see a $10-billion agency that justifies a $15-billion something that embodies NASA doing well than a $40-bil- annual investment. He bluntly dis- American values and lion one filled with white ele- misses the notion that either the self-image.' phants." romance or the importance of NASA's future lies somewhere space has diminished. in between. Space will always JOHN M. LOGSDON "Ending our commitment to George Washington University exert a powerful influence on the space would be a catastrophe. I American imagination. But the believe that space is going to play a constraints of our institutions, our significant role in the future of this say that we'll come back to it when ambition and our purse together country, and that this Administra- we're ready." proclaim that space has ceased to tion recognizes that." he insists. "A However, Goldin's visionary fer- be America's future frontier. nation that is not a space-faring vor is tempered by programs that Michael Schrage is a writer, con- nation is a nation that will be in are being sold on the basis of being sultant and research associate at the trouble in the next couple of dec- fast. cheap and cost-effective. He Massachusetts Institute of Technolo- ades. This nation critically stresses NASA initiatives that pro- gy. He writes this column Independ- needs space for its ecological infra- mote technology transfer to indus- ently for The Times. Los Angeles Times 4/15/93 2/2 120 Comment the Republican Party? If so, how ironic, since it was Ronald Reagan who abolished the Fairness Doctrine. ON ENTERTAINMENT Speaking of fairness. Howard, what about Rush Limbaugh? Mouthpiece for the Republican Party. Unofficial Hey, Howard- mouthpiece, maybe. But big mouth- piece nonetheless; George Bush's I'm Supposed overnight guest in the White House: centerpiece of the President's box at last summer's Republican National to Be Biased! Convention: introduced Bush at cam- paign rallies; mouths three hours of daily attacks on Bill Clinton from his Radio commentator responds KFI radio microphone. to media critic's call for Limbaugh's half-hour show is shown twice daily on Channel 13. him to resign after election Howard. I only get three minutes max to Democratic Party post. for my commentary. You want fair- ness? Give me 57 more minutes! By the way, just to bend over BY BILL PRESS backward to be fair, KCOP has invited a conservative, Republican commen- H oward Rosenberg: Get thee to tator to offer a counter-opinion on our a shrink! newscast. If we can find one with In The Times recently, Ro- something to say. senberg first says I'm the best com- mentator in L.A. Then he says I S o what's the problem. Howard? You think politics and media should be fired, just because I was don't mix? Pete Wilson has a weekly elected chair of the California Demo- radio broadcast. State Sen. Quentin cratic Party ("To Stay or Not to Stay at KCOP?," Calendar, April 5). Kopp has a weekly talk show on KGO radio in San Francisco. Last I heard. Is that schizophrenic, or what? What's wrong with my being chair Ted Kennedy and Orin Hatch were of the Democratic Party and a TV dueling it out on CBS. Not to mention Pat Buchanan. Pat Robertson. Ed news commentator at the same time, Howard? Koch. Roger Hedgecock, Bruce Her- shensohn, Susan Estrich and count- Are you afraid my bias will show? less others. I'm hardly the first to stir Where have you been for the last 12 years? After regularly bashing Ron- media and politics together. And be- ald Reagan, George Bush and Dan sides, it's a good brew. I still don't get it. What's the Quayle, is there any doubt I'm a Democrat? After speaking out for the problem. Howard? You don't think I should be actively environment, for affirmative action, involved in anything I talk about? for civil liberties, for choice, for gay rights and against the religious right, Sorry, Howard. You may perch in an ivory tower. I refuse to. I serve on the is there any doubt I'm a liberal? board of Treepeople and the Southern You miss the point, Howard. It's the Christian Leadership Conference. I'm reporter's job, it's the anchor's job, to chair of the L.A. County Insurance be objective, not the commentator's. I Commission. I read and record books get paid for being biased! for the Braille Library. I don't just talk What's the problem. Howard? about the issues. Howard. I care You believe we have to be fair to enough about this community to go out and volunteer my time. And, yes, I'm involved in politics too. Speaking of fairness, Speaking of volunteer activities, Howard, what about Rush Howard: The position of State Chair Limbaugh? Mouthpiece for pays nothing. So I still have to work for a living. Which I will continue the Republican Party. doing, on KCOP-TV and KFI-AM Unofficial mouthpiece, (640). You may get my attention, Howie maybe. But big mouthpiece baby. But you'll never get my job! nonetheless; mouths Commentator Press was elected this three hours of daily attacks month to head the California Democrat- on Bill Clinton from his KFI ic Party. radio microphone. - Los Angeles Times 4/19/02 121 Comment L east-cost environmental planning has won mainstream support dur- ing the past few years. most notably the Republican Party? If so, how ON THE NATION in the air-quality field. where trading ironic, since it was Ronald Reagan systems have been established to who abolished the Fairness Doctrine. create "markets" in which the right to Speaking of fairness. Howard. what How to Save pollute is traded among polluters. about Rush Limbaugh? Mouthpiece private investors and even specula- for the Republican Party. Unofficial tors. The idea is that. given the right mouthpiece, maybe. But big mouth- Environment financial incentives. private compa- piece nonetheless: George Bush's nies will push to discover more effi- overnight guest in the White House: cient ways to reduce pollution. cutting centerpiece of the President's box at and Have Jobs the overall cost of environmental last summer's Republican National protection. Convention: introduced Bush at cam- With wetlands and wildlife regula- By declaring the gnatcatcher paign rallies: mouths three hours of tions constraining new development daily attacks on Bill Clinton from his "threatened," Babbitt opened around the country, landowners and KFI radio microphone. business interests are pushing similar the door to some development Limbaugh's half-hour show is trading ideas for land conservation. shown twice daily on Channel 13. under certain conditions. Federal law in wetlands and wildlife Howard. I only get three minutes max protection is especially rigid. Under the Clean Water Act. wetlands cannot for my commentary. You want fair- By WILLIAM FULTON be disturbed without a permit from ness? Give me 57 more minutes! the Army Corps of Engineers. even if By the way, just to bend over backward to be fair. KCOP has invited VENTURA. Calif the land is privately owned. Under the ruce Babbitt's decision to de- Endangered Species Act, private a conservative. Republican commen- B landowners cannot engage in any tator to offer a counter-opinion on our clare the gnatcatcher as "threatened" shows just how activity that will disrupt the habitat of newscast. If we can find one with much of a political minefield the a species on the endangered list something to say. Endangered Species Act has become. without permission from the U.S. Fish S 0 what's the problem. Howard? The four-inch songbird is important and Wildlife Service. You think politics and media but aggressively protecting it could Some biologists have been looking don't mix? Pete Wilson has a weekly shut down land development across a for ways to assign a value to wetlands radio broadcast. State Sen. Quentin large swath of Southern California. As and wildlife habitats. Such a ranking system would permit prioritization. Kopp has a weekly talk show on KGO an environmentalist with impeccable credentials. he can't suggest tamper- "triage" of low-value land. and possi- radio in San Francisco. Last I heard. ing with the environmental move- bly lead to trading systems similar to Ted Kennedy and Orin Hatch were ment's crown jewel-the Endangered those used in air pollution. Developers dueling it out on CBS. Not to mention and the oil-and-gas industry are Pat Buchanan. Pat Robertson. Ed Species Act. But as a Cabinet member pushing to create a constituency for Koch. Roger Hedgecock, Bruce Her- working for a President whose top priority IS economic recovery. the introducing these concepts into the shensohn. Susan Estrich and count- Clean Water Act and the Endangered less others. I'm hardly the first to stir interior secretary must acknowledge that the political underpinnings of Species Act. both of which are up for media and politics together. And be- U.S. environmental policy have shift- reauthorization. sides, it's a good brew. ed. The problem is that we don't know 1 still don't get it. What's the Babbitt hopes to use the "threat- how to value a piece of land as problem. Howard? ened" designation to prove that the wetlands or habitat. Though many You don't think I should be actively most inflexible environmental law in biologists are keen on the idea that involved in anything I talk about? the country can serve both economic "indicator" species can be used to Sorry. Howard. You may perch in an and environmental goals. In encour- track the overall health of most ivory tower. I refuse to. I serve on the aging landowners to participate in the wildlife, there are millions of plant board of Treepeople and the Southern creation of a multi-species habitat in and animal species and we know little Christian Leadership Conference. I'm Southern California. he is trying to about most of them. Accordingly. chair of the L.A. County Insurance exploit what little wiggle room the act environmentalists are not eager to Commission. I read and record books allows. Babbitt has to demonstrate amend federal law to permit ranking for the Braille Library. I don't just talk that the old regulation regime can be and trading of land based on its about the issues, Howard. I care adapted to changing circumstances. If purported environmental value. They enough about this community to go he fails, the environmental movement also fear that business interests will out and volunteer my time. And, yes, and the Administration may be forced Please see FULTON, A5 I'm involved in politics too. to play the environmental game by a Speaking of volunteer activities. new-and undesirable-set of rules. William Fulton is the editor of the Howard: The position of State Chair Recent polls suggest that the aver- Ventura-based California Planning and pays nothing. So I still have to work age Californian's support for environ- Development Report and author of for a living. Which I will continue mental protection is eroding in the "Guide to California Planning" (Solano doing. on KCOP-TV and KFI-AM face of hard times. What's really Press Books). He teaches in the Envi- (640). happening, though. is something far ronmental Studies Program at UC San- You may get my attention, Howie more subtle. We still want as much to Barbara. baby. But you'll never get my job! environmental protection as ever. But we're no longer willing to pay the Commentator Press was elected this high price of "command and control" month to head the California Democrat- regulatory structures. in which gov- ic Party. ernment agencies admonish. in min- ute detail. private businesses on what they can and cannot do. What's emerging is a consensus for "least cost" environmental protec- tion-getting the most protection pos- sible with the minimum of economic disruption. The question is whether it will come through market-like trad- ing systems or through negotiations similar to those involving the gnat- catcher. Los 4/15/93 Angeles 122 "If you know the real concerns of Japan, you can craft efforts to further World American interests without unneces- sarily angering Japan," says one American executive who declined to ANALYSIS be named. You can take advantage of the factionalism among the govern- U.S. Rookies ment ministries.' When Secretary Brown recently sent Japan a note demanding that to Face Japan's Japanese auto companies fulfill a vol- untary pledge to buy more auto parts, he only increased Japan's resolve not Stars to make similar offers in the future. While the contacts of American of ficials are limited to the small number of Japanese officials assigned to deal with foreigners, Miyazawa's entourage BY LESLIE HELM is filled with bureaucrats educated abroad who speak almost flawless TOKYO English and hobnob with a broad When President Clinton and his range of influential people in govern- crew meet with Japanese Prime Min- ment, academia and the media. ister Kiichi Miyazawa and his en- Consider Yukio Sato, the Director- tourage Friday to talk tough on trade. General of the North American Affairs they could find themselves outgunned Bureau of the Foreign Ministry. Born by better-equipped Japanese negotia- the son of a Buddhist priest, Sato was tors. sent by the Foreign Ministry to study Start at the top. Clinton's experi- at Edinburgh University in 1961; he ence with Japan is limited to three perfected his English there. He later short trips he made as governor of spent a year at the prestigious Inter- Arkansas to attract Japanese invest- national Institute for Strategic Studies ment. He's a fast learner, but his re- in London. cent comments on Japan-that The American tendency to appoint Japan's trade surplus shows its mar- thousands of new officials with each ket is closed, plus his tip to Russian new administration means Clinton's President Boris N. Yeltsin in private officials must virtually start from dinner conversation at the Vancouver scratch when it comes to learning summit that Japanese tend to say about the negotiating styles and prac- "yes" when they mean "no"-show tices of their foreign counterparts. he has a crude, if not inaccurate, un- On the Japanese side, virtually derstanding of Japan. every key official has been steeped in In contrast, Miyazawa has spent trade issues for decades. Noboru virtually his whole career dealing with Hatakeyama, Vice Minister for Inter- trade issues. He has been Japan's chief national Affairs at the Ministry of In- delegate to past General Agreement ternational Trade and Industry, spent on Tariffs and Trade talks, and as a 4 years in Chicago promoting Japanese former minister of international trade exports to America. and industry he has an intimate knowledge of the strengths and weak- Hatakeyama was a central figure in nesses of Japanese and American in- implementing the semiconductor dustry. As a former bureaucrat in the agreement. under which Japan offered elite Finance Ministry, he has a quick to double the foreign share of its chip grasp of numbers. market by the end of 1992. He was also And Miyazawa speaks good English. key in implementing the Structural so the two leaders can converse with- Impediments Initiative, an effort to re- out the awkwardness of an inter- move structural barriers to Japanese preter. imports. And Hatakeyama was the Miyazawa also knows when to hold man sent to America in 1987 to calm and when to fold. Although Japan has tempers after a Toshiba subsidiary been accused of blocking- GATT was discovered to have exported sen- progress by refusing to liberalize its sitive machinery to the Soviet Union rice market, Miyazawa won't give in and U.S. Congressmen were using on the politically sensitive rice ques- mallets to bash Japanese televisions. tion until the last minute. By contrast, "there is little continu- Now look at Clinton's key ap- ity on the American side," says Ku- pointees. Winston Lord, who is in niko Inoguchi of Tokyo's Sophia Uni- charge of East Asian affairs at the versity. "In terms of developing ex- State Department, is a China expert pertise in dealing with trade problems with little knowledge of Japan or the in specific sectors, the U:S. side will be region's economic forces. at a lisadvantage U.S. Trade Representative Mickey Kantor and Commerce Secretary Ronald H. Brown, both lawyers, have worked for Japanese clients and know the Japanese position on many trade issues. But neither they nor any of the senior members of their respective or- ganizations speak Japanese or have in-depth knowledge of Japan. Those versed in Japanese issues and knowing the country's pressure points are better equipped to win Japanese support for issues of concern to Amer- icans. Los Angeles Times 4/15/93 123 PERSPECTIVE ON U.S.-JAPAN POLICY Back Tough Talk With Firm Action only about 10% of American challengers to American air and naval Allowing economic ties merchandise trade goes to Ja- mastery exist in East Asia. Further. the to evolve toward rivalry pan. The United States gener- United States enjoys good relations with ates nearly 75% of Japan's all the key states in the region, except could be a tonic to trade surplus. Japan accounts for international pariah North Korea. If bilateral relations and for nearly 50% of the Ameri- Japan were to return to its old expan- can trade deficit. If trade were sionist ways, an American-led defensive lessen interdependence. curtailed, Japan would suffer alliance would arise so quickly, and in the loss mightily, while the such dimensions, as to make the coali- By JOHN ARQUILLA United States would see tre- tion that defeated Saddam Hussein look mendous improvement in its like a volunteer fire department. How- T he most striking element of Presi- current account. Also, Japan's paucity of ever, if China develops aggressive aims dent Clinton's emerging policy toward Japan is his declared wil- natural resources and dependence on in the region, why shouldn't Japan possess an independent conventional lingness to act forcefully to redress defensive capability? This would only economic disparities in bilateral rela- provide long overdue relief for the tions. Two of his key advisers, Secretary United States, as some of the burden of of State Warren Christopher and Trade ensuring regional security would finally Representative Mickey Kantor. have be lifted from its shoulders. also spoken of the merits of pressuring Japan to open its markets further to JAPAN As he confronts the looming crisis in U.S.-Japan relations, President Clinton American goods. Prime Minister Kiichi must guard his domestic political flanks, Miyazawa will no doubt hear more of even as he presses for trade and other this during his current visit to the economic concessions from Tokyo. He United States. but he will take American must forcefully rebut those whose hab- admonitions to heart only if he believes its of mind and institutional interests that firm action will follow from the encourage them to conjure up fearful "tough talk." On this point, the outlook images of Japanese economic retaliation seems poor. or military resurgence. The facts will The President's sound basic instincts help him here, but more than truth is have fallen afoul of the twin pillars of required to still his opposition. The the conventional wisdom on U.S.-Japan President must "go public" on this issue, relations. In the economic realm, experts as he did to gain support for his plan for worry that Japanese retaliatory actions economic renewal. Then. the certain might spark. as historian Paul Kennedy outpouring of public support for a "get- has written, "another Great Depres- tough" policy toward Japan will silence sion." In the security sphere, concerns have JAPAN his critics. Ironically, talking and acting tougher arisen that tensions in the U.S.-Japan toward Japan may prove a tonic for alliance might disrupt the East Asian bilateral relations. There have long been balance of power or foster a resurgence sentiments in Tokyo that the existing of Japanese militarism, as the United relationship is unnaturally. unhealthily States would no longer serve in the role close. Allowing economic relations to of what Marine Gen. Henry Stackpole evolve more toward rivalry will lessen calls the "cap in the bottle." These interdependence and, perhaps, encour- views have dominated American policy age Japan to articulate more fully a toward Japan for many years. They also foreign policy of its own, toward the severely overstate the risks of change United States and the world. If Presi- and underestimate the costs of main- taining the status quo in U.S.-Japan Clinton, the graffiti artist. dent Clinton can start and sustain such a process. with public support, he will relations. have done a great service to both On the economic front, interdepend- trade makes it far more vulnerable to countries. ence does exist, but Japan shows far pressure than the resource-rich United greater vulnerability to disruption than States, for which total imports constitute John Arquilla is a strategic analyst the United States does. In merchandise less than 10% of the gross domestic based in Southern California. He is writ- trade. for example, 33% of Japan's product. ing a book on the future of U.S.-Japan exports go to the United States, while As to security matters, no viable relations. Los Angeles Times 4/15/93 124 By Some Miracle, Are They Alive? Shocking MIA document opens old wounds F or two decades the Ha- months before repatriation noi government has began. Vessey must demand a steadfastly maintained full accounting: names, that it repatriated all the whether-by some miracle- American prisoners of war it any are still alive, and the held in 1973, when U.S. forces date and circumstances of withdrew from Vietnam un- death for those who perished. der terms of the Paris peace The document now in U.S. agreement, and that it had hands was purportedly writ- absolutely no information ten by a North Vietnamese about the fate of other ser- general in September, 1972, vicemen either missing in ac- when Hanoi was publicly say- tion or known to ing that it was hold- have been captured. ing only 368 U.S. A top-secret docu- POWs. The true fig- ment found by Har- ure, wrote Gen. Tran vard researcher Ste- Van Quang to North phen Morris in the Vietnam's top lead- archives of the Com- ership, was 1,205, munist Party of the held in 11 different Soviet Union now prison camps. Seven appears to expose months later, 591 that claim as a lie. Americans were set The White House free, with North says the new infor- Envoy Vessey Vietnam claiming it mation will be a top had emptied the issue when President Clin- camps. By Quang's own count ton's special envoy on the 614 men were kept behind, prisoner-of-war issue, retired their very existence denied by Army Gen. John W. Vessey, Hanoi. Why? Was this part of meets with Vietnamese offi- a larger political calculation, cials in Hanoi this weekend. or simply an act of vengeful Spokeswoman Dee Dee Myers cruelty? said that "we need to know For 18 years, since the com- that the Vietnamese are doing munist victory in the Indochi- all they can on the issue" na war, the United States has before efforts to normalize maintained a trade embargo relations proceed. The prob- against Vietnam. As Hanoi lem is that the officials Vessey moves to adjust to post-Cold will ask to do "all they can" War economic and political are to a great extent the same realities, American business officials who all along have and governmental interest in denied knowing anything dropping the sanctions has about the missing men. increased. Now, suddenly and Vietnam says the explosive emphatically, the whole document is a fabrication, but POW-MIA issue has again American experts believe been brought to the forefront that-although it may not be of U.S.-Vietnam relations. accurate in every particular- The new evidence of Hanoi's it is authentic. The urgent apparent deceit must be con- question now is not whether fronted. With all the force at Hanoi hid the truth but what its command, Washington happened to the captives who must insist on getting the full are now believed to have been facts and the terrible truths held in prison camps just a few about the missing servicemen. Los Angeles Times 4/15/93 125 Equality-N Equivocation Aspin's initiatives need to open up military for women The continuing debate over keeping them off the crews of move that will, in effect, fore- whether women should be combat aircraft and out of close a key class of jobs to allowed to volunteer for mili- ground combat units. Yet women. tary combat jobs is a case Bush left office without acting That's why Aspin's an- study in the perils of incre- on the commission's recom- nouncement last week that he mentalism. Far from defusing mendations. is preparing a package of initi- the issue of combat service, The Tailhook sexual harass- atives that will open new the military's policy of slowly ment scandal is also unre- combat positions to women loosening the restrictions that solved; release of a report on throughout the armed forces historically have hamstrung the 1991 aviators convention, is another step, but only a women has served instead to expected to be highly damag- step, in the right direction. generate ever more heat on ing to the Navy, is held up Rather than let the Navy the services to move faster pending the naming of a new move on its own and let the toward complete integration secretary of the Navy. Air Force implement a policy of men and women. The Navy, which wants to that would in effect restrict Defense Secretary Les As- improve its tarnished image, jobs for women, Aspin said, pin is caught smack in the recently proposed putting the combat issue must be middle of this revolution of women aboard some of its reviewed as a single package rising expectations, having in- men-only warships, a move applying to all the services. herited several controversies. that falls short of the commis- "Consistency-that's got to Last fall en-President sion's more sweeping recom- happen," he said. He's right, George Bush's Commission on mendation. But at the same but along with consistency the Assignment of Women in time the Air Force announced Aspin and the services need to Combat recommended allow- that it will permit only pilots demonstrate clear, continuing ing women to serve on most from combat units to become progress toward full equality, surface combat ships but fighter pilot instructors, a not more equivocation. 126 APR 15 '93 00:38 SEATTLE PI WIRE P.1 Seattle Post-Intalligencer, Thursday, April 15, 1993 Score one for each Phone side over timber 8 202-456-6485 Thomas is named Department's La Grande, Ore., lab. He directed the leading study islation, was welcomed by Anne Heissenbuttel, director of forest to lead ecosystem on how to protect the threatened planning and policy for the Amer- northern spotted owl, which management group ican Forest & Paper Association. rocked the timber industry when "The abusive effects of the it was published in 1990. He was agency's appeals process. which one of the so-called "Gang of P-I Staff and News Services moved Congress to act, continue Four." four leading scientists who to be felt in communities depen- Timber interests and environ- estimated in 1991 how a variety of dent on the national forests," she Dept timber sale levels would affect the mental groups each won a round said. As of last Oct. 1, 1,626 long-term survival of fish and yesterday in their continuing wildlife species. He also headed a appeals were pending, she noted, struggle over timber from federal broad scientific panel's review up from 1,453 the previous year, forests. The Forest Service said the The White House chose Forest that fleshed out the 1991 study last month with details on the rule would streamline agency de- Service biologist Jack Ward viability of almost 700 species. cisions and reduce uncertainty Thomas :0 head an interagency about timber sales, both for the The lust two studies have sug- working group on ecosystem man- Forest Service and the communi- agement. Thomas' selection ap- gested that even the sharp cuts recommended to date In timber ties dependent on its timber sup- peared likely to please environ- sales to protect the spotted ow! plies Some environmental groups mentalists cy making it unlikely protested that the proposed rule will be Insufficient 10 protect the that the group will back away old-growth forest ecosystem and goes beyond what Congress autho- from recent calls for sharp cuts in its dependent wildlife. rized. Sen. Patrick Leahy, D-Vt., timber sales to protect wildlife. Going further, the latest report chairman of the Senate Agricul- The Forest Service, mean. ture Committee, was to meet late appeared to prod the federal while, addressed a long-standing yesterday with Forest Service offi- government to state clearly that clais to discuss the matter. Industry concern when It pro- timber harvest should be allowed posed new rules to speed deci- only after likely preservation of END sions on administrative appeals native species is assured. challenging timber sales. If the That is bad news to timber new rules take effect, they would interests that depend on federal make It harder to delay timber lands. They have said the govern. sales simply by pursuing appeals. ment should consider the viability Thomas' appointment was one of timber towns, businesses and of three announced yesterday by families on at least an equal basis the Clinton administration, which with wildlife. has promised to craft B settlement Thomas has skirted such is. to the Northwest timber stalemate SUCR, saying they are for politi- by June 1. cians, not scientists, to decide. Also named were Peter Yu of They could be considered by the the National Economic Council to other two panels, but the White lead a group on Labor and Com- House gave no indication of that. munity Assistance, and Jim Pipkin The lubor and community as- of the Interior Department to load sistance panel, the statement said, a group seeking better relation- will "identify alternatives for as- ships between federal and state sisting individuals and communi- agencies in the region. tics affected by changes in federal Yu and Pipkin lack Thomas' timber sales programs and poll- background in the timber issue cies in the region.' and national reputation, so his The Forest Service's proposed influence could be great. rule on administrative appeals, Thomas heads the Agriculture which would implement new leg. 127 The Bes Moines Register White House News Summary Page TAKING ON CLINTON Rhetoric, Reality He said, "There is 8 difference I Gramm between the rhetoric and the reali- ( ty" of Clinton's program. "He spends twice as much on social programs as c leads GOP Lyndon Johnson did at the height of is Long-winded Speech the Great Society Never have I to Gramm keynoted the 1992 Repub- seen a greater guif between rhetoric F lican National Convention but deliv- and reality than 1 have seen on this ( ered a long-winded speech that got attack budget." bad marks from many delegates. Gramm said Clinton "is a great Some said he hurt his chances for the salesman but he is selling a bad prod- 1996 nomination, but Gramm said uct," many of them pork barrel proj- "the speech was about issues people in Iowa ects like building "alpine aid slides" care about. Maybe if we had more in Puerto Rico. The Clinton adminis- speeches like mine on the issues that tration defends these projects as im- a people cared about, we might have mediate job-creating programs nec- 8. bored people to death, but we might essary to curb unemployment in have won the election." t By DAVID YEPSEN depressed areas of the country. a That convention and the subse- be REGISTER STAFF WRITER Gramm was having none of that Wednesday as he told his Ames audi- 1 quent campaign saw some divisive- B ness over social issues inside GOP t of Ames, In. - Texas Sen. Phil once "It is not right for America to be P ranks. Gramm said, "We've got to to- ca Gramm arrived in Iowa Wednesday raising the deficit. If the presi- V I cus on the things that made people to open a two-day attack on Prest- dent thinks these projects are impor- c Republicans to begin with. In the dent Clinton's tant enough, let him propose a way ( 20th century, there have been only ti budget and ofpaying for them." two fixed stars for the Republican P remind local Re- t State Republican central commit- & party: They've been the pursuit of m publicans of his tel member Kayne Robinson of Des ( peace and prosperity. When we're P t own presidential 1 Meines. who supported Kansas Sen. guided by those stars, we have been f ambitions in Bob Dole in the 1988 caucus fight, t the majority party and we've gov- Y 1996. said Wednesday he's likely to sup- F 1 erned America well." The 50-year- port Gramm in the 1996 battles. € old lawmaker is t scheduled to He said Gramm likes one-on-one make five stops campaigning that is key to caucus victories. Gramm in lowa as part of Plans five stops a nationwide as- "He'll do very well. He has Chuck sault on Clinton's Grassley's ability to talk with people and really connect. He puts things in program by the GOP. He has been terms the average American can un- one of the Senate Republicans lead- derstand." he said. ing the filibuster against Clinton's budget Gramm told about 50 Republicans at the Firstar Bank here Wednesday triat "I am not here to announce my candidacy for president. But the more I watch Bill Clinton raise taxes on the working men and women of America and then squander their money, it makes me look harder at running in 1996." 123 TRADE TENSIONS U.S. beef "Really Abusive" But leaders of the National Cattlemen's Association Wednes industry day said that was still too high "We think that is really abusive, said Clay Daulton, a California rancher and head of the associa- takes aimi tion's foreign trade committee. "We want them to reduce It 10 per cent a year untill It's gone." Daulton and other Cattlemen's at Japan Association leaders were attendings an international beef conference in Sydney, Australia, and spoke tem American reporters in & telephone? Leaders of a cattlemen's press conference. As they pushed for Japan to group say tariffs on U.S. open markets, the U.S. cattlement defended this country's meat in-1) beef are still too high. port quota from sharp criticism from cattlemen in Australia That By DIRCK STEIMEL wasn't easy, admitted Roger Stur REGISTER Business WRITER ber, & North Dakota cattleinan who is president of the Cattlemen's As- The nation's beef producers sociation. Wednesday fired a salvo at Japan "They really beat us up on that, for its high beaf tariffs, while they.: he said. defended their flank against Australia is trying to boost ex- attacks from ranchers in other new. ports because drought is parching tions who criticised U.S. beef imme the grazing land there, leading. port quotas. farmers to slaughter more cattle. Meanwhile, representatives of But the U.S. mest import quota, de-4 the nation's hog raisers are pushing/ signed to keep foreign meat from- hard to get U.S. pork shipments, flooding into American markets past balky Russian inspectors and when domestic meat supplies are are confident the recent problems high, has limited the Australians' in Moscow can be resolved. ability to ship meat here. The growing concern about for The American cattle leaders de sign markets and trade disputes is fended the import quota. "We don't a sign of the times for beef and feel we should be the buffer nation pork raisers. "The exports are real? for variations in their supply,' ly driving the markets now," said' Daulton said. Dermot Hayes, head of the Meat Export Research Center at Ioway Back Trade Pact State University. However, association leaders One of the big engines of meat said they supported the approval export growth has been Japan's deec of the long-awaited international cision - after intense American trade pact, called the General pressure - to gradually reducet Agreement on Tariffs and Trade barriers on imported meat, Hayes II said. In the latest reduction, whichs MEAT Please turn to Page 75 kicked in April 1, Tokyo lowered. the import tariff to 50 percent. Beef industry hits Japan MEAT age to help Ruesia, were held cause Russian authorities said US, certifications on the meats' whole Continued from Page as somenaes did not fit Moscow's stan dards. The Des Moines Register even though it would spell the end of the U.S. meet import quota system. AI Tank. foreign trade director of Hayes said he wonders whether the National Pork Producers Coup- the cattlemen may eventually decide di, said it was likely Russia would to "rethink" their support for the im- allow a "grace period" to work out port quota with or without GATT. the dispute over the certifications, The quota was designed at a time U.S. meat shipments would be allow when meat exports meant far less to ed to enter Russia during that period the United States than they do now, and the two nations probably could he said. Because of that, the quota work out the certification process, system could limit U.S. mest exports he said. because other nations always point However, Tank said it is interest at it as they defend their own trade ing that the Russian action closely follows a European Community ben barriers, he said. U.S. pork industry officials were of meat imports from Eastern Ev. confident Wednesday that mest rope, which has stranded 8 lot of being held at Russian ports will be mest exports from that region. "You released to be sold to consumers. The just have to wonder if there is any pork shipments, part of an aid pack- linkage," he said. 129 SENT BY:D. M. REGISTER NEWSROOM; 4-14-93 :10:20PM ; D.M. REGISTER NEWS- The White House:# 3 The Bes Moines Register White House News Summary Page 2 Get tougher with Serbia T here seem to be no limits to what mind before hundreds of thousands of Bosnian Serbs will do to incorporate troops are placed in jeopardy. their territory with "Greater Ser- Allow the non-Serb Bosnians to arm bia." Tuesday's massacre of 56 people - themselves? That, too, is problematic even including 15 children - in the Muslim though there is a certain attraction to the community of Srebrenica is just the latest level-the-playing-field theory. The greater in a string of atrocities that neither the Eu- fear is of even worse fightting, which could ropean Community nor the rest of the expand into other Balkan countries, Greece world seems able to stop. and Turkey. The latest massacre came one day after There is another approach. The United NATO warplanes began enforcing a U.N.- Nations Security Council was to have imposed no-fly zone over Bosnia. It was as taken up the question of stiffer economic If the Serbs are determined to prove the weakness of the United Nations response sanctions against the two remaining Yugo- to "ethnic cleansing." slavian republics of Serbia and Montenegro And yet, what should that response be? this week, but held off at the request of Military intervention? That's increasing- Russia. Economic sanctions don't often ly discussed. The New York Times has re- work, but they are a far cry from doing ported that a Clinton administration team nothing. The sanctions, if coupled with se- of experts sent to Boania earlier this year lective air strikes against Serbian military recommended that military protection be targots, could tilt the balance sufficiently provided for civilian "safe havens" in to force the Serbs to sign a peace plan that Bosnia. It also urged that military inter- already has been signed by Muslim and vention be used to support aid efforts and Croat representatives. to stop the shelling of Bosnian cities. It is a pity that Bosnia's European neigh- But then what? Could military force real- bors and the United States 50 clumsily and ly make a new order out of the disorder ineffectively handled the breakup of Yugo- that remains of Yugoslavia? Nobody seems slavia a year ago, when clear lines could to know, which is why the option has been have been drawn and enforced. The goal discussed but not carried out. Even Bill now ought to be to ensure that things don't Clinton, who during his election campaign get much worse. There are steps, short of leaned toward the military option, has deploying ground troops, that can be backed off. A final outcome had best be in taken. Why wait? 130 APR-15-93 THU 0:42 BOSTON GLOBE FAX NO. 6179293186 P. 02/10 From Boston Globe Page 1 Jeffords is pressed hard on jobs bill By Lawa A. Kierman in the brown pinstriped suit he wore yesterday. is GLOBUSTAFF clearly in the spotlight. With less than five days to go before Congress reconvenes, Jeffords is on the "A" BURLINGTON, Vt. - Standing in a sea of list of senators targeted as potential swing votes in broken appliances yesterday, Ron Krupp, the the Democrats' attempt to break a GOP filibuster director of Regycle North, had just explained to US that has stalled the jobs bill. Sen. James M. Jeffords why his nonprofit group On a minitour yesterday, he stopped in the needed President Clinton's jobs bill, which Senate country town of Biistol, gamely donned a hair net Republicans. including Jeffords, have stalled. and cruised through the workroom at Autumn Harp, "This is real. This isn't fluff," said Krupp, who a company that makes natural products including would use some of the bill's grant money to train "Un-Petroleum Jelly." homeless people and others to repair all the out-of- "I don't think he should bow to the pressure." the order things around him. company's founder, Kevin Harper, said of Jeffords Then. into this dusty cluttered warehouse far whom he described as a independent-minded from the power-contiders in Washington, came a call "sti aight-shooter." Yet Harper, who began his $13 from the White House. million business 15 years ago with $500 and a little "Yes yes sure sure OK airight," herb know-how, wants the jobs package approved. "I said the senator. bunched over the telephone. think the country needs the stimulus," he said. Jeffords may have left Washington, but Jeffords has a reputation for straying far from Washington will not leave Jeffords alone this week. the GOP pack. In 1981, as a congressman, he was the As a moderate Recublican, he is seen by both only Republican to vote against President Reagan's Republicans and Democrats 33 3 potential turncoat tax cuts. In 1987, he was the only GOP House in the battle over Clinton's $16.3 billion economic member to support a Democratic effort to eliminate stimulus package. some tax breaks for the wealthy. He waited until the Vice President Al Gore called Jeffords Tuesday very end to support the Bush administration's effort night at his Vermont home and the two had a in the Persian Gulf War. He was one of only two "constructive" conversation. Jeffords reported. GOP senators to oppose the nomination of US Health and Human Services Secretary Donna Supreme Court Justice Clarence Thomas and he did Shalaia talked to him last week. Labor Secretary so even before Anita Hill's allegations of sexual Robert Reich tried to reach him, and assistant harassment. budget director Alice Rivlin made the pitch for the Jeffords. a consistent moderate to liberal on jobs package on a Incal talk radio show. social issues. has already signaled to the Clinton And. in what was fumily described as a administration that he can side with it on some "coincidence." Sen. Bob Dole of Kansas, the matters. Clinton tracked Jeffords down in Republican leader and leader of his party's jobs bill Damascus. Syria, to thank him for supporting the skirmishes, was in Builington yesterday for a family leave act. Jeffords campaign fund-raiser. But, the Democrats' approach to getting the So a gaggie of reporters and a network television stimulus bill passed - "steamrolling it through crew turned anxiously to Jeffords when he hung up taking us for granted," in Jeffords' words - was one the telephone yesterday, poised for the blow by blow of the "dumb" things the Clinton administration did. on the ultimate political massage. Jeffords said. The tactics, he said, provoked him into "Sorry to disappoint you all. but that was on joining ranks in the Senate filibuster. Russian aid." Jeffords said, wearing an impish grin But beyond failing to pay respect to political and reporting that the caller was merely a White adversaries, Jeffords said his real problem with the House staff member. Coincidence, he protested. bill, which he wants cut in half, is that it just adds to although be admitted it made him feel like part of the already staggering deficit. the "team." "Nalve, am 17" he demined when asked "You've got to have the courage to corder if it all wasn't part of the White House courtship priorities and cross some things off that aren't as Jeffords, a quick but down-home kind of guy who much of a priority," Jeffords said in an interview this looks more at ease in a sweater and workboots than week in his home in North Shrewesbury: 131 APR-15-93 THU 0:43 BOSTON GLOBE FAX NO. 6179293186 P. 03/10 1 He would approve money for an extension of Democrat, said in a telephone interview. "There isn't unemployment benefits, childhood immunizations any pork in the Vermont list." and some jobs programs, Jeffords said. but other Yesterday the Vermont Democratic Party held programs, like community development block what it billed as a "community press conference" mants, are not "emergencies" that justify adding to featuring Vermonter who would benefit from the Clinton jobs bill. the deficit. Vermiont Democrats have countered with a In the past week, Dean said he has been grass-roots campaign this week focusing on the contacted twice by the White House, looking for his advice on how to win Jeffords over to their side. estimated $30 million in federal funds that would come to the state if the bill is passed. "I told them they ought to sit down with him and Gov. Howard Dean's office released details of find a middle ground," Dean said, adding that he how that $80 million would be used, including $2.4 expected Jeffords would be invited to sit down at the White House. million for summer jobs, $13 million for highways and $4.7 million in community development block Jeffords, as is his way, said simply that he would do what was "right." grants. "The state is in significant financial trouble and I think we can puc a lot of people to work." Dean, a 132 THU 0:48 BUSTON GLOBE FAX NU. 6179293186 From Boston Globe Page 3 Sales tax mulled for health plan By Michael Kranish Yesterday. speculation was renewed about a and Elizabeth Neuffer value-added tax after Alice Rivlin. deputy director of GLOBE STARF the Office of Management and Budget, told the National Association of Manufacturers that WASHINGTON - Two months after President extending health care to the uninsured would "take Clinton said a national sales tax was not under some more resources. and a VAT or a general sales consi deration to pay for his health care plan, three of tax has a good deal to recommend it." his top aides said yesterday the politically volatile In a recent interview with USA Today, Shalala proposal is being seriously considered. said, "Certainly we're looking at a VAT but all of The suggestion by Donna Shalala, secretary of this would be phased in." health and human services, and two other senior A White House briefing yesterday was administration officials appeared to be a calculated dominated by questions about whether Clinton was trial balloon, and it came as the president's Task reversing himself in allowing a value-added tax to be Force on National Health Care Reform struggles considered. Clinton said in Ohio on Feb. 19 that such with how to finance the health plan. a tax might be necessary in another decade. adding, According to one senior administ ation official, If we start considering it, I'll tell you." health advisers have concluded that the package of While Clinton has never retreated fi om that taxes and cost controls now under consideration will position, Shalala and two other officials said this not cover the costs of universal insurance coverage. week that the tax is under consideration. Yesterday, But other top officials, who spoke on condition of Clinton spokesman George Stephanopoulos added to anonymity, discounted the suggestion that a value- the speculation by saying it is "indisputably true" added tax could finance the nation's health overhaul that the president might consider the sales tax. plan. Two senior officials said Clinton would not Stephanopoulos added, "I'm acknowledging that propose such a tax because of opposition on Capitol the task force has studied this proposal. I am also Hill. stating that the president has not made a decision on Debates over a value-added tax have long rocked it." lawmakers and the Clinton health task force. The surge of speculation about the value-added Advocates say the tax is the fairest way to pay for tax may be similar to the controversy earlier this overhauling health care. But crities say the year over whether Clinton would reduce the cost-of- administrative costs of levying the tax far outweigh living allowance for Social Security recipients. its benefits. In that case. shortly after Treasury Secretary Clinton's health advisers have estimated it will Lloyd Bentsen floated the idea, it was shot down by cost $30 billion to $90 billion a year to cover the Clinton. When the president eventually proposed a nation's uninsured. A combination of taxes on tax increase on higher-income Social Security orgarettes and alcohol. taxes on health benefits above recipients, it was greated with relief from many & required package, and some short-term price senior citizens, who had greater fears about the cost- controls have emerged in recent weeks as likely of-living roilback. contenders for financing the plan. But the tasi. force has made no decisions. Last Material from the Associated Press was used in week, top health aide Tra Magaziner said as many as this report. 20 taxes were on the table. 133 APR-15-93 THU 0:45 BUSTON GLOBE FAX NU. 6179293186 r. From Boston Globe Page 1 Care at end not as costly as assumed money." By Richard A. Knox Ronald Bayer, a Columbia University ethicist, CLOBE STAFF said be recently heard one of the leaders of Hillary The cost of medical care in the last year of life is Rodham Clinton's task for ce on health care repeat not the driving force in health care cost inflation that this conventional wisdom. "There is a perception that many people assume. according to 8 government if only we would let people die more gracefully - choose not to be the subject of extraordinary study published today. In fact, the proportion of Medicare spending measures - then most of these expenditures could be devoted to end-of-life care was emarkably stable eliminated. There is the belief that somehow this can between 1976 and 1988, despite advancing be dealt with through living wills." technology and widespread dispersal of sophisticated The new study, which appears in this week's New intensive care down to the smallest US hospitals. England Journal of Medicine, found that the average The cost of care in the last year of life has often amount spent for care in the last year of Medicare been wildly exaggerated, say health services beneficiaries' lives nearly quadrupled between 1976 researchers. Estimates are commonly heard that as and 1988, from $3,488 to $13,316. However, so did much as 60 percent of all Medicare spending occurs Medicare expenditures generally. in the last six months of life. "The same forces that have acted to increase In fact, medical care in elders' final year overall Medicare expenditures have affected care for consumed 31 percent of all Medicare expenditures in both decedents and survivors," Lubitz and Riley 1988. the latest available figure, versus 27 percent 12 wrote. years earlier. Since only about 5 percent of the The researchers found that the pattern did not program's elderly beneficiaries die in a given year, change when they compared expenditures in the last end-of-life care is disproportionately expensive. But 60 days of life. presumably the most concentrated its share of total spending is both smaller and more period of medical care spending. In both 1976 and stable than commonly believed. 1988, the final 60 days of life accounted for about half "There is no evidence that increased costs for of all final-year spending. The last 30 days also held persons in the final year of life are a special problem, steady, at about 40 percent of all final-year spending. different in magnitude from the overall growth of "This suggests that 'heroic' efforts to preserve Medicare expenditures,' concluded James D. Lubitz life in the last few months, to whatever extent they and Gerald F. Riley of the Health Care Financing occur, have not had a disproportionate effect on the Administration, which runs the $145 billion Medicare increase in Medicare costs," the researchers said. "If such efforts had become more frequent, one might program. Extravagant heroic care for dying patients is have expected an increase in health care expenses often cited as a major reason why Medicare during the final month or two as compared with the spending outpaces health care inflation generally. rest of the last year. This was not the case." There is a related popular conception that elders Another clue that heroic care is not a burgeoning face a likelihood of being subjected to unwanted and trend is that there was no increase in the proportion Futile care during their final illnesses. of high-cost Medicare patients who died, compared "There has been a kind of myth about medical with those who survived. costs in the last year of life, that it's a terrible Another study finding that runs counter to many problem which has gotten out of control." observed people's intuition was that Medicare spending Daniel Callahan, director of the Hastings Center declines, rather than increases, with the advancing Tratitute of Society. Ethics and the Life Sciences in age of patients at death. Medicare enrollees who Briareliff Manor, N.Y. were 65 to 74 years old at the time of death have the Although Callahan argued in a controversial 1990 highest average end-of-life expenditures, about book that limits should be set on elders' care, he said $15,600. After age 75, the cost of end-of-life care it, is dangevous to exaggerate the problem. "It feeds declines, reaching $8,888 for patients who were over agaism. he said in a telephone interview. "It feeds 90 when they died. the notion that it's all useless and if we could cut Some observers said this may reflect a tacit down on it we would save enormous amounts of decision among patients, families and care givers not APR-15-93 THU 0:46 BOSTON GLOBE FAX NO. 6179293186 P. 07/10 1 keeping Medicare spending stable during the final to be as aggressive in trying to prolong the lives of year of life. frail elders. Callahan pointed out, in addition, that the growing acceptance of this attitude, along with living wills and other advance directives that specify "no heroics." may have been partly responsible for 134 APR-15-93 THU 0:46 BOSTON GLOBE FAX NO. 6179293186 P. 08/10 From Boston Globe Page 2 uminent' solution to the crisis Haiti may not be SO imminent By Pamela Constable Adding to the confusion was a speech Tuesday GLOBB STARF night by Haiti's de facto prime minister, Marc Bazin, who pledged to step down once a new government is WASHINGTON - As political negotiations formed, but warned that if Caputo "cornes to threat- resumed in Haiti yesterday, a Jun of conflicting en us with the thunder of foreign occupation and to statements from the exiled president and Haiti's de impose a solution, he had better not count on our co- News facto rulers threw cold water on the operation." Clinton administration's predictions The mixed signals from key players in Haiti's Analysis of an imminent solution to that coun- drama contrasted sharply with recent assertions of try's crisis. political progress from the Clinton administration, At the same time, there was growing criticism which has been working closely with the United Na- from human rights groups and other that a pro- tions to restore democracy to the impoverished Ca- posed amnesty for Hairian military leaders and plans ribbean nation. for a US military training program in Haiti could Some diplomats said the administration. anxious backfa politically instead of shoring up the coun- to score a foreign policy victory and prevent a resur- try's fragile democracy. gence of Haitian "boat people" fleeing toward Flor- Much of the confusion surrounded the question of ida, may have underestimated the hatreds paralyz- exactly how much President Jean-Bertrand Aristide ing Haitian society 18 willing 10 offer the army officials who ousted him "When you read some reports. they sound like it 19 months ago, in return for their stepping down and is a done deal, but in Haiti words can be interpreted allowing him to return to power. 3 thousand ways," said one diplomat from Port-au- In a Creole-language radio address or. the Voice Prince. of America Sunday. Aristide demanded of the army. Some observers expressed concern that US offi- "Stop the killing now, SO that when the time comes I cials were pushing Aristide too hard for a full mili- can grant you political amnesty. Why jeopardize this tary amnesty, warning that it could undermine ef- final opportunity? Gentlemen, stop." forts to build a democratic society. The security American officials and press reports have de- forces have repressed Aristide supporters since the scribed Aristide 33 having made a significant conces- 1991 coup, and several thousand people have been sion to the army. But aides to Aristide insist the con- killed. stitution does not allow him to forgive military offi- "Any blanket amnesty would be especially trou- clais for murder and other crimes - and that his posi- bling in Haiti, where you are trying tc build respect tion on this has never changed. for the rule of law and do away with a culture of im- "I think Aristide is playing his usual game of say- punity after 200 years," said William O'Neill of the ing one thing to us privately and something different Lawyers Committee for International Human to his Haltian supporters." one State Department cf- Rights. ficial said yesterday. "There may be method in his There were also mixed reviews for US plans be- madness, but the result may be to make the military ing developed to send military teams to help retrain skeptical. Well know that answer very soon." the army and assist in public works once Aristide re- Yesterday, Dante Caputo, a special UN envoy, turns. While diplomats agree the security forces reopened talks with officials in Haiti, including Gen. need to be professionalized, suspicion of the US mili- Raoul Codras, the army chief, after spending several cary runs high in both the pro- and anti-Acistide days in Washington in meetings with Aristide and camps. US officials. Cedras has demanded full amnesty for the coup leaders in retur for stepping down. 135 THU 0:47 BOSTON GLOBE FAX NU. 6179293186 P.09/10 From Boston Globe Page 2 Bosnia would forgo a'd if it got arms By Mary Curtius Bartholomew, warned Serbia that the United States GLOBE STAFF would press to lift the arms embargo if Serbia does not sign a UN-brokered peace agreement already WASHINGTON - The Bosnian government signed by Posnia's two other warring ethnic would rather see the arms embargo on Bosnia lifted communities, the Muslims and the Croats. than the UN relief effort for Bosnian Muslim "If they persist in their actions, the international communities continue, a senior Bosnian official said community will make of Serbia a pariah state for as yesterday. far ahead as we an see," Bartholomew told reporters "I am writing a letter to the Security Council now as he left Zagreb, in Croatia, for talks in Belgrade SO that there will be no doubt." said Muhamed with Serb leaders. Sacirbey, Bosnia's ambassador to the United But a senior UN official said yesterday the Nations. chances of the arms embargo being lifted are "very Asked whether his government was F epared to slim." have thousands of UN troops end their deliveries of Both the British government and Lord Owen, the food and medicine to Muslim communities, Sacirbey European Community's peace mediator for Bosnia, told a gathering at the Carnegie Endowment for yesterday denounced Margaret Thatcher's Peace: "We are prepared to pay that price. In some impassioned plea for the international community to ways. it is a very heavy price and in some ways it is lift the atms embargo. not." The former prime minister, first in an interview UN convoys and airplanes have delivered with the British Broadcasting Corp. on Tuesday. and thousands of tons of desperately needed food, then on American television yesterday, blasted medicine and supplies over the winter to besieged Western governments for allowing the Serb Muslim communities. The supplies have kept people onslaught on Bosnian Muslim communities to alive, but have not stopped the advance of Serb continue. militias through much of Bosnia. "The policy 30 far has been to bring food and Both Britain and France have consistently humanitarian aid and medicines to the beleaguered opposed lifting the aims embargo imposed last year people, but to leave them to the slaughter of the by the Security Council on the states of the former Serbs," Thatcher said yesterday. "It is totally and Yugeslavia. The two nations argue that lifting the utterly wrong to stop people from defending embargo on Bosnia would endanger several themselves against a highly-armed aggressor." thousand troops they have fielded to deliver Thatcher said the embargo should be lifted and humanitarian aid to Muslims. the West should "supply the Bosnian Muslims with Sactrbey's comment seemed designed to arms and train them." undereut that opposition. Owen dismissed Thatcher's remarks, saying that The embargo can only be repealed by a majority "sometimes Lady Thatcher makes it appear very vote in the 15-member Security Council, where simple. You have to be very careful not to be driven Britain, France, Russia, China and the United States by emotions." have the power to veto any council resolution. And in Parliament, Defense Secretary Malcolm Noting that contributions to the Bornian relief Rifkind said the conflict would worsen if the Muslims errort have practically dried up, Sacirbey said his were armed. government fears "the world is already tired of "The result would be to prolong the conflict and feeding Bosnians We need to get to a point make it even bloodier and more vicious than it is where we can defend ourselves. where we can today. The right course is to pursue the current deliver the food to ourselves." policy, thankless and frust ating though it is," His comments came just hours after the Rifkind said. administration's special envoy, Reginald 130 FROM NEWSDAY NAT'L DESK 04.14.1993 NO.13 P. 2 Ill Wind' Sentencing Ex-Grumman chief fined $10,000 in defense scandal By Robert E. Kessler scandal, which has brought conviction STAFF WRITER of 60 individuals and corporations, have John O'Brien. the former Grumman received stiffer sentences. Former Un. Corp. chairman who was one of the isys Corp. Vice President Charles Gard- powerhouses of the nation's defense In- ner was sentenced to 32 months in pris- dustry, was fined $10,000 yesterday hut on and former Assistant Navy Secretary not given any jail time for his guilty Melvyn Paisley was sentenced to 4 plea in connection with the military years. But they pleaded guilty to more contracting scandal known as Oper- scrious charges than did O'Brien. ation Ill Wind. Mishler declined to comment on the O'Brien, 63. had pleaded guilty in sentence, but it appeared to be within November to two felony counts of fraud federal guidelines After the sentenc- for failing to disclose on mortgage ap- ing, the judge took the unusual step of plications that he received $305,000 returning to the courtroom when sever- from a Grumman subcontractor, James al reporters asked if he would comment Kane. Altogether, federal prosecutors on his reasoning. "I don't comment or: sentences,' Mishler said "I refuse to said in documents released yesterday, O'Brien received more than $600,000 do it. I said at the time of sentencing in secret loans from Kane between that the charge was Mr. O'Brien made false statements That's all 1 care to 1981 and 1988. comment on.' "I stand before you today, your hon. O'Brien. thinner and less jocular or. a very sad, humble and remorseful man," O'Brien told U.S. District Court than at past court appearances, had no comment outside the courtroom. Judge Jacob Mishler in Uniondale. "A Government documents released man who was in my position should be after the sentencing portrayed the ex- above reproach at all times, and in that, ecutive suite at Grumman as nerve- I have failed. The impact to myself and wracking under O'Brien's leadership. my family was drastically punitive with some top managers saying they and that can never be undone. felt their jobs were in jeopardy if they O'Brien was forced to resign from didn't raise money for Kanc's lobbying Grumman in July, 1990, when his role efforts on behalf of Long Island defense in the scandal became known He had companies. Kane owned a corrugated faced up to 4 years in prison after box company in Buldwin, but more im- pleading guilty to the relatively minor portantly was an infuential lobbyist. bank fraud charges. O'Brien had been The documents quoted one Grum- considered liable to prosecution on man executive as saying O'Brien once more serious charges of extortion and became "a little violent" when the ex. receiving kickbacks. but Kane's death ecutive did not move quickly enough 10 from cancer in February. 1990, led award a raise and borus to the employ- high-ranking Justice Department offi- 00 who handled Kane's accounts with cials to conclude that such a prosecu- Grumman. Other executives told gov. Newsday Stabile tion would have been difficult. John O Brien and his wife. Joan, leave court in Uniondale yesterday Several key figures in the III Wind Please see GRUMMAN on Page 48 D'Amato: I Won't Be 'Bullied' By Martin Kasindorf Democratic claims that he's costing $8 billion to $10 billion off che current and Robin Topping New Yorkers thousands of jobs. $16.3 biliton price tog. STAFF WILLERS Targeted in White House news re- Democrats have 8 winning majority Sen Alfonse D'Amato, resisting in- leases deluging New York media and in on the stimulus plan but lack the 60 statements by presidential aides. D'A. votes needed to break the filibuster tense White House pressure to abandon mato said at a Mineola news conference mounted by all 43 Senate Republicans. fellow Republicans filibustering D'Amato said the plan contains "politi- against President Bill Clinton's eco- that his position remains essentially cal patronage programs" and projects nomic-stimulus bill, said yesterday he unchanged: He'll support the emergen- of "doubtful value, which will not con- will not be "persuaded or bullied" by cy spending bill only if Clinton knocks tribute to economic growth. More- over, the public campaign to move him is 'not the kind of thing that is going to open up a dialogue,' he said. "I am not going to be persuaded or bullied 1 have not been convinced by the administration." he said. Maintaining that "I don't want to be an obstructionist," Amato said he could support a smaller package extend- ing unemployment benefits. providing summer jobs for youth and expanding child immunization. He would also vote for the bill's highway construction and Mewaday Jim Peppler transit funding. but only "if offset by D'Amato in Mineola additional spending cuts elsewhere," he said in a news release. news outlets a release asserting that White House spokesman George Ste- New York stood to gain 7,154 full-time phanopoulos, who pointedly noted jobs and 51,786 summer jobs this year. Tuesday that the bill includes "50,000 "But without swift passage of the en- NEWSDAY, APRIL 15. 1993 jobs" for New York, acknowledged yes- tire jobs package," it quotes Clintor. as terday that the White House is direct- saying, 'the people of New York will Ing news releases at states represented continue to suffer from a jobless recov. by pragmatic Republican senators such cry 1 urge Sen. D'Amato to help break as D'Amato. "All we're doing is point- the gridlock in the Senate, support this ing out the benefits of this package to Initiative and put thousands of his fel- various states," he said. low New Yorkers back to work.' With another Senate vote to break the Similar news releases went to Ver- Reuter Phone filibuster scheduled for Tuesday, the At Virginia jobs conference yesterday, Clinton jabs GOP on his bill White House this week sent New York Please see D'AMATO on Page 17 137 City Request to Adjust Census Denied By Jack Sirica lost federal aid will amount to millions of dollars. cious. "Thut far I cannot yo." McLaughlin said. WASHINGTON III REAU In his opinion, McLaughiin said New York and other New York City Corporation Counsel O. Peter Sher- A federal judge has thrown out a request by New cities had "made 0 powerful case that discretion would wood said, "The fundamental point is that the court York and other cities to correct an undercount of mi- have been more wisely employed in favor of adjust- has recognized that on the merits we are right. norties in the 1990 census. and New York City Mayor ment "Indeed," McLaughlin continued, "were this "We think that the best thing we would urge 18 for David N. Dinkins yesterday vowed to press the Clin- court called upon to decide this issue 1 would probably the secretary w net now to correct the wrong.' Sher- ton administration to make the correction adminis- have ordered the adjustment." wood anid. tratively. Nonetheless, McLaughlin said the legal question Attorneys for the plaintiffs said that they had not U.S. District Court Judge Joseph McLaughlin of was whether Musbacher's "decision not to udjust is 50 decided whether to appeal. New York's Eastern District ruled Tuesday that the beyond the pale of reason as to be arbitrary and capri- 1406 Lift contributed to this story. phintiffs were not entitled to a census adjustment. saying that then-Commerce Secretary Robert Mos- bacher did not breach standards barring "arbitrary and capricious" decisions D'Amato: Won't Be 'Bullied' on Jobs Bill Dinkins said yesterday that he would call Com- moree Secretary Ron Brown. an old friend, to urge D'AMATO from Page 6 it him to order the adjustment. Aiming a jab at congressional Republicans. Clinton However. Dinking noted. "I don't know that they said: "I don't have all the answers. but I know this - Mont, Maine, Oregon. Pennsylvania and 3 number of no the enpacity to do so." doing nothing is not the answer other states. Moderate Republican Sen. JamesJeffords :- a statement, Brown was noncommittal "I re. The White House also released letters from Republi- speet the court's decision," he said. "The long and (R-Vt.) yesterday was caught in a vise between Senate can mayors and governors saying they need and want arduous process of litigation demonstrates how im- Minority Leader Bob Dole (R-Kan), who is leading the the funds in Clinton's proposal. Fort Wayne. Ind., portant It is to develop a methodology for the next Republican battle and attended a Jeffords fund raiser Mayor Paul Helmke. president of the National Repub- census that brings America together while providing in Vermont, and the Democratic blitz. Jeffords was lican Mayors Organization. and South Carolina Gov. the must accurate count. lobbied Tuesday night by Vice President Al Gore. Carroll Campbell were among the signers The government acknowledges that the 1990 census As the White House's public campaign escalated, Republicans struck back with an announcement undercounted blacks. Hispanics and other minorities presidential sides and leading Senate Democrate were that they will stage 19 town meetings nationwide Sat- by 3to 5 percent but missed only 1.7 percent of whites. privately negotiating with key Republicans on & possi- urday to argue against the Clinton stimulus spending Nevertheless, the Department of Commerce, which ble compromise and his overall budget package. oversees the Census Bureau, announced in 1991 that it Clinton continued to publicly press for the bill yes- Dule said the plun WITS unnecessary because $93 would not adjust the census, saying the proposed ad- terday, telling an Arlington, Va., summer jobs confer- billion in unspent federal funds from this year is avail- justment procedures were statistically questionable. ence sponsored by the Education and Labor Depart- able for programs Clinton wants to increase "So Three dozen cities filed suit, arguing that the under- ments: "It is an attempt to engage in an experiment where's the emergency" Dule said. "Looks like an- count deprived them of federal funding and congres- to 800 whether or not, with the economy recovering in other false alarm from the White House" signal representation. New York has estimated that its terms of corporate profit, we can give a little goose to Jill Dutt contributed to this story. Ill Juror Halts King-Beating Deliberations By John Riley Davies said marshals had taken the un- judge could order the deliberations to Koon and officers Laurence Powell, STAFF CORRESPONDENT identified juror to see a family doctor continue with an 11-person jury or Timothy Wind and Theodore Briseno because of an unspecified illness, and could declare a mistrial. In addition, if Los Angeles - Jury deliberations in - are charged with violating King's the rest of the panel ceased deliberating the prosecution, defense and judge civil rights by willfully using excessive the Rodney King beating case were de- after . half day. The jury received the agreed, one of three alternate jurors force in the March 3. 1991, arrest Koon layed yesterday because of a juror's ill- case Saturday and has deliberated might be chosen as a substitute If an is charged with supervising the illegal ness. A CBS television affiliate here ro- about 25 hours. alternate is chosen, experts said, the use of force, and Powell, Wind and Bri. ported that the juror was suffering from The CBS station said the juror was judge will probably instruct the jury to seno are charged with administering il- stress-related hives. likely to return today. It was unclear begin its deliberations anew and recon- legal baton blows and kicks NEWSDAY, THURSDAY, APRIL 15. 1993 In brief early afternoon announce- what would happen if the juror was un- sider any verdicts it may have reached. A state court jury verdict freeing the ment, U.S. District Court Judge John able to continue. Legal experts said the Four white policemen - Sgt. Stacey officers led to rioting last year. Crack Down on Serbs, Critics Urge Clinton By Saul Friedman So far two of the three parties in the Bosnian con. of the aring embargo. Dole also demanded the admin- WASHINGTON BUREAU fliet. the Muslims and Croats. have signed the plan. istration release a report by an interagoncy - defense Washington - The Clinton administration yester- but the Serbs have refused despite the threat of stron- and state departments among thom - team sent to day was besieged by calls from members of Congress, ger sanctions. Owen said in the interview, "We can the region that recommended, among other things. former British Prime Minister Margaret Thatcher and increase sunctions and perhaps then tilt the balance safe havens for belenguered pro-government Bos- one of the diplomats who is sponsoring a plan. to end of force by the use of air power to pressure the nians, to be protected by military forces. the Balkans conflict for stronger measures against Busnian Serha to sign up. Tipping the balance to force On the House side, Rep. Susan Molinari (R-Staten Serbin if it Joes not end its aggression in Bosnia. a recalcitrant party to accept & just and equitable Island), reporting on a week-long trip to the Balkans Theteher, during a round of U.S. network televi- peace package is. in my view, wholly legitimate diplo- with three New York colleagues, expressed disap- sion appearances yesterday. appealed for the lifting of macy. pointment at the changes in Clinton's views. which the international arms embargo, which has denied President Bill Clinton, who as a candidate called for she supported during the campaign. Lifting the em- weapons to the Bosnian Muslims, and she repeated a military measures, has shied away from taking such bargo "Is the least we can do. and there is a ground- call for possible air strikes against Serbian targets. action. But the administration sought to turn up the swell of support for that in Congress." She helittled the policy of delivering humanitarian heat: Special U.S. envoy Reginald Bartholomew met Her freshman collengue, Rep. Peter King (R-Sea- aid to the belenguered Bosnians and attempting to in Beigrade yesterday with Serbian President Slobo- ford), who also went to the Bulkans, called for the use negotiate perice, telling one interviewer on NBC-TV's dan Milosevic, widely viewed as the main instigator of of air power against the Serbs, taying, "what the "Tistay" that "negotiation suits an aggressor he Bosnia's war, and with Bosnian Serb leader Radovan United States and the West are doing doesn't add up just plays you along while he takes more land and Karadzic. Bartholomew had what he called a "very to much. We are only prolonging the agony." does more slaughter.' candid and direct exchange" with Milosevic and State Department spokesman Richard Boucher de- Her countryman, Lord David Owen, a former for. warned Karadzic of UN action if he doesn't sign the clined to take on the critics, although he said he disa- eign secretary who mediated 8 peace plan for Bosnia Vance-Owen plan. greed with Thatcher and he maintained American along with former U.S. Secretary of State Cyrus fthey (the Serbi persist in their actions, the inter- policies have saved lives. Vance, ridiculed Thatcher's appeal as simplistic and national community will make of Serbia a parish state Bosnia's UN Ambassador Muhammed Sacirbey "driven by emotion." for as far ahead as we can see, Bartholomew told said at & meeting with reporters here that Bosnians But in an interview published yesterday by the reporters as be left for Belgrade from Zagreb, Croatia, were "prepared to pay the price" of an end to the aid scholarly murnal Foreign Affairs, Owen suggested after meetings with Muslim and Croat leaders. in exchange for weapons, because if they are not able that the United Nations could pressure the Bosnian Meanwhile, Senate Minority Londer Bob Dole (R. to fight "we'll disappear as a nation and as a people." NEWSDAY. APRIL 1993 Serbs into signing the Vance-Owen plan with the Kan.) said he was troubled by the apparent reversal of This story was supplemented with a news ser- threat of air attacks. Clinton's campaign position and asked for the lifting vice report. 138 WED 22:10 " ARK DEMOCRAT GAZETTE APR-14-93 EDITORIALS Too close to the truth A report on Bosnia is suppressed "Our only hope will lie in the frail ample of the folly of gun control on an uneb of understanding of one person,for international level. The arms cm- the pain of another. John Date Passos, bargo secms to work only against 1940. Bosnia, the principal victim in the t turns out that the Clinton Ad- Yugosiav cockpit. The Sorbs have giv. I ministration hns produced A ro- on up tangling with the Croats. who port and various recommenda. have an Arty and are capable of fight- ions about how to stop the cornage in ing back. There is no deterrence like Boania The report reflects expert a victim capable of self-defense. judgment. on-the-scone appraisate, But the exports went too for in the and sound moral and political val. right direction for the Administra- ues. Naturally it was suppressed. tion to let their report ace light. Their The 26-member team. that pro- findings and recommendations. a duced the report, was appointed in couple of which already have proved February, when the administration prophotic, were withhold from the was still willing to take an objective closed-door briefings given Congress. look at what was happening in Boania Such socrecy is nothing new. It's al- and listen to export opinion. This re- most standard operating pt occure port reached the inovitable conclu- in Washington: When a policy doesn't sion that there Is only one way to stop reflect the facts, change the facts. Or the killing: Use military force to os at least suppress them. The clinton- tablish sale havens for Bosnia's peo- olds were adept at this technique pic. That means protocting the con- long before they got to Washington. voys bearing aid. It means silencing A congressman named McCloskey the ring or artillery fire that daily from Indiana - a Democrat - un- menacas cities like Sarajovo and Sre- derstands perfectly well why this re- brenica. port on Boania was withheld from But such advice is politically ob congressional briefings. "The Ad- solote. Some time before the panol ministration." he says. "has totally had completed Its work. the Clinton backed away from the idea of doing Administration had slipped Into its anything significant to stop the non-policy. a mix of ineffectual gos. slaughtor." That about sums it up. tures and windy cilintonspeak. Ro. The Administration does under- sult: Washington's stand how politi- approach to the cally risky inter- war in the Balka. vention could now boars a res. prove. So It has dis- sonable resem. patched a new blance to what in Cyrus Vance, one the 1930s was Reginald Bartholo- onlied appease- mew from the State ment. Department. to make the bost deal Certainly the re- suits have been he can with the ng. strikingly similar: gressors. Perhaps The the new appeasers, accression continues. The like the old, think that the forces of pincers tighten around the vic- aggression in the world will be RRE- time. Paper em- isfied with chow- hargoes and occa. sional shows of ing up one small country, and then force Mro scon for all will be wall. what they pro: shows. And those They are making committing these atrocities a mistnke. Even now, what is hap. have learned only contempt for the pening in Boanin is part of n much United States or America and its sup- larger pattern - throughout the posed londer. Southern reaches of what used to be Sorbia's Blobadan Milosovic has the Soviet Union. and everywhere in the Islamic world. Once again responded to Bill Clinton's vague talk zcalotry overtakes reason. These are about doing something someday to not isolated waves of violence in halt the war by saying the president's statements "encouraged" him and Bosnia, Georgia, Armenia and Azer overy other Scrb. One was reminded baljan, and Egypt. In the absence of of how the Ayatollah Khomcini used any countervalling force, a new and dark disorder is supplanting the to respond to Jimmy Carter's pathet- hopes of freedom that were so bright le pleas that the American hostages be allowed. pretty please. to leave only a few years ago. Tehran. Or the snoor in Adolf "The world is reconstituting Itself Ifitier's voice in the old newsrools along new bases we had not thought when no would respond to still an- of. We are waiting for history to give other overture from some befuddled birth to something now. We don't leader of the democracies asking him know what The pain will be piercing please not to invade Atill another and excruciating and wish 1 did not country. have to witness it." The words are The diplomate doctors, adminis- those of All Konz, a sociologist from trators and military types who made Algerin AS he watched his native land up this advisory group on Bownin did being swept up in a revival of the old not take refuge Indilusions and CVS. Intolorance that has blinded and sions. They understood that Interna. manacted the East for conturios. Monal order cannot be established Unloss the West recovers Its sonse simply by talking about IL or com- of unity and determination, events mitting a few more UN troops piece- in Bosnia will prove only the fore- meal. or limiting the "peacokeepers" taste of a bitter cup. Only force to delivering food and medicine - well orchestrated, overwhelming. when the Scrbs are kind enough to let grounded In moral principle can n convoy through deliver the message the West and a In some respocts. the experts did free world must sond. That was os. not go far enough. For example, they sentially the conclusion of this re- did not recommond that the arms om- port, and essentially why it was sup- bargo against Bosnia be lifted. Few pressed. It was uncomfortably close recent examples offer A better PX- to the politically inconvonient truth. 139 First lady to give U-M commencement address BY MARYANNE GEORGE is considering including graduates of the Page Prem Am Arban Burene The University of Michigan's Board of university's other schools and colleges, which Regents is expected to approve bonorary Hillary Rodham Clinton will speak at the normally hold their commencement ceremo- degrees for Clinton and other dignitaries at University of Michigan's commencement nies separately. its meeting Friday, Baker said. May 1 in Michigan Stadium, U-M announced Wednesday. Details of the visit still are being worked out, but officials say an 11 a.m. ceremony is Former President George Bush spoke at Lisa Baker, U-M's director of public af- likely at the stadium, which holds about the U-M commencement at the stadium in 102,000 people. May 1991. fairs, said Clinton accepted U-M's invitation Wednesday. The first lady will address gradu- Baker said no decision had been made on Clifton Wharton Jr., deputy secretary of ates from the College of Literature, Science whether to open the graduation to the public, State and former president of Michigan State and the Arts, and the Rachham School of but she said priority would be given to University, will deliver MSU's spring convo- Gradnate Studies. In addition, the university students and their families. ation address May 7 at the Breslin Center. 12:06 AM *DETROIT FREE PRESS P O 2 93 HAITI Important concessions could open way for democracy t's not a done on the well-to-do and I deal, but Haiti's their protectors as pay- military leader- ment for all real and ship finally may perceived evils ever be bowing under the committed against the weight of outside pres- poor. sure to restore the Rev. Such a course would Jean-Bertrand Aristide be counterproductive. - the country's freely Yet Mr. Aristide's re- elected but ousted pres- cent willingness to re- ident - to power. verse his previous posi- This development, tion and offer amnesty welcome as it is for the to his most bitter oppo- prospect of a return to nents among the army democracy, doesn't leadership is a good sign possess enough power that he may now favor to transform Haiti's conciliation and negoti- desperation into over- ation for the sake of night prosperity. A long Haiti's future. His and painful road to revi- change of mind re- talization lies ahead for moves the final obstacle Haiti, as Mr. Aristide is that has been hamper- certainly aware. ELEANOR MILL/MI News Art Syndicte ing United Nations Yet the return of Jean-Bertrand Aristide progress toward re- Mr. Aristide is the only way to restore hope turning Mr. Aristide to his country. to the country's impoverished masses and It appeared for a while that the Clinton to pave the way with cooperation and administration had aboved Haiti onto the support from the world community - for a back burner. It is evident now, though, that stable, healthy nation. considerable behind-the-scenes pressure Opponents of Mr. Aristide's return pre- was exerted through the UN to achieve a dict that he would become a self-appointed rapid solution - the type of pressure that enemy of both Haiti's military and its elite, was never applied by George Bush. fueling class warfare. They portray a mod- For this, President Bill Clinton deserves em Robin Hood, wreaking vengeful havoc to be commended. 140 APR 15 '93 01:32AM P.6 GUP mayors could give Clinton job plan a boost By Mitchell Locin governors including Republicans Chicago Tribune Jim Edgar of Illinois and Carroll WASHINGTON-If President Campbell Jr. of South Carolina, Clinton can't convince Republi- who was former President George cans to support his jobs plan, Bush's favorite governor, favoring maybe some of their fellow Re- a stimulus program "that can put publicans can do the trick, the people to work immediately on White House hoped Wendesday projects that create long-term as it released a letter by GOP prosperity." mayors to Senate Minority Leader Mike Lawrence, Edgar's press Bob Dole (R-Kan.). secretary, said the letter was in- Evanston Mayor Joan Barr tended to ask for funds that could joined the president of the U.S. be used immediately if there is a Conference of Mavors, William stimulus program, and said it was Althaus of York, Pa., and the up to Congress and the president president of the Republican to determine whether the bill mayors organization, Paul should be passed. Helmke of Ft. Wayne. Ind., in telling Dole that they need the Clinton also attended a meeting Wednesday of city leaders to $16.3 billion stimulus package to pitch for the 700,000 summer create jobs in their cities. jobs for youth he said the plan Dole has attacked the plan's would create. community development funds Clinton said the the bill would for the swimming pools and park- give "a little goose" to the na- ing lots it would build, but the tion's economic recovery. mayors said the bill will benefit "the unemployed Americans in House Republicans said our cities." Wednesday they planned to hold The administration also reached meetings across the country Sat- back to a Feb. 8 letter signed by urday to attack the stimulus plan and offer an alternative. APR 15 '93 00000000000000000000000000000000 P.4 Hanoi has some explaining to do Just when it seemed Vietnam was being aboveboard have come along, this one has an unusually and omi- about Americans unaccounted for since the Indochina nously genuine look It argues powerfully for an w- was, along comes this week's disclosure of a document gent, all-out effort to distill the facts from the present purporting to show Hanoi held not 368 U.S. prisoners welter of assertions, questions and conjecture. of war. as it claimed in late 1972, but 1,205. Retired Gen. John W. Vessey Jr., the veteran U.S. Harvard researcher Stephen J. Morris found the po- envoy who is returning to Hanoi this weekend, had tential bombshell in Soviet Communist Party archives better press for some pretty convincing, complete in Moscow, It appears to have been a Vietnamese answers from the Vietnamese. Wisely, the Chinton ad- general's detailed report on the actual number of U.S. ministration, by making that quest Vessey's top priori- POWs Hanoi was holding. The Russians provided ty, has signaled its determination to learn the facts. Washington with the text, now under study. For their part, Vietnamese officials have labeled the If the document is authentic and accurate, relations Moscow document a "pure fabrication," and have sug- between the United States and Vietnam, which seemed gested it was created to serve the interests of Ameri- about is thaw as the Clinton administration edged cans opposed to a normalization of relations. toward lifting a longstanding embargo on trade, could Loved ones of missing Americans and some veterans be rendered more firmly icebound than ever. generally prefer continuing the U.S. embargo. on For it then would be obvious that Vietnam grounds that its elimination would remove a lever to heartlessly denied hundreds of Americans a ensure Hanoi's help in learning the fates of the more homecoming and Lied about repatriating every POW than 2,000 Americans raissing from the war. in its custody early in 1973, when 591 were set free. At the same time, business interests are pushing the It would be obvious the Vietnamese lack any credi- Clinton administration to let American firms invest in bility and merit none of the international respectability Vietnam, as their counterparts from other nations are and economic benefits expected from a softening of doing. Hanoi is eager to have Washington take this the U.S. hard line. step, both to attract U.S. investors and because Wash- Those things could become clear down the line. For ington influences its access to international loans. now. Americans should resist jumping to conclusions. Events were moving in Vietnam's favor, with the It is too soon to rush to judgment. U.S. increasingly disposed to the view that Hanoi was Skepticism remains in order, especially in light of doing what it could on MIAs, thereby meeting the previous reports of supposed sightings of Americans in paramount prerequisite of warmer U.S. Vietnam bes. Southeast Asia, none of which were verified, and of Now, welcome progress in that direction has been photos said to show aging ex-GIs but which proved to thrown into a cocked hat by disclosure of the 72 be doctored images of non-Americans. POW document. Getting to the bottom of that dis- Still, of the obstacles to Washington-Hanoi ties to turbing report has to come before everything else. U.S. st wary of cha ge Less than 100 days into his presidency, Bill exposed himself to a predictable political Clinton isdogged by an approval rating of only 49 backlash. pèrcent, the only time in 40 years of polling that a In addition, it should be remembered that Mr. president's approval rating has been so low SO Clinton came into office with a relatively narrow early his term. base of support. He was elected with only 43.2 humbers are leading Republican oppo- percent of the popular vote, just below the 43.4 nents, and not a few political analysts, to pro- percent won by Richard Nixon in 1968, a year of nounce! the Clinton presidency mortally equal uncertainty in American history. wounded Already, a fow "Impeach Clin- And four years later, Mr. Nixon was ton" humper stickers are popping up re-elected in a landslide. around town (although most were Mr. Clinton can at times excite probably bought to cover up strong emotions. He inspires in 'Bush/Quayle '92" embarrass- some a frightening and puzzling ments) degree of animosity. Others see That's part of the problem. It him as their Moses, leading his used to be that even a president's people into the Promised Land opponents would give him", a after 12 long years in the Republi- decent time in which to prove can wilderness, himself Now, In this bitterly But for millions of Americans in polarized political climate, they the middle, Mr. Clinton remains a are unwilling to give their new subject of great ambivalence. If president chance, unwilling even they voted for him, they did SO not to wish him success. That IS per- out of any great enthusiasm but haps something new in American because he at least promised a differ- political life: ent style and approach than the strangely Cortainly, the low poll ratings passive President Bush He has delivered cannot be explained by Mr. that change. Indeed, the demise of his presi- Clinton's performance. While It dency will be dated not from a bad poll, but has been something short of from the moment he finds the spectacular, St has by no means status quo acceptable. been disnial. He has signed the So far, there doesn't seem family leave bill, reversed the much danger of that Mr. Clinton abortion "gag rule" and mishandled the gays- has gotten this far in politics through sheer tenac- in-the-military issue, but he has yet to face his ity and perseverance, traits displayed both in his first real test. In the absence of some interna- tenure as governor of Arkansas and in the presi- A12-Thursday, ticnal or domestic crisis, that test will come when dential campaign. He possesses a remarkable Congress is asked to approve his tax-increase ability to shrug off defeats that would discourage package and health-care reform proposal. most people. Given the poll numbers, it's a April Mr. Clinton's low approval rating may actually strength likely to be tested again in the next cou- 15, reveal more about the American people than ple of years. The character of the American people will be 0661 about their president. It tells us that we embrace change theoretically, but balk when confronted tested as well. Mr. Clinton presents a challenge: with change in its specifics. Mr. Clinton, by boldly Do we really want change, or was it only the Idea proposing a series of specific changes, has of change that we found attractive? A symptom of Russia's nuke danger Neither Moscow nor Washington has to sell on the international civilian-fuel market - expressed much concern over last week's nuclear even though U.S. experts figure the Russians accident outside the Russian city of Tumsk. True, would be lucky to break even, weighing costs the Tomsk blowup is not in Chernobyl's class: against potential receipts. Just the same, both governments need to take the What does the Tomsk-7 accident bode for the matter very seriously. future? Nothing good. It is a reminder that the As seems usual in nuclear mishaps like this, Russians keep using dangerously antiquated faci)- authorities underestimated the extent of the con- itles, some near population centers, to produce tamination. This week, they had to admit it was power and, presumably, plutonium. The Tomsk CONSTITUTION three times greater than they thought originally. incident should rivet the West's attention on the Even so, the Russians got off lightly. Tomsk is a precious little Russia has spent on improving city of 500,000 only 16 miles from the accident nuclear-reactor safety despite Western aid. Pro- bite, but winds carried the radiation toward a far cessing plants like Tomsk-7 and Russia's numer- more sparsely settled region. ous and nasty nuclear dumps have not been Unlike the foolish attempt to cover up the cleaned up at all. Chernobyl disaster seven years ago, the Russians Now while Russian officials are breathing a have informed the public about the health danger deep sigh of relief that the Tomsk blast damage supposedly slight and even invited the Inter- wasn't worse, Washington needs to talk sense with national Atomic Energy Agency to visit the site. them. Let's raise pointed questions about the use- So far, so good. lessness of Adding to the plutonium glut. Let's Still, troubling questions remain chip away at unnecessary layers of military- What was going on at Tomsk-77 It was one of Imposed secrecy. Let's redouble our efforts to find the last facilities separating plutonium to be used sectors in Russia's much-troubled nuclear pro- in Soviet nuclear weapons. Moscow says the plant gram where U.S. dollars and know-how can do the no longer does that work but isn't exactly forth- most good the quickest. Rndioactivity is not only coming about what it does do. The best guess is Russia's No. 1 environmental problem; it Is one it that plutonium still is being processed there, now cannot contain within its borders. 142 APR-14-1993 FROM NEWSROOM TO E A-2 E Delay on Navy chief could let some fliers off hook in Tailhook By OTTO KREISHER facing non-judicial punishment for Copley News Service less severe offenses. WASHINGTON - President Non-judicial punishment, com- Clinton's delay in naming a new monly called "captain's mast" in the Navy secretary could prevent legal Navy, is somewhat similar to a mis- action against many of the fliers demeanor bearing before a civilian implicated in misconduct at or foi- judge, except.it involves a ship's lowing the 1991 Tailhook conven- captain or more senior commanding tion, according to Navy officiais officer The absence of a secretary Punishment allowable under Ar should not threaten the Navy's abil- ticle 15 is limited and cannot in ity to initiate courts-martial against clude a prison term or punitive dis- the officers accused of sexual as- charge. saults or other serious offenses, of- Naval legal officers also said that ficials said. many of the officers who were in- volved in the heavy drinking and But the failure of Clinton to nom- risque behavior during the conven- nate a civilian leader for the Navy tion or who failed to cooperate in within the next several months the subsequent investigations may could limit the range of action avail- face the lesser punishment rather able against Navy and Marine fliers than court-martial involved in lesser offenses associat- Court-mártial is also considered ed with T allhook, they said. mikely for some of the squadron That would affect a majority of commanders or more senior offi- the officers who are Ekely to be cers who failed to stop the improp- recommended for some punish- er behavior in Las Vegas, or failed ment because of misconduct during to take action against those under the gathering of carrier based fliers their command involved in the mis- or because of their action or failure conduct, the legal authorities said to act after. the convention, naval To avoid the statute of Himita legal experts said. tions running out, the new secre- The concerns arise from the stat- tary must be in office in time to ute of limitations established by the have all the non-judicial punishment Uniform Code of Military Justice actions completed by Sept.7 (UCM), and from Defense Secre- White House collicials said re- tary Les Aspin's refusal to release cently they have idea-then Clin conclusions from investigations of fon might select for the the incident until there is a new Navy post. Navy secretary to oversee proceed- Based onther entagon oth- ings against those named in the cials Clinton has adminated once a report. candidate chosen it can Take the The UCMJ gives military author administration-up to two weeks to ities up to five years after an inci- Enish the paperwork necessarystor dent to file charges that would be send the formationmention to the tried before a court-martial, which Senate for confirmation. is the military equivalent of a crimi- It then for than two nal trial. weeks for the Senate Armed Ser That means the Navy has until vices Committee to complete its September 1996 to formalize char- review and vote DD for warding the ges against the men who allegedly nomination to-the full Senate for assaulted as many as 26 women in confirmation. the hallway of the Las Vegas Hilton With the Senate scheduled to be during the Tailnook convention, in recess for 10 days each around Sept. 5-7, 1991. Memorial Day and the Fourth of But Article 15 of the code allows July and for all of August. time for only two years for the military to action on a new Navy secretary is complete action against- personnel becoming short. 143 Phantom welfare reform No provisions in the budget package illions of voters viewed Bill plementing any fundamental changes. M Clinton as a different kind of In fact, her tepid reaction to various Democrat because of his of- reform proposals forced Clinton to reas- ten-repeated promise to sure the National Governors' Association overhaul America's welfare that he is indeed serious about changing system. the welfare rules. Pledging to "end welfare as we know A few weeks ago, the president reiter- it." Clinton emphasized during the cam- ated his intention to place a two-year paign that "those who are able must go to limit on welfare benefits. After that time, work." He stressed that one of his top able-bodied recipients would be obliged priorities would be to eliminate the de- to work. structive cycle of welfare dependency. Clinton also promised to name a panel So why aren't any federal funds being to deal with the problem. At the time, a earmarked for welfare reform in Clin- White House aide said the president's ton's five-year budget package? new budget would "begin to address how Administration officials are offering all quickly we're going to spend" the money kinds of feeble excuses to explain away to implement reforms. the president's inaction. Yet, no panel has been named and no They say he is deferring action on money has been earmarked in Clinton's welfare reform in order to tackle the budget to address welfare reform. problem on a comprehensive scale, simi- Clinton may be boxing himself into a lar to the way he is dealing with health political corner by refusing to deal with care. Consequently, aides say, precise this issue at the outset of his administra- cost estimates cannot be plugged into the tion. A president's political power is usu- budget until the administration's reform ally at its height during his first year in package has been put together. office. And Clinton is going to need all the But there appear to be several other political muscle he can get if he truly factors contributing to the administra- intends to change the welfare system tion's délay. from top to bottom. For example, the Cabinet meinber di- According to White House officials, rectly responsible for handling welfare Clinton wants to get his budget approved reform is lukewarm, at best, to the in the next several weeks and then re- president's ideas. As secretary of Health solve the health care dilemma by year's and Human Services, Donna Shalala end. That would mean deferring welfare should be leading the campaign to trans- reform until next year at the earliest. At form welfare from a way of life, as Clin- this point, it appears the president ton puts it, to a second chance. But doesn't even have a credible plan, let Shalala has shown-no enthusiasm for im- alone the support in Congress to enact it. 144 Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. schedule Home Phone Number. [partial] (1 page) 04/15/1993 P6/b(6) COLLECTION: Clinton Presidential Records Speechwriting David Kusnet; Liz Bowyer OA/Box Number: 4517 FOLDER TITLE: [Press Clips] Thursday, April 15, 1993 2006-0465-F vz268 RESTRICTION CODES Presidential Records Act |44 U.S.C. 2204(a)] Freedom of Information Act - 15 U.S.C. 552(b)] PI National Security Classified Information [(a)(1) of the PRA| b(1) National security classified information |(b)(1) of the FOIA] P2 Relating to the appointment to Federal office |(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency |(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute |(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] h(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] h(7) Release would disclose information compiled for law enforcement purposes ((b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions [(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells ((b)(9) of the FOIA] RR. Document will be reviewed upon request. SCHEDULE OF THE PRESIDENT FOR THURSDAY, APRIL 15, 1993 FINAL DRAFT SCHEDULER: JOSH KING HOME: P6/(b)(6) OFFICE: 202-456-7560 WHCA PAGER: 4450 [001] PRESS DESK: ANNE EDWARDS HOME: 214 P6/(b)(6) OFFICE: 202-456-7560 WHCA PAGER: 4208 PRINCIPAL EVENTS: * Meeting with Leadership of Law Enforcement Organizations - White House * Official Photographs - White House WEATHER: Washington Mostly cloudy to cloudy with a chance of afternoon showers: minimum temperature 46 to 51: maximum temperature 62 to 67; wind southeast to south a 8 to 15 knots as of 04/13/93 5:58pm SCHEDULE OF THE PRESIDENT FOR THURSDAY, APRIL 15, 1993 FINAL DRAFT 7:30 am JOG with Ed Yoder 9:00 am- BRIEFING 9:15 am OVAL OFFICE Staff Contact: Tony Lake 9:15 am- BRIEFING 9:30 am OVAL OFFICE Staff Contact: Tony Lake 9:30 am- MEETING 9:45 am OVAL OFFICE Staff Contact: Marcia Hale 9:45 am- MEETING 10:00 am OVAL OFFICE Staff Contact: Bob Rubin 10:00 am- MEETING with Leadership of Law Enforcement 11:00 am Organizations Staff Contact: Joan Baggett 10:00 am Meeting with leadership of NAPO, IUPA and IBPO OVAL OFFICE CLOSED PRESS 10:10 am Meeting with leadership of FOP OVAL OFFICE CLOSED PRESS 10:20 am Statement ROSE GARDEN or ROOSEVELT ROOM (if rain) Program:-Audience is seated -Principals enter -THE PRESIDENT makes statement, followed by: -Bob Scully, NAPO as of 04/13/93 5:58pm -Dewey Stokes, FOP -Robert Kleismet, IUPA -Ray McGrath, IBPO -THE PRESIDENT greets police officers -Principals depart OPEN PRESS 11:00 am- MEETING with General Vessey and Ambassador Toon 11:30 pm OVAL OFFICE Staff Contact: Tony Lake CLOSED PRESS 11:30 am- BRIEFING for Miyazawa visit 12:30 pm ROOSEVELT ROOM Staff Contact: Tony Lake 12:30 pm- LUNCH with Vice President Gore 1:30 pm OVAL OFFICE 1:30 pm- PHONE AND OFFICE TIME 3:00 pm OVAL OFFICE 3:00 pm- OFFICIAL PHOTOGRAPHS 4:00 pm Staff Contact: Dawn Friedkin 3:00 pm National Ambassador for the March of Dimes Birth Defects Foundation OVAL OFFICE Staff contact: Alexis Herman Program: 11 participants POOL PRESS 3:15 pm The Mosaic Minstrels ROSE GARDEN or GRAND FOYER (rain site) Staff contact: Lorraine Miller Program: The Minstrels will give a brief performance. 9 children; 4 chaperones; 15 parents POOL PRESS 3:30 pm The Berwick (PA) High School Bulldogs, AAA State Football Champions SOUTH LAWN or EAST ROOM (rain site) Staff Contact: Marcia Hale Program: 100 participants POOL PRESS as of 04/13/93 5:58pm 3:45 pm Louisiana Videotape OVAL OFFICE Staff Contacts: David Dreyer, David Anderson CLOSED PRESS 3:52 pm Hemispheric Conference Videotape OVAL OFFICE Staff Contacts: David Dreyer, David Anderson CLOSED PRESS 4:00 pm- MEETING 4:15 pm OVAL OFFICE Staff Contact: Carol Rasco 4:15 pm- MEETING 6:00 pm ROOSEVELT ROOM Staff Contact: Maggie Williams 6:00 pm- PRIVATE MEETING 6:30 pm OVAL OFFICE Staff Contact: Marcia Hale BC AND HRC RON WHITE HOUSE as of 04/13/93 5:58pm Liz Bowyer Speechwriting Room 193 OEOB THE WHITE HOUSE Office of the Press Secretary For Immediate Release April 14, 1993 PRESS BRIEFING BY GEORGE STEPHANOPOULOS The Briefing Room 12:40 P.M. EDT MR. STEPHANOPOULOS: I guess I'm just prepared to take questions today. Q George, Bob Dole says that the Clinton administration's policy on Bosnia is a failure and that he wants the United States to take the lead in lifting the arms embargo so that the Bosnian Muslims can defend themselves. MR. STEPHANOPOULOS: As you know, President Clinton has said that that suggestion is under active consideration. Obviously, this is a tragic situation in Bosnia. And if the Bosnian Serbs don't come to the negotiating table in a constructive way, we'll look seriously at pressing for lifting the arms embargo. In the meantime, we're going to continue to press for a tough sanctions resolution in the U.N. We're going to continue to work on the Serbs to come to the negotiating table. But the prospect of an arms embargo is something the President certainly will consider if the Serbs don't come to the table. Q How much longer are you going to give them to come to the table, George? MR. STEPHANOPOULOS: We're working on that right now. Q It's been a long time. Q On February 19th, the President mentioned the value added tax in Ohio. And when he was asked about it later by reporters, he said -- quote -- "That is a radical change in the tax system of the United States. It's something I think we may have to look at in the years ahead." Questioned again about it later he says, "It is not something that is now under consideration. If we start considering it, I'll tell you." It wasn't a trial balloon or anything, he said. I was just discussing the tax response to a question. Donna Shalala, quoted in USA Today this morning -- quote - - "Certainly we're looking at a VAT." What's gone on? Q The same with Alice Rivlin this morning. MR. STEPHANOPOULOS: The health care task force is reviewing a number of options. They haven't made any decisions yet. And as I have said from this podium time and time again, we're not going to comment on decisions that haven't been made. Q But you have also said from this podium time and time again -- Q Wait a minute. Whoa, Nelly. Whoa. Q -- that that was not under consideration. MORE #56-04/14 - 2 - Q Yes. Clinton says, "It is not something that is now under consideration. Is that no longer true? MR. STEPHANOPOULOS: I believe the working group, as Ms. Shalala says, has looked at this prospect, but no decisions have been made of any kind. Q Well, I know. But he said he'd tell us about it if it was ever under consideration. I take it that now he is and he didn't tell us about it or -- MR. STEPHANOPOULOS: Did he say if it was under consideration or if it was something to be proposed? Q "If we start considering I'll tell you. MR. STEPHANOPOULOS: If it's something to be proposed? & "If we start considering it, I'll tell you." That's a direct quote. MR. STEPHANOPOULOS: The task force has looked at a number of different options. They have not made any decisions yet. The President has not made any decisions yet. This is -- one of the proposals under consideration by the task force was to go out and cast as wide a net as possible for different ideas on how to reform the health care system. They have cast a very wide net. They have looked at hundreds of different proposals -- probably thousands of different proposals. But the President has not made any decisions. Q Well, is the President aware of their consideration of this option? MR. STEPHANOPOULOS: I don't know if he's been briefed on any preliminary conclusions or anything like that from the task force on this specific proposal of any kind. I don't know that that's gotten to his level. He started yesterday to go through with the task force a very wide range of decisions and I don't believe that that's been presented to him, no. Q Well, he's not relying on the USA Today to tell him what his task force is considering in the way of taxes. MR. STEPHANOPOULOS: No, he's going through it in a very deliberate fashion. There are a number of decisions that have to be made. I don't know that this proposal has reached that decision- making point. Q If this is still under consideration, that's a change, at least from what we've been told by Dee Dee, I think about three weeks ago or so. She said, that is not an option, talking about the -- had a big argument with somebody over this, so I remember it specifically and said it not once, but twice. Is that not the case? MR. STEPHANOPOULOS: Again, I don't know if this has been presented to the President as something that is being looked at at some level in the task force. Q It was ruled it out, though. I mean, unlike other options that you've kept in the mix, this one specifically was ruled out. MR. STEPHANOPOULOS: Again, this is something that is being looked at, but no decision has been made of any kind. I mean, it doesn't -- it's not necessarily material until you get to the MORE #56-04/14 - 3 - decision-making phase. The working groups are looking at hundreds of different options. Q If it was ruled out before and it's not ruled out now, then something has changed, George. Yes, no? I When a guy says in February -- MR. STEPHANOPOULOS: Well, the working groups are looking at the widest possible range of options. I So something's changed. They weren't looking at it before; they're looking at it now. MR. STEPHANOPOULOS: Well, I don't know if the working groups have gotten to that point yet. They are casting a very wide net. Q How was it possible that you and Dee Dee were able to sell -- definitively rule it out as an option previously and now are saying that, in fact, it is being considered? MR. STEPHANOPOULOS: Again, the working groups are looking at a wide range of options. They have not -- Q Do you deny that you and Dee Dee ruled it -- flatly ruled it out on several occasions in the past month? MR. STEPHANOPOULOS: I don't deny that -- I mean, those are the President's words. Those are very clear. Q Subsequent to the President's words, do you deny that within the last month you and Dee Dee have both publicly ruled it out? MR. STEPHANOPOULOS: I don't know about the timing. I think what we did was refer back to the President's words and say they stand. Q So don't they stand any longer? Q March 25th, Clinton said for the next four to five years it was ruled out. MR. STEPHANOPOULOS: Well, those words -- the President did say that in February. The working groups are on a separate track, and as I said, I don't believe -- Q Separate from the President? MR. STEPHANOPOULOS: I don't believe this has been presented to the President. Q Are they considering something that the President -- Q Has ruled out? Q -- has ruled out? I mean, will the President consider a VAT tax? MR. STEPHANOPOULOS: Again, the working groups have not presented this to the President. They have looked at a wide range of options. I suppose that if an argument is made, he will clearly listen to it. That does not mean he has decided to do it. MORE #56-04/14 - 4 - I Can we put this another way? In his answer in Ohio, he looked at the VAT in terms of restructuring the whole tax system. Under those that was the circumstance that he said it might be considered at some future point. Is that no longer the case, or is that the only way that he can see a VAT emerging? MR. STEPHANOPOULOS: I guess I'm not sure exactly what you're asking. Q He talked about the VAT in the context of a restructured tax system, not as a specific way to finance health care, for example. I or anything else. Q or anything else. Q It was always in the context of substituting for other taxes at a time of a dramatic overhaul of the whole tax system. MR. STEPHANOPOULOS: Right. Q Has that change, too? Q Is that still his view? MR. STEPHANOPOULOS: I haven't spoken about those specific comments. I think I can just go back to it -- are the working groups have they examined the possibility of a VAT? Yes, they have. 2 Certainly we're looking at a VAT, she said. MR. STEPHANOPOULOS: They have examined the possibility of a VAT. Has it been presented to the President? Has he made a decision? No, he has not. Q What kind of a deal do you have when you've got the President's appointed task force, obviously not oblivious to his ruling something out except in the context of some huge down the line reform, goes ahead on its own and considers a tax which he has specifically ruled out in any context other than much later, and then goes ahead and announces that that's what they're looking at? Is the President concerned about that sort of thing? MR. STEPHANOPOULOS: I think that the President's concern is to make sure he gets the best health care proposal possible. He's concerned with making sure that they have the most thorough process for examining all the possible alternatives, all the different alternatives. If a decision is made to go forward with something like that it's certainly something the President will explain and justify. But no decision has been made along those lines. Q What does it mean exactly, though, when the President rules something out? Does it mean it can get back on the table later if a more persuasive argument is made? MR. STEPHANOPOULOS: That's just that's indisputably true. If you but, at the same time, he has not ruled it in. He has not made a proposal. Q What makes him open to it now when he wasn't open to it before? MR. STEPHANOPOULOS: He's certainly willing to listen to the argument. MORE #56-04/14 - 5 - & Was he willing to listen to the argument for a short-term tax this year, and he wasn't willing to listen to it in Chilicothe? He's now open to it -- MR. STEPHANOPOULOS: The context of his comments was that it was not something -- he wanted to be clear that this is not something he was proposing, not something he was floating. Q Not something he was considering. Those are his words -- "It's not something that's now under consideration. If we start considering it, I'll tell you.' You're now acknowledging, are you not, that it is under consideration and -- MR. STEPHANOPOULOS: I'm acknowledging that the task force has studied this proposal. I am also stating that the President has not made a decision on it. Q But the door is open for the President to reconsider including this as part of -- MR. STEPHANOPOULOS: Obviously, the working groups are looking at it. Again, but the President has not made a decision. Q Do you know if they will make a presentation on behalf of the VAT to him? MR. STEPHANOPOULOS: I don't know that. I assume that if -- I don't know what stage they are it in proposing. I don't know that they're going to make the conclusion that this is something they should present to him. I know this is something the working groups are looking at. Q Do you understand, George, that none of us are asking these questions in context of a decision that the President has made, only about what the President is considering? MR. STEPHANOPOULOS: I understand that, and I am acknowledging that the working groups have examined the issue of a VAT. Q And the President will consider it? MR. STEPHANOPOULOS: I assume that he will consider the argument if it is presented to him. Q Does that mean the President -- that working groups think that when the President says no, he means maybe? (Laughter.) MR. STEPHANOPOULOS: I think that means that the working groups are trying to do the most thorough job possible. Q George, can I ask you another question about Bosnia? MR. STEPHANOPOULOS: Sure. (Laughter.) Q No, he wants us to stay on this. Q Let's do gays in the military. (Laughter.) Q No, he got out of that swamp. Q I think we've gotten the bottom line on that VAT. Reggie Bartholomew, your Special Ambassador in Belgrade, today said that if the Serbs do not accept the agreement that has been worked out quote -- "We will do our part to pursue the lifting of the MORE #56-04/14 - 6 - arms embargo together with our allies." That seems to go a bit further than what you've just said -- MR. STEPHANOPOULOS: Sounds almost exactly what I just said. Q Well, do you accept in other words, you accept what Reggie -- MR. STEPHANOPOULOS: Well, the President has said that this is something that's under consideration. It is something he will consider if the current actions don't bring the Serbs to the table. Q Isn't there some kind of timetable here? MR. STEPHANOPOULOS: Yes, there is a timetable. There's going to be a vote on the U.N. resolution in about 10 days. Q That's on sanctions, that's on tightening the sanctions. MR. STEPHANOPOULOS: That's right, that's sanctions. And we believe that that will ratchet up the pressure, and we hope that that will bring the Serbs to the table. As you know, Mr. Bartholomew also met with Mr. Churkin of Russia, and they are also working on ways to bring the Serbs to the table. We will continue to pressure them in many different ways and this is one possible option as well. Q The question is whether there's a timetable for consideration or a vote on a decision on lifting the arms embargo, not the sanctions. MR. STEPHANOPOULOS: The next vote in the U.N. is on sanctions. As far as I know, there are no votes scheduled on lifting the arms embargo. But it is something that we have discussed both internally and with our allies. Q Why did Reggie Bartholomew tell the Serbs that the U.S. would do that? What was the point of his telling them that? MR. STEPHANOPOULOS: Well, clearly, I mean, this is something that's under consideration, and this is something that we take quite seriously if they do not come to the table. They should know the consequences of failing to come to the table. Q Have they been given a deadline? Q Warren Christopher has been saying the same thing and it hasn't seemed to change the Serbs' behavior in the least. Why should the Serbs take any heed of a threat to lift the arms embargo when so far everything that's been done has had no effect on the fighting in Bosnia? MR. STEPHANOPOULOS: I just don't accept the premise of your question. It has had an effect; the embargo is having an effect. Q What effect? MR. STEPHANOPOULOS: If the Serbians choose not to heed our warnings, then they will face the consequences. Q What effect has it had in Bosnia? MORE #56-04/14 - 7 - MR. STEPHANOPOULOS: Well, the effect that it has had on the Serbians, it has tightened up -- they are not getting their shipments through. We can brief more fully -- Q In Bosnia, George. In Bosnia what effect has it had? MR. STEPHANOPOULOS: Well, it's hard to say if it's stopped the aggression to date. That is why we're continuing to press for the Serbians to stop. But we believe that over time we will continue to weaken the Serbs and that will have an effect. I'm not saying it's going to happen overnight; it clearly hasn't happened overnight. But we believe that over time the sanctions can weaken the Serbs. If it fails to work and if the Serbs fail to come to the negotiating table, we'll move forward with the embargo. Q Isn't there a working deadline, George, of the 24th -- the same date as the U.N. -- the scheduled U.N. vote? Hasn't the United States said, along with many of the other NATO allies, that if the Serbs aren't willing to sign on to the peace accord by then, that we'll seek haven't we said that we will seek -- MR. STEPHANOPOULOS: We've said continually we're going to -- Q But on that deadline? MR. STEPHANOPOULOS: I don't have a specific date, but we're going to move forward with the resolution, the U.N. resolution, by around that time. And if that fails to take effect, if that fails to bring the Serbs to the table, we will clearly consider other actions. Q Isn't this awfully incremental? MR. STEPHANOPOULOS: We're taking a step-by-step approach. We're ratcheting up the pressure and we're going to continue to do that. Q Is there a possibility, George, that by the time all these incremental steps are taken the Serbs will have achieved their goals and then what's the purpose? MR. STEPHANOPOULOS: I think the purpose is to get the Serbs to stop the aggression. We are pursuing that goal on many different fronts. We are pursuing it through the U.N.; we're pursuing it through direct talks; we are pursuing it through tightening the sanctions. And we will consider lifting the arms embargo. We are turning the screws up on the Serbs and we will continue to do that. Q But if the efforts have been unsuccessful in getting the Serbs to stop the aggression how effective will any campaign be to have the Serbs give back what they've gained? I mean, once they're entrenched -- MR. STEPHANOPOULOS: I can't speculate on that. We're going to continue to press for them to come to the table now. We're going to continue to find ways to stop the aggression. But I can't see into the future. Q George, on the stimulus package, House Republicans say they're going to hold a series of town meetings on Saturday to try and explain the details of your package. They cite polls which show that the more people learn about it, the less they like it. What's your strategy to counter that? MORE #56-04/14 - 8 - MR. STEPHANOPOULOS: The strategy we have is the one we're going to continue. As you saw, the President today pointed up the very real benefits of the summer jobs program that this package will provide: 700,000 new summer jobs this summer for kids in inner cities and suburbs to do productive work. We are also going to point out the benefits of the highway money, the investments in highways. We're going to point up the benefits of immunization. We're going to point up the benefits of Head Start. We are going to say that the Republicans have a choice: they can take action to create jobs or they can perpetuate the gridlock of the last four years. Q Does it concern you, though, that the House now, the House Republicans are after you as well as the Senate? MR. STEPHANOPOULOS: The House Republicans voted against it before. They made a mistake then; they're making a mistake now. Q George, does it strike anybody in the administration that it's a bit strong to describe, as the President did this morning, the summer jobs program as -- quote -- "a reaffirmation of a promise of America"? MR. STEPHANOPOULOS: Not at all. I think it's the promise of America to give kids a chance to reach their full potential. Q Government-funded jobs? MR. STEPHANOPOULOS: To give people a chance to work? Absolutely. That is the promise of America. I I want to follow up on something I asked yesterday -- where does 700,000 summer jobs, where does that figure come from? MR. STEPHANOPOULOS: That is on top of. I did look at it. There are currently 600,000 summer jobs in the pipeline. This will be on top of the 600,000, so it will be a total of 1.3 million. Q The 700,000 would be created by the stimulus package? MR. STEPHANOPOULOS: Yes. Q Where does that number come from? Because we've been told all along that the stimulus package would create 500,000 new jobs. And according to Panetta, that breaks down to something like 200,000 full-time jobs and 150,000 summer jobs. MR. STEPHANOPOULOS: Yes, but the summer -- that's when you do their full-time equivalence. I mean, 700,000 individuals will receive jobs this summer. When you calculate it for the full-time job effect, you have to do -- I don't know what the exact formula is. Q Seven hundred thousand part-time jobs -- MR. STEPHANOPOULOS: -- 150,000 or -- Q One to four because it's three months. MR. STEPHANOPOULOS: Thank you. Q Can I follow up on that? Did the President misspeak this morning when he said that some of the government money for these summer jobs will pay for private -- for kids to work in the private sector? MORE #56-04/14 - 9 - MR. STEPHANOPOULOS: Not necessarily. I mean, I think that there will be grants available. That's one of the ways that you pay for the jobs. At the same time, he's also issued a challenge to the private sector to hire kids on their own as well. Q Tax dollars, for instance, would pay for kids to work at Time-Warner? MR. STEPHANOPOULOS: I think the Time-Warner is actually somebody coming forward and actually doing a grant. That's going to be the bulk of it. There could be isolated instances, though, where there would be grants to businesses. Q Has the President spoken with any Senate Republicans this week? MR. STEPHANOPOULOS: No, but there's been a lot of contact with Senate Republicans in the White House. Q At a lower level. But the President hasn't? MR. STEPHANOPOULOS: The President has not, no. Q Getting any closer to get the votes? MR. STEPHANOPOULOS: We're continuing to work on it. Q Anybody leaning your way? Q On Haiti, The New York Times seems to be reporting something of a breakthrough in Aristide's attitude towards the coup leaders. Can you confirm that there has been this change, and what impact will it have on the process? And what did Pezzullo have to say yesterday in his report? MR. STEPHANOPOULOS: Pezzullo did brief the principals. I can't confirm what's actually happening in the talks. I would leave that to the negotiators themselves. But Mr. Caputo has returned to Haiti. We have received a briefing here at the White House from Ambassador Pezzullo. And as we have said time and time again, we believe that assurances of security are important to a final resolution to a broader political settlement. Q George, yesterday you offered some selective breakdowns of how the stimulus would impact some states and cities. Can we get a complete breakdown by state of how these jobs would be impacted? MR. STEPHANOPOULOS: I think we have it for most states, yes. And I think we can get it out. I Could you make that generally available? MR. STEPHANOPOULOS: I believe we can. Q And could you do it by the component of the stimulus? In other words -- MR. STEPHANOPOULOS: I don't know if we can do -- I know that we can do it by summer jobs and other jobs. I don't know how deeply it can be broken down. But clearly, we can break it down into summer jobs and other jobs. I And can I follow up? Is this the information that Jeff Eller and the rest of the White House is using in the ads in the states? MR. STEPHANOPOULOS: I don't know if they're ads, but they're press releases. Q Can you describtORhat those press releases contain? - 10 - MR. STEPHANOPOULOS: All we're doing is pointing out the benefits of this package to various states. For instance, I know that today Senator Dole is heading up to Vermont and New Hampshire. And I would point out that the stimulus package, the jobs package creates 1,000 jobs in Vermont. It creates 2,000 jobs in New Hampshire. And the people of those states should remind him that this is important. Q Where are the releases going? MR. STEPHANOPOULOS: They go to the states. Q To whom? MR. STEPHANOPOULOS: We can get them. It's no problem. Q Can we get it? Q Why don't you put them out here as well? MR. STEPHANOPOULOS: I think we can. Q This afternoon? Would that be possible? MR. STEPHANOPOULOS: I'll have to check. I don't know. But as soon as we can. 2 Are you focusing these press releases on states where there are moderate or pragmatic Republican senators? MR. STEPHANOPOULOS: I think we're trying to get as many as we can. It's actually quite difficult to pull this together and we're doing our best. We're putting them out as we get them. Q Why are you so closely tracking Senator Dole's schedule? MR. STEPHANOPOULOS: I was just following it. & Are press releases going along to states where he's visiting? MR. STEPHANOPOULOS: I'm not sure. I think that probably there are press releases going to Vermont. (Laughter.) Q Will there be a man in a chicken suit waiting? (Laughter.) Q George, as the President goes about the business of defending what's in his stimulus package, he doesn't address what seems to be the Republicans' main point, that you're funding it with deficit spending rather than "if it's so important, why not come up with the funding for it" seems to be the Republican argument. And how do you answer that? MR. STEPHANOPOULOS: What was answer is, we are paying for it over time. And if you look at our budget, we pay for this package over time. We believe right now the economy needs a jump- start for jobs. Q You're not claiming, are you, that that doesn't add to the deficit this year? MR. STEPHANOPOULOS: I'm saying we're paying for it over time. I didn't say that. MORE - 11 - Q I know that, George. But I mean, from the beginning, the question -- we do have annual budgets and things -- deficit spending will pay for that this year, will it not? MR. STEPHANOPOULOS: This year they clearly will. But over time our budget fully pays for this program. I What you're saying is that there are savings that would cover this if it were this year in future years? MR. STEPHANOPOULOS: Absolutely. That's exactly what I said. Q I know that, but there is going to be outstanding debt, it will add to the national debt from this year -- MR. STEPHANOPOULOS: No, we're reducing the deficit by $500 billion $514 billion over the next four years. Q You mean you're reducing it below what it would have been? MR. STEPHANOPOULOS: Exactly. Q In fact, you're adding a very large amount to the national debt over the period of -- MR. STEPHANOPOULOS: But we're reducing it far more from what it would have been. That's true. Q Washington-type reduction. (Laughter.) Q You're getting to be a grumpy old man. Q George, has any decision been made about the White House or the President's participation in the gay rights march coming up in a week and a half? MR. STEPHANOPOULOS: We're working on the President's schedule now. I believe he's going to be at the Senate Democratic retreat in Jamestown that weekend. Q Will he address it by phone? MR. STEPHANOPOULOS: I don't know about that. It's a little far out, but I believe he's going to be in the Senate retreat. Q So will he have the leaders in a day or two before the speech? MR. STEPHANOPOULOS: I don't know. I would expect that at some point he would meet with the leaders of some of these groups. I don't know the schedule on it, though. I Will there be an AIDS czar appointed prior to or in conjunction with the event? MR. STEPHANOPOULOS: I'm just not sure. Q April 22nd is Earth Day. What is the President going to do to mark that, and is it the case that he is going to sign the biodiversity treaty that day? MR. STEPHANOPOULOS: I know there's been some work on the biodiversity treaty. I don't know about signing it that day, but I would expect he'll have a statement on Earth Day or right around then. MORE - 12 - Q Where is the work on the biodiversity treaty? MR. STEPHANOPOULOS: I'd have to check with Katie McGinty. I just know that there's been some work done, but I don't know exactly what. Q When is Earth Day? MR. STEPHANOPOULOS: The 22nd, I think. Q Why is it you know that he is going to have a statement on Earth Day but you don't know if he's going to have a statement on the gay rights march? MR. STEPHANOPOULOS: I said I don't know if he's going to meet or when he's going to meet. Q Do you have a statement on the gay rights march? MR. STEPHANOPOULOS: I don't, actually, no. I wouldn't be surprised if he did, though. Q Do you have some details on the Miyazawa visit? MR. STEPHANOPOULOS: It's a working visit on Friday and the President is looking forward to that in discussing a number of issues including Russian aid and the Japanese stimulus package and the trade issues between the two countries. Q There was some expectations that a second aid package to Russia was going to be unveiled at the G-7 meeting and, if I understand, it hasn't happened. Why is that or what's the status on that? MR. STEPHANOPOULOS: The G-7 meeting is still going on and, as you know, Secretaries Bentsen and Christopher have talked about the outlines of a possible package. But we're going to continue to consult with Congress and our G-7 allies on that. Q We will not then make any kind of announcement during the two-day meeting? MR. STEPHANOPOULOS: The meeting's not over yet. Q Is that when you're going to make one? MR. STEPHANOPOULOS: I'm not ruling out the possibility. Q -- the President's going to announce it tomorrow. Q Bentsen said that. Q Yes, Bentsen said it would be tomorrow. Q So did Christopher. MR. STEPHANOPOULOS: I'd have to look at that, but I believe it is more likely that the announcement will come out of Tokyo. Q George, has there been further consideration here about going to -- sending the President out to Los Angeles? MR. STEPHANOPOULOS: I don't know that there's -- it's not something we've ruled out. We don't have a date set for it. MORE - 13 - Q George, you all have a position or do you support Immigration's plan to settle 4,000 Iraqi prisoners in the United States? MR. STEPHANOPOULOS: It's the first I've heard of it. I George, there was a report today about the -- I Fortunately. (Laughter.) Q -- about the pace of appointments and says that President Clinton is behind President Bush in the number of positions that people have been nominated for. Are you going to speed up the pace of nominations or where do you stand with it? MR. STEPHANOPOULOS: We filled 814 of the President's appointments. And it's broken down -- we have 384 Schedule c; 147 noncareer SES; 213 PAS full-time. I'm not sure what that means -- (laughter) -- 70 PA full-time. And this is about the same -- it's about the same pace of President Bush. Obviously, as you move along farther, once you -- each level of appointment actually has a multiplier effect and frees up far more appointments. So we expect the process to speed up. But we're at the pace of Bush. Obviously we'd like to get these done as quickly as possible. I would point out that the FBI background checks and the background check is far more comprehensive and it takes more time than our predecessors, and that is part of the holdup. But we're working on it. Q Is that because of Nannygate? MR. STEPHANOPOULOS: I think that's an awful big part of it, yes. Q In the story this morning, you were at approximately the same pace as Bush in making appointments, but way behind in winning confirmations. MR. STEPHANOPOULOS: That's where the background checks comes into play. That's the problem. Q That's the background checks problem? Because I mean, you have a Democratic Senate -- MR. STEPHANOPOULOS: No, that's not the -- you make the appointments, and then it takes quite a bit of time to fill out all the forms and have the background checks done. That's exactly where the problem is. Q What's the President doing this afternoon, and what's on the plan for tomorrow? MR. STEPHANOPOULOS: He's got some meetings -- just office meetings this afternoon for the most part, on a variety of issues that -- probably a half-dozen different issues. And then he'll be -- tomorrow we'll have an event, probably again focused on the stimulus and jobs package out of here at the White House. And Friday is the Miyazawa meeting. Q Will you be releasing his tax return tomorrow, George? MR. STEPHANOPOULOS: Either tomorrow or Friday. Q Is there going to be a pre-briefing regarding the Japanese Prime Minister's visit tomorrow? MORE - 14 - MR. STEPHANOPOULOS: I don't know about tomorrow, but we'll probably get something done, as we usually do, for these visits. Q Was Reverend Jackson here this morning and do you know what that was about? MR. STEPHANOPOULOS: He was here. He met with a group of us here at the White House, including Mack McLarty. I Who? Q Reverend Jackson. MR. STEPHANOPOULOS: Reverend Jackson. Mack McLarty, me, Gene Sperling, Bruce Reed, Jeff Watson, Mark Gearan. Q Talking about Haiti? MR. STEPHANOPOULOS: We talked about general urban policy. He is about to go to Los Angeles. He was just back from Mississippi, where we had a good victory last night; and he's going on to Los Angeles. Q Did he request the meeting? MR. STEPHANOPOULOS: Actually, no. He's in continual contact with the President. He had written a letter on a variety of issues, and so we asked him to come in and talk about it. Q George, Dole is having a fundraiser for Jeffords tonight in Vermont. Have you guys been in contact with Jeffords at all on this? MR. STEPHANOPOULOS: I think there's been some contact, sure. Q Can you tell us about the contacts? MR. STEPHANOPOULOS: I'm not sure -- Q Do you know who contacted him or what was said? MR. STEPHANOPOULOS: I know that Howard Paster talked to him and they just has a general talk about the package. Q And did he express his support for it now, or is he -- MR. STEPHANOPOULOS: I can't divulge the details of the conversation, but there have been conversations. Q The L.A. Times is reporting that abortion -- elective abortions is likely to be included in the basic health care package. Is this something the President is considering? MR. STEPHANOPOULOS: Again -- Q Along with the VAT? (Laughter.) MR. STEPHANOPOULOS: It's certainly something that's been looked at, but no decisions have been made. Q What was the question? MR. STEPHANOPOULOS: The L.A. Times story on whether abortions will be covered by the President's health plan. MORE - 15 - Q Did the President in his meeting -- did you in your meeting with Reverend Jackson ask his advice, solicit his advice about what kind of stance the White House should take in the wake of the verdict in L.A.? MR. STEPHANOPOULOS: Well, we certainly talked about the situation in Los Angeles and the long-term prospects for economic development and other issues. Q For instance, did you discuss whether it would be helpful for the President to go there or not? MR. STEPHANOPOULOS: Well, we discussed a wide range of issues related to Los Angeles. That was certainly one of them. Q Letting you perhaps go out on the way you came in, I need to go back to Bosnia just for a second and ask -- MR. STEPHANOPOULOS: Oh, good. Q -- your reaction to Margaret Thatcher's comments that you're just sitting by and watching a massacre. MR. STEPHANOPOULOS: Well, we've been pushing very hard on a number of fronts for more aggressive action. We will continue to do that. Q Can you tell us if you've made any progress in your talks on the stimulus package getting a compromise? I mean, we don't have any feel except talks are ongoing. Have you talked to like 20 people or -- MR. STEPHANOPOULOS: I don't know the numbers. We've talked to several people and we've had wide-ranging sessions. Q Anyone leaning your way? MR. STEPHANOPOULOS: I can't get into that. We're just going to keep working through Tuesday. THE PRESS: Thank you. END 1:10 P.M. EDT #56-04/14 THE WHITE HOUSE Office of the Press Secretary For Immediate Release April 14, 1993 REMARKS BY THE PRESIDENT AT SUMMER JOBS CONFERENCE Hyatt Regency Crystal City, Virginia 11:22 A.M. EDT THE PRESIDENT: Thank you very much. The speech that Octavius gave says more than anything I will be able to say today about why it's important to give all of our young people a chance to get a work experience and to continue to learn, to merge the nature of learning and work; why it's important to honor the efforts of people like Jerry Levin and Nancye Combs and Pat Irving and all of those who are here. I want to thank the Secretaries of Labor and Education and all the people who work with them for sponsoring this; and my good friend, Governor Wilder, for being here and for speaking; and all of the business and local community leaders from the city and county and state level from around America who are here. This has been a pretty fun day. (Laughter.) I loved hearing the young people sing. It was music to my ears because it is their future that we are really struggling about. (Applause.) A year and a half ago I began the quest to seek the presidency because I was concerned about their future. Because I believe that our country, which had always been a beacon of hope for the young, had too little opportunity, was too divided among ourselves across lines of income and race and region and other ways, without a vision to take us into the future. I entered with the hope that together we could create more opportunity and insist on much more responsibility from all of our people. But in the process we might recreate the best of America's community, knowing that together we could always to more than we could individually and that we might secure our future. All of you here today are committed to that. The 1,000 jobs that Jerry Levin has committed Time-Warner to is symbolic of the commitments made by many of the private sector people who are here, and those who are around the country. The work that Nancye Combs does, and the successes of all the young people like those on this stage, and especially the eloquent statement Octavius Jeffers -- all those things show that together we know what we need to do, and we're on the right track. Last July when I was traveling across America's heartland in my luxurious bus, I visited Seneca High School in Louisville, Kentucky. And there I met young people and business people who were participating in the Louisville Education and Employment Partnership. I saw what Nancye Combs talked about today. I saw how the young people were making an extra effort to succeed both in school and at work. I saw, as I have seen many times in my own state, the principle illustrated that Octavius has talked about -- that for millions of American young people it is really an impediment to both their learning and their ability to be good workers to draw a sharp dividing line between what is work and what is learning. MORE - 2 - In the world in which we are living, the average young person will change the nature of work seven or eight times in a lifetime. We must learn to merge the work world and the learning world much better. And we must determine that all of our young people see the opportunities that some of them have had showcased here today. Whether you're in business or in government or in education, you know that we have a big job to do when it comes to building a future that really, honestly includes opportunity for all of our people. There are still a lot of people who say, well, things are pretty good here in Washington and everything's fine; the best thing we can do about this whole thing is nothing. They all have jobs. (Laughter.) All the people who say that. (Applause.) They all have health insurance. They all have a pretty good education. And they all have a pretty secure knowledge that they'll be okay no matter what happens. I say that not to be either political or unduly critical, but to point out that one of the great challenges of this age for every advanced nation everyone -- is to fully develop the capacities of all of its people, and then find work for them to do. All the European countries have higher unemployment rates than we do, but also stronger support systems for the unemployed. The Japanese unemployment rate has been going up. They're going to adopt a stimulus that, even if you count it in its most rigorous terms, is three or four times bigger than the one that I have proposed to create jobs. In West Germany alone, the unemployment rate is now about as high as ours. This is a big problem for advanced nations. It costs a lot of money to add an extra employee, with a lot of pressure from low-wage producers in other countries that are growing their own economies and trying to provide new opportunity for their people. But it is especially important for America for two reasons: One is, we have a whole lot of folks who, unless we move aggressively, will not have the education and skills we need to be competitive and productive in a nation like this. The second is, even if we educate them all, if there aren't jobs they will be robbed of the fruits of their educational labors. People need to be able to work in this country. (Applause.) We have always had some unemployment; and, indeed, some of it is normal. You've always got some people leaving jobs and moving around the country and doing first one thing and another. We have now, at this moment in our history, the necessity for all big organizations, including the government, to reexamine the way they are organized and who ask whether there are too many people working at some kinds of jobs. But in the whole, we must still be able to create jobs in a country like America, to provide people with the chance to work. It's going to be difficult for me to make the welfare reform proposals that I will make to Congress in the next couple of months it's going to be hard for me to make those work if, at the end of all this work, to get off welfare there isn't a job. (Applause.) So we have two tasks. One is to develop the capacity of the American people to perform without regard to race or income or the circumstances of their birth. The other is to make sure that there are some opportunities for them to bring to bear for their talent and to be rewarded with a paycheck. It is a great challenge. I do not pretend that all of the answers are simple. But I know if MORE - 3 - you want to ask the American people, all of them, to be more responsible, if you want to recreate a sense of community in this country that bridges the lines of race and income and region, you have got to have opportunity in that mix. A part of our vision for America has to be a future for every young person in this country who's willing to play by the rules and work hard and strive for the end of the rainbow. There has to be something at the end of that rainbow. And that is what we are basically here to talk about today: What can we all do as partners, recognizing none of us can do it alone, to develop the capacities of our people to succeed wherever they live and whatever their background. And then, what can we do to make sure that there's something there for them to do? The summer jobs program we're discussing today is an integral part of that plan, because it will promote the values of work and opportunity and fairness, community. It will put the people first, and it does have a partnership between the public and private sector. I said when I addressed the United States Congress in February on this program that I would seek to create about 700,000 extra summer jobs from government sources and then challenge the American business community to meet that target so that we can create more than a million new summer jobs over and above what had been created before. Many, many people have responded to that challenge. And Jerry is just a shining example of that which has been replicated in this room and around the country people who are going to do more than they otherwise would in the private sector to give young people a work experience. And it is terribly important. I want to emphasize that this summer jobs program is part of an overall commitment to increase the capacity of the American people from retraining defense workers who lose their jobs and other adults who need to acquire new skills; to improving the transition from school to work for young people who don't go to college but do need at least two years of post-high school training either on the job or in a community college or a vocational setting, SO that they can be competitive workers, making it possible for more people to go on to college who do want to go. All these things are part and parcel of a comprehensive plan. It's also important, as I said, that we create more jobs. The emergency jobs program that I asked the Congress to adopt would create a half a million extra jobs over the next year and a half, and that would reduce the unemployment rate by a half a percent. It would also enable us to absorb more young people coming into the work force in jobs that otherwise will not be created. It also will help a lot of cities and counties to invest in things that need to be done at the grass-roots level -- projects long delayed, water projects, sewer projects, park projects, new industries and particularly in small and medium-size communities -- a whole range of things that will improve the economy and improve the environment. The summer jobs program is an important part of that because we have tried for the first time, through the work of the Labor Department and the Education Department and through reaching out to people like you, to make this more than just a one-shot summer jobs program; to integrate it with private sector efforts; to hopefully replicate it in each coming summer; to move these young people into further educational opportunities and to further job opportunities; and to have a strong, meaningful education component MORE - 4 - to these summer jobs something that the United States government has never fully emphasized before. A lot of these young people, as you well know, because they come from difficult backgrounds, because they go to school in difficult and challenging circumstances, need extra help in building their basic skills in math and language, reasoning and in other areas. And a lot of educational studies show that young people who have difficulty in school often forget as much as 30 percent of what they learn over the summer and then that has to be repeated the next year. What we are trying to do here is to give people the opportunity to learn good work habits and to reinforce their learning skills and to put them together; and then, hopefully, over the next couple of years, if our entire program passes, to give every school in this country the opportunity to have a good work and learning environment. There will be more applied academics, more opportunities for people to learn and work during the school year, so that this will not simply be an isolated moment for these young folks, but will be a part of building a whole new educational experience, a whole new work experience, and moving on a pathway to a better future. The summer jobs programs are not designed to be make- work jobs. They're designed to make a future for the people holding the job. And that's what they will do. In the process, they'll help to build local communities, to strengthen local economies, to solve local problems. Real jobs -- renovating housing, repairing public buildings, doing clerical work, providing nursing assistance in hospitals, supervising and training children at child care centers, and learning all the way. Challenging young people to learn while they earn, but letting them earn. You know, it's very difficult to make a case to people who have never seen opportunity on their own street that they should do this, that, or the other thing if there's no evidence of the opportunity that's at the end of the effort. I have not been sparing in going for the last year-and-a-half into places where it isn't exactly popular to say it, and say I wanted to reform the welfare system; I wanted to toughen child support; I wanted to require people to work; I was sick and tired of people being irresponsible in the use of guns on the streets, and I wanted to change all that. But if you're going to summon people to greater responsibility, you have to reward them when they do the right thing with opportunity. (Applause.) The young people we propose to put to work under our program will spend 90 hours learning basic skills, such as math, reading, writing -- either on the job in the classroom. They will stretch their minds as well as work up a sweat. They will have a sense of accomplishment. It will literally be a summer challenge, but a challenge that will take them into a different life. So I want to ask all of you to support this effort even as I, as your President, support your effort. At the end of the summer we will evaluate all the young people who participate. We'll see whether they, instead of falling behind over the summer academically as too many young people do, they stayed even or moved ahead. I suspect that they will. This summer, Secretary Reich and Secretary Riley and I will be visiting many of your communities. We'll really try to learn from you which of these efforts are working, what we should do next summer, how we can build it in to what goes on during the school year, how we can build in our job training efforts and the works that we do with your companies to make sense of this whole thing -- so MORE - 5 - that we maximize the impact of the taxpayer dollar and your private investments as well. We want to honor the companies and the communities, the business leaders and the young people who do the very best jobs this summer. And, again, I want to say to all of you in private business who have matched our effort, I thank you. And to all of you who haven't, and those across the country who may listen or learn about this event today, I want to implore other private employers to stretch a little bit to give other young people a chance to work this summer. I'm telling you, we cannot go through another 10 years when we don't give these children anything to say yes to. If we exhort them to do right, we've got to be able to reward them. (Applause.) When the other speakers were talking, I was sitting up here on the platform, listening and reveling. And they got talking about work, and I got to thinking about all the different things I've done to make a living in my life. When I was 13, I made a very foolish short-term business investment: I set up a comic book stand and sold two trunks full of comic books. Made more money than I had ever had in my life. But if I had saved those trunks, they'd be worth $100,000 today. (Laughter.) That does not mean young people should not be entrepreneurial. It just means that you can't foresee a generation ahead. I have mowed yards and cleared land and built houses and worked in body shops and the parts departments of a car dealership. And I've done a lot of different things for a living. Some people say I got into politics to escape work. (Laughter.) I learned something from every job I ever had. But I grew up in a generation where I literally did not know a living soul without regard to race or income who wanted to work who didn't have a job. I grew up in a generation when all you had to really say to people is, get an education and you'll be all right. You'll get a job and you'll make more money next year than you did this year. Now I live in a generation full of people, most of whom don't make any more money in real dollars than they did 10 years ago and they're working longer hours and they're paying more for the basics of life. And we are now wondering whether we can create the jobs that these young people want. Now, I want to close by reemphasizing these two things: It doesn't matter what kind of economic policies this administration pursues, or how much productivity increases there are in the private sector, if young Americans don't get a good education, don't learn how to work and can't be productive, those jobs will not be created in this country. Machines will do the work or the work will be done off-shore by people who have the same skill levels and can work for a third or a fourth or a fifth the wages. So nothing we can do economically will matter unless we build the skills and capacities of America's work force. And anybody that pretends otherwise is just kidding. On the other hand, we need to be honest. Every wealthy country in the world, including the United States, is having difficulty creating jobs. If I knew everything that needs to be done I'd be glad to tell you and we could just call off the whole deliberations of Congress and everything else. I don't have all the answers. But I know this: Doing nothing is not the answer. (Applause.) And so the jobs program that I have presented to Congress, with the summer jobs, with the money for the cities and the counties, through the Community Development Program, with the infrastructure money, is a small part of a big budget. It is an attempt to engage in an experiment to see whether or not, with the economy recovering in terms of corporate profit, we can give a little MORE - 6 - boost to it, give opportunities to young people, create a half a million jobs and maybe get the engine going again. Most of the jobs in this program are going to be jobs in the private sector, not government jobs, even though it's government money. And the lion's share of the work in rebuilding the American economy obviously will come from the private sector. That's the kind of system we have and it works pretty well. But this is the challenge we have. So I ask all of you here today to support the summer jobs program, to ask your friends and neighbors to support it, to go back home and ask your employers to make a little extra effort; to do what you can to help me pass the funds to create the 700,000 jobs that the United States government should create this summer, so that together we can have this partnership. Because more than anything else, we have to give a future -- a future that our young people can believe in. We need to send them a message that here in America if you study hard and work hard, if you obey the law and contribute something to your community, you will be rewarded by your country. You can build a future from you own dreams. That has always been the promise of America. Together that's what this summer of challenge needs to be: a reaffirmation of the promise of America for so many young people to whom that promise has been an illusion. We can make it a reality. Thank you very much. (Applause.) END 11:45 A.M. EDT

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    "ocrText": "FOIA Number:\n2006-0465-F\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the William J. Clinton\nPresidential Library Staff.\nCollection/Record Group:\nClinton Presidential Records\nSubgroup/Office of Origin:\nSpeechwriting\nSeries/Staff Member:\nDavid Kusnet; Liz Bowyer\nSubseries:\nOA/ID Number:\n4517\nFolderID:\nFolder Title:\n[Press Clips] Thursday, April 15, 1993\nStack:\nRow:\nSection:\nShelf:\nPosition:\nS\n91\n5\n10\n1\nWithdrawal/Redaction Sheet\nClinton Library\nDOCUMENT NO.\nSUBJECT/TITLE\nDATE\nRESTRICTION\nAND TYPE\n001. schedule\nHome Phone Number. [partial] (1 page)\n04/15/1993\nP6/b(6)\nCOLLECTION:\nClinton Presidential Records\nSpeechwriting\nDavid Kusnet; Liz Bowyer\nOA/Box Number: 4517\nFOLDER TITLE:\n[Press Clips] Thursday, April 15, 1993\n2006-0465-F\nvz.268\nRESTRICTION CODES\nPresidential Records Act - 144 U.S.C. 2204(a)]\nFreedom of Information Act - 15 U.S.C. 552(b)]\nP1 National Security Classified Information |(a)(1) of the PRA]\nb(1) National security classified information [(b)(1) of the FOIA]\nP2 Relating to the appointment to Federal office [(a)(2) of the PRA]\nb(2) Release would disclose internal personnel rules and practices of\nP3 Release would violate a Federal statute |(a)(3) of the PRA)\nan agency |(b)(2) of the FOIA)\nP4 Release would disclose trade secrets or confidential commercial or\nb(3) Release would violate a Federal statute [(b)(3) of the FOIA]\nfinancial information [(a)(4) of the PRA]\nb(4) Release would disclose trade secrets or confidential or financial\nP5 Release would disclose confidential advice between the President\ninformation |(b)(4) of the FOIA]\nand his advisors, or between such advisors [a)(5) of the PRA\nb(6) Release would constitute a clearly unwarranted invasion of\nP6 Release would constitute a clearly unwarranted invasion of\npersonal privacy [(b)(6) of the FOIA]\npersonal privacy |(a)(6) of the PRA]\nb(7) Release would disclose information compiled for law enforcement\npurposes |(b)(7) of the FOIA]\nC. Closed in accordance with restrictions contained in donor's deed\nb(8) Release would disclose information concerning the regulation of\nof gift.\nfinancial institutions |(b)(8) of the FOIA]\nPRM. Personal record misfile defined in accordance with 44 U.S.C.\nb(9) Release would disclose geological or geophysical information\n2201(3).\nconcerning wells |(b)(9) of the FOIA]\nRR. Document will be reviewed upon request.\nWhite House\nNews Report\nTHE OF SEAL OF STATES THE ONITED\nKusnet, David\nWHO\n193 EOB\nThursday, April 15, 1993\nMorning Edition\nProduced by the News Analysis Staff\nRoom 162, OEOB (Ext. 7151)\nWHITE HOUSE NEWS REPORT\nThursday, April 15, 1993\nAP DAYBOOK\ni\n8:30 a.m.\nThe Labor Department releases weekly jobless\nclaims.\n8:45 a.m.\nThe Vice President addresses the National\nPerformance Review Orientation. 450 OEOB.\n9:30 a.m.\nThe National Head Start Association holds a news\nconference to update the media on Head Start\nquality and research. Grand Hyatt, 1000 H St. NW.\n9:45 a.m.\nCommerce Secretary Brown speaks at a town meeting\nat the U.S. Chamber of Commerce on NAFTA. 1615 H\nSt. NW.\n1:00 p.m.\nThe United Seniors Association holds a news\nconference to announce a national advertising\nprogram to defeat the President's proposed tax\nincrease on Social Security benefits. National\nPress Club.\n1:00 p.m.\nUnited We Stand America volunteers meet before\ndelivering Perot's \"First National Referendum, on\nGovernment Reform\" to every member of Congress.\nWest steps of the Supreme Court.\n3:00 p.m.\nThe President meets for photographs with the\nNational Ambassador for the March of Dimes, the\nMosaic Minstrels, and the Berwick, Pennsylvania\nBulldogs, the No. 1 high school football team in\nthe nation.\nTV NEWS ANALYSIS\nii\nWIRE REPORTS\niv\nNew York Times\n1\nWashington Post\n17\nWall Street Journal\n44\nWashington Times\n61\nUSA Today\n82\nLos Angeles Times\n95\nSeattle Post-Intelligencer\n127\nDes Moines Register\n128\nBoston Globe\n131\nLong Island Newsday\n137\nArkansas Democrat-Gazette\n139\nDetroit Free Press\n140\nChicago Tribune\n141\nAtlanta Constitution\n142\nSan Diego Union-Tribune\n143\n04/14/93\n20:26\n4 001\nNewsurse\nTV\nTrack\nPublished by U.S. Newswire, Washington, D.C.\n(202) 347-2770\nNETWORK HEADLINES\nWednesday\nApril 14, 1993\nABC World News Tonight\n1 Hillary Clinton Asked About Using Value Added Tax for Health Care\nBrit Hume\nWashington\n2:10\n2 Health Care Task Force Explores Why Health Care Costs Are So High\nGeorge Strait\nWashington\n2:10\n3 Study Says Two Drugs Combined Helps Women With Menopause\nPeter Jennings\nNew York\n0:20\n4 Blacks Demonstrate Violently in South Africa; Many Dead\nDon Kladstrup\nJohannesburg\n2:10\n5 Srebrenica Attached Again; Many Leaders Call For Arming Muslims\nPeter Jennings\nNew York\n0:11\n6 Trial Begins For The Men Who Mounted Last Years' Coup in Russia\nJohn Donvan\nMoscow\n2:00\n7 Japan Announces Russian Aid Package; US Offers More\nPeter Jennings\nNew York\n0:10\n8 George Bush in Kuwait For His First Visit\nPeter Jennings\nNew York\n0:10\n9 King Beating Trial Jury Goes Home Early Today ÀS Juror Falls Ill\nPeter Jennings\nNew York\n0:10\n10 Blacks In South Central Using Protest Tactics To Get Jobs\nRon Claiborne\nLos Angeles\n2:30\n11 Justice Department to Investigate Hangings in Mississippi Jails\nPeter Jennings\nNew York\n0:15\n12 Ohio Inmates Hang Bedsheets with Threat to Kill Hostages\nPeter Jennings\nNew York\n0:25\n13 Grand Jury Set To Indict Joey Buttafuoco on 19 Counts\nPeter Jennings\nNew York\n0:20\n14 Employers Pay For Injured Workers to Undergo Physical Therapy\nKen Kashiwahara\nSan Francisco\n4:30\n15 Lost Pliers Found in Space Shuttle Discovery's Rocketbooster\nPeter Jennings\nNew York\n0:20\n16 Fla. 's Hurricane Season Approaches, Last Year's Damage Remains\nMark Potter\nS. Dade County, Fla. 1:30\nCBS Evening News\n17 Civil Unrest, Rioting Breaks Out in South Africa\nAllen Pizzey\nSoweto\n2:30\n18 Juror Ill, Verdict Not Yet Reached in Rodney King Trial\nDan Rather\nNew York\n0:20\n19 LA Officials Worry, Prepare For Possible Violence Upon Verdict\nBill Lagattuta\nLos Angeles\n2:00\n20 Ohio Prison Standoff Continues, National Guard Troops Called In\nDan Rather\nNew York\n0:20\n21 Student Stabbed in Mass. High School, Suburban Community in Shock\nGiselle Fernandez\nNew York\n2:00\n22 Mencpausal Hormone Treatment May Reduce Women's Heart Disease\nBob Arnot\nNew York\n2:00\n23 Bartholomew Warns Serbs to Stop Their Terror in Former Yugoslavia\nDan Rather\nNew York\n0:10\n24 Horror Continues in Bosnia\nDan Rather\nNew York\n0:15\n25 Christopher Discusses Russian Aid With Japan, Clinton to Give More Aid\nDan Rather\nNew York\n0:15\n26 Yeltsin Threatens to Resign if He Loses Nationwide Referendum\nAnthony Mason\nMoscow\n2:00\n27 Income Tax Returns Are Slower Than Usual This Year\nRay Brady\nNo Location\n2:30\n28 Insurers Will Not Pay For Cancer-Treating Bone Marrow Transplants\nBcb Faw\nSan Francisco\n4:00\nNBC Nightly News\n29 Mass Demonstrations in South Africa Explode Into Violent Riots\nKeith Miller\nJohannesburg\n2:20\n30 Recent Serbian Attack on Civilians Leaves the World Outraged\nKate Aidy\nTuzla\n1:10\n31 President Clinton Feels Pressure To End Fighting In Bosnia\nJim Miklaszewski\nWashington\n2:10\n32 George Bush Arrives In Kuwait and Is Treated Like A Hero\nTom Brokaw\nNew York\n0:15\n33 Deliberations Delayed In LA Beating Trial As Juror Becomes Ill\nGeorge Lewis\nLos Angeles\n2:00\n34 Suspended Police Officer Kills Three Teenagers\nFred Briggs\nFoster, R.I.\n1:40\n35 Panel Tells Doctors To Aggressively Treat Depressed Patients\nRobert Hager\nWashington\n1:30\n36 White House Discusses Value Added Tax To Pay For Health Care\nTom Brokaw\nNew York\n0:15\n37 Prison Standoff Continues As Inmates Threaten Hostages\nSara James\nLucasville, Ch.\n1:40\n38 David Koresh Promises To End Standoff After He Writes Manuscript\nJim Cummins\nWaco, Tx.\n0:50\n39 Airplane Catches Fire and Makes Emergency Landing in Dallas\nTom Brokaw\nNew York\n0:10\n40 Membership in Labor Unions Is On Decline\nMike Jensen\nNew York\n3:10\n41 Cable Program Featuring Fish Is Popular With Viewers\nMike Leonard\nColumbia, S.C.\n2:30\n**Summaries of stories are available within 30 days of broadcast**\nCall U.S. Newswire at 202-347-2770 for information\nDate: 04/15/93 Time: 05:48\nTax Day\nValue-Added Tax Under Consideration\nG-7 Meeting Winds Down\n(Washington) -- Today's the day income tax forms are due, and\nthe Internal Revenue Service has a warning for folks who waited\nuntil the last minute. The I-R-S cautions that you should not think\nyou can come up with any fancy excuse to get out of filing, because\nit's heard them all before.\n(Washington) -- White House aides acknowledge that a value-added\ntax is among possibilities being considered as a way to pay for the\nClinton health-care plan. They say if the general sales tax turns\nout to be the answer, the president will ''explain and justify''\nits use.\n(Tokyo) -- The seven leading industrial nations, meeting in\nTokyo, are offering Russian President Boris Yeltsin more than 28\n(B) billion dollars in aid. As that meeting winds down, Japanese\nPrime Minister Kiichi Miyazawa (kee-chee mee-yah-zah-wah) travels\nto Washington, to meet with President Clinton tomorrow.\n(Los Angeles) -- The judge in the Rodney King beating trial in\nLos Angeles wants jury deliberations to resume today, after one\njuror went to the doctor yesterday to be treated for an undisclosed\nillness. If the juror remains ill, the trial could continue with\nonly eleven panelists, or an alternate could be called in, although\nthat would considerably lengthen proceedings.\n(Milwaukee) -- Milwaukee residents have the all-clear to drink\ntap water again after eight days of boiling it to kill a parasite\nthat made thousands of people ill. Meanwhile, a Wisconsin health\nofficial says some food products made with Milwaukee tap water may\nhave to be recalled nationwide.\nAPNP-04-15-93 0548EDT\nDate: 04/15/93 Time: 05:50\nWORLD NEWS SUMMARY AT 5:50 A.M.\n(APRIL 15) UPI - Discovery's astronauts are getting ready for tomorrow's\nlanding at Kennedy Space Center but they could stay in orbit until\nSaturday. Meteorologists are watching a cold front that's expected to move\nthrough\ncentral\nFlorida bringing rain and high winds that might prompt NASA\nto extend the eight day mission.\nDeliberations in the Rodney King civil rights are expected to resume today\nwith or without an ill juror. One member of the jury got permission to visit a\nfamily doctor for an unspecified illness. The jury has met for all or parts of\nfive days to weigh the evidence against four Los Angeles police officers\naccused of violating King's civil rights.\nIn a related development, Laurence Powell says he's relieved to learn L-A\nprosecutors plan to drop his pending state assault charge. The jury in last\nyear's state trial was deadlocked on the count against Powell. Prosecutors say\nre-trying him following the federal case would amount to double jeopardy.\nReports from Israel say a Chicago man has been sentenced to six months in jail\nfor smuggling cash to help Palestinians buy weapons. Mohammed Jarad and\nanother Chicago man, Mohammed Salah, were arrested in January on charges of\naiding the Hamas Islamic fundamentalist movement. Israeli prosecutors are\nstill working on their case against Salah.\nHaste makes waste\nis the old saying. And hurrying today could prove trouble\nfor Americans hurrying to beat the deadline for filing their tax returns. That\ndeadline is midnight tonight. The National Taxpayers Union warns harried\ntax-filers to double-check returns completed in a rush\nreminding\nthem\nthe\nsimplest errors can increase chances of an audit or slow a refund.\nPope John Paul the Second has directed nine Carmelite nuns to vacate their\nconvent at the former Nazi death camp in Auschwitz. The order is seen as\nlikely to help end a long-running dispute between Jews and the Roman Catholic\nchurch over the site. The bishop of the diocese where the convent is located\nsays the nuns and these are his words\n\"accepted the order with total\nsubmission to the will of the Holy Father\nSenate minority leader Dole will be in New Hampshire today\nto join Granite\nState Republicans taking shots at President Clinton's economic stimulus plan.\nDole's arrival fuels speculation he may be getting an early start on the 1996\npresidential sweepstakes. Texas Senator Phil Gramm visits New Hampshire\nSaturday. On the Democratic side, Jerry Brown will be there Monday.\nA Florida prison guard has been arrested on charges of helping her boyfriend,\na burglary suspect, escape after he smashed his way out of a patrol car.\nDeputy Barbara Anne Cooper, a five-year veteran, is accused of using her key\nto uncuff the suspect after he ducked into their motel room.\nJoan Crawford's Oscar for her role as ''Mildred Pierce'' in 1945 is going to\nthe auction block. An official with Christie's auction house says the gold\nstatuette could sell for between eight and 12-thousand dollars but will\nprobably go for more because ''it's the only Oscar by a top movie star to come\non the market so far\nAlthough several Oscars have changed hands, at least two at auction, such an\nevent is a rarity. That's because recent winners are required to promise they\nwon't sell Oscar.\nA California woman is having trouble convincing the federal government she's\nalive. A Medicare computer keeps sending bills to the ''estate'' of Vivian\nSmith\nmarked with a caution that the person insured is now deceased.\nSmith's husband knows what his wife is going through. A government computer\nerror changed his birth date from 1917 to 1971 and he was warned recently that\nhe'd failed to register for a possible future draft.\nMs. Rivlin noted that because state\nNEW TAX ON GOODS\nand municipal governments rely on\nCLINTON CONSIDERS\nsales taxes to help finance their budg-\nets they would likely oppose a Federal\nIS WEIGHED TO PAY\nvalue-added tax, SO \"there would have\nVALUE-ADDED TAX\nto be an accommodation to state and\nlocal governments.'\nAsked about the Administration's\nFOR HEALTH CARE\napparent change of position on the val-\nue-added tax, Mr. Stephanopoulos\nContinued From Page Al\nsaid: \"I think what the President's\nconcern IS to make sure he gets the\nbest health-care proposal possible.\nAN INDIRECT LEVY ON SALES\nthat the tax was now one of several\nHe's concerned at making sure that\nbeing weighed by the task force. But he\nthey have the most thorough process\nsaid that no firm proposal had been\nfor examining all the possible alterna-\npresented yet to Mr. Clinton.\ntives. If a decision is made to go for-\nWhite House Officials Studying\nThe President is not expected to un-\nward with something like that, it's cer-\na National Value-Added Tax\nveil the components of his health-care\ntainly something the President will ex-\nplain and justify, but no decision has\npackage, aimed at providing every\nbeen made along those lines.\"\nof Type Used in Europe\nAmerican a minimum level of health\nTalk of a value-added tax is certain\nA-1\ninsurance, until mid-May.\nto complicate Mr. Clinton's efforts to\n\"They have examined the possibility\nsell his jobs bill. Representative Robert\nof a VAT,\" said Mr. Stephanopoulos.\nMichel of Illinois, the House minority\nBy THOMAS L. FRIEDMAN\n\"Has it been presented to the Presi-\nleader, announced plans today for a\nto The New York Times\ndent? Has he made a decision? No, he\nseries of town hall meetings on Satur-\nWASHINGTON April 14 - The\nhas not.\"\nday to generate opposition to the Presi-\nWhite House said today that it was\nOne reason the White House is so\ndent's plan to stimulate the economy,\nconsidering a value-added tax - an\nreluctant to concede that such a tax is\nwhile Mr. Clinton argued that the new\nindirect form of sales tax - to help pay\nunder discussion is the fear it will\nspending was essential to \"give a little\ndivert attention from the President's\nfor President Clinton's health-care\ngoose\" 10 the economy and insure that\nefforts 10 sell his $19.5 billion jobs pack-\nyoung people will have summer jobs.\npackage. But 11 insisted that the Presi-\nage, which has been trapped in the\nSpeaking today to a conference on\ndent had not made any final decision on\nSenate by a Republican filibuster. Part\nsummer jobs, co-sponsored by the De-\nsuch a sweeping new proposal to raise\nof the Republican argument against\npartments of Labor and Education and\nrevenue.\nthe bill is that Mr. Clinton is already\nattended by many mayors, Mr. Clinton\nPresident Clinton first broached the\ncalling for 100 many new taxes. Any\ncontended that while his stimulus pack-\nidea of a value-added tax, which is\ntalk of a value-added tax would under-\nage was only \"a small part of a big\nimposed on goods and services at each\ncut White House efforts to focus public\nbudget\" It would nevertheless cut the\nstage of production but ultimately paid\nattention on Republican opposition to\nunemployment by half a percent and\nfor by the consumer, in February, then\nthe jobs bill.\ngenerate 700,000 part-time jobs this\nbacked away, calling it a \"radical\nNevertheless, shortly after Mr. Ste-\nsummer for young people.\nchange\" that could only be looked at in\nphanopoulos spoke, Ms. Rivlin told a\n\"I don't have all the answers, but I\nyears ahead.\ngathering of the National Manufactur-\ners Association that a value-added tax\ndo know this, doing nothing is not the\nBut in the past two days, the Health\nanswer,\" said Mr. Clinton, whose aides\nwas very much on the table.\nand Human Services Secretary, Donna\n\"A VAT is clearly a possible candi-\nhave been making available letters by\nE. Shalala, and Deputy Budget Direc-\ndate,\" she said, apparently unaware of\nvarious Republican mayors and gover-\nnors who have broken ranks and en-\ntor Alice M. Rivlin said in separate\nhow the White House was trying to play\nstatements that such a tax was now\nit down. \"I think a VAT has a good deal\ndorsed the package.\nbeing considered to pick up some of the\nto recommend it.\"\ncost of Mr. Clinton's health-care plan,\nMs. Rivlin acknowledged that such\nestimated at $50 billion 10 $100 billion a\ntaxes, unlike progressive income taxes,\nfall most heavily on the poor and mid-\nyear.\ndle class. Therefore, such a tax \"must\nNo Decision Yet\nbe designed so as not to be painful to\nThe White House communications\nlower-income groups,\" she said.\nAdministration officials said the rea-\ndirec George Stephanopoulos, con-\nson such a tax is now under active\nfirmed Ms. Shalala's statement, in an\nconsideration is because the proposed\ninterview published in USA Today, say-\ntax increase on alcohol and cigarettes\nmg, This is something that is being\nbeing looked at by the health policy\nlooked at. but no decision has been\ntask force would not be sufficient to\nmade.\npay for the universal health coverage\nThe effect of a value-added tax is\npackage being drawn up.\nvirtually the same to the consumer as a\nPopular in Europe\nretail sales tax, since the ultimate buy-\nIn the interview in USA Today, Ms.\ner eventually absorbs the cost, but the\nShalala said: \"We've talked a lot about\nmany European countries with VAT's\nsin taxes. Certainly, we're looking a\nhave found them to be harder to evade.\nVAT tax.\"\nMr. Stephanopoulos's acknowledge-\nShe went on to say: \"But all of this\nment came during a heated question-\nwould have to be phased in, and what\nand- answer-period with reporters in\nwe first must do is have the mecha-\nwhich he initially did all that he could\nnisms in place to slow down existing\nto avoid confirming that a value-added\nspending.'\nvalue-added taxes are used in more\ntax was being considered by the Ad-\nthan 50 countries, particularly in Eu-\nministration. In doing so, he contradict-\nrope. They are usually applied by tax-\ned a statement by Mr. Clinton on Feb.\ning the total value of sales of all busi-\n19 that such a tax \"IS not something\nnesses, but allowing businesses to\nthat is now under consideration; if we\nclaim a credit for taxes paid on their\nstart considering it, I'll tell you.\"\npurchases of raw materials. The net\nCaught in a situation in which he\neffect is that only sales to the consumer\neither had 10 say that Secretary Sha-\nend up being taxed. According to the\nlala did not know what she was talking\nCongressional Budget Office, a 5 per-\ncent value-added tax would increase\nabout. or that the President was not\nthe Treasury's net revenues by about\naware what the task force headed by\n$68 billion in fiscal 1995 and by about\nhis wife, Hillary, was considering it, or\n$417 billion through 1998.\nthat the President had changed his\nIf applied as a straight percentage of\nmind, Mr. Stephanopoulos conceded\nthe price, a value-added tax would af-\nfect all goods equally. But some Euro-\nContinued on Page A17, Column I\npean VAT's exclude food, medicine and\nhousing as well as many financial serv-\nices, for which the tax is hard to calcu-\nlate.\nTHURSDAY,\nAPRIL\n15,\n1993\nTIMES,\nClinton Seeking More Money for Spying, Aides Say\nBy DOUGLAS JEHL\nmade in the budgets of the Central\nministration officials said today, is to\nSpecial 10 The New York Times\nIntelligence Agency and other spy\nbe devoted to launching one or more\nWASHINGTON, April 14 - Presi-\nagencies.\nspy satellites that can take the place of\ndent Clinton has asked Congress for\nThe new Director of Central Intelli-\nseveral older ones, saving money in the\nauthority to spend even more money on\ngence, R. James Woolsey, had signaled\nfuture.\nspy agencies, satellites and other intel-\nearlier that the Administration would\nWhile some members of both parties\nligence activities in the 1994 fiscal year\noppose sharp immediate cuts in intelli-\nhave expressed support for such an\nthan it allotted for 1993, Congressional\ngence spending. But the request for an\neffort, other lawmakers have privately\nand Administration officials say.\nincrease has surprised some lawmak-\nvoiced some distress at the proposal\nThe request is hidden in classified\ners because Mr. Clinton had promised\nfor an increase in the post-cold-war\nsections of. the Defense Department\nto slash intelligence spending by $7\nintelligence budget. The request is ex-\nbudget that on the whole reflects Mr.\nbillion over four years.\npected to be the subject of a sharp\nClinton's plans for significant cuts in\nNearly all of the new spending, Ad-\ndebate next week when members of the\nmilitary spending.\nHouse and Senate Intelligence Com-\nTHE NEW YORK TIMES\nmittees meet behind closed doors to\nBut the Administration has conclud-\nis available for home or\nreview the budget.\ned that at least a short-term increase in\noffice delivery in most\nthe intelligence spending is needed be-\nmajor U.S. cities. Please\nWhile the size of the nation's vast\ncall this toll-free number:\nfore similar deep reductions can be\n1-800-631-2500 ADVT.\n354613\nContinued n Page A16, Column 4\nClinton Seeking More Money for Spying, Aides Say\nContinued From Page Al\nagencies to consolidate programs and\n'This increase is just not going to\nmake deep cuts in the years ahead.\nhappen,\" the Democratic lawmaker\nThey also argue that Mr. Clinton has\npredicted. \"They're going to get cut\nintelligence budget remains an official\nnot violated his budget-cutting pledge\nseverely.\"\nsecret, Administration and Congres-\nbecause his request represents a sub-\nEven Representative Dan Glickman,\nsional officials disclosed today that it\nstantial reduction from the figure\nthe Kansas Democrat who is chairman\nwould total about $28 billion if the in-\nPresident George Bush had planned to\nof the House Intelligence Committee,\ncrease requested by Mr. Clinton is ap-\nspend in 1994. Mr. Bush had set aside\nsaid in a recent interview that he had\nproved. They said the previous esti-\n$19.0 billion for the C.I.A., the National\nnot yet decided whether to support the\nmates putting the figure at $29 billion\nSecurity Agency, the National Recon-\nWhite House request. \"I'm not going to\nhad been exaggerated.\nnaissance Office and other national in-\nbe thrilled about an increase,\" Mr.\nOf the total, the officials said Mr.\ntelligence programs.\nGlickman said, \"but we'll have to see\nClinton had proposed that $17.8 billion\nBecause Congress last year autho-\nwhere the increases are coming from.\"\nbe set aside next year for the C.I.A. and\nrized about $400 million more for intel-\nFiguring Out the Budget\nother agencies whose mission is to pro-\nligence than it finally appropriated, an\nFurther evidence of the proposed\nvide policy makers with information\nAdministration official said last night,\nincreases is in a public version of Mr.\nabout the world. That request repre-\nthe White House intends to portray its.\nClinton's 1994 Defense Department\nsents an increase at nearly double the\nproposal as a freeze, not an increase,\nbudget request.\nrate of inflation from this year's final\nonce inflation is taken into account.\nWhile the unclassified document\nappropriation of about $17.0 billion,\nThe new Administration hopes such\nleaves blank the spending requests for\nthey said.\narguments and party loyalty might\nspecific intelligence programs, simple\nblunt any Democratic impulse to re-\ncalculations show that a research\nAt the same time, Congressional offi-\nnew battles that party members fought\ncials said Mr. Clinton proposed only\nbudget includes a request for a $150\nand won with the Bush Administration\nminor cuts in the other component of\nmillion increase to be divided among\nto cut intelligence spending. But some\nthe intelligence budget, the military\nthe Defense Intelligence Agency, the\nCongressional Democrats have al-\nprograms intended to gather the infor-\nNational Security Agency and the new\nready made clear that they intend to\nmation used in battle. They said that\nCentral Imagery Office, which handles\nfight the new request, even though it\ntotal remained about $10.1 billion.\nrequests for spy satellite photographs.\ncomes from a Democratic President.\nBy comparison, after accounting for\nA separate Air Force procurement\nAn influential Democratic lawmaker\nbudget shows a $570 million increase\ninflation, Mr. Clinton proposed a 5 per-\nwho spoke on condition of anonymity\ncent reduction in overall military\nfor a category designated only as \"se-\nsaid in a recent interview that the\nlected activities,\" a category that ex-\nspending.\nrequest for more money for spy agen-\nperts outside government said was\nAdministration officials have told\ncies showed that the new Administra-\nused to disguise money set aside for the\nmembers of Congress that the upward\ntion \"just doesn't get it\" in terms of\nC.I.A. and the National Reconnaissance\nblip in intelligence spending will allow\ngauging opposition to the proposal.\nOffice, which operates spy satellites.\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\n2\nAn I.R.A.\nBrisk Sales\nDiscontent on the Line\nRebound\nIn line of customers a couple \"You days\na discontent was brewing. have\nNet increase\nFor I.R.A.'s\nago, a certain age and you A.\nin individual\nreach nothing 10 fall back on,\" said Linda\nConklin. A succession of temporary\nretirement\nThis Year\nand spells of unemployment bor-\naccounts\njobs left her with little, SO she to\ninvesting in mutual funds.\nhave rowed the money from her parents what\nstart we'll have left in Social Security?\"\nan I.R.A. \"Who knows\n4 million\nContinued From Page Al\nshe said. 'Probably won't be there.\" the\npolished granite information salesman counter.\nAdvancing in line, she reached\n3\ntemporary workers, usually lacking re-\nHow old are you?\" a\ntirement plans at their jobs, are among\nthose who can still take full or partial\nasked. \"Excuse me?\" she said, frowning.\ntax deductions for I.R.A. contributions\nWell, if you have more than 10\nof up to $2,000. For those covered by\ntill retirement the sales- at\n2\ncorporate retirement plans, with in-\nyears began, then halted. Glancing leather\ncomes above certain limits - about\nher and creaseless skin, he funds\nman fashionably slouching started\nhalf of all workers - only the earnings\njacket over by recommending some\n1\non their I.R.A. accounts remain tax-\nfree until withdrawn.\nfor decades-long gains.\nThe new rules on deductions initial-\nIvars and Sandra Slokenbergs,\n28, were meanwhile just com- from\nly curtailed the growth of I.R.A.'s,\n0\nwith fewer than 700,000 mutual fund\nboth the transfer of money I.R.A.'s,\n'82\n'84\n'86\n'90\n'92\naccounts added in 1988. But a new\npleting taxable accounts to new\ninvestment income accumu-\nsurge in interest, many financial ex-\nSource: Investment Company Institute\necutives say, has come as those born\nwhere lates tax-free. A warm winter vaca- car\nor a down payment on a the\nafter the World War 11 recognize that\ntion have left them without\nThe New York Times\ndecisions made now will help deter-\nmight to fulfill the savings plans June.\nmine how comfortably they pass the\nmoney made since their marriage last to\nI.R.A.'s Surging\nfinal decades of their lives.\n\"If spend the money, you have said.\n\"The boomers are beginning to em-\nbrace the new frugality,\" said Don\npay you tax on it,\" Mr. Slokenberg\nAs More Worry\nUnderwood, a vice president for re-\nRules Have Tightened\ntirement planning at Merrill Lynch.\nThe Slokenbergs, like many young\nAt the seminars he offers around the\nstill qualify to make tax-de- the\nAbout Pensions\ncountry, he said, about 30 percent of\npeople, ductible contributions. Before\nthe participants are under 40, twice\nas many as five years ago. \"They are\n1986 could contribute as much as covered\ntax year, virtually everyone $2,000\nchanging from being a group of\ntax-free. Since then, anyone take\nBy ALLEN R. MYERSON\nspenders to being a group of savers.\"\nThe new savings are going primari-\nby full a or partial deduction only is\nretirement plan at work can if their\nFor Linda Wollman, the perils of\nly to mutual funds and brokerage\na after certain adjustments, or\ndarting through Park Avenue's rush-\nfirms. They heavily invest the money\nincome, less than $50,000 for joint filers\nhour pile-ups on her Rollerblades were\nin portfolios of stocks, whose high\n$35,000 for individuals.\nnothing compared with the risk of get-\nlong-range returns tend to compen-\nMost investment advisers say that in-\nting caught short of cash when she\nsate for the risks.\ntax savings and investment\nretires in, oh, about the year 2029. So\nBanks' Low Rates\nthe are greatest for those who con- tax\nwith today's deadline for I.R.A. contri-\ncome at the beginning of the until\nThe business had been dominated\ntribute But few get around to it more\nbutions looming, on Tuesday evening\nby banks and savings and loans, but\nthe rates on certificates of deposits\nyear. they are signing their returns\nshe rolled into the Fidelity Investments\noffice at Park and 51st Street in Man-\nhave fallen to dismal levels. Mrs.,\nthan a year later.\nhattan to drop off a check and an\nWollman, her own I.R.A. still at\nIndividual Retirement Account form:\nChemical Bank, said she was too em-\nfor her husband.\nbarrassed to reveal her interest rate\nbut swore she would hunt for an alter-\nFearful of losing their jobs, unwilling\nnative.\nto count on pensions or Social Security,\nThe current I.R.A. marketing war\nmany, like Mrs. Wollman, are turning\nhas brought fusillades of pamphlets\nInventory-Sales Ratio\nto I.R.A.'s with greater enthusiasm\nand guides, with advertisements and\nthan at any time since Congress sharp-\npress releases blaring about ways to\nTotal month-end business\nly limited the deductibility of contribu-\navoid a penniless retirement. Fees\ninventories divided by total monthly\nbusiness sales, seasonally adjusted.\ntions made after the spring of 1987.\nhave faded.\nCharles Schwab, the nation's larg-\nJob-Change Flux\n1.56\nest discount brokerage, has dropped\nSeveral mutual funds and brokerage\nits $22 annual fees for accounts of at\n1.54\nfirms say that today will conclude their\nleast $10,000, and promises current\n1.52\nstrongest I.R.A. season ever. The in-\ninvestors that the fees will never re-\n1.50\ncreases in the number of I.R.A. mutual\nturn. Schwab added 321,000 I.R.A. ac-\ncounts last year, a 69 percent gain to\n1.48\nfund accounts and the money invested\n786,000.\n1.46\nin them set records last year, accord-\nFor retirement accounts only, Fi-\ning to the Investment Company Insti-\n1.44\ndelity has waived its 3 percent sales\ntute, a mutual fund trade group. The\ncharges on many of its stock funds.\n1.42\nyear-end total of 24.3 million accounts\nThe company's mutual fund sales of\n1.40\nwas up by more than 3.7 million from\nmore than $1.5 billion in the first\nSOND\nJFMAMJJASOND\nJF\nthe end of 1991.\nthree months of 1993 surpassed the\n1991\n1992\n76.\nMuch of this money IS coming from\n$1.2 billion recorded in the first quar-\npeople rolling over their payouts from\nter of 1987 and the $600 million during\nBusiness Inventories and Sales\nretirement plans when they change, or\nthe same period last year.\nBillions of dollars. seasonally adjusted.\nlose, their jobs. Corporate layoffs and\nToday is the last chance for making\nFeb.\nJan.\nI.R.A. contributions for the 1992 tax\nthe evaporation of benefits for those\nInventories\n$854.05 $851.02\nyear. The Fidelity center on Park\nSales\nwho remain have forced more workers\n585.42\n581.78\nAvenue has remained open an extra\nto take retirement planning into their\nhour and a half, until 7 P.M., this week\nSource: Commerce Department\nown hands.\nto handle a rush of new business.\nThe New York Times\nThe growing ranks of part-time and\nContinued on Page D3, Column 1\nTHE NEW YORK TIMES. THURSDAY. APRII, 15 1002\n3\nWhite House Reviewing Trade Pact Compliance\nsome unfair trade practices and did\nincluded clauses calling for automat-\nBy KEITH BRADSHER\nnot always follow through on its\nKantor wants\nic review every 6 to 12 months, and\npromises, but he refused to be spe-\nmany trade agreements with other\nSpet int 10 The New York Times\ncific.\nWASHINGTON April 14 - The\nresults on his desk\ncountries have similar clauses, she\nSanctions Possible\nsaid\nClinton Administration is comprehen-\nIn addition, much of the trade agen-'\nsively reviewing whether Japan and\nBy law, Mr. Kantor can demand\nbefore Clinton\ncy's annual report to Congress on\nother countries have complied with\nthat foreign countries comply with\nforeign trade barriers consists of up-\ntrade agreements with the United\nprevious trade agreements and im-\nmeets Miyazawa.\ndates on past trade pacts, she said.\nStates and is prepared to take unilat-\npose sanctions if they refuse\nMr. Kantor said that trade disputes\neral action to insure compliance,\nActing under section 301 of the 1974\nwould be discussed when President\nTrade Act, Carla A. Hills, Mr. Kan-\nMickey Kantor, the United States\ntor's predecessor, intervened last\nury Department, the National Eco-\nClinton met Mr. Miyazawa on Friday\ntrade representative, said today.\nnomic Council and the National Secu-\nand that Japanese officials had delib-\nMr. Kantor discussed the review a\nyear in a farm trade dispute, threat-\nening 200 percent taxes on imports of\nrity Council, all of which participate\nerately played down these issues in\nday before Prime Minister Kiichi\nEuropean white wines to force the\nin the interagency trade process.\ntheir news conferences in prepara-\nMiyazawa of Japan is scheduled to\nMr. Kantor said this afternoon he\ntion for the meeting.\narrive in Washington for talks with\nEuropean Community to reduce soy-\nwas \"stunned\" to find when he took\nPresident Clinton. Trade is expected\nbean and rape-seed subsidies.\nMr. Kantor, a former lawyer for\noffice that the Government did not\nMany Issues Involved\nto be a major issue in the talks.\nmigrant farm workers who speaks\nhave legal cases under way against\n\"Of course they want to,\" he said.\nMr. Kantor said he had told his\nstrongly of the need 10 help blue-\nany foreign country for failure to\nThe fact is the Japanese are trying\nsubordinates to have the results of\ncomply with previous agreements.\nto take the issue away from areas in\ncollar workers hurt by imports, has\nthe review on his desk \"by the close of\nemerged as the Administration's\nWhat? No Violations?\nwhich they have not been as forth-\nbusiness\" Thursday. The secret re-\ncoming as they had promised and we\nview began soon after he took office.\nstrongest advocate of aggressive\n\"My question was, You mean to\nwould have liked, and that covers a\ntrade actions. But he has encountered\nHe also said that Japan engaged in\ntell me there's not one country in the\nlarge number of sectoral and struc-\nconsiderable resistance at the Treas-\nworld violating any aspect of a trade\ntural issues which involve trade.\"\nagreement in a substantial way?' and\nMr. Noboru said Japan had met the\nof course the answer was, 'Of course\nobligations of its trade agreements.\nthat's not correct, Mr. Kantor said.\nSome Congressional Democrats\nMr. Kantor also said today that\nhad discussed privately last month\nbusiness practices in several sectors\nthe possibility of introducing legisla-\nof the Japanese economy violated su-\ntion aimed at Japan's trade surplus if\nper 301, a 1988 amendment to the 1974\nMr. Miyazawa's visit did not produce\nTrade Act. The provision, which ex-\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nimmediate progress in trade rela-\npired in 1990, requires his agency to\ntions. But Representative Richard A.\nidentify unfair foreign trade prac-\nGephardt, the Missouri Democrat\ntices and either negotiate their elimi-\nande House majority leader, said in\nnation or impose trade sanctions ac-\nan interview that Congress was ready\ncording to a fixed timetable.\nto wait for the Administration to com-\nPresident Clinton said in the cam-\nplete its review of American policy\npaign he would push 10 renew the\ntoward Japan.\nprovision and Mr. Kantor reaffirmed\n'I don't think they've finished it\ntoday the Administration's commit-\nyet, and I think that's O.K.,\" he said.\nment to reviving it.\n\"It's such an important policy and\nJapanese officials have never ac-\nthere shouldn't be a rush to judg-\ncepted section 301 or super 301, con-\nment.\"\ntending that the United States should\nBut Mr. Kantor also accepted the\nrely on international mediation of\ntrade disputes instead. Responding\ncriticism of Japanese officials that a\ntoday to Mr. Kantor's remarks, Seii-\nlong-term narrowing of the United\nchiro Noboru, the economics minister\nStates' persistent trade deficit with\nat the Japanese Embassy, said: \"It is\nJapan would require basic changes in\nnot for the United States to determine\nthe American economy.\nthat the trade practices of Japan or\n\"Our ability to educate our people,\nany other country are illegal.\ninvest in infrastructure, stimulate\nCompliance Monitored\nour economy in the short run, invest\nin our economy in the long run, get\nErin M. Endean, who was the direc-\nhealth care and energy costs under\nfor of Japanese affairs and then the\ncontrol and do something with the\nstaff director for Mrs. Hills, said the\nstructural deficit will have a major\nBush Administration had continually\nimpact on trade and macroeconomic\nmonitored foreign compliance with\nissues,\" he s;aid. \"The sectoral is-\ntrade agreements, although no sec-\nsues with Japan are important but\nnon 301 cases were pending when\nyet not nearly as critical as the Presi-\nMrs. Hills left office.\ndent's economic program or our abili-\nAll the bilateral trade agreements\n1v 10 fashion a reform of the health\nnegotiated with Japan in recent years\ncare system.\"\nWhite House Never Promised a Rose Garden\norganization, even though both Sena-\nbad word for specific members.\n\"1 was mostly bemused,\" he said.\ntors attended the university.\nRepresentative Gary Condit, a Cali-\n\"They must think my vote is cheap if\nWhite House officials deny playing\nfornia Democrat who voted against the\nthey think being invited to a breakfast\nsuch retaliatory games. But they have\nstimulus package, said he has never\nis going to make a difference.\"\nBy RICHARD L. BERKE\non the condition of anonymity. \"And\nare on a list of not-to-help.\nrecounted\nadmitted playing hardball when war-\nbeen punished and he hoped the ru.\nAmong the others not invited to the\nranted.\nSpecial 10 The New York Times\nwe're more inclined to help people who\nthe Geren aide.\nmors were not true. \"If they keeping\nbreakfast, according to White House\nWASHINGTON, April 14 - A warn-\nhave been friendly to us.\"\nAnd there was the recent case when\nThe officials say the White House\nscore, that's pretty silly,' Mr. Condit\nofficials, was Representative Bill Sar-\nvisitors office has a set number of tour\ning to members of Congress who vote\nFor instance, the office of Represent-\nMr. Clinton invited the University of\nsaid \"It's not going to change how\npalius, Democrat of Texas. Officials\ntickets it allocates to Congressional\npeople vote in Congress.\"\nagainst President Clinton's big legisla-\native Pete Geren, a Texas Democrat\nAlabama football team, acclaimed as\nsaid that when they drew up the guest\noffices. \"The tour tickets is a non-\nThe reward-punishment system is\ntive proposals: Don't go looking for\nwho voted against the President's pro-\nlist they did not include Mr. Sarpalius\nnational champion after its Sugar Bowl\npolitical process, and it's just going\nnothing new. As President George\nbecause they did not expect him to vote\nsmall favors from the White House.\nposals to stimulate the economy, had\nvictory over Miami, for a White House\nforward,\" said George Stephanopoulos,\nBush's chief of staff, John H. Sununu\nfor the legislation. But he did.\nWhite House officials said that House\nsought approval months ago for 80\nceremony, along with the state's two\nthe White House communications di-\nwas known for slights like canceling a\n\"They owe us a breakfast, then,\"\nand Senate Democrats who are viewed\nsenior citizens from his district to tour\nSenators, both Democrats. Senator\nrector. \"We have honored lots and lots\nCongressman's plans to use a Presi-\nsaid Phil Duncan, Mr. Sarpalius's chief\nas disloyal for voting against the Presi-\nthe White House. But after the vote, he\nRichard C. Shelby, who voted against\nof requests from members of Congress\ndential box at the Kennedy Center.\nof staff.\ndent's economic progam should not ex-\ngot word that only 40 would be allowed.\nthe President's budget for the 1994\non both sides of the aisle. We will\nThe Clinton Administration has not\npect the White House to honor special\nThe aide who handled the matter for\nfiscal year, got one ticket for the event;\ncontinue to do that.\"\nbeen quite as blatant. Representative\nrequests for extra tickets for constitu-\nMr. Geren recalled getting the word\nSenator Howell Heflin, who voted for\nBut other White House officials said\nDavid Mann, Democrat of Ohio, said he\nMore national news\nents' tours through the Rose Garden or\nfrom someone in the White House Con-\nthe resolution, got a fistful.\nthat often lawmakers seek additional\nwas not invited to a breakfast Mr.\npictures with the President.\ngressional liaison office. \"She told me\nOne White House official said Mr.\ntickets, and when that happens, the\nClinton held for House Democrats the\nappears on page B7.\n\"You know who your friends are,\"\nthat, 'As far as you're concerned, you\nHeflin got more tickets because he was\nCongressional liaison office and other\nmorning after the Congressman voted\nsaid one White House official, speaking will never get a group tour because you the contact for the university's alumni officials often weigh in with a good or against the economic package.\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nEconomic Scene\nThe Labor Secretary's Spin\nOn Jobs Data Lifts Eyebrows\ngain in years - a politically incon-\nBy SYLVIA NASAR\nvenient fact for an Administration\nfighting for a big new jobs program.\nAt a time when the economic out-\nThe commissioner's testimony was\nlook is confused and the President's\nfairly upbeat. In contrast, Mr. Reich\neconomic stimulus package faces op-\nmaintained that while there were job\nposition, it should come as no sur-\ngains in February, they did not make\nprise that the Clinton Administration\nthe stimulus program redundant be-\nis eager to put its own spin on politi-\ncause \"90 percent of the new jobs that\ncally charged economic statistics.\nhave been created are in involuntary\nMost administrations do.\npart time, that is, the contingent work\nBut a recent episode at the Labor\nforce.)\nDepartment has touched off much\nThis claim took many of the econo-\nclucking within the economics com-\nmists in his agency by surprise. As it\nmunity and within the department\nturns out, there was no way for any-\nitself.\none to know what proportion of the\npayroll jobs were part-time, since the\nAn Inconvenient Fact\nLabor Department simply does not\nOn March 5, just half an hour be-\nask businesses whether their payroll\nfore the acting commissioner of the\njobs are full- or part-time when it\nBureau of Labor Statistics was due to\nsurveys them each month.\ntestify on February employment sta-\nBut Mr. Reich and his chief econo-\ntistics, Labor Secretary Robert Reich\nmist, Lawrence Katz, a labor econo-\nheld his own special news conference.\nmist from Harvard University, de-\nThe February figures showed that\nthe economy had created 365,000 new\njobs in February, the biggest monthly\nContinued on Page D2\nEconomic Scene\nLabor Secretary as a Spin Doctor\ncould have been all new full-time\nwalking away from reality when it\nContinued From First Business Page\nworkers,\" the internal memo said.\ndoesn't fit the script,\" Mr. Roach\n\"We are unable to explicitly link the\nsaid. \"It's unconscionable for a Cabi-\nrived the 90 percent statistic by going\ntwo movements.\"\nnet level department at a critical\nto a second Government survey, the\nWhat many of these economists\njuncture.'\nso-called household survey by the\nand statisticians recognized is that\nSome economists, however, said\nCensus Bureau, which asks individ-\nthe part-time data are extremely vol-\nthe episode reminded them of the\nuals whether they worked in the pre-\natile from month to month, and that\ntime in 1971, during the Nixon Admin-\nvious month and, if so, whether they\nthe rise in February was a blip that\nistration, when the Labor Secretary\nworked full time or part time.\nfollowed a sharp move in the opposite\ncanceled the traditional briefing by\nBut that survey produces totally\ndirection the previous month.\nthe economist in charge of the the\nseparate data, and conclusions drawn\nAs the department's internal mem-\nmonthly employment report. Instead,\nfrom that data cannot be applied to\norandum put it: \"The trend over ap-\nthe secretary issued his own rosy\nthe business payroll survey; for a\nproximately the last year and a half\ninterpretation of some disappointing\nvariety of reasons, trends in one do\nhas been flat, at a level of about 6.4\nstatistics. At that time, in 1971, much\nnot necessarily track trends in the\nmillion even with periodic sharp\nlike today, unemployment was prov-\nother.\nmonthly fluctuations (like this month\ning particularly stubborn.\nBut that is what Mr. Reich and Mr.\nfor instance).\"\nMr. Katz, for one, now admits that\nIn any case, Mr. Reich did not use\nKatz did. They took the one-month\nthe calculation was indeed an error.\nthe same approach this month, when\njump in the number of Americans\nwho said they were employed part\n\"The notion that a lot of jobs created\nthe March jobs data were released.\ntime because they could not find full-\nin this recovery are temporary and\n\"Using his methodology, the econ-\ntime jobs, and applied it to that\npart time is an accurate perception,\"\nomy would have created 255,000 full-\nmonth's increase in the total number\nhe said. But in using the 90 percent\ntime jobs in March,\" said Mr. Roach\nof Americans who said that they had\nfigure, he continued, \"we made a\nof Morgan Stanley, pointing out that\njobs in February.\nmistake.'\nsuch an inference would have been\nTheir 90 percent figure was picked\nEconomists outside the Labor De-\nridiculous, though no more so than\nup by major news organizations and\npartment were also quick to attack\nthe contrary claim of the prior\nwidely repeated as fact for weeks\nthe Labor Secretary's calculations.\nmonth.\nafterward.\n\"How come they didn't say in the\nIndeed, an April 2 public statement\nprevious month that there was a big\nVolatile Data\nreleased by the Bureau of Labor Sta-\ndecline and this was a monthly blip?\"\ntistics sets the record straight from\nThe fact that the Labor Secretary\nasked Marvin Kosters, an economist\nthe Labor Department's perspective.\nhad put out such a statistic created a\nat the American Enterprise Institute.\ninvoluntary part-time employment, it\nfuror among the department's career\nwho had been chosen by President\nsaid, had bobbed around a flat trend\neconomists and statisticians. They\nBush to be the next Commissioner of\nfor a year and a half. And 25 percent\ndrafted an internal memorandum -\nthe Bureau of Labor Statistics had he\n- not 90 percent - of the payroll jobs\nfor use in answering telephone que-\nwon re-election.\ncreated in the last year or so had\nries - to explain why one could not\nAnd Steven Roach, an economist at\nsprouted in temporary help firms\nconclude what Mr. Reich had con-\nMorgan Stanley, called the Labor\nAnd finally, It said, despite no further\ncluded from the data.\nSecretary's approach \"shenani-\ngains on either the unemployment 01\n'The rise in total employment may\ngans.'\njobs-creation fronts in March, \"the\nhave been largely persons working\npart time for economic reasons, or it\n\"It smacks of cooking the numbers\ngeneral trend in recent months has\nwhen it's convenient to do so, but\nbeen one of slow improvement.\"\nTHE\nNEW\nYORK\nTIMES.\nTHURSDAY\nPRII\n1007\nJustice Dept. to Investigate Mississippi Jail Deaths\nMississippi, Ms. Reno said that if no\nwrongdoing is uncovered, the Justice\nDepartment would study whether the\ndeaths indicate a pattern. But the de-\nBy DAVID JOHNSTON\n\"How could that many people die?\"\nshe said.\npartment later issued a clarification,\nSpecial to The New York Times\nMs. Reno asked. She said the civil\nOn another topic, she said she had\nsaying Ms. Reno did not mean to imply\nrights division would review each of\nthat she had any specific evidence that\nWASHINGTON, April 14 - Attorney\nencouraged Federal prosecutors con-\nthe number of deaths indicated wrong-\nGeneral Janet Reno has ordered an\nthe deaths in the past six years.\nducting the investigation into the finan-\ndoing.\ninvestigation of 46 hanging deaths in\nDepartment officials confirmed ac-\ncial affairs of Representative Dan Ros-\nThe deaths, of whites and blacks,\nMississippi jails since 1987 to deter-\ncounts of remarks by the Attorney\ntenkowski, the Illinois Democrat who is\ndrew national attention after the hang-\nmine whether there is evidence of\nGeneral to several news organizations\nchairman of the House Ways and\ning of 18-year-old Andre Jones in a jail\ncriminal wrongdoing by the authori-\non Tuesday\nMeans Committee, to pursue the case\nin Simpson County in south-central.\nties, Justice Department officials said\nMs. Reno also said she hoped citizens\n\"full steam ahead.\" Her comments fol-\nMississippi. Mr. Jones was the son of\ntoday.\nin Los Angeles would accept the ver-\nlowed the department's demand for the\nEsther Quinn, president of the Jackson\nHer directive evoked the era of the\ndict in the trial of four white police\nresignations of United States Attorneys\nchapter of the National Association for\n1960's and 1970's, when the Justice De-\nofficers charged with violating the civil\naround the country, including Jay B.\nthe Advancement of Colored People.\npartment's civil rights division tried to\nrights of Rodney G. King, a black mo-\nStephens, the former chief Federal\nAt the time, local and Federal offi-\ncombat violence against blacks in the\ntorist who was beaten after being\nprosecutor here, who said that his re-\ncials determined that Mr. Jones had\nDeep South by enforcing laws that dat-\nstopped in a high-speed chase. \"When\nmoval could interfere with an investi-\ntaken his own life, but a pathologist\ned from Reconstruction but that had\nthe jury speaks, it is my earnest hope\ngation of Mr. Rostenkowski.\nhired by his family contended that the\nnot been fully applied.\nthat people will accept this verdict,\"\nIn commenting on the jail deaths in\ndeath was a homicide.\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nDemocrats Retain House Seat in Mississippi\nSpecial to The New York Times\nJACKSON, Miss., April 14 - Demo-\nson made no overtures to white voters\ncrats held on to the Second Congres-\nand traded heated attacks with Mr.\nsional District in Tuesday's runoff elec-\nDent.\ntion to fill the seat that Mike Espy left\nThe district, mostly bordering the\nto become Secretary of Agriculture.\nMississippi River, includes some of the\nBennie Thompson, a 44-year-old\nnation's poorest counties along with a\nblack county supervisor from Bolton, a\nheavy slice of urban voters on the\nJackson suburb, rode a surge in black\nwestern side of Jackson. Fifty-eight\nvoting to defeat Hayes Dent, a white\npercent of its voting-age population is\nRepublican who was an aide to Gov.\nblack.\nKirk Fordice. Mr. Thompson polled\nEight candidates - seven Demo-\n71,701 votes, or 55 percent. to 58,544\ncrats and one Republican — competed\nvotes, or 45 percent, for Mr. Dent.\nin the March 30 election. which saw Mr.\nRegarded as far more confrontation-\nDent place first, with 34 percent of the\nal than Mr. Espy, the state's first black\nvote, and Mr. Thompson second. with\nCongressman this century, Mr. Thomp-\n28 percent.\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\n8\nRaises at Fed\nAre Criticized\nWASHINGTON, April 14\n(AP) - The Federal Reserve,\nthe Government agency\ncharged with controlling infla-\ntion, has given its employees\nraises nearly two-thirds great-\ner than last year's inflation\nrate, the chairman of the House\nBanking Committee said today.\nIn a letter of complaint to\nPresident Clinton, Representa-\ntive Henry B. Gonzalez, a Tex-\nas Democrat, said the Fed staff\nmembers who report to the\nboard of governors in Washing-\nton would get 4.8 percent raises\nthis year. Employees who work\nfor the Fed's 12 regional banks\nwould get raises of 4.3 percent.\nThose rates compare with an\ninflation rate of 2.9 percent in\n1992. Wages and salaries na-\ntionally, as measured by the\nLabor Department's Employ-\nment Cost Index, rose just 2.7\npercent last year. Other Fed-\neral employees received a 3.7\npercent increase in January.\n\"There is a certain irony\nabout the nation's chief infla-\ntion fighters giving themselves\nraises greater than the rate of\ninflation,\" Mr. Gonzalez wrote.\nHe has introduced legislation\nthat would bring the Fed under\ngreater scrutiny.\nMr. Gonzalez also com-\nplained that 12 senior Fed staff\nmembers in Washington would\nearn $161,800 this year, consid-\nerably more than Cabinet offi-\ncers, who receive $148,400, and\nAlan Greenspan, the chairman\nof the Federal Reserve, who\nwill earn $133,400.\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nA Simple 'Guilty' or 'Not'?\nNot for Beating Trial Jurors\nSpecial to The New York Times\nLOS ANGELES, April 14 - A juror\nonly ones not allowed to discuss the\nin the police beating case fell ill today,\ncase. Now that they are talking, the\ncutting short the fifth day of delibera-\nrest of the city is in a state of limbo\ntions over what on its face appears to\nwaiting for the outcome of their discus-\nbe a simple matter: Whether to mark\nsions.\n\"guilty\" or \"not guilty\" in the blank\nThe anonymous jury has been in a\nspaces on four verdict forms - one for\nsurreal time warp, sequestered in an\neach officer charged in the beating of\nundisclosed location and shielded from\nRodney G. King.\nnews accounts about the case. Escort-\nBut a measure of the complexity of\ned round-the-clock by armed Federal\nthe jury's task is the time it has con-\nmarshals, they use courthouse eleva-\nsumed so far. To help answer the ques-\ntors off-limits 10 the public and come\ntions, the jurors have considered the\nand go in blue vans with tinted windows\ntestimony of 61 witnesses, more than\nto keep their faces hidden.\n130 exhibits and a long interpretation of\nThe extreme measures reflect the\nthe law from the trial judge.\nsense that the jurors are on trial along\nThe juror who fell ill was taken to a\nwith the officers. Many blacks say ac-\nprivate doctor escorted by a marshal.\nquittals will further erode their faith in\nA city ambulance was waiting outside\nthe justice system, but the officers'\nthe courthouse before Federal District\nlawyers urged jurors not to give in to\nJudge John G. Davies announced the\nthe \"howl of the mob and the waffling\ninterruption 10 a courtroom packed\npoliticians,\" as Harland W. Braun, the\nwith prosecutors, the defendants, their\nlawyer for Officer Briseno, phrased it\nlawyers and reporters who had gath-\nin his closing arguments on Saturday.\nered at the request of the judge.\nFocusing on Four Jurors\nJudge Davies did not provide any\ndetails of the juror's identity or illness.\nDefense lawyers said they have been\n\"I can't tell you what the nature of the\nfocusing their hopes on four of the\nproblem is,\" he said. \"There's a re-\nwhite jurors, based on their back-\nquest to see a family doctor this after-\ngrounds, answers to questionnaires\nnoon.\"\nand demeanor in court. They are a\nmother of three leen-agers who works\nSpeculation and Shudders\nin a family-owned business outside Los\nThe judge said the juror was expect-\nAngeles; a burly, bearded man in his\ned to be well enough to rejoin the group\n30's or 40's who said he worked in a\nwhen deliberations resume on Thurs-\nbusiness whose customers included po-\nday. But the episode stirred specula-\ntion that a verdict had been reached,\nsending shudders through an already\nedgy city.\nIt also focused attention on the three\nalternate jurors who followed the trial\nand are sequestered along with the\nother jurors but have not participated\nin the deliberations. If the sick juror\ncannot continue on the case, an alter-\nnate can join the panel. Legal experts\nsaid deliberations could also continue\nwith 11 jurors if all parties agree.\nJurors in the officers' trial on state\ncharges a year ago in Simi Valley had\nto decide on 11 counts among the four\ndefendants, including charges of as-\nsault. excessive force under color of\nlaw, accessory after the fact and filing\nfalse police reports.\nThe largely white, middle-class pan-\nel from suburban Ventura County de-\nliberated for seven days, but the fore-\nwoman said that by the end of the first\nday they had agreed on not-guilty ver-\ndicts on all but one count, on which they\nultimately failed to reach a unanimous\nverdict.\nAssociated Press\nFewer Counts, New Hurdles\nSgt. Stacey C. Koon arriving at\nThere are fewer counts in this trial,\ncourt yesterday in disguise.\nbut the complexity of the law and the\njury's racial and demographic diversi-\nty are likely 10 create hurdles not faced\nlice officers; a former security guard\nby the Simi Valley jurors.\nin his late 20's who said he once used a\nSgt. Stacey C. Koon, Officers Laur-\nbaton to subdue a bottle-wielding as-\nence M. Powell and Theodore J. Bri-\nsailant, and a welder who served in the\nseno and former Officer Timothy E.\nDanish military in the late 1950's.\nWind could be imprisoned for 10 years\nThe jury picked as its foreman a\nand fined $250,000 if convicted of violat-\nwhile professional in the real estate\ning Mr. King's civil rights in the video-\nbusiness in his 40's who said he has two\ntaped beating after his arrest on March\nneighbors who are law-enforcement of-\n3, 1991.\nficers. During jury selection, he said he\nOfficers Powell and Briseno and Mr.\nwas \"not surprised\" by the officers'\nWind are charged with crimes rooted\nacquittals in Simi Valley.\nin the Fourth Amendment's prohibition\nBesides four other whites, two men\nagainst \"unreasonable searches and\nand two women, there are three minor-\nseizures.\" Sergeant Koon, who did not\nity jurors. One is a black man, a former\nbeat Mr. King but who supervised the\nmarine who appears to be in his late\nother officers, is charged with allowing\n60's and who said he has lived in the\nthe beating to proceed in violation of\nWatts section of Lo Angeles for 25\nthe 14th Amendment's right not to be\nyears. Another is a Hispanic man who\ndeprived of liberty without due process\nappears to be in his 30's who said he\nof law.\nhad never seen the videotape of the\nFederal prosecutors in this case also\nbeating. The third is a black woman, a\nface a different hurdle. While jurors in\npostal worker in her 20's who has a 4-\nSimi Valley only had to decide whether\nyear-old son.\nShe seemed distracted and bored\nexcessive force was used, jurors in the\nFederal trial must go one step further\nduring much of the trial, but her atten-\nand find that the officers did SO willful-\ntion picked up as the trial drew to a\nly and not, for instance, by accident or\nclose. Last week she wiped away a tear\nin self-defense.\nduring a poignant moment in the clos-\ning argument of Michael P. Stone, the\nFor seven weeks, the jurors were the\nattorney for Officer Powell.\nTHE NEW YORK TIMES, THURSDAY. APRIL 15. 1993\n10\nWithstanding Shocks, Dow Rises\nponent stocks rose that amount.\nANTHONY RAMIREZ\nTHE FAVORITE STOCKS\nIndexes with a greater variety of\nstocks were mixed. The New York\nPerformance of the 15 issues with the\nThe stock market continued its\nStock Exchange's composite index\nmost shareholders.\nbumpy march yesterday toward a\n1993\ndipped 0.12, to 247.73, and the Stand-\nDow Jones industrial average of\n%\n%\nard & Poor's 500 index declined 0.56,\n3,500, now tantalizingly close.\nStock\nLast\nChg.\nChg.\nChg.\nto 448.66. The Nasdaq composite in-\nCheered by falling interest rates, the\ndex rose 0.11, to 673.94.\nA.T.&T\n583/4\n-\n1/2\n-\n0.8\n+\n15.2\nmarket held on to most of the gains of\nAmeritech\n773/4\n+\n1/8\n+ 0.2\n+ 91\nBig Board trading volume was\nTuesday, amid some nasty surprises.\nBell Atlantic\n541/4\n1/8\n0.2\n+\n5.9\n257.3 million shares, less than Tues-\nThe most striking development\nBellSouth\n551/2\n+ 8.0\nday's volume of 286.7 million shares.\nwas a huge selloff late in the day of\nExxon\n685/8\n+\n1/8\n+\n0.2\n+12.3\nGeneral Electric\n943/8\n+\n11/2\n+\n16\n+104\nImpact of a Slow Recovery\nWal-Mart Stores stock, perhaps indi-\nGeneral Motors\n405/8\n+\n1\n+ 2.5\n+260\ncating the tentativeness of the mar-\nA rafter of earnings reports affect-\nGTE\n361/8\n+\n1/8\n+ 04\n+ 43\nket's rise. Advancing stocks narrowly\nI.B.M.\n49\n3/8\n08\n2.7\ned individual stocks yesterday. The\nled decliners, by 1,021 to 874.\nNynex\n897/8\n-\n1/8\n0.1\n+\n72\nslow recovery was viewed by some\nPacific G & E\n343/4\n+ 4.9\nRetailing analysts interpreted a\ninvestors as good for stocks because\nPacific Telesis\n481/4\n+\n1/8\n+\n0.3\n+ 8.7\nWal-Mart executive's sales projec-\nof low inflation, and by other invest-\nSears\n537/8\n+\n1/8\n+\n0.2\n+18.4\ntions as a warning of slower growth.\nSouthwestern Bell\n781/2\n+\n3/4\n+\n1.0\n+\n6.1\nors as bad for stocks because of de-\nWal-Mart dropped 13/4, to 27½, hover-\nUS West\n427/8\n+\n1/8\n+\n0.3\n+117\npressed earnings.\ning close to its 52-week low of 25%\nLow interest rates could help banks\nAt 14 million shares, trading in Wal-\nand finance companies, but a weak\nMart stock was nearly quadruple the\npoints at 3,455.64. The Dow Jones\neconomy would hurt metals, paper,\nprevious day's level.\ntransportation average advanced\nchemical and major retailing stocks,\nThe company said it was \"per-\n0.41, 10 1660.93, setting another\ncertainly part of the reason for the\nplexed\" because nothing had really\nrecord, its fourth in five trading ses-\nWal-Mart slide.\nchanged at the company.\nsions.\nAlso, RJR Nabisco Holdings, the\nAmong the Dow industrials, only\nsecond-most active stock on the Big\nNear a Benchmark\nfour stocks, including the Minnesota\nBoard, continued to decline. On Tues-\nThe Dow Jones industrial average\nMining and Manufacturing Company\nday, the company announced that the\nrose solidly throughout the day, surg-\nand the Goodyear Tire and Rubber\ndividend would be smaller than previ-\ning as much as 19 points in the early\nCompany, rose at least $1. In the\nously announced once its stock is split\nafternoon, before closing up 11.61\ntransportation index, only two com-\ninto separate shares linked to the\nperformance of its food business and\nto its more turbulent tobacco busi-\nness. RJR Nabisco shares closed at\n53/4, down 1/4.\nThe Digital Equipment Corpora-\ntion, after reporting a third-quarter\nloss, saw its stock rise 1½, to 415/8.\nDigital's chairman said the company\nwas making progress. The B.F. Good-\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nrich Company, which also reported a\nloss, saw its shares drop by 11/₈, to\n467/8. Analysts had expected a profit\nfor the company.\nThe share prices of diaper makers\ngyrated after Procter & Gamble, the\nmarket leader, said Tuesday it would\nstart a price war. P.& G.'s stock rose\n¹/₈, to 481/4 Its rival Kimberly-Clark\nfell 17/8. to 51½ The big loser, though,\nwas Paragon Trade Brands Inc.,\nwhich makes discount diapers. Its\nstock posted the biggest decline on\nthe Big Board, falling 5 points to 25 1/4.\nInventories\nClimbed 0.4%\nIn February\nFifth Gain in a Row\nIs Sign of Slow Demand\nWASHINGTON, April 14 (Reuters)\n- Stocks of unsold goods climbed for\na fifth straight month in February,\nthe Commerce Department said to-\nday, providing new evidence that con-\nsumer demand may be faltering.\nThe department said inventories at\nthe manufacturing, retail and whole-\nsale level grew during February by\nfour-tenths of I percent, to a season-\nally adjusted $854.05 billion. It was\nthe biggest monthly increase since an\nidentical rise last July.\nThe inventory-to-sales ratio held\nsteady at a 10-year low of 1.46 for the\nthird consecutive month. That means\nit would take 1.46 months to exhaust\ninventories at the current sales level.\nThe department also revised its\nreport for January inventories, say-\ning they rose three-tenths of 1 percent\ninstead of being unchanged as previ-\nously reported.\nUnsold stocks of goods have risen\nsteadily since October. Some of the\nincrease late last year might have\nreflected stockbuilding before a\nstrong Christmas sales season, ana-\nlysts said, but there have also been\nindications that consumer demand\nhas weakened this year.\nSign of Sluggishness\nRising inventories can signal an\neconomic slowdown. If unsold goods\npile up, businesses cut their orders\nand factories are forced to reduce\nproduction.\nThe rise in February inventories\nwas concentrated at the retail level,\nwhere stocks rose by 1 percent, to\n$265.1 billion. The increase at the\nmanufacturing and wholesale levels\nwas minimal.\nThe department also reported that\nsales at all levels of business in-\ncreased six-tenths of 1 percent to a\nseasonally adjusted $585.4 billion in\nFebruary. While both manufacturers'\nand wholesalers' sales were higher\nthan in January, retail sales de-\ncreased three-tenths of 1 percent, to\n$168.7 billion.\nRetail sales are crucial to the econ-\nomy because spending by consumers\non goods and services fuels about\ntwo-thirds of national economic activ-\nity.\nOn Tuesday, the Commerce De-\npartment said that consumers cut\nspending in March by ) percent, the\nsteepest monthly decline in more\nthan two years. Analysts said the\nreport indicated that economic\ngrowth was slowing.\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\n12\nSOUTH AFRICA RIOTS\nRiots Across South Africa Leave 7 Dead\nLEAD TO 7 DEATHS;\nontinued From Page Al\nBlacks are angry\nTENSIONS RUN HIGH\nhe doesn't want to fight,\" Raseleti Ko-\nat whites;\nmane. an unemployed 38-year-old from\nSoweto. said of Mr. Mandela. 74. \"We\nblacks are angry\nwant 10 fight.'\nPOLICE SHOOT 3 IN SOWETO\nThe Government and the African Na-\nat blacks.\ntional Congress, which began the week\nwith an extraordinary show of concert-\ned action aimed at heading off violence.\nDespite Mandela's Plea, Rallies\nended the day with an exchange of\ndent of a fully democratic South Africa.\nbitter recriminations.\nMr. Mandela. dressed in a presidential-\nto Remember a Slain Black\nWhat happened in South Africa to-\nlooking charcoal suit. arrived to a thun-\nday cannot be tolerated in a civilized\nderous, orchestrated roar, and basked\nLeader End in Violence\ncountry.\" President F.W. de Klerk\nin the praise of several warm-up\nsaid as he announced he was sending\nspeakers.\nmore police officers and soldiers to\nBut with more than 10.000 people\nBy BILL KELLER\nreinforce the 23,000 already keeping\noverwhelming a facility built for about\nSpeciallo The New York Times\nwatch.\nhalf that number, and thousands more\nSOWETO. South Africa, April 14 A\nA.N.C. leaders accused the police of\npushing at the entry gates. the organ-\n\"unprovoked brutality\" in the Soweto\nnationwide day of mourning for the\nizers cut the program short and rushed\nshooting. and said the Government\nslain black leader Chris Hani burst out\nMr. Mandela to the microphone.\nshould be blamed for disorders that\nAssociated Press\nof control today, as angry young blacks\nmay come in the days ahead. The con-\nJanusz Walus, a Polish immi-\n'I Understand,' He Said\nrioted through several cities in defi-\ngress has scheduled another march on\ngrant accused of killing the\nance of pleas for order.\nSaturday and a funeral for Mr. Ham on\nMany in the audience were thrilled\nCommunist leader Chris Hani.\nIn the worst single incident, panicky\nMonday.\nby Mr. Mandela's presence, but many\npolice officers here fired without warn-\nNeither side, however, suggested\nmore had come yearning for catharsis,\ning into a throng milling outside the\nthat the day's hostilities should impede\nand they did not get it. As the black\nmain police station. killing three and\ntalks on the first universal elections.\nleader plodded through an appeal for\nMr. Mandela, in fact, said he expect-\nnonviolence, promising \"certain posi-\ncritically wounding five, and replenish-\ned Mr. Hani's death to accelerate the\nlive developments' that might ensue\ning the rage that black leaders hoped\ndismantling of white rule, though the\nZIMBABWE\nonly direct consequence of the killing\nMOZAMBIQUE\nfrom Mr. Hani's death, many young\nwould be spent by this day of protest.\nlisteners muttered impatiently. Sev-\nAcross the country, crowd-control\nhas been a one-week postponement of\neral times he stopped to demand order\nSOUTH\nmarshals deployed by the African Na-\nthe talks, which had been due to re-\nAFRICA\n\"I understand your anger,\" he said.\ntional Congress struggled to hold angry\nsume next Monday.\nJohannesburg\nThe African National Congress IS a\nyouths in check, and often failed. In\nBusiness groups said most of South\ngovernment in waiting, and we want\nCape Town, Durban, Port Elizabeth,\nAfrica's 6 million black workers\nNAMIBIA\nPretoria\nyou to remember that as members of\nPietermaritzburg and other cities, ral-\nskipped work today, observing a one-\nthe government in waiting, you have\nday strike as part of the Hani com-\nSoweto\nSWAZILAND\nlies turned into rampages of looting,\nthe responsibility to behave orderly\nmemoration.\nburning and clashes with the police.\nLESOTHO\nand with dignity.'\nFocus on Mandela\nRiot in Cape Town\nPletermaritzburg\nThen he abruptly dismissed the mul-\nThe African National Congress mo-\nCape\ntitude for a planned march to the police\n\"No peace! War! War!\" rioters\nbilized many hundreds of monitors who\nTown\nstation.\nchanted in Cape Town, where two peo-\nhave in the past proven adept at chan-\nple were killed and a train was de-\nneling huge crowds away from trouble,\nJournalists and other witnesses at\nMiesvand\nrailed. The scores of injured in Cape\nand Mr. Mandela appeared repeatedly\nthe police station said the crowd was\non television to implore the public to\nThe New York Times\nTown included a prominent black lead-\npreparing to disperse when an ar-\nabjure violence.\nOfficers fired into a crowd outside\nmored police vehicle roared back and\ner who was punched in the face as he\nBy the time Mr. Mandela arrived at\nthe main police station in Soweto.\nforth through the crowd. followed by a\ntried to restrain rioters.\nthe rally in Jabulani Amphitheater in\npolice wagon. When a few young men\nOrganizers of the day's events said\nSoweto, there were already ominous\nshowered stones on the vehicles, the\nthe casualty toll - at least seven peo-\nundertones in the generally festive\nlice accuse of killing Mr. Hani, is a\nwitnesses said, a line of about 30 police,\nple were reported killed and hundreds\nmood. Young men waved sticks and\nPolish immigrant.\nmost of them white, opened fire with\nhurt - could have been much worse,\nspears, a few carried guns, and the\nThe rally was clearly intended to\ntear gas, shotguns and pistols.\ngiven the hundreds of thousands who\nplacards held aloft included calls for\ntransform this anger into political en-\nThe police insisted later that they\ntook part and the pitch of emotion after\nretribution and anti-Polish slogans.\nergy, focused on Mr. Mandela, the man\nhad been attacked and had been forced\nthe killing Saturday of Mr. Hani, the\nJanusz Jakob Walus. the man the po-\nmany assume will be the first presi-\nto fire.\nCommunist Party leader and a popular\nfigure in the African National Con-\ngress.\nBut for the congress it was an em-\nbarrassing display of the gap between\nthe moderate, compromise-minded\nleadership and the unruly, disaffected\nyoung men of the townships.\nScorn in Soweto\nAt a dangerously overpacked amphi-\ntheater in Soweto, Nelson Mandela, the\nA.N.C. president, labored to explain the\nneed for discipline and nonviolence to a\ncrowd that surged against the stage\nand rumbled impatiently throughout\nhis speech.\nHis rambling remarks were inter-\nrupted by the pop-pop of firecrackers\nmeant to simulate gunfire and by jeers\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nwhen Mr. Mandela mentioned his bar-\ngaining partners in the governing\nwhite National Party.\n\"We can all see that he's too old and\nContinued on Page A3, Column I\n13\nIt's Clinton's Turn to Bargain With Japan\nBy Clyde V. Prestowitz Jr.\nIn theory, stimulating Japan's econ-\nwood and fish. Japan's chief exports\ners. Yet U.S. Customs Service audits\nomy is supposed to increase imports\nto us are cars, VCR's, telecommuni-\nshow that less than half of the materi-\nand reduce the trade imbalance. In\ncations equipment and machine tools.\nals and labor that Japanese auto\nWASHINGTON\nfact, a succession of similar proposals\nThis means high-wage jobs for them\nplants in the U.S. use is American.\nA harmonious and pros-\nover the last decade has not solved the\nand lower-wage jobs for us.\nThe Japanese should also manufac-\nperous era in U.S.-Ja-\ntrade problem. Japan's demand for\nMr. Clinton has staked his Presi-\nture more here in other industries:\npan relations could\nforeign goods is so unchanging that\ndency on revitalizing the economy\nTheir electronics companies produce\nstart tomorrow if\neven a huge stimulus has yielded only\nand creating jobs. To do so without\nvirtually no VCR's in America - the\nPresident\nClinton\na small increase in imports. If past\nbusting the budget, he must reduce\nworld's biggest VCR market - and\nplays his cards right\ntrends hold, Mr. Clinton's proposed\nthe trade deficit. For every $1 billion\nmany Japanese TV sets are marked\nduring the visit of Japan's Prime\n$19.5 billion package to stimulate our\nreduced from that deficit, the U.S. will\n\"assembled\" not \"made\" here.\nMinister, Kiichi Miyazawa. The first\nown economy, which has run into a\ngain 20,000 to 30,000 jobs. The Japa-\nIf Mr. Miyazawa wants to give a\nstep must be for both sides to avoid\nCongressional roadblock, would cre-\nnese say the deficit stems from the\nreal gift, he could reaffirm his com-\nthe traditional omiyage, or gift, of\na\nate more U.S. imports of Japanese\ngap between our low savings rate and\nJapanese stimulus package. For\ngoods than Mr. Miyazawa's $100 bil-\ntheir high rate. That IS only partly\nnearly 50 years. Japanese prime min-\nlion program would yield in Japanese\ntrue. Japan has trade surpluses with\nisters have come to Washington bear-\nimports of U.S. goods.\nSouth Korea and Singapore, which\ning gifts that usually have been prom-\nInstead, Mr. Clinton should tell Mr.\nhave higher savings rates than Japan.\nHe needs real help\nises to stimulate their own economy.\nMiyazawa that friction would best be\nMore than half the deficit is in\navoided by addressing the problem's\nautos and auto parts. Yet the U.S. is\nfrom Miyazawa.\nClyde V. Prestowitz Jr. is president of\nreal source: the makeup of trade.\nnow the low-cost location for auto\nthe Economic Strategy Institute, a\nAfter airplanes and their parts, our\nproduction, mainly because our parts\npolicy research organization.\ntop exports to Japan are maize, raw\nproducers are the lowest-cost suppli-\nmitment to George Bush last year 10\ndouble Japan's purchases of U.S. auto\nparts. Some Japanese officials have\nsaid recently that it wasn't a commit-\nment, just a gesture of good will.\nMany Bush Administration officials\ninsist otherwise. Mr. Miyazawa could\nclear up the confusion.\nEven better, he could assure Presi-\ndent Clinton that Japanese auto com-\npanies will reach their proclaimed goal\nof having all cars produced at their\nTHE NEW YORK TIMES, THURSDAY, APRIL 15, 1993\nU.S. factories contain at least 75 per-\ncent U.S.-made parts and that electron-\nics companies will do the same. More\nimportant, he could assure us that\nthese factories will start exporting to\nJapan - and not just token amounts\nfor political purposes. After all, the\nU.S. is a low-cost production location\nand the Japanese companies are losing\nmoney or facing reduced profits, so\nreverse exports are good business.\nThe Japanese have pressed for a\npermanent seat on the U.N. Security\nCouncil. President Clinton should let\nMr. Miyazawa know that if Japan\nhelps break the General Agreement\non Tariffs and Trade deadlock by\nunilaterally reducing all its tariffs to\nzero, everyone would view Japan's\ncandidacy more favorably.\nMr. Miyazawa could do wonders for\nJapan's image if he announced that\nhis Government would raise the for-\neign share of products it bought. U.S.\ncomputer makers have more than 40\npercent of the commercial computer\nbusiness in Japan but less than 10\npercent of the Government market.\nIn short, if Mr. Miyazawa and Presi-\ndent Clinton want to cement a produc-\nlive relationship, they would do well to\naddress sales and jobs; otherwise,\nthey will increase the odds that in four\nyears another Japanese prime minis-\nter will be bringing another stimulus\nomiyage to another President.\n14\nA Simple 'Hai' Won't Do\nN\nA\n¥EA\nBy Reiko Hatsumi\nTOKYO\nhen a TV an-\nW\nnouncer here\nreported Bill\nClinton's\ncomment to\nBoris Yeltsin\nthat when the Japanese say yes they\noften mean no, he gave the news with\nan expression of mild disbelief.\n(1 am back to TV.) Then he decides to\nHaving spent my life between East\ndestroy his newly acquired brother-in-\nand West, I can sympathize with\nlaw and besieges his castle. Being\nthose who find the Japanese yes un-\nhuman, though, the attacking warlord\nfathomable. However, the fact that it\nworries about his sister and sends a\nsometimes fails to correspond pre-\nspy to look around. The spy returns\ncisely with the Occidental yes does\nand the lord inquires eagerly, \"Well, is\nnot necessarily signal intended de-\nshe safe?\" The spy bows and answers\nception. This was probably why the\n\"Hai,\" which means yes. We sigh with\nannouncer looked bewildered, and it\nrelief thinking, \"Ah, the fair lady is\nmarks a cultural gap that can have\nstill alive!\" But then the spy contin-\nMatthew Martin\nserious repercussions.\nues, \"To my regret she has fallen on\nI once knew an American who\nimplication, the latter part of this\nworked in Tokyo. He was a very nice\nestimable thought IS often left unsaid.\nman, but he suffered a nervous\nIs there, then, a Japanese yes that\nbreakdown and went back to the U.S.\nSome tips for\ncorresponds to the Western one? 1\ntearing his hair and exclaiming, \"All\nthink so, particularly when it is ac-\nJapanese businessmen are liars.\" I\nthe President.\ncompanied by phrases such as \"so-\nhope this is not true. If it were, all\ndesu\" (It is so) and \"soshimasu\" (1\nJapanese businessmen would be driv-\nwill do so). A word of caution against\ning each other mad, which does not\nthe statement, \"I will think about it.\"\nseem to be the case. Nevertheless,\nsince tragedies often arise from mis-\nher sword together with her husband.\"\nThough in Tokyo this can mean a\nHai is also an expression of our\nwillingness to give one's proposal se-\nunderstandings, an attempt at some\nexplanation might not be amiss.\nwillingness to comply with your in-\nrious thought, in Osaka, another busi-\nA Japanese yes in its primary con-\ntent even if your request is worded in\nness center, it means a definite no.\ntext simply means the other person\nthe negative. This can cause compli-\nThis attitude probably stems from\nhas heard you and is contemplating a\ncations. When 1 was at school, our\nthe belief that a straightforward no\nreply. This is because it would be\nEnglish teacher, a British nun, would\nwould sound too brusque.\nrude to keep someone waiting for an\nsay, \"Now children, you won't forget\nWhen talking to a Japanese person\nanswer without supplying him with\nto do your homework, will you?\" And\nIt is perhaps best to remember that\nan immediate response.\nwe would all dutifully chorus, \"Yes,\nalthough he may be speaking English,\nFor example: a feudal warlord\nmother,\" much to her consternation.\nhe is reasoning in Japanese. And if he\nmarries his sister to another warlord.\nA variation of hai may mean, \"I\nsays \"I will think about it,\" you\nunderstand your wish and would like\nshould inquire as to which district of\nReiko Hatsumi, a novelist, is author\nto make you happy but unfortunately\nJapan he hails from before going on\nof \"Rain and the Feast of the Stars.\"\nJapanese being a language of\nwith your negotiations.\n15\nThe Taxman Experiments\nEligible taxpayers in Ohio can meet tonight's\nthe Pentagon. It won't be fully in place until 2008.\nfiling deadline by punching in the required informa-\nThe telephone filing project, now in its second\ntion on a touch-tone telephone. It's an experiment by\nyear, is limited to taxpayers who use the simple\nthe Internal Revenue Service to streamline income\nForm 1040EZ and have the same address as last\ntax collection, like the electronic filing system origi-\nyear; all they do is follow the instructions of a\nnally tested in 1986 and now handling some 14\nrecording that tells them what numbers to enter\nmillion returns a year.\nand, of course, to mail in what they owe. Of the\nDespite these gee-whiz advances, the I.R.S. has\n126,000 Ohioans who filed by phone last year, most\nfallen behind in collaring delinquents and is launch-\nwere students or young singles on starting-job in-\ning yet another experiment - private debt collec-\ncomes.\ntors. That's not as ominous as it sounds. They won't\nElectronic filing still has to go through a com-\nbe \"tax farmers\" like the heavy-handed agents of\nmercial transmitter, but the I.R.S. is working to-\n18th-century French kings, who got a piece of\nward the day when returns can be filed from a home\nwhatever they collected. Rather, private collection\ncomputer. The benefits are obvious; last year's\nagencies will help find delinquents who have\nerror rate on electronic returns was 2.8 percent,\ndropped out of sight, and will handle routine notifi-\ncompared with 18 percent for paper ones.\ncations. They will not do high-pressure collecting;\nThe overwhelming majority of returns - more\nthat's the Government's job.\nthan 100 million - are still filed by mail and\nAll these test runs are efforts by the Revenue\nprocessed by systems that aren't up to the work-\nService to get out from under the two billion pieces\nload, despite extensive computerization already.\nof paper that are handled every year, part of a $23\nVoluntary compliance is the bedrock of America's\nbillion overhaul involving the largest computer\ntax system. A creaky I.R.S. creates problems for\nmodernization program ever undertaken outside\nitself by frustrating taxpayers who want to comply.\n16\nFDR: FDIC, NRA, SEC-But No FBI Lag\nith two weeks to go before we arrive at\nhis time since he was presiding over a largely\nW\nPresident Clinton's 100th day and with in-\nfriendly takeover. Clinton, however, is allowing a\nevitable comparisons to come, here's how\ngreat chunk of the government machinery to be run\nhistorian Arthur M. Schlesinger Jr. described\nby his enemies or people not loyal to him.\nFranklin D. Roosevelt's first 100 days.\nAnother Rhodes Connection\n\"Congress and the country were subjected to a\npresidential barrage of ideas and programs unlike\nIn the all-Rhodes-lead-back-to-Chinton category.\nA very key member of the Joint Staff at the Penta-\nanything known to American history,\" Schlesinger\ngon these days is Rear Adm. Dennis C. Blair, dep-\nwrote in 1958.\nuty director of the office of Force Structure, Re-\nIn that first 100 days, Roosevelt \"sent 15 mes-\nsources and Assessment.\nsages to Congress, guided 15 major laws to enact-\nHe's doing the \"bottom-up\"\nment. delivered 10 speeches, held press confer-\nreview or downsizing study\nences and cabinet\nto establish the contours of\nmeetings twice a\nthe country's post-Cold War\nweek, conducted talks\nmilitary needs and struc-\nwith foreign heads of\nture.\nstate, sponsored an\nTurns out Blair is yet\ninternational confer-\nanother Rhodes scholar\nence, made all the\nwho was at Oxford with\nmajor decisions in\nClinton. Blair was at the\nTHE NEW REGIME\ndomestic and foreign\nPentagon before Clinton\npolicy and never dis-\ncame to town, however.\nplayed fright or panic\nSpeaking of the Penta-\nand rarely even bad temper.\"\nGEN. COLIN L. POWELL\ngon, it's been widely re-\nMatch that, Bill.\nported that Clinton personally asked Joint Chiefs\nClinton does have one thing in common with his\nChairman Colin L. Powell to stay on to the end of\nmore recent predecessors. In April 1981, Post re-\nhis term Sept. 30.\nporter Lou Cannon wrote that President Ronald\nActually, press secretary Dee Dee Myers, asked\nReagan's aides were \"struggling with the difficult\nat a news briefing in February about Powell's sta-\ntask of speeding Reagan's lagging time-table on\ntus, said Clinton wanted him to stay on. Not quite\nsub-Cabinet and other political appointments.\nyour warm, personal gesture, but at least Clinton\n[An] aide said that security and ethics checks had\ndidn't ask him to leave.\ntaken longer than anticipated.\"\nFast forward to White House communications\nIt's Official\ndirector George Stephanopoulos yesterday saying\nClinton yesterday said he would name Vice Adm.\nthat \"the FBI background checks-and the back-\nAlbert J. Herberger, a 35-year Navy veteran, as\nground check is far more comprehensive-and it\nadministrator of the Federal Maritime Administra-\ntakes more time than our predecessors.\"\ntion, and Joan Yim, a longtime government affairs\nStephanopoulos acknowledged that some candi-\nand planning analyst in Hawaii to be deputy admin-\ndates' domestic help problems, hiring illegal aliens\nistrator.\nor not paying Social Security taxes, has played \"an\nAt Commerce, former Senate staffer and tran-\nawful big part\" in delaying background checks.\nsition team member Loretta L Duan has been\nStephanopoulos, briefing reporters, offered a tally\nnamed assistant secretary for import administra-\nto date: \"We've filled 814 [jobs]. It's broken down to\ntion. Carol C. Darr, former general counsel at the\n384 schedule C, 149 non-career SES [Senior Exec-\nDemocratic National Committee, has been named\nutive Service], 213 PAS full time, I'm not sure what\ndeputy general counsel; Barbara Stafford, also for-\nthat means. And 70 PA full time.\" PAS jobs are\nmerly at the DNC, is deputy assistant secretary for\npresidential appointments subject to Senate confir-\ninvestigations for the International Trade Admin-\nmation. PA jobs are appointees not subject to con-\nistration; and, Gloria Gutierrez, formerly at the La-\nfirmation, such as White House staff.\nbor Department, was named deputy assistant sec-\nThe White House counts 3,306 presidential job\nretary for administration.\nappointments in all. About half-1,600-are Sched-\nAt the Overseas Private Investment Corporation,\nule C jobs, 880 are non-career SES, 526 are PAS\nChristopher Finn, formerly with the American\njobs and 300 are PA slots. (The PAS slots do not\nStock Exchange, is to be the executive vice pres-\ninclude nearly 200 U.S. attorneys and marshals and\nident.\nthe approximately 115 vacancies on the federal\nAt Defense, Alice C. Maroni, formerly with the\nbench.\nHouse Armed Services Committee, is principal dep-\n\"We expect the process to speed up,\" Stephano-\nuty comptroller and Deborah Castleman, a policy\npoulos said. \"But we're at the pace of Bush,\" who\nanalyst at Rand Corp., a California think tank. is\nalso was criticized for extraordinary slowness in\ndeputy assistant secretary for command, control\nputting the government in place.\nand communications.\nThe difference. of course. is that Bush could take\n-Al Kamen\nT\nTHURSDAY, APRIL 15, 1993\n17\nTHE WASHINGTON POST\nHow to Aid 'Working Poor?\nTax Credit Serves as Lifeline but Has Its Critics\nA-1\nabout half of it as an earned income\nBy Guy Gugliotta\ntax credit, a supplementary pay-\nWashington Post Staff Writer\nment from the federal government\nMEMPHIS-For 20 years Flo-\nmade to families who earned less\nrea Hill has worked as a short-order\nthan $22,370 in 1992. This year, as\ncook at a truck stop diner, a full-\nevery year, Hill's combined tax re-\ntime job that in 1992 brought her\nfund-EITC check will be the most\n$10,001 before taxes. It is not\nmoney she has held in her hand at\nenough.\nany one time.\n\"I need to buy some clothes,\" said\nFew experts dispute the effec-\nHill, 59, who lives in a weatherbea-\ntiveness of the EITC, the govern-\nten white clapboard cottage in\nment's principal tool to enhance the\nEarle, Ark., about 15 miles north-\nincome of \"working poor\" families\nwest of Memphis. \"And some things\nwith children. President Clinton\nreally need fixing, like the back\nplans a major expansion of EITC,\nporch and the bathroom-you don't\nand can expect broad congressional\neven want to see the bathroom.\"\nbacking. Both political parties like\nHill is counting on getting $2,074\nthe EITC because it is believed to\nfrom the Internal Revenue Service,\nSee EITC, A8, Col. 1\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n1/2\n18\nClinton Seeks to Expand the EITC\nEITC. From A1\nrent EITC tax form, but a spokesman said the agency\ndoes not know how many EITC recipients use tax prepar-\nreward work and support the family.\ners. At H&R Block in Memphis, however, the idea that\nYet the program has weaknesses. There are indications\nthe form is too complicated evoked incredulity.\nthat some Americans deliberately work hard enough to\n\"They know about it all right,\" said first-year preparer\nobtain maximum EITC benefits-but no harder. Experts\nJerry Berry. \"In fact at the beginning of the year, the cli-\nalso warn that the promise of an EITC could cause tax-\nents taught me how it worked. In most cases they knew\npayers to falsely inflate their earnings in order to qualify\nexactly how much their refund was going to be.\"\nfor a bigher benefit.\nBerry estimated \"maybe 1 percent\" of his clients didn't\nAnd there are also questions about whether the credit\nunderstand the credit, and \"maybe 10 percent\" didn't\ndoes what it purports to do: Does it ease the poverty bur-\nknow how to calculate it. Cleopra Mitchell, another pre-\nden and inspire Americans to get off the welfare rolls and\nparer, said 60 percent of her clients had filled out the\nseek better-paying jobs? Or does it simply make scutwork\nEITC form when they arrived for their appointment.\nbearable and give employers an excuse to pay people less?\nThe vast majority of EITC recipients are people who\nThe basic EITC works on a \"bell curve,\" rising as a\nwork long hours for low pay at low-skill jobs that provide\nworker's wages rise (about 17 cents for each dollar\nfew benefits and no future: \"What we see is that people\nearned). reaching a maximum when annual earnings are\nwill take janitorial work or take a part-time job at Wen-\nbetween $7,520 and $11,840 and declining gradually until\ndy's-anything to get income,\" said Notre Dame's Me-\nit phases out altogether at $22,370. The maximum basic\nlani. \"This perception of people going on welfare and liv-\ncredit in tax year 1992 for a parent with two or more chil-\ning high on the hog is totally bizarre.\"\ndren, making between $7,520 and $11,840 per year, is\nLouis Grant, 27, who expects to get a $2,000 EITC on\n$1,384. A person must earn some money to qualify for the\nearnings of $10,000, works full time as a fork lift operator\nEITC.\nfor a Memphis water purification plant, and for part of last\nBesides the basic credit, the government offers a\nyear held a second, night job cleaning office buildings. All\n\"health care credit\" to workers who contribute to a health\nbut $300 to $400 of his EITC will go to his estranged wife\ninsurance plan for a child during the tax year and a \"young\nand the couple's three children-\"to buy them shoes,\nchild credit\" for those with a child less than a year old.\nclothes, whatever they need,\" he said.\nBoth additional credits, criticized as being unwieldy and\nLike Grant, everyone interviewed in Memphis or east\nsubject to abuse, would be eliminated under the Clinton\nArkansas knew exactly how EITC money would be spent:\nplan.\nfor furniture, home repairs, medical bills, a \"new\" used car\nIn all, the maximum 1992 EITC is $2,211, and the ben-\nand, always, as Floria Wells put it, \"to buy stuff for the\nefit can be paid in a lump sum at filing time or in monthly\nkids.\" Wells, 23, of West Memphis, worked six months\ninstallments during the tax year. The IRS expects 14 mil-\nlast year at Pizza Hut and earned \"something like $1,000.\"\nlion taxpayers to claim an EITC for 1992.\nShe filled out her own form for a refund-EITC of $310.\nThe Clinton proposal would expand the program to cov-\nWith the advent of electronic filing, taxpayers can get\ner perhaps 2 million additional families, and would cost an\nrefunds-and EITCs-in two days. The promise of an\nadditional $7.6 billion in 1996 over the projected cost of\nimmediate bonanza is a big reason why Memphis-area\n$17.1 billion. Clinton's goals: raise the income of all four-\ntaxpayers express little interest in receiving their EITC\nperson families with a full-time worker to the poverty line;\non a pro-rated, monthly basis. \"This country has a refund\nTHURSDAY, APRIL 15, 1993\noffset the effect of new energy taxes on poor people.\nmentality,\" Halfpap said. \"If you're somebody that's un-\nIn the Memphis metropolitan area, at the junction of\nemployed part of the year or if you want to make plans,\nTennessee, Arkansas and Mississippi, the EITC can serve\nthen you want the money all at once.\"\nas a lifeline, both for a large mass of unskilled and semi-\nSupporters of the monthly payment are convinced that\nskilled inner city workers, and for a dwindling rural labor\nlow-income taxpayers, like welfare recipients, need their\nforce scrambling for scarce jobs.\nextra money quickly and often and can make better use of\nFred Halfpap, south Memphis district manager for the\nit if they get it in installments. But in Memphis there is\nH&R Block income tax preparers, estimates that at least\nconsiderable evidence that the lump-sum payment may be\n50 percent of the company's Memphis area clients apply\ncrucial in fulfilling the stated purposes of the EITC.\nfor the EITC. Most of his co-workers put the figure be-\nHalfpap suggests that it is bringing once-marginal peo-\ntween 70 and 85 percent.\nple into the mainstream and holding them there by en-\nTo get an EITC, taxpayers must fill out a two-page tax\ncouraging them to file tax returns. With a monthly pay-\nform to accompany a completed 1040 or 1040A (no short\nment, by contrast, taxpayers run the risk of earning too\nforms). University of Notre Dame accounting professor\nmuch or too little for their anticipated EITC: \"The first\nKen Melani, who runs a tax outreach program in South\ntime they find out they have to pay extra, we'll chase\nBend, Ind., described the forms as a \"nightmare\" because\nthem right off the tax rolls,\" Halfpap said. \"They may nev-\nof confusion caused by the new child and medical credits.\ner file again.\"\nBut Robert Greenstein, executive director of the Cen-\nBut the biggest advantage of the lump sum is probably\nter on Budget and Policy Priorities, which runs a national\nintangible-making people believe in the system and giv-\nprogram to spread information on the EITC. noted that\ning them a sense of worth. \"I personally feel the EITC is\ntaxpayers need only fill out the form's first page, \"not par-\nan incentive,\" said Kathleen Charles, an administrator at a\nticularly difficult,\" and let the IRS do the rest. By elimi-\nWest Memphis housing project. \"It provides most people\nnating the supplementary credits, Greenstein said, the\nwith that one-time great feeling of having a lot of money\nClinton proposal will make the form \"significantly simpl-\nat one time.\"\ner.\"\nThe IRS has used Charles's EITC ($2,200 over the last\nIn South Bend, Melani said it was \"amazing\" that for\ntwo years) to pay down student loans that she has used in\nsomething \"that's been around so long,\" some people still\nher quest to become a child psychologist. She will prob-\n\"are surprised\" to get the EITC. In West Memphis, Ark.,\nably achieve her goal, thanks, in part, to the EITC.\nhowever, Sherry Fisher Means, a paralegal with the local\nStill, for every forward-looking poor person with a plan,\nlegal aid office, said her northeast Arkansas clients under-\nthere appear to be several others like Hill or Grant\nstand the credit and were made well aware of it \"by tax\ntrapped in low-paying jobs who need an EITC simply to\npreparers and by word of mouth.\"\nkeep from drowning.\nThe IRS has acknowledged the complexity of the cur-\nSee EITC, A9, Col. 1\nTHE WASHINGTON\nPlan Is Believed to Reward Work, Support Family\nEITC, From A8\nthe credit begins to phase down, do people work less?\"\n\"A lot of people think about making more money,\" said\nsaid the Center on Budget and Policy Priorities' Green-\nMelani. \"But what locks them into low-paying, EITC-el-\nstein. \"The general sense of the research is that there\nlible jobs is lack of skills-there's no way out for many\nmay be that kind of effect, but with the EITC it is much\npeople.\"\nless than in a welfare program.\"\nFor some taxpayers, however, the EITC appears to be\nAnother anticipated shortcoming of an expanded EITC\nenough. Tax preparers, both in Memphis and in other\nis what Urban Institute senior fellow Gene Steuerle calls a\nparts of the country, have noticed clients with an uncanny\n\"superterranean economy\"-in which taxpayers overre-\nability to earn enough money to get the maximum EITC\nport their earnings in order to receive a higher EITC.\nbenefit-but no more.\nUntil recently, Steuerle said, program rates have not\nMelani acknowledged there may be \"pockets of welfare\nbeen high enough to make overreporting profitable, but\nmentality, but overall-no.\" But H&R Block's Berry re-\nan expanded benefit under Clinton heightens the risk: 1\nmarked how many taxpayers \"find their way right to the\nthink it's one of the things that's going to have a learning\nmiddle\" of the bell curve, and Halfpap said that \"for what-\ncurve,\" Steuerle said. \"Once the word spreads, then you\nwill see more of it.\"\never reason,\" a lot of H&R Block clients \"hit the max and\nstay there.\"\nStill, for Steuerle and others, the EITC's faults are both\nThis behavior suggests a complacency among some\nresolvable and more than offset by the program's benefits.\ntexpayers that mocks the work ethic the EITC seeks to\nThe EITC, advocates say, rewards honest effort, fosters\npromote. It is, however, a program weakness that has\nhope among people with limited prospects and puts a lot of\nmoney into local economies:\ncaught the attention of experts:\n\"People look forward to it,\" said Charles. \"It's the one\n\"The basic question is, when you get to the point where\n19\ntime in the year that you can do some big things.\"\n2/2\"\nWhite House\nHealth Plan\nClinton abandoned his campaign\npledge for a tax cut for the middle\nclass and instead proposed an eoc-\nnomic plan that would increase the\nOpens Door\nTax Options\nax burden, if only modestly, on\nmiddle-class Americans.\nPreviously, the VAT had been\nTo New Tax\nruled out. On March 25, for exam-\nInclude VAT\nple, Stephanopoulos said such a tax\n\"will not be in the proposal.\"\nWhite House press secretary\nValue-Added Levy\nCLINTON, From A1\nDee Dee Myers also discounted\nnews reports and comments by oth-\nNo Longer Ruled Out\nthe 37 million Americans currently\ner administration officials that a val-\nwithout health insurance.\nue-added tax was under consider-\nTo Fund Health Plan\nThe administration may not be\nation. \"I think the president ruled\nA-1\nable to raise its needed revenue\nthat out fairly clearly a couple of\nsolely through \"sin taxes\" on such\nweeks ago,\" she said March 24.\nBy Ruth Marcus and Ann Devroy\ncommodities as cigarettes, which\nOn the stimulus package, Clinton\nWashington Post Staff Writers\nClinton already has specifically\nand Dole at midday had what Steph-\nThe White House yesterday\nmentioned. A value-added tax has\nanopoulos called \"a good talk\" re-\nopened the door to imposing a val-\nthe political benefit of being a some-\nsulting in a presidential offer to call\nue-added tax to pay for its health\nwhat hidden charge because it is\nthe GOP leader back last night with\ncare program, after weeks of re-\ntacked on at each stage in the pro-\nan outline of a compromise \"to get\npeatedly insisting that such a tax\nduction process rather than levied\nsomething done.\" Dole, on behalf of\nwas not an option.\nin one flat form at the end.\nthe Senate Republicans, has been\nWhile three senior administration\nShalala, in an interview with USA\ninsisting that the White House ei-\nofficials, including White House\nToday, said, \"Certainly we're look-\nther pay for the stimulus by cutting\ncommunications director George\ning at a VAT,\" and Rivlin told the\nelsewhere or significantly reduce it.\nStephanopoulos, were preparing\nNational Association of Manufac-\nThe conversations were the first\nthe ground for the possibility of\nturers that it was clear that extend-\nsince a successful Republican fili-\nsuch a tax proposal, President Clin-\ning health care to those without in-\nbuster stalled the stimulus package,\nton yesterday was silent on that\nsubject. Instead, he was promoting\nsurance is \"going to take some\nand came after several days of pub-\nmore resources, and a VAT or a\nanother piece of his agenda, his\nlic lobbying aimed at persuading at\ntroubled economic stimulus pro-\ngeneral sales tax has a good deal to\nleast three Republicans to switch\ngram, and privately discussing a\nrecommend it.\" Rivlin said such a\nsides and allow the bill to go for-\ncompromise with Senate Minority\ntax \"has to be offset or designed in\nward. But the process has become\nLeader Robert J. Dole (R-Kan.) in\nsome way that it is not too painful\"\nmore complicated for the White\ntwo telephone conversations.\nto the lowest-income groups.\nHouse, as now at least three Dem-\nStephanopoulos said \"modifica-\nAsked about those comments,\nocrats have said they will not vote\ntions\" in Clinton's $16.3 billion\nStephanopoulos repeatedly refused\nfor the stimulus as currently pro-\nstimulus package were being pre-\nto restate earlier remarks taking\nposed.\npared to make it more acceptable to\nthat option off the table.\nThe conversations occurred in a\nSenate Republicans who voted in a\n\"If a decision is made to go for-\nday of furious charges, counter-\nbloc to stop it.\nward with something like that, it's\ncharges, faxes and press releases\nOn the tax issue, Stephanopoulos\ncertainly something the president\nover the stimulus issue. The White\nabandoned previous statements\nwill explain and justify, but no de-\nHouse sent press releases into the\nthat a value-added tax (VAT), which\ncision has been made along those\nstates of six moderate Republican\nis imposed at each stage of the man-\nlines he said. \"But at the same\nsenators enumerating the jobs the\nufacture of a product, would not be\ntime, he has not ruled it in. He has\nadministration said would be lost if\nused to pay for overhauling the\nnot made a proposal.\"\nthe package were not approved.\nhealth care system. \"I'm acknowl-\nStephanopoulos's comments\nClinton repeated his call for passage\nedging that the task force has stud-\nwere similar to the formulations\nto a group of business and local\nied this proposal,\" Stephanopoulos\nthat the administration used before\ncommunity leaders.\nsaid. \"I am also stating that the\nBut Republicans continued their\npresident has not made a decision\non it.\"\nassault on the package, which in-\nClinton in February said some\nI'm acknowledging\ncludes social spending and unem-\nkind of national sales tax made\nployment compensation, as too full\nsense for the country, then imme-\nthat the task force\nof fat and one that should not be\ndiately retreated, saying he envi-\nadded to the deficit. House Repub-\nsioned a 10- to 15-year time frame\nhas studied this\nlicans announced they would make\nfor such a change. Clinton's official\nthat case at 19 town meetings\nspokesmen also were denying such\nproposal. I'm also\nscheduled Saturday from New\na tax was a possibility, even as\nHampshire to Southern California.\nmembers of Hillary Rodham Clin-\nstating that the\nRepublican lawmakers pledged to\nton's health care working groups\nspotlight tax increases in Clinton's\nover the past two months were\npresident has not\nbudget and appeal for more spend-\nlooking at the VAT as one of sev-\ning cuts first. The meetings were\neral revenue-raising options.\nmade a decision.\"\ntimed to occur soon after today's\nDonna E. Shalala, secretary of\n-George Stephanopoulos,\ndeadline for filing income tax re-\nHealth and Human Services and AI-\nWhite House spokesman\nturns.\nice M. Rivlin, deputy director of the\nOffice of Management and Budget,\nStaff writers Kenneth J. Cooper and\nboth mentioned the tax as an option\nHelen Dewar contributed to this\nin the last two days, and Stephano-\nreport.\npoulos yesterday refused to rule it\nout.\nThe shift in tone reflected a be-\nlief among some senior White\nHouse aides that a value-added tax\nmay be its best alternative for rais-\ning the $30 billion to $90 billion an-\nnually needed to pay for Clinton's\npledge to extend health benefits to\nSee CLINTON, All, Col. 1\nTHURSDAY, APRIL 15, 1993\n20\nTHE WASHINGTON POST\nValue-Added-Tax Designed 0\nDiscourage Consumption\nBy Steven Mufson\nand David S. Hilzenrath\nWashington Poar Staff Waters\nA value-added-tax (VAT) IS a form of gener-\nrogram.\na! sales tax used in more than 50 countries, in-\ncluding most major industrialized nations.\nThe attraction of the tax is that it raises\ntremendous amounts of money and its burden\nfalls on consumers, encouraging people to\nsave and invest instead of spend.\nEconomists say that would help the econo-\nmy grow faster in the long run.\nBut the tax also falls more heavily on the\nlow and moderate-income earners who need\nto spend almost every dollar to make ends\nmeet.\nrament's election watchdog agency to predict a\nwhile campaign costs are rising, leading the gov-\n1992, but fewer taxpayers are checking the box\nThere was enough money in the system for\nforms to earmark a dollar for the public financing\narpayers, who check a box on their yearly tax\nThe system relies for its money on individual\ndress takes action.\" the independent agency said.\nelections will all but collapse in 1996 unless Con-\nThe current system of financing presidential\ntion Commission said yesterday.\nmore money into the system. the Federal Elec-\nTinger of failing unless Congress acts to channel\nhosidies to presidential election campaigns is in\nThe government program that offers taxpayer\nReuter\nAs a percentage of income, the burden on\nthe bottom fifth of American families would be\nthree times as large as the burden on the top\nfifth, the Congressional Budget Office (CBO)\nreported. And the tax could depress consump-\ntion and slow down the economy in the short\nrun. Consumer spending makes up about two-\nthirds of the U.S. economy.\nA VAT is imposed at each stage of produc-\ntion, unlike the form of sales tax commonly\nimposed by states at the point of sale. A VAT\ntaxes the total value of sales of all businesses,\nbut allows them to deduct money used to pay\nfor taxes, raw materials and capital goods and\nequipment.\nAs a result, it does not tax investments-\nand it IS more difficult to evade than a conven-\ntional sales tax. For those reasons, the Trea-\nfollowing the Watergate scandal. The system's\nistered by the FEC and was created by Congress\npartially financed by the system, which is admin-\nsury and U.S. representatives at international\nEvery presidential election since 1976 has been\ning program\" but did not offer specifics.\n\"ensure the financial viability of the public fund-\nIt urged Congress to change the system to\nhigh of 28 percent in 1980.\ncampaign fund last year compared to a record\nof taxpayers made the $1 contribution to the\nThe agency reported that less than 18 percent\ntaxpayers this year.\neral income tax returns-too late to sway most\nbefore today's deadline for filing this year's fed-\nThe FEC report was made public just one day\nnext presidential election cycle.\nshortfall of $75 million to $100 million for the\nfinancial institutions have urged many devel-\noping and former communist countries to\nadopt VATs.\nUnder a standard VAT. U.S. exports would\nnot be taxed and foreign imports would. so\nAmerican products would be on an equal foot-\ning at home and abroad.\nAccording to the CBO, a 5 percent VAT on\nall consumption would increase federal tax\nrevenues by $68.2 billion in fiscal 1995 and by\nmore than $100 billion every year after that.\nTo ease the pain for poor and moderate-in-\ncome earners, the VAT could be designed to\nexclude food, housing and medical care. A 5\npercent VAT would then raise $35.7 billion in\n1995 and around $60 billion a year after that.\nto qualify for general election subsidies.\nThe administration's proposed energy tax\nbears some of the characteristics of a VAT,\nand Democratic Party candidates have been able\nqualify for primary subsidies, only the Republican\nWhile some minor-party candidates usually\nsubsidize their nominating conventions.\nand Democratic parties also get lump sums to\ncover all their spending needs. The Republican\nifying candidates receive lump sums intended to\nDuring the general election campaign, qual-\nthe amount of private money they raise.\ncandidates get public subsidies in proportion to\nsupport. During the primary season, qualifying\nquirements aimed at demonstrating widespread\nfederal subsidies by meeting government re-\nPresidential candidates become eligible for\nwealthy contributors in the election process.\nprimary goal was to reduce the influence of\nPresidential Campaign Fund May Need Bailout, FEC Says\nand gives an idea of the political opposition it\ncould draw. Just as different regions and dif-\nferent industries have lobbied for special ex-\nceptions from the proposed energy tax, re-\ngions and industries would probably lobby for\nspecial breaks from a VAT.\nBut some business groups have already em-\nbraced the concept, suggesting that the VAT\nbe used as an alternative to the energy tax or\nthe corporate income tax hike that President\nClinton has proposed. Most governors oppose\na VAT because it would make it more difficult\nfor them to raise state sales tax rates.\nIt would take the Internal Revenue Service\na year to implement a VAT, and administering\nit would cost the federal government $750\nmillion to $1.5 billion annually, according to\nthe Congressional Budget Office.\nTHE WASHINGTON POST\nTHURSDAY, APRIL 15. 1993\n22\nA\nAsians Classified as American, POW Expert Says\nAnalyst Offers Explanation of Discrepancy in Numbers; Researcher Disputes Argument\nTHE WASHINGTON POST\nBy Thomas W. Lippman\nand members of Congress have seized on the\nThese operations and the capture of the civil-\nWashington Post Staff Writer\ndocument as evidence that Vietnam has deceived\nian agents were described in detail in a Los An-\nthe United States about its prisoners for 20\ngeles Times article in January 1991.\nNorth Vietnam held several hundred Asian\nyears and may still be holding some of the 1,166\n\"These people were consistently defined by\ncivilians in 1972 whom it counted as American\nU.S. servicemen whose fate remains officially\nthe Vietnamese as American commandos,\" Tou-\nprisoners of war, a likely explanation of the dis-\nundetermined.\ncrepancy between the 1,205 POWs a Russian\nrison said. \"In the [North] Vietnamese press and\nThose groups are unlikely to be swayed by the\ndocument says Vietnam held and the 591 re-\non Radio Hanoi during the war, they were re-\nviews of Tourison, who has a position to defend:\nleased after the war, a former Defense Intelli-\nferred to as American 'spies' or 'saboteurs.' It\nHe has said publicly since 1988 that no prisoners\ngence Agency analyst said yesterday.\nhas quite often misled people to think they were\nremain alive, although \"there were a lot of un-\nJ\nThe Asians were captured while on covert\nAmericans when actually they were South Viet-\nanswered questions in 1973,\" the year Vietnam\nmissions for U.S. forces between 1961 and 1968\nnamese who worked for us.\"\nreturned all the U.S. POWs it said it was holding.\n1\nand were kept in North Vietnamese prisons\nStephen J. Morris, the Harvard-based re-\nalong with American military personnel. These\nTourison, a former intelligence officer and\nsearcher who discovered the document in the\nAsian agents were always referred to as Amer-\nprisoner interrogator in Vietnam and Laos, was\nMoscow archives of the Soviet Communist Par-\nicans in North Vietnamese documents and broad-\nalso an investigator for the Senate Select Com-\nty, disputed that argument. Morris, who said he\ncasts, said Sedgwick D. Tourison Jr., who was a\nmittee on POW-MIA Affairs, which spent last\nbelieves several hundred American prisoners\nsenior analyst in DIA's POW-MIA office for five\nyear examining the issue of missing Americans.\nHe is writing a book about 34A, which he said is\nwere executed after the war, noted that thou-\nyears.\nscheduled to be published later this year.\nsands of Russian-language documents about the as 00\nHe said the agents were deployed on sabotage\nIn the U.S. Embassy translation of the Russian\nwar that he has read all distinguished clearly be-\nand intelligence-gathering missions collectively\ndocument-itself translated from Vietnamese-\ntween Americans and others. But he said he had 07 BW\nknown as 34A-missions that were secret at the\nthe 1,205 prisoners were said to be 767 pilots,\nnot read Vietnamese-language documents.\ntime but were revealed in the Pentagon Papers\nor\n391 \"American servicemen of other categories\"\nNorth and South Vietnam exchanged prison- 06\nand have since been reported at length.\nThe Russian document, purportedly a trans-\nand 47 \"individual special operations personnel\ners in the spring of 1973, but according to Tou-\nlation of a senior Vietnamese general's politburo\nwho were conducting reconnaissance of trans-\nrison, the South Vietnamese and other Asiantoa\nbriefing about U.S. prisoners in September\nportation routes from helicopters and reconnais-\nagents captured on the covert missions were not ob\n1972, was obtained by the United States last\nsance vessels.\" Most of the captured pilots were\nincluded because they were civilians. They werens\nweek and is being evaluated by U.S. officials,\nactual Americans, but the other groups consisted\nessentially forgotten during the peace negotia- oil\nwho appear inclined to support Tourison's anal-\nlargely of Asians, Tourison said.\ntions and remained in North Vietnamese prisons 12\nysis.\nThe numbers in the Russian document are\nfor years after the war.\nE\n\"DIA believes the number 1,205 could be an\n\"not inconsistent with the known facts of 1972,\"\n\"Some died in prison, some were released in\naccurate accounting of total prisoners held\" in-\nTourison said. Vietnam's POW population at the\nthe late 1970s and others were released in the *IF\ncluding South Vietnamese, Thais and other As-\ntime included 30 Taiwanese \"inserted on a mar-\nlate 1980s,\" Tourison said. Several who were\nians, according to Robert R. Sheetz, director of\nitime operation in 1963\" and \"approximately 450\ninterviewed by the Los Angeles Times re- U on\nthe DIA's POW office. \"Numbers in the docu-\nagents from South Vietnam on CIA and Defense\ncounted years of torture and deprivation, fol- 9:\nment cannot be accurate if discussing only U.S.\nDepartment missions who were lost on covert\nlowed by shock and distress when they finally it\nTHURSDAY, APRIL 15, 1993\nPOWs.\"\noperations.\" There were also Thais captured in\nreturned to families who had given them up for ,\nSome family groups, veterans organizations\ncross-border operations, he said.\ndead.\nAttorney General Orders Probe\nOf A4 Hangings in Mississippi Jails\nwere suicides and note that 23 of\nBy Michael Isikoff\nand wrote Reno asking her to re-\nWashington Post Staff Writer\nthem, or nearly half, involved\nopen the investigation into the\nwhites.\nJones death as well as other deaths\nAttorney General Janet Reno.\nNevertheless, the issue drew na-\n\"to determine whether there have\nresponding to growing calls from\ntional attention last summer after\nbeen outrageous violations of the\ncivil rights activists, has instructed\nAndre Jones, the 18-year-old son of\nconstitutional rights of persons held\nthe Justice Department to look into\nJackson, Miss., NAACP President\nin custody\" in Mississippi.\nGrash of reported hanging deaths in\nEsther Quinn, was found hanged by\nBobby Doctor, acting director of\nMississippi jails.\na shoelace in the Simpson County,\nthe commission, said yesterday he\n2. Department spokeswoman Car-\nMiss., jail. State and federal author-\nwas \"very pleased\" about Reno's\nities ruled the death a suicide, but\naction. He said there had been \"a-\noline Aronovitz confirmed yester-\nan independent pathologist hired by\nhigh number of allegations of mis-\nday that Reno recently asked the\nthe family concluded the teenager\nconduct\" in connection with the\ncivil rights division to conduct the\nwas murdered, saying that the bar\ndeaths, including some evidence\nréview \"to see if there is a pattern\"\nfrom which he was hanged was\nsuggesting that jail employees may\nto the deaths and to see if such in-\neight to nine feet high and that\nhave been \"infiltrated by members\ncidents could be prevented.\nreaching it would have required a\nof hate groups.\"\ni \"How could that many people\nstool that was not present.\nBut even if those allegations can-\ndie?\" Reno asked during an inter-\nThe issue took on new urgency\nnot be substantiated, Doctor said,\nview with wire service reporters in\nlast month when President Clinton\nthe sheer number of deaths was\nwhich she expressed her concern\nsaid he was \"very much concerned\"\n\"alarming\" and raised questions\nabout the deaths. The Associated\nabout the deaths following calls for\nabout conditions in the jails.\nPress quoted Reno as calling the\nnew investigations from the Rev.\n\"It certainly suggests to me that\nlarge number of deaths \"unaccep-\nJoseph Lowery and other civil\nif you have that number of folks\ntable\" and instructed the division\nrights leaders. In addition, the U.S.\ncommitting suicides, there is cer-\nto try to get to the bottom of it.\"\nCivil Rights Commission decided to\ntainly something driving them in\nFederal officials say there have\nhold its own hearings on the issue\nthat direction,\" he said.\nbeen 47 deaths in Mississippi jails\nsince 1987 can unusually large num-\nger that some civil rights. activists\nhave charged were racially moti-\nPated \"lynchings.\" State officials\nhave ruled that all the hangings\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n23\nOn a Health Kick\nHHS Secretary Donna Shalala, Exercising Her Ideals\nBy Barbara Vobejda\nHEALTH, From C1\nWashington Post Staff Writer\ncial service programs ever.\nonna E. Shalala is balanced on the edge of a\nThis is the time and these are the\nIf it is a show of independence, it is\npeople, she says of herself and her\nD\nCleveland hospital bed, where a 7-year-old\nhardly the first time. In fact, Shalala's\nboy is being treated for bone cancer. His par-\ncounterparts. It is time to make histo-\nassertive streak can make her seem\nents, Glen and Cynthia Day, are asking her\nry. \"We've spent our whole careers\nrelentless. As a child in Cleveland, she\nthe hard questions about health care: put\nwaiting for this moment,\" she says.\nonce marched out after a dance recital\n\"We better seize it.\"\nsimply, who will pay the bills?\nto take a personal bow, waiting until\nCan she possibly fulfill her own\nTheir son, Zach, smiles meekly at this visitor, who has\nshe had the stage to herself. As an\nmythic expectations?\nswept into his room trailed by a knot of staff and cam-\nadult, she is known as a demanding\nboss with an imposing ego.\neras. He has lost all of his hair, his right leg has been am-\nBut Shalala is more complex than\nputated just above the knee and an IV is draining into his\nDonna Shalala does know how to get\nthat, part steamroller, part sports\nthings done-with or without your\nright arm.\ncoupe. The folklore among Madison\nShalala sits beside him, holding herself still, but ema-\nhelp.\nstudents was that, after she banned\nnating intensity-as if the energy of a bigger person has\n\"She's a steamroller,\" said Michael\nsmoking at the university, she would\nbeen compacted into her solid, five-foot frame. \"You're\nGrebe, a conservative Republican on\nstalk the stadium tiers at athletic\nworth every dime we spend on you,\" she says decisively.\nthe University of Wisconsin Board of\nevents looking for smokers. Her nick-\nRegents, where Shalala served as\nname, earned when she served as an\nchancellor. \"She just runs over people.\nassistant secretary at HUD in the\nShe's a very high-energy person who\nCarter administration, is \"Boom\napproaches problems with a frontal at-\nBoom.\" But she also knows how to\n\"Keep fighting.\" From behind her back, she produces a\ntack\nsometimes she leaves a few\ncharm: Donna Shalala on the football\nteddy bear and hands it to him.\nbodies in her wake,\" he said.\nfield, introducing kids to Bucky the\nBut the new secretary for health and human services\nAt the same time, Grebe rates Shal-\nBadger, the UW mascot. And many\nhas no good answers for his parents, who worry that\nala as an effective chancellor. By many\nsay she is genuinely compassionate:\ntheir insurance will be exhausted by the staggering hos-\naccounts, she has taken two huge insti-\nDonna Shalala sharing her chancellor's\npital bills. Nor does she for dozens of other patients wait-\ntutions-University of Wisconsin-Mad-\nmansion for months with a North Da-\ning down the hall, who tell her horror stories about their\nison and Hunter College in New York,\nkota family whose daughter was in\nlack of insurance coverage, or how their insurance won't\nwhere she served as president-and\nMadison for a liver transplant.\npay for the one treatment that could save their lives.\nrevitalized them. But it is almost as if\nAbove all, she is savvy. Grebe,\nShe offers this: \"We've got a system that obviously\nthe zeal and self-confidence that pro-\nwhose conservative Republican politics\npels her also creates a momentum she\ndoesn't work.\nAll I can tell you is we're going to do\nclashed with Shalala's, believes she \"ei-\ncannot harness. She ends up negotiat-\nour best.\"\nther co-opted or neutralized\" her natu-\ning her world like a force of nature,\nral critics in Madison-the business\nThere is a powerful irony in the moment, as Donna\nmore tornado than gentle breeze. And\ncommunity-by her enormous success\nShalala embraces what she calls her \"awesome\" responsi-\nsometimes that gets her into trouble.\nat fund-raising and by turning around\nbilities. Like many others in the Clinton administration,\nAfter a few months on her new job,\nthe athletic department.\nshe was shaped by the '60s belief that government can\nshe has apparently become the first\n\"I wonder, in my heart of hearts, if\nsolve the most challenging human problems. But in the\nCabinet member to stray from the\nwas going to build a university\ncorridors of this hospital, as in the corridors of HHS's\nWhite House's party line. Sources in\nfrom the ground up, if it would even\nthe administration said White House\nhave intercollegiate athletics,\" he said.\nofficials, including Clinton, were an-\nDut when she arrived here and saw\nmassive headquarters building on Independence Avenue,\nnoyed with her when she announced\npeople attached importance to it, she\nher idealism confronts reality.\nwithout approval that the immigration\njumped right on it.\"\nShalala and her Cabinet colleagues have waited a doz-\nban on persons with HIV would be lift-\nen or more years for this chance. Now they are here,\ned, a regulatory change that Congress\nready to go. But the cupboard is bare. The great spend-\nhas since opposed. HHS spokeswoman\ning days of the '60s are gone, replaced by a politics of\nAvis LaVelle countered that Shalala\nausterity and a suspicion of government. And even if\nwent through proper channels. Never-\nthere were enough-money to pay the health care bills for\ntheless, Shalala received an angry call\nthose who cannot, there still waits a punishing list of oth-\nfrom White House Chief of Staff\ner demands: training and jobs for welfare mothers,\nThomas F. McLarty, who scolded her\nAIDS, child support, drug abuse, urban blight.\nover the matter, according to one\nWhite House official. She also angered\nNot that she's daunted by the limitations. Shalala de-\nthe White House, administration sourc-\nscribes the transition of power in Washington as a critical\nes said, when she announced without\npoint in American history, a juncture of need and oppor-\napproval that FDA Administrator Da-\ntunity that calls for a great leap forward in social policy.\nvid Kessler would remain in his post.\nSomething akin to the creation of Social Security in\nLaVelle said this too was a misunder-\n1935, which she calls the most sweeping advance in so-\nstanding for which Shalala was not re-\nSee HEALTH, C4, Col. 1\nsponsible.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n1/2\n24\nShe has been labeled the \"high\nThe st.\ncamped outside her of-\npriestess of political correctness.\"\nfice for SIX days before they moved to\nThose critiquing the new administra-\nthe Board of Regents office, where\nthe dorms to introduce herself to the\nShalala attended graduate school at\nden say that Shalala, of all the Cabinet\nthey were forcibly removed in an ugly\nfreshmen.\nSyracuse University during an inte\nmembers, may be most likely to falter\nconfrontation that sent one student to\nThe university news office had to\nperiod on college campuses. Prof. Alan\nit. her new role because she is most\nthe hospital with a broken rib. But it is\nstaff her in shifts. She would be up be-\n\"Scotty\" Campbell, for whom she\nrepresentative of the old-style liberal,\nnot the broken rib or the six days of\nfore dawn walking her golden retriev-\nworked, recalled when students occu-\nmost eager to find sweeping govern-\nsleeping on a hard floor that the stu-\ner, Bucky, then at her desk before\npied a building to protest the Vietnam\nment solutions for the nation's prob-\ndents regret. It is the pizza, because\nmuch of the campus was awake. She\nWar. \"Donna and 1 both stayed up all\nIms, most caught in a mismatch of\nthat image-the benevolent leader\ntraveled frequently, maintained several\nnight,\" he said. \"Donna tried to talk the\nideology and reality. Before her Senate\nbuying food for her critics and thereby\nboard memberships and attended cam-\nstudents out, which she successfully\nconfirmation, Hill Republicans named\nclosing the gap between them-has\npus athletic events regularly. On many\ndid. She had their confidence.\"\nher as the most likely nominee to incite\nevenings, she held receptions at her\nIf the students arrived with liberal\noutlived much else about the protest.\ncontroversy because of her politics.\n\"She totally co-opted us,\" said Jordan\n30-room chancellor's mansion.\nviews, Syracuse emboldened them, re-\nAnd Rush Limbaugh, the conservative\nMarsh, a student government leader at\nWith few exceptions, her life was\ninforcing their sense of social justice\nredio talk show host, airs a regular\nthe school. Never married, she main-\nand their belief in government. Shalala\nthe time. \"That's what she's so good\nShalala update\"-accompanied with a\nat. She was real smart. She was able to\ntains a wide circle of close friends,\n\"was not that radical, but she was cer-\n(akeoff on the Eric Clapton song \"Lay-\nplay both sides.\"\namong them a group that includes for-\ntainly to the left of center. We all\nby: Shalala's as left as she can be\nAnd she can be brittle in the face of\nmer New York City Council president\nwere,\" said Peg Goertz, now a visiting\nspends her time hugging trees\nSha-\ncriticism. Jason Bretzmann, who works\nCarol Bellamy and Texas columnist\nprofessor at Rutgers University. \"I\nLayyyyyla.\nthink everybody still believed that we\nwith the student government, said\nMolly Ivins who have established a tra-\nShalala blasted him in a telephone con-\ndition of taking exotic vacations togeth-\ncould make a difference\nWe\nwere\nShalala, of course, rejects not only\nthe accuracy of the labels, but any no-\nversation last fall over testimony on\ner, including hiking in the Himalayas\ngoing to try to make the world better.\"\ntion that she will be paralyzed, or even\ncollege costs he was scheduled to pre-\nand rafting on the Salmon River.\nbethered much, by the obstacles be-\nsent to a congressional committee.\nShalala summarizes her years at\nAfter earning her doctorate, Shalala\nfore her. \"I've been running institutions\n\"She pretty much started yelling\nMadison with no attempt at modesty:\ntaught at City University of New York\nfor almost 15 years,\" she said in her\nfrom the get-go, Bretzmann said. \"She\n\"I pushed them beyond where they\nand Columbia University's Teachers\nunvarnished, et's-cut-through-the-crap\ndidn't want me going out there [to\nvoice. \"For the most part, I've had to\nthought they could go,\" she said. \"That\nCollege. She worked at HUD until the\nWashington and saying bad things\ncut and refocus, as opposed to adding.\"\nplace is better than it thought it could\nend of the Carter administration then\nabout her university. She was trying to\nbe.\"\nreturned to New York as president of\nMore important, she says, her philoso-\nintimidate a student.\"\nHunter College.\nphy about government has evolved:\nAs Shalala was learning the real-\n\"There are limits to what you can\nspend.\"\nShalala's mother, Edna Shalala, said\nworld lessons of politics and manage-\nIf Shalala's self-assurance has\n..\"I did indeed start out as a flaming\nthat as a child, Donna always fought to\nment, her ideas about social policy\ncaused trouble, it has also fueled her\nliberal,\" she said. \"And I still have those\nbe first. Her twin sister, Diane Fritel,\nwere changing. She said she began to\nsuccess.\nvalues. But as an administrator, I've\nWithin months of her arrival, she in-\nsaid Donna \"was always the leader.\"\nbelieve that government programs\nShalala and her sister were raised in\nshould involve more give and take, that\nbeen seasoned. I didn't come here ex-\ntroduced the Madison Plan, a contro-\npecting additional resources.\nversial affirmative action effort to in-\na big white frame house with dark\nbeneficiaries should be forced to take\nwas trained in graduate school to\ncrease the number of minority faculty\ngreen trim on the west side of Cleve-\nmore responsibility for their own lives.\nand students. While she fell far short of\nland. Their grandparents on both sides\nShe voices support for Clinton's prom-\n$ a Cabinet officer in the Johnson ad-\nministration,\" she said. \"I was trained\nher goals in attracting minority stu-\nhad immigrated from Lebanon, and the\nise to \"end welfare as we know it\" by\nin life to be a Cabinet officer in the\ndents, Shalala succeeded on most other\nfamily remained closely tied to the\nforcing recipients to find work after\nClinton administration.\"\nLebanese community. Their father,\ntwo years of benefits.\naspects, including opening a multicul-\nBorn in 1941, she was raised in a\nthe late James A. Shalala, ran several\n\"Just because you're a teenager and\ntural center and instituting an ethnic\nstudies requirement.\nsmall grocery stores until he went\nyou have a baby, you shouldn't expect\nto be on the public dole the rest of your\n\"That was a totally gutsy thing to do\nlife,\" she said. \"People ought to be\nfor a new chancellor of any gender, es-\npecially for a woman of a major public\nbankrupt, then sold real estate. Their\ntaught as they grow up that they will\ninstitution,\" said Prof. Susan Friedman.\nmother was a physical education teach-\ngo to work and work most of their\nclose-knit, middle-class family through\nIn part, Shalala is driven by her love\ner who attended night law school when\nlives.\"\nthe post-World War II economic boom of\n(At the same time, it is clear from\nyears. She was in the first class\nof a contest, Friedman said. When\nher twin daughters were in elementary\nschool. She is still, at 81, a practicing\ninitiatives already announced-federal\nPeace Corps volunteers, spent two\nFriedman despaired over conservative\ncriticism, Shalala practically rubbed\nlawyer.\npurchase of vaccines for all children,\nyears in Iran and returned to a liberal-\nThe twins were notorious tomboys,\nexpanded funding to make Head Start\nminded graduate school in the midst of\nher hands in anticipation, saying, \"This\nis going to be exciting.\"\nplaying baseball with the neighborhood\na full-day, year-round program for\nthe anti-Vietnam protests. She says\nAs the first woman named to head a\nboys and softball on a girls' team-the\nmore children and major new federa.\nshe smoked marijuana as a college stu-\nWest Boulevard Annie Oakleys-\nregulation of the health industry-that\ndent and traveled to Washington for\nBig 10 university, Shalala was keenly\ncoached by George Steinbrenner, now\nShalala and the Clinton admi ation\naware of the symbolic importance that\npeace demonstrations.\nwould attach to her treatment of the\nowner of the New York Yankees. Once\ncontinue to see government as a pow-\nFor all her professional seasoning,\nShalala can still sound the misty-eyed\nathletic program. Robert F. Wagner\nthey tied up a neighborhood boy and\nerful force in improving the welfare o\nJr., former deputy mayor of New York\nthrew him in a pit.\nsociety.)\nidealist, painting her past and present\nand a longtime friend, remembers her\n\"We never wore dresses if we didn't\nShalala spends a fair amount of ener\nin grandiose, quixotic terms. At the\ngy convincing people that she is indeed\nDecember news conference when Clin-\nwalking into a Japanese restaurant car-\nhave to,\" said Fritel, who lives on a\nfarm in North Dakota with her hus-\na \"new\" Democrat in the Clinton mold.\nton announced her appointment, she\nrying \"this enormous wad of maga-\nzines\" on college sports. \"She was in no\nband and four children. The girls\n\"My ideas have evolved. I'm not\nthought back 30 years. \"That was also\nplayed tennis competitively, and \"Don-\nafraid of growing up. I'm not i ure\na time of great hope,\" she said. \"In fact,\nway an expert on college football,\" said\nWagner, but she \"mastered it in no\nna always won,\" her sister said. Their\nabout that. I think that's okay,\" she\nI remember writing on my Peace\ntime.\"\nmother still holds a national title for\nsaid. And finally: Watch what we\nCorps application that I wanted to\nmake a better world. I still have that\nher age group.\ndo, not what you think we were.\"\nTwo years into her tenure, Shalala\nIn high school, Shalala served as edi-\nLike the kid taking her personal\nfired the athletic director and the foot-\ndream.\" But her professional life has brought\nball coach, replacing them with a popu-\ntor of the student newspaper, the\nbow, Donna Shalala wants all of us to\nlar alum and a Notre Dame coach.\n\"West Tech Tattler,\" where she is re-\nwatch her. Much of what happens in\na series of choices forcing her in ways,\nMany say the athletic program is\nmembered as \"a real taskmaster\" by\ngovernment over the next four years\nbig and small, to compromise. In the\n1970s, as a director of the Municipal\nstronger now than it has been for\nPaula Slimak, who worked for her.\nwill happen at HHS, an agency that\n\"She was so driven, you did not want to\nspends 40 percent of the federal budg-\nAssistance Corp., the panel charged\nyears.\nwith rescuing New York City from its\n\"This five-foot woman, to watch her\ncross her.\" But Slimak, who has kept in\net, she argues. \"That's why I wanted\nfiscal crisis, Shalala and the other di-\ndeal with football she has a good\ncontact with her over the years, also\nthe job. The responsibilities are\nrectors proposed a long list of painful\nsays Shalala was her idol.\nawesome. Awesome is the word.\nsense of the jugular,\" said Marian\nWright Edelman, a friend of Shalala's\nThings weren't always easy. Shalal-\nAt best, I'll be a tugboat captain. It's an\nretrenchments, including new taxes\nand president of the Children's De-\na's father lost his business the year she\nextraordinary opportunity in leader-\nand cuts in the work force.\nIt was a nightmare for Shalala and\nfense Fund, whose board Shalala\ngraduated from high school, leaving no\nship. But frankly, it's very scary.\"\nother liberals on the board, said Felix\nmoney to pay for college expenses. Fri-\nThe crash of reality: Donna Shalala\nchaired.\nFinally, Shalala was extraordinarily\ntel said relatives helped her sister buy\nis scared? It is, for her, an extraordi-\nG. Rohatyn. the investment banker\nwho still directs MAC. They all took a\ngood at fund-raising, bringing in $400\nclothes, and Shalala scrambled around\nnary moment of modesty. But it\nmillion from private donors.\nand won several scholarships.\nin a breath, and then she is hersel:\nbeating in the press. But Shalala was\n\"The consensus was that she was a\nWhen she returned home for her\nagain, describing with utter surety how\n\"rock solid,\" he said. \"She understands\nfirst visit from college-she attended\nshe will go about it, how she will exe\nthere's no painless alternatives to any-\ngreat chancellor. But there was a divi-\nsion of opinion,\" said Prof. Ed Cortez.\nWestern College for Women, in south-\ncute her plan to make the world a bet\nthing.\" In her most difficult decision at the\n\"The old guard said, 'Who is this little\nem Ohio-she had \"this funny accent,\"\nter place.\nUniversity of Wisconsin, Shalala ruled\nlady coming from New York wheeling\nher sister said, which she had appar-\nStaff writer Dan Balz and special\nagainst students who wanted her to\nand dealing and moving too fast.'\nently picked up from East Coast class-\ncorrespondent Margaret Mason\nban ROTC from campus because it dis-\nMany on the faculty didn't know\nmates. \"We thought they had an uppity\ncontributed to this report.\ncriminated against gays. She agreed\nwhat to make of Shalala, who insisted\naccent. My father said, 'You're home\nwith the students, she said, but felt as\non being called \"Donna,\" drove herself\nnow, you can leave the accent be-\naround in a Jeep Cherokee and roamed\nhind.'\nchancellor she couldn't grant their de-\nmands because the only way for some\nstudents to attend college is through a\nROTC scholarship.\nIt was the way she handled that con-\nfrontation that soured some students\non her methods. One day she emerged\nfrom her office to face hundreds of pro-\ntesters, stood before them and turned\nthem down. Then she bought them piz-\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\nza.\n2/2\n25\"\nEPA Orders Decade of Oil Cleanup a\nTa ik Farm\nMONT.\nBy D'Vera Cohn\nThe oil storage facility is oper-\ncused mainly on stopping the oil\nCO.\nWashington Post Staff Writer\nated by Star Enterprise, which is\nfrom spreading, and those pumping\nMD.\nowned by Texaco Marketing and\nefforts will continue. The new order\nThe Environmental Protection\nRefining, and by Saudi Refining Inc.\nVA.\nis aimed at reducing the amount of\nD.C.\nAgency has ordered a Texaco af-\nThose three companies, plus Tex-\noil contamination and restoring the\nEnlarged\nfiliate to begin work on a long-term\naco, which used to run the facility,\nenvironment as much as possible.\narea\nP.G.\ncleanup-expected to take a decade\nwere named in the order.\nOfficials said that deciding on a pre-\nFAIRFAX\nCO.\nCOUNTY\nor more-of a Fairfax County\nStar spokesman Shawn Frederick\ncise cleanup method will take about\nP.W.\nneighborhood polluted by a giant\ntwo years.\nCO.\nunderground oil leak.\nThe federal order requires Star\nThe order, signed last week and\nWe can 't let this\nand the other three companies\nFairfax City\n50\nreleased yesterday, follows a break-\nlinked to the leak to test local air\nARLINGTON\ndown in negotiations over terms of\nBLVD.\nthe cleanup between the EPA and\ndrag on.\nand water to enable the EPA to de-\nOLD LEE\ntermine whether the leak poses any\nHWY.\nAccotink\nFAIRFAX\nthe four owners of a Fairfax City oil\n- Kenneth Markowitz\nCreek\nrisks to residents' health and the\nCO.\nstorage facility linked to the leak.\nEPA assistant regional counsel\nenvironment. Benzene in oil vapors\n3)\n\"We have a responsibility to pro-\ntect human health and the environ-\nsaid that negotiations with the EPA\nhas been linked to cancer, respira-\nPICKETT\nFairfax\nbroke down because the oil compa-\ntory problems and other illnesses.\nRD.\nment,\" said Kenneth Markowitz,\nnies were worried that they would\nIn about a year, the EPA will is-\nCity\nEPA assistant regional counsel.\nlose influence in decisions concern-\nsue a report describing any health\n\"We can't afford to wait. We can't\nPickett Road\ning the years-long cleanup if they\nand environmental risks that the oil\ntank farm\nlet this drag on.\"\nsigned an agreement with the fed-\ncompanies will use to form a plan to\nStar Enterprise, a Texaco affil-\neral agency.\nreduce the oil contamination. The\nliate, already is pumping out oil con-\nWhen the EPA issues such an or-\nlong-range cleanup probably will\ntamination underneath the Mantua\nMantua\nder on its own, oil companies can\ninclude expanded pumping efforts,\nand Stockbridge neighborhoods.\nappeal in court if they disagree with\nand the oil companies will be re-\nTOVITO\nThe leak was discovered in Septem-\nDR\ndecisions the agency makes on a\nquired to test different methods\nber 1990; oil from it-an estimated\ncleanup method or other matters,\nbefore making a cleanup proposal to\n200,000 gallons covering 21\nFrederick said.\nthe EPA.\nacres-has polluted storm sewers\nThree other oil companies that\nThe EPA must approve any long-\nStar Enterprise\nand back yards.\nalso do business at the Pickett Road\nterm remedy, after holding a public\nsite\nFour families were evacuated\ntank farm-Amoco, Chevron and\nhearing.\nbecause of the leak. Dozens more\nCitgo-are not affected by the or-\nThe federal agency plans to brief\nLITTLE\nhave signed agreements to settle a\nder because they are not blamed for\nlocal residents on details of the\nRIVER\n0\n1/4\nTNPK\nlegal claim and sell their houses to\nthe contamination.\ncleanup order at a community\nMILE\nTHE WASHINGTON PUST\nTexaco.\nCleanup activity so far has fo-\nmeeting on April 22.\nWater Inspections Called Lax\nGAO Says Many States Are Failing to Ensure Supplies Are Safe\nBy Tom Kenworthy\nfederal Safe Drinking Water Act.\n\"This new information raises a\nWashington Post Staff Writer\nUnder those agreements, states are\nhuge warning sign that millions of\nrequired to conduct periodic on-site\nAmericans can no longer simply\nLargely because of a lack of funds\ninspections of water systems. EPA\nturn on their taps and be assured\nand lax federal oversight, many\nrecommends more than a dozen\nthat their water is safe to drink,\"\nstates are doing an increasingly\nitems to review, ranging from me-\nsaid Erik Olson, a senior attorney\npoor job of inspecting public water\nchanical protections against con-\nwith NRDC.\nsupply systems for deficiencies that\ntamination to operator training pro-\nUnder the federal Safe Water\ncould lead to water quality prob-\ngrams.\nDrinking Act, all public water sys-\nlems, a study by the General Ac-\n\"This new report makes clear\ntems that rely on surface water\ncounting Office has concluded.\nthat states are ill-equipped to de-\nmust have in place by the end of\nThe report by the GAO, re-\ntect and prevent serious drinking\nJune either filtration systems or\nquested by Rep. Henry A. Waxman\nwater contamination problems,\nwatershed protection measures to\nREP. HENRY A. WAXMAN\n(D-Calif.), found that many of the\nsuch as the one in Milwaukee,\" said\nguard against the cryptosporidium\n\"states are ill-equipped\"\nnation's public water systems, par-\nWaxman in a prepared statement.\nparasite that affected the Milwau-\nticularly small ones, need major im-\nWaxman, the chairman of the health\nkee water and another parasite,\nprovements in protecting, treating\nand environment subcommittee of\ngiardia.\nand monitoring water supplies, and\nthe House Energy and Commerce\nThe report by GAO, the inves-\nthat states are routinely inadequate\nCommittee, is sponsoring legisla-\ntigative arm of Congress, studied\nat regularly inspecting for and cor-\ntion sought by the White House to\nhow states conduct so-called san-\nrecting problems.\ncreate a new revolving federal fund-\nitary surveys of their drinking wa-\n: Release of the GAO report comes\ning mechanism to help states im-\nter systems. The agency found that\namid increased concern over the\nprove drinking water facilities.\nmany states conduct the inspections\nsafety of municipal water supplies\n\"This is exactly why we have\ntoo infrequently, fail to follow in-\nsparked in part by last week's con-\ncalled in the fiscal 1994 budget for\nspection guidelines suggested by\ntamination of Milwaukee's water\na drinking water state revolving\nEPA and often do not correct prob-\nsystem by an intestinal parasite that\nfund,\" said EPA administrator Carol\nlems that are uncovered during the\nsickened thousands of city resi-\nM. Browner in reacting to the GAO\ninspections.\ndents. It also coincides with efforts\nreport.\n\"While drinking water officials at\nnow underway in Congress and the\nResponding to the outbreak in\nall levels agree on the importance\nClinton administration to bolster\nMilwaukee, the Natural Resources\nof sanitary surveys in ensuring the\nfederal efforts to ensure safe drink-\nDefense Council yesterday released\ncapability of a water system to pro-\ning water supplies.\ninformation compiled by the EPA on\nduce and deliver safe drinking wa-\nAll states except Wyoming have\nabout 100 large drinking water sys-\nter, EPA has done little to ensure\nagreements with the Environmental\ntems that do not currently protect\nthat sanitary survey programs are\nProtection Agency to administer\nagainst such disease-causing organ-\nconsistently implemented in all\nCAROL M. BROWNER\nthe monitoring requirements of the\nisms.\nstates,\" the GAO concluded.\ncites need for new federal fund\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n26\nAt the Beeline auto body shop in\nJuror's Illness Halts\nPico-Union, a neighborhood with a\nlarge concentration of Central Amer-\nican immigrants, Armando Marquez,\nthe manager, said he had noticed\nBeating Deliberations;\nmore police, and added that he is çon-\nfident authorities are prepared this\ntime for potential violence.\n\"They'll stop it,\" he said. \"They\nCity Remains Anxious\nhave to.\"\nBut, said Mike Nogueires, the 15-\nyear-old son of the owner, \"Every-\nSuch warnings have left the city on\nbody's got guns now. Everybody.\"\nBy Lou Cannon\na strange kind of sun-drenched ten-\nWith little news to report, televi-\nand William Hamilton\nterhooks, as everyone from office\nsion and radio reports are full of spec-\nWashington Post Staff Writers\nworkers to mechanics go about their\nulation about the meaning of the ju-\nLOS ANGELES, April 14-A ju-\nbusiness with one ear turned to the\nry's five days of deliberations. The\ntor's illness abruptly interrupted de-\nradio.\nlonger the jury stays out, said Debhra\ndiberations in the Rodney G. King\nAt the Jordan Downs public hous-\nSantos for L.A. Renaissance, an as-\ncivil rights trial today, prolonging for\ning project in Watts, Benjamin F.\nsistance organization for inner city\nat least another day the city's anxious\nChavis, new executive director of the\nbusinessmen, the more \"people are\nwait for a verdict in the case.\nNAACP, took a ghetto tour with gang\nwondering whether it will be hung.\"\nU.S. District Judge John G. Davies\nmembers who openly discussed last\n\"Everybody is pretty low key,\" said\ngranted the juror's request to visit a\nApril's looting following the first ver-\nHortense Peoples, a spokesman for\nJamily doctor under custody of a U.S.\ndict.\nthe First African Methodist Episcopal\nmarshal. The rest of the jury, which\n\"I got everything I could get,\" said\nChurch, the largest church in south\nhas been sequestered since opening\nGeorge Bogard, 33, an \"original\ncentral. \"But after five days people\nstatements began Feb. 25, was sent\ngangster\" (O.G.) in ghetto parlance.\nare wondering, 'Hey, what's going on\nback to its quarters for the rest of the\nIt was easy, Bogard said, because the\nwith the jury?'\nFormer federal prosecutor and\nDay.\npolice \"got the [expletive] up outta\nThe news that Davies was sum-\nhere.\"\nLoyola University law professor Lau-\nmoning lawyers, defendants and re-\nNow, the cops are everywhere. A\nrie Levenson, who has been monitor-\nporters into the courtroom early this\nhelicopter circled overhead as a uni-\ning the trial, said Davies's decision to\nformed officer in a patrol car trained\nlet the anonymous juror visit a doctor\nafternoon made it appear that a res-\nplution to the case was finally at\nvideocamera in Bogard's direction.\nwas \"basic humanity.\" She said that if\nhand. Instead, his announcement that\nWhat will happen here if the\nthe juror is too ill too continue, fed-\nthe jury had adjourned for the day\n\"wrong\" verdict is rendered? \"You\neral rules stipulate that the case will\nknow that by the first time.\" Bogard\nbe tried by the remaining 11 jurors\nmeant the eight men and four women\nhave now deliberated for five days\nstuck his bulked-up and tattooed\nunless attorneys for both sides say\nwithout a decision, though only for 26\narms in the air like a cop had just\nthey want a 12th juror. In that case\nthe juor would be selected from the\nhours because three of the days were\nthree alternates by lot.\ntruncated.\nWith at least another day of wait-\nThe defendants in the case-Sgt.\nSing in store, city officials again sought\nStacey C. Koon, officers Laurence M.\nto reassure city residents that they\nasked him to, saying, \"Man, ain't no\nPowell and Theodore J. Briseno and\n\"are prepared for any outbreak of vi-\nbrothers gonna put they hands up like\nformer officer Timothy E. Wind-\nColence that could be touched off by a\nthis no more.\"\ncould be sentenced to up to 10 years\n\"verdict. They said some of the fever-\nAnother O.G., \"Sy,\" 34, added, \"If\nin prison and required to pay $25,000\nSish anxiety that seemed to sweep the\nwe was worried about that [exple-\nines if found guilty.\necity early in the week has subsided.\ntive] verdict, you think we would be\nAt the start of what proved to be\n\"It's really quieted down yesterday\nstanding here talking to your [exple-\nnother day of waiting, Koon and his\nand today,\" said Deputy Mayor Mark\ntive]? We'd be holding your (exple-\nttorney, Ira Salzman, tried to break\nFabiani. \"People realize nothing has\ntive hostage.\"\nhe tension at the Edward R. Roybal\nscome true that they've heard.\"\n\"All I'm gonna say,\" continued Sy,\nederal building, where the trial is be-\nSouth-central Los Angeles, scene\n\"is four more white men got away\n18 held. They entered the building\nof much of the rioting last year after\nwith what they been getting away\nhis morning wearing Groucho Marx\nwith for thousands of years.\"\ndasses and false noses.\nthe verdict in the state trial of the\n\"four Los Angeles police officers and\nFred Williams, a former gang\nStaff writers Ruben Castaneda,\n\"one former officer accused of beating\nmember who helped introduce Chavis\n-ynne Duke, Guy Gugliotta, Gary Lee\n\"King, was calm today, except for an\nto these men and now operates a\nand Nell Henderson contributed to\n\"unusually large police presence. \"It\ngrass-roots foundation for recaptur-\nthis report.\n-appears that the rumors are gener-\ning school dropouts, said he does not\nated by neighborhoods that were not\nbelieve the city will explode. But with\naffected or only slightly affected by\none side preparing \"for war,\" he said,\nLast year's unrest,\" said Fabiani.\nthe other side might respond in kind.\nFrankly the neighborhoods that\n\"The city is preparing itself for\nwere the hardest hit last year seem\nwar, and this war seems to be tar-\nto be among the calmest this year.\"\ngeted against these young men that\nFabiani blamed homeowners\nlive in the projects across south cen-\nKoresh Says Manuscrip\ngroups in more affluent neighbor-\ntral,\" said Williams, 34. \"All they feel\n\"hoods for \"irresponsibly spreading\"\nis that the police is out to get them.\"\nsome of the rumors that have circu-\nOf greater concern, said Williams,\n-lated in recent days. An example, he\nwhose group is called the Common\nWill End Waco Standoff\nI, was a group in Los Feliz, an up-\nGround Foundation, is the trial in July\nof the three black men charged with\nA5,\nSper middle class neighborhood north-\na Washington Post Staff Writer\nangels \"ready to punish foolish\nwest of downtown, that reported in\nthe beating of a white truck driver,\nWACO, Tex., April 14-David\nmankind.\"\nits newsletter that a group of Los\nwhen the summer heat could strain\nKoresh pledged today that he and\nBut Koresh appears to predict a\nGAngeles gang leaders had met in Bos-\ntempers even more.\nBut the waiting for this verdict was\nhis more than 90 followers will\npeaceful ending to the 46-day\nton recently to plot targets during a\nclearly getting to many south central\nleave the compound after he com-\nstandoff, which began with the\nSecond riot.\npletes a manuscript that deciphers\nshooting deaths of four federal\nIn Brentwood, an affluent neigh-\nresidents today. Eva Jackson, who\nhorhood on the city's west side, res-\nruns a janitorial business, said she\nthe seven seals of a biblical apoc-\nfirearms agents and perhaps as\nhad kept her children out of school\nalypse, according to his attorney\nmany as six cultists.\n\"Idents were warned at a recent\nDick DeGuerin of Houston.\nUpon the completion of the\nneighborhood watch meeting to stay\nsince the jury began deliberating. \"I\nIndoors if violence erupts again and\nreally wish this would be over,\" she\nDeGuerin, who spoke with Ko-\nmanuscript, \"I will be freed of my\nsaid, \"because the kids are driving me\nresh for about an hour on the tele-\nwaiting period,\" DeGuerin quoted\ntold to turn off lights so drive-by gun-\nmen would not have silhouettes for\ncrazy.\"\nphone, said no specific time frame\nKoresh as saying in his letter. \"I\nhope to finish as soon as possible\nwas given for completion of the\nMargets.\nand stand before man and answer\nmanuscript. However, Koresh has\nany and all questions regarding my\nnearly completed the first seal and\nactivities.\"\nwas working \"night and day\" to\nIn a news conference earlier\nfinish the other six, DeGuerin said.\ntoday, the FBI said cult attorneys\nIn addition to announcing Ko-\nwould not be allowed full access to\nresh's plans to leave the com-\nKoresh until he gives the specifics\npound, DeGuerin also released\nof surrender.\nexcerpts of a third letter from Ko-\nThe FBI declined to comment\nresh that warns of an earthquake\non Koresh's latest overture untill\nin Waco and the presence of four\nThursday.\n27\nTHURSDAY, APRIL 15, 1993\nTHE\nION\nCourt Won't Adjust\n1990 Census Totals\nCount Called Questionable but Not 'Arbitrary'\nA27\ntation and federal funds because\nBy Barbara Vobejda\nWashington Post Staff Writer\ncensus numbers are used to draw\npolitical districts and distribute fed-\nA federal judge has refused to\neral dollars.\noverturn a Bush administration de-\nMcLaughlin also ordered that the\ncision to rely on \"unadjusted\" 1990\nadjusted population figures be made\ncensus numbers for congressional\navailable to communities.\nreapportionment. New York City\nPeter Zimroth, one of the attor-\nand other communities had argued\nneys representing the plaintiffs,\nthat figures derived from a statis-\nsaid while he would have preferred\ntically weighted sample were more\naccurate than the actual head count.\nThe decision by U.S. District\nJudge Joseph M. McLaughlin in\nThe Census Bureau\nNew York said former commerce\nsecretary Robert A. Mosbacher's\nestimated it missed\ndecision to use the unadjusted fig-\nures was not \"arbitrary and capri-\nabout 3 million\ncious\" and therefore could not be\noverturned. At the same time, Mc-\nindividuals in the\nLaughlin said he felt the adjusted\nfigures-those resulting from the\n1990 census, most\nsample and designed to compensate\nfor millions of persons missed in the\nof them minorities\nactual census-were more accurate\nand, if the decision had been up to\nliving in big cities.\nhim, he would likely have relied on\nthose numbers.\na ruling overturning Mosbacher's\n\"The court concludes that the\ndecision, \"this is in many ways a\nsecretary's\nultimate decision\nvery encouraging decision because\nagainst adjustment cannot be char-\nafter a lengthy trial he found that\nacterized as arbitrary or capri-\nthe adjusted counts were more ac-\ncious,\" the opinion stated. \"Plaintiffs\ncurate than the unadjusted\nhave made a powerful case that [the\ncounts.\"\ncommerce secretary's] discretion\nZimroth, a New York-based at-\nwould have been more wisely em-\ntorney with the Washington law\nployed in favor of adjustment. In-\nfirm of Arnold and Porter, who\ndeed, were this court called upon to\nhandled the case pro bono, argued\ndecide this issue de novo, I would\nthat the decision could encourage\nprobably have ordered the adjust-\ncommunities to challenge political\nment.\"\ndistricts and other census-based\nMcLaughlin's opinion, dated\ndecisions. That, he said, raises the\nTuesday, says the plaintiffs illus-\nquestion of how the Clinton admin-\ntrated that adjustment is statisti-\nistration would react if put in a po-\ncally feasible and \"would improve\nsition of deciding whether to de-\nthe quality of the counts for most\nfend the unadjusted census counts.\npurposes, while ameliorating the\nRep. Thomas C. Sawyer (D-\nprofoundly disturbing problem of\nOhio), who heads the House Post\ndifferential undercounts.\"\nOffice and Civil Service subcommit-;\nThe Census Bureau estimated it\ntee on census, statistics and postal\nmissed about 3 million individuals in\npersonnel, said the ruling \"does not\nthe 1990 census, most of them mi-\ndetract from the fact that Secretary\nnorities living in big cities. About\nMosbacher's decision against ad-\nthree dozen counties, states, organ-\njustment was wrong. He just made\nizations and big cities argued that\nthe wrong decision without violat-\nthey were unfairly denied represen-\ning the law.\"\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n28\nU.S., Japanese Leaders\nFaced With Culture Clash\nU.S., Japan\nJAPAN, From A20\nscheduled a 90 minute face-to-face\nsession followed by a working lunch\nDisagree on\nTreasury Lloyd Bentsen-both in\nwith back-up staff present, according\nTokyo this week for the Group of\nto the Japanese Foreign Ministry.\nSeven meetings on aid to Russia-\nBut the American insistence on\nSummit Focus\ngot a detailed look at the big stimulus\nresults, contrasting with the Japa-\nplan, which was timed for release\nnese focus on process, could lead to\njust before Miyazawa flew to Wash-\ndifficulties.\nington.\nOne problem the two men face is\nBy T. R. Reid\nBriefing American reporters later\nsomething that American business\nWashington Post Foreign Service\non those meetings, American offi-\npeople here always learn about in\ncials gave the plan mixed reviews.\ntheir cross-cultural training classes:\nTOKYO, April 14-Japan's Prime\nThey said Christopher had called the\nthe American and Japanese ideas of a\nMinister Kiichi Miyazawa is sched-\nprogram \"a useful first step\" but in-\n\"meeting\" are somewhat different.\nuled to arrive in Washington Thurs-\ndicated that Japan must do more.\nAmerican meetings tend to have a\nday for an economic summit that\nU.S. media, accordingly, reported\nbeginning and an end, and people like\nseems to have a strong chance of\nthat the American leaders responded\nto walk out afterward with a sense\nturning into a transpacific culture\ncooly to the Japanese package.\nthat some result has been achieved.\nclash.\nAnd yet Japanese officials, briefing\nJapanese meetings tend to be more\nThe contemplative 73-year-old\nthe press on the same top-level\namorphous, and a meetings here can\nJapanese leader and his entourage\nmeetings, reported a strongly pos-\nend successfully if they do nothing\nsay they want his meetings Friday\nitive response from the visiting\nmore than establish the format for\nwith President Clinton to focus on the\nAmericans. The Japanese media con-\ncarrying out the next meeting.\n\"process of dialogue\" and the need for\nveyed this upbeat view.\nAt Friday's meeting, the result-\nboth countries to \"be patient\" while\nOne Japanese diplomat involved in\nminded American officials have made\ndeveloping a long-term relationship.\nthe meetings, Toshi Ozawa of the\nclear, Japan's trade surplus with the\nThe hard-charging 46-year-old U.S.\nForeign Ministry's North America\nUnited States will be the key item on\npresident, in contrast, is aiming for\ndesk, seemed amazed to hear that\nthe agenda-or at least, on Clinton's\nspecific near-term results on trade\nthe U.S. side had any reservations.\nagenda. In addition to the large stim-\nissues and has not exuded patience in\n\"We did not hear anything unenthu-\nulus package announced this week,\nhis recent comments about Japan.\nsiastic,\" from Bentsen and Christo-\nthe American side wants Japanese\nThe Japanese say Miyazawa is ea-\npher, he said. \"There has been no\ncommitments to increase imports in\nger to discuss a broad range of mu-\ncomment that showed a negative\ncertain specific trade sectors, includ-\ntual concerns; Japan will present pro-\nassessment.\"\ning computers, telecommunications\nposals ranging from steps to deal\nA somewhat smaller risk of mis-\nand auto parts.\nwith pollution in Eastern Europe to\nunderstanding arose when Christo-\nThe more process-oriented Miya-\nbetter methods of teaching Japanese\npher reportedly told Japanese offi-\nzawa seems to have different goals.\nin U.S. schools. The Americans, how-\neials that the United States wants\nAsked this week to describe the con-\never, seem to be focused like a laser\nJapan to rebuild the economic\ncrete ideas he is taking to Washin-\non economic issues, particularly Ja-\nstrength it had in the late 1980s.\nton, the prime minister replied, \"I\npan's large and growing trade surplus\nChristopher evidently was referring\nthink closer consultation between\nwith the United States.\nto the desirability of a Japanese eco-\nour two governments.\"\nSuch differences of goal and focus\nnomic boom fueled by domestic de-\nThis leaves the possibility that\ncan cause misunderstandings, as was\nmand rather than by exports.\nboth sides could walk out of the\nevident here today.\nBut the late 1980s, known as the\nWhite House dissatisfied Friday af-\nAfter Miyazawa's government an-\nera of the \"bubble economy,\" are\nternoon. Clinton will not be pleased if\nnounced a record-setting $115 billion\nseen here today as years of embar-\nthe Japanese won't make clear\neconomic stimulus package-a plan\nrassing and wasteful excess. To urge\npledges to reduce the trade gap.\ndesigned to spark Japan's economy\nthe Japanese to repeat it is roughly\nMiyazawa will feel unappreciated if\nand thus increase its imports from\nlike urging Americans to revert to\nrecent Japanese steps, such as the\nAmerica-officials held special meet-\nthe \"me generation\" days of the mid-\nbig stimulus package and the coun-\nings to explain the program.\n1980s\ntry's agreement to offer major finan-\nU.S. Secretary of State Warren\nWhether Clinton and Miyazawa\ncial aid to Russia, get lost amid a\nChristopher and Secretary of the\ncan avoid this kind of problem at the\nlong list of specific trade demands.\nSee JAPAN, A23, Col. 1\nWhite House Friday is not clear. At\nOn the other hand, both men\nleast there will be no language prob-\nwould benefit from a successful\nlem; the erudite Miyazawa speaks\ntranspacific partnership, and that\narticulate English.\nmutual political fact of life may over-\nAccordingly, the leaders of the\ncome the built-in cultural differences\nworld's two richest nations have\nsurrounding Friday's session.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n29\nU.S. Presses Its Allies\nFor More Aid to Russia\nWashington to Unveil New $1.8 Billion Contribution\nA20\nBy Daniel Williams\nWashington Post Staff Writer\nTOKYO, April 14-The United States\nmade preparations to unveil a new $1.8 bil-\nlion package of aid to Russia today but its\nallies were largely cool to American re-\nquests that each of them provide more bi-\nlateral assistance.\nSecretary of State Warren Christopher\nappealed for the new assistance from the\nGroup of Seven major industrialized democ-\nracies meeting here to work out a large aid\npackage for Russia. He went further than\nusual to warn of global adversity should re-\nformist president Boris Yeltsin lose an April\n25 national vote of confidence. The country\nwould take a \"major step backwards,\" he\nsaid, and it would jeopardize an accord on\nnuclear weapons reduction as well as Rus-\nsia's current benign foreign policy.\nChristopher called Yeltsin \"far superior\"\nto his rivals in the conservative Russian\nlegislature. But his comments did not ap-\npear to set off an alms race among several\nprominent allies in the Group of Seven.\nThe Japanese, swallowing hard to come\nup with their own $1.8 billion bilateral pack-\nage, said they did not expect to give more.\nGermany said it had done enough in the\npast, when it provided Russia with billions\nof dollars to speed reunification with East\nGermany. Italy pleaded economic hard\ntimes.\nThe other members, France and Canada,\nmade reference to their own domestic\nwoes, participants in the meeting said. Brit-\nain, expected to increase its aid somewhat,\ncautioned that Russian cooperation on for-\neign policy issues must continue for aid to\nflow.\nLack of enthusiasm could prove an em-\nbarrassment not only to Yeltsin but to Pres-\nident Clinton, who has invested much per-\nsonal energy and prestige in trying to whip\nup support for the Russian leader. In the\npast two days, Clinton has phoned both Ger-\nman Chancellor Helmut Kohl and Japan's\nPrime Minster Kiichi Miyazawa to ask that\nthey open their purses.\nThe Group of Seven is aiming to piece\ntogether a complex package of aid worth\nabout $30 billion, with more than half com-\ning from global lending agencies, such as\nthe International Monetry Fund and World\nBank. Clinton also wanted programs that\nwould have a quick impact on public opinion\nin Russia during the political struggle ex-\npected to persist beyond April 25, but it is\nSee GROUP, A23, Col. 1\nTHURSDAY, APRIL 15, 1993\n1/2\nTHE WASHINGTON POST\n20\nPlans Larger A'd Package for Russ'a, Seeks F elp From A l'es\nGROUP, From A20\nThe reluctance of G-7 members\nG-7 AID TO RUSSIA\nto raise their contributions reflects\nnot clear how much each G-7 coun-\nboth their internal economic pro-\ntry is willing to give.\nMAJOR CATEGORIES OF ABOUT\nbems-most are in recession-and\n$30 BILLION IN AID TO RUSSIA\nThe United States is expected to\nUNDER DISCUSSION IN TOKYO\ndoubt that Russia, in political tur-\nannounce its new bilateral assist-\nYESTERDAY AND TODAY:\nmoil, would use aid effectively.\nance Thursday, U.S. officials said.\nIn this atmosphere of skepticism,\nThe package combines money for\n$15 billion in\nChristopher sometimes sounded\ninvestment in Russia's leaky oil and\nI.O.U.\ndebt rescheduling\nlike a college fund-raiser addressing\ngas industry, housing for demobi-\nreluctant alumni. Sitting among the\nlized officers in the downsized Rus-\nministers at a long oval table at a\n$10 billion in\nsian military, trade and investment\nluxury hotel here, he said that as\nassistance from the\npromotion, cultural exchanges and\nInternational\npart of its package, the United\nsupplies of food and medicine.\nMonetary Fund\nStates would put up $500 million to\nWashington will also provide $400\ninvest in newly privatized Russian\nmillion to fund continued disman-\nindustries, but only if the allies sup-\n$4 billion to\nply a combined $1.5 billion.\ntling of Russia's nuclear weapons\nconvert state-run\nThe money would be used to\nsystems. At a summit meeting with\nfactories to private\nmodernize industry and to provide\nYeltsin in early April, Clinton\nownership, including:\ntraining for laid off workers. Social\npledged another $1.6 billion, more\n$2 billion from\nservices once offered by state fac-\nthan half of it in food credits.\nthe European Bank\ntories would be subsidized during a\nBoth aid packages are designed\nfor Reconstruction\ntransition period during which\nto reduce the adverse effects of\nand Development\nschools and hospitals pass to local\nRussia's shift to a market economy,\nand the World Bank\ngovernment control. U.S. officials\ntransit likely to cause layoffs and\ndescribed the program as the most\nsocial dislocation.\n$1.5 billion from\ninnovative of the bilteral proposals.\nToday, Japan announced its aid\nother G-7 nations\nThe allies are expected to respond\ndespite an unresolved dispute with\n$500 million\nto the initiative sometime before\nRussia over four islands in the\nfrom the United\nthe G-7 heads of government meet-\nKuril chain, seized by Moscow at\nStates\ning to be held in July, also in Tokyo.\nthe end of World War II. But U.S.\nNOTE: Group of Seven members are\nThey may not be easy to per-\nUnited States, Japan, Germany,\nofficials criticized the package be-\nsuade. Klaus Kinkel, Germany's\nTreasury Secretary Lloyd Bentsen, center, poses with his Japanese counterpart Yoshiro Hayashi, right, and Japanese\nBritain, France, Italy and Canada.\ncause it was made up mostly of\nforeign minister, noted that Ger-\nForeign Minister Kabun Muto before the Group of Seven meeting in Tokyo.\nis\nloans, which would probably be\nSOURCES: Reuter, Associated Press,\nmany had provided billions of dol-\nKRT Graphics\nTHE WASHINGTON POST\nlars in assistance to Russia and it\naired in Russia to act as peace keep-\nwould nonetheless produce the\nficials said. \"We have to show WISD\ntagged to purchases of Japanese\nask Miyazawa for more at a meet-\nwas not clear that further money\ngoods. \"It's business as usual,\" said\ners in countries along its borders.\ndesired results. \"This meeting\nare all in this together and willing to\nmight come from Bonn. \"Now it is\nNontheless, Britain announced aid\nsends a signal to the people of Rus-\nput domestic problems behind us,\" al\na U.S. official.\ning Friday in Washington. \"Japan\nthe others' turn,\" he told German\ntotalling $500 million, mostly in\nsia that the major industrialized\nsenior official said.\nMembers of the Japanese dele-\nhas financial constraints and\nwe\ninterviewers.\nexport loans and may make further\ndemocracies are prepared to\nThe proposed new package is\ngation appeared miffed that Treas-\nhave made our best efforts, and I\nDouglas Hurd, Britain's foreign\ncommitments Thursday.\nassist them not in some abstract\n$700 million above Clinton's ren\n;ury Secretary Lloyd Bentsen, who\npersonally don't expect we would\nsecretary, tied aid to continued\nAn Italian delegate pointed out\nway but in a down-to-earth, tan-\nquest for Russian aid in his newl\nis here with Christopher, failed to\n[be] asked for an additional contri-\nRussian cooperation to peace ef-\nthat several hundred millions of dol-\ngible way.\"\nbudget. Administration officials cau-\"\n;endorse the program wholeheart-\nbution,\" said a Japanese delegate.\nforts in Bosnia-Herzegovina, as well\nlars of old credits to Russia re-\nClinton has been lobbying Con-\ntioned that the numbers could'\nedly.\n\"We have done our best. Some\nas the withdrawal of Russian troops\nmained unpaid, implying that Italy\ngress to fund his new aid package\nchange by Thursday because of\nIn addition, they were taken\ngrants, some loans. It's not so mis-\nfrom the Baltic states. He also ex-\nwould not give more.\nand a show of reluctance from the\ncontinuing negotiations with the\naback by reports that Clinton would\nerable,\" the delegate said.\npressed concern about proposals\nChristopher said the meeting\nG-7 may harm the effort, U.S. of-\nG-7 and with Congress.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n2/2\n' rade Surplus I angs\nOver U.S.-Japan Talks\nStimulus Plan Seen as Only Partial Solution\ncreasing U.S. jobs and helping the\nBy Paul Blustein\nU.S. economy, lies with the macro\nWashington Post Foreign Service\nfactors-the rate of Japanese eco-\nTOKYO, April 14-No matter\nnomic growth and the exchange rate\nwhat President Clinton and Japanese\nof the yen versus the dollar,\" said C.\nPrime Minister Kiichi Miyazawa an-\nFred Bergsten, director of the Insti-\nnounce after their White House meet-\ntute for International Economics and\ning Friday, one central question will\na prominent advocate of the macro\nloom: What are the Japanese doing to\napproach.\nbring down their stubborn trade sur-\nBergsten's institute calculates that\nplus with the United States?\na 1 percent increase in the Japanese\nMiyazawa, who is to arrive in the\ngrowth rate reduces the nation's sur-\nUnited States Thursday, will tell Clin-\nplus by about $5 billion, of which\nton that Japan is planning to bring its\nsomething in excess of $1 billion rep-\ntrade into better balance by imple-\nresents increased sales of U.S. prod-\nmenting a record government spend-\nucts in Japan. And a 1 percent rise in\ning package intended to boost the Jap-\nthe value of the yen against the dollar\nanese economy, according to\nalso causes the Japanese surplus to\nJapanese officials.\nshrink by about $5 billion, although it\nAnd, the officials said, he will indi-\nusually takes a year or two for such\ncate that Japan is willing to allow the\nan effect to show up in the trade num-\nyen to rise, making foreign goods\nbers.\ncheaper and more attractive relative\nUnder pressure from Washington,\nto Japanese goods. The yen has al-\nJapan adopted a strong macro policy\nready surged close to an all-time high\nin the mid-1980s, spurring its econo-\nagainst the U.S. dollar in recent days.\nmy to grow at very fast rates and al-\nThe idea is to increase Japan's ap-\nlowing the yen to more than double in\npetite for foreign goods and, ultimate-\nvalue. The result: Japanese imports\nly, reduce its trade surplus rather\nincreased by about 60 percent in vol-\nthan busting markets open or lower-\nume terms from 1985 to 1990. And\ning invisible trade barriers such as the\nwhen the economy slumped in 1992,\ncozy alliances among Japanese compa-\nso did imports.\nnies.\nThe apparent effectiveness of mac-\nSuch \"macro\" policies that try to\nro policies explains why Clinton ad-\nboost demand seem to work. They\nministration officials have been prod-\nhave helped Japan significantly in-\nding Tokyo to adopt as big a\ncrease imports and reduce its surplus\npump-priming package as possible.\nin the past, and, if properly imple-\nTreasury Secretary Lloyd Bentsen\nmented, probably will do so again,\nhas made it clear that be is skeptical\nmany economists say.\nthat the $115 billion plan unveiled\nBut even Japanese officials admit\nTuesday is adequate.\nthat the measures Tokyo is contem-\nMeeting with Japanese Foreign\nplating will not eliminate Japan's\nMinister Kabun Muto this week, Sec-\nchronic trade surplus, which hit a re-\nretary of State Warren Christopher\ncord $111 billion in the fiscal year\neven urged Japan to return to the\nthat ended March 31.\neconomic policies of the late\nNeither will the measures address\n1980s-a bit of a stunner for the Jap-\nthe complaints that foreign companies\nanese, since the boom of that time\nfind it exceptionally difficult to com-\nwas accompanied by a destabilizing\npete in Japan in particular sectors\n\"bubble\" in stock and land prices.\nsuch as glass, construction and super-\nThe effectiveness of raising the\ncomputers.\nyen explains why Japanese officials\n\"The big money, in terms of in-\nSee TRADE, D16, Col. 1\nTrade Surplus Seen as Ongoing U.S.-Japan Problem\nTRADE. From D11\nPerhaps more important, macro\nother over the long term.\neven if Japan's economy grows at an\nhave igen willing to see the currency\npolicies will not help with \"X-Fac-\nIt is over these sorts of problems\nacceptable pace, and even if the yen\ntors\"-a term coined by Glen S. Fu-\nthat Washington and Tokyo appear to\nappreciate over time, although they\nappreciates gradually, a trade surplus\nkushima, a former U.S. trade negotia-\nbe in danger of a serious rift.\nhave warned in recent days that its\non the order of $50 billion would like-\ntor, for the peculiar problems many\nNoboru Hatakeyama, the vice min-\nascent-has been too fast. The yen has\nly remain.\nforeign companies encounter trying\nister for international affairs at the\nsurged more than 10 percent against\nIndeed, many economists argue\nto sell to the Japanese.\nMinistry of International Trade and\nthe dollar since the beginning of the\nthat Japan will never get rid of its sur-\nIn a magazine commentary, Fuku-\nIndustry, said this week that on a re-\nyear, arousing fears that Japanese ex-\nshima notes that a company offering\ncent trip to Washington he was ap-\nplus unless it undergoes a far more\nradical transformation than anything\nporters might be hit so hard that the\nthe cheapest, best-quality product will\npalled by the number of administra-\nrecession would deepen anew.\ntion officials who argue that Japan's\nnow being contemplated. Land poli-\nnot always win the sale in Japan be-\nThe appreciation of the yen, how-\ncause of factors that \"are only re-\n\"unique\" market barriers necessitate\ncies would have to be drastically\nmotely 'economic' criteria from an\ncreating import targets.\nchanged, for example, to allow bigger\never, makes it very expensive for for-\neign companies to build facilities or\nAmerican point of view.\"\nJapan, he added, will never yield to\nhomes so that people would have\nstation people in Japan, which may re-\nU.S. demands for specific import\nroom for more consumer goods.\nAmong these, he said, are the ties\ngoals under threat of retaliation, be-\n\"A country that has had a trade\ntard imports somewhat.\nthat bind members of keiretsu-cor-\ncause that is \"managed trade.\"\nsurplus year in and year out e\n\"It's a mixed blessing,\" said William\nporate families-together, or even\nFarrell, executive director of the\n\"The main road for having an im-\n1960,\" said Kenneth Courtis, cl\nthe ties that bind people who went to\nAmerican Chamber of Commerce in\npact on the balance of trade is with\neconomist at Deutsche Bank Capital\nthe same college and therefore feel\nthe macro approach,\" Hatakeyama\nMarkets (Asia) Ltd., \"is a country that\nJapan.\nmore comfortable dealing with each\nsaid firmly. But he acknowledged that\nis structurally under-consuming.\"\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n32\nU.S. Plays Down Russian Space Role\n'No Decisions' Have Been Made on Participation in Station Redesign\nPIP\nBy Kathy Sawyer\nNASA began its redesign effort last month at the\nWashington Post Staff Writer\ndirection of the White House, which wanted the current\n$31-billion price tag for the U.S. orbital laboratory cut\nThe administration's reported plan to have the Rus-\nin half. Reaction to the Russian connection is the latest\nsians and the United States build a space station togeth-\nin a series of political brush fires related to the redesign\ner has raised doubts at the highest level.\nthat have preoccupied the White House science office in\n\"Is that a good idea?\" mused NBC's \"Tonight Show\"\nrecent weeks. The administration has placed stringent\nhost Jay Leno Tuesday night. \"Know what that means?\nspending and schedule limits on the NASA redesign\nWe're gonna wind up with a space station that has a\nteam. Some of those familiar with the process say it is\n$30 million toilet-and no toilet paper.\"\nan almost impossible task and that the difficulty has\nLeno apparently was not alone in his skepticism.\nmotivated Goldin to look increasingly to the Russians\nThe White House had already moved that same day,\nand their hardware for salvation.\nin a letter to the NASA admininstrator, to limit what it\nGoldin emphasized yesterday that NASA's role is\ncalls \"confusion regarding the participation of the Rus-\nonly to be \"an honest broker\" among many competing\nsians\" in the National Aeronautics and Space Adminis-\ninterests by presenting data to the White House, which\ntration's effort to redesign its planned space station.\nwill make the final decision on the space station design.\nThe April 13 letter from White House science advis-\nHe praised Gibbons's letter for clarifying the ground\ner John H. Gibbons to NASA administrator Daniel S.\nrules. \"There is no hidden agenda.\"\nGoldin, which was obtained by The Washington Post,\nThe White House also wants to mollify the space sta-\nsays, \"I would like to make it clear that the White\ntion program's international partners: Canada, Japan\nHouse has made no policy decision to focus our space\nand 10 European nations. Gibbons notes in the letter\nstation redesign effort around present or future Rus-\nthat the administration had consulted them about the\nsian capabilities. In particular, NASA should not limit its\nRussian arrangement, but sources say some agreed\nredesign options to those compatible with the orbit of\nonly reluctantly. The partners have spent several billion\nthe Russian Mir space station.\"\ndollars on their contribution to the project, and it is not\nThe White House is uneasy that expectations for co-\nclear how a new design will accommodate them.\noperation with the Russians may have been raised too\nRussian and American scientists have long pressed\nhigh, too fast, one official said. \"It's a question of pace.\"\nfor closer cooperation between the two superpowers.\nAnother official said the paramount worry is that the\nBut both Russian and American experts on the Russian\napparent tilt toward the Russian option is jeopardizing\nprogram caution that integrating the two systems\nthe \"integrity of the redesign process.\nNo deci-\nwould not be cheap.\nsions have been made.\"\n\"There is a working assumption,\" a White House of-\nThe alleged confusion stems from Gibbons's an-\nficial said, \"that careful use of some of their hardware\nnouncement last week that the administration would\ncould provide a means of doing it [the space station]\ngive \"full consideration\" to use of Russian assets in the\ncheaper and sooner.\"\ndesign of the orbital laboratory. It has invited a team of\nBoth Goldin and White House officials flatly ruled out\nRussian experts to serve as consultants in the process\na plan proposed by some U.S. and Russian engineers to\non an \"as-needed basis.\" The Russians have the world's\nuse the Russian Energia superbooster for launching the\nonly operating space station, Mir.\nspace station.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n33\nIn Kuwait,\nrule over t country, then a very\ncan people beca without the nation\npoor pearl-fishing center, by slaying\nbehind him, he could do nothing.\"\nhis two main rivals for power-his\nWhen her newspaper announced it\nA Gusher for Bush\nbrothers. Barbara Bush and the other\nwould accept symbolic gifts from the\nwomen in the party were feted at a\npublic and deliver them to the Bush\nseparate dinner.\nparty, scores of homemade offerings,\nThree-Day Visit Begins\n\"Mere words cannot express how\nmany from children, arrived, includ-\nproud I am to be here with you on the\ning a greeting card with a picture of a\nAs 'Operation Desert Love'\nhallowed ground of Kuwait,\" Bush\nflying Superman with Bush's face. It\nsaid afterward. \"It gives me tremen-\nwas addressed to \"Dad Bush\" and\ndous personal satisfaction to know\nsigned \"Your daughter, Mariam Mu-\nthat together we really made history.\nhammed al Muhaini.\"\nBy Caryle Murphy\nTogether, we stood up to naked ag-\n\"We were very sensitive about ac-\nWashington Post Foreign Service\ngression and proved once again that\ncepting these gifts. We didn't want\nKUWAIT CITY, April 14-\"Read Our Lips: Wel-\nthe thirst for freedom will always\nthem to be of great [monetary] value\ncome Home!\" declared today's banner headline in the\noverwhelm those who seek to quench\nsince he's now a private citizen and\nArab Times as Kuwaitis emotionally welcomed the\nit with the bitter brine of tyranny.\"\nwe know he will have to pay taxes,\"\nman they credit with giving them back their country.\nBush will receive an honorary de-\nsaid Marzook.\nGeorge Bush, whose recent election defeat gets\ngree from Kuwait University; address\nBut some Kuwaitis are uncomfort-\nabout the same treatment here as a piece of mali-\nthe newly elected National Assembly;\nable with the more extravagant gifts,\ncious gossip, has arrived for his first visit to this tiny,\nmeet members of the U.S. Army's\nreportedly including a diamond-en-\noil-rich desert state whose lightning occupation by\n24th Infantry Battalion, here for exer-\ncrusted watch, that their fellow citi-\nIraqi forces in August 1990 became the daily preoc-\ncises with the Kuwaiti military; and\nzens are planning to present to Bush.\ncupation of his administration for seven months.\nvisit Kuwait's oil fields, which hold\nBut amid the fierce pro-Bush mood\n\"If we could give him our soul, it's not enough,\"\none-tenth of the world's petroleum\nhere, they could only express such\nMunira Rifai said breathlessly as she rushed into the\nreserves and were badly damaged by\nsentiments privately. \"Some people\nU.S. Embassy with a gold-and-pearl necklace for Bar-\nretreating Iraqi forces.\nthink it would be better to give him\nbara Bush, who came with her husband. freedom. \"He is the We\nKuwait's information minister and\nsymbolic gifts, not gold and all this\nbig love voice him. in I don't the know how to explain it, me and all\nworld.\nHe\ngave\nus\nformer ambassador to Washington,\nfancy stuff. He doesn't need it,\" said a\nSaud Nasser Sabah, said it was only\nyoung Kuwaiti reporter.\nthe Kuwaitis.\"\nlast month that Bush accepted the\nAnd other Arabs, many of whom\nBush's three-day visit, which one columnist dubbed\nemir's invitation to visit, first extend-\nregard Kuwaitis as self-absorbed,\n\"Operation Desert Love,\" also puts him as close as he\ned shortly after Kuwait's liberation in\nspoiled and over-dependent on the\nhas ever been-or ever is likely to be-to his Per-\nFebruary 1991. Bush consulted with\nUnited States to the neglect of their\nsian Gulf War adversary, Saddam Hussein. About\nthe Clinton administration about mak-\nArab cousins, are likely to have such\nfeelings reinforced by the hyperbolic\n350 miles north of here, in Baghdad,\ning the trip, and \"the White House\nrhetoric and pomp of Bush's visit.\nblessed the visit,\" Sabah added. Just\nthe Iraqi president is stewing amid\n\"These stupid people don't realize\nto make sure there are no misunder-\nconstricting U.N. economic sanctions,\nthat the Americans fought for petrol\nstandings, the emir extended a formal\nbut still in power.\nand gas,\" said an Egyptian living here.\ninvitation last week to President Clin-\nKuwait's Emir Jabir Ahmed Sabah\n\"One should not blame the Kuwait-\nton to visit Kuwait.\ngreeted Bush today in a low-key, no-\nis for feeling this way,\" replied a se-\nBut Kuwaitis, not yet able to grasp\nspeeches ceremony at the airport as\nnior adviser to the emir. \"For some-\nthat their hero is now just a private\nU.S. and Kuwaiti flags fluttered under\none whose country has been erased\ncitizen, still widely refer to him as\na cloudless blue sky. Thousands of\nfrom the map, and an American came\n\"President Bush.\"\nschoolchildren lined the airport access\nand liberated it.\nWhere were the\nroad, chanting, \"Thank you, Bush!\"\n\"It's hard for us to say 'Mr.\nArabs when we were occupied? If we\nand waving signs bearing such slo-\nBush,' said Bibi Marzook, editor of\nare betraying the Arab cause, where\ngans as: \"You are the sunshine in our\nAl Anbaa newspaper. \"But to be fair\nwas the Arab cause when we were\nlives\" and \"A Friend in Need Is a\nto us, it's not undermining Mr. Clin-\noccupied? The Kuwaiti people are not\nFriend Indeed.\"\nton.\nFor us, Mr. Bush, or Presi-\nenthusiastic about anything called the\ndent Bush, is a symbol of the Ameri-\nArab cause.\"\nOn the rest of the route to the\nemir's sumptuous Bayan Palace,\nwhere the Bush party is staying,\ncrowds were sparse; security-con-\nscious police had closed roads to traf-\nfic.\nBush, affectionately known here as\n\"Abu Abdullah,\" came with several\nfamily members and friends, as well\nas officials from his administration, in-\ncluding former secretary of state\nJames A. Baker III, former treasury\nsecretary Nicholas Brady, former\nWhite House chief of staff John Sunu-\nnu and retired U.S. Army Lt. Gen.\nThomas Kelly, chief Pentagon briefer\nduring the Gulf War. Their arrival\nwas delayed a day when the first Ku-\nwait Airlines jumbo jet sent to pick up\nBush developed technical problems\nshortly after takeoff from Houston on\nMonday.\nAt ad all-male dinner for 700, the\nemir presented Bush with Kuwait's\nhighest honor, the Mubarak Kabeer\nChain, which is named for the Kuwaiti\nleader who a century ago solidified his\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n34\nU.S. Moved Quickly to Calm Pakistan\nAnd India After Bombay Bombings\nBy John M. Goshko\nleaders and commentators-among\nThe Pakistanis were urged to\nand Don Oberdorfer\nthem a former defense minister,\ncooperate fully with India's inves-\nWashington Post Staff Writers\nSharad Pawar, and the leader of the\ntigation of the bombings and, if\nopposition in parliament, Lal\nPakistani citizens were found to be\nThe United States intervened\nKishanchand Advani-were quick\ninvolved, to help bring them to jus-\nvigorously to calm tensions be-\nto charge that the bombings were\ntice.\ntween India and Pakistan last month\nthe work of Pakistani intelligence\nWhen Akram Zaki, secretary\nbecause U.S. diplomats feared that\nagencies.\ngeneral of the Pakistani Foreign\nIndia might take military action\nRecognizing what one official\nMinistry, accused India of fabricat-\nagainst Pakistan in response to the\ncalled \"the potentially incendiary\ning evidence so it could blame his\nwave of bombings in Bombay, U.S.\nnature of these charges,\" the Unit-\nofficials said yesterday.\ncountry for the bombings, the Unit-\nAt the time, the officials said,\ned States immediately mounted a\ned States sent a blunt message to\ncampaign to cool passions on both\nIslamabad that such talk should be\nthere was great concern here that\nsides.\nthe always volatile relations be-\nstopped immediately. Last week,\ntween India and Pakistan could\nThe officials said that perhaps\nwhen Chaudri Nisar Ali, a special\ndrupt in fighting. In the ensuing\nthe biggest role was played by\nPakistani envoy, came here for\nweeks, the situation has calmed\nThomas R. Pickering, who then was\ntalks about improving relations,\ndonsiderably, partly as the result of\nwinding up an assignment as U.S.\nSecretary of State Warren Chris-\nU.S. efforts, and it no longer is con-\nambassador to India and preparing\ntopher reminded him that the Unit-\nsidered an imminent danger to the\nto become ambassador to Russia.\ned States would be watching to see\npeace of the Indian subcontinent,\nThe effort also was pursued vigor-\nwhether Pakistan cooperates in\nthe officials added.\nously by John Monjo, the U.S. am-\nsolving the Bombay crimes, officials\n: \"We have seen nothing to indi-\nbassador in Pakistan, and by senior\nsaid.\ndate that any Indian government\nState Department officials here.\nThere has been a growing as-\nofficial has decided to retaliate or\n\"Where the Indians were con-\nsumption in Bombay that the bomb-\nthat the Pakistani government was\ncerned, our aim was to calm them\nings were carried out by profession-\nresponsible for what happened in\ndown and convince them that they\nal criminals hired by a Dubai-based\nBombay,\" a senior U.S. official said.\nshouldn't draw hasty conclusions\nfamily of Pakistani origin that has\nInitial reactions were different\nthat would cause them to jump off a\nextensive organized crime interests\nafter a dozen powerful explosions\ncliff precipitously,\" said one official.\nin Bombay and other Indian and\nripped through the heart of Bombay\n\"We told them that even if it turned\nPakistani cities. The Indian police\non March 12, killing at least 250\nout they had been victimized by for-\nhave claimed that the bombers re-\npeople and injuring more than\neign forces, they should turn to the\nceived some training in Pakistan\n1,000 others.\ninternational community for redress\nand may have obtained explosives\nThe Indian government did not\nrather than seek to retaliate on\nthere.\nmake any accusations against its\ntheir own.\"\nHowever, one U.S. official said,\nnorthern neighbor. However, anti-\nU.S. officials also sought to cap-\n\"No evidence appears to have\nPakistani sentiment already was\nitalize on the fact that Pakistan has\nturned up to implicate the Pakistani\nmounting in India because of Pak-\nbeen trying to improve relations\ngovernment directly, and as the\nistan's alleged fomenting of terror-\nwith the United States after being\nweeks have gone by, more and\nist activities by Muslim groups in\nwarned last January that, because\nmore people have concluded that\nKashmir, a province of India whose\nof Pakistan's activities in Kashmir,\nthe evidence is too mixed to draw\nownership Pakistan also claims.\nWashington was considering listing\nany clear-cut conclusions. That, in\nIn that charged atmosphere, in-\nit officially among the countries that\nturn, has helped reason and ration-\ndividual Indian officials, political\nabet terrorism.\nality to prevail.\"\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\nRabin and Mubarak Meet,\nLift Mideast Talks Outlook\nIsraeli Concessions Indicated, Not Specified\n422\nBy Linda Gradstein\nhave built since Rabin's election last\nSpecial to The Washington Post\nJune. Egypt is the only Arab coun-\ntry which has signed a peace treaty\nJERUSALEM, April 14-Israeli\nwith Israel, and sees itself as a me-\nPrime Minister Yitzhak Rabin held\ndiator between Israel and the Arab\ntalks with Egyptian President Hosni\nparties, including the Palestinians.\nMubarak in Ismailia today that ap-\nRabin reportedly has agreed to a\npeared to facilitate resumption of\nlist of concessions proposed by Sec-\nthe Middle East peace talks in\nretary of State Warren Christopher\nWashington on April 20.\nto enable the Palestinians to return\nAt a joint press conference, they\nto the peace table.\nrefused to give details about what\nIn addition to Israel's willingness\nconcessions Israel was prepared to\nto allow previously excluded Faisal\noffer the Palestinians to bring them\nHusseini to join the Palestinian del-\nback to the table. But Mubarak\negation, Israeli officials said they in-\nseemed optimistic that all parties\nclude the return of some Palestin-\nwill attend.\nians expelled from Israel between\n\"Peace is so precious that it's\n1967 and 1987 and a statement\nworth any concession,\" Mubarak\nthat Palestinians will not be de-\nsaid. \"We were trying hard just to\nported in the future except under\npersuade the parties to meet on the\nextraordinary circumstances.\n20th of April to start negotiations.\"\nStaff writer John M. Goshko\nAny Israeli concessions are likely\nadded in Washington:\nto be announced only after the Pal-\nU.S. officials said they were urg-\nestinians agree to attend. The\ning the Arabs and Israel to speed up\npeace talks were suspended after\nthe talks by holding continuous ne-\nIsrael expelled almost 400 sus-\ngotiations rather than the periodic\npected Islamic fundamentalist ac-\nrounds of approximately two weeks\ntivists in December. Rabin later\neach that have characterized the\nagreed that 100 could return im-\nprocess for 17 months.\nmediately and the rest by the end of\nThe U.S. suggestion was made\nthe year, a proposal the Palestinians\nduring consultations between the\nrejected.\nfour Arab participants and senior\nRabin said he told Mubarak he\nU.S. officials led by Edward P.\ndid not intend to make any further\nDjerejian, assistant secretary of\nconcessions on this point.\nstate for Middle East affairs.\nRabin and Mubarak also dis-\nThe officials said that Djerejian\ncussed the prospects for peace be-\ngave the Arabs a detailed explana-\ntween Israel and Syria. Rabin said\ntion of what the Clinton administra-\nbe told Mubarak he wants clarifi-\ntion means by its promise to be \"a\ncation from Syria as to what the\nfull partner\" in future neogotiations.\nSyrian definition of peace with Is-\nAccording to the officials, he\nrael means.\nstressed that the United States\n\"We accept the principle of a\nwould not take a seat at any of the\nwithdrawal on the Golan Heights in\nfour conference tables where the\nthe context of peace,\" Rabin said.\nIsraelis and Arabs are trying to\n\"We will not negotiate the dimen-\nwork out agreements. They added\nsion [of the withdrawal] before\nthat the United States does not plan\nknowing for what kind of peace.\"\nto be a mediator. Nor would Chris-\nMubarak sought to persuade\ntopher or other U.S. officials en-\nRabin that Syrian President Hafez\ngage in shuttle diplomacy.\nAssad, with whom Mubarak has\nBut, the officials said, the United\nmet, is committed to peace with Is-\nStates does intend to be more ac-\nrael. \"He said 'All for all,' Mu-\ntive in critiquing proposals. And,\nbarak said. \"I could understand it\nthe officials said, if the negotiations\n[as] peace with all its meaning on\nstart to show signs of progress, the\nboth sides.\"\nUnited States will offer bridging\nThe meeting further developed\nproposals that might help to over-\nthe relationship Mubarak and Rabin\ncome obstacles.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n36\nWestern Anxiety Deepens Over Bosnian Crisis\nUnappealing Options, Sense of Helplessness Frustrate U.S., Allied Leaders\nThe Clinton administration and\nthe Serbs until after the referendum\nBy William Drozdiak\nWest European leaders are worried\nto avoid hampering Russian Presi-\nand Peter Maass\nthat their options may be narrowed\ndent Boris Yeltsin and his reformist\nWashington Post Foreign Service\neven further if the heavily armed\ngovernment in its struggle with re-\nSerbs succeed in their current mil-\nactionary forces in parliament.\nAs an escalating Serb nationalist offensive\nitary campaign to seize the whole\nYet Britain and France also have\ndrives more Muslims out of eastern Bosnia,\neastern Bosnia and purge the towns\nexpressed qualms about lifting the\nthe United States and its European allies\nof their Muslim residents and tens of\narms embargo to enable Bosnia's\nfear that a de facto \"Greater\nNEWS\nthousands of Muslim refugees driven\ngovernment to acquire the means to\nSerbia\" may be created while\nANALYSIS\nthere by earlier Serb attacks.\ncombat the Serb nationalists-who\nWestern governments are im-\nOnce the Serbs consolidate those\nare armed by Serbia and the new\nmobilized in debate over the risks of military\nterritorial gains, perhaps within the\nYugoslav state it controls-on more\nintervention and the political crisis in Russia.\nnext months, Western military and\nequal terms. Paris and London claim\nDespite the mounting international outrage\npolitical analysts expect them to \"sue\nthat allowing weapons to flow to the\nover Serb aggression, Western officials ex-\nfor peace\" by urging a cease-fire to\nBosnian government would only ex-\nbe backed by the international com-\nacerbate the fighting and encourage\nmunity. The West would then be con-\nRussia to supply arms to the Serbs.\npress helplessness about the range of gloomy\nfronted by the choice of supporting\nIn the absence of any consensus on\noptions they face as the last three Slavic Mus-\ncontinued fighting or accepting ter-\nthe Security Council to lift the arms\nlim enclaves in eastern Bosnia are on the\nritorial gains achieved through mil-\nembargo, administration officials say\nbrink of being overrun by Serb militia forces\nitary aggression and the expulsion of\nthat one possible shift would be \"se-\nthat already control 70 percent of the repub-\nnon-Serbs from their lands and\nlective enforcement.\" U.S. ships now\nlic.\n\"There's a sense of frustration,\" said a sen-\nmomes known as \"ethnic cleansing.\"\npatrolling the Adriatic Sea, they say,\n\"It will place us in a horrible dilem-\nmight be given orders to step up\nior U.S. Army officer involved in the policy\nma,\" said an administration official in-\ntheir scrutiny of vessels suspected of\ndebate. \"There are only bad answers, and you\nvolved in the Bosnia policy review,\nsupplying Serbia, while ignoring\npick the one that's least worse.\"\nU.S. and European officials said there is\nnoting that \"there is-a long list of in-\nthose ships that are delivering sup-\nhibiting factors\" associated with ev-\nplies to Bosnia.\npersistent reluctance on the part of their mil-\nery conceivable policy decision.\nBut administration officials say\nitary leadership to commit ground troops to\nMeanwhile, Serb forces in Bosnia,\nthey fear that even that kind of policy\nenforce peace in Bosnia or even to engage in\ncontinued to tighten their year-long\nshift could undermine Yeltsin in his\nsiege of Srebrenica-the largest of\npolitical battle with old-line Russian\nair strikes against Serb artillery positions,\nthe three Muslim enclaves-where\ncommunists and ultranationalists who\narguing that such action could provoke repri-\nas many as 60,000 trapped civilians\nbelieve the West is pursuing an anti-\nsals against U.N. humanitarian aid forces on\nface death from starvation and heavy\nSlavic line in seeking to tighten sanc-\nthe ground.\nSerb shelling. Nearly 60 people were\ntions on the Serbs.\nkilled by Serb shelling there on Mon-\nBosnia's Muslim president, Alija\nWhile American airdrops of food and med-\nday, one of the bloodiest episodes of\nIzetbegovic, has urged the West to\nicine to the isolated Muslim enclaves have\nthe year-old war, and at least eight\nuse air strikes to break the Serb\nimproved in accuracy and are now reaching\nmore were killed Tuesday-just after\nstranglehold on Sarajevo, the be-\nlarge numbers of desperate people, the over-\na U.N. convoy evacuated about 650\nsieged Bosnia capital. But Western\nall civilian relief effort is still imperiled by\npeople to more secure Muslim ter-\nmilitary experts say that such action\ndwindling stocks and the difficulties U.N. sup-\nritory.\ncould endanger the lives of the\nply convoys face in getting through Serb\nIf Srebrenica falls-or when, as\n10,000 U.N. troops, relief workers\nlines.\nmost analysts now phrase it-West-\nand U.N. observers who make up the\nSee BOSNIA, A24, Col. 1\nern military experts predict the\ninternational presence in Bosnia.\nSerbs will press ahead to wipe out\nU.S. military planners also are\nthe last pockets of Muslim resistance\nwary of a proposal by an American\nin eastern Bosnia, the refugee-\ninvestigating mission to create \"safe\npacked towns of Zepa and Gorazde.\nhavens\" in Bosnia to protect Muslim\nBOSNIA, From A20\nU.S. special envoy Reginald Bar-\ncivilians, because these would re-\ntholomew, who met yesterday with\nquire the use of ground troops that\nAdministration officials acknowl-\nSlobodan Milosevic-president of\ncould become embroiled in a hostile\nedge that the presence of U.N. forces\nin the midst of Bosnia's three-sided\nneighboring Serbia and the Bosnian\nquagmire.\nnationalists' chief patron-insisted\nThe Serb refusal to sign the peace\nfactional war restricts the possibilitiy\nthat the Bosnian Serb faction must\nagreement-which would divide the\nof bringing effective military force to\nbear in the republic-including air\nagree to sign a U.N.-sponsored peace\ncountry into 10 largely autonomous\naccord immediately or the interna-\nprovinces-has spared the United\n*strikes-yet the risk of widespread\ntional community \"will make of Ser-\nStates and its allies from confronting\nfamine if food deliveries were halted\nbia a pariah state for as far ahead as\ntheir commitment to send ground\nappears too great to permit a sudden\nwe can see.\"\ntroops to enforce the agreement.\nremoval of U.N. aid support forces.\n\"The military and human horror\nThe NATO alliance has prepared\nThe reluctance of the West to take\nhas to stop now,\" he said. \"Bosnian\nplans to dispatch up to 70,000 troops,\nforceful action in Bosnia drew angry\nSerbs have to do it now.\"\nincluding 20,000 Americans, to the\ncriticism today from former British\nBartholomew also warned that the\nregion to help enforce the terms of\nprime minister Margaret Thatcher,\nClinton administration would press\nthe peace plan.\nwho accused Europe of being \"an ac-\nBut even if the Serbs made a sud-\nfor Bosnia's Muslim-led government\ncomplice to massacre\" by spurning all\nden turnabout and subscribed to the\nto be exempted from a U.N. arms\nforms of military intervention. \"I am\nplan, there are doubts that the West-\nembargo on the warring parties if the\nashamed of the [European Commu-\nern allies would be able to muster the\nnity] that this is happening in the\nSerbs fail to sign the peace plan. But\nthat initiative has run into opposition\nnecessary troops. Pentagon officials\ntheart of Europe and they have not I\nsay a commitment of 20,000 troops\nfrom other permanent members of\ndone any more to stop it,\" Thatcher\nthe U.N. Security Council.\nwould cause serious problems for the\ntold the BBC. \"It is within Europe's\nU.S. European Command when\nRussia, which maintains close his-\nsphere of influence; it should be with-\nAmerican forces are being rapidly\ntorical ties with Serbia, has been re-\nin Europe's sphere of conscience.\nwithdrawn from the continent. Brit-\nThere is no conscience.\"\nluctant to approve tougher sanctions\nain and France say their armed\nagainst the Serbs or to allow arms to\nforces are stretched to the limit and\nBosnia priopr to a crucial April 25\ncannot afford a new international\nreferendum that is to decide the\nmission.\ncourse of Russian politcal and eco-\nnomic reform. The United States and\nMaass reported from Split, Croatia;\nits allies have quietly agreed to delay\ncorrespondent Eugene Robinson in\nany further punitive actions against\nLondon and staff writer John\nLancaster in Washington contributed\nto this article.\n37.\nTHURSDAY.\nAPRIL\n15\nTHE FEDERAL DIARY\nClinton's Sector Strategy\nBy Mike Causey\nmany federal workers believe\nWashington Post Staff Writer\nthey are paid less than their\ncounterparts in industry. Most\nT\nhe Clinton administration,\nof the government's\nwhich wants to freeze\nwhite-collar workers get the\nfederal pay through 1994,\nsame salary, in the same job,\nmay try to reduce future raises\nregardless of where they work.\non grounds that many\nIndustry pays city-by-city rates.\nwhite-collar jobs are either\nLocality raises for federal\novergraded or compared to the\nworkers are to start next year,\nwrong higher-paying private-\nalong with a 2.2 percent raise\nsector jobs, thereby\nacross the board. The White\nestablishing an exaggerated pay\nHouse wants to skip both until\ngap.\n1995 and restudy the entire pay\nGovernment vs. industry pay\nmatchups by the Bureau of\ncomparison process.\nLabor Statistics show that, on\nSick List\naverage nationwide, the\nNational Treasury Employee\ngovernment pays about 30\nUnion President Robert Tobias\npercent less than employees\nis recovering from major surgery\ncould get doing the same jobs in\nearlier this week. He's expected\nindustry. Many people in the\nto be home in a few days. Cards\nprivate sector and the\nor get-well notes should be\nadministration don't believe the\naddressed to union headquarters\ngap is that big. Pay comparisons\nat 901 E St. NW, Suite 600,\ndon't include the value of fringe\nWashington, D.C. 20004.\nbenefits.\nOfficials at the Office of\nFamily Ties\nManagement and Budget have\nWall Street Journal reporters\nbeen concerned for years that\nJoseph B. White and Paul\ncity-by-city pay comparisons\nIngrassia won a Pulitzer Prize\nare sometimes flawed because\nfor their coverage of\nnot enough private sector pay\nmanagement turmoil at General\ndata\nor the wrong\nMotors Corp. Ingrassia is the\njobs contrared. The federal\nnephew of Tony Ingrassia. He's\ngovernment has 15 pay grades\nchairman of the Federal\nplus 10 longevity steps each\nPrevailing Advisory Committee\nworth 3 percent of salary. Many\nand a former Milwaukee reporter\noccupations can be found in\nand labor union official.\nseveral pay grades.\nBroadcasting Jobs\nThe typical white-collar\nThe U.S. Information Agency\nfederal worker here makes\nis looking for a director for\nabout $46,400. That's $10,000\nWORLDNET, its international\nmore than federal workers\nbroadcasting production, and a\noutside the Washington area.\ndeputy for projects\nFederal pay is higher on\nmanagement. The Senior\naverage than the private sector\nExecutive Service jobs pay\nbecause private industry\n$92,900 to $115,700. For\nincludes many low-paying\ndetails, call Janet Haspert at\nservice jobs that don't exist in\n202-619-3117.\ngovernment. The government\nhas more scientists than\nScience Opening\nsecretaries, for example, and it\nAgriculture's Food Safety\nhas a much higher proportion of\nand Inspection Service is\nprofessionl, technical and\nlooking for a GM (merit pay) 14\nadministrative jobs than\nsupervisory microbiologist. Call\nindustry.\nTeresa Adams at\nBut on a job-for-job basis,\n202-720-6617.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n38\nJim Hoagland\nPrepared for Non-Combat A29\nTHE WASHINGTON POST\nConde is a Marine gunnery sergeant,\ncle, grabbed the sunglasses Conde was wear-\nfrom feeding the starving to acting as an\nor so American troops will stay to provide the\n\"an individual trained to be one of mankind's\ning and jumped back. The Marine sergeant\nurban police force.\"\ncore of the U.N. force.\nthost efficient killers when the circumstances\nsaid he did not immediately realize what had\nThe Conde case does raise a larger issue. If\nThis is an opportunity, not a loss of sover-\ndemand. in the dusty streets of Mogadishu\nhappened and fired in fear of a terrorist\nthe United States is going to commit its large\neignty or some other calamity to be decried. A\n-two months ago, Conde thought those cir-\nattack. The court-martial panel implicitly re-\nmilitary establishment to future humanitarian\nsmall U.S. force will be left in an essentially\nCumstances had arrived.\njected that claim, but gave Conde a mild\nor peace-keeping operations, should the Pen-\nnon-combat situation operating under a U.N.\nBefore he shot and wounded 13-year-old\npunishment in recognition of his previously\ntagon retrain and reequip some combat units\ncommand subject to a U.S. veto in the Security\n\"Whmed Abdi Omar, Conde was an American\nunblemished record.\nfor such duty, rather than following the pre-\nCouncil. U.S. involvement is necessary to give\n\"hero feeding starving Somali children. He and\nWhat caught my eye in the account of\nsent ad hoc approach that helped put Conde in\nthis new U.N. force credibility, experience and\nhis mates in Operation Restore Hope were the\nConde's trial filed to The Post by Africa\ntrouble's way? And if America takes that step,\nleadership. America in turn will be able to help\nNew World Order writ small in human detail,\ncorrespondent Keith B. Richburg were two\nshould it then earmark or assign those units to\nshape the new forms of international interven-\n6 the filigree on the fabric of international rela-\nrelated points, one made by Conde's defense\na United Nations command to avoid both the\ntion a changed world may require.\nbitions beyond the Cold War.\nlawyer, Capt. Stephanie Jennings, the other by\nimage and the responsibilities of America's\nThat will not be much consolation for Sgt.\nToday Conde is a convict, his career in\nplaying world policeman?\nConde or for Omar. What comes next in\nRichburg. They are points central not only to\njeopardy and his pride in being part of a new\nthis small human drama but to bigger ques-\nThese questions are being debated in the\nSomalia will not undo their tragic encounter.\nAmerican approach to peace-keeping and hu-\ntions facing American military planners and\ncorridors of the United Nations, at the most\nBut America's continuing, softer involvement\nmanitarian action shattered. That transforma-\ncommanders in the ambiguous and messy\nprestigious think tanks in America and Europe\nin Somalia may provide some valuable ex-\ntion began in the few seconds it took for\nand at international gatherings such as the\nperience in avoiding or decreasing such inci-\n\"Omar, an accomplished street thief, to reach\nconflicts that are replacing all-out war in\nEurope as likely arenas for the use of U.S.\nrecent Trilateral Commission meeting here.\ndents in the future.\ninto Conde's patrol vehicle and for the gun-\nThe Trilateral discussion, attended by senior\nmery sergeant to blast away at the Somali\nforce abroad.\nThe fact that the Mogadishu shooting and\nU.N. and U.S. officials, reflected a broad\nConde's trial were treated as news is in some\nyouth with an M-79 grenade launcher loaded\nIt was unfair, Jennings argued, \"to send\nconsensus within that influential elite that\nways testimony to the success of Operation\nwith buckshot.\nMarines to Somalia-trained Marines-and\npeace-keeping has to be redefined and rede-\nRestore Hope, which produced little violence\nIf that sounds like overreaction to you, that\nexpose them to the dangers out there\" and not\nsigned for a world no longer held in the mold\nagainst Somalis and few missteps by a 25,000-\n\"is the way it must have sounded to the U.S.\nexpect them to respond as they have been\nof bipolar superpower confrontation.\nperson U.S. force. In Somalia, the Pentagon has\ncourt-martial that convicted Conde of aggra-\ntrained to react in dangerous settings. \"There\nSomalia may help provide some answers as\nresisted the dangers of mission creep-of get-\nvated assault, busted him one grade in rank\nis combat-like danger out there every day.\"\nwell as questions. A U.N. command will short-\nting pulled into local quarrels and taking on\nand fined him a month's pay on April 6.\nConde's case, Richburg added, \"encapsu-\nly take over the difficult follow-on tasks of\nexpanding, unfulfillable responsibilities. It is a\nOmar, who underwent surgery after the\nlates the tensions and dangers that U.S.\nkeeping order and trying to rebuild civilian\nsuccess that deserves recognition, and encour-\nblast, had reached into the U.S. military vehi-\ntroops face as their mission here has shifted\ninstitutions for that African nation. But 5,000\nagement.\nTHURSDAY, APRIL 15, 1993\nfor\nThe\nof fresh-baked, or perhaps half-\nThat, at\nis\nthe\nconclusion\ntentatively\n01\nsocial-acience hovers over Cisneros's idea\nGeorge F. Will\nreached by Zbigniew Breerinski, President Cart-\n1:00 combating spatial separations by means of\ner's national security adviser. The Polish-born\nan \"newly designed, thoughtfully scaled\" public hous-\nBrzezinski recalled the Soviet massacre of 4,500\ning projects. Cisneros knows the requisite 1990s\nBad Enough\nPolish officers in 1940 and noted some chilling\nrhetoric-\"I know we can't go back to the big\nsimilarities. Stalin had the Polish officers killed\nbureaucracy answers of the 1960s\"-but when\nbecause many of them were members of the\n(explaining what should be done, he stresses\ngentry or aristocracy, strong anti-communists.\nIn the '60s A29\nbetter uses of Washington bureaucracies: \"We\nOminously, Quang breaks down the American\nthink in terms of how we bring together the\nPOWs into three ideological camps. He wrote\nDepartment of Education on schools, and the\nthat 368 held \"progressive views and can be\nDepartment of Health and Human Services on\nfreed in the first instance.\" Another 372 held\nThe \"urban crisis\" is, by now, a hardy perenni-\nchild care and welfare. We change the rules.\"\n\"neutralist\" views about the war, but 465, all\nal In 1968 Glamour magazine carried an editorial\nBetter rules from Washington. Back in the\nsenior officers,\" were not in the least critical of\ntitled \"The Urban Crisis: What Can One Girl Do?\"\n1960s Moynihan, too, thought government\nBy then the federal government was on the job,\nU.S. policy. \"We understand these officers come\nshould pull up its socks, square its shoulders and\ndoing things.\nfrom rich families,\" he wrote.\ndo better:\nGiven such language, the comparison to the\nThe bill creating the Department of Housing\n\"Government has got into the business of prom-\nmassacre in the forest of Katyn, Poland, is under-\nand Urban Development was signed into law by\nising more than it knows how to deliver; as there is\nPresident Johnson on Sept. 9, 1965, 30 days after\nstandable. But history offers more than anteced-\nlittle likelihood of cutting back on the promises, the\nthe beginning of, and partly in response to, the\nents; it offers some lessons as well. The first is that\nsuccess of the society turns on its ability to\nrioting in the Watts section of Los Angeles.\nforgeries and bogus documents are not unknown.\nimprove its performance. It is probably not a good\nTwenty-eight years and hundreds of billions of\nSome years back, historians of impeccable creden-\nthing to have got into this situation, but the social\ntials authenticated the so-called Hitler diaries,\ndollars later, welfare dependency, homelessness,\ndynamics of an industrial society everywhere seem\nwhich turned out to be a forgery. The \"Protocols of\nsubstance abuse, family disintegration, the inter-\nto lead in this direction, and to do so with special\nthe Elders of Zion,\" a notorious artisemitic concoc-\ngenerational transmission of poverty, teenage\nvehemence in the United States.\"\ntion, still circulates, and so, for that matter, do\npregnancy, illegitimacy, sexually transmitted dis-\nBut is improved government performance\neases, public schools, violence and other crimes\nbogus photographs of American MIAs still suppos-\nreally more likely than more judicious promising?\nare all worse.\nedly living in the jungle.\nPerformance and promising are linked. Injudi-\nAs Brzezinski himself points out, the document\nLast Sunday on television Henry Cisneros, the\ncious promises like Cisneros's drive government\nnow in the hands of American officials is a Soviet\nsecretary of HUD, was asked why it is\ninto disappointing performances.\nversion of the report to the Vietnamese Politburo.\nreasonable to expect Washington to do any good.\nAs this is written the nation is celebrating the\nHe said, among much else, this:\nIt's possible that it is either false, not entirely\n250th anniversary of the birth of Thomas Jefferson\n\"I think one of the things America has to\ntrue-or, as at least one American expart claims, a\nand waiting to see if Los Angeles will burn yet\ncorrect accounting given the alleged tendency of\naddress very, very squarely is whether or not we\nagain. For perspective, remember that Jefferson\nthe North Vietnamese to call U.S. agents \"Ameri-\nlive with continued vast spatial separations\nconsidered cities \"pestilential\" at a time when\nbetween the poorest of our populations, concen-\ncans,\" even if they were of other nationalities.\nAmerica's largest city, Philadelphia, had approxi-\ntrated in public housing in central cities, and the\nThe probability is that we will never know-\nmately 55,000 residents, about as many as today\nvast differences that exist across our urban\nnot soon, anyway. It's inconceivable that Viet-\nlive in Rapid City, S.D.\nnam, now seeking economic ties with the United\ngeography to the suburbs, which are essentially\nStates and the West, is going to 'fess up to the\nwhite. What we've got to do is break up the\nmurder of American POWs. It's more likely that\nconcentrations by making it possible for people to\nin newly designed, thoughtfully scaled public\nRichard Cohen\nthe report will be denounced as a fraud. That will\n3, negotiated with outlying communities,\nput U.S. policy-makers in the gray zone where\nbecause many of the problems\nthey have been all along. What should we do?\nof large concentrations of poor people symp- with\nare\na\nfew role models and no lift.\"\nPOWs: The A29\nAfter all, Poland did not break off ties with\nMoscow after Mikhail Gorbachev admitted Soviet\nOne's heart sinks. The '60s were bad enough\nresponsibility for the Katyn massacre, nor, for\nthe first time around.\nthat matter, have the Japanese war crimes of\nThe government, having exacerbated prob-\nAwful Truth?\nWorld War II stopped us from having excellent\nrelations with Japan. Nations move on-at least\nby concentrating the poor in public housing,\nsome of them do. When they don't, you get a\nis going to redouble its efforts with more, better\nThe purported report of Tran Van Quang to\nsituation like the Balkans, a land of long memo-\npublic housing, thereby conquering the spatial\nthe politburo of the North Vietnam Communist\nries and even longer wars.\nseparations of the social classes. This is a 1960s\nimpulse.\nParty in 1972 raises some profound questions.\nBut the Clinton administration would be wise\nIn the 1960s there began the explosive growth\nThe first, of course, is whether it is the real\nto listen to the American people on this issue.\nin the number of subjects considered political and\nMcCoys The second is whether its details are\nThe widows and orphans of the Vietnam War are\nsuited to government attention. Perhaps this had\ncorrect, and the third, maybe most important, is\nall our neighbors. For them, the spade-full of dirt\nsomething to do with Lyndon Johnson being the\nwhat the United States should do if the answers\nhas never hit the casket. Their anguish, their\nto the first two questions are yes and North\nhurt, cannot easily be dismissed. The govern-\npresident to have spent virtually his entire\nVietnam killed as many as 600 American prie-\nment owes them an accounting-and that, of\nadult life in Washington.\noners of war.\ncourse, it has been trying to do. If the Quang\nBy the end of the 1960s Pat Moynihan was\nThe Quang report was discovered by historian\nreport is true, then we cannot do business with\nworrying about the increasing introduction into\nStephen 1 Morris of Harvard University while\nthe murderers of American servicemen. War is\npolitics and government of ideas originating in\nthe social sciences, ideas which promised to bring\ndoing some research in Moscow. It is a detailed,\nhell, but even hell has its rules.\nalthough perplexing, accounting of Americans then\nVietnam hankers for economic ties with the\nabout social change through manipulation of soci-\nety's most basic processes. This was, he said,\nbeing held in North Vietnam. The prisoners are\nWest. That's understandable. But there is little\npart of a transformation of politics:\ncategorized-by rank and also by ideological ori-\nreciprocal yearning on this side of the Pacific\n\"Not long ago it could be agreed that politics\nentation. The locations of their prisons are listed,\nOcean-no urgent need to establish relations\nthe business of who gets what, when, where,\nas well as the areas in which they were captured.\nwith Hanoi. It is not, after all, Japan, and it is\nIt is now more than that. It has become a\nThe document has the air of authenticity.\ncertainly no democracy. The Quang report needs\nBut if God is in the details, then the ones\nto be disproved before we can proceed. If it is\nprocess that also deliberately seeks to effect such\nmentioned in the Quang report suggest agnosti-\nfalse, then it is time to put the war behind us. If it\noutcomes as who thinks what, who acts when,\ncism is warranted. For instance, Quang says that\nis true, then-in the name of too many American\nwho lines where, who\n\"three cosmonauts\" (astronauts) were being held\nfamilies-that time has not yet come.\nBut even then there was a growing sense of\nprisoner. One of them, a \"Jim Katlo,\" is named. But\ngovernmental overload. \"How one wishes,\" wrote\nNASA says that no astronauts were ever POWs,\nNathan Glazer, in the mid-1960s, \"for the open\nand there is no record of a Jim Katlo. Similarly,\nof the New Deal, which was not littered with\nQuang's listing by rank-the numbers of colonels,\nthe carcasses of half successful and hardly suc-\nfor instance-does not correspond to Pentagon\nceasful programs, each in the hands of a harden-\ndata. For all of that, though, the report has to be\ning bureaucracy.\" Nearty 30 years on, how one\ntreated seriously if only for its implications: The\nwishes government would at least learn the\nreason so many Americans remain officially miss-\nformulated by Glazer's academic collabora-\ntor, Prof. Moynihan: \"The role of social science\ning is that they were killed by their captors.\nnot in the formulation of social policy, but in\nthe measurement of its results.\"\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n40\n428 The Choice to Stay Away\nA\nNUMBER of angry and frightened Mount\n\"Donahue\" show. Both events, claims the mayor,\nPleasant and Columbia Heights residents\nserved a larger purpose: promoting D.C. state-\ndidn't take kindly to Mayor Kelly's deci-\nhood and President Clinton's economic package.\nsion to leave town last weekend for New York-\nBut statehood didn't get much play on \"Dona-\nat least not while they remained at home gripped\nhue,\" and as of Tuesday the mayor apparently\nby fear of a serial shooter. The mayor, who may\nwas following a light public schedule. How she\nreturn home today instead of Friday, rejects\nhelped the president's stalled stimulus package in\ncriticism of her absence. She told a Post reporter\nNew York City, including last night's appearance\nwho caught up with her and her three-member\non \"Crossfire\" debating Pat Buchanan, has yet to\nadvance team and press secretary that she was\nbe explained.\nstaying on top of the situation from the Big\nOne resident, who lives two blocks from the\nApple. \"I just have to call it as I see it,\" she said.\n\"There's always a thousand things I should be\nscene of the ninth and latest shooting, spoke for\ndoing.\"\nhimself and most of the city when he said of the\nThat's fair enough. But bewildered residents\nbrazen attacks, \"I've never seen anything like\nare within their rights to ask whether the New\nthis before.\" That point was brought home in\nYork commitment was more important than be-\nyesterday's Post account of how the shotgun\ning here. The fears in that part of Northwest\nattacks have seeped into the lives of parents and\nWashington aren't fanciful. In the space of a few\ntheir children, robbing them of their sense of\nweeks, nine apparently innocent pedestrians\nsecurity.\nhave been attacked by an unidentified shotgun-\nThe Mount Pleasant and Columbia Heights\nwielding assailant. Two have been killed, four\ncommunities don't expect the mayor to catch the\nwounded and three badly frightened by shots that\nmaniac who's doing these shootings. They know\nmissed. Even in a city that has suffered through\nthat's the business of the police. But they would\nmore than 2,200 murders in the past five years,\nbe reassured by their mayor's presence at their\nthese random drive-by shootings bring a special\ncommunity meetings. And they want her around\nbrand of terror.\nduring high-profile police operations making cer-\nThat reality must be measured against the\ntain that everything is being done to protect her\nalternative of attending a New York conference\ncity. The residents of those neighborhoods can't\nof African American mayors and the taping of a\ntake a vacation from this terror.\nA28\nNeedles and AIDS\nB\nALTIMORE Mayor Kurt Schmoke wants\nprogram was implemented there. There was no\nto begin a 30-month needle exchange pro-\nevidence of increased drug use after the program\ngram to curb the spread of AIDS. He needs\nwas initiated, and drug treatment enrollments\nstate approval to do so if participants are to be\nincreased. Moreover, fewer needles were found\nprotected from prosecution under Maryland's\non the streets and playgrounds of the city after\ndrug paraphernalia law, but the legislature ad-\nthey became valuable as an exchange for clean\njourned this week without giving it to him.\nones. A 60-day experimental program was begun\nBecause he believes this step is critical to con-\nin the District last summer, and an evaluation is\ntaining the epidemic in his city, the mayor is\nexpected from Johns Hopkins University experts\nconsulting legal experts about other options.\nsoon. The program in this city was available only\nSupport for a needle exchange program has\nto drug users who had signed up for rehabilitation\ngrown as the demographics of the epidemic have\nprograms, which limited its scope. But results\nchanged. Once thought to be an affliction primari-\ncloser to those seen in New Haven have been\nly of homosexual men, AIDS is spreading at a\nfrightening rate among intravenous drug users\nachieved in pilot programs in this country and\nwho share contaminated needles and their sexual\nabroad that were broader in scope. They are not\npartners; eventually it reaches their children.\nto be confused with some European experiments\nNationally, one-third of all AIDS cases now stem\nthat legalized drug use in connection with needle\nfrom drugs used by injection. In Baltimore that\nexchange and were not successful.\nk figure is 42 percent. The prospect of officials\nThis approach to AIDS creates an impression\ngiving needles to drug addicts struck some Mary-\nthat government is abetting illegal and harmful\nland legislators as immoral, impractical and even\nbehavior. But under controlled conditions in\n\"frightening.\" But the idea is not new, and in the\nwhich treatment is encouraged, the net result\nhandful of cities and foreign countries where it\ncan be a reduction in drug use. The primary\nhas been tried, results have been encouraging.\nobjective, in any event, is to combat AIDS. In the\nNew Haven, Conn., for example, reported that\nface of increasingly compelling statistics on infec-\n- new HIV infections among intravenous drug\ntion among intravenous drug users, needle ex-\nusers dropped by a third after a needle exchange\nchange is worth trying.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n41\nGeorge Bush's Revenge\nA\nCOUPLE OF recent polls have shown\nAs of last week, according to IRS figures, the\nPresident Clinton's popularity dipping.\nnumber of refunds had dropped by 6.8 percent from\nThis being April 15, an answer may be\nthe comparable point last year. The IRS worries that\nnear at hand.\nmany taxpayers who find they unexpectedly owe\nIn an effort to boost a sluggish election-year\nmoney they don't have may not file at all.\neconomy last year, George Bush decided to\nThe IRS has waived a 5-percent-a-month \"fail-\nchange the Internal Revenue Service's withhold-\nure-to-file\" penalty this year to encourage taxpay-\ning tables so taxpayers would have a tiny bit less\ners to file for an extension even if they can't pay\nwithheld from paychecks for federal income\nthe government what they owe by tonight's dead-\ntaxes. The changes let taxpayers keep about a\nline. (The extension form, 4868, is blessedly easy\ndollar a day-or about $345 a year-more than\nto fill out.) But even this IRS gesture, at once kind\nthey would have kept under the old tables.\nand practical, will go only so far in soothing\nMultiplied over millions of taxpayers, this\ntaxpayers who come up short today.\nchange, Mr. Bush hoped, would pump as much as\nIf you wanted to fuel a tax revolt, you could\n$25 billion of extra purchasing power into the\nhardly invent a better way than to cut tax refunds\neconomy.\nfor many and force others to write a check to the\nThe good news was that the recession finally\nIRS for the first time in their lives.\nended. The bad news for Mr. Bush is that the\nAll this may be the result of Mr. Bush's\nrecession didn't end fast enough to win him\ndecision, but it's Mr. Clinton who is president\nreelection.\nnow. It's also Mr. Clinton who is asking Congress\nAnd now comes the bad news for Mr. Clinton\nto approve some tax increases and who is in the\nand for a lot of taxpayers. Having paid less to the\nmiddle of a fight with Senate Republicans over\ngovernment last year, many taxpayers who ex-\nhis spending plans. No wonder his popularity has\npected large refunds are getting smaller ones.\ndropped. Mr. Bush's political timing may have\nAnd some who expected a refund are having to\nbeen off for 1992, but it should look pretty good\nwrite a check to the IRS because they were\nnow to Sen. Bob Dole and his colleagues. They\nunder-withheld.\nowe Mr. Bush a thank-you note.\nA18\nEurope's Choice\nW\nESTERN EUROPE is beginning to real-\nresponsibility to open its rich market to new\nize, reluctantly, that its most important\ndemocracies. That's why Greece, Spain and Por-\ndecision in this decade is likely to be its\ntugal got membership as they emerged from\nresponse to its Eastern neighbors. The pressure\nright-wing autocracies. And that's the claim that\nfrom them is having the same effect on Germany,\nPoland, Hungary, the Czech Republic, Slovakia\nFrance and the rest that the prospect of the free\nand the others are now urging. But much of\ntrade agreement with Mexico is having here in\nWestern Europe is deep in recession, and unem-\nthe United States. It is amplifying all the rich\nployment rates there are higher than in the\ncountries' doubts and anxieties about their com-\nUnited States. The commodities that the Eastern\npetitiveness and their ability to maintain their\ncountries want to export westward-especially\nhigh standards of living in a world in which\nsteel, textiles and farm products-touch deep\npoorer people just over the border can make\npolitical sensitivities.\nmany of the same goods much more cheaply. You\nThe meeting in Copenhagen this week on\ncan already hear uneasy references to the Czech\nEast-West cooperation ended with a pledge from\nRepublic as the Korea of Europe.\nthe EC to give better access to imports from the\nWhen the Soviet empire collapsed, the people\nstruggling Eastern countries. That's the right\ngoverning Western Europe saw it as their oppor-\nsentiment-although, as the Eastern Europeans\ntunity to draw the 12 countries of the European\nquickly pointed out, it was a general pledge\nCommunity into a much tighter union. To that\ncontaining little that was concrete or specific.\npurpose they drew up the Maastricht Treaty,\nIf the great economic experiments in East-\nwhich since then has been going through an\nCentral Europe should collapse, one result would\nunexpectedly prolonged and uncertain process of\nsurely be a tremendous wave of desperate people\nratification. As it gets closer to completion, the\nmoving westward. In a time of half-open borders,\nenthusiasm for the treaty seems to be diminish-\nit would be hard to stop them. That possibility is\ning. Rather than a common foreign policy or a\nmuch in the minds of the people running the\ncommon currency, the far more urgent necessity\nEC-a reminder that if economic and political\nis arguably a serious effort to stabilize the coun-\nreform fails in the new democracies, the conse-\ntries to the east.\nquences will not be limited to the lands east of\nFor many years the EC recognized a moral\nwhat used to be the Iron Curtain.\nTHURSDAY, APRIL 15, 1993\nTHE WASHINGTON POST\n42\nThe Reliable Source\n3\nBy Lois Romano\nClinton\nGore\nHey, Bill, About That Medal for Martha\nWE'VE HEARD THAT.\nGames Americans Play\nAvenue\n19,\nThe Clinton folks are close to\nThe great American eagle may have a\nf Mark Harris, the controversial\nOne source said Stone planned to speak\nannouncing former New York police\nnew perch soon. The U.S. Information\n43-year-old husband of Martha Raye,\nto First Mom Virginia Kelley about the\ncommissioner Lee Brown as the new\nwants to see his wife get the\nAgency is developing-of all things-a\nE\nmatter in Arkansas this week.\nMark\ndrug policy director. While Brown has\n\"Presidential Medal of Freedom, he might\nTV game show that it hopes will give a\n1000\nIn the meantime, Harris has a message\nresisted the appointment for some\nwant to reconsider his lobbying techniques.\nnew, lively twist to the agency's longtime\nfor, oh, just about anybody who'll listen:\ntime, he's said to be on the verge of\nDisplaying a copy of a '92 letter from\ngoal of flacking America.\nScandidate Bill Clinton favoring the idea of\n\"America needs a hero, and we have one\naccepting. And while the budget of\n\"What is more uniquely American than\nRaye getting a medal, Harris rages in a\nhere.\"\nthe office has been cut dramatically,\nfull-page ad in Daily Variety: 'A liar is\nThe White House had no comment last\nthe one carrot is that it is a Cabinet\nthe game show,\" said Michael\nSchoenfeld, director of program\n1\nworse than a thief,' as we all grew up to\nnight.\npost.\n\"believe.\"\nDespite rumors to the contrary,\ndevelopment for USIA.\n.\nlady\nHarris explained from Los Angeles\nU.S. Ambassador to France-designate\n\"What's the Connection\"-complete\n.\nyesterday that he was \"not trying to bash\n\"The an the lady gave it her all in deeds,\nPamela Harriman is not selling her\nwith the usual bells and whistles and\nthe president,\" but \"trying to keep him to\nempty President words. does it with\nfamous Georgetown house-longtime\nJohn Ritter, left, studying role models;\neven a huge American\nhis written word.\" He's in such a hurry, he\npolitical salon to many a\nPaul McCartney, staying out of it.\nflag-would focus on\nUNITED\nadded, because the 76-year-old Raye's\ncandidate-nor her Middleburg\nAmerican language\nhealth is declining.\nresidence. However, she recently did\nTuesday, has also been appointed to\nand themes. It'll be\nsell her Barbados home.\nthe board of the National Trust for\nsent by Worldnet\nSTATES\nPris\nHarris did mention that, as luck would\nhave it, he ran into Butch Stone, Roger\nGore\ndi\n- Hollywood visited the Potomac\nHistoric Preservation.\nsatellite along with\nClinton's manager, out in L.A. Tuesday and\nonce again yesterday as stars\nPaul McCartney, who kicked off a\nmore staid fare like\nStone offered to see what he could do.\nChristopher Reeve, John Ritter and\n19-stop tour in Las Vegas yesterday,\n\"The MacNeil/Lehrer\nAGENCY\nBilly Crystal got an audience with Bill\nsaid he's aware of the tension in Los\nNewsHour\" and C-SPAN.\nClinton and AI Gore at the White\nAngeles as the verdict on the Rodney\nTo devise the game, Schoenfeld hired\nHouse. Here for the Washington\nKing case is anticipated-but doesn't\nSteve Friedman, a veteran Hollywood\npremiere of HBO's \"Earth and the\nplan to cancel his Anaheim stadium\ngame-show hand (\"The Newlywed\nAmerican Dream,\" Ritter said in a\nshow on Saturday.\nGame,\" \"The Dating Game\"), who\nphone interview that he was thrilled\n\"I'm keeping out of\nto meet his \"hero,\" the prez. Now, as\nit,\" McCartney told\nrecently staged a live run-through. The\ncost so far: a mere $25,000.\nfor picking up some useful tips for his\nthe Associated\nrole as a Senate aide on the popular\nPress. \"It's an\nRun-through tapes are being shown at\nshow \"Hearts Afire,\" he noted: \"I saw\nAmerican affair. I'm\nUSIA and to educational consultants.\na lot of facilitators today at the White\njust a British guy\nThe idea, approved under Bush director\nHouse-guys who try to be invisible\nshowing up.\"\nMichael Pack, now awaits approval by\nand Mrs. Martha Raye and,\n\"A\nLIAR\nIS\nwhile getting stuff done. And I felt\nClinton appointee Joe Duffy and funding\n-right, the angry ad.\nWORSE THAN A THIEF\nlike we were on the right track\nDavid McCullough:\nto \"go to series.\"\ngrew\nDavid McCullough,\nOn board.\nNoble aims aside, Schoenfeld readily\nwho won the Pulitzer\nadmits that whenever it comes to\nPrize for biography\nTHURSDAY, APRIL 15. 1993\ngovernment projects, there is certainly\nMaking an Offer Sinatra Would Refuse\n\"the potential for ridicule.\"\nLife imitated art imitating life in a New\nIn case Martino's career has passed you\nYork courtroom this week when a tape of a\nby. his claim to fame is a small role in \"The\nDOONESBURY\ncouple of reputed mobsters discussing Ol'\nGodfather\" as singer Johnny Fontaine-a\nBy G.B. Trudeau\nBlue Eyes was played. The conversation\nslippery character believed to be modeled\nbetween defendants Lorenzo Mannino and\nafter Sinatra. The movie depicts Fontaine\nSIR/WHERE\nDID THEY\nNO, BUT ONLY BE-\nGOOD. SEE\nYES. SIR. BUT\nGluseppe \"Joe\" Gambino-accused of\nas owing his career to mob muscle. Sinatra\nHAVE YOU\nREACH\nCAUSE AN EARTH\nYOU DOWN\nARE\nTHE CELEBS\nYOU\nI HADTO,\nracketeering and murder-starts with\nwas known to be rather displeased with the\nBEEN?\nTHE CABIN\nMOVER BROKE\nAT THE\nTHE\nHAVE LEFT. ALL\nWHAT?\nSIR. SHE\nMannino's asking whether Gambino would\ndepiction-and the suggestion that it was\nYET?\nDOWN LAST NIGHT.\nSITE.\nMEDIA\nEXCEPT CHER.\nWANTS TO\n\"talk to Frank Sinatra [about] getting a few\nhe.\nSTILL\nI LET HER IN\nPLAYME.\njobs for AI Martino in Las Vegas.'\nTHERE?\nAnd in the latest real-life version, Sinatra\nON THE PLAN.\nIS made out to feel the same about Martino\nas he did about Fontane. Mannino indicates\non the tape that such a request for career\nhelp would be futile.\n\"Sinatra can't stand AI Martino, Joe,\" he\nsays on the '88 recording\n\"Yeah, I know.\" Gambino responds.\nAs far as Sinatra's true feelings about\npoor ol' Al. well, we don't know. A call to\nhis publicist went unreturned.\nGBirudean\nBusiness and Finance\nWorld-Wide\nHOUSE reopened the\nMILLIONS OF BLACKS WENT on strike\nbroad-based consump-\nin South Africa to mourn a slain leader.\ntion levy, such as a value-added tax. to\nUnrest swept much of the country and at\nhelp finance a health-care overhaul.\nleast six people were shot dead as rallies\nSuch a tax was ruled out in February.\ntook place to protest last weekend's slaying\nbut a Clinton aide conceded that the\nof politician Chris Hani. Hundreds were\nwounded as blacks battled police, and\nHealth Care Task Force could propose\nlooters rampaged through several cities,\nthe tax to the president. Some in the\nincluding Cape Town. The worst violence\ncorporate world would welcome such a\nwas in the black township of Soweto, where\ntax. but consumers may oppose it.\npolice fired on marchers and the African\n(Article on Page A2)\nNational Congress said that one of its offi-\ncials had been killed.\nInventories jumped 0.4% in Febru-\nBlack and white leaders struggled to\nary. the largest rise in seven months,\nprevent anger over Hani's killing from\nfueled mostly by a drop in car sales\nderailing talks on ending apartheid and\nand weak retail sales overall. Analysts\ngiving the black majority the vote.\nsaid it was too early to draw conclu-\nTHE U.S. DEMANDED that Bosnia's\nsions from the buildup, which usually\nSerbs immediately halt atrocities.\naugurs slower economic growth.\nClinton's envoy to Belgrade warned Yu-\n(Article on Page A2)\ngostav leaders that they face complete isola-\ntion if Serbs persist in their attacks and\nAT&T plans to seek permission to\nrefuse to accept a peace plan for Bosnia.\nsell international communications\n'The military and human horror has to stop\nservices to businesses with British of-\nnow.\" Reginald Bartholomew said. \"Bos-\nfices, people close to the situation said.\nnian Serbs have to do it now.' He said that if\nthe Serbs resist, the U.S. and its allies will\nThe move follows a similar effort by\nseek an end to the arms embargo on Bosnia's\nBritish Telecom to expand in the U.S.\nlargely Muslim government.\n(Article on Page A3)\nDespite increasing international out-\nrage, artillery attacks continued on\nMicrosoft's profit jumped 36% in\nSrebrenica, where ferocious shelling\nits third quarter, reflecting continued\nMonday killed at least 56 people.\ndemand for its Windows software.\nRevenue surged 41%. The results\nClinton pressed the Group of Seven na-\nslightly exceeded analysts' forecasts.\ntions to boost their contributions to Russia\n(Article on Page B4)\nas the G-7 prepared to unveil an aid package\nin Tokyo. Clinton. who wants to provide an\nWal-Mart's stock slid $1.75, or 6%,\nadditional $1.8 billion in U.S. aid to Moscow,\nwas having a tough time convincing other\nto $27.25 after the retailer said it won't\nnations as well as U.S. lawmakers to\nachieve its historical double-digit\nsupport an increase. (Article on Page A3)\ngrowth in same-store sales this year.\nYeltsin declared that he will resign as\nOther retailers' stocks also skidded.\nRussia's president only if most people vote\n(Article on Page A3)\nagainst him while simultaneously voting\nagainst early parliamentary elections. Oth-\nDigital Equipment's loss narrowed\nerwise - even if he loses the confidence\nto $30.1 million in the latest quarter,\nvote - Yeltsin said he would remain in office\nreflecting operating cost cuts. The\nat least until new elections take place.\ncomputer maker's results fueled ex-\n(Article on Page A10)\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\npectations of a profit for this quarter.\nIsraeli and Palestinian officials gave\n(Article on Page A4)\ntheir tentative backing to a U.S. proposal for\ncontinuous Mideast peace negotiations.\nUpjohn's chairman and chief was\nWashington officials have suggested that\nhospitalized in critical but stable con-\nthe talks be continuous, not round by round.\ndition, and another executive assumed\nonce they resume on Tuesday. diplomats\nhis responsibilities as CEO.\nsaid. The Arabs still haven't formally ac-\n(Article on Page A4)\ncepted an invitation to next week's session.\nIsrael's Rabin and Egypt's Mubarak\nFirst Union's profit more than dou-\nand agreed that prospects are good for the\nbled in the first quarter. while Bank of\nWashington peace talks. Rabin broadly\nhinted that the Mideast discussions could\nNew York's earnings jumped 56% and\nlead to major territorial concessions. He also\nWachovia's net rose by nearly 15%.\nsaid Israel might reopen the occupied terri-\nThe bank companies were boosted in\ntories if Palestinian violence ends.\npart by higher interest income and\nsmaller loan-loss provisions.\nDeliberations ended early yesterday in\n(Article on Page A4)\nthe Rodney King beating trial in Los Angeles\nbecause a juror became ill and was taken to\nExxon launched a campaign in the\na doctor. The nature of the illness wasn't\nscientific community to try to dispel\ndisclosed. but U.S. District Judge John Da-\nthe belief that Alaska's Prince William\nvies said the jury intended to resume delib-\nerations this morning.\nSound suffered long-term damage\nfrom the 1989 Valdez oil spill. The com-\nA U.S. agency urged doctors to be more\npany claims that its own research re-\naggressive in diagnosing and treating ma-\nbuts some government conclusions.\njor depression and recommended the use of\n(Article on Page B1)\nantidepressant medicines in many cases.\nThe government issued a detailed set of\nNetWorth's stock sank 43% after\ntreatment guidelines to be used by physi-\nthe computer company said it will post\nclans. (Article on Page B1)\na loss for the latest quarter, illustrat-\ning how highly touted initial public of-\nA survey of sexual behavior found that\nnearly one-fourth of American men under 40\nferings can quickly produce losses.\nhave had 20 or more sexual partners. and\n(Article on Page C1)\nthat only 2% engage in homosexual behav-\nior. The study, conducted by a research\nHong Kong stocks soared 5.8%\nteam at the Battelle Human Affairs Re-\nWednesday, a day after Britain and\nsearch Centers in Seattle, indicated more\nChina said they would resume talks on\nthan a quarter of the men use condoms.\nthe colony's constitutional future.\n(Article on Page C12)\nSome senior Iraqi officials were killed in\na purge ordered by President Saddam Hus-\nPrecious metals futures prices\nsein. according to travelers recently in\nsoared on news of widespread racial\nBaghdad. Unconfirmed reports spoke of the\nexecution of a former interior minister. but\nunrest in South Africa, with platinum\nthe travelers said they knew only that some\njumping nearly $7 and gold climbing\nmilitary officers and ruling Baath party\n$2 an ounce in heavy trading.\nofficials had been arrested and killed.\n(Article on Page C14)\nA U.N. envoy sought to resolve Haiti's\nMarkets-\npolitical crisis by holding talks in Port-au-\nStocks: Volume 256,054,580 shares. Dow\nPrince with Haitian military rulers and\nJones industrials 3455.64. up 11.61; transpor-\nsupporters of ousted President Aristide. The\ntation 1660.93. up 0.41; utilities 245.99, up\nenvoy, Dante Caputo, wasn't expected to\n0.18.\nmeet with Prime Minister Bazin. who has\nBonds: Lehman Brothers Treasury index\nrepudiated international mediation efforts.\n5125.42. up 17.38.\nCommodities: Oil $20.40 a barrel, off six\nDied: Wallace Stegner, 84, a Pulitzer\ncents. Dow Jones futures index 125.02. off\nPrize-winning writer who celebrated the\n0.20; spot index 122.01, up 0.35.\nAmerican West in his novels and nonfiction,\nDollar: 113.88 yen. up 0.48; 1.5935 marks,\nT 1y. in Santa Fe, N.M., of injuries\nup 0.0115.\nsuffered in a recent auto accident.\nVAT Possibility\nVAT Is Reconsidered\nBy the White House\nIs Reconsidered\nTo Fund Health Care\nAt White House\nContinued From Page A2\nbe ultimately passed on to the consumer.\nDespite the public statements that a\nNational Sales Tax, Ruled\nVAT wasn't under consideration, Ira Ma-\ngaziner, the health-care coordinator in the\nOut in February, Draws\nWhite House, has mentioned it and other\nAnother Look in April\nfinancing options in chats with legislators\nand staffers on Capitol Hill. But some\nadministration officials privately have\nBy MICHAEL K. FRISBY\ncontinued to insist that the president won't\nuse a VAT.\nStaff Reporter of THE WALL STREET JOURNAL\nWASHINGTON The White House re-\nAmong those pushing a VAT are some\nopened the door to a broad-based consump-\nlabor unions, including the powerful\ntion levy, such as a value-added tax, to help\nAmerican Federation of State County and\nfinance President Clinton's health-care\nMunicipal Employees, whose president,\noverhaul proposal.\nGerald McEntee, is a friend and early\nThe president ruled out such a tax in\nsupporter of Mr. Clinton's. They argue that\nFebruary, but his communication director,\ndeploying a VAT would be far preferable to\nGeorge Stephanopoulos, conceded yester-\nexposing workers' health benefits to taxes.\nday that the Health Care Task Force,\nUnions have worked to preserve job bene-\nheaded by Hillary Rodham Clinton, could\nfits, sometimes at the expense of seeking\npropose the tax to the president.\nbigger raises.\n\"If an argument is made, [the presi-\nLining up in opposition to a VAT. Tracy\ndent| will clearly listen to it,\" said Mr.\nMullin, president of the National Retail\nStephanopoulos, who had in the past, along\nFederation, said the decline in retailers'\nwith other Clinton administration officials,\nstock prices yesterday was linked to the\nruled out such a tax, which is praised by\nadministration's renewed interest in such\nsome in the corporate world but opposed by\na tax. \"Advocates characterize a VAT as a\nmany consumers.\nmagic bullet, but in reality it's likely to\nbackfire on the economy and the con-\nHowever, some administration officials\nsumer,\" Ms. Mullin said.\nremain wary of a VAT. Although it could\nA new twist in the administration's\nraise considerable funds, they say the\nhealth-care proposal will be controversial\nconsiderations, according to officials, is\nitself and a VAT would add to the appre-\nthat the task force may propose as national\nhension. Treasury Secretary Lloyd Bent-\nsales tax along with other options. One\npossible wrinkle, which may enable the\nsen, whose opinion wields considerable\nweight with the president, has raised\npresident to reverse himself and accept it.\ndoubts about whether a VAT could be\nis that the taxes he rejected earlier were\naimed at paying a large portion of the cost\nproposed now, particularly because of its\nof health-care overhaul, which could re-\ncomplexity and the fact that Mr. Clinton\nquire as much as $90 billion of new federal\nalready has proposed tax increases in his\nspending annually. The new version is\neconomic package. Mr. Bentsen noted in a\nenvisioned as a smaller tax that would be\nrecent speech that leaders in Canada and\ncombined with other measures.\nJapan suffered severe political damage\nStill, administration officials said it is\nfrom the backlash against VATs in their\ndifficult to seriously consider such a tax\ncountries.\nMr. Stephanopoulos was pressed to\nuntil the health-care package has been\naddress the issue publicly- and quell some\ncompleted, identifying which services\nneed to be paid for.\nof the confusion-after two administration\nofficials said a VAT was back on the\ntable.\nAlice Rivlin, deputy director of the\nWhite House Office of Management and\nBudget, yesterday told the National Asso-\nciation of Manufacturers that a VAT or\nsome other variation of a national sales tax\nis \"clearly a possible candidate\" for fi-\nnancing the health-care package. She even\nseemed to campaign for it by saying,\n\"the value-added tax makes sense for a\ncountry that wants to encourage invest-\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\nment.\"\nMoreover. Health and Human Services\nSecretary Donna Shalala told USA Today\nthat a VAT could be used for health care.\nBut her press secretary, Avis LaVelle,\ncautioned that it is Mr. Clinton who \"will\nmake decisions on what is the most viable\noption for financing.\" She said that when\ntask force \"members speak of things being\nconsidered. they are talking about options\nthat will be presented to the president.'\nIt was still unclear, however. whether\nthe president has actually changed his\nview and would use a VAT for health care\nor whether only the rhetoric has changed.\nA month ago, Mr. Stephanopoulos said: \"It\nwill not be in that proposal.\" But that\nchanged yesterday to \"it's something that\nis being looked at at some level in the task\nforce.\"\nThe tax would be levied on the value\nadded to a product at each stage of produc-\ntion, with a credit provided for the tax that\nwas imposed at the prior stage, and would\n45\nResentful of Negative Coverage, Clinton Spurns\nwords. His first encounter with Phil Dona-\nhue was especially instructive, aides say.\nAfter a series of rough questions from the\nThe Media, but He May Need to Woo Them Back\nhost, Mr. Clinton reared back and attacked\nthe press for diverting the campaign from\nthe issues that mattered. The audience\napplauded vigorously.\nBy JEFFREY H. BIRNBAUM\nhe will when he gets below 50% in job\nfied top administration official as saying\n'Larry King Liberated Me'\nStaff Reporter of THE WALL STREET JOURNAL\napproval\" - a level he's hovering around\nthat Mr. Clinton could \"roll over\" Senate\nWASHINGTON Barely a week Into his\nnow. \"He'll be having them up to the\nThere isn't anything unusual about a\nFinance Committee Chairman Daniel\nadministration. President Clinton gath-\nresidence for cocktails or having them\npresident trying to \"go over the heads\" of\nMoynihan (D., N.Y.). \"This puts me in the\nered the entire White House staff into the\nout for dinner.\"\nthe Washington press. Franklin Roosevelt\nposition of having to apologize for some-\nelegant East Room for a pep talk and a\nhad his fireside chats. Richard Nixon\nOthers play this idea down. The Wash-\nthing I don't even believe,\" Mr. Clinton\nwarning: Don't leak to the press.\nington press is ready to pounce on any\nstarted the Saturday morning radio ad-\nsald during the Oval Office meeting, \"and\nAmid exhortations to excel in other\ndresses. And Jimmy Carter went on call-in\nnow I have to apologize to a friend.\"\nways, Mr. Clinton admonished his aides\nshows. But Mr. Clinton is the first presi-\nPress Availability\nAnother time Mr. Clinton was SO in-\nagainst unauthorized dealings with the\ndent to boast about his intentions. At a\nFormal news conferences held in first 12\nmedia. \"We don't want to get caught up in\ncensed about an article he had just read in\nblack-tie dinner for radio and television\nweeks in office\nthe Washington Times that he threw down\nthe same old Washington games that\ncorrespondents last month, Mr. Clinton\nparalyzed past administrations,\" he em-\nNixon\nhis copy of it in front of staffers who were\nconfessed, You know why I can stiff you\n(1st term)\n5\ngathered one Saturday morning to watch\nphasized, referring to damage that has\non the press conferences? Because Larry\nhis weekly radio address. \"This is a waste\nbeen caused by unwanted disclosures in\nNixon\nKing liberated me by giving me to the\n(2nd term)\n3\nof paper, he exclaimed.\nthe past.\nAmerican people directly.\"\nThe incident isn't isolated. Clinton com-\nSuch antipathy is partly a remnant of\nTo be sure, queries from voters are\nFord\n4\nMr. Clinton's harsh treatment by the press\nmunications staffers bear many wounds\nsofter, more respectful in tone and more\nduring the early part of last year's presi-\nfrom Mr. Clinton's tirades over printed or\npersonal than those from Washington re-\nbroadcast stories that conflicted with his\nCarter\n5\ndential campaign. The Clintons felt brutal-\nporters. But according to Mr. Sabato,\nized by the Gennifer Flowers tabloid reve-\npreferred message. He is known to become\n\"Most of the questions reflect what they\nReagon\nlations and were bitter about much of the\nespecially irate when aides discuss in\n(1st term)\n2\nsee in the headlines or what they saw last\nsubsequent news coverage of Mr. Clinton's\npublic what he considers to be his private\nnight on the evening news.\"\nReadan\navoidance of the draft during the Vietnam\nthoughts or actions.\nStill, Mr. Clinton continues to get politi-\n(2nd term)\n2\nWar. They also haven't forgotten that\nIn short, Bill Clinton distrusts, and in\ncal mileage out of bashing the press. Even\nearly in the campaign much of the estab-\nat last month's annual Gridiron Dinner\nmany ways dislikes, the Washington\nBush\nlishment press declared Mr. Clinton's can-\npress. Probably not since Richard Nixon\nthrown by Washington's top journalists,\ndidacy all but dead.\nhas a president come into office with so\nthe president's jokes had barbs. \"I'm glad\nCitaton\nDuring that same period, Mr. Clinton,\nmuch antagonism toward the media that\nto be here speaking for the first time at the\nwho for years had cultivated the national\nprovide the American people with the bulk\nGrid-lock dinner, he told the crowd. \"I\n*President Reagan was shot on March 30, 1981\npress and gotten favorable coverage, be-\nof what they know about him.\nwant to apologize to Senator Dole and\nSource: Public Papers of the President, Congressional\nOuarterly\ngan to seek alternative forums to convey\nPresident Bush.\nI always thought they\n'Deeply Resentful'\nhis message and to promote himself. In the\nwere responsible for gridlock, but now I\n\"He's personally contemptuous of the\nmistake, these people contend, regardless\nNew Hampshire primary campaign, he\nknow it's the press that did it.\"\npress and deeply resentful of his treatment\nof the president's attitude. \"I don't recall\nturned to town hall meetings and was able\nWhite House aides make little effort to\nat their hands,\" concludes Larry Sabato, a\nto use them to focus on the substance of his\nany example, other than John F. Kennedy,\ncounter the impression that the president\npolitical science professor at the Univer-\nof the press cutting any president any\nproposals rather than the scandal of the\nthinks ill of the Washington press. They\nsity of Virginia and a student of presidents'\nslack,\" Mr. Sabato says. Adds Jody Pow-\nday.\nassert Mr. Clinton has been quite open and\npress relations.\nell, who was President Carter's press\nSoon thereafter Mr. Clinton began to\nhas taken more questions from Washing-\nOne indication is that in his first 12\nsecretary: \"Most of what people are read-\nappear on talk shows, both on television\nton reporters than any of the last three\nweeks in office, Mr. Clinton has held only\ning as animosity is really the way they are\nand radio, and was able to deliver his\npresidents. But most of these questions\none formal news conference in which he\ntrying to go about selling major programs\nthemes at greater length and in his own\nwere at photo sessions, where access is\nalone took questions from the Washington\nthat are tremendously complex.\npress corps; that's the fewest of any presi-\nBut those inside the White House find\ndent, going all the way back to Mr. Nixon\nplenty of evidence of enmity from Mr.\nand including President Reagan, who was\ntightly controlled by the White House.\nunusual for a new president. \"Almost\nClinton toward the Washington press. Af-\nshot in the midst of this period in 1981. And\nWhen asked directly if Mr. Clinton likes\nevery president comes into office claiming\nter he read an article in the Washington\neven in his single encounter, Mr. Clinton\nthe Washington press, Mr. Stephano-\nthey are going to have the most open\nPost about sailors bad-mouthing him dur-\nwas angered that the question dominating\npoulos, the White House communications\nadministration in history and over time\nIng his recent visit to the USS Theodore\ndirector, answers obliquely, \"I think he\nthey close up.\" says Stephen Hess, a press\nthe news was about homosexuals in the\nRoosevelt, Mr. Clinton gave his communi-\nlikes reporters.'\nexpert at the Brookings Institution. \"The\nmilitary. a subject he would rather hear\ncations director, George Stephanopoulos, a\nless about.\nWhether he likes the Washington press\ndifference is, this president didn't even\ntongue-lashing. \"This isn't true,\" Mr.\nor not, Mr. Clinton's view of the press is\nmake the gesture.\"\nSome longtime observers contend that\nClinton was overheard bellowing. He even\nantagonistic relations with the press corps,\nwent on to blame Mr. Stephanopoulos for\neven when understandable, frequently\nallowing the story to appear. (Mr. Stephan-\ncome back to haunt a president during\nopoulos declines to comment.)\ntough times.\nMr. Clinton earlier had a similar shout-\n\"I don't think he does need them-\ning episode with several members of his\nnow,\" says Michael Deaver, President\nsenior staff. The outburst followed a Time\nReagan's communications director, \"but\nmagazine column that quoted an unidenti-\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\nClinton Experiences\nDifficulty in Finding\nClinton Faces Tough Task in Winning\nMore Aid to Russia\nLarger Contributions for Russian Aid\nContinued From Page A3\nthough I feel there are urgent needs and\nBy CARLA ANNE ROBBINS\npresident \"hopes that they'll participate\nopportunities in Russia,\" said Sen. Patrick\nAnd JACOB M. SCHLESINGER\nwith him and the other G-7 countries,' Mr.\nLeahy (D., Vt.), who heads the foreign aid\nStaff Reporters of THE WALL STREET JOURNAL\nBentsen said.\nappropriations subcommittee.\nTOKYO President Clinton, who wants\nThe U.S. strategy, say U.S. officials,\nSeparately. the U.S. Export-Import\nto provide an additional $1.8 billion in U.S.\nhas been \"to lead by example\" while\nBank is expected to announce today that it\naid to Russia and other former Soviet\nthey try to \"leverage\" more aid. The U.S.\nhas signed a framework agreement with\nrepublics, is having a tough time convinc-\npledge of $500 million for a new privatiza-\nRussia, opening the door to $2 billion or\ning others to follow his lead.\ntion fund, for example, is contingent on\nmore in loans and loan guarantees for the\nEven as the foreign and finance minis-\nthe other members anteing enough to meet\npurchase of oil and gas equipment and\nters from the Group of Seven industrial\na $2 billion target. It also is intended to\nservices from U.S. firms.\nnations were getting ready to sit down\nencourage another $2 billion contribution\nWednesday for the start of a two-day\nfor the fund from the World Bank and\nemergency meeting here on Russia, Mr.\nEuropean development bank.\nClinton was dialing up some of their bosses\nEven with such incentives, the sell\nto lobby for larger contributions. The pres-\nhasn't been easy.\nident and his aides were going through the\nWhen Secretary of State Warren Chris-\nsame drill with the U.S. Congress. seeking\ntopher made his pitch at the first closed-\nto win support for more spending on Rus-\ndoor session - warning of dire conse-\nsia.\nquences if Mr. Yeltsin fails in his reform\nThe details of the G-7 package were to\neffort - the response was less than over-\nbe announced in Tokyo Thursday. The\nwhelming. Six separate foreign ministers,\noverall package of multilateral loans, bilat-\nand then six finance ministers, rose to\nrecite all the contributions their countries\nNarrow Definition of Defeat\nalready had made to support Russian\nRussian President Yeltsin, speaking at a\nreform and to explain why, given the tough\nnews conference ahead of the April 25\neconomic times at home, it would be hard\nreferendum. said he will resign only if\nto do more. Germany's foreign minister,\nmost people vote against him and simul-\nKlaus Kinkel, later said his country had\ntaneously give resounding support to the\n\"reached the bottom line. We don't have\nCongress. See article on Page A10.\nmuch room for maneuvering left.\"\nThere are other concerns as well. The\neral grants and credits and debt forgive-\nness is likely to top $30 billion including at\nGerman and British foreign ministers ex-\nleast $15 billion that the International\npressed hope that Russia would cleave\nMonetary Fund, World Bank and European\nmore closely to Western foreign policy in\nBank for Reconstruction and Development\nBosnia and the Baltics. The Japanese want\nplan to lend Russia on somewhat easier\nto get back four tiny, disputed islands. And\nterms than in the past.\nthe Italians plan to remind the Russian\nThe $1.8 billion U.S. contribution, about\nministers Thursday, when they join the\nsession, of some $40 million in bad loans.\n$1.5 billion of which would go to Russia,\nwould be in addition to the $1.6 billion\nU.S. officials, nevertheless, are hopeful\nthat beyond the new bilateral packages\npackage Mr. Clinton unveiled 11 days ago\nin Vancouver. British Columbia, after his\nthat were to be announced Thursday. more\naid will be coming before the planned July\nsummit with Russian President Boris Yelt-\nsin.\nsummit meeting of G-7 heads of state.\nOf that $1.8 billion - most, if not all, of\nBritain announced Wednesday that it\nwould extend an additional $600 million in\nwhich requires congressional approval-\n$500 million would be earmarked for a new\nexport credits, investment insurance and\ntechnical assistance to Russia.\nfund to help privatize large industries.\nOther funds would help repair leaky Rus-\nLobbying for Russian aid is likely to\nsian oil wells and gas pipelines. resettle\ncontinue long past this week's meeting.\nRussian military personnel. improve nu-\nU.S. officials already are girding for\nclear safety, encourage small businesses.\na battle over the privatization fund. It is\nexpand student-exchange and technical-\nintended to encourage the sale or shut-\nexchange programs, and dismantle nu-\ndown of large, unprofitable state enter-\nclear weapons. Mr. Clinton's fiscal 1994\nprises. But a good part of the money will\nbudget includes $1.1 billion in new aid to\nhave to go to cushioning the social\nthe former Soviet republics - some $700\nblow-especially in one-industry towns-\nmillion less than the new pledge. U.S.\nby helping to retrain workers and weaning\nofficials wouldn't say where the new\nlocal hospitals and schools from industry\nhandouts.\nmoney would come from.\nOfficials stressed as late as Wednesday\nCritics could brand the fund a welfare\nnight that the numbers for the overall G-7\nprogram - a taboo not only on Capitol Hill\npackage were changing hourly, as the\nbut in G-7 countries. which have their own\nlobbying process continued in closed-door\ndomestic problems. But without such a\nsessions. The G-7 includes the U.S., Japan,\nfund, U.S. officials say, any proposal\nGermany, Britain, France, Canada and\nto shut down Russian factories could set off\nItaly.\na revolution against reform and Mr. Yelt-\nEven the latest numbers may not be\nsin.\nfinal. Treasury Secretary Lloyd Bentsen\nIn the U.S., at least some congressional\ntold reporters that he expected Mr. Clinton\nDemocrats aren't yet convinced by Mr.\nto discuss the need for additional Japanese\nClinton. \"Before I will be willing to support\ncontributions - beyond the $1.8 billion To-\nthis supplemental request for Russia, I am\nkyo pledged this week - when he meets\ngoing to need a lot more explanation of\nwith Japanese Prime Minister Kiichr\nwhere the money is coming from, even\nMiyazawa in Washington tomorrow. The\nPlease Turn to Page A16, Column 1\nWATT\n47\nFederal Reserve's Purchase of Coupons to Boost\nBank Reserves Lifts Treasurys in Quiet Trading\nBy THOMAS D. LAURICELLA\nAnd TERENCE DONNELLY\nTreasury Yield Curve\nSpecial to THE WALL STREET JOURNAL\nYields as of 4:30 p.m. Eastern time\nNEW YORK - An open-market pur-\n8.00%\nchase of notes and bonds by the Federal\n7.50%\nYesterday\nReserve provided a modest lift to an other-\n7.00%\nweek ago\nwise quiet U.S. Treasury market.\n6.50%\n4 weeks ago\nThe benchmark 30-year Treasury bond\n6.00%\nrose more than 3/8 point, or more than $3.75\nfor a bond with $1,000 face value, to\n5.50%\n104 24/32, yielding 6.75%, down from 6.78%\n5.00%\non Tuesday. The 10-year note rose more\n4.50%\nthan 4 point to 102 23/32 to yield 5.87%,\n4.00%\ndown from 5.91%.\n3.50%\nThe Fed arranged the purchase, which\n3.00%\nis known as a pass, as a means of address-\n2.50%\ning a seasonal need to inject reserves into\n3\n6\n1\n2\n3\n5\n7\n10\n30\nmos.\nyr\nmaturities\nthe banking system.\nSource: Technical Data's Bond Date\nTypically at this time of year. corporate\nand individual tax payments sent to the\nTreasury create a drain on banks' reserves\nYIELD COMPARISONS\nthat the Fed must counter.\nWhile the move had no monetary policy\nBased on Merrill Lynch Bond Indexes. priced as of\nsignificance. it did have the same impact\nmidaffernoon Eastern time.\n52 Week\non prices as a buyer entering the market\n4/14\n4/13\nHigh\nLow\nCorp.-Govt. Master\n5.63%\n5.66%\n7.15%\n5.62%\nand ridding dealers of a significant\nTreasury 1-10yr\n4.52 4.54 6.21 4.49\namount of unwanted coupon securities.\n10+ yr\n6.78\n6.80\n8.13\n6.74\nAgencies 1-10yr\n5.29\n5.30\n6.78\n5.29\n\"It was probably on the larger side,\n10+ Yr\n7.16\n7.19\n8.35\n7.11\nprobably about $4 billion.\" said Marilyn\nCorporate\n1-10 yr High QIty\n5.87\n5.91\n7.63\n5.87\nSchaja, money-market economist at Don-\nMed QIty\n6.36\n6.41\n8.10\n6.36\n10 High Qity\n7.54\n7.57\n8.67\n7.54\naldson, Lufkin & Jenrette Securities.\nMed QIty\n7.95\n7.97\n9.09\n7.95\nThe move had been anticipated for\nYankee bends(\n6.98\n7.02\n8.45\n6.90\nCurrent-coupen mortgages (2)\nsome time, and the only real question was\nGNMA 6.50%\n6.88\n6.92\n8.31\n6.65\nwhether the Fed would be buying bills or\nFNMA 6.50%\n6.88\n6.92\n8.41\n6.76\nFHLMC8.00%\n6.54\n6.55\n8.32\n6.34\ncoupons.\nHigh-vield corpora\n10.45\n10.48\n11.77\n10.39\nNew tax-exempts\nBefore the coupon pass. Treasury\n10-yr G.O. (AA)\n5.00\n5.00\n6.03\n4.65\nprices were little changed. But after the\n20-yr G.O. (AA)\n5.55\n5.55\n6.63\n5.30\n30-yr revenue (A)\n5.85\n5.85\n6.80\n5.80\npass, Treasurys were able to close near\nNote: High quality rated AAA-AA; medium quality\ntheir highs for the day.\n-BBB/Baa; high vield, BB/Ba-C\n(1) Dollar denominated. SEC -registered bonds of for.\n\"The market had a little bit of a bid left\nelgn Issuers sold in the U.S. (2) Reflects the 52-week high\nand low of mortgage-backed securities indexes rather\nover at the open from the rock 'n' roll we\nthan the individual securities shown.\nsaw\" on Tuesday. said Alan Levenson, a\nmoney-market economist at UBS Securi-\ndustrial production and the University of\nties Inc. \"It lost some of that, but then got it\nMichigan's early reading on April con-\nback on the coupon pass, he said.\nsumer confidence.\nAside from the coupon pass, little else\nMuch of the data the rest of this week\ntranspired yesterday. \"That was the high-\nand into next week will probably continue\nlight of the day, said Matthew Alexy,\nto be depressed by the impact of the March\nmarket strategist at First Boston Corp.\nEast Coast blizzard and thus be supportive\nThe little trading that occurred was\nfor Treasurys, participants said.\ndominated by dealers, with most institu-\n\"In the near term. the data are going to\nIonal accounts staying on the sidelines.\nbe positive,\" said Mr. Levenson of UBS.\nAnd overall, the market remains con-\nfined to ranges that have persisted for\nCorporate & Junk Bonds\nweeks, although prices are at the upper\nUtilities continued to sell new debt\nend of the bands.\npaper yesterday. although the new supply\n\"This thing is just zigging and zagging,\ndoes not appear to be putting much of a\ndoing a little bit better day by day,' he\ndent in secondary prices.\nsaid. \"But we're very close to what\nInvestment-grade bonds ended flat to 1/4\nwould be the top of the trading range.\"\npoint higher. but volume was thin. Many\nWith the bond yielding 6.77%. it is not\nretail investors are concerned that interest\nfar from its 16-year low yield of 6.72% set on\nrates lack the momentum to decline fur-\nMarch 8. But without fresh news as a cata-\nther, although institutional investors seem\nlyst for taking the market through its\nmore confident, traders said.\nInterest rates have steadily dropped\nShort-Term Interest Rates\nthis month. erasing in large part the\n0.30-percentage-point increase in yields in\n(Weekly averages)\nMarch.\nFederal Funds\n\"We're clearly at a turning point,\" one\ntrader said. 'But which way?\n3-Month Commercial Paper\nNonetheless, with intermediate and\n3-Month Treasury Bills\nlong-term interest rates hovering just\n4.0%\nabove near-record lows, companies con-\ntinue to sell debt to refinance outstanding\ndebt and lock in cheap borrowing rates.\nUtilities offered more than half of yes-\n3.5%\nterday's $1.7 billion issuance, which in-\ncluded new offerings from Georgia Power\nCo., a Southern Co. unit, FPL Group Inc. 's\nFlorida Power & Light Co. unit, and Penn-\n3.0%\nsylvania Power & Light Co.\nOne reason why utility debt continues\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15. 1993\nto find buyers in the face of so much recent\nsupply is that investors, flush with a lot of\n2.5%\ncash to invest, have seen dwindling supply\no\nN\nD\nJ\nF\nM\nA\nof outstanding industrial paper maturing\n1992\n1993\nin seven to 10 years. said Mark Grant,\nfixed-income managing director at Rod-\nSource: Federal Reserve Bank of New York\nman & Renshaw Inc.\n\"The supply of paper in that sector has\nhighs, prices are likely to languish in tight\ndried up, said Mr. Grant. This suggests\nranges, players said.\nthat a permanent move to a lower interest\n\"We're going to need some better eco-\nrate base could be under way, he added.\nnomic data,\" said Mr. Levenson of UBS.\nSeparately, investors shrugged off\nUnfortunately for those hoping for a\nnews that Canadian utility Ontario Hydro\nnear-term break out of the ranges, the\nwill be divided into three separate operat-\neconomic data on deck in coming sessions\ning divisions. The utility, which is owned\ndoes not appear up to the task. \"We're\nby the province of Ontario, should com-\npretty much through the data cycle. The\nplete its reorganization by July, company\nnews that we are going to be getting is\nofficials said.\nsecondary in nature,' Mr. Alexy said.\nWhile it was unclear how the move\nDue out today are the report on weekly\nwould affect the utility's debt outstanding.\njobless claims and the Philadelphia Fed-\ntraders said they were confident that the\naral Reserve's Business Outlook Survey for\nprovince would continue to stand behind\n1/2\nApril.\nOntario Hydro's obligations. The reorgani-\nSlated for release tomorrow are data on\nzation had been expected, they added.\nFebruary merchandise trade, March in-\nOntario Hydro bonds ended little\nchanged.\nMunicipal Bonds\nMunicipal bonds performed strongly\nonce again because of solid demand in the\nprimary and secondary sectors of the\nmarket.\nIn new-issue dealings. there was heartv\n48\nbuying of the more than $1 billion of bonds\nintroduced. and several underwriting\ngroups repriced their offerings to raise\nprices and lower yields.\nDespite the latest supply spurt. second-\nary market issues were generally 1/8 to %\npoint higher in late trading. The Jackson-\nville. Fla., Electric Authority's 5.50% reve-\nnue refunding bonds due 2013 finished %\nfirmer at 97%. yielding 5.68%.\nIt's clear that the mood about the\nmarket is \"positive\" after the big down-\nward correction last month. but heavy\nsupply could still cause problems for\nmunis, a New York trading manager\nsaid.\nLargely because of quick-paced pric-\nings last month. there was a long. steep\ndecline in tax-exempt bond prices. While a\nnumber of offerings are still on a day-to-\nday pricing basis after the slump. issuance\nis starting to pick up again after a full\nbefore the Easter holiday.\nPennsylvania was among the issuers of\nnew debt yesterday. A Lehman Brothers\ngroup won the state's $420.3 million of First\nSeries of 1993 general obligation bonds\nwith a bid setting the true interest cost at\n5.1475%. Yields for reoffered bonds were\nGinnie Maes were flat at 100 23/32. Freddie\nyesterday.\nset at 3.40% in 1995 to 5.60% in 2011-13.\nMac Golds were up 3/32 at 100 31/32 and\n\"The volatility of the current environ-\nThere was an unsold balance of $23.9\nFannie Maes were 3/32 firmer on the day\nment is causing investor uncertainty re-\nmillion in late trading, Lehman Brothers\nat 100 25/32. Ten-year Treasury notes rose\ngarding the possibility of an even lower\nsaid.\n6/32.\nrate backdrop and thus is fueling inertia\".\nMoody's Investors Service Inc. has\n\"There were a lot of sellers - 6½s. 7s.\nin the mortgage-backed securities market,\nrated the issue single-A-1. and Standard &\n7'25, you name it and they were selling it,\nwrites Adrian Katz in a recent Prudential\nPoor Corp. has assigned a double-A-mi-\nsays one trader. who characterized this\nSecurities Inc. report called \"Differentiat-\nnus rating.\nsession as \"very busy\" for his trading\ning Long-Term Opportunity from Short\ndesk. Mortgage securities holders were\nTerm Uncertainty.\nMortgage & Asset-Backed Securities\n\"trying to take advantage of the (recent)\nBut looking forward. demand should\nThe mortgage securities market was\nmarket uptick\" to take profits.\nexperience a \"dramatic turnaround that\nlittle changed. trailing slightly behind\nTraders noted that prices, however,\nshould more than offset any supply\nTreasurys amid profit-taking and linger-\nwere confined to stifling ranges all session.\ngrowth.\" he writes. \"Brace yourself for\ning prepayment concerns.\nMeanwhile. there were no new real estate\nfurther volatility. but we believe now\nAmong 7% securities for May delivery.\ninvestment conduit offerings announced\nis the time to invest.\nTHE WALL STREET JOURNAL THURSDAY. APRIL 15 1002\n2/2\n49\nShe Can Be Grateful They Didn't\nGive Her Extra Heads or Limbs\nBy DAVID WESSEL\nwould then draw their pensions tax-free.\nStaff Reporter of THE WALL STREET JOURNAL\nBut she never mentioned individual retire-\nWASHINGTON - Alicia Munnell hoped\nment accounts, and her idea isn't part of\nfor a little attention when she landed a job\nthe Clinton economic plan.\nin the Clinton Treasury Department. But\nMs. Munnell isn't talking: she's await-\nshe never expected this.\ning Senate confirmation as assistant Trea-\nIn the latest issue of the supermarket\nsury secretary for economic policy- good\ntabloid the Star, Ms. Munnell gets nearly a\njob, to be sure, though not the president's\nfull page, complete with a seven-inch-high\nNo. 2 economic adviser, as the Star has it.\nphoto and a headline that identifies her as\nW. Thomas Kelly, an employee-bene-\n\"Clinton's #2 economic adviser.\" That\nfits and insurance-company consultant\noutshines Vanna White, who on the same\nfrom Malvern, Pa., got wind of her Fed\npage gets only a two-inch photo (\"Doc\narticle. He has flooded reporters and\norders Vanna: Quit suntanning\").\nWashington officials with letters of out-\nIt's an unusual place to find a Wellesley\nrage on behalf of the Savers and Investors\ngraduate and Harvard Ph.D. who was\nLeague, of which he is the president and\nsenior vice president of the Boston Federal\nprimary backer. \"Any person with one\nReserve Bank for the past decade. What\nscintilla of common sense,\" Mr. Kelly\ncaught the Star's eye, it says, is that \"her\nwrote Treasury Secretary Lloyd Bentsen,\npet idea to solve the nation's deficit is to\n\"let alone any sound economic sense,\nGRAB 15 PERCENT out of your IRA ac-\nwould violently disagree with Munnell.\"\ncounts and pension plans.\"\nAfter seeing a few of Mr. Kelly's letters,\nThe Star's article has a germ of truth.\nHenry Aaron, a Brookings Institution\nMs. Munnell, 50 years old. wrote last year\neconomist, wrote a reply: \"I trust that your\nin a Boston Fed publication that individ-\nletter will be recognized as the wild ad\nuals' taxable income should include contri-\nhominem allegations of someone speaking\nbutions employers make to pension funds;\nfor a special interest who, lacking solid\nnow, those contributions aren't taxed until\narguments, resorted to mud.\" And he\nwithdrawal. She proposed a one-time 15%\nhadn't even seen the Star yet.\ntax on all pension-fund assets and a 15%\nMr. Kelly, undaunted, issued a news\nannual tax on pension earnings; retirees\nrelease summarizing Mr. Aaron's letter.\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\n50\nNational Medical\nthat federal and state agencies were inves-\ntigating whether some of its psychiatric\nfacilities engaged in improper practices.\nDiscloses Probe\nAt that time, the company said it believed\nthe most important investigations were in\nTexas, New Jersey and Florida.\nOf Two Hospitals\n\"The investigations in Texas and New\nJersey remain active, but to the com-\npany's knowledge, there has been no sig-\nBy RHONDA L. RUNDLE\nnificant investigative activity in Florida\"\nStaff Reporter of THE WALL STREET JOURNAL\nsince November, according to yesterday's\nNational Medical Enterprises Inc. dis-\nfiling.\nclosed that its two psychiatric hospitals in\nA former employee of the Laugh-\nMissouri are under federal investigation,\nlin Pavilion in Missouri said he thinks\n5\ndelivering another setback to the com-\nthe investigators may be looking at that\npany's efforts to move beyond the prob-\nfacility in part because of its former ad-\nlems of its psychiatric division.\nministrator. After the administrator left\nIn a filing with the Securities and\nLaughlin in 1990, he went to Colonial Hills\n10\nExchange Commission, the company said\nHospital. a National Medical facility in\n10\nit has \"learned that a federal investigation\nSan Antonio, Texas, that came under\n19\nwhich the company believes to be signifi-\nheavy fire during a state investigation two\n10\ncant is being conducted in Missouri relat-\nyears ago. It later closed.\n10\ning to practices at two psychiatric facilities\n\"I am under subpoena to produce\n2\nwithin that state.\"\ndocuments to the FBI,\" said the for-\nInvestors reacted negatively to the\n2\nmer Laughlin employee, who asked not to\nO\nnews. Shares of the Santa Monica, Calif.,\nbe identified. National Medical main-\nhealth-care services concern fell $1.125 to\ntained an elaborate tracking system that\nclose at $7.125 in New York Stock Exchange\nput tremendous pressure on all employees\ncomposite trading.\nto admit patients regardless of medi-\nA National Medical spokesman said\ncal need, he said. The administrator \"did\nthe company recently received subpoenas\nexactly what National Medical wanted.\"\nfrom federal grand juries in St. Louis and\nthe former employee said.\nKansas City to produce documents from its\nLaughlin Pavilion facility in Kirksville and\nThe Texas probe ended in a settlement\nin June under which National Medical\nits North Hills hospital in Kansas City.\nagreed to pay about $9 million, including\n\"The inquiries are no different from the\nthe value of surrendered claims. National\nkinds of inquiries under way in Texas,\" the\nMedical didn't admit wrongdoing, but\nspokesman said.\nagreed to make sweeping changes in\nNational Medical issued a statement\nthe operation of its psychiatric hospi-\nlate yesterday saying it doesn't believe the\ntals.\ninvestigations are \"financially significant.\nThe company also faces lawsuits filed\nThere has been no indication from federal\nby a number of insurance companies that\nauthorities that any individual or facility is\nhave charged National Medical perpe-\na specific target or subject of the investiga-\ntrated a nationwide scheme to bilk them of\ntion or what the eventual goal of the\nmillions of dollars in psychiatric claims.\ninquiry may be.\"\nNational Medical has denied the allega-\nNational Medical said a year ago\ntions.\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\nMentor Set to Stop\nMaking Implants,\nPay $24 Million\nBy RHONDA L. RUNDLE\nStaff Reporter of THE WALL STREET JOURNAL\nMentor Corp. agreed to pay $24 million\nand eventually to stop making silicone\nbreast implants as part of a legal settle-\nment with women who claim they were\ninjured by the implants.\nMentor. based in Santa Barbara, Calif.,\nis the first manufacturer to reach an\nagreement with us, said Margaret Moses\nBranch. an Albuquerque attorney repre-\nsenting plaintiffs in the consolidated liti-\ngation. Women with Mentor implants will\nstill have a claim against Dow Corning\nCorp., which made the gel used in Mentor's\nproduct. she said. Dow Corning is a a joint\nventure of Dow Chemical Co. and Corning\nInc.\nIn national over-the-counter trading.\nMentor rose 75 cents to $10.75.\nFunds collected from Mentor will be\ndistributed under instructions from a fed-\neral court in Birmingham. Ala., that has\nbeen overseeing the litigation against\nMentor and a number of other manufac-\nturers. More than 1,000 women with Men-\ntor implants have filed claims SO far, Ms.\nBranch said. The pact must be approved by\nthe court.\nIn the accord, Mentor agreed to stop\nmaking silicone implants within 18 months\nafter the settlement is completed. That\ncould take between six months and a year,\nestimated Mentor Chairman and Chief\nExecutive Officer Christopher J. Conway.\nMentor is the only remaining maker of\nsilicone breast implants in the U.S. Dow\nCorning and other companies stopped\nmaking them last year after safety con-\ncerns caused the Food and Drug Adminis-\ntration to put a moratorium on sales. The\nFDA now allows restricted sales. mainly\nfor cancer patients who need breast recon-\n)\nstruction.\nIn settling, Mentor said it \"denies any\nwrongdoing or legal liability of any kind.\nS\nWe have settled in order to avoid the costs\nand risks associated with this kind of\nlitigation.\"\nThe proposed settlement will result in a\nper-share charge of between $1.15 and\n$1.30 a share for the fourth quarter ended\nMarch 31, Mentor said. Mr. Conway said\nhe expects insurance to cover part of\nthe settlement. \"It won't be a very big\nportion. but we hope they will pay some.\"\nSilicone implants contributed roughly\n20% of Mentor's revenue of about $115\nmillion in fiscal 1993, Mr. Conway said.\nThe company is developing a new filler\nmaterial that it hopes will be available by\nthe time it ceases production of silicone\nimplants.\nLitigation is continuing against several\nother defendants, including Dow Corning.\nHonda. Isuzu Marketing Pact\nDETROIT Honda Motor Co. and Isuzu\nMotors Ltd. finalized their previously an-\nnounced agreement to begin marketing\neach other's vehicles.\nUnder the agreement. Honda will begin\nselling the Isuzu Rodeo sport utility vehicle\nin January 1994 in the U.S. Honda said it\nexpects to sell between 20,000 and 30,000 of\nthe vehicles annually. In Japan. Honda\nwill start selling the sport utility vehicles in\nthe fall of 1993. The agreement allows\nHonda to fill a gap in its product line\nwithout much start-up cost. The market for\nrecreational vehicles is strong in the U.S.\nand Japan. while demand for cars has\nbeen sluggish.\nWALT JOURNAL THURSDAY APRIL 15. 1993\n52\nWORLD\nBRITISH RECOVERY GAINS SPEED\nWIRE\nA surprisingly big increase in Brit-\nain's manufacturing output last month left\nKOREA WIDENS CORRUPTION FIGHT\nsome economists convinced the recession\nthat began in the 1990 third quarter is over.\nAs part of its anti-corruption drive.\nA March rise of just 0.2% had been ex-\nSouth Korea's new government began a\npected, but production climbed 1.2% from\nbanking investigation in a crackdown on\nJanuary. for which the increase was re-\nillegal transfers of money abroad.\nvised to 1.3% from 0.8%. Economists also\nSpeculation has grown that wealthy\nwere pleased by a 1.2% climb in factory\nKoreans launder or hide ill-gotten cash\noutput for the three months ended Feb. 28\nthrough foreign banks.\nfrom a year earlier, saying this further\nRegulators investigation of overseas\nreinforced the recovery scenario. New\nremittances and loans includes examina-\ngoods aren't stacking up in warehouses,\ntions of three of the 12 Korean branches of\nsignaling growing consumer demand.\nCiticorp's Citibank unit. The bank declined\nto comment. Among foreign banks in Ko-\nrea. Citibank is the most active, with a\nEUROPEANS EMBRACE FREER TRADE\nretail emphasis, while most others have\nThirty European countries agreed in a\nsmall branches doing wholesale business\nCopenhagen conference that free trade is\nlargely with corporate customers.\nthe key to undoing the legacy of communist\nSeparately. Choi Hyong Woo, a confidant\nrule. The 19 Western and 11 Eastern coun-\nof President Kim Young Sam, resigned as an\ntries emphasized the importance of liberal\nofficer of the ruling Democratic Liberal\npolicies to Eastern countries' transition to\nParty after the discovery of a bribe in his\nmarket economies. Dissatisfied by Euro-\nson's admission to a college. Mr. Choi\npean Community promises of lower trade\nhad a key role in the anti-corruption cam-\nbarriers, East Europeans pressed for more\npaign that has forced a dozen legislators and\naccess to Western markets and a clear\nsenior government officials to quit.\npath to joining the EC. But a joint declara-\ntion excluded accords or aid pledges and\nEC RESHAPES TECHNOLOGY POLICY\nmade only a loose commitment to liberal-\nThe European Community Commission\nized trade, an issue that is souring ties\nbetween the East and the West.\nnext Wednesday will consider a revised\nplan for science and technology programs\nfor the five years through 1998. Members\nFOREIGN INVESTMENT IN TAIWAN\nrejected a first draft last year as too\nexpensive. The new proposal, which critics\nIn the first quarter, foreign investment\nbranded as unwieldy and politically\napproved in Taiwan sank 14% to $183\nslanted, would increase research grants\nmillion from a year earlier. The govern-\nand subsidies to 12 billion European cur-\nment attributed the drop mainly to shriv-\nrency units ($14.78 billion) from the cur-\neled investment from Japan, which\nrent five-year program's 6.6 billion ECUs.\nplunged 65% to $38.9 million. The quarterly\nCompeting for funds are industrial re-\nshrinkage reversed a trend in this year's\nsearch projects in high-performance com-\nfirst two months, when foreign investment\nadvanced 25% to $164 million. The March\nputing, intergovernmental computer net-\nworks and software engineering.\ntotal was just $19.3 million. For the quar-\nter, Europe displaced Japan to become the\nbiggest investor, tripling to $67.9 million.\nCHINA DISCONTINUES FARM IOUs\nU.S. investments rose 25% to $32.7 million.\nChina will pay for crops with cash and\nThe electronics and electric-appliance in-\nstop issuing IOUs. The move underlines\ndustry attracted the most investment from\nthe government's concern about unrest\nabroad, $94.1 million, or 51% of the total.\namong financially squeezed peasants and\ntheir importance to the economy. An urban\nLEAK CITED IN RUSSIAN BLAST\nand coastal economic boom has diverted\nmoney from China's vast rural areas,\nIn last week's explosion at a Russian\nhurting the 800 million farmers who con-\nnuclear plant, tiny amounts of pluto-\ntract to sell part of their harvests to the\nnium leaked into the Siberian area.\ngovernment. Last year. local governments\nBut the republic's nuclear agency said\nissued IOUs to many farmers, because\nthe contamination didn't pose health risks\nsome money for crop purchases went in-\nor require new safety measures.\nstead to development zones, industrial\nThe International Atomic Energy\nprojects and real estate.\nAgency in Vienna also said post-blast\nplutonium levels didn't appear dangerous\nbut radioactive hot spots may exist in the\ncontaminated area of 46 square miles\naround the Tomsk-7 military reprocessing\nplant about 1,800 miles east of Moscow.\nMeanwhile, President Boris Yeltsin's\nenvironmental adviser, Alexei Yablokov,\nwarned that more Russian nuclear acci-\nTHE WALL STREET JOURNAL THURSDAY. APRIL 15, 1993\ndents are possible, saying the system\nis dangerously out of control.\nPOSTSCRIPTS\nSyrian Prime Minister Mahmoud al-\nZoubi, saying Arab nations face stiffening\nglobal competition. urged them to seek\neconomic and political unity, emulating\nthe European Community\nBeer con-\nsumption in Japan in 1992 increased for the\neighth consecutive year, and accounted for\n70% of total alcoholic-beverage consump-\ntion of 1.56 billion gallons, up 2.7% from\n1991. Overall consumption rose for the\nseventh year in a row, while whisky con-\nsumption fell for the fourth straight year.\nCompiled by Richard L. Holman\n53\nFOREIGN EXCHANGE\nDollar Moves Higher as Dealers Suggest\nDespite a recent string of economic\nyen's steady gains. Rumors of intervention\ndata suggesting the pace of the recovery is\nby the Bank of Japan in recent days have\nslackening, \"there is long-term bullish-\nkept the market from pushing the yen still\nSelling Lately May Have Been Overdone\nness about the U.S.,\" Mr. Dennis said.\nhigher, participants said.\nBy contrast, \"German data have been\n\"People have concluded the Bank of\nhorrendous\" recently, said Lynn Tierney,\nJapan might want to make a stand at 112.50\nBy RICHARD SCHUMACHER\n\"We've come down quite a bit recently,\na vice president at Shawmut Bank of\nyen,\" said Mr. Dennis of James Capel.\nSpecial to THE WALL STREET JOURNAL\nand there's a sense the dollar might have\nBoston N.A.\nMeanwhile, sterling rose against the\nNEW YORK-The dollar climbed stead-\ngotten oversold,\" said Lee Kassler, a se-\nThe latest reminder of Germany's\nmark on news of a stronger-than-expected\nily yesterday, with dealers saying that\nnior trader at National Westminster USA.\neconomic troubles came yesterday when\nincrease in British industrial production in\ntechnical indicators suggested the cur-\nDealers said the dollar's upswing yes-\nthe Federal Statistics Office reported that\nFebruary. Output rose a seasonally ad-\nrency's recent declines may have been\nterday was most pronounced against Euro-\nwestern German retail sales fell 8% in\njusted 1.6% from January, compared with\noverdone.\npean currenices, as players took profits on\nFebruary, more than expected.\nmarket expectations of a 0.7% rise.\nLate in New York, the dollar was quoted\nthe dollar's sharp decline Tuesday follow-\nTraders said the dollar's rise against\nThe data added to \"the substantial\nat 1.5935 marks, up from 1.5820 marks late\ning a surprising 1% drop in U.S. retail\nTuesday in New York. The U.S. currency\nthe yen yesterday was prompted mostly by\nevidence that we're getting growth in the\nsales during March.\nuncertainty over the outcome of a meet-\nU.K. economy,\" Mr. Dennis said.\nalso was changing hands at 113.88 yen, up\nfrom 113.40 yen. Sterling was trading at\nAdditionally, some players now believe\ning of Group of Seven finance and foreign\nMs. Tierney said that data also in-\n$1.5520, down from $1.5580.\nthe dollar is approaching \"good, long-term\nministers in Tokyo.\ncrease the likelihood that British interest\nAbout midday Thursday in Tokyo, the\nbuying levels\" against the mark, accord-\nThey said perceptions that the Group of\nwill hold steady in the near term, which\ndollar was trading at 1.5958 marks and at\ning to Geoffrey Dennis, a strategist at\nSeven has wanted the yen to appreciate as\nshe said is bullish for sterling.\n113.84 yen.\nJames Capel & Co.\none way to restrain Japan's bulging trade\nMr. Dennis and Ms. Tierney said they\nsurpluses have propelled the yen's recent\nexpect that growing confidence about the\nadvance. The Group of Seven is comprised\nU.K. recovery will continue to bolster\nof the U.S., Britain, Japan, Germany.\nsterling against the mark in the next\nFrance, Italy and Canada.\nseveral days. But both also said that 2.50\nBut now, the market is \"leery\" about\nmarks likely will be a significant technical\nwhat group ministers might say about the\nresistance point for the pound.\nyen, said Ms. Tierney, and this provided\nan excuse to take profits. \"No one knows\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\nLondon Metal Exchange Prices\nwhat they will say,\" Ms. Tierney added.\nQuotations In pounds sterling per metric ton at the close\nIn the past, official comments have had\nof second ring trading In the afternoon.\nWednesday. April 14, 1993.\nsignificant impact on the yen. Players\nBld\nChg.\nAsked\nChg.\nhave used such comments to try to deter-\nAluminum Spot (z)\n1124.50\n+\n3.50\n1125.50\n3.50\nmonths\n1147.00\n+\n4.00\n1148.00\n4.50\nmine government preferences on ex-\nTin- (z)\n5610.00\n5.00\n5615.00\nmonths\n5670.00\n5675.00\nchange-rate levels. On Feb. 19, Treasury\nCopper Cath HI Spot\n1277.00\n28.00\n1278.00 28.00\nSecretary Lloyd Bentsen said he would like\n3 months\n1302.00\n27.00\n1302.50\n27.00\nLead Spot\n273.50\n1.50\n274.50\n1.50\nto see a stronger yen, and the Japanese\nmonths\n284.00\n.50\n285.00\ncurrency surged.\nNickel Spot (z)\n5975.00\n5980.00 5.00\nmonths\n6045.00\n6050.00\nMoreover, players said Japanese offi-\nZinc Sp Hi Spot (z)\n1024.50\n12.50\n1025.50\n12.50\n3 months\n1043.50\n12.00\n1044.00\n12.00\ncials seem increasingly concerned with the\n2 Prices quoted in U.S. dollars.\nVehicle Sales Rose\n%\nEarly This Month,\nSome Data Indicate\nBy OSCAR SURIS\nStaff Reporter of THE WALL STREET JOURNAL\nDETROIT - Strong demand for trucks\nin early April appeared to sustain the sales\nrebound for domestically built vehicles\nthat began late last month, industry ana-\nlysts said.\nFord Motor Co. and Chrysler Corp.,\nwhich together represent about 40% of the\nvehicle market, didn't report early April\nsales yesterday. However, based on sales\nreported by General Motors Corp. and\nseveral Japanese auto makers, analysts\nestimated the industry hit a seasonally\nadjusted annual sales rate of about 6.5\nmillion cars and 4.9 million trucks in the\nfirst 10 days of April. That would put total\ndomestic vehicles sales at 11.4 million\nvehicles, well ahead of the 10.9 million rate\nfor the previous 30 days.\n\"The consumer balance sheet has dra-\nmatically improved. with debt levels down\nsubstantially. And that provides a launch-\ning pad for increased spending,\" said\nThomas Glavin, an auto industry analyst\nwith C.J. Lawrence Inc.\nDemand has continued to be weak for\npassenger cars, however. \"They are\nclearly being affected by the sluggish\neconomy, while light trucks look like we\nare back in the 1980s,\" said Christopher\nCedergren, an auto industry analyst for\nAutoPacific Group Inc.\nGM reported its sales of domestically\nproduced cars fell 0.8% while domestic\ntruck sales surged 25.3%. The auto maker\nsold 44,279 trucks in early April, up from\n35,351 trucks a year earlier.\nLikewise, Toyota Motor Corp.'s truck\nsales jumped 30% in early April. as the\nJapanese auto maker sold 6,029 trucks, up\nfrom 4,630 trucks a year earlier. Unlike\nGM. Toyota's car sales also were robust,\nincreasing 39% in early April, a gain that\nanalysts attributed to a recovering Califor-\nnia economy, where the Japanese account\nfor more than half the automobile market.\nAnother Japanese manufacturer, Nissan\nMotor Co. said its car sales increased 22%,\nwhile its truck sales jumped 137% for the\nperiod.\nHonda Motor Co., which has been los-\ning market share in recent months. re-\nported sales of its domestically produced\ncars fell 6.9% in early April. Mazda Motor\nCorp. said its sales of domestically made\ncars increased 24%, while its truck sales\nfell 3%. Mitsubishi Motors Corp. reported a\n34% drop in domestic car sales for early\nApril. Sales of trucks made in the U.S. by\nIsuzu Motors Ltd. increased 77%.\nFord plans to release its 10-day sales\nfigures today. Chrysler. which reports only\nmonth-end sales figures, had a 32.4% in-\ncrease in car sales and a 29% increase in\ntruck sales in early April, according to an\nestimate by Ward's Automotive Reports, a\ntrade publication.\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\n55\nManufacturers'\nment index was 24. The index dropped a\nturing are just beginning a period of\nsults suggest that contractors may not be\npoint in February, and recovered the\nexpansion.\"\nable to continue to pass along the in-\npoint in March.\nReflecting increased confidence in a\ncreased costs of lumber and wood products\nOptimism Is Up,\nIn its monthly survey of 1,000 manufac-\ngradual economic recovery, construction\nto their customers,\" Mr. Handler said.\nturers nationwide, D&B said more compa-\ncompanies showed the greatest confi-\nThe indexes represent the percentage\nnies expect to add employees during the\ndence, D&B reported in a separate\nof respondents who see increases, minus\nSurvey Indicates\ncoming three months than in February's\nmonthly survey of 200 construction con-\nthe percentage indicating decreases, in\nsurvey. Douglas Handler, D&B's manager\ncerns. More firms said they expect orders\nvarious segments of economic activity.\nof econometric analysis, said that manu-\nto increase than in the February survey. In\nfacturers' expectations to increase capac-\nMarch, the new-orders index for the com-\nBy PATRICK M. REILLY\nStaff Reporter of THE WALL STREET JOURNAL\nity during the coming three months were\ning three months rose four points to 51\nApache Discovers Natural Gas\nfrom 47 in February, but remained six\nHOUSTON - Apache Corp. said it dis-\nNEW YORK - The nation's manufac-\nunchanged. In February, D&B's index of\nmanufacturers' expectations to increase\npoints below March 1992's level of 57.\ncovered natural gas in a wildcat well\nturers showed improved optimism in\ncapacity stood at 37, the highest level since\n\"Even in the face of ongoing economic\ndrilled offshore western Australia. The\nMarch after a February slip, while con-\nstress in the West and a particularly rough\nwell flowed about 33.8 million cubic feet of\nstruction industry executives' optimism\nMarch 1991.\nwinter, construction executives remain up-\ngas and 1,714 barrels of condensate a\nrose for the fourth straight month, Dun &\n\"It is interesting that the more cyclical\nbeat,\" Mr. Handler said.\nday.\nBradstreet Corp. said.\ndurable-goods industries, which experi-\nBut in the construction survey, the\nApache, which owns a 20% interest in\nManufacturers' optimism returned to\nenced a longer period of expansion, are\nprice index for the coming three months\nthe well, said it intends to drill delineation\nthe record high levels of January, Dun &\nplanning to beef up payroll,\" Mr. Handler\nfell to 20, five points below February and\nwells to determine the extent and size of\nBradstreet said, when the Industrial senti-\nsaid. \"The nondurable areas of manufac-\nfour points below March 1992. \"The re-\nthe well later this year.\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\nCommunists Find New Life in Lithuania\nOld Bosses Return, Pushing Capitalism and Ties to Russia\nBy BARRY NEWMAN\nThe 25 co-owners call it Ateitis, \"future\" in\n0\n50\nStaff Reporter of THE WALL STREET JOURNAL\nLithuanian. The name makes Ona Pukals-\nVILNIUS. Lithuania - A cold snap last\nMILES\nkiene laugh. In an overcoat and muffler,\nOctober accompanied the first elections to\nLATVIA\nRUSSIA\nshe sits at her office desk doing the\nParliament since this nation freed itself\nBaltic\naccounts. \"They destroyed agriculture.\"\nfrom Soviet rule. It turned cold again in\nSea\nshe says, clicking her abacus.\nFebruary, just as Lithuanians, for the first\nLITHUANIA\nSajudis divided Lithuania's 1,200 collec-\ntime, were voting for a president.\ntives into 4,450 companies, letting mem-\nThe country had no heat. All its oil\nRUSSIA\nVilnius\nBELARUS\nbers feud over buildings, supplies, land\ncame from Russia, and Russia had cut it\nand labor. This farm hived off mills and\noff without a drop. The absence of central\nPOLAND\nmachine shops, all fast going bankrupt.\nheating seemed to nurture nostalgia for\nAnd the livestock? \"Don't go see them.\"\nthe central plan.\nsays Ms. Pukalskiene. \"It's a horror.\"\nLithuanians cracked open the Soviet\nThe sties are empty, the 1,500 pigs\nUnion in 1990. Just 13 months before. the\nslaughtered. In the barn. a half-dozen head\nworld had at last endorsed their independ-\nof cattle stand in muck, hides drooping on\nence. But when elections finally came,\nbone. They are starving.\nthese same people voted in the old politi-\nSajudis knew that Russian fuel heated\ncians, rechristened the Democratic Labor\nLithuanian hothouses. that Russian fodder\nParty. As Lithuania's first president they\nfed Lithuanian calves. What it didn't want\nchose Algirdis Brazauskas. formerly local-\nto know was that Russia's resources could\nbranch chairman of the Communist Party\nstill be milked. With links to the Russian\nof the Soviet Union.\nindustrial bureaucracy. private Lithua-\nVytautas Landsbergis, the moody mu-\nnian traders are spiriting tons of material\nsic teacher who led Sajudis, Lithuania's\nwill offer variations on another reason:\nthrough the country and onto Western\nliberation movement. didn't even run.\nYou can't trust him.\ncommodities markets. Lithuania is drip-\nAt first, Lithuania's vote looked woeful.\nPiano against the wall, heater under\nping with dollars. The government doesn't\nOn second glance, it looks hopeful. Yes,\nthe desk. Mr. Landsbergis broods in his\nget a red cent.\npeople felt worn out by hard times, but they\nparliamentary office. \"Many features of\n\"If an enterprise sells 100 tons of cop-\ndidn't rally to revive the order they had\nour Soviet past are coming back to life,' he\nper. Edward Petraitis says, \"you can be\njust torn down. As much as it startled those\nsays. \"I mean a tendency to suppress\nsure another 100 tons are sold under the\nwary of resurgent communism, the elec-\npeople who think differently. to support\ntable. What's sold under the table is what I\ntion here wasn't what it seemed - an\npower by fear. The old custom of dictating\nget.\" Mr. Petraitis, born in Australia and\nalarm that Russia's ravaged voters. given\nis very easily renewed.\"\neducated in England. now profits from his\na similar chance April 25, will return\nShortcomings of Sajudis\nLithuanian roots by extracting metals,\nreactionaries to power. Lithuania's ex-\ncommunists are anything but.\nThat will be hard to prove - unless the\nchemicals and timber from Russia. He\nright wins in Moscow and Russia tries to\nmaintains that his business is legitimate.\nSaying 'No' to Nationalism\nretake the Baltics. If Lithuania succumbs\n\"Russians think they don't understand\nSince coming back to their chilly of-\nto a new cataclysm, though, Sajudis would\nthe Western mentality,\" he says. \"They\nfices, they haven't set out to subvert\nhave to bear part of the blame.\nrely on the Baltics to be their bridge to the\ndemocracy or dump capitalism. Rather.\nWhile Labor rebuilt its organization,\nworld. We've got this relationship, so we\nthey have disowned the least-likable prod-\nthe independence coalition fell apart in\ncapitalizing on it.\"\nuct of communism's collapse: overdone\npetty quarrels and concentrated on smash-\nSajudis might have done the same, Mr.\nnationalism.\ning the clockwork of the Soviet state.\nPetraitis thinks. He once suggested that\n\"Leaders in Yugoslavia and other\n\"They thought all they had to do was break\nthe state wire company could make a\nplaces use ethnic craziness for political\nit and replace it,\" says Romualdas Ozolas,\nfortune by getting in on the copper trade.\npurposes,\" says Povilas Gylys, the new\na centrist deputy.\n\"I saw some ministers.\" he says. \"They\nforeign minister. \"Some are former com-\nEven accomplishments tripped up Sa-\nwere just sleepy.\" But when Labor's econ-\nmunists - but of a different kind. They\njudis. It enacted a new constitution; but\nomy minister, Julius Veselka, hears the\nexploit national feelings, and their nations\nwithout such a framework, voters might\nproposition from a visitor, he says, \"Yes.\nsuffer.'\nhave deemed a government of ex-commu-\nIt's a good idea.\"\n\"Sajudis didn't see that nationalism\nnists too big a risk. Sajudis also gained\nFor a party on the left, Labor's eco-\nhas no future.\" says Justinas Karosas,\nLithuania's greatest goal: a Russian\nnomic posture faces squarely to the right.\nthe Labor Party's majority leader. \"It\npledge to withdraw its army of occupation.\n\"A neo-communist redistribution of as-\nthought we could cross out 50 years of\nBut by removing a threat that still besets\nsets,' is Mr. Veselka's label for the Sajudis\nhistory and build democracy from nothing.\nthe other Baltic states, Sajudis lost its\nindustrial privatization plan, on hold pend-\nWe can't. In Lithuania, the time for ro-\nstrongest credential for staying in power.\ning revision. Farms will re-consolidate, if\nmance is over.\"\nIts weakest credential was economic\npossible, into 150-acre spreads. Prices will\nThough these ex-communists quit the\nmanagement. Output and wages dropped\nfloat, and the budget will balance. \"The\nSoviet party in 1989, they didn't believe a\nby half here in 1992. Lithuania once spun\npeople are smart enough.\" he says, \"to tell\nyear later that the Baltic nation of 3.7\nRussian copper into wire and made motors\nthe difference between sweet promises and\nmillion could secede from the Soviet Union.\nfor Russian refrigerators; now it can't\nbitter realities.\"\nThey accept that for materials and mar-\nafford the copper and Russia can't afford\nThe International Monetary Fund and\nkets Lithuania must look to its old oppres-\nthe motors. The same holds for every raw\nWestern diplomats here all buy it. Mr.\nsor.\nmaterial and manufactured product. The\nLandsbergis doesn't. On the day of his\nPresident Brazauskas calls it \"peaceful\none thing Lithuania imported from Russia\ncountry's first presidential inaugural. he\ncoexistence.\" \"Why should we be narrow-\nlast year was inflation. It hit 1,700%.\nsits in his office as drumrolls rise from the\nminded?\" he says. \"For 50 years we were\nSajudis can't take all the responsibility.\ncourtyard below. \"The Russians want to\npart of the Soviet Union. It's impossible to\nBut it is partly at fault - with scorn for\nthrow upon us special ties, unnecessary\ncut these ties. We choose nonconfronta-\ndeals with Russians and zeal for undoing\ntreaties,\" he says. \"We are treated as a\ntion.\"\ntheir institutions.\npossible area of military activity, a zone of\nThe less spiteful Russia's freed repub-\nLook at what's left of the collective farm\nRussian interests.\"\nlics are, Lithuania's governors think, the\nin the village of Maisiagala. A cart lies\nTrumpets sound. Mr. Landsbergis ex-\nless ammunition Russia's own nationalists\noverturned near a mound of rusting ma-\ncuses himself to stand at the window. A\nwill have in their war with Boris Yeltsin.\nchinery. Fuel tanks stand empty. Beneath\nband strikes up the new national anthem,\nLithuanians who back Mr. Bra-\nripped plastic sheeting in a cold hothouse,\nand the crowd sings:\nzauskas - and 60% did - explain their\nmen weld together crude stoves. They have\n\"Lithuania, our\nchoice with variations on one reason: He\nnothing to burn but wood.\nhomeland, land of worthy heroes, may\ncan manipulate the sinking Soviet system.\nThe farm has fractured into 15 compa-\nyour sons derive their vigor from your vast\nAnyone who didn't back Mr. Brazauskas\nnies. This one wants to grow vegetables.\nexperience.\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\n57\nYeltsin Says He'll Resign Only if Most\nVote Against Him and Back Congress\nBy ELISABETH RUBINFIEN\nMr. Yeltsin has been fighting back on a\nStaff Reporter of THE WALL STREET JOURNAL\nstumping tour around the country, armed\nMOSCOW Facing a crucial confidence\nwith a slew of campaign promises. He\nvote in 10 days. Russian President Boris\nreiterated some of those promises at the\nYeltsin is defining defeat very narrowly,\nnews conference. including: more-consis-\nsignaling that he intends to remain in his\ntent economic reforms: legal protection for\npost.\nindividual and private property rights: the\nMr. Yeltsin said he will resign only if\ncurtailing of subsidies to state industry\nmost people vote against him and simulta-\nand other ailing sectors. and social protec-\nneously give re-\ntion for the needy. He also pledged more\nsounding support\nindependence for regions within Russia.\nto the Congress by\nprompting the leaders of Russia's 21 se-\nvoting\nagainst\nmiautonomous ethnic republics yesterday\nearly parliamen-\nto agree to take part in the referendum.\ntary elections.\nMr. Yeltsin also debunked what he\nOtherwise even\ncalled the mvth of an \"avalanche-like\"\nif he loses the con-\ncollapse of industrial production. contend-\nfidence vote he\ning that productivity had stabilized in\nwill remain in of-\nrecent months. Citing inflation as the\nfice at least until\nmain problem. he said that also appears to\nnew elections.\nbe improving. The monthly inflation rate\nwhich he expects\nhas dropped to 17% in March from 25% in\nnext autumn. he\nFebruary and 27% in January. \"The tend-\nsaid.\nBoris Yeltsin\nency is clear, he said.\nThere should\nbe no vacuum of power during this period.\nhe said at a news conference. \"Until the\nelections. the president should go on work-\ning. If the president receives support dur-\ning the referendum. his actions will be\nmore resolute.'\nThe referendum scheduled for April 25\nincludes four questions that were carefully\nworded by the Congress of People's Depu-\nties in an attempt to stack the deck against\nMr. Yeltsin. They are: Do you trust in the\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\npresident? Do you support the economic\nand social policies of the president? Do you\nwant early presidential elections? Do you\nwant early parliamentary elections?\nThe congress also required Mr. Yeltsin\nto receive support from more than 50% of\neligible voters. regardless of turnout. to\nclaim legal victory - a near impossibility.\nMr. Yeltsin has challenged this in the\nconstitutional court and his aides are con-\nfident they will get a favorable ruling, at\nleast in regard to the first two questions.\nComplicated Referendum\nThe referendum risks drawing a low\nturnout in part because it seems so compli-\ncated. Trying to simplify the process. and\nincrease the vote favorable to him. Mr.\nYeltsin has urged people to vote \"yes\"\nto all four questions. His supporters are\nadvocating a \"yes\" vote to three questions\nand a \"no\" to early presidential elections.\nPravda. the former Communist Party\ndaily, urges \"yes\" to the first two and\n\"no\" to both early elections.\n\"Outwardly [the political crisis) is\nmanifest in the central authorities of the\ncountry having quarreled and failing\nto come to terms.\" Mr. Yeltsin told re-\nporters yesterday. \"But in reality every-\nthing is far more deep-seated and serious.\nWhat it all amounts to in fact is that two\nirreconcilable positions on the past, pres-\nent and future of Russia have come into\nconflict. into opposition.\nAt the root of the conflict, Mr. Yeltsin\nsaid. is the resistance of holdover Soviet\nbureaucrats to distributing property to the\npeople. The opponents of reform. he said,\noffer recipes for development that lead\nto one conclusion: \"Russia is dead and\ndone with, it can be written off as far as\nworld development. world politics and\neconomics and the world balance of power\nare concerned.\"\n'Dictatorial Regime'\nMr. Yeltsin's opponents hurl similar\naccusations back at him. On Tuesday,\nCongress Chairman Ruslan Khasbulatov\naccused the government of tapping phones\nand using other repressive methods. \"The\npolitical regime has been transformed\nopenly into a dictatorial regime.\" Mr.\nKhasbulatov told a public meeting.\nMr. Yeltsin's vice president. Alexander\nRutskoi. has aligned against him. Mr.\nRutskoi. an Afghanistan war hero with\nopen presidential ambitions, has publicly\ncriticized Mr. Yeltsin's economic reforms\nand some of his advisers. Mr. Yeltsin\nhasn't demanded the vice president's res-\nignation. but implied that if he wins the\nreferendum. Mr. Rutskoi should go.\n\"Rutskoi\nis categorically not in\nagreement with reform.' Mr. Yeltsin said.\nHow can a vice president work who is not\nin agreement with the president?\"\n58\nA14\nREVIEW & OUTLOOK\nDissecting the Uninsured\nBill Clinton has 500 geniuses\nget seriously ill and therefore less\nbeavering away on Hillary's health-\nlikely to collect much from their in-\ncare task force. and one of the adver-\nsurance. Under the circumstances,\ntised reasons is the \"crisis\" of the 37\npaying a fat premium would only sub-\nmillion uninsured. But before turning\nsidize hernia operations for the old\none-eighth of the economy upside\ncodger at the next lathe.\ndown to help these souls, maybe some-\nIn effect, these workers opt to self-\nbody should try to distinguish between\ninsure, which means they reach into\nan intriguing problem and a \"crisis.\"\ntheir own pockets when they need a\nThirty-seven million sounds like a\ndoctor. As patients, they're uniquely\nlot, but that still leaves 182 million\ninterested in getting their money's\npeople swimming in the world's best\nworth. On average such people spend\nmedical care. Some 83% of Americans\n$711 a year on medical services, or less\nhave public or private insurance or\nthan half what people spend when\nboth, including the genuinely poor: 24\ncompany health insurance is paying\nmillion of them have Medicaid.\nthe freight, according to actuarial ac-\nNow, being without health insur-\ncountants Milliman & Robertson.\nance is not the same thing as being\nWhat makes this $711 figure even\nwithout health care. But it is true that\nmore impressive is that it includes the\nsome folks are outside the system.\nWho are they?\n$10 billion a year in \"uncompensated\ncare\" that hospitals are stuck provid-\nThe Census Bureau's survey asks,\ning to people without insurance. No\n'Was anyone in this household cov-\ndoubt, some of the uninsured exploit\nered by health insurance at any time\"\nin a given year? In theory, people who\nthe availability of this largess. They\nsay \"no\" should have been without\nassume that if they get really sick, help\nhealth insurance for the whole year.\nwill turn up-and generally it does,\nIn practice, the Census Bureau tacitly\nthough the fully insured get the tab.\naccepts that what these folks are re-\nNobody knows how many of the\nally saying is they don't have insur-\nlong-term uninsured are truly needy,\nance now. That is, for most people,\nhow many are just economizing or\nit's a temporary condition.\nhow many have fallback strategies.\nIt turns out that half of the unin-\nThey do indeed have a problem. but it\nsured go without coverage for less\nisn't that their afflictions will go un-\nthan five months, and 70% for less\ntreated; it's that if they contract\nthan nine months. Among the unin-\nsomething serious while they're unin-\nsured capable of or willing to work,\nsured, insurance companies will deny\nthree-quarters reacquire coverage\nthem coverage for what's called a\nwithin a year. Amazingly. this figure\n\"pre-existing condition.\" But no way\nholds for both full- and part-time\ndo 36 million people have this prob-\nworkers.\nlem. or \"crisis.\"\nWhat's going on here is that many\nNo question. our health care sys-\nof the uninsured are between jobs or\ntem is riddled with distortions.\nare just climbing out of the Medicaid\nThere's room for improvement. But at\ncorral and into the self-supporting\nleast the current structure manages\nsector. A lot may be plugging away at\nto reconcile the conflicting demands\nlow-wage or part-time jobs in indus-\nwe place on it. We want medical care\ntries like retail with high turnover.\nthat's responsive to the individual,\nEventually their employers will offer\nbut we don't want people dying for\nthem health insurance but only after\nlack of basic treatment just because\na waiting period. That's because em-\nthey're penniless.\nployers want to make sure that new\nMr. Clinton goes around quoting\nhires intend to stick around first.\nFDR and claiming that the times call\nAll of this throws into doubt a cen-\nfor \"bold, persistent experimenta-\ntral tenet of the scheme being ad-\ntion.\" But this is not the Great De-\nvanced by Hillary's project, that com-\npression and America isn't running\npanies must be compelled to insure\noff a cliff. Despite all the media\ntheir workers. \"Mandating employer\nhoopla and hand-wringing in various\nprovided health insurance is not likely\nto provide it to great numbers of the\nmedical journals, we think a very\nuninsured\" is the conclusion of\nstrong case can be made that smaller-\nKatherine Swartz and Timothy\nscale experimentation and innovation\nMcBride. who produced the above find-\nwould be more apt.\nings in a study for the Urban Institute.\nHow about medical IRAs. Medicaid\nWhat else do we actually know\nvouchers and loosening up state man-\nabout the uninsured? They tend to be\ndates that force companies to gold-\nyoung. low on the earning curve, but\nplate their health benefits? Each of\nnot necessarily poor. Nearly half\nthese would help to lure more folks un-\nhave household incomes above\nder the insurance umbrella and trim\n$20,000 and 17% earn more than\ndemand for uncompensated care.\n$40,000, according to the Employee\nPerhaps the drumbeat of stories\nBenefit Research Institute.\nabout the system's anomalies will\nWhat this suggests is that many\nhelp the Clintonites bully Congress\nyoung workers are turning down\ninto enacting whatever Hillary cooks\nhealth coverage from their employ-\nup. But a sober look at the system's\ners. They'd rather have the cash\nreal problems suggests that this ad-\nwages and funnel the money toward\nministration is really overreaching. A\nrent. car payments or a savings ac-\nspasm of activist hubris from a secre-\ncount. This isn't such a foolhardy\ntive group of liberal geniuses is not\ngamble. Young folks are less likely to\nanyone's formula for a serious cure.\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\n59\nA15\nJustice's Proper Interference in Rep. Ford's Trial\nRep. Harold Ford's acquittal Friday on\nBecause Mr. Ford likely would continue\nstrongly felt that the rule in Los Angeles\ncourt's decision to go forward with a jury\ncharges of financial corruption further\nto seek racial sympathy in Memphis, the\nshould be the rule in Memphis.\nfrom Jackson was within its discretion.\nvalidates my ruling while acting attorney\nprosecutors rationalized that by asking for\nThe Ford case is instructive not only\nThis was a contingency we anticipated\ngeneral that the government should not\na Jackson jury they were doing no more\nof the government's role in seeking a fair\nfrom the outset. It represented no change\nengage in jury shopping. Contrary to some\nthan ensuring that the government would\ntrial but also of a fundamentally conserva-\nof position for the government to join Mr.\nassertions, my decision was made inde-\nget a \"fair\" trial. But the prosecutors are\ntive view of race. The importation of a\nFord's motion to strike the Jackson jury\npendently. It was informed by a race-neu-\nnot the government; the people are. And as\nvirtually all-white jury to a mostly black\nbut then not to support his petition to block\ntral policy, consistent with the Justice\nthe people's surrogate, I questioned\ncommunity, whatever rational concerns\nthe trial.\nDepartment's historical practices.\nwhether it was fair for the Justice Depart-\nled to it, sends a powerful racial message:\nThe decisions I made in this case were\nFederal prosecutors originally sought\nment to declare an entire community inca-\nthat the black community's citizens are\nmine alone and were made without any\nto try Mr. Ford, who is black, along with\npable of rendering justice. For many\nunworthy of trust.\nattempt by purported agents of the White\nseveral white co-defendants, in Knoxville,\nreasons - historical, practical and ethi-\nSuch a notion should be particularly\nHouse, including its nominee Webster\nTenn., a mostly white city where several\nconcluded that it was not.\nunacceptable to us conservatives who de-\nHubbell, directly or indirectly to exert\nalleged collaborators had been convicted.\nAlthough issues of race marked the\nfended the nomination of Justice Clarence\ninfluence. I value my independence and\nThe prosecutors wanted the Ford trial to be\ncase from its beginning (and although Mr.\nThomas against liberal criticisms of his\nthat of the Justice Department enough that\nheld in Knoxville because they worried\nFord doubtless sought racial advantage).\nI would have resigned if I had been\nthat the congressman's popularity would\nat my order the Justice Department joined\nmake it difficult to obtain a favorable\nThe decisions were\npressured, but am compelled to note that\nMr. Ford's petition for a Memphis jury. In\nthere would have been nothing inherently\ndoing so, I was supporting the race-neutral\nmine alone and made with-\nimproper about the president himself try-\nCounterpoint\nprinciple that federal prosecutors should\ning to direct his subordinate's decision.\nexpect just verdicts from citizens of any\nout any attempt by pur-\nNor is there anything improper about\nBy Stuart Gerson\ncommunity. The Framers of the Constitu-\nported agents of the White\nan attorney general meeting with public\ntion recognized this principle, writing in\ngroups or members of Congress-such as I\nverdict from his constituents in mostly\nthe Sixth Amendment that the accused\nHouse, including its nomi-\ndid with the Congressional Black Caucus\nblack Memphis.\nshall be tried \"by an impartial jury of the\non the Ford matter - to speak about policy\nMemphis was nonetheless ruled the\nState and district wherein the crime shall\nnee Webster Hubbell.\nissues raised by a prosecution. The prose-\nproper locale for the trial, which ended\nhave been committed.\"\ncutor should be publicly accessible.\nwith a hung jury split strictly along\nThe decision to accept the juries that\nnonconformity with perceived black philo-\nWhat was unfortunate in this case is\nTHE WALL STREET JOURNAL THURSDAY, APRIL 15, 1993\nracial lines. The government wanted a re-\ninhabit the cities in which the Justice\nsophical orthodoxies, or who urge local\nthat the compressed period from when I\ntrial, but evidence of improper pressure on\nchoice in education, housing and health\nfirst learned of the issue to when I had to\npotential jurors by Mr. Ford and his sup-\nDepartment tries its cases is not only\ncare, and demand local initiative to create\nmake my decision tended to give the\nconsistent with constitutional tradition but\nporters raised the question of whether a\nalso with the department's historic prac-\na culture of responsibility in minority\nappearance of undue political influence. I\nretrial could be decided on the merits.\ntice. The 1960s civil rights trials of Klan\ncommunities to counteract crime, drug\nthus was left with the choice between\nForbidden to try the case outside of the\ndependency and illegitimacy. We cannot\nmaking what to me was the right decision\nMemphis area, the prosecutors convinced\ncriminals all took place before their towns-\nrationally expect minority communities to\nand enduring criticism and results, includ-\nthe judge then presiding at the retrial that\nmen. More recently, the government tried\naccept justice if we have no confidence in\ning the resignation of a U.S. attorney in\nthe jury should be selected from Jackson,\nJohn Gotti before a hometown jury in New\nthem to do justice.\nTennessee, or making the wrong decision\nYork City, where many feared or admired\nTenn., a largely white community near\nhim.\nNone of this, however, is to say that\nsimply to maintain a false peace. Though\nMemphis.\nthe Jackson jury did not deal with the case\nthese events were troubling, the decision\nThat judge ruled without apparent con-\nIn most cases, it is the government,\nfairly, just as I believed a Memphis jury\nwas not. I thought then as I think now: A\nsideration of such possible alternate meas-\nopposing defendants' motions to change\nshould have been made to do. We should\nMemphis jury should have been given the\nures as sequestration or use of an anony-\nvenues or avoid juries, that insists that\nnot stereotype a largely white community\nchance to do its civic duty in the Ford\nmous Memphis jury. The prosecutors exer-\nlocal passions and prejudices can be over-\neither.\ncase.\ncised most of their challenges against\ncome in fair courtroom proceedings. The\nMy decision was a matter of strong\nblacks. As a result, of the 18 regular and\nJustice Department took this position with\npolicy preference, but not of legal man-\nMr. Gerson, appointed to the Justice\nalternate members of the Jackson jury, 17\nrespect to the police officers charged in the\ndate. The Justice Department was re-\nDepartment by President Bush, was Presi-\nwere white.\nRodney King case in Los Angeles. I\nquired to conclude that the Tennessee\ndent Clinton's acting attorney general.\nSales tax back\nYesterday's missteps took the\npunch out of the administration's ef-\nfort to target at least nine Repub-\nlican senators who are part of a\nas 'possibility'\nunited GOP effort to block Mr. Clin-\nton's $16 billion stimulus plan.\nSenate Majority Leader George\nMitchell of Maine also learned yes-\nterday that two more Senate Demo-\nLatest change\ncrats, Russell Feingold and Herbert\nKohl, both of Wisconsin, plan to join\nconsidered for\nSen. Richard Shelby, Alabama\nDemocrat, in opposing the presi-\ndent's plan, CNN reported.\nhealth reform\nTAX\nEven as the White House used sev-\neral surrogates and props to attack\nFrom page Al\nRepublican critics of its one-year\nBy Paul Bedard\nAI\nspending plan, Mr. Clinton appeared\nDonna Shalala told USA Today in\nTHE WASHINGTO TIMES\nto be conceding defeat.\nyesterday's editions that the tax was\nSpeaking to mayors and business-\nThe Clinton administration yes-\nbeing considered. Alice Rivlin,\nmen at a summer jobs conference in\nterday shifted course and said it is\ndeputy director of the Office of Man-\nArlington, Mr. Clinton even scuttled\nconsidering a national sales tax. un-\nagement and Budget, made similar\nhis earlier claims that the stimulus\ndermining its stumbling effort to\ncomments to a business group.\npackage would jump-start the lum-\nconvince Republican senators to\nIn addition to admitting the sales\nbering national economy.\nback its economic package.\ntax is a contender to fund the poten-\n\"It is an attempt to engage in an\nDespite earlier promises by Pres-\ntial $150 billion health care reform\nexperiment to see whether or not,\nident Clinton to reject a national\npackage Mr. Clinton is expected to\nwith the economy recovering in\n\"value-added\" tax on virtually all\nunveil May 17, the spokesman said\nterms of corporate profit, we can\nproducts, White House spokesman\nthe White House wants the health\ngive a little goose to it,\" he said.\nGeorge Stephanopoulos said Hillary\nplan to pay for elective abortions.\nFor the second day in a row, Mr.\nRodham Clinton's task force is con-\nThe White House effort to sell its\nClinton muted his criticism of Re-\nsidering the tax to cover a massive\nstimulus program also tripped yes-\npublicans. Most of the nine targeted\nnational health care program.\nterday when the press office re-\nGOP senators said the president has\n\"This is something that is being\nleased a letter signed by Republican\nyet to call them to lobby in person,\nlooked at, but no decision has been\ngovernors that appeared to back the\nchoosing instead to rely on Vice\nmade of any kind,\" Mr. Stephan-\npresident's plan, even though it was\nPresident Al Gore and Cabinet sec-\nopoulos said.\nwritten before the administration\nretaries.\nPresented a chance later in the\nprogram was presented.\n\"We feel solid. They've come into\nday to shoot down the tax talk, Mrs.\nTucker Eskew, spokesman for Gov.\nthis too late,\" said a spokesman for\nClinton remained silent during a\nCarroll A. Campbell Jr., South Caro-\nSenate Minority Leader Bob Dole of\nphoto opportunity with reporters de-\nlina Republican and one of the sign-\nKansas. \"They just don't get it.\"\nspite questions on the issue. She\ners of the letter, said it had nothing\nMr. Dole and other Republicans\nchairs the health care reform task\nto do with the Clinton plan. He ex-\nyesterday continued their attack on\nforce.\npressed anger that the White House\nThe White House earlier flip-\nwould use the letter, which detailed\nflopped on the president's campaign\na National Governors' Association\npromise to cut taxes on the middle\njobs policy, to sell its program and\npressure Republican senators who\nthe president's plan, which they\nclass and has included an energy tax\nand new income taxes on the rich in\nare holding up consideration of the\nclaim is full of pork barrel projects,\nswells the federal deficit and creates\nits budget plan.\nWhite House plan.\n\"The White House is desperate.\nfew jobs.\nJust three weeks ago, Mr. Steph-\nThe letter has no direct correlation\nMr. Dole, speaking at a fund-\nanopoulos reiterated the president's\nwith the Clinton 'make-work' plan,\"\nraiser for one of the targeted sen-\nfirm position against the value-\nadded tax to pay for health care re-\nhe said. \"They grasp at straws, but\nators, James Jeffords of Vermont, is-\nform. \"The president's proposal will\nthis is a weak reed,\" said Mr. Eskew.\nsued a news release questioning the\ncover a four- to five-year period, and\nHe said Mr. Campbell opposes the\nemergency nature of Mr. Clinton's\nit will not be in that proposal,\" he\npresident's economic plan.\nstimulus plan. \"The only emergency\nI can see is Bill Clinton's misguided\nsaid, when pressed on reports\nplan to jack up the record federal\nvalue-added. or national\ndeficit another $19.5 billion\nlooks\nwas being considered.\nlike another false alarm from the\nIn a Feb. 19 visit to Chillicothe,\nWhite House,\" he said.\nOhio, Mr. Clinton floated the idea of\nSen. Alfonse D'Amato, New York\na national sales taxbut quickly re\"\nRepublican and one of those tar-\njected it himself. \"If we start.consid-\ngeted by the administration, also\nering it, I'll tell you,\" he promised\ncriticized the White House. \"Tomor-\nreporters at that time.\nrow is April 15th, the day middle-\nA value-added tax imposes taxes\nclass taxpayers realize how much of\nat each stage of production and\ntheir hard-earned money goes to the\nwould raise the price of a final prod-\ngovernment,\" he said.\nuct by the amount of the tax.\nIn addition to Mr. D'Amato and\nMr. Jeffords, the administration has\ntargeted William Cohen of Maine,\nExplaining the change of position,\nWilliam Roth of Delaware, Mark\nMr. Stephanopoulos said yesterday\nHatfield and Bob Packwood of Or-\nthe president reserves the right to\negon, Ted Stevens of Alaska, Arlen\nchange his mind. \"Well,\"I mean,\nSpecter of Pennsylvania and David\nthat's indisputably true,\" he said.\nDurenberger of Minnesota.\nMr. Stephanopoulos was forced to\nThe administration, meanwhile,\nconfront the issue because Health\nrolled out a letter from three Repub-\nand Human Services Secretary\nlican mayors calling for passage of\nthe stimulus plan.\nsee TAX, page A8\n\"While we believe Republican\nleadership has made a very impor-\ntant political point before the Senate\nrecess, we urge you to vote for clo-\nture on the president's plan and end\nthis debate,\" the mayors wrote yes-\nterday on letterhead from the U.S.\nConference of Mayors.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\nClinton's method\ned to fight plan\n\"Americans who have completed\ntheir taxes will be sorely aware of\nhow much they already have to 'con-\nleaders are taking\ntribute,' said Rep. Tom DeLay, a\non to President Clin-\nTexas Republican who organized the\nplan out on the road\ncampaign.\nAmericans their fu-\nHe said they will try to deflate the\nClinton terms \"contribute,\" \"sacri-\nvery of 1992 tax pay-\nfice,\" \"investment\" and \"incentive\"\nAmerican minds, 28\nto show flaws in his $16.2 billion\nmembers and\nstimulus package and a budget that\nwill conduct\nproposes a $300 billion tax increase.\nBob Michel said the GOP had only\nhall\" meetings in\nMany of the town meetings will\ntwo weeks to devise its plan.\nturday\nfeature a 12-minute video that cri-\nthe success of this\ntiques the Clinton budget and gives\nWhite House budget, said they took\nRepublicans plan\nthe Republican alternative, now be-\na page from Mr. Clinton's public re-\npossibly expand their\ning pushed in Congress by Rep. John\nlations juggernaut.\npeal through meet-\nKasich of Ohio, ranking Republican\n\"He's turned the White House into\n29 - Mr. Clinton's\non the House Budget Committee.\na television disk,\" said Rep. Dick Ar-\nHouse Minority Leader Bob\nmey, Texas Republican and House\nimbracing a process\nMichel said Republican activists\nRepublican Conference chairman.\ngoing back to voters to\nhad only two weeks to devise the\nMr. Armey said that Republicans\nperson and not through\ngrass-roots comeback, given their\nseek to convey that raising taxes\nRep. Peter Hoekstra,\nbusy schedules.\ndoes not spur the economy and that\nmublican, said at news\nSince the administration pro-\nreal spending cuts are necessary.\nvesterday. They get\nposed its federal budget on Feb. 17,\nThe Republican campaign will de-\ninformation on how, we do\nthe president and his Cabinet trav-\nfine GOP views on economic reform.\nWashington.\"\neled nationwide to promote it - urg-\nIt also will remind the public that\ntown meetings will\ning citizens to call their members of\nRepublicans devised a deficit reduc-\nC-SPAN, but nego-\nCongress to endorse the plan.\ntion and economic growth package\nthe major networks\nRepublican leaders, confronted\nunder President Bush, but it was\nfruit, the Republican\nwith Democratic taunts to \"give spe-\nkilled by the Democrats who con-\ncific\" alternatives in criticizing the\ntrolled Congress:\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n62\n63\nPAGE B6 / THURSDAY, APRIL 15, 1993 *\nThe Washington Times\nClinton picks\nDistrict resident\nTHURSDAY, APRIL 15, 1993\nas local liaison\nBy Jim Clardy and Paul Bedard\nseveral organizations and state and\nTHE WASHINGTON TIMES\nlocal governments.\nShe has worked in a variety of po-\nPresident Clinton, promising to be\nsitions for the U.S. Conference of\na better neighbor to the Washington\nMayors, the National League of\narea, yesterday named a longtime\nCities, the National Governors' As-\nassociate with broad local contacts\nsociation and the Federal Home\nas his regional czar to boost cooper-\nLoan Mortgage Corp. She was a\nation between federal and local gov-\nsenior campaign adviser to Mr. Clin-\nernments.\nton, whom she has known since the\nLoretta Avent, special assistant\nearly 1970s.\nfor intergovernmental affairs, was\n\"Too often in the past, the federal\nappointed White House liaison to the\ngovernment has not been a very\nMetropolitan Washington Council of\ngood neighbor to the rest of the\nArea officials say they hope the selection of Loretta Avent will help them.\nGovernments (COG), which coordi-\nWashington area,\" Mr. Clinton said.\nnates regional action on transpor-\nHe said he has \"full confidence\"\nD.C. Delegate Eleanor Holmes Nor-\nCrone said.\ntation, housing and development.\nin Mrs. Avent \"to make the White\nton.\nThe last administration to have a\n\"There are a lot of problems, such\nHouse a full partner in the affairs of\nLocal officials hope that Mrs.\nstrong regional czar was President\nas crime and transportation, which\nthe region where we live.\"\nAvent's access to the Oval Office will\nFord's, although others have as-\ncross boundaries. Regional coopera-\nAlthough District leaders are\nresult in the federal government\nsigned a White House staffer as a\ntion is something that has to hap-\ncounting on the Clinton administra-\npaying more attention to local con-\nliaison to local governments. In Jan-\npen,\" Mrs. Avent said.\ntion to back their drive for statehood,\ncerns.\nuary, COG's chairman wrote Mr.\nWhite House observers said Mrs.\nMrs. Avent said she will not take a\nstand on the divisive issue. Most sub-\nUnlike the Bush and Reagan ad-\nClinton and asked that he \"designate\nAvent's designation as a special li-\naison to COG raises her visibility to\nurban lawmakers oppose statehood\nministrations, which local govern-\none of your senior advisers with re-\nthat of an ambassador for the Wash-\nfor the District, fearing that the 51st\nments viewed as aloof, the Clinton\nsponsibility for Washington metro-\npolitan area affairs.\"\nington area. The only other region\nstate would impose a commuter tax\nadministration has shown a willing-\non their residents who work in the\nness to play an expanded role in the\nHilda R. Pemberton, chairman of\nwhere Mr. Clinton has assigned a li-\naison is California, whose economy\ncity.\narea, local officials said.\nCOG and the Prince George's\nCounty Council, wrote, \"The desig-\nhas been devastated by the reces-\n\"She's accessible, she under-\n\"There seems to be a very clear\nnation of such a role within the Ex-\nsion.\nstands and knows the District, and\nsense that the president wants to be\necutive Office of the President will\nThe Washington Times\nMrs. Avent, 50, has spent most of\nshe's personally connected to the\na good neighbor and use the area as\nopen a line of communication that\nher life in the District, where she\nClintons, which will be very helpful\na model of cooperation between the\nwill be of mutual benefit to your ad-\ngraduated from high school and has\nnot just to the city but the region as\nfederal and local governments,\"\nministration and the Washington\nserved as a Capitol Hill lobbyist for\nwell,\" said Donna Brazile, an aide to\nCOG Executive Director Ruth R.\nmetropolitan region.\"\nPoss'b e Clinto 1 no-show\nangers gay march leaders\nBy Joyce Price\n[Va.] that weekend,\" he replied.\ndent will issue a statement of sup-\nTHE WASHINGTON TIMES\nBut Miss Smith suggested the\nport or meet with march leaders be-\nSenate Democratic retreat is an in-\nfore leaving Washington.\nLeaders of the homosexual March\nsufficient excuse for the president's\nThe press aide indicated he be-\non Washington expressed disap-\nabsence. \"There are those who'll be\nlieves a statement and meeting are\npointment yesterday that President\nattending the retreat who'll also be\nlikely. At the same time, he flatly\nClinton plans to be out of town that\nattending the march.\" she said.\nstated Mr. Clinton will be issuing a\nweekend and put more pressure on\nThe march steering committee\nstatement for Earth Day on April 22.\nhim to attend.\ninitially had a stronger response\nIt would be a \"mistake\" for Mr.\nwhen it learned Mr. Clinton would be\nThe Human Rights Campaign\nClinton not to take part in the April\nin Jamestown the day of the event,\nFund will hold a daylong leadership\n25 march, the \"largest civil rights\nsaying it was \"very disappointed the\nconference at the Mayflower Hotel\ndemonstration in [U.S.] history,\" said\nWhite House has taken this position.\"\non the Saturday before the march.\nNadine Smith, march co-chairman.\n\"We supported Clinton in his en-\nRoberta Achtenberg, assistant HUD\n\"President Kennedy didn't speak\ndeavors to get into the White House,\nsecretary-designate, will represent\nat the 1963 [civil rights) march, and\nand he made us a lot of promises,\"\nthe administration at meeting.\nhe always considered that a big mis-\naccording to a spokesman who\nOn the other hand, Robert G.\ntake. It's a mistake we don't expect\nstressed anonymity. \"And we're very\nGrant, chairman of the 300,000-\nthis president to make,\" she said.\ndisappointed he won't be supporting\nmember Christian Voice lobby, said\n\"Unless the White House says de-\nus on one of the most historic days of\nit would be \"politically unwise\" for\nfinitively [Clinton won't attend], we\nour movement.\"\nthe president to be in the march.\nhave expectations he'll be partici-\nAbout an hour later, however, that\n'The president is already in trou-\npating,\" she added.\nspokesman telephoned to say the\nble\nand to place the official ap-\nThe 1993 National March on\nsteering committee changed its po-\nproval of the White House on a\nWashington for Lesbian, Gay and Bi-\nsition. He referred a reporter to\nmarch for sodomy would be an enor-\nsexual Equal Rights and Liberation\nMiss Smith for comments.\nmously offensive act on his part,\" Mr.\nis expected to draw as many as 1\nMiss Smith said the position\nGrant said.\nmillion people to Washington.\nshifted because of conflicting re-\nMike Russell, spokesman for Rev.\nMiss Smith said march leaders in\nports by officials and the press over\nPat Robertson's Christian Coalition,\nFebruary invited Mr. Clinton to at-\nwhat Mr. Stephanopoulos said at an\nsaid, \"We'd urge the president to fo-\ntend the event and this desire was\nafternoon briefing.\ncus on the economic turnaround\nreiterated in a meeting with White\nDue to the confusion, she said\nand issues affecting middle America\nHouse officials several weeks ago.\nmarch leaders would continue to be-\nrather than on splinter organiza-\nWhite House spokesman George\nlieve Mr. Clinton intends to partici-\ntions pushing for special rights\nStephanopoulos was asked yester-\npate unless they get a statement in\nthat do not represent families and\nday if Mr. Clinton will be taking part.\nwriting from the White House.\nmiddle America.\"\n\"I believe he's going to be at the Sen-\nMr. Stephanopoulos was not clear\nRowan Scarborough contributed\nate Democrat retreat in Jamestown\nyesterday as to whether the presi-\nto this report.\nAspin aide upbraids major\nwhose book supports gay ban\nThe Times\nBy Rowan Scarborough\nTHE WASHINGTON TIMES\nCONDUCT\nA top assistant to Defense Secre-\ntary Les Aspin delivered a face-to-\nface rebuke to an Army major who\nUNBECOMING\nhas prominently written and spoken\nout against lifting the ban on homo-\nsexuals in the military.\nRudy de Leon, Mr. Aspin's special\nassistant, last Friday chastised Maj.\nMelissa Wells-Petry in the presence\nof a three-star Air Force general for\nher public opposition, according to\nPentagon sources.\nMaj. Wells-Petry is one of the\narmed forces' most prominent pro-\nban advocates. She is the author of\n\"Exclusion: Homosexuals and the\nRight to Serve.\" which argues in fa-\nvor of the ban on medical, legal and\nRANDY SHILTS\nmilitary readiness grounds.\nShe is now on a publicity cam-\n\"Conduct Unbecoming\" (left) and \"Exclusion\" are two books about the issue.\npaign for the book. It was published\nin late March; a copy was delivered\nto each member of Congress.\nMilitary officers at the Defense\nKilpatrick said the major followed\nasserting her rights of free speech.\nDepartment, who gave an account of\nArmy guidelines in writing and pro-\n\"She got really rough treatment,\"\nthe dressing-down on condition they\nmoting the book, and went through\none department source said.\nnot be identified, contended the inci-\nthe public affairs office, as required,\nAlso at the meeting was Air Force\ndent is a case of the Clinton admin-\nbefore granting interviews.\nLt. Gen. Robert Alexander, who\nistration attempting to stamp out\nLast month, the Navy threatened\nheads the homosexual-issue task\ndissent to the president's plan to lift\na lieutenant in its public affairs de-\nforce.\nthe exclusion rule.\npartment with disciplinary action\nVernon Guidry, Mr. Aspin's\nTHURSDAY, APRIL 15, 1993\n\"They made it plain what she was\nfor publicly speaking in favor of the\nspokesman, took issue with the of\ndoing they didn't like it,\" said one\nban. Lt. David Quint subsequently\nficers' characterization of the meet-\nofficer familiar with the meeting.\nrequested, and was granted, trans-\ning. He said there was \"no sugges-\n\"He tried to shut her down.\" said\nfer to a non-public-relations job.\ntion\" from Mr. de Leon \"that she was\nanother officer. \"But he can't intimi-\nMr. de Leon, who directed the\nnot entitled to her viewpoint.\"\ndate her.\"\nstaff of the House Armed Services\nAsked if it was an attempt to in-\nBoth officers noted the Pentagon\nCommittee while Mr. Aspin chaired\ntimidate Maj. Wells-Petry, Mr.\ntook no similar action when women\nit, is the top civilian official in a new\nGuidry said, \"It's a little late. She's\nofficers lobbied the press and Con-\n46-member task force.\nauthored a book on the subject.\"\ngress about lifting the Pentagon ban\nThe Pentagon group is charged\nUnder guidelines issued earlier\non women combat pilots.\nwith finding a way to integrate\nthis year by the Army, personnel are\nThey also said the rebuke of Maj.\nhomosexuals into the military. Mr.\nfree to express views on the homo-\nWells-Petry could have a chilling ef-\nClinton wants the blueprint by July,\nsexual ban as long as they state it is\nfect on other officers who want to\nwhen he plans to sign an executive\ntheir opinion, not the Army's.\nspeak publicly.\norder lifting the ban.\nSgt. Kilpatrick, the Army spokes-\nThe Senate Armed Services Com-\nPentagon sources said Maj. Wells-\nwoman, said Maj. Wells-Petry is free\nmittee is holding hearings on the ban\nPetry arrived at Mr. de Leon's Penta-\nto promote her book as long as it is\nand plans to elicit testimony from\ngon office on Friday to provide a syn-\ndone off duty.\nenlisted personnel and officers.\nopsis of her book.\n\"She can express her own per-\nMaj. Wells-Petry yesterday de-\nThe meeting, however, soon\nsonal opinion and she just needs to\nclined to comment when asked about\nturned sour, with Mr. de Leon accus-\nmake it known these are her per-\nthe meeting with Mr. de Leon.\ning the author of working against the\nsonal opinions,\" Sgt. Kilpatrick said.\nArmy spokeswoman Sgt. D\nadministration and Maj.\nPetry\n\"She is not a spokesperson.\"\n65\nTHURSDAY, APRIL 15, 1993\nU.S. presses Vietnam on POW report\nBy Bill Gertz\nMorris, is a Russian translation of a\nVietnam Veterans Association.\nthe post identified in the document.\nTHE WASHINGTON TIMES\nsecret report by Vietnamese Army\n\"It will indeed be raised as the\nBut U.S. officials said Pentagon\nGen. Tran Van Quang to the Viet-\nfirst order of business when Gen.\ndocuments indicate Gen. Quang was\nThe Clinton administration has\nnamese Communist Party on Sept.\nVessey gets there April 18th,\" Mr.\ndeputy chief of staff of the People's\nasked Vietnam to investigate a 1972\n15, 1972.\nBoucher said.\nArmy of Vietnam from 1958 to 1974\nreport from Soviet archives that\nIt states that at that time the\nMr. Boucher said the Vietnamese\nand also was a member of the mili-\nsays Hanoi lied about the number of\nNorth Vietnamese were holding\nquestioned the authenticity of the\ntary central party committee.\nAmerican POWs it was holding, the\n1,205 American POWs but only ac-\ndocument but promised \"to fully in-\nThe DIA analysis, written by Rob-\nState Department said yesterday.\nknowledged keeping 368 captive.\nvestigate the matter.\"\nert R. Sheetz, director of the DIA's\n\"We did provide copies of the doc-\n\"The number of American POWs\nThe Vietnamese government also\nspecial office for POWs and MIAs,\nument to the Vietnamese govern-\nin the DRV [North Vietnam] has not\nstated in reply to the diplomatic note\nstated that the number of POWs\nment,\" State Department spokesman\nto this day been made public; we\nthat Hanoi did not hold U.S. prison-\n\"cannot be accurate if discussing\nRichard Boucher said. \"We conveyed\nhave kept this figure secret,\" the doc-\ners after 1973, Mr. Boucher said.\nonly U.S. POWs.\"\nto them the seriousness of the ques-\nument states.\nA Defense Intelligence Agency\ntions that were raised by the doc-\nA total of 591 American POWs\n\"DIA believes this document is re-\n(DIA) analysis of the document pro-\nument, and we asked the Vietnamese\nwere returned after the war; 457 of\nduced Monday questioned the accu-\nferring both to U.S. POWs and to al-\nto investigate as quickly as possible.\"\nwhom were repatriated from North\nlied POWs\nracy of figures of American POWs\nMr. Sheetz said, not-\nA State Department official said\nVietnam. The discrepancy would\nbut recommended that the Vietnam-\ning that the \"confusion\" was\nlater the document was passed in a\nleave some 700 American POWs in\nese supply an original transcript of\nprobably due to an inaccurate trans-\nnote to the Vietnamese mission to\nNorth Vietnamese captivity after\nlation.\nGen. Quang's report.\nthe United Nations in New York on\nthe war.\nIn Hanoi, a Foreign Ministry offi-\nMr. Sheetz said the 1,205 figure\nMonday, following news reports dis-\nMr. Boucher said retired Army\ncial said the document was a \"fabri-\n\"grossly overstates\" the number of\nclosing the existence of the Soviet\nGen. John Vessey, who will hold talks\ncation.\"\nAmericans who survived captivity\nmilitary intelligence (GRU) report.\non the POW issue in Hanoi next\nHa Huy Thong, deputy director of\nuntil late 1972. He also said a review\nThe GRU document, uncovered in\nweek, would seek to question di-\nthe Americas Department, told the\nof all unaccounted-for POWs \"leaves\nMoscow archives three months ago\nrectly Gen. Quang, a former deputy\nAssociated Press that Gen. Quang\nonly 92\" persons who may have sur-\nby Harvard researcher Stephen J.\nchief of staff who is now head of the\nheld a different position in 1972 than\nvived after the war.\nThe Washington Times\nTHURSDAY, APRIL 10, 1995\nThe Washington Times\ndown from outer space. This one's\nFormer Rep. Barber B. Conable,\nCapitol for repairs.\nNATION\nnot for you, say irate scientists and\nEXECUTED IN ARIZONA\na New York Republican, retired\nThe Capitol's architect, George\nenvironmentalists, outraged at a\nfrom Congress in 1985 and finished\nWhite, wants to remove the statue\nproposal for a space billboard by\nExecution site: Arizona State Penitentiary in Florence at 2:07 a.m. EDT.\na five-year term as president of the\nin May so it can be repaired and re-\n1996. Somebody's going to do it,\nMethod: Lethal injection.\nWorld Bank Group in 1991.\nstored. He asked for use of a Na-\nsays the engineer for the billboard\nproject, and the United States\nCrime: James Dean Clark, 35, was convicted of killing Elfrida, Ariz.\nWesley Samuel Williams Jr. is a\ntional Guard helicopter, but Deputy\nmight as well be the first.\ndude-ranch owners Charles Thumm, 65, and his wife, Mildred, 62, and two\npartner in the Washington law firm\nSecretary of Defense William\nranch hands, George Martin, Jr., 51, and Gerald McFerron, 17, on Dec. 4,\nof Convington & Burling.\nPerry said a commercial helicopter\nPage A1\n1977. After a night of drinking, Clark fatally stabbed Martin, who was\nMr. Gray, Mr. Conable and Mr.\nservice should be used instead.\nClinton considers\nsleeping, and and shot McFerron to death. Then he fatally shot the\nWilliams will begin six-\nThe 20-foot, 15,000-pound statue\nvalue-added tax\nThumms and stole their car, which he loaded with their personal property\nmonth terms next month.\nof a woman holding a sword\nSinatra mentioned\nbefore driving to El Paso, Texas. He was arrested four days later in El Paso.\nNew members of the 17-member\nand shield was placed on top of the\nThe White House shifted gears\nby mobsters in tape\nAppeals: U.S. Supreme Court rejected two late-hour appeals, in 7-2\nboard, the Smithsonian's governing\n300-foot high dome in 1863 with\nyesterday on a national sales tax, or\nvotes.\nbody, must be nominated by the\nropes and pulleys and has\nvalue-added tax. The switch is\nNEW YORK - Three reputed\nThe numbers: He was the third person in Arizona, and the 198th\nboard and approved by Congress.\nnever been taken down. It has been\nlikely to hinder the administration's\nmobsters were on trial, but Frank\nnationally, to be executed since the high court in 1976 allowed resumption\nPresident Clinton signed congres-\nstruck several times by lightning\nchances of winning the support of\nSinatra momen-\nof the death penalty.\nsional resolutions approving the\nand is corroded in spots.\nRepublican senators for President\ntarily stole the\nnominations Monday.\nClinton's economic package. Hil-\nshow. His name\nThe Washington Times\nlary Rodham Clinton's task force is\ncame up in a se-\nButtafuoco indicted\nconsidering the tax as a possible\ncretly taped\ncare of elderly people during their\nwho arrived in December and\nScientists find ancient,\nway of paying for a national health\nconversation\nlast year of life, a study found.\nwhose ceremonial acceptance was\nsignificant bird fossils\non 'Lolita' rape charge\ncare program, said White House\nthat the govern-\nThis figure has changed little\nleft by President Bush to the ad-\nMINEOLA, N.Y. Joey Butta-\nspokesman George Stephanopoulos.\nment placed in\nsince the late 1970s. Contrary to\nministration with which he would\nNEW YORK - The discovery of\nfuoco was indicted yesterday on\nPage A1\nevidence.\nsome speculation, the cost of dying\nserve.\ntwo ancient bird fossils has\ncharges of statutory rape by a\nIn the tape,\ndoes not appear to be driving up\nThe others were ambassadors\nstrengthened evidence that birds\ngrand jury that alleged Amy Fisher\nSan Francisco top cop\nSinatra\nLorenzo Man-\nthe nation's medical bills faster\nfrom Mali, Lesotho, Kuwait,\nevolved from dinosaurs and raises\nwas 16 when their sexual involve-\nnino asks\nthan other kinds of care.\nMexico, Jordan, Sweden, Latvia,\nnew possibilities about the evolu-\nment began, court sources said.\nlinked to spy ring\nGiuseppe \"Joe\" Gambino if he\nThe review was conducted by\nAustria, Azerbaijan, Israel and\ntion of flight, a scientist for the\nMr. Buttafuoco, 36, will surren-\nwould \"talk to Frank Sinatra\nJames D. Lubitz and Gerald F.\nTom Gerard, a San Francisco po-\nQatar.\nAmerican Museum of Natural His-\nder to police in Mineola this morn-\n[about] getting a few jobs for Al\nlice intelligence officer who earned\nRiley of the Health Care Financing\nThe Washington Times reported\ntory said yesterday.\ning to be fingerprinted and booked\nMartino in Las Vegas.\"\nAdministration in Baltimore. It was\nthe nickname \"the Weatherman\"\nlast week that the diplomatic com-\nA report on the discovery is to\nbefore he is arraigned at the Nas-\n\"Sinatra can't stand Al Martino,\nfor his forecasts of gang violence,\npublished in today's New England\nmunity had been grumbling\nappear in the British scientific\nsau County Courthouse, the\nJoe,\" he says. Mr. Gambino re-\nJournal of Medicine.\nabout the delay, which then in-\njournal Nature today.\nis off the force and in the Philip-\nsources said.\nsponds: \"Yeah, I know.\"\nThe study found that medical\nvolved 20 \"ambassadors-appointed,\"\nA joint American-Mongolian\npines after being implicated in\nMr. Buttafuoco, an auto me-\nMr. Martino appeared in the\ncosts in the last year of life rose\nas the diplomats are called until\nteam of scientists found the new\na ring that spied for the Anti-\nchanic, has repeatedly denied hav-\nmovie \"The Godfather\" as singer\nDefamation League of B'nai B'rith\nfrom an average of $3,488 in 1976\ncredentials are presented to the\ntype of dinosaur, named Monony-\ning an affair with the teen-ager and\nJohnny Fontane, a character many\nto $13,316 in 1988.\nhead of state. Mr. Clinton had ac-\nchus, in the Gobi Desert where the\nand South Africa on people and\nclaims he only shared a pizza with\nbelieve was meant to suggest Mr.\nresearchers are conducting a four-\ngroups considered anti-Jewish. A\ncepted no credentials during his\nher.\nSinatra.\nfirst 12 weeks in office.\nyear expedition.\ncity investigation has led to a law-\nFisher, now 18, claims to have\nMr. Mannino, Mr. Gambino and\nClinton receives\nsuit by the spies' subjects.\nhad a long sexual involvement with\nhis brother, Giovanni, are being\nPage A1\ntried on charges that they engaged\nenvoys' credentials\nSmithsonian names\nPentagon says it\nhim. She shot Mr. Buttafuoco's\nwife, Mary Jo, in the face May 19,\nin racketeering, murder and drug\nPresident Clinton last night re-\ntrafficking while working for the\nceived credentials from 12 of the\n3 regents to board\nwon't remove statue\nleaving her with a partial paralysis\nEnvironmentalists decry\nUniversity of Chicago President\nThe Defense Department yester-\nof her face and hearing loss. She is\nGambino crime family.\n20 new and not-so-new ambassa-\nproposed space ads\ndors who have been waiting for\nHanna Holburn Gray will join a\nday turned down a congressional\nserving five to 15 years for the\nStudy finds costs\nmonths to formally begin their dip-\nformer congressman and a promi-\nrequest for a military helicopter to\nshooting at an upstate New York\nImagine gazing one clear night\nlomatic service here.\nlift the 130-year old Statue of Free-\nprison.\nat the stars and planets, when the\nof dying little changed\nnent Washington lawyer as new\nThe first to be received at the\ndom from the dome of the U.S.\nmembers of the Smithsonian Insti-\nFrom wire dispatches and staff reports\nheavenly vista is interrupted by a\nBOSTON - Nearly 29 percent of\ntraditional closed ceremony was\ntution's Board of Regents, the\nmile-long beer billboard beamed\nall Medicare funds are spent taking\nRicardo Luna Mendoza of Peru,\nSmithsonian said yesterday.\nLaid an egg\ncontinued the shareholder, \"and\nINSIDE THE\nthis is a relevant question about\n\"Dear President Clinton and\nhow you get the news - and why,\nFamily,\" said the letter dated April\nBELTWAY\nby the way, did the Times Washing-\n12, sent to the White House (with a\nton bureau get scooped by The\ncopy to us) by six children from\nWashington Post with regard to\nnearby Silver Spring.\nSenator Packwood?\"\n\"Today we went to the Easter\nJohn McCaslin\n\"Well,\" Mr. Sulzberger offered\nThe Washington Times\nEgg Roll. We got there around 9:50\nafter much thought, \"we scoop The\na.m. and got into a very long line.\nWashington Post more than they\nAfter we got\nonto the White\nin on the meeting, which included\nscoop us.\"\nHouse lawn it was after 2 p.m.\nthis incredible exchange between a\nand then found out you had run out\nshareholder and Mr. Sulzberger, a\nof eggs.\nbalding man in his mid-60s with an\nWrongway DeSarno\n\"The Turnhams cousin (Miranda\nIvy League voice and the capacity\nImagine filling the shoes of\nTodd) came all the way from Ten-\nto charm the fuzz off a peach - not\nJames V. DeSarno, FBI special\nnessee for Easter and your Easter\nto mention soothe enraged share-\nagent in charge of the criminal di-\nEgg Roll. She didn't get an egg. We\nholders.\nvision at the Washington field of-\nare really angry.\n\"John Crewdson, who used to\nfice. He and his G-men handle\n\"Sincerely\nwork for the New York Times,\" be-\neverything from murders to cap-\n\"P.S. We think we should get an\ngan one shareholder, \"told me how\nturing armed fugitives. In this\negg or an apology. Our parents\namazing it was that his old paper\ncrime-filled metropolis of ours,\nvoted for you and we are disap-\nwas now permitting Jeffrey\nyou'd soon need a vacation, right,\npointed!\"\nSchmalz, who has AIDS, to cover\nor perhaps an out-of-town junket?\nthis story for the paper. Crewdson\nOn March 5, Agent DeSarno ar-\nrecalled the old Abe Rosenthal\nrived early at National Airport,\nNo queer nation\nquote: 'I don't care if my reporters\nbound for a vacation in Florida. He\ncopulate elephants. But if they do,\nwent to the departure gate, took a\nWe reported yesterday how ten-\nthey can't cover the circus.'\nseat, relaxed and waited. A plane\nnis great Martina Navratilova\n\"I recall that Laura Foreman of\nsoon pulled up and the FBI agent\ncharged that \"every family has gay\nyour Washington bureau was fired\nproceeded to board. Comfortably\npersons in it,\" citing as examples\nwhen it was discovered that while\nseated and buckled in, it wasn't un-\nfamilies of Sens. Sam Nunn, Jesse\nshe was a reporter for the Philadel-\ntil the last second that he learned\nHelms and Robert Dole, and the\nMartina Navratilova finds the Rev.\nphia Inquirer she had covered the\nhe'd gotten on the wrong plane.\nRevs. Pat Robertson and Jerry Fal-\nPennsylvania State Legislature\nLuckily, airline officials got him\nwell.\nJerry Falwell no love-love pushover.\nfrom the vantage point of the bed\nonto the right plane before the\nThe last named, for one, is not\nof a virile state senator from South\nwrong plane departed.\namused. We're still waiting to hear\na lesbian tennis player,\" said Mr.\nPhiladelphia. There was also Pa-\nOn March 28, Agent DeSarno ar-\nfrom the other ones.\nDeMoss.\nrade magazine's report that Con-\nrived early - an hour early - at\n\"While I cannot speak for all of\nLast fall, Mr. Falwell received a\ngressman Les Aspin was sleeping\nWashington Dulles International\nthe families of those listed above, I\npackage containing HIV-infected\nwith a female member of the\nAirport. He couldn't miss this\ncan and do speak for Jerry Falwell.\nurine and a letter, signed by Queer\nTimes' Washington bureau, who,\nflight since he and his boss, Robert\nWe would demand that you substan-\nNation, warning that if the urine\nafter this was asked about at press\n\"Bear\" Bryant, special agent in\ntiate this statement with regard to\ndidn't kill him, \"we will kill you.\"\nbriefings at the White House and\ncharge of the Washington FBI of-\nJerry Falwell, or provide public re-\nJohn Woods, a spokesman for\nthe State Department, was, as I\nfice, were traveling together to Las\nTHURSDAY, APRIL 15, 1993\ntraction,\" Falwell spokesman R.\nQueer Nation in San Francisco,\nunderstand, transferred to Cairo.\nVegas for a weeklong conference\nMarc DeMoss wrote to the National\nsaid that while he didn't know any-\n\"So I am wondering, Mr. Chair-\ndealing with Asian organized\nGay & Lesbian Task Force, on\nthing about the death threat, it\nman, why such action was taken\ncrime.\nwhose behalf Miss Navratilova\nsounds like a great idea to me.\"\nagainst normal heterosexual\nMr. Bryant got to the airport\nmade her remarks.\nwomen, while Schmalz is allowed to\nearly as well. He wondered where\n\"Surely Martina Navratilova\nThe other Times\ngo on covering the AIDS-\nAgent DeSarno was. Mr. Bryant fi-\ndoes not presume that just because\nhomosexual beat, about which he\nnally had to board the plane, alone.\nshe is a proud lesbian, every family\nThe annual shareholders meet-\ncan hardly be regarded as either\nAs for Agent DeSarno, he was at\nin America has gay and lesbian\ning of the New York Times was\nobjective or a disinterested party?\"\nthe other end of the airport, wait-\nmembers. Fortunately, studies\nheld this week, and company Chair-\nThe chairman said he wouldn't\ning at the wrong gate. Soon he was\n[that] have found the homosexual\nman Arthur Ochs \"Punch\" Sulzber-\nspeculate on that. Sounding an-\nsprinting the entire length of the\npopulation to be between 2.5 and\nger Sr. was on hand. One of the\nnoyed, he added, \"After all, this is a\nconcourse to the right gate. Both\n2.8 percent have more credibility\nshareholders, Washington journal-\nbusiness meeting.\"\nthe plane - and his boss -\nthat a fund-raising letter signed by\nist Les Kinsolving, agreed to fill us\n\"But this is the news business,\"\nwere gone.\nYeltsin will ask\nRutskoi to resign;\ncoup trial opens\nopenly squabbling with his vice\nBy Gerald Nadler\nTHE WASHINGTON TIMES\npresident seemed incongruous, the\nstart of the trial of the alleged 1991\nMOSCOW - Boris Yeltsin said\ncoup plotters yesterday, 17 months\nyesterday he will ask for the resigna-\nafter the failed putsch, bordered on\ntion of his constant critic, Vice Pres-\nfarce.\nident Alexander Rutskoi.\nThe defendants marched through\n\"Ethically, I must tell him this not\nthe streets at the head of a column\nin public, but privately, and this is\nof mostly elderly communist sup-\nwhat I shall do,\" Mr. Yeltsin said at a\nporters with red flags, ended their\nAnatoly Lukyanov waves to supporters yesterday on the way to his trial.\nnews conference. The Russian pres-\nprocession at the door of the Su-\nident said his face-to-face meeting\npreme Military Court, entered the\nwith the Afghanistan war hero could\nchambers and walked right into the\ntake place as early as today.\ndock.\nMr. Yeltsin also said that if he wins\nInstead of an open proclamation\nthe April 25 referendum, he will be-\nthat they had acted as patriots to\ngin the next day \"to neutralize\" any\nsave the Soviet Union, the 12 defen-\nobstructions by parliament.\ndants used legal maneuvering, say-\nThe referendum in 10 days will\ning only a court of the now-defunct\nask voters four questions: Do you\nSoviet Union could try them.\nhave confidence in the president?\nWhen the claim was turned down,\nDo you approve of his policies? Do\nthe lawyer for defendant Alexander\nyou want him to stand for re-\nTizyakov, former president of Soviet\nKryuchkov\nYanayev\nPaviov\nLukyanov\nelection? Do you want balloting for a\nstate enterprises, said his client felt\nnew parliament?\nill, and the proceedings were ad-\nCOUP PLOTTERS ON TRIAL\nMr. Yeltsin hinted last week that if\njourned for the day.\nThe 12 men accused of plotting the falled August 1991 coup against\nvoters show confidence in him and\nThe defendants, including former\nthe government of Soviet President Mikhall Gorbachev.\nvote to hold parliamentary elections,\nVice President Gennadi Yanayev, are\nhe will declare presidential rule and\ncharged with treason, attempting to\nViadimir Kryuchkov, 69, was chairman of the KGB. Gorbachev called\norder elections.\nusurp power and exceeding their\nhim the mastermind of the coup.\nIf voters disapprove of his rule, he\nauthority. If convicted, they could\nGennady Yanayev, 55, was vice president of the Soviet Unioof the\nsaid, \"the president will step down.\"\nface the death penalty or up to 15\nself-proclaimed State Committee for the State of Emergency, which seized\nYesterday, he said if elections are\nyears in prison.\npower.\nneeded for president and parlia-\nDefendant Anatoly Lukyanov, for-\nValentin Paviov, 56, was prime minister. According to investigators, he\nment, the balloting should be held in\nmer chairman of the Supreme So-\nwas so drunk on the second day of the coup that a Kremlin doctor was\nthe fall.\nviet, said the proceeding will be\ncalled to treat him.\nMr. Yeltsin's bold declarations left\nturned into a political trial.\nAnatoly Lukyanov, 62, was chairman of the Soviet parliament and had\nthe confused Russian political scene\nIn a dramatic moment on the Rus-\nbeen a friend of Gorbachev's since law school. He wrote patriotic poetry\nmurkier.\nsian TV evening news, announcer\nwhile in prison.\nMr. Rutskoi, who was elected with\nSvetlana Sorukina said, \"I want to\nGen. Dmltry Yazov, 69, was defense minister. He told investigators he\nMr. Yeltsin in June 1991, said he has\nexpress my opinion.\"\nbegan having second thoughts soon after the coup was launched.\nno intention of being forced out.\nShe said the members of the\nOleg Shenin, 56, was a Politburo member and might have replaced\n\"I will stay until the finish,\" he\n\"Emergency Committee\" should be\nGorbachev as Communist Party leader. He recently was elected head of\nsaid in a televised interview.\ntried for causing the deaths of three\nthe newly revived Union of Communist Parties in the former Soviet\nBut Mr. Yeltsin appears almost as\ninnocent persons Aug. 20, 1991. That\nrepublics.\nobsessed with ridding himself of Mr.\nwas the most dramatic day of the\nRutskoi as with getting a new parlia-\nGen. Yurl Plekhanov, 53, was head of KGB presidential security.\ncoup, when three young men were\nment and a new constitution. By\ncrushed to death by an armored ve-\nGen. Vyacheslav Generalov, 47, was Plekhanov's deputy.\nholding elections this fall, Mr. Yel-\nhicle.\nGen. Viadimir Varennikov, 69, was head of Soviet ground troops and\ntsin could simply dump his vice\nThe opening of the trial 11 days\nwas sent to the Crimea to tell Gorbachev he had been ousted.\npresident in favor of another.\nbefore the referendum is expected\nOleg Baklanov, 61, was deputy chief of the state defense council and a\nThat would force Mr. Rutskoi, 44,\nto inflame the passions tearing at the\nrepresentative of the military-industrial complex.\nthe leader of the Democratic Party\ncountry. If the defendants persist in\nof Free Russia, to run against Mr.\nAlexander Tizyakov, 67, headed an association of state factories.\nentangling the trial in legal details,\nYeltsin in an election that the pres-\ntheir refurbished image as patriots\nVasily Starodubtsev, 62, headed a group of collective farm leaders.\nident believes he would win easily.\nmay fade fast and make Mr. Yeltsin\nSource: Associated Press\nIf the spectacle of a president\nmore attractive in the national vote.\nThe Washington Times\nmachinaton Times\nTHURSDAY, APRIL 15, 1993\n68\nGo-Round\nMerrie Morris\nParty patter: Among sup-\nposedly more substantial issues\nraised during Dee Dee Myers'\npress briefing Tuesday came the\nquestion of state dinners - as in\nthere haven't been any.\nPrincess Diana\nQ: When is President Clinton]\ngoing to have a state visit? I mean,\nwould just love it if Di could visit\nwe kind of miss the fife and drum\nNew York next month on behalf of\ncorps.\nthe financially shaky American\nMiss Myers: Soon. But you can\nBallet Theatre.\nonly have one state visit per coun-\nAnd since she'd be here anyway,\ntry per administration, so we don't\nHarvard University has invited\nwant to spend them all upfront.\nDiana to Boston to speak on AIDS,\nQ: Who gets the first one?\na cause with which she's closely\nQ: What's it going to be? Zim-\nidentified. And then she can just\nbabwe? (Laughter.)\nhop a shuttle and drop by Washing-\nMiss Myers: Helen [presumably\nton to see if the White House will\nUPI's Helen Thomas], we thought\ntreat her better than it did hubby\nwe'd let you pick. So why don't you\nPrince Charles.\nlet us know what country you'd like\nNews reel: Michael Jackson\nus to start with? (Laughter.)\ncontinues in his campaign to over-\nTax relief: The new Capitol\nwhelm the country's consciousness.\nGrille in Arlington's Courthouse\nThis time he appears with newly-\nPlaza is doing its bit to get in the\nwed Eddle Murphy in Eddie's eco-\npresident's good graces. The res-\nlogically inspired video \"Whatzup-\ntaurant will donate $10.40 from ev-\nwitu.\" The video debuts at 8:58\nery table check today - and today\n(now how's that for precise?) to-\nonly - to the Bureau of Public\nnight on Fox TV, MTV and Black\nDebt's Debt Reduction Fund.\nEntertainment Television.\nHollywood on Potomac:\nThe Rolling Stones waived\nroyalty rights to their '60s classic\nThe city is already gearing up for\n\"Gimme Shelter\" and donated a\nJulia Roberts and Denzel Washing-\npreviously unreleased version of\nton to start shooting \"The Pelican\nBrief\" here in mid-June. Auditions\nthe song to a British charity for the\nfor small parts are today at Arena\nhomeless. Putting Our House in Or-\nStage, but don't bother showing up\nder plans to put out several ver-\nwithout an appointment. Everyone\nsions of the song in England. No\nplans for a U.S. rerelease yet.\nwants a piece of this action.\nOn the weirder side, that was\nKathleen Turner shooting John Wa-\nters' latest, \"Serial Mom,\" in Glen\nBurnie yesterday and Tuesday.\nIt's hard to miss local lawyer\nturned actor Steve Aronson on \"An-\nother World\" today. He's the umpire\ngone berserk at Wrigley Field.\nTiara boom: The world's No. 1\ncover girl soon may grace our\nshores. The New York Post reports\nthat none other than Jackle Onas-\nsis is lending her name to an invita-\ntion to Princess Diana. Jackie\nJulia Roberts\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n69\nSUZANNE FIEL\nS\nF E DS\nFrom page Gl\nUnwed\nturned to school. compared to about\na third who did not. Such percent-\nages demonstrate promise.\nWhat's striking is that so many\nbonus\nteen-agers who would earn extra\nmoney decided to forego the bonus\nand accept the penalty rather than\ngo to school.\nstrategy\nIt tells us that $62 doesn't mean\nmuch to many teen-age mothers, not\nenough to go to school. Some teen-\nage mothers probably have other\noney talks. It talks to the\nmeans of hidden support from their\nM\nrich and it talks to the\nfamilies and even the fathers of their\npoor. But it has a differ-\nchildren. Many of these young\nent vocabulary for rich\nwomen never learned the value of\nand poor.\nA prosperous father promises his\neducation. The incentive approach to wel-\nteen-age daughter a dollar for every\nfare is benign, and a 10 percent in-\n\"A\" on her report card. Welfare\ncrease in teen-agers who will gradu-\nstrategists use similar strategies to\nate from high school makes it worth\nkeep teen-age mothers in school.\ndoing. But behaviorist approaches to\nA welfare program in Ohio, for\nwelfare and education suffer from\nexample, fattens the welfare check\nthe same problem critics of B.F.\nby $62 each month that a teen-age\nmother stays in school or returns to\nSen. Moynihan wants\nschool after dropping out. But, like\nbirth to children out of wedlock\nthe father who docks a child's allow-\neven more incentive\nsoared. The stigma of unwed moth-\nance for bad grades, teen-age moth-\nerhood evaporated, too. The rise in\ners who quit school or who have\nprograms for welfare\nunwed mothers accounts for more\nmore than two unexcused absences\nsuffer a welfare check cut of $62.\nrecipients.\nthan 70 percent of additional welfare\nfamilies between 1987 and 1991.\nB.F. Skinner, the behaviorist who\nSen. Pat Moynihan of New York,\npushed rewards and punishments as\nSkinner identified when they ap-\ngodfather of welfare reform, wants\na powerful means for changing be-\nplied his theories to many other hu-\neven more incentive programs for\nhavior, would appreciate this imagi-\nman endeavors. They don't get to the\nwelfare recipients. He's especially\nnative public boxing of his theory.\nroot of problems. Whether meas-\ntroubled by the way our society has\nAn Ohio teen-age mother with one\nured in dollars or sense, such incen-\n\"normalized\" deviancy, and worries\nchild, who is eligible for a monthly\ntives are superficial.\nthat society accepts increasing num-\ngrant of $274, soon learns that she\nThirty years ago, welfare agen-\nbers of deviant behavior as normal.\ncan earn as much as $336 a month if\ncies became moral regulators, re-\nUnwed motherhood, in this sce-\nshe attends school, and as little as\nfusing to pay an unmarried woman\nnario, has been normalized. What\n$212 if she doesn't.\nwith a man in her house. The state\nwas once shocking has become com-\nThe acronym for the Ohio pro-\nbecame the husband who looked for\nmonplace. What was once shameful\ngram is Leap for \"Learning, Earning\ncheaters under the bed, sending out\nis now celebrated. An attempt to turn\nand Parenting,\" and emphasizes the\nsnoops at all hours to ensure the up-\nincentives around can't hurt, but un-\nbenefits of a high school education\nrightness of the welfare recipient.\ntil we redefine social standards and\n- hope for a better job. Leap also\nThe law of unintended conse-\nrevive social stigma for hurtful be-\nshows that discipline and learning\nquences let men off the hook alto-\nhavior, nothing else is likely to make\nmuch of a difference.\ncan pay-as-you-go.\nNot everybody takes advantage\ndid. gether. Marriage didn't pay. Only sex\nHarsh, maybe, but true. Money\nof the program.\nStigma disappeared. The num-\ntalks. But those who take it often talk\nIn a six-year study of more than\nbers of welfare mothers who gave\nhear. back, and we may not like what we\n7,000 teen-age mothers, the Man-\npower Demonstration Research\nCorp. of New York found 61 percent\n- 10 percent more teen-agers -\nstayed in school when they earned\nthe bonus, compared with 51 per-\ncent in a control group who did not.\nNearly half of the teen dropouts who\nreceived economic enticements re-\nsee FIELDS, page G4\nSuzanne Fields, a columnist for\nThe Washington Times, is nationally\nsyndicated.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n70\nFRANK GAFFNEY JR.\nf a Republican filibuster in the\nI\nSenate has brought to an early\nend President Clinton's honey-\nSecret reports\nmoon on domestic policy, the\nClinton ship of state has been no less\nseverely rocked by two powerful\nmines struck while navigating the\nrocking the boat\noften-treacherous waters of interna-\ntional affairs. While at this point, the\nfull extent of the damage done to the\nnot enough to provide food and medi-\ngroup's assessment of the United\nadministration's program by the re-\ncine to the victims of Serbian ag-\nStates' options.\ncent revelation of two heretofore se-\ngression. What is killing and maim-\nRegrettably, this subterfuge\ncret reports can only be surmised,\ning them is artillery shells and other\nseems of a piece with other recent\nweapons fire, not malnutrition.\nClinton decisions toward the former\nits credibility concerning - and\ntherefore the prospects for effec-\nThe report concludes, accord-\nYugoslavia - notably, his acquies-\ntively managing - the crisis in Bos-\ningly, that what is needed are \"safe\ncence to Russia's insistence that fur-\nnia and U.S. policy toward Vietnam\nhavens,\" which can of course only be\nther action on tightening the sanc-\nhas unquestionably been seriously\nmade safe by deploying ground\ntions against Serbia, to say nothing\neroded.\nforces and air cover for protection.\nof lifting the Bosnian arms em-\nbargo, be postponed until after April\nThe first report was one pre-\nAs this position is inconsistent with\npared at the administration's re-\nPresident Clinton's current determi-\n25 (the date of Boris Yeltsin's ref-\nquest by a 26-member government\nnation to avoid committing troops to\nerendum). Such actions have the ef-\nteam. The group had been sent to\nthe conflict in Bosnia, the adminis-\nfect of signaling to Belgrade that its\nBosnia to evaluate what could be\ntration's reluctance to disclose this\npredations in Bosnia may continue\ndone swiftly to alleviate the suffer-\nfinding is understandable.\nunchecked; that there need be no\ning of innocent civilians there. Not\nWhat is not acceptable, however,\nfear of meaningful Western inter-\nsurprisingly, the officials from the\nis the fact that, when the fact-finding\nvention to defend the innocent, let\nState, Defense and other depart-\nteam was authorized to relay its con-\nalone to punish the aggressor.\nments concluded the obvious: It is\nclusions to the Congress last week,\nThe second report was discov-\nthe Clinton administration in-\nered in February in the archives of\nstructed the briefers to delete any\nthe Soviet Union's military intelli-\nFrank J. Gaffney Jr. is the director\nreference to their central recom-\ngence unit, the GRU. It details a 1972\nof the Center for Security Policy, the\nmendation. As a result, members\nbriefing by Gen. Tran Van Quang,\nhost of public television's \"The World\nwere given a seriously misleading\nthe then-Deputy Chief of Staff of the\nThis Week\" and a columnist for The\npicture of the situation on the\nWashington Times.\nground and misinformed about the\nsee GAFFNEY, page G4\nGAFFNEY\nUnfortunately for the Clinton ad-\nspecial committee on POW-MIA af-\nministration, as with the Bosnia re-\nfairs and successive U.S. administra-\nFrom page G1\nport, the revelation of this explosive\ntions have used to cover up evidence\ndocument comes at a particularly in-\nof North Vietnamese bad faith and\nNorth Vietnamese Army to his coun-\nopportune time. It had just an-\nofficial American guilty knowledge\ntry's Communist Party Politburo\nnounced that Gen. John Vessey, the\nof the same.\nconcerning the exact number of\nformer chairman of the Joint Chiefs\nStill, the existence of the Quang\nAmericans captured by Hanoi dur-\nof Staff who had been appointed\nreport - like the true character of\ning the Vietnam War. Gen. Quang\nPresident Bush's special emissary to\nthe Bosnia study - should make it\nhelpfully breaks out the POWs by\nVietnam, was going to return to Ha-\nmore difficult for the Clinton admin-\nrank, by location of capture and by\nnoi next week. The object of the Ves-\nistration to perpetrate the ap-\nattitude toward the war - from\nsey trip was transparent: to finalize\npeasement policy it had in mind. The\n\"progressive\" (that is, apologetic) to\nthe whitewash of North Vietnam's\nreal question is this: Will President\n\"reactionary\" (read, defiantly sup-\nprevarications about American\nClinton continue to ignore the com-\nportive of the war effort).\nPOWs and MIAs SO as to clear the\nmitments to democracy, to opposing\ndecks for normalized bilateral trade\ntotalitarian oppression and to resist-\nMost importantly, the report con-\nand diplomatic relations.\ning its aggression that he made re-\nfirms what many have long believed:\nNow, we are told, the Quang re-\npeatedly during the campaign?\nHanoi in 1972 held 1,205 American\nport will be the first item discussed\nIf so, he will presumably persist\nprisoners of war, three times the\nbetween Gen. Vessey and his Viet-\nin trying, despite these setbacks. to\nnumber it has previously disclosed\nnamese interlocutors - who have al-\nabandon those aspiring to peace and\nand 614 more than it permitted to be\nready denounced it as a fabrication.\nfreedom in Bosnia, Vietnam and be-\nrepatriated at the end of the war. It\nDoubtless, a concerted effort will be\nyond. In the process, he will inevita-\nis, in the words of Stephen Morris,\nmade by Hanoi and its friends in the\nbly further desecrate the memory of\nthe Harvard researcher who discov-\nUnited States to discredit this doc-\nthose Americans and others who\nered the document, the \"smoking\nument. Indeed, its troubling disclo-\nhave not simply paid lip-service to\ngun\" long sought in connection with\nsures will probably be swept under\nsuch ideals but have given their lives\nthe POW-MIA issue.\nthe same rug that Sen. John Kerry's\nto defend and promote them.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n71\nCAL\nHOMAS\nHOM AS\nFrom page G1\nAgony\nMr. Brock notes that Miss Hill\nBrock dismantles every statement,\ndenied the sworn testimony of Carl-\noffering names of numerous wit-\nton Stewart (former special assis-\nnesses and/or Miss Hill's own con-\ntant to Clarence Thomas at the Equal\nbathed in\ntradictory statements to dismantle\nEmployment Opportunity Commis-\nher contentions.\nsion) and Stanley Grayson (former\nMr. Brock reminds us that every-\ndeputy mayor of New York City) that\none who worked with and knew both\nshe said Justice Thomas deserved\nrays of\nClarence Thomas and Anita Hill be-\nthe nomination. Miss Hill offered a\nlieved Justice Thomas, not Miss Hill.\nmisleading account of how she got\nThose with political scores to settle\nher teaching job at Oral Roberts\nand who knew neither Miss Hill nor\nreality\nUniversity. Because the alleged sex-\nJustice Thomas skillfully turned\nual harassment is supposed to have\nwhat should have been a hearing that\noccurred behind closed doors with\nfocused on background, writing and\njust the two of them present, there\nevidence into a political show trial on\nwill never be a \"smoking gun\" doc-\nH\ne still talks about it. He\nthe issue of sexual harassment. In a\nument or third-party witness who\nbrings it up without\ncourtroom, such an attempt would\nwill persuade everyone who is tell-\nprompting. The public\nhave been deemed immaterial, and\ning the truth. So we have to look at\nlynching of Clarence\nobjections would have been sus-\nthe character of those involved, and\nThomas, 18 months ago, continues to\ntained. But a show trial permits any-\nMr. Brock does this with the thor-\noccupy much of the Supreme Court\nthing that helps make the point those\njustice's thinking. But a visitor has\noughness of an FBI agent conduct-\nholding power want made.\nthe impression that it is more than a\ning a background check.\nMiss Hill could not find a single\ngnawing personal pain. To be called\ncorroborating witness to back up\nIt was suggested during the hear-\na sexual harasser and hear words\nher charges. During the time she al-\nings that Miss Hill should be be-\nattributed to you that you never said\nleged Justice Thomas was sexually\nlieved over Justice Thomas because\n- words that\nharassing her, Mr. Brock writes,\nshe had nothing to gain and he had\nwould have\n\"Hill complained that Thomas 'did\neverything to lose. But since the\ncrushed the nuns\nnot even notice me'; she portrayed\nhearings, Anita Hill has enriched\nwho taught you,\nhim as the 'ideal boss' who was par-\nherself with speeches at a reported\nand the grandfa-\nticularly respectful of women em-\n$10,000 a pop. She refuses all ques-\nther who reared\nployees; and she asserted he would\ntions about her testimony from audi-\nyou, and the wife\n'make a great father'\nences and the press. Given her con-\nand children who\nAre these the words of someone\ntradictory statements and the fact\nlove and respect\nwho feels sexually harassed? If Miss\nthat more than a dozen credible wit-\nyou - is some-\nHill was afraid of losing her job\nnesses with reputations of integrity\nthing you can\n(which Mr. Brock debunks, saying\nwould have had to perjure them-\nnever forget. Jus-\nClarence Thomas\nshe had job security and knew it),\nselves in order to testify in favor of\ntice Thomas obviously believes he\nshe might have made lukewarm\nJustice Thomas, it ought to be clear\nwas done a grave injustice.\ncomments in favor of Thomas, but\nto fair-minded people, who are inter-\nthose she did make went above and\nested in the truth instead of scoring\nOf greater concern to him,\nbeyond generalities. They are words\npolitical points, that Clarence\nthough, is the effect his experience\nhas had on the Supreme Court and\nof conviction, not pragmatism.\nThomas suffered cruel and unusual\non the nation's dwindling respect for\nMiss Hill testified she had agreed\npunishment he did not deserve.\nlaw and the legal system.\nwhen making her complaint to the\nIn addition to vindicating Cla-\nJudiciary Committee that Justice\nrence Thomas, the book also sup-\nBut now, like the convict wrong-\nThomas could be told her name. In\nports the prosecutorial tactics of Re-\nfully accused who is set free from an\nfact, says Mr. Brock, she did not. Mr.\npublican Sens. Arlen Specter of\nunjust sentence, Clarence Thomas\nBrock also notes that when the Jus-\nPennsylvania and Alan Simpson of\ncan see the light of vindication. It\ntice Department suggested Miss\nWyoming, who were denounced at\ncomes in a new book by David Brock\ntitled \"The Real Anita Hill: The Un-\nHill as a possible witness in Justice\nthe time for not \"getting it\" in their\nThomas' favor, before Miss Hill\nrelentless pursuit of the truth.\ntold Story,\" a portion of which has\nbeen excerpted in the Wall Street\nmade her charge, Justice Thomas\nThe press, especially television,\nJournal.\nthought it was a good idea. Even\nhas an obligation to give Mr. Brock\nafter the charge, Justice Thomas re-\nand his book the saturation coverage\nIt takes every charge leveled by\nfused to withdraw from the nomina-\nthey deserve. Anita Hill was never\nMiss Hill during those riveting hear-\ntion. Is this the behavior of a man\nheld accountable for her remarks\nings and destroys them (and her\nwith something to hide?\nand continues to profit from them.\ncredibility) one by one.\nShe has become a high priestess in\nRevisiting each allegation Miss\nthe cult of feminist male-bashing.\nHill made during the Senate Judi-\nThose who believed Anita Hill\nciary Committee hearings, Mr.\nbased on her testimony need to read\nthis book and then offer Clarence\nsee THOMAS, page G4\nThomas an apology.\nCal Thomas is a nationally syndi-\ncated columnist.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n72\nLEONAR LARSEN\nSenate's\ntacked federal prosecutors for lodg-\ning the indictment against him.\nThe grand jury's action in sub-\nmitting a felony charge, Mr. Duren-\nbuddy\nberger asserted, resulted not from\nhis own misconduct but from \"the\nunfettered ambition of bureaucrats\nwho have spent millions of taxpayer\nsystem\ndollars to find a nonexistent needle\nin the haystack of facts surrounding\nthis case.\"\nThe needle in the haystack was\nen. Dave Durenberger, a man\nnot so difficult for the Senate Ethics\nS\nmost other senators see as an\nCommittee to find three years ago,\nable lawmaker and a fine\nand it was plain enough then for Mr.\nfriend, is what's wrong with\nDurenberger to admit to.\nthe U.S. Senate and its poisonous\nWhat he'd done, almost all parties\npalsmanship.\nagreed, was set up a false front to\nIn 1990, the full Senate should\nmake it appear he did not really own\nhave expelled the Minnesota Repub-\na condo he owned in Minneapolis.\nlican for what amounted to theft of\nThat way, he stayed in what was ac-\ngovernment funds. His shame de-\ntually his own property on visits\nserved that.\nfrom Washington and he billed the\nInstead, members of the Senate,\nSenate for rental expenses - an\nsome of them moved to tears, issued\namount reported at more than\na strong wrist slap for Mr. Durenber-\n$39,000 during the run of Mr. Duren-\nger's shady dealings, which had\nberger's scam.\nbeen described by the Senate Ethics\nAt the time of his denouncement\nCommittee as \"reprehensible\" and\nby the Senate, Mr. Durenberger had,\n\"clearly and uneqivocally uneth-\nin effect. admitted his guilt and had\nical.\"\nThe Senate's formal punishment,\nby a 96-0 vote, was to adopt a res-\nolution denouncing Mr. Durenber-\nThe Senate obviously\nger for shenanigans that, the res-\nolution said, brought \"dishonor and\nfinds it easier to\ndisrepute\" on the Senate itself.\npunish the entire\nThe then-chairman of the Ethics\nCommittee, Sen. Howell Heflin, Ala-\nnation with their\nbama Democrat, said of Mr. Duren-\nberger that \"the evidence of know-\ncollective legislative\ning and willful misconduct is clear\nmisdeeds than to\nand convincing.\"\nMr. Durenberger, who accepted\npunish each other.\nwithout protest the punishment of\ndenouncement from his fellow Sen-\nate clubmen, said at the time one of\nrepaid $11,000 in the bogus billings.\nhis regrets was the \"extra burden\nThe Senate said he should repay an-\nmy misconduct has placed on each\nother $29,000 before the books\nof you.\" For television, Mr. Duren-\nwould be clear.\nberger said that only three words\nThe trouble with the long unrav-\nwere appropriate: \"I am sorry.\"\neling of the Durenberger case and\nAll that was then: July 25, 1990.\nthe trouble for all Americans is that\nNow, though, to hear Mr. Duren-\nmost of the senators - Democrats\nberger's response to a recently re-\nand Republicans - are such dear\nturned criminal indictment arising\nfriends in the club that they are un-\nfrom the same charges and accusing\nable, even paralyzed, and prevented\nhim of false claims for reim-\nfrom doing the right thing.\nbursement of expenses, all that\nThey can quarrel over politics -\nnever happened.\ncurrently whether and how much\nPresident Clinton's budget requests\nThe indictment, which covers\nwill be changed - but the Senate\nonly a part of the broader accusa-\nobviously finds it easier to punish\ntions made against Mr. Durenberger\nthe entire nation with their col-\nduring the probe by the Ethics\nlective legislative misdeeds than to\nCommittee, was \"groundless,\" Mr.\npunish each other.\nDurenberger said, adding for good\nMr. Durenberger is not the first.\nmeasure that \"these allegations are\nIn 1981, Sen. Harrison Williams,\ncompletely false.\"\nNew Jersey Democrat - another\nAs if submitting proof that there\nnice guy liked by everyone - was\nare absolutely no limits on the hy-\nindicted and convicted of taking a\npocrisy of high office, Mr. Duren-\nbribe. The Senate was only getting\nberger - denounced by the Senate\naround to considering his expulsion\nthree years ago for \"reprehensible\"\nwhen he resigned.\nactions and so contrite that he\nMr. Durenberger can still count\napologized to colleagues for the \"ex-\non palsmanship. Sen. Bob Dole of\ntra burden of my misconduct\" - at-\nKansas, the Republican minority\nleader, said after the indictment\nthat, \"I have every confidence that\nLeonard E. Larsen is a columnist\nDave Durenberger will be cleared of\nfor Scripps Howard News Service.\nthese old charges.\"\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n73\nMIKE ROYKO\nLos\nAngeles\nTICK\nTICK\nTICK\nVERDICT\nometimes there is just no\nS\npleasing people.\nWord\nvocative: 52 dead bodies and dozens\nof burning buildings.\nA few days ago, the police\nConsidering the death toll of the\nchief in Los Angeles was be-\nlast L.A. riot, I don't know how any-\ning interviewed on public radio\none can consider a large police and\nabout his strategy for preventing an-\nother big riot.\ngames\nNational Guard presence provoca-\ntive.\nHis strategy includes putting a\nMr. Chavis says it reminds him of\nlot of police on the streets before the\nin L.A.\npreparations for Desert Storm?\nRodney King verdict comes in.\nFine. If I were in charge of de-\nThe reporter asked him if such a\nflecting a possible riot, I would con-\nshow of force wouldn't be seen by\nsider that the minimal desired ef-\nsome people as a \"provocative\" act.\nmy dictionary says means: \"To ex-\nfect. If anything, I would want my\nInstead of saying, \"You are a\ncite to some action or feeling; to an-\npreparations to make people think of\nscrewball, and I don't talk to screw-\nger, irritate or annoy; to stir up; to\nGen. Dwight Eisenhower, talking to\nballs,\" and ending the interview, the\ncall forth, evoke.\"\nthe troops before the invasion of\npolice chief had to patiently explain\nI'm not sure what Mr. Chavis or\nNormandy, or Gen. George Patton,\nthat, no, he wasn't putting cops on\nthat public radio reporter find \"pro-\nstirring the blood lust of his tank\nthe streets to cause trouble: he was\nvocative\" about the police and Na-\ndivisions.\ndoing it in hopes of preventing trou-\ntional Guard presence.\nOnly one thing discourages riot-\nble.\nAbout a year ago, the first trial of\ning. It is the possibility of swift, firm\nThe reporter didn't sound totally\nRodney King took place. The jury\nand remorseless bodily harm. For\nconvinced. Maybe the police chief\nfound the cops not guilty of undue\nall the media and political talk about\nshould have said he was going to put\nzeal in flailing him.\nthe motives of rioters, nobody can be\n1,000 sociologists on the streets to\n(Had I been a juror, I wouldn't\nsure why people riot.\ngather statistics on frustration,\nhave voted to acquit. One of the cops\nYes, when the Rev. Martin Luther\nhopelessness and the need to enter\nseemed to be far too enthusiastic. I\nKing Jr. was murdered, riots broke\nstores through the display window.\nadmired his swing, which appeared\nout all over urban America, and it\nThen there are the concerns ex-\nas compact and powerful as that of\nwas probably a collective outburst\npressed by Ben Chavis, the new\nBernhard Langer. But any golf pro\nof grief and rage.\nhead of the National Association for\ncould have told him to practice a few\nBut less than a year ago, we had\nthe Advancement of Colored People.\nputts or chip shots, which would\na riot in Chicago. What provoked\nMr. Chavis noted that the gover-\nhave improved his game and kept\nthem to burn and loot? The Chicago\nnor of California has called up Na-\nhim from being indicted.)\nBulls won their second champion-\ntional Guard troops and is sending\nAfter the first trial, the police\nship.\nthem into areas where rioting OC-\nchief of L.A. went to a cocktail party,\nSo what was their motive? Mi-\ncurred after the first trial of the cops\nand his police department appeared\nchael Jordan didn't get a triple-\nwho beat Rodney King.\nto have gone out for coffee.\ndouble?\nAnd the governor is mobilizing\nI don't know what the governor of\nThe only thing we know for sure\nbefore even one disorderly act has\nCalifornia did. Maybe he went out in\nabout riots is that when there are\noccurred.\nthe yard and picked some oranges.\ncops and troops in sight, about 98\nThe sight of the troops, Mr.\nBut the result was that nobody\npercent of the potential rioters stay\nChavis said, reminded him of this\nwith a badge and a gun was within\nhome and watch it on TV. They are\ncountry's preparations for the De-\nsight or hearing when thousands of\nnot dummies. Nobody wants to get\nsert Storm conflict.\nunruly people took to the streets for\nshot for stealing a bag of onions.\n\"I want to make sure,\" Mr. Chavis\ntheir own purposes. Some for seri-\nWhich means that this time there\nsaid, \"that we don't go too far and\nous violence, others to grab a new\nwon't be 52 people dead and $1 bil-\nwind up doing something provoca-\ncar battery.\nlion in destroyed property.\ntive.\"\nAnd when it was all over, 52 peo-\nThat might be frustrating for\nThat word again: provocative. It\nple were dead, many more were\nthose who think that everybody who\nis from the word \"provoke,\" which\nmoaning from bumps and bruises,\nburns a building or loots a storefront\nand more than $1 billion in property\nis a victim of social injustice.\nhad been destroyed.\nBut it will make for a better next\nMike Royko is a nationally syndi-\nThat, I believe, is what any rea-\nmorning for the 52 and their fam-\ncated columnist.\nsonable person would consider pro-\nilies.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n74\nL 15, 1993\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\nCOMMENTARY\nHARRY SUMMERS\neveral important military\nS\nprecedents were set last\nweek that may have serious\nfuture repercussions around\nThe deepening crisis in Bosnia\nthe world.\nFirst was the decision by the Ger-\nAccording to The Washington\nAnother symbolic display was\n28, joined by France on March 27\nman Federal Constitutional Court\nPost, the American portion of the\nthe April 8 demand by the Interna-\nand Germany on March 28. Tb-\nthat continuation of Germany's self-\nUnlike no-fly zone\nimposed restrictions on its military\n60-plane force will include U.S. Air\ntional Court of Justice in The Hague\ngether, they have dropped 1,494.8\nForce F-15 fighters deployed from\nthat Serb-dominated Yugoslavia\ntons of food and 39.2 tons of medical\nwould \"endanger the trust for Ger-\nenforcement, the\ntheir base at Bitburg, Germany, to\ntake steps to prevent the \"crime of\nsupplies. Those airdrops were sub-\nmany within the (NATO) alliance.\"\nairdrops were not a\nAviano Air Base in Italy and U.S.\ngenocide\" in neighboring Bosnia-\njected to much ridicule when they\nThe 5-to-3 decision by Germany's\nfirst began and many - myself in-\nhighest court broke the political im-\nNavy F/A-18 attack fighters from\nHerzegovinia. While not binding, it\npasse between two contradictory ar-\nsymbolic display.\nthe aircraft carrier USS Theodore\nwas designed to \"help shape world\ncluded - doubted their practical\nticles in the German Basic Law. One\nRoosevelt, now in the Adriatic.\nopinion.\"\nvalue, given what we believed to be\nBut world opinion was shaped in\nan inability to set the goods down\narticle with World War II in mind\nFrench and Dutch aircraft are\nanother direction with the discovery\nprecisely where they were aimed.\n- imposed a constitutional re-\ndecision was precipitated by NATO's\nalso deploying to Northern Italian\nthat same day of 48 crates of small\nBut we were wrong.\nstriction on use of German forces for\nplans to enforce the U.N.-mandated\nbases and the British carrier Ark\narms ammunition hidden in a load of\nAs Air Force Brig. Gen. Donald\nother than defensive purposes. The\n\"no-fly zone\" in Bosnia, because\nRoyal and the French carrier Cle-\nflour supplied by the U.N. humani-\nE. Loranger, Jr., the commander of\nother, written when German partici-\nGerman military crews make up\nmenceau are on station in the Adri-\ntarian aid mission destined for a\nthe 435th Air Lift Wing actually\npation in the North Atlantic Treaty\none-third of the AWACS (airborne\natic. All of this mighty air armada\nMuslim-controlled section of Sara-\nmaking the drops explained, the air-\nOrganization was deemed critical to\nwarning and control system) air-\nshould prove sufficient to deal with\nthe Serbian air threat. The one Serb\njevo. Twenty-four sacks of gunpow-\ncraft involved are equipped with\nWestern defenses, specifically au-\ncraft essential to that operation.\nder and even more ammunition were\nAWADS, a post-Vietnam War \"Ad-\nthorized German membership in\nAs soon as the court ruling was\naircraft used to attack the Muslim-\nfound when the U.N. team searched\n\"collective security\" coalitions.\nissued, yet another historic decision\nheld town of Srebrenica last month\nverse Weather Aerial Delivery Sys-\ntheir warehouses at the airport.\ntem.\" Tied in to the satellite-derived\nIronically, just as events in the\nwas made. On April 8, NATO's 16-\nwas a biplane, apparently a con-\nMeanwhile, also on April 8, un-\nGlobal Positioning System and using\nBalkans propelled Germany into\nmember ruling council committed\nverted crop duster.\nnoticed and unremarked by the\n26-foot ring-slot parachutes de-\nWorld War I, events in the Balkans\nthe organization to combat for the\nAs Associated Press corre-\nworld press, the airdrop to the be-\nsigned specifically for high altitude\nare now placing Germany in a com-\nfirst time since it was created in\nspondent Robert J. Wielaard re-\nsieged Muslims in Eastern Bosnia\nrelease, AWADS has achieved re-\nbat situation for the first time since\n1949. NATO Secretary-General\nported from Brussels: \"The enforce-\ncontinued. On that night, six U.S.\nmarkable accuracy.\nThe Washington Times\nthe end of World War II. The court\nManfred Woerner informed the\nment has little military effect\nC-130 Hercules aircraft, one French\nUnited Nations that, effective April\nUnlike no-fly zone enforcement,\nbecause almost all Serbian attacks\nC-160 Transall and one German\n12, NATO warplanes would patrol\nthe airdrops were not a symbolic dis-\nhave been by ground troops. But it is\nHarry G. Summers Jr., a retired\nC-160 airdropped 53.8 tons of food\nBosnian airspace and shoot down\nplay. Thousands in the region are\nU.S. Army colonel, is a distinguished\nseen as a symbolic display of inter-\nand 1.7 tons of medical supplies to\nalive today because of the dedication\nany Serbian aircraft violating the\nfellow of the Army War College and a\nnational support for Bosnian Mus-\nSrebrenica for the 39th U.S. and 13th\nof U.S. and allied air-lifters. Let us\nno-fly zone imposed by the Security\nnationally syndicated columnst.\nlims and outrage against Bosnian\ncombined airdrop mission.\nhope the latest escalation will have\nCouncil in October 1992.\nSerbs.\"\nThe U.S. air drops began on Feb.\nthe same beneficial effect.\nhe news that the Demo-\nT\ncratic chairmen of the\nHouse and Senate tax-\nwriting committees op-\npose a key proposal in\nPresident Clinton's eco-\nBehind the budget curve?\nnomic recovery plan has dealt an-\nother serious blow to his leadership\non the economy.\nLess than three months into his\npresidency, with his job approval\nrating sinking below 50 percent, the\ncore proposals in Mr. Clinton's eco-\nnomic plan face serious opposition\nfrom leaders in both parties and in\nthe business community.\nWhat this means is that the very\nfoundation of his leadership on eco-\nnomic policy may be crumbling be-\nneath him. It also means that unless\nhe changes his plan to soak business\nand investors with higher taxes, he\nTHURSDAY, APRIL 15, 1993\nis in danger of seeing the central\nelements of his economic proposals\nrejected by Congress.\nPOW!\nSPENDING\nSoon after Mr. Clinton realized\nPLAN\nthat he had badly miscalculated by\ntrying to freeze the Republicans out\nof the process, he was hit by a new\ndevelopment that makes the GOP\nfilibuster to his $16.3 billion spend-\ning stimulus package the least of his\nproblems.\nNow it turns out that the two\nDemocrats who will be responsible\nfor writing and enacting his tax pro-\nposals have serious questions about\nthe $21 billion investment tax credit\nthat is the heart of his economic pro-\ngram.\nNew York Sen. Daniel Moynihan,\nwho chairs the Senate Finance Com-\nmittee, and Rep. Dan Rostenkowski\nSCHULL\nof Chicago, who chairs the House\nWays and Means panel, fear that the\nspring recess that higher taxes will\ninexperienced White House team, as\nraise their costs and force them to\ninvestment tax credit would open up\nit nears the 100-day mark, scramb-\nIt turns out that the two Democrats who will\ncut their work force.\na rash of tax loopholes that they had\nling to repair the damage from two\nboth worked to close in the tax re-\nbe responsible for writing and enacting his tax\n\"They can't find a friend for it in\nenormous blunders.\nforms of 1986. Rosty has privately\nCongress or in industry,\" Roger\nHe had lamely sought to imitate\ntold the White House there is little\nproposals have serious questions about the $21\nBrinner, chief economist for DRI/\nRonald Reagan's successful 1981\nsupport for the temporary, incre-\nMcGraw-Hill, told New York Times\nlegislative strategy But unlike Mr.\nmental investment tax credit among\nbillion investment tax credit.\nreporter David Rosenbaum.\nReagan, who formed a bipartisan co-\nDemocrats on his committee, let\nStill, Mr. Clinton is battling for his\nalition by reaching out to conserva-\nalone among the Republicans.\n$30 billion plan, hoping to salvage\ntive Democrats, Mr. Clinton arro-\n\"He has serious questions about\ncentives and pulled the investment\nbyists who argue that Mr. Clinton's\nwhat he can when Congress returns\ngantly believed he could legislate\nit,\" a chief Rostenkowski aide told\nrug out from under real estate devel-\ntemporary, incremental investment\nfor business next week, even though\nthrough one party rule. He was\nopers and the banking industry.\ntax credit proposal would create few\nmost business economists believe it\nme.\nwrong.\nBoth men were strong supporters\nNevertheless, Mr. Moynihan is on\nnew jobs.\nwould have a marginal impact on the\nMeantime, it turns out that the\nof the 1986 reforms that broadened\nrecord as saying that \"we estab-\nThe National Association of Man-\nnation's $6 trillion economy.\nvaunted economic plan he had been\nThe Washington Times\nthe tax base and lowered tax rates in\nlished a very important principle in\nufacturers, representing corpora-\nBut if Senate Republican Leader\nselling so skillfully - which is\norder to encourage long-term capi-\nthe '86 law.\nWe shouldn't go back\ntions that would be among the\nBob Dole and his troops have effec-\nmostly government spending (i.e.\ntal investment. Unfortunately, that\non that.\"\nheaviest purchasers of machinery,\ntively blocked the administration's\nborrowing) and higher taxes and\nplan also raised capital gains taxes\nthe American Council for Capital\nspending stimulus package, the soul\nprecious little else - is beginning to\nAt the same time, the business\nto 28 percent, weakened savings in-\nFormation, and many other groups,\nof his economic program, and if Mr.\nwear thin.\ncommunity, threatened with higher\nare flatly opposed to it.\nRostenkowski and Mr. Moynihan\n\"What's happened is that busi-\n36 percent income tax rates and even\nThey would rather junk the in-\nwant to dump his investment tax\nness finally got around to reading\nhigher marginal tax rates on invest-\nvestment tax credit and keep the\ncredit, the heart of his tax stimulus\nthe fine print and saw that there's\nDonald Lambro, chief political\nment income, has escalated its offen-\ncorporate tax rates where they are\nplan, what is left? Answer: Not much\nnothing in it for them,\" said Wall\ncorrespondent of The Washington\nsive against the investment tax\nnow. While Mr. Clinton pitches for it\nin the way of real economic stim-\nTimes, is a nationally syndicated\nStreet economist Larry Kudlow.\ncredit. The two chairmen have been\nhere, business owners are telling\nulus.\ncolumnist.\n\"And now the natives are getting\nbesieged by an army of business lob-\nlawmakers back home for their\nThat leaves Mr. Clinton and his\nrestless.\"\nMr. Eisner's answer has two\nparts: Whether the deficit fell de-\npends on how it is measured. If it is\nmeasured in relation to the size of\now it's liberal economists\nthe economy, the long Reagan expan-\nN\ngiving Clintonomics the\nsion cut the deficit in half as a per-\nthumbs down. Robert Eis-\ncentage of gross domestic product.\nner, professor of econom-\nIt fell less in absolute size, because\nics at Northwestern University, past\nthe Reagan expansion was unique.\npresident of the American Eco-\nInflation was lower at the end of the\nnomic Association and one of Amer-\nexpansion than at the beginning.\nica's most famous liberal econo-\nMr. Eisner reports that bigger\nmists, says President Clinton's plan\ndeficits result from less inflation\nto reduce the deficit will do more\nand smaller deficits from more in-\nharm than good.\nflation. The reason is simple. By in-\nMr. Clinton says a tax increase\nflating incomes, inflation produces\nwill cut the deficit and free national\nhigher tax revenues.\nsavings for investment, thus boost-\nIn the 1960s and 1970s, we \"paid\ning the economy. Mr. Eisner says the\nfor\" economic growth by accepting\ntax increase will cut consumption\na rising rate of inflation. During the\nand investment, thus boosting the\n1980s, inflation fell dramatically,\ndeficit.\nand the loss of revenues from lower\nWho is right? Consider Mr. Eis-\ninflation offset the growth in rev-\nner's argument, and make up your\nenues from an expanding economy.\nown mind.\nIt is ironic that the budget deficit\nOn the surface, Mr. Eisner says, it\nresulted from Mr. Reagan's greatest\nlooks like a smaller deficit would\nsuccess - the simultaneous reduc-\nmean less government borrowing of\ntion in unemployment and inflation.\nour savings and, therefore, more for\nMr. Eisner is concerned that mis-\nprivate investment. Indeed, this\ntaken claims of irreparable harm\nwould be the result if the deficit\nfrom budget deficits are pushing the\nwere reduced by a higher rate of\ngovernment into a policy that will\neconomic growth.\ncontract the economy. Raising taxes\nBut when taxes are raised, other\nmakes us poorer, but deficits make\nfactors come into play. Most notably,\nus richer. When the government fi-\ndisposable personal income falls,\nnances its spending by borrowing,\nand this results in cutbacks in per-\npeople exchange their money for\nsonal saving and consumption. Simi-\nTreasury securities, that are part of\nlarly, higher taxes on corporate prof-\ntheir wealth. But when government\nits reduce retained earnings and\nfinances its spending with taxes,\nbusiness saving. Thus, the\npeople exchange their money for a\nshrinkage in private savings would\nreceipt for tax payment.\noffset the gain from a smaller gov-\nTest his point on yourself. Would\nernment deficit.\nyou rather pay your taxes every year\nAnd this is just the beginning of\nby writing the government a check\nthe story. The fall in private con-\nor by buying an equivalent amount\nsumption means unsold goods, lead-\nof government bonds? Would you\ning to a cutback in production and\nfeel richer holding the bonds or a tax\nlayoffs. If the government is simulta-\nreceipt?\nneously cutting its own spending as\nMr. Eisner does not believe there\npart of a deficit reduction deal, there\nare no limits to debt. Governments\nis an even bigger decline in aggre-\ncannot indefinitely allow their debt\ngate demand.\nto grow faster than their income. To\nAs unemployment rises, the defi-\nadd perspective, he reports that at\ncit goes up. The government esti-\nthe end of the 1992 fiscal year the\nmates that every 1 percentage point\npublic debt held by the public was 51\nrise in the unemployment rate adds\npercent of gross domestic product,\n$50 billion to the deficit. A deficit-\nas compared to 47 percent in 1939\nreduction program that would really\nand 114 percent in 1946.\nwork, Mr. Eisner says, is one that\nPresident Bush raised taxes, and\nwould get the unemployment rate\nthe unemployment rate rose, taking\nback down to 5 percent where Mr.\nthe deficit up with it. Would it be any\nReagan had it, thus cutting the defi-\ndifferent for Mr. Clinton?\ncit by $130 billion.\nThe gist of Mr. Eisner's argument\nis that deficits are reduced by eco-\nPaul Craig Roberts, an economist\nnomic growth which won't happen\nat the Center for Strategic and Inter-\nif government is reducing purchas-\nnational Studies, is a columnist for\ning power with higher taxation.\nThe Washington Times and is nation-\nHere a question naturally leaps to\nally syndicated.\nmind. If economic growth cuts the\ndeficit, how come it didn't work for\nMr. Reagan?\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n77\nCOMMENTARY\nThe Washington Times\nTHURSDAY, APRIL 15, 1993 / PAGE G3\nGEORGIE ANNE GEYER\nHow is it that, after all of these\nmechanisms to protect the people's\nQualified hope for\nmonths of military rule, with Father\nexpectations.\"\nAristide in exile in the United States,\nAs for the 5 percent, the extraor-\na solution seems imminent?\ndinarily wealthy elite, who have tra-\nOne secret to what is happening\nditionally backed the armed forces\na solution in Haiti\nis the apparent determination of the\nagainst the people? \"They are\nClinton administration to make a\nchanging their attitude because they\nHaitian settlement its first victory.\nnow understand that the U.S. means\nUnlike in other areas, Mr. Clinton\nbusiness,\" a Western ambassador\nPORT-AU-PRINCE, Haiti\nhausted and frightened at the fact\nimmediately poured interest and,\ntold me. \"But if for any reason they\nerhaps the searing heat is\nthat it has gone on so long.\" Then he\nmore important, tough-mindedness\nperceive that the American adminis-\nP\ngetting to me, but during\nthought for a moment and calmed\ninto the Haitian question. Negoti-\ntration is not keen to see Aristide\nEaster week this year I\ndown a bit, adding the demurrer,\nators such as Mr. Caputo, retired\nback, they could change again.\"\nsensed a messianic expecta-\n\"We're not on the brink of an agree-\nAmerican Ambassador Lawrence\nAnd what about controversial\ntion in the air here. It is almost as\nment but on the path.\"\nPezzullo and Charge d'Affaires\npriest-president Father Aristide,\nthough any moment now the Hai-\nPerhaps at that moment of quali-\nCharles Redmond have assaulted the\nadored by the abysmally poor 95\ntians expect to see their new Amer-\nfied hope, his optimism was tem-\nHaitian military dictatorship with\npercent of the population as a kind\nican \"god\" Bill Clinton carrying a\npered by the popular Haitian Creole\npressures and threats. But they\nof god and abominated by the other\n\"resurrected\" Jean-Bertrand Aris-\nproverb: \"Behind the mountain\nwere also aware of the military's\n5 percent? In a recent talk with a\ntide back to Haiti in his very own\nthere's another mountain.\"\nfears of Father Aristide, whom they\ngroup of us here, Father Aristide in-\narms.\nNevertheless, according to all re-\nconsider the \"leader of the rabble\"\ndicated that he, too, had mellowed in\nSo, all right, the temperature and\nports, the resolute U.N. negotiator,\nin Haiti; and so the negotiations have\nthe last year and a half.\nthe garbage and the despair here do\nDante Caputo of Argentina, returns\nalso focused on providing enough re-\n\"I look with a dialectical vision\ncome to affect one. Yet, finally, there\nto Haiti this week with a \"compre-\nassurances from outside to keep ev-\ntoward what has happened and say,\nis now real reason to believe that the\nhensive package.\" It will encompass\nerybody in line.\n'Let's do it better tomorrow,' he told\nnegotiations for a settlement of the\nsuch an astonishing array of pres-\nOne can glimpse the changes in\nus. \"It is better to learn from my\n\"Haitian problem\" are down to the\nsures and promises to redemoc-\n\"ONCE,I ESCAPED AND MADE IT TO THE GATES OF HEAVEN...\nattitude, even in the hardest-line\npast. I would be a very bad president\nwire.\nratize Haiti and get the military out\ngroups. Would the military agree to\nin the future if I didn't respect also\nPerhaps one Western diplomat\nof politics that, if it works, it could\nBUT MY REQUEST FOR ASYLUM WAS DENIED:\nFather Aristide's return? \"If you\nthose who didn't vote for me. I have\nput the mood best: \"Getting anyone\neasily augur solutions to similar\nfind the right man as prime min-\nlearned a lot in these months.\"\nto negotiate here at all was amazing.\nproblems elsewhere in the world.\nister,\" a ranking and well-informed\nAnother of the sadly cynical Hai-\nGetting them to accept a U.N./O.A.S.\nIn short, the package that has\na total reorganization and profes-\nwhether Father Aristide, a Catholic\nretired military officer told me. \"It\ntian proverbs reads: \"Rocks in the\nmission was amazing. People are ex-\nbeen hammered out by U.N., U.S. and\nsionalization of the military and for\nO.A.S. diplomats would provide for\npriest, would accept an amnesty for\nwould have to be a man who has the\nwater don't know the suffering of\na gigantic $1 billion in aid to rebuild\nall the military officers, who are re-\nconfidence of both sides.\nrocks in the sun.\" If these reports are\nthe Haitian military removing itself\nand institutionalize Haiti. For the\nsponsible for hundreds of deaths\n\"You see, we've got to keep Aris-\ncorrect, conceivably those different\nGeorgie Anne Geyer is a nation-\nfrom politics, for the return of Pres-\nlast two weeks, the package has been\nident Aristide within six months, for\nsince the coup against him 18\ntide so as not to destroy people's\nsufferings are really about to be\nally syndicated columnist.\nmired in the unanswered question of\nmonths ago.\nhope, but you've got to put in legal\nbridged.\nMARTIN ANDERSON\now would you like it if the\nventure capital they are losers, in-\nH\nfederal government de-\nCan the\ncompetents, men who know no more\ncreed that your sched-\nnor less about high techology than\nuled open heart surgery\nyou do or I do.\nwas to be performed by a high rank-\nnever operated before and was not\nlosers\nLosers cannot pick winners in\ning government official who had\nthis game. The notion of any govern-\nment bureaucrat picking winners in\neven a doctor?\nthe race to develop new high technol-\nWell, the idea of allowing govern-\npick\nogy is laughable. They may enter-\nment bureaucrats to pick the future\ntain Walter Mitty dreams of being\n\"winners\" of high technology invest-\nhigh technology mavens, but it is un-\nment may not be as dangerous, but\nconscionable for them to play with\nit is just as foolish.\nThe central issue in the New In-\nwinners?\nour money.\ndustrial Policy (NIP) of the Clinton\nCan you imagine what would hap-\nadministration is: Who does the\npen if Clinton's pickers-to-be left\npicking? People who can pick even a\ngovernment and founded a private\nfew winners are rare. For every new\nventure capital firm? How much of\ntechnology idea that receives finan-\ntheir own money would they invest?\ncial backing there are hundreds,\nThe only difference\nDo you think they could raise 5 cents\nthousands, that never get off the\nbetween the Dukakis\nfrom the rest of us?\nground - almost always for very\nWhat makes the whole $17 billion\ngood reasons.\ndisaster and President\nscheme even more outrageous is\nUnder our current system the\npicking is done by venture capital-\nClinton's NIP is\nthat most high technology entrepre-\nneurs don't need or want the govern-\nists and entrepreneurs, a rare breed\nwho combine the prudence of bank-\n$16.95 billion dollars.\nment's help. True, some business-\nmen like John Scully of Apple\ners, the risk-taking of gamblers and\nComputers, who was formerly a\nthe willingness to invest large\nPepsi-Cola executive, have strongly\namounts of their own money and\nPresident Clinton has promised to\nendorsed the industrial policy idea,\ntheir own time.\nLast year private investors\nback his high tech industrial policy\nshamelessly angling for their piece\nplan - which includes joint ven-\nof federal pork. But most of the real\npoured billions into risky, unpredict-\ntures between government and busi-\nhigh tech entrepreneurs, the ones\nable investments that would make\nness and investing in a national com-\nwho actually invent and build the\nmost Americans blanch. These men\nputer network - with $17 billion of\nmarvels of new technology shower-\nand women are brilliant, bold and\nthe taxpayers' money over the next\ning down on us, would prefer to be\nexpert. Theirs is a small, exotic\nfour years. This means that men like\nleft alone.\nworld. It is no place for dabblers or\nRon Brown, the Commerce Secre-\ndilettantes.\nFor example, in testimony before\ntary, and Robert Reich, the Labor\nCongress on March 25, 1993, T. Rog-\nSecretary, and their staffs will, by\ners, the president of the Cypress\ndefault, become the pickers.\nMartin Anderson, a senior ad-\nSemiconductor Corp. in California,\nviser on the President's Economic\nIn their fields of expertise these\nput it this way: \"As a high-technology\nPolicy Advisory Board during the\npeople are winners. Mr. Brown is a\nexecutive who faces the rigors of the\nReagan administration, is now a\nvery capable politician and Dr.\nmarket every day, I view both the\nsenior fellow at the Hoover Institu-\nReich is a Harvard intellectual and\ndata highway and any subsidy of\ntion at Stanford University.\nhigh-performance computers as the\nwriter. But in the world of high-tech\nmost recent examples of industries\nlining up to feed at the public trough.\nThe men and women of our com-\nCOMING DOWN THE STRETCH, IT'S\npany do not want handouts.\"\nIBM WITH DIGITAL CLOSE BEHIND:\nAPPLE COMPUTER IS MAKING\nThe record of government in in-\nA MOVE ON THE OUTSIDE\ndustrial policy ventures is one of\nunremitting failure. The latest pick\nto go belly-up was the brainchild of\nGov. Michael Dukakis. Called the\nMassachusetts Microelectronics\nRELAX! HAS YOUR\nGOVERNMENT EVER\nCenter, the computer chip-making\nLET YOU DOWN?\nplant built in 1988 was Mr. Dukakis'\nchoice to be one of the next genera-\ntion's technology winners, and he\nlavished the Massachusetts taxpay-\ners' money on it.\nOn Feb. 14, 1993, the Boston\nGlobe announced that the plant had\nbeen mothballed, describing the\nproject as \"a $50 million-plus mon-\nument to high-priced good inten-\ntions gone bad.\"\nINVESTORS\nPUBLIC-PRIVATE\nThey say the only difference be-\ntween men and boys is the price of\ntheir toys. The only difference be-\ntween the Dukakis disaster and\nPresident Clinton's NIP is $16.95 bil-\nlion dollars.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n79\nThe hidden costs of taxes\neople who use tax preparation services know\nis almost a two-thirds surcharge built into the system.\nP\nthat there are more costs involved in taxation\nThe first set of costs Mr. Payne evaluates are those\nthan just the check being written to the Inter-\nincurred by taxpayers in complying with all their filing\nnal Revenue Service. And those running up\nrequirements. There are record-keeping burdens (col-\nagainst the April 15 deadline, who had to take a day off\nlecting records such as receipts and making sense of\nfrom work to see to the careful data entry on their 1040\nthe assembled materials). Then there is the burden of\nand various expense schedule forms, probably see that\nlearning tax requirements (including wading through\ntime as a loss.\ntax forms, instructions and pamphlets, calling the IRS\nBut there are other costs, far less obvious, in the\na hundred times for information, and then in the end\nsystem of income tax collection, burdens that ought to\nfinding a professional tax adviser). The most obvious\nbe considered whenever a politician proposes a new\nburden is filling out the return (filling in the forms,\nprogram funded with fresh tax dollars. If every dollar\ncopying and mailing them). And then there is the time\nraised in income tax imposes 50 cents in additional\nand money spent on long-term tax planning.\ncompliance burdens, then the $19.5 billion in new tax\nEach of these activities has costs, and not just the\nrevenues needed to pay for Bill Clinton's \"emergency\"\ncost of hiring H&R Block. The 10 hours a person spent\nstimulus package will have a hidden extra cost of some\ndoing taxes could have been spent productively. And\n$10 billion. If there were truth in political advertising,\ncompliance costs are just the start: There are enforce-\nMr. Clinton would be talking about his $30 billion\nment costs (both for the auditors and the auditees).\nstimulus package.\nPerversities in the tax code mean distortions in eco-\nThis calculation is based on the assumption that for\nnomic activity that are also costly. And then there are\nevery dollar of tax collected, there is a hidden sur-\nthe time and effort, not to mention diseconomic distor-\ncharge of 50 cents. Actually, the hidden costs are closer\ntions, involved in tax evasion. Add to that the emotional\nto 65 cents per dollar of taxes. James Payne in his\ntoll of worrying about an audit, and one arrives at the\nexhaustive work on the burdens of federal taxation,\nnifty surcharge of 65 cents per dollar of tax. So maybe\n\"Costly Returns,\" breaks down the various costs of tax\nwe should start talking about Mr. Clinton's $32.5 billion\ncollection. When he adds up the tab, he finds that there\nspending package.\nThe mayor and the taxman\nomorrow could be an interesting beginning for\npayments for 13 years to protest \"taxation without\nT\nDistrict taxpayers gullible enough to follow the\nrepresentation.\" But he has had no taxes due. Mrs.\ncounsel of several of the city's leaders, includ-\nKelly was asked the question on a radio show. Her\ning Mayor Sharon Pratt Kelly. On April 1, the\nconvoluted answer boiled down to \"no.\" She said that\nmayor, in the company of Jesse Jackson and several\nher withholdings are so enormous that she'll probably\ndozen labor, religious and civic activists, recom-\nget a refund anyway. In fact, according to the Internal\nmended to District residents that they refuse to file\nRevenue Service, 75 percent of all taxpayers in the\ntheir federal income tax returns.\nMaryland-D.C. area receive federal refunds as a norm.\nAn April Fools' joke perhaps? Not at all. \"Today is\nThe average refund is around $1,000, says Sam Serio,\nApril 1st,\" Mrs. Kelly said, \"and today we're an-\nan IRS spokesman.\nnouncing that the District of Columbia isn't going to\nSo if District residents decide not to file their re-\nbe a fool any longer.\" With that she declared April\nturns, they won't be hurting the IRS, but their own\nStatehood Month and threw down the gauntlet to Pres-\npocketbooks since most will be due a refund. If they\nident Clinton.\ndon't file, they won't get one, and the IRS couldn't care\nProtest in this country is nothing new, of course.\nless.\nEveryone has heard about that business with the tea in\nHowever, if the taxpayer is a member of that 25\nBoston awhile back and what it got for the protesters.\npercent who owes, they have plenty to look forward to,\nMr. Jackson, the city's \"shadow\" senator who was\nMr. Serio says. First, there is a \"failure to file\" monthly\nelected primarily to lobby for statehood, brought up\npenalty of 5 percent per month. And since Uncle Sam\nthat very point. \"We cannot accept the burden of tax-\nknows how to make a mountain out of a small payment,\nation without representation.\"\nhe tacks on interest that varies every three months.\nWell, tax revolts may be in the best tradition of\nRight now, the interest rate is hovering around 7 per-\nAmerica, but the leaders who are advising people to\ncent. As a final gesture, the government adds another\nbreak the law are being somewhat disingenuous. The\nhalf a percent per month as a \"failure to pay\" penalty.\njoke would be on anyone foolish enough to take them\nPerhaps the lawlessness that has gripped the city is\nseriously.\ngetting to the city's leaders. Agitating for full represen-\nThe bottom line is, as always, are these leaders\ntation as a state is a fine activity. But advocating law-\nwilling to follow their own advice? Let's see. Statehood\nlessness won't further that cause. All that is guar-\nlobbyist Charles J. Moreland says he has withheld\nanteed is a visit from the IRS. Now, who wants that?\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n80\nIf this is April 15, it must be tax day\npril 15 is the cruelest day, the one that many\nin the summer or early fall. If the taxes are retroactive\nA\npeople spend paying off the tab the feds have\nto Jan. 1, employees could find sharply reduced pay-\nrun up on $100,000 congressional staffers,\nchecks after Oct. 1.\nethanol welfare checks, assorted bike paths\nWithholding has been much in the news of late.\nand all too much more. The good news is that most\nFormer President Bush reduced withholding last year\npeople probably had a little something left over for\nto put more money in consumer pockets, and for that\nthemselves this year. The bad news is the Clinton ad-\nhe has been much criticized. It means, for example,\nministration wants to take even more away from you\nthat fewer people will be getting refunds and more\nnext year.\npeople will be paying taxes out of pocket.\nThere are other important days on the tax calendar,\nSuddenly people are getting a painful look at just\nhowever. Sometime early next month, the nation will\nhow much government really costs them. And that\nfinally reach Tax Freedom Day, the one the Tax Foun-\ncost, not Mr. Bush's withholding strategies, should be\ndation designates as the day Americans stop working\nthe real object of their complaints. The feds under-\nfor the government and start working for themselves.\nstand that withholding effectively hides that cost. As\nIn 1992, a leap year, Tax Freedom Day was May 2,\nthis newspaper's Rod Dreher put it Wednesday: \"I\nmeaning that the average American had to work the\nremained relatively indifferent to how my tax money\nequivalent of 123 days to pay off his obligation to gov-\nwas spent because it was taken out before the check\nernment at all levels. Today, the foundation is scheduled\nreached my hands. I never deeply felt the loss of in-\nto set Tax Freedom Day for 1993 and, perhaps, to give\ncome because I never really had it.\"\nsome idea of how the Clinton tax plan may affect it in\nExactly. Few people would be indifferent to the bur-\nthe future.\nden of government if they had to sit down and write a\nThen there is Oct. 1. That's the day employers may\ncheck for every penny of their obligation. If you want\nhave to adjust federal withholding amounts from pay-\nto make that obligation smaller, if you want Tax Free-\nchecks to reflect the higher taxes Mr. Clinton is propos-\ndom Day to come sooner, put the tax burden out where\ning, assuming those taxes become law sometime late\neveryone can see it. Get rid of federal withholding.\nbut not everyone gets to pay.\nho could forget President Clinton's harsh\nW\n$400,000. Energy Secretary Hazel O'Leary is seeking\ncampaign threats against the people who\nto shelter gains of up to $900,000 from the taxman.\nmade off with the 1980s, the rich who re-\nNow there are, no doubt, a lot of people who wish\nfused to pay their fair share? As a matter\nthey had the same opportunity. Part of the problem\nof fact, the rich folks in the president's Cabinet could\nwith the capital gains tax is that it locks up old, out-\nafford to forget. While everyone else pays up today, the\ndated investments with confiscatory rates. Say you\nClinton Cabinet is cashing in.\nbought into Widget Corp. at $3 per share and watched\nAs Forbes magazine reminded its readers earlier\nit rise to $50 a share in a few years. Other companies\nthis month, businesspeople-turned-government-\nare now battling Widget for a share of the market, a\nofficials get a tax break available to no one else. When\nbattle that is likely to limit future growth. Other invest-\nthey sell holdings to avoid conflicts of interests, they\nment opportunities beckon, but if you pull out of Wid-\ncan defer taxes on their capital gains as long as they\nget, you will get socked with a massive capital gains\nreinvest the proceeds in Treasury bonds or mutual\ntax. Besides, although the new opportunities are poten-\nfunds. They defer the tax until they sell those replace-\ntially lucrative, they are also enormously risky. Given\nments. But, if they keep the replacement assets until\nthe capital gains tax, it might be better to stay with\ndeath, they avoid the tax completely. At that time, the\nWidget. In short, the capital gains tax discourages new\ncapital gains disappear when heirs assume the assets\ncapital formation and limits the diversification of as-\nat current market value.\nsets. Of course, if you are a member of the Clinton\nThus, Robert Rubin, formerly co-chairman of the\nCabinet, you don't have that problem.\nGoldman Sachs Group and now director of the pres-\nIt's true that Mr. Clinton didn't come up with this tax\nident's National Economic Council, stands to make a\nbreak. The Bush administration did. But Mr. Bush also\nkilling. Last year alone he had at least $30 million in\nsought to cut the capital gains rate for everyone, and\nincome. Forbes reports that he could defer taxes on\nwould have four years ago until Senate Majority\nthe sale of 38 partnerships and two stock holdings. The\nLeader George Mitchell gridlocked the Senate with a\nsavings run in the millions.\nfilibuster.\nLikewise, White House Chief of Staff Thomas\nIt's also true that this sort of tax shelter makes\nMcLarty III sheltered the sale of more than $2 million\ngovernment service more attractive to the Rubins and\nin assets. Roger Altman, deputy secretary of the Trea-\nO'Learys and McLartys of the world. Fine. How about\nsury, has taken advantage of the loophole to protect\nmaking real service, the kind offered by the private\nmore than $200,000 in gains. Commerce Secretary Ron\nsector, more attractive: Let private citizens enjoy the\nBrown protected gains valued between $250,000 and\nClinton loophole, too.\nThe Washington Times\nTHURSDAY, APRIL 15, 1993\n81\nClinton to look at\nnational tax\nWould pay\nhealth-care\nreform bill\nBy Bill Nichols\nUSA TODAY\nA-1\nPresident Clinton will con-\nsider a value-added tax as a\nway to fund health-care re-\nform, the White House says.\nClinton first raised, and re-\njected, a VAT in February.\nBut aides, after a barrage of\nquestions Wednesday, say it\nnow is among the options.\n\"If an argument is made he\nwill clearly listen to it,\" said\nspokesman George Stephano-\npoulos. \"That does not mean he\nhas decided to do it.\"\nThe questions were prompt-\ned by Secretary of Health and\nHuman Services Donna Sha-\nlala, who Tuesday told USA\nTODAY it is being considered.\nA VAT, widely used in Eu-\nrope and Canada, levies a tax\nat various stages in production\nand marketing.\nThe Congressional Budget\nOffice estimates a 5% VAT -\nexcluding food, housing and\nmedical care - would raise\n$217 billion over four years.\nThe health-care task force,\ndue to deliver its report in May,\nis looking at a variety of ways\nto raise the needed billions.\nStill, Hillary Rodham Clin-\nton, who chairs the task force,\nbrushed off a question Wednes-\nday about the VAT.\nThe idea was swiftly criti-\ncized by the National Retail\nFederation. It says the VAT:\nWould be regressive.\nCould add to inflation.\nWould impose a heavy ad-\nministrative burden.\nThe VAT is \"likely to back-\nfire,\" says federation president\nTracy Mullin.\nTHURSDAY, APRIL 15, 1993 USA TODAY\nBut recent polls do find pub-\nlic support for a modest nation-\n1/2\nal tax of some kind to pay for\nhealth-care reform.\nMeanwhile, the debate over\nClinton's $16 billion economic\nstimulus plan, blocked by a\nGOP filibuster, continued.\nClinton said he can only ask\nfor shared national sacrifice if\nhe can promise jobs as part of\nthe bargain.\nBut congressional Republi-\ncans stuck to their guns, plan-\nning 19 public-forums on Satur-\nday to explain their opposition.\nis VAT a 'trial balloon'? 4A\n82\nBack and forth O 1 na onal sa es tax\nC inton says\nidea can't\nChallenge\nbe ruled out\nBy Bill Nichols\nUSA TODAY\nOn Feb. 19. after creating a\nmomentary stir at a town\nmeeting in Chillicothe, Ohio, by\nseeming to raise the possibility\nof a national value-added tax,\nPresident Clinton told report-\ners to settle down.\n\"It is not something that is\nnow under consideration,\"\nBy Gary Hershorn, Reuters\nClinton said of the VAT, a kind\nCLINTON: Young people 'playing by the rules' deserve jobs\nof national sales tax he had\nonly hours before called a\n\"radical change in the tax sys-\nGOP turning the tables\ntem of the United States.\"\n\"If we start considering it,\nI'll tell you. I did not mean to\nwith its own town meetings\nfloat a trial balloon.\"\nOn Wednesday, the White\nBy Bill Nichols\non the verge of being able to\nHouse said something quite dif-\nUSA TODAY\nkill the entire Clinton eco-\nferent - that Clinton will con-\nnomic stimulus package.\"\nsider a VAT as a way to finance\nHouse Republicans, taking\nThe White House, howev-\nhealth-care reform if the ad-\na page from President Clin-\ner, continues to court and\nministration health-care task\nton's playbook, plan to hold\npressure Senate Republicans\nforce presents that option.\n19 town meetings Saturday to\nto try to spring the bill from\nAnd that change has raised\nbash Clinton's $16 billion eco-\nits Senate logjam.\nquestions once more about\nnomic stimulus plan.\nClinton, with Education\nClinton's penchant for retreat-\nClinton has \"turned the\nSecretary Richard Riley and\ning from strongly stated opin-\nWhite House into a television\nLabor Secretary Robert\nions on major issues.\ndish and is transmitting his\nReich in tow, said at a confer-\nIt also focuses on whether it\nmessage across the country,\"\nence on summer jobs that he\nis politically wise to contem-\nsays Rep. Richard Armey, R-\nneeds more jobs to offer\nplate a national sales tax on top\nTexas, saying the GOP must\nyouths as a reward for \"play-\nof the nearly $300 billion in net\nplay by the same rules.\ning by the rules.\"\nnew taxes proposed in Clinton's\nSpeaking for conservative\n\"We cannot go through an-\nfive-year budget plan.\nRepublicans, former con-\nother 10 years when we don't\nBy J. Scott Applewhite, AP\nAny dip in Clinton's personal\ngressman Vin Weber of Min-\ngive these children anything\nREACHING THE AUDIENCE: Labor Secretary Robert Reich\npopularity or suggestions that\nnesota says, \"We stand today\nto say yes to,\" he said.\ndelivers his more-jobs-are-needed message.\nthe costs of his legislative pro-\ngram could outweigh the bene-\nfits could crack the resolve of\ntax increase just a couple of\nhis shaky coalition, says politi-\nAdding it up: How the tax works\nmonths ago\npolitically,\nI\ncal analyst Charles Cook.\nwould call this perilous.'\n\"People are willing to go for\nBeyond the substance of the\nshort-term pain in exchange\nA value-added tax is com-\nEach business would like-\nThat's good if more savings\nVAT, Clinton's seeming turn-\nfor long-term gain, but if you\nmon in Europe and Canada:\nly add the tax to its bill\nleads to more business in-\naround adds another item to a\nraise many doubts, they'll drop\nHow a VAT works. The\nWho ends up paying.\nvestment, as banks lend the\nlist critics say validates his rep-\nhis thing like a hot potato.\"\ntax can be applied to goods\nEconomists say consumers\nmoney consumers save.\nutation for flip-flopping for the\nThe White House made\nand services. For goods, the\nwould foot nearly all the bill\nThe minuses. A VAT\nsake of political expediency:\nclear Clinton isn't endorsing a\ntax is levied at each stage of\nCompetition from abroad\nhits lower-income people\nClinton promised to end\nVAT. But it would not rule it out\nthe production process.\nand consumer sticker shock\nharder than upper-income\nthe\nBush administration's\nbefore hearing the task force's\nA lumber mill might be\nmight prevent companies\npeople, who can more easily\nforced returns of Haitian refu-\necommendations, which are\ntaxed, for example, 5% of\nfrom passing along all the\nabsorb price increases.\ngees, then adopted that policy.\nexpected to include the tax.\nthe difference between the\ntax. But, experts say, con-\nSome of the burden can be\nHe made a middle-class\n\"The president hasn't made\nprice of the timber it bought\nsumer prices would rise.\nrelieved by income tax cred-\ntax cut an early campaign is-\ninal decisions on how to fi-\nand the higher price of the\nThe pluses. A VAT\nits for low-income families.\nsue, then opted for an energy\niance health-care reform\nlumber it sold. Then a furni-\nwould boost federal tax reve-\nAlso, key goods and services\ntax that affects anyone making\nut a VAT or general sales tax\nture maker would be taxed\nnue. (A 5% VAT would raise\ncan be exempt from a VAT.\nmore than $30,000 annually.\nclearly a possible candi-\n5% of the difference be-\nabout $47 billion a year.)\nPresident Clinton has said\nMany gay advocates say\nlate,\" said deputy budget di-\ntween the price of the lum-\nAnd because prices would\nthat if a VAT is enacted, food\nClinton is selling out on his\nector Alice Rivlin.\nber it bought from the mill\nrise, consumers would have\nwould have to be exempt.\npledge to revoke the ban on ho-\nHealth and Human Services\nand the chairs It sold.\nmore incentive to save.\n- Mark Memmott\nmosexuals in the military.\necretary Donna Shalala made\nThe White House argument\nmilar comments Tuesday to\nis that Clinton has the courage\nSA TODAY's editorial board.\nthe argument if it is presented\ncohol taxes more palatable.\nbelieve a VAT can be sold to\nto change his mind when cir-\nWhen the possibility of the\nto him,' said spokesman\nOr the administration may\nthe nation and Congress.\ncumstances warrant.\nx was raised previously in\nGeorge Stephanopoulos.\nbe paving the road for propos-\nBut other Washington ob-\nOthers warn of a backlash.\news reports of the task force's\nThe chorus of administra-\ning an idea Congress has long\nservers are dubious.\n\"Any flip-flop on taxes is a flip-\necret deliberations, however,\ntion voices raising the prospect\nconsidered too radical.\nSays analyst William\nflop that can be very damag-\ne White House said Clinton's\nof a VAT presents the question\nSome in the White House,\nSchneider: \"They would be\ning\" says University of Virgin-\narlier dismissal still stood.\nof whether this is a trial bal-\nciting poll data showing how\nasking for another not only big\nia analyst Larry Sabato.\nWednesday, that changed. \"I\nloon, a method of making other\npassionately many Americans\ntax increase, but a whole new\nsume that he will consider\noptions such as cigarette or al-\nwant guaranteed health care,\ntax on top of what is a record\nNational sales tax, 1A\nTHURSDAY, APRIL 15, 1993 USA TODAY\n2/2\n83\nAbortion issues could trip up health-care reform\nBy Mimi Hall\nment for reproductive rights in\nsays Kush.\nHow to provide the bene-\nUSA TODAY\nAmerica, because we're talk-\nBut abortion-rights activists\nfits if there is no doctor willing\ning about having abortion as a\npromise a fight if abortion is\nto perform abortions in a pa-\nThe Clinton administration\nbasic benefit for every Ameri-\nnot included. Analysts say that\ntient's network, the system of\nis wrestling with abortion cov-\ncan woman,\" says Planned\nleaves Clinton at political risk\nhealth providers expected to\nerage in its basic package of\nParenthood President Pamela\nno matter what he does.\nbe a key part of the reform\nhealth-care benefits, aware\nMaraldo. But \"we know there's\n\"He's made a personal com-\nplan. That could be a common\nthat the explosive issue could\ngoing to be a fight.\"\nmitment about reproductive\nscenario, given the nationwide\njeopardize - or at least stall -\nWith abortion covered, in-\nhealth services and abortion\nshortage of abortion doctors.\ncongressional passage of\nsurers would have to offer the\nservices, and it would be very\nWhat to do about five\nhealth-care reform.\nbenefit to all, including the 37\ndifficult now to exclude cover-\nstates - Idaho, Kentucky, Mis-\n\"When members of Con-\nmillion uninsured people to be\nage for abortion services,\" says\nsouri, North Dakota and Rhode\ngress see this, they will draw\nbrought into the system.\nDrew Altman of the Henry J.\nIsland - that require private\nthe line,\" says David Kush,\nAbortion foes complain that\nKaiser Family Foundation, a\ninsurance companies to ex-\nspokesman for Rep. Chris\nwould force everyone, no mat-\nhealth-care philanthropy.\nclude most abortion benefits.\nSmith, R-N.J., an abortion foe.\nter what their views on abor-\nExperts and activists on both\n\"The federal government\n\"There is going to be a fight.\"\ntion, to indirectly pay for abor-\nsides of the issue say Hillary\nhas no business mandating\"\nClinton said in January that\nMARALDO: 'We know there's\ntions through insurance\nRodham Clinton's health-care\nbenefits, says Doug Johnson of\nhe wanted his health-care over-\ngoing to be a fight.'\npremiums or tax dollars.\ntask force is looking at several\nthe National Right to Life Com-\nhaul to provide \"access to qual-\nAnd they're counting on\nissues on abortion:\nmittee. \"We're saying it should\nTHURSDAY, APRIL 15, 1993 USA TODAY\nity, affordable health care, in-\nBy including abortion bene-\nmany abortion-rights support-\nWhether to explicitly in-\nbe kept optional.\"\ncluding abortion services.\"\nfits in his health-care plan, due\ners in Congress to join their\nclude abortion or to include a\nSays Helen Alvare of the Na-\nAlready, he has fulfilled a\nin mid-May, Clinton would con-\nfight in saying that goes too far.\nvague mandate that all repro-\ntional Conference of Catholic\npromise to lift Republican-era\ntinue efforts to make abortion\n\"A lot of members of Con-\nductive care be covered.\nBishops: \"It will become one of\nabortion restrictions affecting\navailable to all women.\ngress draw the line between\n\"The challenge is how to put\nthe hottest issues, and\nthat's\npoor women and women in the\n\"You could say that this is\nmaking (abortion) legal and\nit in the plan and minimize the\na shame because health-care\nmilitary abroad.\ngoing to be the defining mo-\nrequiring people to pay for it,\"\ndamage,\" Altman says.\nreform is so badly needed.\"\nRussia aid plan to top $30 billion\nBy Johanna Neuman\nHA\ntary Lloyd Bentsen asked the\n\"Russia is now at a critical\nUSA TODAY\nother nations jointly to contrib-\njuncture,\" Prime Minister Kii-\nute $1.5 billion, with $2 billion\nchi Miyazawa of Japan said in\nThe world's seven largest in-\nfrom the World Bank and the\nopening the meeting Other na-\ndustrial nations today unveil a\nEuropean Bank for Recon-\ntions must \"send a clear mes-\npackage of aid for Russia ex-\nstruction and Development.\nsage\" they expect Russia's re-\npected to top $30 billion, in-\nSecretary of State Warren\nforms to succeed.\ncluding an expected $1.8 bil-\nChristopher explained the ra-\nMiyazawa, en route to Wash-\nlion from the United States.\ntionale, saying \"Yeltsin is far\nington for Friday's meeting\nBacking embattled Russian\nsuperior to any of his likely\nwith Clinton, said Japan will\nPresident Boris Yeltsin with\nsuccessors,\" and citing the like-\npledge $1.82 billion - includ-\nmoney as well as words, the\nlihood of \"benign foreign poli-\ning $320 million in grants, $1.5\nTHURSDAY, APRIL 15, 1993 USA TODAY\nU.S. pledge would be over and\ncy\" under Yeltsin, including\nbillion in loans and $100 mil-\nabove the $1.6 billion pledged\nnuclear reduction treaties.\nlion in food and medicine.\nby President Clinton at the re-\nIn another boost to Yeltsin,\nBut Bentsen said Clinton ex-\ncent Vancouver summit.\nforeign ministers from the sev-\npects Japan to do more.\nThe money would come\nen nations - Britain, Canada,\n\"Given the strength of the\nfrom the U.S. foreign aid budg-\nFrance, Germany, Italy, Japan\n(Japanese) economy, I'm sure\net, now at $15 billion, out of a\nand the United States -\nthe president will be urging\n1994 federal budget of $1.5 tril-\nagreed to defer any U.N. action\nthem to participate,\" he said.\n6\nlion. Also proposed: creation of\nto tighten sanctions on Serbia.\nBut Germany told the others\nBy Koji Sasahara, AP\na $4 billion privatization fund,\nRussia, a traditional Serbian\nit had reached the limit of its\nCRAFTING AID PLAN: Secretary of State Warren Christopher is\nincluding a $500 million contri-\nally, votes April 25 on Yeltsin's\nsupport - $39 billion in aid.\nflanked by Japanese Prime Minister Kiichi Miyazawa, left, and\nbution from the United States.\nleadership. Ministers didn't\nRussian Foreign Minister Andrei Kozyrev at a dinner in Tokyo.\nIn Tokyo, Treasury Secre-\nwant to alienate voters.\nYeltsin vote, 6A\nCOVER STORY\nIRS seeks\nless-taxing\nprocess\n'An audit\nBy Janet L. Flx\nUSA TODAY\nshouldn't be a\nFirst, their boat sank. The\nnightmare,'\nsalvage and repairs cost a\nfortune. Then, the economy\nbut some\ntanked, pulling their charter-\nboat business down for good.\ntaxpayers have\nJust when they thought\nlife couldn't get worse, Ben-\nhad just that\njamin and Sylvia Lane of\nBerkeley, Calif., were hit\nwith what every taxpayer\ndreads - an IRS audit. After\nexamining their returns for 1986, 1987 and 1988, the Inter-\nnal Revenue Service ordered them to pay $330,000 in taxes,\npenalties and interest.\n\"We were looking at bankruptcy,\" says Sylvia Lane, \"and\nwe were horrified.\"\nPerhaps only the IRS can inspire such terror. Today, the\nfear of an IRS audit hangs over millions of taxpayers as\nthey rush to finish and mail their 1992 returns by midnight.\nThey worry: Will a deduction come back to haunt me? Will\na math error bring trouble?\n\"You're afraid you'll lose everything,\" says Karen Don-\nnelly of San Diego, who helped her husband reconstruct a\nyear's worth of lost records for an IRS audit. \"But it's the\nIRS, not the audit, that's so scary.\"\nEven the IRS is tired of being the heavy. It wants to cast\nthe audit net more accurately on likely tax cheats. It's also\ntrying to make the audit process less painful for taxpayers.\n\"An audit shouldn't be a nightmare,\" says Michael Killfoil,\nIRS deputy assistant commissioner for examinations.\nEven if you aren't convinced by the IRS's new nice-guy\napproach, you can rest easy until October. That's when the\nIRS starts auditing 1992 returns. Even then, the chances\nyou'll be audited are slim. Just 1 million of the 113 million\nreturns filed last year were selected for audits. \"It's the re-\nverse of winning the lottery,\" says Geoffrey Kregg, a tax\npreparer and former IRS auditor in Imperial Beach, Calif.\nEvery year, the IRS checks on millions of taxpayers with-\nout their ever knowing It. Computers match wage, interest\nand dividend income on their returns with W-2s and 1099\nforms filed by their employers and banks. No error, no\nproblem - so far.\nBut once every four years, the IRS has randomly picked\n50,000 unlucky taxpayers for a grueling line-by-line audit\nPlease see COVER STORY next page\nTHURSDAY, APRIL 15, 1993 USA TODAY\n1/2\n86\nCOVER STORY\nRS tries to shed ogre image in audits\nContinued from 1B\nunder its Taxpayer Compliance Mea-\nBeing audited? Be prepared and be nice\nsurement Program, TCMP for short.\nFrom those 50,000 audits, the IRS\nIf you're ever faced with an audit,\nformation in writing. The audit may\nwith the auditor. Politeness pays.\nlearns what kind of deductions tend to\ndon't panic. Millions of taxpayers\nfocus on one deduction - or many.\nIf you need help, get it. It's smart\nbe taken by taxpayers in different in-\nhave survived without losing every-\nDon't try this at home. If you\nto hire a professional if you're audit-\ncome groups. With that information, it\nthing. Tips for dealing with the IRS:\nmust meet, try to do it at the IRS of-\ned. Only well-prepared taxpayers\ndevelops a secret formula it uses to\nPrepare for an audit in advance.\nfice. If the IRS suspects you're not re-\nshould go it alone. If a preparer did\nevaluate every other income-tax return\nKeep a copy of your 1992 return,\nporting all income, you may not want\nyour return, have that person deal\nfiled. The farther outside the norm for\nalong with every 1099, W-2, receipt\nan auditor to see your fancy digs.\nwith the IRS. Often, preparers will\nyour income your return is, the higher\nand canceled check.\nBring documents. It's your word\ndeal with the IRS for free - some\nyour score. The higher your score, the\nKnow your rights. Get a free IRS\nVS. the IRS's. Your best defense is\ncharge $200 an hour.\nmore likely you are to be audited.\npublication called \"Your Rights as a\ndocumentation of any expenses\nAppeal if you feel you've been\n\"It's top secret,\" Killfoil says. \"Even if\nTaxpayer.\" Read it.\nyou've claimed. A cash-register re-\nwronged. If you don't like what the\nyou knew (the formula), it's impossible\nFind out why you're being audit-\nceipt is good. An itemized bill is bet-\nauditor decides, ask to speak to a su-\nto compute.\" This much seems clear:\ned. When notifying you of an audit,\nter. An itemized bill with a canceled\npervisor. If that doesn't work, you can\nYour return is more likely to be flagged\nthe IRS should tell you what it wants\ncheck attached is better still.\nultimately take your case to court.\nfor an audit if your itemized deductions\nto review. If it doesn't, ask for the in-\nBe nice. Avoid confrontations\nJanet L. Fix\nare considered high for your income.\nRemember, Congress in 1986 eliminat-\ned many of the deductions taxpayers\nwere used to. So it's easier for the IRS to\ntarget taxpayers with lots of deductions.\nFrequent-flier awards may be IRS target\nYour chances of being audited also in-\nCI\nif you file a Schedule C claiming\nIf you don't report frequent-flier\nPlus, frequent-flier programs\nbusiness income or losses.\nawards on your tax returns, you\nhave gotten so big, they're now a\nBut exactly what makes a score sky-\ncould be a tax cheat. But you'll have\nhuge revenue source. Last year,\nrocket is kept a mystery from taxpay-\na lot of company.\nabout 5 million awards were issued.\ners, accountants and IRS auditors who\nThe IRS says awards are taxable\n\"It's a $1 billion windfall that the\nare simply told by higher-ups whom to\nif you earn them from company-paid\n(Clinton) administration is not going\naudit and what to focus on.\nbusiness trips and use them for per-\nto overlook,\" warns Stanley Dale,\nPeter Dowling was audited three\nsonal travel. So far, the IRS hasn't\neditor of Mileage & Points, a fre-\ntimes in three years. The IRS never told\ntried to collect taxes on them be-\nStan Godlewski\nquent-flier newsletter.\nthe South Norwalk, Conn., resident ex-\nTHIRD TIME'S A CHARM? Dowling\ncause it doesn't know what they're\nDespite the Florida audits, spokes-\nactly why he was examined. But Dowl-\nwas audited three times in three years.\nworth. But that could change. IRS au-\nman Henry Holmes says the IRS\ning figures it's because he quit his man-\nditors in Florida recently socked a\nno plans to crack down on travel\nagement-consulting job and started\npeople do their returns right, we\nhandful of fliers with back-tax bills\nawards. But he adds, \"What might\nspeculating in real estate. \"My income\nshouldn't bother them.\"\nafter they sold their awards to their\nhappen down the road? Who knows.\"\nwent from $65,000 to negative $20,000,\"\nThe IRS was scheduled to start a new\nemployer.\nJulie Schmit\nDowling says.\nTCMP this year on 1992 returns. Recog-\nWhatever the reason, Dowling shud-\nnizing it was spending a lot for flawed\nders when he recalls the experience.\ninformation, the IRS had decided to put\nthe IRS wanted to audit his 1990 return,\ntwo,\" he says. \"It took four or five hours\n\"Mention audit,\" Dowling says now,\nonly 25,000 taxpayers through the pro-\nhis friends and family advised him to\nthe first day and two hours the sec\n\"and my eye develops a tick.\"\ngram this year. But the GAO recently\nhire an accountant or lawyer. But \"I'd\nBut Caruso still came out ahead. The\nPlenty of others feel the way Dowling\ncriticized that plan - 90 the IRS says it\ndone my own taxes. Why pay somebody\naudit revealed that the IRS owed him\nc\n\"The audits are abusive. They ask\nwill continue to use information from its\n$800 to handle the audit?\" Caruso says.\n$4,000 because he found a mistake\nfor everything from birth certificates to\n1988 TCMP study and not put anyone\n\"It's part of the IRS training to try to in-\nof his employers made on his W-2. \"Af-\nthe kitchen sink,\" says Mark Bloom,\nthrough the painful TCMP process this\nstill a sense of fear. But I had nothing to\nter all the nitpicking,\" Caruso recalls, \"it\nspok an for the J.K. Lasser Institute,\nyear. Instead, the IRS will try to develop\nbe afraid of.\"\nwas great to tell the auditor, 'You owe\nwhich publishes annual tax guides.\na better way to select returns for audit.\nSo he went to work. He read an IRS\nme $4,000 - plus interest.'\nWeary of the grief, the IRS is trying to\n\"Taxpayers didn't enjoy the process,\npublication called \"Your Rights as a Tax-\nAn IRS audit also proved a b.\ng\nbecome a kinder, gentler bureaucracy.\nand we didn't, either,\" Killfoil says.\npayer.\" And he bought three books on\nfor Brenda Daily of San Francisco. In\nThe tough-guy approach hasn't worked.\nDespite all the fear about audits, tax-\nsurviving an audit. Feeling confident, he\n1987, she and her husband hired a tax\nEvidence gathered by the General Ac-\npayers sometimes fare surprisingly\npacked his records into boxes, grabbed\nattorney to handle the IRS audit of their\ncounting Office and the IRS suggests\nwell. Look what happened to the Lanes'\nthe daily-expense diary he keeps and\n1985 return. He managed to whittle\nthat audits often target the wrong peo-\n$330,000 tax bill. They think the agency\nhauled them down to the IRS office. The\ntheir tax bill to $5,000 from $20,000.\nple. The scoring system is supposed to\ndidn't believe their charter-boat busi-\nbooks told him it was safer to face the\nThen, a few years later, the IRS came\nsnag likely tax cheats, but 5% of all tax-\nness was legitimate. Terrified, they\nIRS on its turf - that way, auditors won't\nback for another audit, after the couple\npayers audited end up getting refunds.\nhired a tax lawyer to face off with the\nsee if you have an extravagant lifestyle,\nhad divorced. She called the same tax\nWhat's more, a small chunk of audits\nIRS - and wound up winning The IRS\nwhich might lead to more questions.\nattorney. One thing led to another. A\nyields the biggest rewards. A quarter of\ngot zilch, Benjamin Lane says. \"We\nFor every question the IRS asked, Ca-\nyear later, she married her attorney -\none percent - 525 - of the 209,506 au-\ndidn't do anything wrong.\"\nruso had an answer - and documents\nFrederick Daily, author of Stand Up to\ndits completed by the IRS in 1992 gener-\nThen there's Phillip Caruso, a Wil-\nto back it up. And the IRS did find a ml-\nthe IRS and the lawyer who saved the\nated 34% - $1.1 billion - of all taxes\nmington, N.C., photographer who takes\nnor error: Caruso had listed his interest\nLanes a fortune.\nand penalties assessed.\npictures used to promote films, includ-\nincome from his individual retirement\n\"I was afraid I'd have the IRS around\n\"A lot of (audits) produce no change\ning Backdraft.\naccount as $650 instead of $750.\nfor life,\" Brenda Daily says. \"Instead, I\nin taxes or very little,\" Killfoil says. \"If\nWhen Caruso learned last year that\n\"It mentally drained me for a day or\ngot him\"\nTHURSDAY, APRIL 15. 1993 USA TODAY\n2/2\n81\nIllness fells juror in King case\nnmates\nSome say\na verdict\nhreaten\n'not close'\nhostage\nBy Sally Ann Stewart\nUSA TODAY\nOhio sends in\nLOS ANGELES - The judge\nin the Rodney King beating tri-\nNational Guard\nal triggered a new round of\nspeculation Wednesday when\nhe summoned lawyers and de-\nBy Joyce Harris Jones\nfendants to court.\nUSA TODAY\n\"You could hear the hearts\nbeating in there,\" says Dan Ca-\nGov. George Voinovich sent\nBy Chris Kasson, AP\nplis, lawyer and TV commenta-\n500 Ohio National Guard\nCURIOUS: Mary Hoover and\ntor for several NBC stations.\ntroops Wednesday to a maxi-\nher children, Christa and J.B.,\nBut U.S. District Judge John\nmum security prison in Lucas-\npeer at the prison. Hoover's\nDavies quashed hopes for a\nville after inmates threatened\nhusband, a fire chief, has been\nverdict when he said one of the\nto kill one of eight guards held\nassigned duty in the prison. Of-\njurors was ill and the panel\nhostage since Sunday.\nficials say he's not a hostage.\nending deliberations early.\nAfter the inmates' deadline\nJurors are deciding whether\n1, authorities said they\nfour police officers intent\ncould not confirm the condi-\nly violated King's civil rights\ntion of the hostages.\ntwo years ago.\nBut negotiations continued,\nCleveland\nDavies didn't say which of\nand authorities sent in food -\nOhio\nthe 12 was sick, but he said the\ntuna, cheese, sandwich meat,\njuror went to a doctor.\npeanut butter, fruit and bread\n71\nKCBS-TV said a female juror\n- along with water and medi-\nhad stress-related hives but\ncine for two hostages.\nCincinnati\nwould be back today for the\n0\nSupplies and electricity had\n40\nsixth day of deliberations.\nbeen withheld since the siege\nBy Gary Gardiner, AP\n\"I think it may mean that ju-\nbegan on Sunday.\nRIOT GEAR: Ohio National Guard troops dressed in riot gear as-\nmiles\nrors are not close to a verdict,\"\nDelores Brown, spokeswom-\nsemble Wednesday at the Scioto County Fairgrounds before\nLucasville\nsays Kristin Jeannette-Meyers,\nan for the prison, said negotia-\njoining law-enforcement officers at the Lucasville prison. The\na lawyer covering the trial for\ntions were active and continu-\nGuard was activated by Ohio Gov. George Voinovich.\nUSA TODAY\ncable's Court TV. \"If they were\ning at the 22-acΓe facility, 70\nnear to a decision, wouldn't\nmiles south of Columbus.\nscrawled on a banner hung\nOhio Corrections Director\nlocal life.\nthey have just hung in there?\nThe troops joined State High-\nfrom a window.\nReginald Wilkinson also re-\nThe elementary, middle and\nThe wait is raising specula-\nway Patrol and corrections of-\nThe inmates gave officials\nquested Lanson Newsome, a\nhigh schools have been closed\ntion the jury may be\nficials already on the scene.\n3½ hours to meet 19 demands,\ndeputy commissioner at the\nto 1,241 students since the cri-\nlocked. \"If it's a hung jury, it's\n\"It's a precautionary mea-\nwhich, according to published\nGeorgia Department of Cor-\nsis began because roads to the\nstill a victory for my client,\"\nsure,\" says Brown. \"The high-\nreports, included the dismissal\nrections, to help negotiators.\nschools run too close to the\nsaid Ira Salzman, lawyer for\nest priority of the governor,\nof Warden Art Tate and most\nNewsome, 48, helped quell\nprison, says Superintendent\nsuspended Sgt. Stacey K\nprison officials and other law\nunit supervisors, better jobs for\ndisturbances at the Georgia\nDouglas Booth.\nShould the jury deadlock, de-\nenforcement agencies is to\nblack inmates and contact with\nState Prison in Reidsville in the\n\"Until it's over, we're proba-\nfense lawyers don't expect a\nminimize the loss of life.\"\nthe media. Prison officials\n1970s and at Rivers Correction-\nbly are not going to go in,\"\nretrial. Prosecutors haven't\nSeven inmates have died, all\nwon't talk about demands.\nal Institution in Milledgeville in\nBooth says.\nsaid what they would do.\npresumably killed by other in-\nThe only injury Wednesday\n1989. He was also part of a Na-\nSchool officials even post-\nUniversity of Southern Call-\nmates, officials say. An esti-\noccurred when a law enforce-\ntional Institute of Corrections\nponed the Monday opening of a\nfornia law professor Erwin\nmated 450 prisoners are barri-\nment helicopter crashed. The\nfact-finding team sent into the\nnew high school one-half mile\nChemerinsky says it's too\n/\ncaded in a cell block.\npilot and a passenger were\nMontana State Prison after ri-\nfrom the prison. Instead, 40 to\nto talk of a deadlock.\nThe threat to kill a hostage\nslightly hurt; an officer broke\nots there in 1991.\n60 family members of the hos-\nThe jury in last year's trial\nwas spotted midmorning.\nhis leg running to the crash.\nThe siege is also disrupting\ntages have been staying there.\ntook seven days to acquit the\nofficers on all but one charge.\nAlso Wednesday:\nJesse Jackson called for\n\"a renewed commitment to\njustice and disarmament\" by\nthe Clinton administration. He\ntold USA TODAY \"Rodney\nKing is a symbol of a deeper\nmalady in the Justice De 1-\nment. We need to assure peo-\nple police brutality will end.\"\nKoon and Salzman arrived\nat court wearing Groucho\nMarx glasses and mustaches.\nA helicopter practiced\nlanding on the courthouse roof.\nDefense lawyers say they've\ngotten death threats and have\nmet with U.S. marshals about\ndeparture after the verdicts.\nTHURSDAY\nA\nspokesman said Califor-\nAPRIL\nnia Gov. Pete Wilson and Da-\n15,\n1993\nUSA\nvies have talked frequently\nTODAY\nabout how to release the ver-\ndicts, and there's no big\nfor holding the verdicts after\nthey're reached.\nPolice, residents wait, 8A\n38.\nProbe of jail deaths wins praise\nBy Mark Mayfield\nand called for a federal probe.\nthan suicide.\"\nUSA TODAY\nA3\nAll of the hangings were ruled\nThe last comprehensive Justice Depart-\nsuicides by Mississippi state\nment count found 284 suicides by local-jail\nCivil rights leaders Wednes-\npathologists, but the families\ninmates in the USA in 1988, nearly all by\nday praised Attorney General\nof some dead prisoners are\nhanging But prison experts say hundreds\nJanet Reno's order of a feder-\nquestioning whether the\nof suicides may have gone uncounted. A\nal probe into dozens of hang-\ndeaths were actually slayings,\nnew report is expected this year.\ning deaths in Mississippi jails.\ncovered up by officials.\nIn Mississippi, the parents of the dead\n\"We're excited about it. It\nAt the least, they charge\nprisoners called the federal investigation a\nshows she means business,\"\nthat conditions in the jails and\nmajor step in resolving the troubling ques-\nsaid the Rev. Joseph Lowery,\nneglect led to suicides that\ntions about the hangings.\nhead of the Southern Christian\nUSA TODAY\ncould have been prevented.\n\"We're just hoping it will be a thorough\nLeadership Conference. \"Mis-\nRENO: Questions\n\"Inmates are supposed to be\ninvestigation and a truthful one because I\nsissippi is not alone. Hopefully\nnumber of deaths\nprotected in jails, even from\nknow that my son was murdered,\" said Es-\nthis investigation will lead to a\nthemselves,\" said Lowery.\nther Quinn, mother of Andre Jones, 18.\nlook at this problem in many other states.\"\nJames Ingram, Mississippi's public safe-\nJones, a black youth from Jackson,\nReno directed the Justice Department\nty commissioner and a former FBI agent,\nMiss., was arrested on misdemeanor traf-\nto investigate the \"suicide\" hanging deaths\nsaid Wednesday his office will cooperate\nfic charges Aug. 22. A few hours later, he\nof 47 prisoners in local jails and state pris-\nwith the federal probe.\nwas found dead in a Simpson County jail,\nons during the past six years. \"How could\n\"If any other evidence is uncovered,\nhanging by his shoelace. His death brought\nthat many people die?\" she asked.\nwe'll be pleased to follow the trail,\" said\nnational attention to the suicides.\nLast month, the SCLC and a coalition of\nIngram. But \"we've looked at these jail\n\"We can't really feel at peace until my\nother groups held hearings on the deaths\nhangings and we have no evidence other\nson has been vindicated,\" said Quinn.\nFear of rape in jail delays\nKoresh\nsurrender\nBy Mark Potok\ncles on the Branch Davi-\nphone. He said the cult\nists dead, he said he would leave after\nUSA TODAY\ndians in the Waco Tribune-\nleader is working on a reve-\nradio stations broadcast a 58-minute\nHerald quoted several for-\nlatory manuscript about\nsermon. He reneged, saying he was\nWACO, Texas A key obstacle to\nmer members as saying\nthe \"seven seals\" discussed\nawaiting a message from God.\ncult leader David Koresh's surrender\nKoresh had sex with girls\nin the Bible's book of Reve-\nLast week, Koresh told DeGuerin he\nhas been his fear of being raped in pris-\nas young as 12.\nlations, which are said to\nwould leave at the end of the Davidian\nhis lawyer said Wednesday.\nKoresh has told male fol-\nherald the end of the world.\nPassover, Tuesday. He later told the\n\"Wouldn't you be concerned if some-\nlowers he had rights to\nDeGuerin said Koresh\nFBI he had made no promises.\nbody said you're going to be identified\ntheir women and has as\nwants his manuscript given\nIn an interview, DeGuerin said Kor-\nand publicized as a child molester?\"\nmany as 19 \"wives,\" for-\nto two religious scholars.\nesh's concerns about prison rape had\nasked lawyer Dick DeGuerin. \"These\nmer members have said.\nThe attorney said Kor-\nbeen allayed after DeGuerin spoke to\nconcerns about what would happen in\nHe reportedly kept a\nReuters\nesh has promised to surren-\nMcLennan County Sheriff Jack Har-\njail were raised early on.\"\n\"House of David\" -\na\nKORESH\nder when the work is com-\nwell, a participant in negotiations.\nMany prison inmates are known to\ngroup of young girls who\nplete and that he expected\n\"Sheriff Harwell has assured me he'll\ndespise child molesters. Frequently,\nwore Star of David necklaces signifying\nit would take \"at least a week.\"\ntake all measures necessary to ensure\nmolesters are raped by other prisoners.\nthey were future Koresh wives.\nBut Koresh has made promises be-\nthe safety\" of prisoners when the 47-\nKoresh hasn't been accused officially\nAlso Wednesday, DeGuerin spoke\nfore. Two days after the raid that left\nday-old standoff ends, DeGuerin said.\nof child molestation. But a series of arti-\nwith Koresh for about an hour by tele-\nfour federal agents and at least two cult-\n\"David has confidence\" in Harwell.\nGonzalez, who frequently\nraps the Fed for being too se-\ncretive, said Wednesday:\nThere are 34 staff mem-\nGonzalez:\nbers at the Fed's board of gov-\nernors in Washington who will\nearn more than $125,000 this\nFed biased\nyear. One is a woman and one\nis non-white.\nAt the 12 Fed district\nin hiring\nbanks, 82 staff members earn\nmore than $125,000 a year.\nFourteen are women and three\nBy Mark Memmott\nare non-white.\nUSA TODAY\nFed Chairman Alan Green-\nspan has said the Fed has trou-\nThe Federal Reserve \"con-\nble recruiting and retaining fe-\ntinues to exclude women and\nmale\nand\nminority\nminorities from almost all its\nprofessionals because of com-\ntop positions\" the chairman of\npetition from the private sec-\nthe House Banking Committee\ntor, where salaries are higher.\nsaid Wednesday.\nGonzalez also criticized the\nAnd Rep. Henry Gonzalez,\nFed for planning 4.8% average\nD-Texas, called on President\nsalary increases for Washing\nClinton \"to urge the Federal\nton staff this year.\nReserve to comply with your\nplans to make the government\nopen to all Americans.\"\nThe independent Fed must\n\"be made to understand that\ndiversity and competence can\ngo hand-in-hand,\" Gonzalez\nwrote in a letter to Clinton.\nFed spokesman Joseph\nCoyne said Wednesday that of-\nficials were aware of the letter\nTHURSDAY, APRIL 15, 1993 USA TODAY\nand had no comment.\nThere was also no immedi-\nate response Wednesday from\nthe White House.\n89\nELSEWHERE IN THE WORLD\nWASHINGTON\nA QUICK LOOK AT WHAT'S GOING ON IN THE NATION'S CAPITAL\nTsongas: Reforms\nneed doctors' views\nFormer presidential candidate Paul Tsongas on Wednes-\nday said the Clinton administration should take doctors'\nconcerns into account to make health-care reform succeed.\nHe said he would have advised the administration to\nbring groups such as the American Medical Association into\nQatar News Agency via Reuter\ndiscussions early so they have an emotional, as well as a\nTREATED LIKE ROYALTY: George Bush and Sheik Jaber\nal-Ahmed al-Sabah, right, the emir of Kuwait.\nfinancial, stake in making reform work.\n\"If you set up a system\nwhere\ndoctors feel they're imposed upon,\n'Operation Love Storm'\nparticularly because they've not\nbeen included in negotiations, you\ngreets Bushes in Kuwait\nthen have thousands upon thou-\nsands of physicians who have no\nWhirling sword dancers, flower-bearing girls and thou-\nself-interest in the system work-\nsands of cheering children greeted George Bush on\ning\" Tsongas said. \"And that's like\nWednesday as Kuwaitis launched \"Operation Love Storm\"\nhaving termites in your system.\"\nto welcome the man who helped liberate their country.\nThe American Medical Associa-\nThe party started as soon as a chartered blue and white\ntion unsuccessfully asked for rep-\nKuwaiti Airways jetliner landed, bringing the former p\nresentation on Clinton's health-\ndent, his wife, Barbara, and other guests on his first visit to\nBy Tim Dillon, USA TODAY\ncare task force.\nthe oll-wealthy emirate.\nTSONGAS: Doctors\nTsongas, who has been treated\nThe former president who organized Kuwait's liberation\nshould be 'allies.'\nfor lymphoma with a bone marrow\nfrom Iraqi troops in 1991 took on a rock star aura as police\ntransplant, recently completed a\nand teachers restrained children from running out to try to\nmonth-long radiation treatment for another recurrence.\ntouch his car. Kuwait newspaper columnists dubbed the fes-\nWorking part time for his Massachusetts law firm and\ntivities \"Operation Love Storm.\"\npart time with former New Hampshire senator Warren\nAs president, Bush assembled the 32-nation Western and\nRudman on reducing the deficit, Tsongas has also signed on\nArab military coalition that defeated the Iraqi forces. The\nwith a group of hospital and pharmaceutical company exec-\nBush family is staying at the emir's Bayan Palace, on the\nutives called the Healthcare Leadership Council to endorse\ncapital's southern outskirts.\nthe managed competition form of health reform.\n\"This group should be seen as a group of allies,\" in the\nAUSCHWITZ\nNUNS:\nA\ngroup\nof\n14\nCarmelite\nnuns\nis\nWhite House discussions, Tsongas said. \"There hasn't been\npreparing to leave the convent at the former Auschwitz\na heck of a lot of reaching out.\"\n- Leslie Phillips\nNazi death camp in Poland after an appeal by Pope John\nCONSERVATIVE ASSESSMENT: On President\nPaul II, officials said. The pope's letter follows more than a\nyear of tension between the Catholic Church and Jewish\nClinton's 85th day in office, conservatives panned his per-\ngroups, which want to preserve the camp as a Holocaust\nformance at a National Review forum. Said William Ben-\nmemorial. The World Jewish Congress threatened to boy-\nnett, a possible GOP candidate in 1996: \"He is talented, he is\ncott next week's commemoration of the 50th anniversary of\nvoluble, he is personable, but the American people increas-\nthe Warsaw Ghetto uprising, the rebellion of Polish Jews\ningly have the feeling he cannot be trusted. He loves\nagainst Nazi occupiers, unless Catholic leaders expedited\ngreat big government and doesn't think we have enough of\nit. He loves taxes and doesn't think we have enough of\nthe closing of the convent. (Holocaust museum, IA, 2A, 5A)\nthem.\" Bennett had nicer things to say about first lady Hilla-\nMIDEAST SUMMIT:\nry Rodham Clinton: \"Overall, an asset,\" he said, saluting her\nAfter their Wednesday summit in\nthe Egyptian town of Ismailia, Israell Prime Minister Yitz-\nwork running the health-care task force.\nhak Rabin and Egyptian President Hosni Mubarak ex-\nGAY MARCH: President Clinton is likely to miss the up-\npressed hope that Middle East peace talks can resume in\ncoming gay and lesbian march on Washington, making a\nWashington April 20. Israel appeared to end its ban on nego-\ntiating with Palestinians who live in annexed East Jerusa-\nrare weekend trip to attend a Senate retreat in Jamestown,\nlem when Rabin indicated Israel might allow Jerusalem-\nVa. Communications director George Stephanopoulos said\nbased Faisal al-Husseini to sit at the negotiating table. The\nClinton was likely to attend the retreat for at least part of\nthe April 24-25 weekend. Stephanopoulos said Clinton, who\nIsraeli government's previous position: allowing negotiators\nhas long been reported unlikely to attend what could be a\nfrom East Jerusalem might give the wrong impression that\nthe annexed territory was up for negotiations.\npolitically troublesome event, would look for other ways to\nmark it, such as by sending a written message or meeting\nITALY CORRUPTION: Former Italian prime minister\nwith homosexual leaders at the White House.\nGlulio Andreotti appeared before Italy's Senate to answer\nPRESIDENTIAL COMICS: President Clinton con-\ncharges that he had colluded with the Mana. The country is\nfessed at a summer jobs conference that he botched his first\nembroiled in a widening scandal over political corruption.\nbusiness deal when he was 13 years old, though he didn't\nknow it until years later. Clinton said he set up a comic book\nstand and \"made more money than I'd ever had in my life\"\nselling off two trunks of comics. \"If I'd saved those trunks,\nthey'd be worth $100,000 today,\" he joked, a reference to\nthe high prices of some old comics.\nTHURSDAY, APRIL 15. 1993 USA TODAY\nYeltsin to resign\nif voters fail him\nBy Jack Kelley\nthe president will take more\nUSA TODAY\ndecisive action,\" Yeltsin said.\nBut many aren't sure\nMOSCOW - Russian Pres-\nwhether Yeltsin can win the\nident Boris Yeltsin said\nsupport of 50% of all eligible\nWednesday that he'll resign if\nvoters - not just those who\nhe loses an April 25 vote of\nactually vote - the standard\nconfidence and citizens re-\nset by the Congress.\nfuse to hold early elections.\n\"It's certain people want\nAt a campaign stop in Mos-\nearly elections, but the big\ncow, Yeltsin told student sup-\nquestion mark is Yeltsin,\"\nporters, \"You are being asked\nsays political analyst Anatoly\nto choose not between the\nPorokhovsky. \"No one is will-\nCongress and the president.\ning to predict the outcome of\n\"The choice is between two\nthat race.\"\nstrategies: Will we continue to\nRecent polls show barely\nmove forward or put our-\n50% of the electorate will\nselves in the hands of those\nvote in the referendum. Of\nwho want to roll back re-\nthose, 43% say they'll back\nforms?\"\nYeltsin. On Wednesday, Yel-\nYeltsin's power struggle\ntsin would not say whether\nwith Russia's hard-line Con-\nhe'll resign immediately if he\ngress of People's Deputies -\nloses or wait until presiden-\nwhich opposes his economic\ntial elections in 1996. Also:\nreforms - comes to a head\nTwelve Communist lead-\nat an April 25 national refer-\ners accused of plotting the\nendum.\nAugust 1991 Soviet coup\nVoters will be asked if they\nopened their trial by chal-\napprove of Yeltsin's leader-\nlenging the authority of Rus-\nship and reforms, and if they\nsia's Supreme Court to hear\nwant early elections for the\ntheir case.\npresidency and the commu-\nThe defendants, including\nnist-dominated Congress.\nformer Soviet prime minister\nWednesday, Yeltsin vowed\nValentin Paviov and KGB\nto accelerate his reforms -\nchief Vladimir Kryuchkov,\nwhich led to 2,600% inflation\nare accused of treason and\nlast year - introduce a new\ncould be sentenced to death if\nconstitution and fight growing\nfound guilty. The trial is ex-\ncorruption.\npected to last several weeks.\nHe also threatened to sack\nRussian officials said last\nVice President Alexander\nweek's blast at a Siberian nu-\nRutskoi, a foe who has openly\nclear reactor released small\ncriticized Yeltsin's reforms.\namounts of plutonium, but\n\"If there is support for the\nnot enough to warrant new\npresident in the referendum,\nsafety measures.\nTHURSDAY, APRIL 15, 1993 USA TODAY\n91\nClinton too slow on L.A.\nThe Rev. Jesse Jackson\non Wednesday talked with\nWhite House aides about his\nappeal to President Clinton\non Los Angeles and the need\nfor an urban initiative. His\nremarks here were edited\nfrom a subsequent meeting\nwith USA TODAY's editorial\nboard.\nAn appeal to Clinton\nI wrote President Clinton an ap-\npeal about a month ago to assume\nan urban policy initiative to begin\nto shift focus away from the court-\nroom to the abandoned areas\nwhere rising tension was evident.\nBy H. Darr Beiser, USA TODAY\nMy feeling was unless he\nmoved early on, our destinies\nwere in the hands of 12 jurors\nEnd the brutality\nwho we don't know and who are\nwithout accountability.\nThere have been 47,000 cases\nple's humanity, and they simply\nI urged the president again that\nof police brutality which have\nlashed back. Jackie (Jackson's\nwe meet to talk this through be-\nbeen registered at the Justice De-\nwife) and I have three boys. All\ncause there's this heavy emphasis\npartment level since 1986, ac-\nthree have looked down the bar-\non law and order and almost no\ncording to Rep. John Conyers'\nrels of the guns of police.\nemphasis on justice and jobs.\ncommittee on criminal justice.\nSo my first appeal is to Attor-\nSince 1 had sent the letter a\nThe major rebellions in Watts\nney General Janet Reno and L.A.\nmonth before, White House chief\nand Detroit and Chicago and\nPolice Chief Willie Williams to as-\nof staff Mack McLarty had to ad-\nNewark were never precipitated\nsure people that the police brutal-\nmit the circumstances would've\nby raw poverty - as in there are\nity in our country will end. That is\nbeen different if they had taken\nso many people unemployed,\nas reasonable as saying lynching\nthe initiative a month ago, but\nthey exploded. In each instance,\nwill end. Police brutality must\nnow they're in the red zone.\naccording to the Kerner Commis-\nend. If there are any violations,\nThey, like everybody else, are\nsion report, and since that time, it\ndial 1-800-JUSTICE. That will\nlocked into the disposition of the\nwas always some act of humilia-\nend. It's illegal. It's immoral and\njury. If they take too high a profile\ntion that finally took away peo-\nit's provocative.\nnow, they can be accused of inter-\nfering with the process. If they do\nnothing, they can be accused of\nhaving waited too late.\nMajor urban policy statement needed\nSo, like everybody else, they're\nreduced to spectators with some\nRebuild L.A. got kicked off with\ndamentally, there is no plan.\nfront-side preparation to protect\nlots of hype. They say we need\nThis is the moment for a major\nthe innocent from a social explo-\n75,000 to 90,000 jobs. It created\nurban policy statement. This is\nsion.\n5,000, many of those grocery\nthe moment to save urban Ameri-\nThat's why early on, in addition\nstores. Grocery stores come when\nca.\nOn President Clinton's\nto assuring people of justice, there\nyou have a predictable base of\nstimulus package, it is a contra-\nmust also be an assurance of re-\nshoppers based upon support\ndiction to be a fiscal conservative\nducing easy access to guns and\nchecks, in many instances. Not\nand not support it. The stimulus\ndrugs, since the civilians are now\none new plant has been built in\npackage will save money, create\nmore heavily armed legally than\nthe last year. There's still 45% to\njobs and taxpayers, which is all\nthe police. It cannot come up as\n50% unemployment for black and\nrelated to the welfare burden. It is\njust an anti-police situation. Peo-\nHispanic youth. There is no devel-\ngoing to cost more to pay people\nple need police. They don't need\nopment bank. Forty percent of\nto not work than to pay people to\npolice brutality, but they need po-\nthose in kindergarten do not ex-\nwork. So we need a far bigger\nlice.\npect to finish high school. So, fun-\nstimulus package.\nTHURSDAY, APRIL 15, 1993 USA TODAY\n1/2\n92\nDealing with hopelessness\nWhen Congresswoman Maxine Waters and I stayed\nAdult supervision, organized recreation, disciplined\ndown in the Imperial Courts housing projects last\nhours, balanced meals, doctors, lawyers, recreation,\nyear, I talked with kids and their parents all night\ntelephone, television. So something has gone awry\nlong Some of them, for three generations deep, had\nwhen there's more relief and security in jail than in\nnot seen anyone finish high school. None of them had\nthe community, and it costs SO much more.\nan insurance policy or ever owned a piece of land and\nAnd when people lose family stability and hope for\nhad never filled out an application to college. And\nhaving a job and people become idle, what was once a\ntheir parents, once their kids got to the downtown ju-\n[temporary] problem\nbecomes a [lasting] condition.\nvenile detention center, were relieved that they were\nProblems have deteriorated into conditions. Solutions\nless likely to be killed. Now I went to Dorsey High, and\nand visions need [to offer] healing. Many people now\nthere were around 5,200 kids there. The detention\nare using drugs as anesthesia for their pain. Guns con-\ncenter had around 34,000. They spend about six or\ntrol their territory. It's a substantial deterioration, thus\nseven times more to jail them than to educate them.\na kind of spiritual surrender. Young people don't look\nThat's when I came up with the notion that for many\nforward to living to become 20, don't dream of a fam-\nof them, jail is a step up. Once they're in jail, there are\nily and vacation. Many of their dreams have been\nno more drive-by shootings. Once they're in jail, it's\ncrushed\nThere is a spiritual surrender and a kind\nwarm in the wintertime, cool in the summertime.\nof ethical collapse.\nComparing King and Denny cases\nRussia parallel?\nWhat people saw the first time\nis four young blacks left their\nPart of the urgency to meet\nwas that those who beat Rodney\nhome and saved Denny from\nwith Boris Yeltsin and why Secre-\nKing walked. The assumption is\nthem and took him to the hospital,\ntary of State Warren Christopher\nthese guys [accused of beating\nand a black doctor performed\nis meeting with the \"big seven\"\ntruck driver Reginald Denny]\nsurgery on him. And then there's\nright now is because we fear\nmay get some time. That would\nall the black-Korean conflict and\nsomething explosive is going to\nbe that kind of black/white com-\nall the anguish behind how the\nhappen unless we move. So we're\nparison that has no regard for the\nHaitians have been treated. Well,\nnot having a voluntary rebuild-\ndetails. It's just like one group\nbefore the Supreme Court, the\nMoscow plan. We know that you\nwalks; another group goes to jail.\nguy arguing the case for the Hai-\nrelieve fears with hope, and prob-\nI don't want to ask the press to\ntians was Harold Koh, a Korean-\nably with resources.\nChristo-\nalter its basic character, but there\nAmerican lawyer. That part has\npher says we must put forth a\nare some hopeful stories to be\nto be told, too.\nplan of security, not charity, to\ntold. Young people should not\nIt's almost as if the media have\nease the pain of Russian children\nconclude all whites are racist on\ntheir own need.\nNo riot and\nand the unemployed for health\nthe basis of the Rodney King beat-\ntheir media budgets will be\ncare and housing. That we must\ning. After all, had not George Hol-\nmessed up. You've got all these\nprovide for students, business\nliday (who is white) filmed it and\npeople you wouldn't let take off.\npeople and scientists free market\ntaken it public, we would never\nThey're all dressed up and there's\ntraining.\nknow Rodney King ever existed.\nno party? Since you all are look-\nNever heard of that for urban\nIt seems to me that you all have\ning for something to do in the\nAmerica. We must provide for\nnot projected him enough. Now\nmeantime, there really are three\nthem long-term aid, trade, credits,\nsince that time, he's had threats\nstories that say something about\nindustrial conversion and the re-\nand has bodyguards. The revul-\nthis idea. The redemptive men-\nbuilding of their infrastructure.\nsion against him by whites is tell-\ntion of this to me is George Holli-\nWe know how to rebuild cities.\ning On the other hand, four young\nday, and the four blacks, and the\nWe're doing one right now in Mos-\nblacks beat Denny and should not\ndoctor who saved Denny, and\ncow.\nWe must take the aban-\nhave done it. They admit them-\nKoh. Only the most angry don't\ndonment of urban America just as\nselves they shouldn't have done it.\nwant to hear those examples be-\nseriously, and I'm convinced that\nPresident Bush referred to them\ncause it messes with their simplis-\npeople are capable of being re-\nas \"savages,\" trying to appeal to\ntic view of white/black, black/\nvived. People's hopes can be re-\nwhite fear. What's not focused on\nbrown.\nvived if there's a plan to do SO.\nTHURSDAY, APRIL 15, 1993 USA TODAY\n2/2\n93\nDe-demonizing Iraq\nOn another subject, USA TODAY\nUnderstandably, the Clinton admin-\nfinds a need for thoughtful new\nistration is reviewing its regional policies\npolicies In the Persian Gulf.\nwith great caution.\nThe president has tried to depersonal-\nAfter the gulf war, President Bush au-\nize the USA's relationship with Iraq,\nthorized $15 million for a clandestine ef-\nstating that its regime will be judged by\nfort to overthrow Iraqi President Sad-\nits actions, not its bombast. But beyond\ndam Hussein. A year later, he raised it to\nthat, it's hard to change foreign policy,\n$40 million. Now, reports say President\nand wrong to change it abruptly.\nClinton will cut it to $20 million.\nThe goals are easy enough. Baghdad\nSuch uncertainty - indeed, the very\nmust comply with the U.N. resolutions.\npresence of the campaign itself - sug-\nTehran must abandon its nuclear quest.\ngests that Iraq, like Iran, continues to\nAnd both capitals must be persuaded to\nconfound Washington policymakers.\nleave their neighbors alone.\nPartly, the problem is that the region's\nBut such simple ambitions are desper-\nleaders stir deep emotions. Bush called\nately hard to realize. They require deli-\nSaddam \"worse than Hitler,\" making a\ncately crafted new policies that promise\nbalanced approach almost impossible.\neconomic aid as well as economic hurt.\nWhat policy can accommodate Hitler?\nClinton was right to abandon the last\nNor can Iraq be looked at in isolation.\nadministration's crude rhetoric. He\nThe growing power of neighboring Iran,\nshould find it easy to abandon the crude\nwhich is rebuilding its army, fomenting\noverthrow program, too.\nterrorism and seeking nuclear weapons,\nThey are the same thing - clumsy\ncomplicates U.S. policy.\ngestures of no good purpose.\nTHURSDAY, APRIL 15, 1993 USA TODAY\n94\nValue-Added Tax\nIs Reconsidered\nA,\nHealth plan: White House takes another look at levy\nto help pay for universal care. It would potentially hit\nhardest at the poor and the middle class.\nBy EDWIN CHEN, TIMES STAFF WRITER\nWASHINGTON Anxious to find new money to pay for sweeping\nhealth care reforms. the White House is taking another look at a national\n\"value-added tax.\" a potentially controversial levy that President Clinton\nappeared to have ruled out in February. Administration officials said\nWednesday.\nThe Administration is drawn to\nthe idea by its simplicity and its\npotential for helping pay the enor-\nmous sums needed to guarantee\nhealth coverage for all Americans.\nSources said that White House\nanalysts also were intrigued by a\nnationwide poll last month which\nfound that 58% of the public would\nsupport a 3% value-added tax if it\nwere earmarked for health care\nreform.\nThe political costs to Clinton,\nhowever, could be great. By its\nnature, a value-added tax is re-\ngressive, potentially landing hard-\nest on low- and middle-income\nfamilies whose tax burden Clinton\npromised last year would be eased\nif he were elected.\nThe President has since retreat-\ned from that promise, citing unex-\npectedly higher federal budget\ndeficits. He already has proposed\nWASHINGTON EDITON / LOS ANGELES TIMES\nThursday, April 15, 1993\nfinancing part of his economic\npackage with a national energy\ntax, which would raise the tax\nburden of middle-income Ameri-\ncans.\nWhite House Communications\nDirector George Stephanopoulos\nsaid Wednesday that a value-add-\ned tax is still among the array of\nprospective financing sources un-\nder consideration by the Task\nForce on National Health Care\nReform as it begins to fine-tune\nvarious options to be presented to\nClinton.\n\"The working groups are looking\nat it but the President has not\nmade a decision.\" Stephanopoulos\nsaid. \"I assume that he will consid-\ner the argument if it is presented to\nhim.\"\nAlice Rivlin, deputy director of\nthe Office of Management and\nBudget. told a breakfast meeting of\nPlease see TAX, A5\n1/2\n95\nWASHINGTON EDITON ANGELES TIMES\nThursday, April 15, 1993\n2/2\nNATION\nTAX: White House Reconsiders Value-Added Tax to Pay for Health Care\nContinued from A1\nClinton Administration could ex-\nless money, of course, but they\nmajority of the public would sup-\nmean to float a trial balloon.\nIt\nWord of the possible new tax\nthe National Assn. of Manufactur-\npect strong opposition to the idea\nmight make the tax easier to sell\nport a 3% tax for health care\nis not now under consideration. If\nsurfaced as Senate Republicans\ners that such a tax \"is clearly a\nbecause of the regressive nature of\npolitically.\nreform was conducted by the Cali-\nwe start considering it, I'll tell\ncontinued to spar with the White\npossible candidate.\"\nthe tax.\nThe President and Mrs. Clinton\nfornia-based Henry J. Kaiser Fam-\nyou.\"\nHouse over Clinton's proposed\nThe issue is just one of hundreds\nFor instance, just last week the\nthis week are undergoing many\nily Foundation and Louis Harris &\nBut the idea was thrust back in\n$16.3-billion economic stimulus\nthat the President and First Lady\nU.S. League of Women Voters\nhours of briefings on literally hun-\nAssociates, a leading polling firm.\nthe limelight Wednesday by Ad-\nplan, which faces a major test next\nHillary Rodham Clinton, who\nendorsed a bevy of tax increases to\ndreds of health care reform options\nFoundation officials later briefed\nministration officials.\nweek when the Senate again votes\nchairs the task force, must decide\npay for health care reform. includ-\nthat have been assembled by the\ntask force members on the find-\nIn her remarks to the manufac-\non whether to end a GOP filibuster\nin the weeks ahead. They plan to\ning raising income taxes. But the\n500-member task force since Jan.\nings.\nunveil a proposal to overhaul the\nturers, Rivlin acknowledged that\nthat has stalled the legislation.\nleague ruled out a value-added tax\n25.\nClinton first raised the idea of a\nextending health care to the unin-\nClinton said at a summer jobs\nhealth care system sometime in\nbecause, the organization said, it\nForemost among the decisions\nvalue-added tax in February, in\nMay.\nsured clearly would \"take some\nconference in nearby Arlington,\nwould unfairly burden poor and\nthat must be made are how soon\nresponse to a question at a town\nmore resources, and a VAT. or a\nVa., that the bill would give \"a\nA value-added tax is imposed on\nmiddle-income families who must\ncoverage should be extended to the\nhall meeting in Chillicothe, Ohio.\ngeneral sales tax, has a good deal to\nlittle goose\" to the nation's eco-\nproducts at each stage of produc-\nspend a higher part of their income\n37 million uninsured Americans-\nHe did not mention it directly in\nrecommend it.\nRivlin also\nnomic recovery but Republicans\ntion and is ultimately passed on to\non consumable items subject to the\nand where to find the $30 billion to\nconnection with financing health\nconceded that such a tax can hit\nretorted that it would merely drive\nconsumers in the form of higher\ntax.\n$90 billion that universal coverage\ncare reform but as possibly part of\nprices. It is sometimes called a\nhardest at the poor and thus \"has\nup the budget deficit.\nTo ease the burden on those\nwould cost annually. according to\na broader change in the way the\nto be offset or designed in some\n\"I don't have all the answers but\nnational or general sales tax, al-\nfamilies, such items as housing,\nAdministration analysts.\ngovernment raises money.\nthough its application is different\nway so that it is not too painful to\nI know this: Doing nothing is not\nfood, education, utilities or medical\nWhile a value-added tax might\n\"I do believe that America, at\nfrom state and local sales taxes,\nthe lowest-income groups.\"\nthe answer,\" Clinton declared.\ncosts might be excluded from the\nbe controversial politically, the\nanother time, and maybe not too\nAside from the value-added tax,\nwhich are calculated at the time of\nElsewhere, House Republicans\ntax.\nWhite House sees merits in its\nlong in the future. will debate\npurchase and collected on top of\nthe White House is considering 20\nborrowed a favorite Clinton tactic\n\"The more you exclude, the less\nsimplicity, sources said. A 3% tax\nwhether we want to shift the\nlisted prices.\nor more proposals for tax increases,\nby announcing that they would\nregressive it becomes,\" said ana-\ncould raise as much as $60 billion a\nnature of our tax system.\" Clinton\nincluding so-called sin taxes on\ntake their attack on Clinton's plan\nMost nations that compete with\nlyst Edie Rasell of the Washing-\nyear, according to the Congres-\nsaid.\nthe United States economically\ntobacco and alcohol products, as\ndirectly to the public in a series of\nton-based Economic Policy Insti-\nsional Budget Office.\nAsked about the remark after\nhave value-added taxes. But the\nwell as a cap on the premiums that\nmeetings that they are planning\ntute. Such exclusions would raise\nThe nationwide poll that found a\nthe meeting, Clinton said: \"I did not\ninsurers may charge.\nacross the country Saturday.\nKing Juror's Illness\nStirs a Brief Frenzy\nTrial: Parties convene nervously in court, only to\nlearn that a visit to doctor will delay deliberations.\nBy JIM NEWTON\nDavies informed prosecutors and\nand DAVID FERRELL\ndefense attorneys that he had\nTIMES STAFF WRITERS\ngranted permission for the juror to\nsee the doctor, accompanied by a\nHundreds of reporters descended\nU.S. marshal. With the issue thus\nupon the federal courthouse while\nconcluded, Davies grinned at the\nhelicopters took to the air over-\nlawyers and said: \"Have a good\nhead Wednesday after the judge in\nafternoon.\"\nthe Rodney G. King civil rights\nThe courtroom erupted in ner-\ntrial summoned lawyers and de-\nvous laughter as reporters dashed\nfendants to his courtroom for an\nfor the exits to alert their news\nafternoon announcement.\norganizations-many of which\nThe accused officers fidgeted\nwere broadcasting live reports\nnervously in their seats as U.S.\nfrom the courthouse-that the\nDistrict Judge John G. Davies took\nmuch-anticipated verdicts still had\nthe bench and dropped his bomb-\nnot been delivered. The jurors, who\nshell: A juror had requested to see a\nhave been sequestered. left for the\ndoctor.\nday before 2 p.m., having deliber-\n\"There are no verdicts,\" Davies\nated for just 3½ hours.\ntold the packed courtroom. \"But\nWhile the false alarm over the\nwe do have a problem.\nOne of\nexpected verdicts created an ad-\nthe jurors appears to have become\nrenaline rush among those careful-\nill and needs medical attention.\nly following the historic trial, resi-\nThe juror has made a request to see\ndents in many corners of the city\na family doctor this afternoon.\"\nPlease see KING, A6\nWASHINGTON EDITON / LOS ANGELES TIMES\nThursday, April 15, 1993\n1/2\n97\nK NG: Ju or Excused for A ternoon to Visit Doctor\nContinued from A1\nfrom the building in the future.\nseemed oblivious to the all commotion.\nUpdate: The King Trial\n\"Some people really seem to enjoy the tension,\" Paul\nAt the intersection of Florence and Normandie\nR. DePasquale, the lawyer for Officer Timothy E.\navenues, the flash point of last year's riots, all was\nA look at the developments Wednesday:\nWind, said later of Davies.\nquiet. At a gas station there, two men pumped gas and\nDavies told lawyers that he was not sure how\nchatted about Tuesday's Dodger game. A woman\nWord of a forthcoming \"announcement\" by U.S.\nserious the juror's ailment was, and he did not disclose\nstanding nearby was asked by the only reporter who\nDistrict Judge John G. Davies sent hundreds of\nreporters scurrying to the federal courthouse in\nwhich juror it was.\nshowed up whether she had heard rumors about\nanticipation of a verdict, but it turned out to be a\nDavies' handling of the issue drew some fire from\npossible verdicts. \"What verdict?\" she said.\nfalse alarm. The judge wanted to report that\ndefense attorneys in the case, who complained that he\nAt the Imperial Courts housing project in Watts. it\ndeliberations would be halted for the afternoon so a\nhad allowed speculation to run wild about possible\nwas much the same. But for the presence of two news\nsick juror could get medical attention.\nverdicts when he could simply have told lawyers that\nreporters, those who had gathered outside in the warm\nAmong those following the historic trial, the\na juror needed medical attention.\nApril sunshine would have been completely unaware\nverdict rumor created an adrenaline rush. Local\n\"I really think this was unnecessary.\" Braun said.\nof possible developments.\ntelevision stations went live. Media helicopters\n\"He could have just issued an order and kept this all\nSmall children pedaled their tricycles on the grass\nhovered overhead. But for most of the city, there\nfrom happening.\"\nand filled a small pool with a garden hose. Young men\nwas no panic, and businesses that had shut down\nIf the juror is too sick to continue, Davies could allow\nsat on a sunny bench, sipping malt liquor and playing\nMonday. when the last verdict rumor circulated,\nthe panel to continue with 11 members. Although the\ndominoes. Drying laundry flapped in the breeze and an\nremained open this time.\nfederal rules do not specifically address the question of\nice cream truck made its rounds.\nIn a separate development. Dist. Atty. Gil Garcetti\nwhether one of the alternate jurors could be added to\nsaid that the remaining charge against Officer\nthe 11 remaining panelists, lawyers said they might be\nF\nor the most part, business continued as usual\nLaurence M. Powell. left in limbo after the jury in\nallowed to draft one of three alternate jurors if both\nthroughout the city, despite the brief midafternoon\nSimi Valley deadlocked over whether the officer\nspike in anxiety levels. Venice advertising agency\nused unnecessary force against King. will be\nsides agreed to that idea. Those alternates, like the 12\nThursday, April 15, 1993\nChiat/Day, which closed early on Monday when\ndismissed at his office's request, possibly this\nregular jurors, have been sequestered since late\nFriday. Garcetti said that because of the federal jury\nFebruary.\nverdicts were rumored. stayed open this time and\n\"there was no panic.\" a company spokesman said.\ntrial, the state cannot retry him without subjecting\nhim to double jeopardy.\nA number of retailers noted an afternoon sales\nI\nf one of the alternates were drafted, that could force\ndeliberations to begin again, since none of the\nlull-among them the Fedco store on La Cienega, looted\nalternates have been allowed to attend the jury\nand burned last year but quickly reopened. A crowd\nwere also fielding a greater than usual number of calls\ndiscussions that have been under way since Saturday.\ngathered in the discount department store's television\nfrom merchants anxious for what they figured would\nBraun said that if both sides agreed to use an alternate\ndepartment to watch news bulletins. Employees were a\nbe inside information in the hands of the police.\njuror, that person would be selected randomly.\nbit jittery about possible verdicts, acknowledged assist-\n\"When all that was going on, the officers at Newton\nDespite the uncertainty about the ailing juror's\nant manager Ed Parness, who said: \"There was possibly\nDivision were busy delivering a baby,\" reported a\nmedical condition, jurors told Davies that they hope to\na slight letup in business, but not that much.\"\nproud Capt. Jim Tatreau, \"and that overshadowed any\nreconvene this morning at 8:30.\nIn Koreatown. one of the communities hardest hit by\nlast year's unrest, merchants reported that business\nnews about a possible verdict.\"\nIn a separate development, Dist. Atty. Gil Garcetti\nBut that was not the case at the Edward R. Roybal\nsaid that the remaining state charge against Officer\nhas been down 40% to 50% since the jury began\ndeliberating. But there appeared to be little outward\nFederal Building. where the chaos and suspense began\nLaurence M. Powell, left in limbo after the jury in Simi\nexcitement over the sudden court hearing.\nmounting during the lunch hour when Judge Davies'\nValley deadlocked over whether the officer used\nMost people already were prepared for the verdicts,\nclerk began quietly circulating among the lawyers,\nunnecessary force against King, will be dismissed at\ntelling them to be in court at 1 p.m. Meanwhile, the\nhis office's request, possibly this Friday.\nmerchants noted. Many had stocked up on such staples\nas rice, canned food and Korean-style instant noodles.\nwire services notified the media about the scheduled\nGarcetti said Wednesday that the decision to drop\nNow they were going about their daily business, albeit\nproceeding.\nthe charge was made months ago. Because of the\nwith a weary stoicism.\nWhen court convened, U.S. Atty. Terree A. Bowers\nfederal jury trial, \"Legally we will be obligated to do\nWASHINGTON ANGELES TIMES\n\"What can we do but wait?\" asked Charles Yoon\nand the head of the Justice Department's civil rights\nso, because it's double jeopardy,\" Garcetti said. \"Even\nfrom his metal folding chair outside a key shop in a\ndivision were in attendance. fueling speculation that\nif we wanted to we couldn't try him again.\"\nmini-mall parking lot.\nan announcement of the verdicts could be at hand.\nA hearing is scheduled Friday before Judge Stanley\nAt Bourbon Street Liquor. next door to a supermarket\nSome radio and television organizations went live to\nWeisberg, who presided over the first trial. A\nwhere a security guard was killed in a cross-fire of\nannounce the news that Davies had convened the\nspokesman for the district attorney's office said\nbullets last spring. owner Jay Shim reacted to Wednes-\nafternoon session. and within minutes, helicopters\nprosecutors would move to dismiss the charge at that\nday's false alarm by citing a Korean proverb: \"When\nwere broadcasting aerial shots of the courthouse.\nhearing if the federal jury has returned its verdicts by\nyou get frightened by the sight of a turtle, you become\nThen, just as the anxiety crested. Davies was forced\nthen. If not, prosecutors will move to continue the\nstartled even when you see the top of a hot pot.\"\nto order a one-hour delay in the announcement\nhearing until after the federal case is over.\nAt five inner-city police divisions-Southeast,\nbecause one of the defense lawyers. Harland W.\nThe day started Wednesday on a strange note, when\nSouthwest, Hollywood. Rampart and Newton-and at\nBraun, was having a pasta lunch in Chinatown.\none of the defendants, Sgt. Stacey C. Koon, and his\nheadquarters downtown. officials reported ordering no\nThe extra time merely stoked the tension, and within\nattorney, Ira Salzman. arrived for the day's activities\nincreased patrols or other actions in response to the\nthe hour. the Federal Building was in an uproar.\nwearing Groucho Marx-style gag glasses with fake\nverdict rumor.\n\"Lucille, I think that it's time to leave.' one federal\nnoses and phony mustaches. The two suggested that\nRampart Sgt. Michael Chamberlain said officers\nworker said to another as they boarded an elevator. \"I\nthey were attempting to inject some levity into the\nwere trying to find out themselves if verdicts were in\nfeel like I'm in a MASH unit.\"\nsituation.\nstore by monitoring news broadcasts.\nBraun and his client, Officer Theodore J. Briseno,\nContributing to this story were Times staff writers\n\"We probably did like a whole lot of other folks and\nwere on hand when court reconvened at 2:07 p.m.\nStephanie Chavez, Paul Feldman, Jesse Katz, K. Connie\nwatched.' he said.\nDavies chided Braun for being away from the\nKang, Eric Mainic, Dean Murphy, Nancy Rivera Brooks, Ted\nThe only difference was that officers at Rampart\ncourthouse and told him to stay within 10 minutes' call\nRohrlich, Amy Wallace and Henry Weinstein.\nRussian Court Challenged\nas Trial Opens in Coup Plot\nBy ELIZABETH SHOGREN\nand \"[President Boris N.] Yeltsin,\nTIMES STAFF WRITER\nBeware the Trial and the Nation!\"\nThe trial, which is being heard\nMOSCOW The trial of 12 of the\nby a military tribunal of the Rus-\nmost powerful men of the Gorba-\nsian Supreme Court in an austerely\nchev era, who face charges of high\ntreason for their roles in the Au-\ndecorated courtroom, is expected to\ngust, 1991, coup, commenced\nlast weeks or months. As many as\nWednesday with the accused au-\ndaciously challenging the court\nU.S. PLEA TO ALLIES\nwith one legal maneuver after\nU.S. asks major economic allies\nanother.\nto increase aid to Russia. B5\nRather than acting like defend-\nYELTSIN THREAT TO QUIT\nants on trial for a crime so grave\nYeltsin said he will quit if he\nthat it carries a possible death\nloses Russian referendum. A3\npenalty, the men appeared relaxed\nand confident, talking among\n120 witnesses, including former\nthemselves, almost as if they were\nSoviet President Mikhail S. Gorba-\nback in the past, participating in a\nchev. are scheduled to take the\nCommunist Party meeting.\nstand. Security is tight and press\nOutside, a group of fervent sup-\ncoverage is limited to a handful of\nporters cheered them on, waving\nRussian reporters and one foreign\nred Soviet flags and holding post-\ncorrespondent.\ners with such slogans as \"Freedom\nThe defendants-including the\nto the Patriots of the Motherland\"\nPlease see TREASON, A3\nWASHINGTON EDITON / LOS ANGELES TIMES\nThursday, April 15, 1993\n99\nTREASON: Trial Opens for 12 Men\nWho Opposed Gorbachev in Coup\nContinued from A1\nBut the defense did not stop there.\nand cherry red tie. When army Gen.\nformer vice president, prime minister,\nSeveral of the defendants defiantly de-\nValentin I. Varennikov, 69, was asked why\ndefense minister, KGB chief and top Com-\nmanded that the prosecution team be\nhe was not wearing his uniform and\nmunist Party and military officials of the\ndismissed because it is subordinate to\nnumerous medals, he replied in a righteous\nSoviet Union-claim that their actions did\nValentin G. Stepankov. Russia's chief\ntone: \"My weapon is the truth. and I don't\nnot constitute a coup but a last-ditch effort\nprosecutor, and Yevgeny K. Lisov, the\nwant to influence the court with my\nto preserve their country, the Soviet\nhead investigator in the case, who co-au-\nmedals.\"\nUnion, from certain collapse.\nthored a book on the conspiracy based on\nPublic anger toward the leaders of the\nThe defense's first tactic was to chal-\ntheir investigation. The book shows that\ncoup has dissipated over the long months\nlenge the authority of the court itself.\nthe prosecutor's office has a clear bias, the\nsince Yeltsin clambered atop a tank out-\nThursday, April 15, 1993\nThey claimed that Russia's Supreme Court\ndefendants charged.\nside the Russian Parliament building. In a\nis not the legal heir of the Supreme Court\nLukyanov rose, commanding the court-\nrecent survey of Muscovites, only 1% of\nof the former Soviet Union, which disinte-\nroom in the authoritative style that he was\nthose polled said they think the defendants\ngrated four months after the failure of the\nfamous for as chairman of the Soviet\nshould be given the death penalty and 34%\ncoup, and hence has no right to rule on a\nsaid they should be pardoned.\ncase of treason against the Soviet Union.\n\"The union no longer exists,\" argued\n'The union no longer exists. It\nW\nith the economic situation steadily\nGenrikh Pavda, an attorney for former\ndeteriorating, many Russians have\nSoviet Parliament leader Anatoly I. Luky-\nseems to me that we have\nbegun to look back on the days of Commu-\nanov, 62. \"It seems to me that we have\ntoday to decide who can judge\nnist rule-and on the leaders of the failed\ntoday to decide who can judge an alleged\nputsch-with increasing fondness.\ncrime against a state that may no longer\nan alleged crime against a\n\"They're not criminals-they just want-\nexist.\"\nstate that may no longer\ned to stop the disintegration of our country\nD\nefense lawyers also charged that the\nexist.'\nthat Gorbachev started,\" Vladimir Golu-\nbev, a retired factory worker who has seen\njudges should be dismissed because\nGENRIKH PAVDA\nhis life savings vanish because of high\nthey could not be objective since as\nAttorney for former Soviet Parliament leader\ninflation, said as he stood outside the\nmilitary men, they are subordinate to\nAnatoly I. Lukyanov\ncourthouse.\nRussian Defense Minister Gen. Pavel S.\n\"They didn't want a putsch-they just\nGrachev, who is a witness for the prosecu-\nwanted order.\"\ntion.\nBut while the public's attitude toward\nWASHINGTON ANGELES TIMES\nOne after another, the defendants voiced\nParliament, and declared that if the prose-\nthe plotters has softened, the mother of\ntheir concurrence and demanded that their\ncutors remain on the case, \"I will refuse to\nIlya Krichevskaya. one of three men killed\ntrial be heard by a special tribunal that\nanswer their questions!\"\nduring the coup, said her bitterness has not\nrepresents other republics of the former\nThe judges announced a recess until\nebbed.\nSoviet Union, not just Russia.\ntoday while they consider Lukyanov's\n\"The only way that my feelings and\nBut, after three hours of deliberations,\nchallenge.\nconvictions have changed over time is that\nMaj. Gen. Anatoly Ukolov, who is presiding\nThe trial is being held in a military court\nbecause several of the defendants are\nI feel more contempt toward these men.\"\nover the non-jury trial with two other\nNaisa Krichevskaya said in an interview\njudges, rejected the defense's demands as\nformer generals, but at court, all of the\naccused were dressed in civilian clothing.\nwith the Russian news program \"Vesti.\"\nlegally groundless and stated that the\nReuters\ncourt has authority over proceedings for\nFormer Soviet Defense Minister Dmitri\nSpecial correspondent Viktor A. Vodola-\ncrimes committed on Russian territory.\nT Yazov, 69, appeared wearing a pink shirt\nzhsky contributed to this story.\nDefendant Anatoly Lukyanov makes his way through crowd on his way to court.\nMillions Unable\nto Pay Taxes by\nDeadline Today\nBy ALEXEI BARRIONUEVO\nTIMES STAFF WRITER\nAccustomed to indebtedness for\neverything from vacations to re-\nfrigerators, millions of Americans\nnow find themselves beholden to a\nscary new creditor: the Internal\nRevenue Service.\nApril 15 dawned today on more\nlast-minute filers, extension seek-\ners and people just plain unable to\npay than at any time in years. The\nreasons? A federal withholding-tax\ncut designed to boost take-home\npay, and the lingering economic\nslump the cut was created to\naddress-not to mention the per-\nsistent unpopularity of saving\nmoney.\nTake Bruce Brackett. The 46-\nyear-old security supervisor at\nPepperdine University owes the\nIRS $2,600, double what he got back\nlast year. Unable to pay by today's\nofficial deadline, Brackett filed for\nan extension so he can save up\nwhat he owes by the extension\ndeadline of Aug. 16.\n\"I thought the extra money I was\ngetting on my paycheck was a\ncost-of-living increase.\" Brackett\nsaid. \"My wife and I live for today.\nWe spend what we make; it's the\nAmerican way.\"\nPaying up has stymied many\nPlease see DEADLINE, A5\nDEADLINE: Millions Cannot Meet Cutoff\nContinued from A1\npensation, which is not taxed until\nwere confused by the withholding\na recessionary mode,\" he said. \"My\nAmericans this year. More people\nthe end of the year.\nchange or simply cannot afford to\nincome dropped 30% this year.\"\nthan ever filed late. often because\n\"Tax on unemployment can be\npay.\nthey were not getting a refund or\nvery substantial,\" said Marvin\nWright said he did not take any\nAt the downtown IRS office\ncould not pay what they owe, tax\nWeisbrod, vice president of techni-\nvacations and cut back on personal\nTuesday, Mike Terrell. a food clerk\npreparers report.\ncal services for Triple-Check In-\nexpenses. But he still owes the IRS\nat a Von's in South-Central Los\nMany taxpayers blessed with\ncome Tax Service in Burbank.\nthousands for his work as an inde-\nAngeles, said he did not make more\nfalling rates on their home loans\n\"When you're someone who is out\npendent contractor, money he\nmoney this year but discovered to\nfound themselves paying far less\nof work, you don't have to owe\nneeds more time to collect, he said.\nhis horror that he owes $1,200 to\ninterest than the year before.\nthousands of dollars to be in trou-\nUncle Sam, $900 more than last\nCleophus Nicholoson, a postal\nslashing their mortgage interest\nble.\"\nyear.\nsupervisor, was filing an extension\ndeduction.\nBut many. like Brackett. blame\n\"And I was off sick for three\nto buy time. He owes the IRS\nOverall. Americans are getting\nwithholding changes put into effect\nmonths,\" he said. \"If I had been\n$1,700 this year. Last year he got\nsmaller refunds this year-an av-\nlast year, when President George\nworking those months I might be\nback $1,200, money he used for a\nerage of $971. $4 less than last\nBush, in an attempt to boost the\n$3,000 in the hole.\"\nvacation.\nsagging economy, reduced the\n\"Next time around. I plan to get\nLATE TAX TIPS\namount of taxes withheld from\nLast-minute filing reminders.\npaychecks.\nT\nerrell filed a Form 9465, the\nsomeone professional to do my\nIRS' installment plan request.\ntaxes and add property to offset my\nincluding what to do if you\nSooner or later, the piper must\nBorrowing from the IRS does not\nliability,\" he said.\ncannot pay what you owe. B6\nbe paid, and now the IRS worries\nbother him, though, since he will\nthat the lower rate of withhold-\nonly have to pay a 0.5%-per-\nFor the poor, filing seems almost\nyear they are waiting longer\ning-and the subsequent inability\nas tough as paying. Samuel San\nmonth penalty on the unpaid\nto file. As of Friday. filings nation-\nof many people to pay-could\nRoman, 64, struggled to fill out his\namount. plus 7% annual interest,\nwide were down 6.5% from last\ncause record numbers of Ameri-\nforms at the downtown IRS office.\nwhich is less than commercial\nyear. the biggest gap in five years,\ncans to drop out of the tax system.\n\"The last eight years, I haven't\nlenders are charging.\nthe IRS said.\nThe IRS responded last Wednes-\nTom Connus, a property manag-\nmade enough money to pay some-\nIn Los Angeles, filings were\none to do it,\" he said.\nday by announcing that it would\ner, said he was counting on a\nrunning 23% behind as of March\ndrastically reduce penalties for\nrefund this year to pay back taxes\nSan Roman said he lives on\n27. when the national rate was\nthose who ask to file returns late\nhe owes for 1990. \"Now I am\nSocial Security, unemployment in-\n7.4%. High unemployment in the\nand delay sending tax payments.\ndoubly hit,\" he said. \"I didn't\nsurance and money earned work-\nSouthland is one possible explana-\nBrackett is among the roughly 5\nrealize the withholdings change\ning part-time jobs, which yielded\ntion, said Nancy McCurley. an IRS\nmillion Americans who will avoid\nwas happening until the end of the\nhim about $6,000 in 1992. He said\nspokeswoman.\n5% per month in non-filing fees.\nyear.\"\nhe always files on time and always\nSome people who had good jobs\nLate filers could still be liable for\nTough economic times forced\nowes taxes.\nowe taxes on 1992 income even\ninterest and penalties of up to 13%\nscreenwriter M. Augustus Wright\n\"Every year I say, \"I don't have\nthough they may be unemployed\nuntil the account is paid.\nto seek out extension Form 4868 at\nmoney. Send me to jail.' But they\nnow. Others are struggling to pay\nThe IRS move has meant little to\nthe IRS office downtown. \"The\nsay, \"That's all right. Can you pay\ntaxes on their unemployment com-\nBrackett and others who say they\nentertainment industry has been in\n$5 or $10?'tSo I keep coming back.'\nWASHINGTON EDITON ANGELES TIMES\nThursday, April 15, 1993\nClinton Will Likely Skip Gay-Rights March\nRally: President will probably instead\nthrough his participation. Two weeks ago, a delegation met\nLesbian Victory Fund, which raises money for candidates\nwith White House aides to urge Clinton to take part.\nwho support gay rights.\nmeet with Democratic senators, his\nSome gay rights activists compare the event to the civil\nHileman said the issue of Clinton's appearance has\nspokesman says. Event poses a political\nrights march organized by Dr. Martin Luther King Jr. in\nbecome so important to march participants that it is \"the\n1963. They say Clinton should make the kind of statement\nsingle most asked question\" on the march's telephone\ndilemma for the White House.\nthat President John F. Kennedy would not when he chose\ninformation lines. Organizers have predicted that the\nnot to participate in King's march.\nprocession itself could draw 1 million visitors.\nBy PAUL RICHTER\nSome also have warned that, depending on Clinton's\n\"We think Clinton in time will understand this event in\nTIMES STAFF WRITER\nactions, the event could turn from a celebration into a\nterms of its importance in fighting prejudice and would\nprotest.\nregret it if he didn't attend.\" said Hileman, a high school\nW\nASHINGTON-President Clinton-facing pressure\nhe march has put Clinton in a delicate political position\nscience teacher from Pittsburgh, Pa.\nto show support for gay rights at a march here April\nT\nTorie Osborn. executive director of the National Gay and\nbecause his presence would heighten tensions over an\n25-probably will instead join Democratic senators at a\nLesbian Task Force, said the news concerning Clinton's\nissue that the White House has been working hard to\nweekend retreat 150 miles away in Jamestown, Va., his\nplans was \"disappointing\" but that she still holds out hope\nchief spokesman said Wednesday.\ndownplay.\nthat he will attend.\nAs an alternative to an appearance at the march. Clinton\nAnd, although the event's organizers have worked to\nShe said march organizers decided that they could not\nmight issue a statement of support for its goals and perhaps\nbring in mainstream groups, including religious organiza-\nlimit attendance to supporters who would be less likely to\nmeet with some gay-rights leaders, White House Commu-\ntions, it also includes at least some of the more flamboyant\noffend some segments of the American public.\nnications Director George Stephanopoulos said.\nand militant gay-rights organizations.\n\"Drag queens launched the modern gay-rights move-\nBut a decision not to participate could risk alienating\nClinton's absence, on the other hand. would enable him\nment,\" she said. \"We are not ashamed of the diversity\ngay-rights supporters, who are already uncertain what\nto make a different political point: that he is willing to\nwithin the community. Nor, if we wanted to, could we\nClinton ultimately will do on the issue of gays in the\nstand up to pressure from special interest groups even\ncontrol a very colorful and anarchistic and broad-based\nmilitary and who could turn the rally into a huge protest.\nthough they have supported him with their dollars and\ncommunity.\"\nBilly Hileman, a co-chairman of the event, said marchers\ntheir votes.\nBut Rep. Barney Frank (D-Mass.), who is openly gay,\nwould be \"disturbed and perplexed\" if Clinton were unable\nSome leaders of gay groups have suggested that Clinton\nsaid an appearance by Clinton at the march could weaken\nto make a personal appearance.\nmight participate through a videotaped appearance or\nthe gay-rights cause by prompting unflattering news\n\"We don't believe standing alongside gay men and\naddress the marchers through an audio hookup, as\ncoverage of the President.\nlesbians would make a politically embarrassing photo-\nPresident George Bush did in recent years during the\n\"How would it help gay and lesbian rights if the\ngraph,\" he said. \"I think being alongside Sam Nunn in\nannual anti-abortion marches in Washington.\nPresident's position in this regard were weakened?\" he\nVirginia could be an embarrassment.\" Nunn (D-Ga.), the\nBut Stephanopoulos was skeptical about the latter idea,\nasked.\nchairman of the Senate Armed Services Committee, has\nsaying that Jamestown, east of Richmond, Va., at the\nThe issue should not be \"whether the President was at\nopposed Clinton's plans to open the military to homosex-\nmouth of the James River, was \"a little far out.\"\nan event with people dressed outrageously. wearing too\nuals.\nAt least one prominent associate of the President,\nfew clothes, et cetera. There are fewer constraints on me\nThe march organizers have been urging Clinton since\ncampaign aide James Carville, will take part in the event.\nthan there are on the President, but there are demonstra-\nlast December to make a visible statement of support\nHe will attend a luncheon sponsored by the Gay and\ntions I won't be in, pictures I won't pose in,\" he said.\nLos Angeles Times\n4/15/93\nLos Angeles Times\n4/15/93\nClinton's Expert on California\nSees Slow Economic Recovery\nFederal aid: Commerce Secretary Ronald\nty business development.\nBrown said he looks forward to the challenge but\nBrown is charged with helping to revive\nstresses that it will take years to make an impact,\neconomy and rebuild riot areas.\nparticularly in areas devastated by last year's riots.\n\"This is not about the 29th of April, 1992. This is about\nAugust, 1965,\" he said, referring to the Watts riots. \"This\nBy GLENN F. BUNTING\njust didn't happen. There was no response or an inadequate\nTIMES STAFF WRITER\nresponse 30 years ago. Until we start taking a long-term,\nWASHINGTON- the Clinton Administration's newly\nnon-crisis-oriented point of view, we are not going to be\neffective with these problems.\nappointed czar on California, Commerce Secretary Ronald\n\"We've got to have a federal government that doesn't\nH. Brown is developing a federal strategy to stimulate the\njust parachute in and run out. That is the usual response.\nstate's depressed economy and revive charred neighbor.\nYou either get chased out or run out because you give up.\nhoods of Los Angeles amid tense anticipation of verdicts in\nThe attitude of this Administration is we can make a\nthe Rodney G. King civil rights trial.\ndifference, we can help and we intend to.\"\nNo Cabinet official, including Brown, volunteered for the\ntask. President Clinton assigned the responsibility to\nT:\n0 underscore the many obstacles confronting Brown,\nBrown last month as part of the Administration's effort to\nconsider his stated objective of harmonizing relations\nfocus attention on California and cultivate a political base\nbetween two volunteer organizations-Peter Ueberroth's\nin the state.\nRebuild L.A. and Rep. Maxine Waters' Community Build.\nBrown said he plans to visit Los Angeles next week for\nRebuild L.A. officials said there is no dispute between\nthe second of many trips to the state. Last weekend. Brown\nthe two agencies for Brown to resolve, only vitriolic\nwas appointed to head an emergency advisory team to\nattacks by Waters. \"Maxine has kept up a drumfire of\ncoordinate the Administration's response if violence erupts\ninaccurate, unfair criticism of our organization and Peter\nafter the verdicts.\nUeberroth.\" said Barry A. Sanders, Rebuild L.A. co-chair-\nAdministration officials said the President considers\nman.\nBrown ideally suited to direct the California rescue\nWaters portrayed any attempt by Brown to broker peace\noperation because the chief of the Commerce Department\nas a waste of time. \"They can't get me together with Peter\nis among the nation's most influential policy-makers in\nUeberroth. Peter Ueberroth doesn't have anything to\nmany key areas affecting the state. These include interna-\noffer,\" Waters said.\ntional and domestic trade, technology. tourism and minori-\nPlease see BROWN, B4\n1/2\n103\nBROWN: Commerce Secretary Focuses on State\nContinued from B1\nGeorge Bush enjoyed record high popularity and\noffice.\nBrown sought to avoid such verbal warfare\nfew gave Brown any chance of getting a\nBrown, 51. approaches his California assign-\nduring his fact-finding trip to Los Angeles on\nDemocrat elected as President. But Brown\nment with a vast background as a civil rights\nMarch 27 and 28 by barring the media from his\nraised millions of dollars, helped unite the\nadvocate and successful attorney. He was\nmeetings with dozens of political, business and\nfractious Democratic Party and staged a suc-\neducated at a special elementary school run by\ncommunity leaders. His visit sparked hope\ncessful national convention in New York last\nHunter College for New York's elite private\namong some that, under Brown's guidance, the\nsummer that helped put Clinton on the road to\nprep schools, and at Middlebury College in\nfederal government will provide much-needed\nthe White House.\nVermont and St. John's Law School in New\nassistance to impoverished inner-city areas.\nYork.\n\"I was impressed with him,\" said Sweet Alice\n\"I\nf he brings that same kind of wisdom and\nHarris, executive director and founder of Par-\nperspective to the problems here. which\nents of Watts. \"I found him to be sensitive to our\nthere's no question he\nI\nn 1973. he moved to Washington to serve as\nare almost insoluble\nchief spokesman of the National Urban\nneeds. So often, people will tell us what they\nis the best guy in the Administration to do it,\"\nLeague. He later worked on Capitol Hill and ran\nwant us to do, but they don't ask us what we\nsaid attorney Johnnie L. Cochran Jr., a longtime\nSen. Edward M. Kennedy's successful 1980\nwant them to do. He kept asking.\"\nacquaintance who hosted a luncheon for Brown\nCalifornia primary campaign against President\nSo far, Brown said, he has received an earful\nof suggestions on how to help Los Angeles.\nduring last month's visit to Los Angeles. \"It's a\nJimmy Carter. As a prominent lawyer-lobbyist\nThey include focusing attention on unemployed\nherculean task, even for him.'\nin Washington, Brown benefited financially by\ninner-city men between the ages of 17 to 30 who\nSeated in his office at the Commerce Depart-\nwinning controversial and lucrative contracts\noften are untouched by government programs;\nment, Brown appears confident and at ease\nwith local governments and represented several\naltering the Administration's summer jobs pack-\ndiscussing his role. The constant bubbling of a\nspecial interests. One of his clients was Jean-\nage to help Los Angeles youths who attend\nlarge aquarium can be heard in the background.\nClaude Duvalier, the dictator of Haiti at the\nschool year-round: making Small Business Ad-\nA painting of former Commerce Secretary W.\ntime.\nministration loans under $50,000 available to\nAverill Harriman watches over Brown from\nBrown's reputation as a consensus builder and\nentrepreneurs, and overhauling the oft-criti-\nabove the nearby fireplace. a wall position held\na keen political strategist is expected to serve\ncized bureaucracy within the Federal Emergen-\nby Herbert Hoover before the Democrats took\nhim well in trying to turn around the California\ncy Management Agency.\nover.\neconomy and keep the state devoted to Clinton.\nBrown is no stranger to long-shot missions.\nEver the consummate politician, Brown is\n\"I think we can play a significant role in\nShortly after Brown was named chairman of the\nquick to point out that Hoover occupies a\npulling various groups and forces and sectors of\nDemocratic National Committee, President\n\"respectful\" position in the hallway outside his\nthe community together.\" Brown said.\nDos Angeles Times\n4/15/93\n104\nPHYSICAL FITNESS\nRelief on Way for Clinton\nKnees, Capital Commuters\nPresident about to jog around\na stroke, heart attack and ileitis in less\nthan three years, he allayed concerns\nWhite House, evoking\nabout his health by taking to the golf\nmemories of Carter's 'Killer\ncourse and the putting green he had in-\nstalled on the White House lawn.\nRabbit,' Nixon's bowling ball.\nOn the other hand. in the late 1950s,\nIke's golfing became a great political lia-\nBy PAUL HOUSTON\nbility, suggesting that the President was\nTIMES STAFF WRITER\nunduly complacent about the surge of\nthe Soviet Union.\nW\nASHINGTON- Clinton, the\nfirst President to tie up traffic by\n\"It was a metaphor of a President not\njogging on the streets of the capital, soon\non top of the job,\" Beschloss says.\nwill be switching to a quarter-mile track\nFor Jimmy Carter, who had a swim-\ndug into the White House grounds.\nming pool built outside the White House,\nThe track. privately financed by a\nrecreation was sometimes a public rela-\ncompany donating $10,000 worth of ma-\ntions nightmare. When aides claimed\nterials and by others kicking in $20,000\nthat a rabbit had attacked his canoe on a\nfor labor. will protect Clinton's knees\nfishing trip, prompting Carter to splash\nfrom hard pounding on pavement and\nwater with an oar to scare it off, car-\nsidewalks and give him better securi-\ntoonists went wild over the \"Killer Rab-\nty-but it also will be a blessing to\nbit\" and \"Banzai Bunny.\" Later, Carter\nWashington motorists delayed by presi-\nsent shivers around the world when he\ndential jogging.\nnearly collapsed from fatigue while run-\nHis jogging in downtown Washington\nning in a race.\nhas created early morning traffic jams\nRichard Nixon actively sought press\nand lunchtime spectacles. One day, he\ncoverage of his bowling, thinking it\nattracted startled stares, tourists cam-\nwould boost his stock with hard-hat\neras and a straggly entourage of spur-\nDemocrats. Nixon's lack of golfing and\nof-the-moment running partners as he\nbowling prowess-he once dropped a\njogged along monument grounds, with\nbowling ball on his wife's foot-inspired\nSecret Service all-terrain vehicles\na joke: \"I scored 128 today,' Nixon sup-\nzooming down sidewalks to keep up.\nposedly told Henry A. Kissinger. his na-\nPresidents from Herbert Hoover on\ntional security adviser. \"Your golf game\nhave turned to exercise for psychic as\nis getting better.\" Kissinger said. Nixon\nwell as physical relief from the rigors of\nreplied, \"I was bowling. Henry.\"\ndecision making. But some also have\nN\not many presidents before Hoover\nseemed well aware of political dividends.\nexercised because it was long con-\n\"One reason that John Kennedy em-\nsidered dangerous for people over 40.\nphasized exercise was to divert attention\nHoover tossed around a heavy medi-\nfrom his bad health,\" says presidential\ncine ball with members of his Cabinet,\nhistorian Michael Beschloss. \"With the\nwho of course were called the Medicine\npictures of him sailing and swimming, no\nBall Cabinet.\none believed he was suffering the way\nFranklin D. Roosevelt swam in an in-\nhe was from back problems and Addi-\ndoor pool built for him at the White\nson's disease.\"\nHouse as therapy for his infantile paral-\nAssociated Press\nC\nlinton benefits from displaying Ken-\nysis.\nnedyesque vigor with his almost\nHarry S. Truman took brisk walks and\nPresident Clinton takes to the streets,\ndaily jogs through the streets and parks\npumped a rowing machine.\na source of aggravation to motorists.\nof Washington. His aides insist he IS not\nEisenhower fished and played golf.\nseeking political profit-in fact, he only\nKennedy played touch football in ad-\nCarter played softball in addition to\ngrudgingly tolerates having the press\ndition to swimming and sailing.\nhis other activities.\nalong on his three-mile runs. Still, aides\nLyndon B. Johnson rode horses.\nRonald Reagan rode. chopped wood\nacknowledge the dividends. \"It only re-\nNixon, besides installing a bowling al-\nand lifted weights.\ninforces that image of youthfulness and\nley in the White House, restored a bil-\nGeorge Bush ran, golfed. boated.\nenergy and change,\" one says.\nliards room that had been banished by\nhunted. played tennis and threw horse-\nBut presidential sportiveness can be a\nthe puritanical Rutherford B. Hayes.\nshoes.\nmixed blessing.\nGerald R. Ford swam, skied and\nBesides running, Clinton golfs and us-\nAfter Dwight D. Eisenhower suffered\ngolfed.\nes body-building machines.\nLos Angeles Times\n4/15/93\n105\nEPA: State\nMust Toughen\nSmog Check\nBy MARIA L. La GANGA\nTIMES ENVIRONMENTAL WRITER\nThe head of the U.S. Environ-\nmental Protection Agency warned\nGov. Pete Wilson Wednesday that\nthe Smog Check program being\nconsidered by the state Legislature\nmust be toughened significantly or\nthe state will face federal sanc-\ntions.\nIn a letter also signed by Secre-\ntary of Transportation Federico\nPena, EPA Administrator Carol M.\nBrowner said none of the Smog\nCheck proposals under consider-\nation fully addresses federal clean\nair requirements \"and thus none\nwould be approvable by EPA as\ncurrently written.\"\nBrowner goes on to say that\nunless appropriate legislation is\nenacted by Nov. 15, the federal\ngovernment is considering cuts in\nfederal highway funding and stiffer\nair pollution reduction require-\nments for new industry in the\nstate.\n\"The imposition of sanctions in\nCalifornia would be costly to in-\ndustry, jobs, and the economic\ngrowth of your state,\" the letter\nsaid.\nJames Lee, a spokesman for\nCalEPA and Wilson's office, said\nthere is no disagreement about the\nneed to enhance the Smog Check\nprogram. \"We still think there is\nample time left to work with the\nLegislature in crafting a good\nSmog Check bill that everyone\nwould support-including the\nfeds,\" he said.\nSmog Check, which was enacted\nin 1984 to monitor and reduce\nvehicle emissions, is undergoing its\nthird major overhaul. The legisla-\ntion as written differs from federal\nClean Air Act requirements in two\nways.\nThe EPA calls for an entirely\ncentralized system, with separate\ntest and repair facilities. The state\nproposal is a hybrid system. Motor-\nists would take their car first to a\ncentralized test-only site. If they\nfailed the smog test, they could go\nto a so-called Gold Shield station\nfor repair and subsequent testing in\nthe same place.\nIn addition, EPA says all drivers\nmust pay at most $450 if necessary\nto bring cars into compliance with\nemission requirements. The state\nplan calls for a three-tier repair\ncap, depending on the model year\nof the car, that tops out at $350.\nLos Angeles Times\n4/15/93\n106\nJudge Rejects\nChallenge\nto Census\nBy DANIEL M. WEINTRAUB\nTIMES STAFF WRITER\nIn a decision that could end a\nfight over the \"undercount\" of\nmillions of people in the 1990 U.S.\nCensus, a federal judge in New\nYork has ruled against cities and\nstates that were trying to force the\nfederal government to adjust its\nofficial head count upward.\nUnless it is overturned on ap-\npeal, the decision will clear the\nway for the federal government to\ncontinue to peg California's 1990\npopulation at 29.7 million, a figure\nthe Census Bureau acknowledges\nis more than 1 million below the\nnumber of people believed to have\nlived in the state at that time.\nAt issue in the lawsuit was\nwhich set of figures to use: the\noriginal, door-to-door canvass or a\nsecond, statistical adjustment also\nperformed by the Census Bureau,\nwhich estimated that the tradition-\nal count missed 3 million to\n5 million people nationwide.\nThe decision to accept the Cen-\nsus Bureau's original count has\nbroad repercussions. affecting such\nissues as the state's allotment of\nrepresentatives in Congress and\nthe delivery of federal funds to\nCalifornia.\nDemocrats in the Legislature\nhad sought in separate actions to\nforce the use of the Census Bu-\nreau's revised numbers because\nmost of those missed in the original\ncensus lived in inner-city neigh-\nborhoods that are considered Dem-\nocratic strongholds. Republicans,\nincluding Atty. Gen. Dan Lungren,\njoined the fight as well, in an effort\nto secure more federal money for\nthe state.\n\"We're disappointed,\" said Jessi-\nca Heinz, an assistant city attorney\nin Los Angeles.\nHeinz said U.S. District Judge\nJoseph McLaughlin acknowledged\nthat the evidence supported the\nplaintiffs' contention that the ad-\njusted census numbers were more\nreliable than the original count.\nYet McLaughlin said that the\nCommerce Department's decision\nto reject the Census Bureau's ad-\njusted numbers should stand be-\ncause it could not be shown that\nthe department acted in an arbi-\ntrary or capricious manner.\nHeinz and David Puglia, a\nspokesman for Lungren, said no\ndecision has been made on whether\nto appeal the ruling.\nLos Angeles Times\n4/15/93\n107\nU.S. Asks Allies for New Aid for Russia\nEconomics: Officials warn\ncross every 't,''' said a Treasury official,\ncynical Russians, who will vote in 10 days\nfinance ministers worked into the morning\nsuggesting that some decisions would be\nin a referendum on their country's future.\ntoday on the details of the multinational aid\nthat a $40-billion package may\nput off for several weeks or more.\nThere have been some results. Japan\npackage, an outline emerged. As described\nnot be finished at Tokyo meeting\nAt the same time, several countries,\nannounced that it will offer $1.8 billion in\nby Waigel, who said he was offering only\nincluding wealthy but recession-pressed\naid to Russia, a huge increase over previous\napproximate figures, the plan would in-\nof top industrialized nations.\nGermany, turned aside the U.S. request for\nlevels. And President Clinton was putting\nclude:\nmore money. German Finance Minister\nthe finishing touches on an aid proposal for\n$3 billion in credits that the IMF would\nBy DOYLE McMANUS\nTheo Waigel, asked what new aid his\nthe federal budget year that begins Oct. 1,\nmake available to Russia almost immedi-\nand JAMES GERSTENZANG\ncountry was willing to promise for Russia,\nreportedly also in the range of $1.8 bil-\nately. primarily to cover the cost of import-\nTIMES STAFF WRITERS\nbluntly replied: \"None.\nlion-on top of this year's pledge of $1.6\ning necessary goods and equipment from\n\"We are ready to support more aid from\nbillion, offered just last week.\nthe West and Japan. This money would be\nTOKYO-The United States asked its\nthe international institutions like the Inter-\nBut U.S. officials had hoped this week's\noffered without requiring Russia to take\nmajor economic allies Wednesday to prom-\nnational Monetary Fund and the World\nmeeting would produce a list of aid com-\nspecific steps to stabilize its economy, other\nise new increases in aid to Russia, but there\nBank.\" Waigel said. But as for direct aid\nmitments from all the countries in the\nthan to demonstrate some measures to\nwere signs that pledges were not coming as\nfrom the German government, \"we have\nGroup of Seven-the United States, Japan,\ncontrol inflation-which in recent months\neasily as the Clinton Administration hoped.\nreached our limit,' he said.\nGermany, France, Italy, Britain and Cana-\nhas neared 30% but dropped to 17% in\nTop officials from the seven biggest\nA shortfall in aid pledges could have\nda. Three of the countries-Germany,\nMarch.\nindustrial powers worked into the night to\nsignificant political consequences for Rus-\nFrance and Italy-have not pledged yet.\n$4 billion in additional IMF credits that\ncomplete a multinational aid package that\nsia and the West. This week's unusual\nGermany, which has given more than\nwould be made available to Russia in a\ncould approach $40 billion, but U.S. officials\nmeeting between Secretary of State War-\nhalf of the worldwide total of about $80\npiecemeal fashion as Moscow institutes real\nbegan to warn that the plan might not be\nren Christopher, Treasury Secretary Lloyd\nbillion in aid to Russia since 1989, has often\neconomic reform. This step-by-step pro-\nfinished at this week's meeting of foreign\nBentsen and their foreign counterparts was\ncomplained that its share of the burden has\ngram represents a relaxation of the fund's\nand finance ministers.\nintended to produce a list of aid big\nbeen disproportionate.\nusual insistence that full reform be estab-\n\"We won't be able to dot every 'i' and\nenough-and concrete enough-to impress\nEven as the aides to the foreign and\nPlease see RUSSIA, B7\nLos Angeles Times\n4/15/93\nLos Angeles Times\n4/15/93\nRUSSIA: U.S. Asking Allies to\nPromise New Increases in Aid\n( inued from B5\ntheWorld Bank and the European\nThe Administration is also ask-\nlished before any money is trans-\nBank for Reconstruction and De-\ning the other industrial powers to\nferred.\nvelopment would contribute $2 bil-\ncontribute to a multinational proj-\n$6 billion in a fund to help\nlion.\nect to dismantle the nuclear arse-\nstabilize the ruble. This would be a\nA senior U.S. official said the\nnal of the former Soviet Union. The\nrenewal of a central element in the\nfund was designed in response to\nproject is built on an $800-million\ninternational plan that the George\nsuggestions from Russian Presi-\nfund already earmarked for that\nBush Administration presented a\ndent Boris N. Yeltsin and his\npurpose in the U.S. Defense De-\nyear ago to funnel $24 billion in aid\ndeputy prime minister for finance,\npartment budget.\nto Russia, much of which has not\nBoris G. Fyodorov. The Russians\nDevelopment of the aid plan has\nbeen made available because of the\nnoted that a major worry among\ngrown more urgent over the past\nslow pace of economic reform there.\ntheir compatriots is that the huge\ntwo months as the Group of Seven\n$1 billion from the World Bank\nmembers came to see it as their\nfor economic development projects.\nbiggest possible contribution to\nUp to $10 billion in bilateral aid\n'The United States can't\nhelping Yeltsin emerge successful-\nfrom individual countries, most of\nly from the April 25 vote in Russia\nit in the form of export credits-\ncarry the whole burden on\nthat amounts to a vote of confi-\nloans to finance Russian purchases\nthese things, and we\ndence on him and his policies.\nof goods from the countries that\nextend the aid.\nhave to find new ways to\nYeltsin said Wednesday that if\nless than half of the voters express\n$15 billion in already an-\nshare the job.'\nconfidence in his presidency and if\nnounced debt rescheduling. to help\nvoters decline to set early elections\nMoscow get out from under the\nA SENIOR U.S. OFFICIAL\nfor his opponents in Russia's Par-\ncrushing burden of paying back the\nliament, he would resign. The\n$80-billion foreign debt it inherited\nleaders at the conference here fear\nfrom the defunct Soviet Union.\nstate industries employing hun-\nthat whoever replaces him would\nThat adds up to $39 billion, but\ndreds of thousands of workers-\nbe likely to step back from his\nWaigel and other top officials said\nand often dominating the econo-\npolicy of political and economic\nit would be deceptive to rely on\nmies of smaller cities-could col-\nreform.\nthat total because it mixes different\nlapse in the face of economic\n\"I made the point that President\ntypes of aid-grants, loans and\nreforms.\nYeltsin was far superior to any of\ndebt relief-that do not have com-\n\"This program is targeted at\nhis likely successors in terms of\nparable dollar values.\nfirms with 1,000 or more employees\ncommitment to the market pro-\nAt the same time as they worked\nto try to respond to that\ncess,\" Secretary of State Christo-\non the international plan, the min-\nperceived problem,\" the official\nisters were presented with a sepa-\nsaid.\npher told reporters during a break\nrate U.S.-led effort to commit $4\nHe said the Administration also\nin Wednesday's nearly five-hour\nsession at the New Otani Hotel.\nbillion for a privatization fund to\nhopes the unusual structure of the\nAlthough none of the assistance\nhelp large state industries, which\nprogram-with the U.S. contribu-\ncould reach Russia in the 10 days\nonce took orders directly from the\ntion seen as \"seed money\" to\nbefore the vote, the United States\nformer Communist government.\nprompt similar contributions from\nand the others believe such a\nconvert to privately led, profit-\nJapan, Germany and other coun-\nmaking enterprises operating un-\ntries-might become a pattern for\ncommitment of support would\nder the laws of supply and demand.\nfurther joint aid packages.\nprobably bolster Yeltsin's pros-\nUnder the Clinton Administra-\n\"The United States can't carry\npects by casting an optimistic aura\ntion plan, the United States would\nthe whole burden on these things,\nto his presidency.\ncontribute $500 million, other na-\nand we have to find new ways to\nTimes staff writer Sam Jameson\ntions would add $1.5 billion and\nshare the job,\" he said.\ncontributed to this report.\n2/2\n109\nNAACP Directo\nGets Taste of New Job, M ood i\n.A.\nCivil rights: The organization's new leader\nAfrican-American and Latino students at the Riley High\nand Tuesday he began to question all the predictions of\nSchool-South campus, a school for pregnant teen-agers\nviolence. He met with community leaders, talked with\ncalls the city a 'barometer' for the rest of the\nand young mothers.\ngang members about the truce, and consulted with local\nnation.\n\"It's going to be a challenge,\" Chavis said later. \"It's an\nNAACP chapter presidents.\nindication of just how hard we have to work.\"\n\"The national perception is one that officials in Los\nThe new NAACP executive director said that revitaliz-\nAngeles seem to be relying on law and order to solve its\nBy JOHN L. MITCHELL\ning the organization is one of his goals. He started his\nracial and economic inequalities,\" he said. \"This looks like a\nTIMES STAFF WRITER\nNAACP stewardship in Los Angeles because the eyes of\nmini-Desert Storm. But South-Central Los Angeles is not\nAt an \"April Baby Shower\" for pregnant teen-agers, the\nthe nation are focused on the city as a jury deliberates in\nsome desert in Saudi Arabia.\"\nRev. Benjamin F. Chavis Jr. asked a question that\nthe federal trial against the officers accused of beating\nAlready some of his comments have angered local\nRodney King.\nleaders. Police Chief Willie Williams got word to him that\ndemonstrated how much work may be ahead for the new\nChavis said he wanted to find out first-hand whether the\nhe was upset with his remarks about desert storm.\nexecutive director of the oldest civil rights organization in\ncity was really about to explode.\nChavis, who succeeded the retiring Benjamin L. Hooks,\nthe country.\n\"I have not seen any indication of violence,\" he said.\nsaid he came to Los Angeles because he felt the city has\n\"How many of you have heard of the NAACP?\" he\n\"Not one gun. I heard no gunshots.\"\nbecome a \"barometer\" of whether or not the nation will\nasked.\nBut after two peaceful nights in Los Angeles housing\nbegin to focus its attention on the needs of the poor in inner\nOnly a few hands raised in the audience of nearly 100\nprojects-Imperial Courts and Jordan Downs-on Monday\nPlease see CHAVIS, B4\nCHAVIS: NAACP Director Tours L.A.\nContinued from B1\nbegin to \"bridge the needs of the poor' with\nFred Williams, a former gang member who now\ncities.\nthose of working- and upper-class African\noperates a program helping them. \"He has been\nWhile the attention is on the potential for\nAmericans. Eventually. he said the organization\nin the trenches for a long time. There is\nrenewed rioting in Los Angeles, he said there is\nwill expand to include Latinos and Asian Amer-\nsomething inside him that drives him to stay\nalso an important struggle going on in Washing-\nicans.\nconnected to the roots. That is why he can relate\nLos Angeles Times\nton where a Senate filibuster has blocked the\nChavis said he was invited to meet with\nto the folks in South-Central Los Angeles.\"\npresident's jobs package.\nPresident Clinton after his selection as director,\nAt the gift-giving ceremony for the young\n\"We want to send the message to Washington\nbut he turned it down and flew here.\nmothers, Chavis told the audience that they are\n4/15/93\nfrom the hood in Los Angeles that people want\n\"Thats why I came here,\" he said. \"I could be\nthe future of the NAACP.\njobs,\" he said.\nin a hotel, but that's not my style.\"\n\"You are the future of the race,\" he said. \"We\nSince 1985, Chavis has been an executive\nwant to make sure your insights are part of the\nA\nt\nImperial Court housing project where\ndirector and chief executive officer of the\nNAACP.\"\nChavis spent his first night, many of the\nCommission for Racial Justice, affiliated with\ngang members were not talking about the\nthe 1.7-million-member United Church of\nH\ne told the young group not to let the juries\ntension of the verdicts. They worried about the\nChrist.\ndecision change their course they have\nlack of jobs.\nBut he gained national attention as an activist\nchosen for themselves.\nGeorge Bogard. 33. who was recently released\nback in the 1970s while protesting school\nfrom prison, said the frustration over the lack of\ndesegregation in North Carolina.\n\"No matter what the verdict don't lose hope.\"\nChavis was arrested as one of the a group of\nhe said. \"Don't let a jury determine whether you\nwork could ignite unrest.\n\"We want to work, we want jobs,\" he said.\nactivists called the \"Wilmington 10.\" He was\nare going to be successful in life or not.\"\n\"Most of the guys out here have become so\nconvicted of arson and conspiracy to commit\nThe message was well received.\ndesperate that they don't care about them-\nassault and sentenced to 34 years in prison. He\n\"Most people put us down because we are\nselves.\"\nserved four years before the convictions were\nteen-agers and pregnant,\" said Tilesha Pearson,\nAs part of his mission, Chavis said he wants to\noverturned by a federal appeals court.\n17. \"He is telling us don't forget your education.\nexpand the traditional focus of the NAACP to\n\"Ben Chavis is not a traditional leader,\" said\nBe somebody. It's good to hear that.\"\nKing Defendants Seek\nPay-for-Talk TV Deal\nMedia: The four on trial will most likely speak after the\nverdicts on the tabloid news show 'A Current Affair'-for a\nprice. Their attorneys defend the move.\nordeal.\nBy DANIEL CERONE\nOn the advice of Beck-and to the\nTIMES STAFF WRITER\nchagrin of the national news media-\nA\nfter the verdicts are reached in\nthe once outspoken defendants have\nthe Rodney G. King civil rights\nkept mum during this week's jury\ncase, don't expect to see the four\ndeliberations. At the same time, Beck\ndefendants making statements all over\nhas been working to secure a deal with\nthe place. The four men on trial have\na TV tabloid or talk show.\nmade themselves available to just one\nBeck formally represents Koon, Lau-\nnews outlet-for a price. They will\nrence M. Powell and Timothy E. Wind.\nmost likely take their case to the\nTheodore J. Briseno has his own agent,\ntabloid news show \"A Current Affair.\"\nbut Briseno's attorney confirmed that\nThe idea to market the four was born\nhis client hopes to be included in the\nin the mind of Sgt. Stacey C. Koon, one\ndeal.\nof the defendants. He recalled reading\nAnd the attorneys are being over-\nthat Amy Fisher had received $40,000\nwhelmed by comments and questions\nfor an exclusive interview with a TV\nfrom reporters suggesting that the four\ntabloid show after she was convicted of\ndefendants are trying to turn a tragic\nassault for shooting her alleged lover's\nevent into personal gain.\nThe defendants declined to comment\nwife in the head.\nfor this story. Their attorneys, who do\nKoon figured that he and the other\nnot represent the police officers in their\nthree defendants-who haven't re-\nmedia endeavors, strongly disagree\nceived their LAPD salaries for two\nthat their clients are doing any wrong\nyears, and whose collective attorneys'\nby trying to capitalize on the King case.\nfees and costs range near $1 million-\n\"We keep getting these implications\ncould do at least as well as Fisher if\nby journalists that there's something\nthey offered themselves as an exclusive\nimproper about what they're doing,\"\npackaged deal.\nsaid Harland W. Braun, Briseno's attor-\nSo last week Koon contacted Dan\nney. \"[The defendants] try to make\nBeck, vice president of the Hannaford\nsomething off the very publicity that\nCo., a public relations firm whose\ndestroyed their lives, and everyone is\nclients include the California Trucking\ngoing nuts. Up till now, the journalists\nAssn. and former Gov. George Deuk-\nhave taken their interviews for free\nmejian. Last October Beck had helped\nand then charged advertisers to make\nKoon arrange interviews and talk\nmoney off their broadcasts. It's so\nshows for a book Koon wrote about his\nPlease see MEDIA, B11\nLos Angeles Times\n4/15/93\n1/2\nMEDIA:\nDefendants\nMake Deal\nContinued from B8\nhypocritical it's unbelievable.\"\n\"They've been cast aside by\ntheir departments, they have not\nreceived a salary for two years, and\nthe press has savaged them.\" said\nIra Salzman, Koon's attorney. \"The\npress coverage has been uniformly\nnegative. As a result, they've got\nan obligation to their families. I\nsupport their decision wholeheart-\nedly.\"\nLast week, similar nationwide\ncriticism mounted against mem-\nbers of the Spur Posse-current\nand former Lakewood High School\nstudents accused of raping or mo-\nlesting young girls and keeping an\naccount of their sexual conquests.\n'They've been cast aside\nby their departments,\nthey have not received a\nLARRY DAVIS / Los Angeles Times\nsalary for two years, and\nSgt. Stacey C. Koon is flanked by defense attorneys Paul De Pasquale, left, and Michael P. Stone.\nthe press has savaged\nthem.\nThey've got\n\"stratospheric.\" But he did say the\nstory, as I see it [is] you're going\nAttorney Michael P. Stone said\nobligation to their\ntotal would be more than the\nagainst-I don't like the term po-\nthat his client, Powell, has \"always\n$40,000 reportedly paid to Amy\nlitically correct-but against the\nbeen interested in trying to change\nfamilies. I support their\nFisher.\naccepted truth,\" Braun said. \"You\npublic opinion about him. And he\ndecision wholeheartedly.'\nThere has also been talk of\nhave a black man who was appar-\nhasn't been paid a dime for any-\nspeaking engagements and TV\nently beaten by four white people.\nthing he's done, appearing on local\nIRA SALZMAN\nmovie deals in the wake of the\nBecause of our history of racism in\nnews programs. network news\nKoon's attorney\nverdict, although to this point Hol-\nthis country, we assume it has to be\nprograms. Larry King.\"\nlywood has been reluctant handle\na racial beating. And therefore\nThe network news magazines\nthe case.\nthese are bad guys. And if they're\nSome of them were paid $1,000\nwere locked out because, as a rule.\n\"I think there are Hollywood\nnot bad guys, then America is\neach for appearances on \"The\nthey don't pay for guests. Neither\npolitics involved that don't want to\nwrong. So there's an incredible\nMaury Povich Show\" and \"The\ndo \"The Oprah Winfrey Show,\"\ncast these officers in any positive\nvested interest in vilifying these\nJane Whitney Show.\"\n\"Donahue\" or \"Geraldo.\" those\nlight,\" Beck said.\nguys.\"\nBeck said that the police officers\nNor have consumers appeared to\nThere appears to be hope that by\nprograms say.\nare selling their first post-verdict\nbe terribly interested. None of the\nchoosing their own forum-either\nAmong the tabloids, \"Inside Edi-\ninterview-which will remain ex-\nmajor publishers bought Koon's\na talk show hosted by a friendly\ntion.\" which ran an earlier story\nclusive to the buyer for a period of\nbook. \"Presumed Guilty: The\ninterviewer, or a tabloid show\nabout Briseno's ex-wife, denied\ntime before the officers can give\nTragedy of the Rodney King Af-\nwhere they won't have to face an\nseeking an interview with the\nfurther interviews-for two rea-\nfair.\" Published by the small Reg-\naggressive studio audience-the\nofficers. \"Like any other news\nsons.\nnery Gateway in Washington,\npolice officers can tip the balance\norganization, we'd be interested in\n\"One, they feel that they can get\nKoon's book has sold a less than\nof what they perceive to be sensa-\nhaving them on, together or sepa-\ntheir story out. a story that has not\nimpressive 25,000 copies in six\ntional press coverage in their fa-\nrately,\" spokeswoman Allison\nbeen completely told, either\nmonths.\nvor.\nKossow Felix said. \"But we are not\nthrough the media or by them as\n\"To do something in the popular\nSeveral sources said that \"A\ninterested in paying for an inter-\nndividuals,\" Beck said. \"And two,\nmedia, these guys have to over-\nCurrent Affair\" was the tabloid\nview with them.\"\nthey need some money to help\ncome incredible prejudices,\" said\nshow the officers were headed for.\nEither way, how \"exclusive\" an\nrecoup their losses.\"\nBraun. whose client, Briseno, em-\nThe sources said Beck had made a\ninterview the officers will provide\nBeck would not say how much\nployed his agent six months ago to\nverbal agreement with the syndi-\nis up for debate-until now the\nhis clients would receive for their\nrepresent him to Hollywood. But\ncated show and was working\nofficers have made themselves\nexclusive interviews. He balked at\nBriseno was unable to strike up\nWednesday to close the deal. A\navailable to both TV and print\nhe mention of a six-figure sum for\nany deals with publishing houses\nspokesman for \"A Current Affair\"\nreporters.\nhe four, of them, as rumors have\nor production companies.\nwould only say \"I'm not at liberty\nTimes staff writer Jane Hall contributed to\nuggested, calling that amount\n\"The problem with selling this\nto discuss it.\"\nthis story.\n4\n2/2\nLos Angeles Times\n4/15/93\n112\nMEDICINE\nMinnesota Model Health Plan\nIrks Doctors, Pleases Patients\nBy RHONDA HILLBERRY\nadults. The emphasis is on getting\nSPECIAL TO THE TIMES\npeople to the doctor regularly.\nParticipants may choose from more\nST. PAUL. Minn.-Health care re-\nthan 25,000 providers, who must accept\nform has arrived for Laura and Jay\nMinnesotaCare patients if they already\nLaFavor, who live 25 miles from the\ntake patients from public programs,\nnearest gas station in the northern\nsuch as state medical assistance and\nMinnesota town of Hovland.\nPublic Employee Health Plans. More\nFor a premium of $32 a month, they\nthan 80% of the state's licensed physi-\nnow have family health insurance.\ncians participate in such plans.\nThey can go to the doctor for the first\nDoctors are reimbursed by the De-\ntime in years, and it's free. For $3 they\npartment of Human Services using the\ncan get a prescription filled. For $25, a\nsame billing procedures as state medi-\npair of glasses.\ncal assistance.\nTheir insurance plan? It's called\nSo far, more than 45,000 Minnesotans\nMinnesotaCare, the continental United\nare enrolled, and the state estimates up\nStates' most comprehensive state-sub-\nto 180,000 people, or one-third of the\nsidized health plan now in operation.\nstate's uninsured, could qualify under\nWhen it created the plan last year,\nthe guidelines. If health costs drop. or\nthe Minnesota Legislature targeted the\nmore revenue sources are found.\n10% of the state's population too poor\nguidelines could be liberalized to make\nto pay for private health insurance but\nmore uninsured residents eligible.\nnot poor enough to qualify for state\nMinnesotaCare is expected to cost\nmedical assistance.\n$326 million a year by 1997, offset by\nWhile it remains controversial, espe-\nenrollees' premium payments of $50\ncially among physicians, the plan has\nmillion. The remainder would be paid\nbecome a model for health reformers\nby the cigarette tax and provider tax.\nsince enrollment opened last October.\nTHE OBJECTIONS. Doctors. clinics\n\"I think it's a cautious but realistic\nand hospitals call the 2% provider tax\nplan.\" said Kala Ladenheim, senior\n\"simply unfair,\" said Kirk Johnson.\nresearch associate for the Intergovern-\ngeneral counsel for the American Med-\nmental Health Policy Project at George\nical Assn. in Chicago.\nWashington University.\nIt hasn't\nThe Minnesota Medical Assn. says\npromised more than it can deliver and\nthe program should be designed to\nwas one that they were able to offer\ncover all of the uninsured and favors a\nright away.\"\nbroad-based tax. something Republi-\nTHE PLAN. MinnesotaCare is paid for\ncan Gov. Arne Carlson opposes. \"The\nby a 5-cent per pack cigarette tax and a\ntax falls heaviest on primary care\n2% revenue tax on health care provid-\nspecialists in small clinics who already\ners. Enrollees also pay monthly premi-\nrun their offices on very thin margins,\"\nums, based on their income. Families\nsaid A. Stuart Hanson, MMA president.\nwith incomes up to 275% of federal\nThe provider tax kicks in gradually.\npoverty guidelines are eligible. For a\nHospitals and surgical centers had to\nfamily of two, that's $25,920. For a\nante up as of Jan. 1. Other providers,\nfamily of four, it is $39,360, and for six\nwholesale drug distributors. HMOs and\nor more, $52,800. Premiums can range\nnonprofit health service groups will be\nfrom $20 to more than $250 a month.\ntaxed later.\nMinnesotaCare covers doctor visits,\nOther criticisms: That premiums are\nlimited dental and vision care, immuni-\ntoo high for middle income families and\nzations, diagnostic tests and X-rays,\nthat the hospitalization benefits are\nmost prescription drugs, certain mental\ninadequate.\nhealth and home care, plus outpatient\n\"It's a large Band-Aid. but it's not\nsurgery. emergency room services. and\nreally the solution,\" Hanson said.\nup to 10 hours of alcohol or chemical\nBut families who are enrolling think\ndependency treatment a year.\nthe program is a big step forward.\nThere are limits. It does not cover\n\"For the past five years. I haven't\nnursing home or catastrophic care.\nbeen able to get my teeth fixed, or go to\nHospitalization coverage will begin in\nthe eye doctor.\" said Laura LaFavor.\nJuly, but is limited to $10,000 a year for\n\"I'm thrilled with the idea of it.\"\nLos Angeles Times\n4/16/-\n113\nSCIENCE/ATMOSPHERE\nWider Damage to the Earth's Ozone Layer Is Feared\nBy MARK A. STEIN\nover the South Pole, develop only when\nlevels over the Northern Hemisphere in\nflows might explain why high levels of\ntions produce ozone-eating chlorine\nTIMES SCIENCE WRITER\nshifting winds cut off this replenishing\nlate February and early March were 10%\nchlorine monoxide are measured over\nmonoxide.\nflow, the scientists believe.\nbelow levels at the same time last year.\nboth poles at certain times without pro-\nWind patterns usually cause such\nS\ncientists studying atmospheric ozone\nIf confirmed by later observations, this\n\"This is twice the year-to-year average\nducing the expected drop in the ozone\nclouds to linger longer over the Antarctic\ndepletion have long believed that\nwould indicate that ozone loss over the\nfluctuation.\" Waters said, \"and last year\nlevel, a paradox that has long perplexed\nthan the Arctic. This, scientists said, is\npollutants ravage the Earth's protective\npoles already could be depleting the\nwas already low.\"\nscientists.\nwhy an ozone hole hovers over the South\nozone layer only at certain times of the\nprotective form of oxygen in the upper\nOzone is a lung-searing pollutant at\nPole while the ozone is merely thin over\nyear, when sunlight and other conditions\natmosphere over a much wider area than\nlow altitudes, but in the upper atmos-\npreviously believed.\nM\nartyn Chipperfield of Cambridge\nthe North Pole.\nare just so.\nphere it absorbs solar ultraviolet rays\nUniversity said the finding about\nThis year, however, the Northern\nNow, however, satellite measurements\nthat cause skin cancer and cataracts.\noe Waters, the National Aeronautics\nchlorine, coming at the beginning of what\nHemisphere experienced a particularly\nmade by scientists at the Jet Propulsion\nJ\nChlorine-based industrial gases, such as\nscientists worry will be a particularly bad\ncold winter, letting these \"polar strato-\nLaboratory in Pasadena and at Edin-\nand Space Administration scientist who\nheads a team of scientists using the Upper\nthose found in refrigerators and some fire\nspring and summer for Earth's atmos-\nspheric clouds\" form earlier and last\nburgh University in Scotland indicate\nAtmosphere Research Satellite to mea-\nextinguishers, destroy ozone.\nphere. is \"an invaluable aid in trying to\nlonger over the Arctic-allowing the\nthat the ozone-destroying process oper-\nsure atmospheric chemistry, called the\nWaters and his team discovered that\nunderstand and quantify the evolution of\ncreation of more chlorine monoxide.\nates for extended periods.\nnew data \"a significant reason for con-\nall of the chlorine in the atmosphere-\nstratospheric ozone.\"\nWaters confirmed that the atmospheric\nThe data, published in today's edition\ncern.\"\nless than 20% of which occurs natural-\nUntil now, it was believed that chlorine\nsatellite detected high levels of that gas\nof the British journal Nature, suggests\nHowever, he said too little is known\nly-is converted to an ozone-eating form\nassumed its highly reactive form only\nfrom early December through early\nthat the potentially dangerous ozone loss\nabout atmospheric chemistry to say\nsuch as chlorine monoxide. In the past\nwhen exposed to sun for extended periods\nMarch, or about a month longer than\nmay be masked in the winter and early\nwhether this is the first indication of a\nscientists believed at least part of the\nduring longer spring and summer days\nnormal. A predictable drop in ozone over\nspring by the influx of ozone from\npotentially catastrophic trend or merely a\nchlorine bonded to other elements to\nand to immense clouds of water and nitric\nthe hemisphere has since been measured\nelsewhere on the planet.\nstatistical quirk.\nform inert combinations.\nacid. Ice crystals in the clouds provide a\nby the World Meteorological Organiza-\nOzone holes, such as those observed\nThe Nature article says that ozone\nEvidence of the replenishing ozone\nsurface on which certain chemical reac-\ntion.\nLos Angeles Times\n4/15/93\n114\n115\nYeltsin Warns He'll Quit if He Loses Vote\nRussia: If Parliament also loses, he will remain until new elections can be held, he asserts.\nBy CAREY GOLDBERG\nrhetorically at a Kremlin press conference. \"It's\nreplace the messy patchwork of new and outdated.\nTIMES STAFF WRITER\nprobably time for him to make up his mind.\"\nSoviet ideas now providing the shaky basis for the\nUnder the Russian constitution, if Yeltsin resigns,\ncountry's laws.\nM\nOSCOW-For the first time since he launched a\nRutskoi takes over, a development that Yeltsin\nThe new constitution will carry Western-style\ngrueling pre-referendum campaign last week, a\nappears determined to avoid.\nguarantees of rights and freedoms for Russia's citizens,\nvisibly tired Russian President Boris N. Yeltsin laid\nmake the country a \"full-blooded federation\" and\nout his plans for the various possible outcomes of the\nIt was unlikely, however, that Rutskoi would agree\nThursday, April 15, 1993\nprovide clear divisions of power that would prevent a\nnationwide poll set for April 25, reiterating that he\nto a request from Yeltsin to resign. The former air\nrepetition of the current confusion over who controls\nwould quit if the vote goes against him but in favor of\nforce pilot, general and hero of the Afghanistan war\nwhat.\nthe conservative Parliament.\nhas argued that he too was chosen by the Russian\nYeltsin broached the idea that his revamped Parlia-\nIf a majority of the Russians who go to the polls vote\npeople and will continue to serve despite his friction\nment's upper chamber, to be known as the Federation\nagainst him and for the Congress of People's Deputies\nwith the president.\nCouncil, could pass the constitution once Russia's 88\ndominated by his opponents, \"the president will\nConsidered a centrist, Rutskoi has repeatedly blast-\nregions, republics and provinces had approved it.\nresign,\" Yeltsin said, implying that he would do so\ned Yeltsin's reforms as overly radical and poorly run.\nWith surprisingly rosy economic figures, Yeltsin\nimmediately.\nHe has also complained that the president's inner\nalso set about trying to prove that the economy is\nIf, however, they reject him and also vote against\ncircle allows him no access to real power.\nalready beginning to stabilize after the initial shock of\nthe Parliament, he will remain president until new\nthe painful reforms he unleashed at the beginning of\nAsked whether he was requesting Rutskoi to resign,\nelections can be held.\n1992.\n\"There must not be any power vacuum allowed this\nYeltsin said that \"for ethical considerations, I must tell\nHe said inflation had dropped from 27% a month in\ntime,\" he said.\nhim that not in public but in private, which I will do.\"\nJanuary to 17% a month in March, and was slowing\nReferendum voters will be asked four questions:\nThe Russian president also announced the elements\nstill further. The drop in Russian production, which\nwhether they trust Yeltsin, whether they support his\nof the new program he plans to implement if Russia's\ntotaled about 40% over the last two years, has stopped,\neconomic reforms, whether they want early presiden-\n108 million voters back him in the referendum.\nhe said.\ntial elections and whether they want early elections to\n\"If the president wins support at the referendum, his\n\"We have the basis to get out of this crisis,\" he said.\nthe Parliament.\nactions will be more decisive,\" he said with a\n\"There will be no second shock like the one last year.\"\nYeltsin, who has urged Russians to vote yes on all\nsignificant smile.\nIntent on carrying through his reforms, Yeltsin\nfour questions, said he expects the referendum's\npushed for the referendum as a last-ditch way to\nIn the latest of a rash of promises he has made\nWASHINGTON ANGELES TIMES\n'How can a vice president work if he\nresults to mean that elections will be held this fall\nresolve the power struggle between himself and the\nvoters, Yeltsin announced that the millions of Russians\nmore conservative Parliament.\ndisagrees with the reforms done by the\nrather than in the fall of 1995 for the Parliament and in\nwho now only have the use of garden plots on state\nLeaders of Russia's 21 semiautonomous ethnic\n1996 for the presidency.\npresident? It's probably time for him to\nland would soon become their owners.\nWith just days left until the vote that may decide his\nrepublics agreed Wednesday to take part in the April\npolitical fate, Yeltsin, triple-tier bags under his eyes\nHe also warned that he would crack down on\n25 vote. Yeltsin met with them and afterward\nmake up his mind.'\nand his speech carrying its usual slight slur, also said\nbusiness people who have slipped billions of dollars of\ndeclared: \"I was worried beforehand that some\nhe would ask for the resignation of his backbiting vice\nprofits abroad, saying they would face criminal\nrepublics might not take part, but I no longer have that\npresident. Alexander V. Rutskoi, an increasingly vocal\ncharges.\nworry.\"\nBORIS YELTSIN\nCommenting on Vice President Alexander V. Rutskoi, an\nThe republics range from tiny tribal territories in\ncritic of his reforms.\nGiving voters a major hint about his long-term plans\nIncreasingly vocal critic of his reforms\nthe northern Caucasus to the major oil-producing\n\"How can a vice president work if he disagrees with\nfor Russia, Yeltsin also announced the basic outline of\nregion of Tatarstan and the giant diamond-rich\nthe reforms done by the president?\" Yeltsin asked\nthe new constitution with which he proposes to\nrepublic of Yakutia in Siberia.\nYeltsin Agrees to Visit Japan;\nShift on Kurils Issue Foreseen\nBy CAREY GOLDBERG\nStates dropped an atomic bomb on\ndays ago, when the Russian news\nand SAM JAMESON\nHiroshima in 1945. The Russian\nagency Itar-Tass reported that he\nTIMES STAFF WRITERS\ngovernment inherited the diplo-\nmight be willing to visit before the\nmatic impasse with the breakup of\nannual Group of Seven advanced\nM\nOSCOW-In an announce-\nthe Soviet Union in 1991.\nindustrial nations' economic sum-\nment that astonished Tokyo,\nOn Wednesday. Miyazawa an-\nmit in Tokyo in July.\nRussian President Boris N. Yeltsin\nnounced that Japan will add $1.82\nOn Wednesday, the Russian\nsaid here Wednesday that he is\nbillion to its aid to Russia-bring-\nleader told a Kremlin news confer-\nwilling to visit Japan in late May.\ning its total pledges to $4.6 billion.\nence that \"an opportunity has ap-\nPrime Minister Kiichi Miyazawa\nBut Japan has insisted that only a\npeared to make an official visit to\nimmediately welcomed the propos-\nresolution of the territorial dispute\nJapan since Japan's prime minister,\nThursday, April 15, 1993\nal, which was delivered to him in\ncan open the door to full-scale\nMr. Miyazawa, unequivocally stat-\nTokyo by Russian Foreign Minister\nassistance.\ned that the two issues will not be\nAndrei V. Kozyrev. He asked Ko-\nAll of the aid that Japan has\ndirectly linked-that is, that of\nzyrev to work out details with his\npledged so far has been given\nbilateral cooperation, economic co-\nJapanese counterpart, Kabun Mu-\nwithin a framework of internation-\noperation and territorial issues.\nto.\nal cooperation with other advanced\nMiyazawa, in fact. has made no\nThe announcement indicated\ncountries, and often only after\nsuch statement-at least not in\nthat Yeltsin sees the possibility of\npressure from the United States.\npublic. But Foreign Minister Muto\nsignificant progress in breaking a\nUntil now, the territorial conflict\nsaid at a news conference Tuesday\n48-year political deadlock that has\nhas appeared insoluble. Last Sep-\nthat Japan would treat \"bilateral\nkept Russian-Japanese relations\ntember. Yeltsin canceled a sched-\nproblems as bilateral problems, and\ncool and Japanese aid to Russia\nuled trip to Japan four days before\naid to Russia as aid to Russia-su-\nrelatively modest.\nhe was due to arrive when it\nperseding all other factors.\" Muto\nSpecial economic zones and joint\nbecame clear that a visit would\nadded that Japan would continue to\nprojects already under way in the\nbring no agreement.\ninsist on the return of the islands.\nRussian Far East have been hin-\nBefore the aborted visit, Japa-\nKozyrev initiated the subject of\ndered by the inability of the two\nnese aid to Russia of up to $26\nYeltsin's trip in what originally had\ncountries to agree on the fate of\nbillion had been mentioned unoffi-\nbeen billed only as a \"courtesy\nfour islands seized by the Soviet\ncially. If Russia and Japan can\ncall\" by declaring that Russia con-\nAssociated Press\nUnion after World War II. The\nsolve their differences, the poten-\nsiders \"a solution to the territorial\nislands are north of Japan's north-\ntial for economic cooperation is\ndispute and normalization of diplo-\nJapan Prime Minister Kilchi Miyazawa, right, greets Russian Foreign Minister Andrei V. Kozyrev in Tokyo.\nWASHINGTON ANGELES TIMES\nernmost main island of Hokkaido\ntremendous. Russia's Far East\nmatic ties\" with Japan to be \"im-\nand at the southern end of the\nholds vast reserves of raw materi-\nportant.\"\nforeign ministers,\" the Japanese\n\"late May,\" Kozyrev told Miyaza-\nty over the islands-and leave\nKuril chain.\nals-from wood to gold-that could\n\"Efforts to work toward those\nofficial added.\nwa only that a visit in May is \"one\nopen the date for their future\nAlthough the Soviet Union and\nsupply Japan's industry. At the\ngoals also are important.\" a Japa-\nMuto and Kozyrev, who is visit-\npossibility.\"\nreturn. Yeltsin, however, declared\nJapan restored diplomatic relations\nsame time, the region could jump\nnese Foreign Ministry official\ning Tokyo for a conference on aid\nShortly before Yeltsin enraged\nthat even that concession was\nin 1956, the two nations never\nahead by decades with Japanese\nquoted Kozyrev as telling Miyaza-\nto Russia, are to meet tonight.\nMiyazawa and other Japanese\nunacceptable and blamed Japanese\nsigned a peace treaty ending a\ntechnological assistance.\nwa. But whether the territorial\nYeltsin said Kozyrev would set\nleaders by calling off his trip to\nstubbornness for forcing him to\nseven-day period of hostilities\nThere had been no hint that\nissue would be taken up during a\ndates for his visit while the foreign\nTokyo last September, Japan had\nwhen the Soviet Union declared\nYeltsin had changed his view of the\nback out of the planned visit.\nYeltsin visit \"is one of the details to\nminister is in Tokyo. Although\noffered to accept Soviet recogni-\nGoldberg reported from Moscow and\nwar on Japan after the United\nprospects for compromise until two\nbe hammered out by the two\nYeltsin mentioned a plan to visit in\ntion of Japan's ultimate sovereign-\nJameson from Tokyo.\nRabin, Mubarak Expect Talks to Resume\nDiplomacy: The two confer\nas pressure grows on the\nPalestinians to join Mideast\nnegotiations next week.\nBy MICHAEL PARKS\nTIMES STAFF WRITER\nISMAILIA. Egypt-With maximum\npressure now upon the Palestinians to re-\nturn to the Arab-Israeli peace talks,\nEgyptian President Hosni Mubarak and Is-\nraeli Prime Minister Yitzhak Rabin ex-\npressed confidence after meeting Wednes-\nday that the negotiations will resume next\nweek in Washington following a four-\nmonth break.\nRabin, intensifying that pressure, said\nIsrael is ready to negotiate with the Pales-\ntinians on all issues and make the compro-\nmises necessary to grant them self-gov-\nernment and reach a permanent settle-\nment-but only within the framework of\nthe Washington talks and not before the\nPalestinians return.\n\"After meeting President Mubarak, I am\nmuch more hopeful, and I stress hopeful,\nthat the peace negotiations will be re-\nsumed.\" Rabin said after more than three\nhours of talks with the Egyptian leader at a\nvilla on the Suez Canal.\nMubarak, who had met Tuesday in Cairo\nwith Yasser Arafat, chairman of the Pales-\ntine Liberation Organization, told Rabin\nflatly. according to participants in the\nmeeting, that the Palestinians will go to\nWashington on the terms worked out in re-\ncent weeks of complex bargaining. That\nwould free other Arab delegations to re-\nturn as well.\nLater, at a joint press conference with\nRabin, Mubarak qualified his confidence\nonly a bit as he, too, put the burden on the\nPalestinians for resumption of the talks\nand, by extension, their success or failure.\n\"There are very great hopes that the\ntalks will be held on [Tuesday]. and this\nwill be decided in the meeting of Arab for-\neign ministers) that will take place in\nDamascus on Friday and Saturday,\"\nMubarak said, basking in Egypt's role as a\nkey mediator. \"My big hopes are based on\nthe fact that all the factions want peace.\"\nSyria, Jordan and Lebanon are eager to\nresume the talks. But the Palestinians have\nsought major Israeli concessions, including\nthe return of almost 400 accused Islamic\nmilitants exiled last December, an easing of\nIsraeli restrictions in the occupied West\nBank and Gaza Strip and, above all, an im-\nproved offer on autonomy.\nResumption of the talks-and the Pales-\ntinians return-will be far more than pro-\ncedural. the two leaders suggested. The\nPalestinians will be accepting the realpoli-\ntik of the negotiations and acknowledging\ntheir inability to force concessions from\nRabin.\n\"If the Palestinians don't come or if they\npostpone their return, they will miss the\ntrain. for the international community,\nWASHINGTON EDITON LOS ANGELES TIMES\nThursday, April 15, 1993\n1/2\n117\nRabin, Mubarak Expect Talks to Resume\nnamely the United States, will turn its at-\ntories.\" But Israel will not go back to its\nthat they, too, would like to keep the talks\ntention to other world problems.' Mubarak\npre-1967 borders, he added.\nin virtually permanent session as long as\ndeclared, according to a participant in the\nRabin said Israel might reopen the West\nthey are serious.\ntalks.\nBank and Gaza Strip, permitting their resi-\nPalestinian sources in Cairo said after\nRabin assured Mubarak that Israel is\ndents to work in Israel, if Palestinian vio-\nArafat's visit that they had enough of a\nwilling to negotiate everything, including\nlence against Israelis stops.\npackage to justify returning to the peace\n\"territory for peace.\" with the Palestini-\nDetermined to get sustained negotiations\ntalks, though a heated debate is likely at\nans. either in an interim agreement on au-\nunder way again, Rabin said all the moves\nthe PLO executive committee session in\ntonomy or in an overall settlement that\nIsrael has been discussing with Egypt, the\nTunis today.\nwill follow. Palestinian negotiators have\nU.S. and the European Community will\nThese, according to Palestinian sources,\nbeen seeking such a commitment from Is-\ncome only after the negotiations resume.\nare some of the most important elements of\nrael as well as new proposals on self-gov-\n\"The Palestinians have already had a\nthat package:\nernment.\npeek in the envelope, but they get nothing\nAn accelerated timetable for return of\n\"Israel is willing to negotiate with the\nbefore sitting down,\" a senior Israeli offi-\nthe Islamic militants exiled to southern\nPalestinians on every issue,\" Rabin told\ncial said. \"We understand their need to\nLebanon in December.\nMubarak, according to an account of the\nknow what they will get. and we went as\nThe return home of 30 to 40 deportees\nmeeting. 'Everything is negotiable within\nfar as we could with Mubarak to assure\nfrom earlier years.\nthe terms of the original letter of invitation\nthem they will get it.\"\nAn Israeli statement pledging no\n[from the United States and Soviet Union\nIsraeli officials also expressed support\nmore deportations, though this will depend\nin October, 1991) and within the frame-\nfor the suggestion, originally made by Ra-\non the \"security situation.\"\nwork of the talks. Everything, every-\nbin but since taken up by the United\nRestatement of Israel's acceptance of\nthing.\"\nStates, for continuous negotiations once\nU.N. Security Council Resolutions 242 and\nReferring to the West Bank and Gaza\nthe Washington talks resume.\n338, including acknowledgment of \"legiti-\nStrip, seized in the 1967 Arab-Israeli war,\n\"This stop-and-go leads to a lot of\nmate Palestinian rights\" and the principle\nRabin told the press conference, \"We don't\nstalls,\" one Rabin aide remarked. \"Once\nof territorial withdrawal.\nwant to annex the bulk of almost 2 million\nwe start, let's keep going.\"\nTimes staff writer Kim Murphy in\nPalestinians residing in the occupied terri-\nPalestinian negotiators said in Jerusalem\nCairo contributed to this story.\nWASHINGTON EDITON ANGELES TIMES\nThursday, April 15, 1993\n2/2\n118\nComment\nEven as he proposed budget cuts in\nON BUSINESS\nother science and technology do-\nmains, Office of Management and\nSpace Age's\nBudget Director Richard Darman was\nan outspoken public champion of big-\nticket space expenditures. The reality\nGlory Fades\nthat much of the civilian space pro-\ngram-from the shuttle to the Hubble\ntelescope to the space station-was\nFrom View\npoorly conceived and unimpressively\nimplemented did not seem to matter\nmuch. Political inertia and a nostalgic\nsense of futurism-not a coherent\nBY MICHAEL SCHRAGE\nvision or cost-effective sensibilities-\ndetermined multibillion-dollar space\n1 35, merica's Space Age won't\nbudgets.\nA\nhave to suffer through the\nIndeed, with few notable excep-\nangst of a mid-life crisis.\ntions. such as Voyager, the post-\nThe reason is that the Space Age is\nApollo era is the story of the gold-\nalready dead. The technologies no\nplated porkification of space explora-\nlonger define our times, and the public\ntion with programs and promises that\nhas grown weary of multibillion-dol-\ndelivered less and less for more and\nmore. Go back and read the original\nlar celestial investments that yield\nminimal psychic or economic rewards.\ncost and performance claims for the\nSpace exploration has mutated from\nspace shuttle or the (literally) pie-in-\na central focus of America's science\nthe-sky proposals for commercial\nand technology dialogue into a pe-\nmanufacturing; you won't know\nripheral issue. Space is not a meaning-\nwhether to laugh or cry.\nful part of the ongoing industrial\nEven if we ignore the Challenger\ncompetitiveness debate, our technolo-\ntragedy-which we should not-the\ngy infrastructure discussions or even\nspace program had devolved into\nour defense conversion policy.\ninitiatives, budgets and numbers that\nTo be sure. America should contin-\nlacked credibility. That Challenger\nue to invest in satellite technologies\nwas seen internally as a horrible\nfor telecommunications and remote\naccident, rather than the direct result\nsensing-cheap, deep-space probes\nof chronic mismanagement, confirmed\nwould be nice too-but the ideal of\nthat self-deception had come to over-\nspace as a meaningful driver of scien-\nshadow introspection at the civil\ntific and industrial innovation is now\nspace program.\ndead.\nWhile the Clinton Administration\n\"Sadly. what is really dead is space\nhas kept on the highly regarded\nDaniel Goldin as administrator of the\nas something special-as something\nthat embodies American values and\nNational Aeronautics and Space Ad-\nself-image,\" says George Washington\nministration. it seems clear that space\nUniversity's John M. Logsdon. a long-\nPlease see SCHRAGE, B7\ntime observer of U.S. space policy. \"I\nthink we're back to an Eisenhower\nspace policy: We'll do space when it\nSTOCKS\n+11.61\nhas tangible benefits for the coun-\ntry.\nBut we are no longer going\nDOW INDUS. AVG.\n3,455.64\nto invest for preeminence. We clearly\nare not going to seek space leadership\nOIL\nBONDS\nPer barrel\n30-Year U.S.\nfor its own sake.\"\n-0.06\n-0.03\n\"The belief that space is the next\n$20.40\n6.75%\nfrontier and that America will follow\nits manifest destiny and lead mankind\nDOLLAR\nGOLD\ninto space is over,\" says Laurel L.\nIn yen\nNew York\nWilkening, the University of Wash-\n+0.48\n+2.00\n113.88\n$339.70\nington provost who oversaw the Bush\nAdministration's final Space Policy\nAdvisory Board report. \"We are still\nthe leader because it just so happens\nour competitors are in worse shape\nthan we are\nNo space-faring\ncountry seems able to do what it takes\nto keep people in space in a value-en-\nhancing way.\"\nMost important. perhaps, Wilken-\ning notes that space investments now\nseem decoupled from the initiatives\nand aspirations of tax-paying earth-\nlings: \"People do not see space as a\nsolution to the problems that they\nworry about.\"\nBefore the change in administra-\ntions, it would have been foolish to\nwrite an obituary for the Space Age.\n1/2\nThe Bush White House aggressively\nsupported the space program and\nproposed spending well over $30 bil-\nlion to build space station Freedom\nalone.\nLos Angeles Times\n4/15/93\n119\nSCHRAGE: Space Age's Glory Fades\nContinued from B5\nstructure, its technological infra-\ntry and boost aerospace over big-\nexploration is not being positioned\nstructure and is communications\nbudget programs that pour dollars\nas either a symbolic or substantive\ninfrastructure. You just can't turn a\ninto key Congressional districts.\ncenterpiece of America's techno-\nswitch off for five or 10 years and\n\"I wish this had happened 10\nlogical prowess. The space station\nyears ago instead of starting to\ndesign budget has-rightly-been\nhappen now,\" says Bruce Murray,\nslashed. Space is virtually ignored\n'Sadly, what is really\na Caltech professor who ran\nwhen the Administration champi-\nNASA's Jet Propulsion Lab in\nons its competitiveness agenda.\ndead is space as\nPasadena. \"We've put off a lot of\nSo Goldin has been furiously\nsomething special-as\nthings we shouldn't have.\nI\ntrying to restructure NASA as an\nwould rather see a $10-billion\nagency that justifies a $15-billion\nsomething that embodies\nNASA doing well than a $40-bil-\nannual investment. He bluntly dis-\nAmerican values and\nlion one filled with white ele-\nmisses the notion that either the\nself-image.'\nphants.\"\nromance or the importance of\nNASA's future lies somewhere\nspace has diminished.\nin between. Space will always\nJOHN M. LOGSDON\n\"Ending our commitment to\nGeorge Washington University\nexert a powerful influence on the\nspace would be a catastrophe. I\nAmerican imagination. But the\nbelieve that space is going to play a\nconstraints of our institutions, our\nsignificant role in the future of this\nsay that we'll come back to it when\nambition and our purse together\ncountry, and that this Administra-\nwe're ready.\"\nproclaim that space has ceased to\ntion recognizes that.\" he insists. \"A\nHowever, Goldin's visionary fer-\nbe America's future frontier.\nnation that is not a space-faring\nvor is tempered by programs that\nMichael Schrage is a writer, con-\nnation is a nation that will be in\nare being sold on the basis of being\nsultant and research associate at the\ntrouble in the next couple of dec-\nfast. cheap and cost-effective. He\nMassachusetts Institute of Technolo-\nades.\nThis nation critically\nstresses NASA initiatives that pro-\ngy. He writes this column Independ-\nneeds space for its ecological infra-\nmote technology transfer to indus-\nently for The Times.\nLos Angeles Times\n4/15/93\n2/2\n120\nComment\nthe Republican Party? If so, how\nironic, since it was Ronald Reagan\nwho abolished the Fairness Doctrine.\nON ENTERTAINMENT\nSpeaking of fairness. Howard, what\nabout Rush Limbaugh? Mouthpiece\nfor the Republican Party. Unofficial\nHey, Howard-\nmouthpiece, maybe. But big mouth-\npiece nonetheless; George Bush's\nI'm Supposed\novernight guest in the White House:\ncenterpiece of the President's box at\nlast summer's Republican National\nto Be Biased!\nConvention: introduced Bush at cam-\npaign rallies; mouths three hours of\ndaily attacks on Bill Clinton from his\nRadio commentator responds\nKFI radio microphone.\nto media critic's call for\nLimbaugh's half-hour show is\nshown twice daily on Channel 13.\nhim to resign after election\nHoward. I only get three minutes max\nto Democratic Party post.\nfor my commentary. You want fair-\nness? Give me 57 more minutes!\nBy the way, just to bend over\nBY BILL PRESS\nbackward to be fair, KCOP has invited\na conservative, Republican commen-\nH\noward Rosenberg: Get thee to\ntator to offer a counter-opinion on our\na shrink!\nnewscast. If we can find one with\nIn The Times recently, Ro-\nsomething to say.\nsenberg first says I'm the best com-\nmentator in L.A. Then he says I\nS\no what's the problem. Howard?\nYou think politics and media\nshould be fired, just because I was\ndon't mix? Pete Wilson has a weekly\nelected chair of the California Demo-\nradio broadcast. State Sen. Quentin\ncratic Party (\"To Stay or Not to Stay\nat KCOP?,\" Calendar, April 5).\nKopp has a weekly talk show on KGO\nradio in San Francisco. Last I heard.\nIs that schizophrenic, or what?\nWhat's wrong with my being chair\nTed Kennedy and Orin Hatch were\nof the Democratic Party and a TV\ndueling it out on CBS. Not to mention\nPat Buchanan. Pat Robertson. Ed\nnews commentator at the same time,\nHoward?\nKoch. Roger Hedgecock, Bruce Her-\nshensohn, Susan Estrich and count-\nAre you afraid my bias will show?\nless others. I'm hardly the first to stir\nWhere have you been for the last 12\nyears? After regularly bashing Ron-\nmedia and politics together. And be-\nald Reagan, George Bush and Dan\nsides, it's a good brew.\nI still don't get it. What's the\nQuayle, is there any doubt I'm a\nDemocrat? After speaking out for the\nproblem. Howard?\nYou don't think I should be actively\nenvironment, for affirmative action,\ninvolved in anything I talk about?\nfor civil liberties, for choice, for gay\nrights and against the religious right,\nSorry, Howard. You may perch in an\nivory tower. I refuse to. I serve on the\nis there any doubt I'm a liberal?\nboard of Treepeople and the Southern\nYou miss the point, Howard. It's the\nChristian Leadership Conference. I'm\nreporter's job, it's the anchor's job, to\nchair of the L.A. County Insurance\nbe objective, not the commentator's. I\nCommission. I read and record books\nget paid for being biased!\nfor the Braille Library. I don't just talk\nWhat's the problem. Howard?\nabout the issues. Howard. I care\nYou believe we have to be fair to\nenough about this community to go\nout and volunteer my time. And, yes,\nI'm involved in politics too.\nSpeaking of fairness,\nSpeaking of volunteer activities,\nHoward, what about Rush\nHoward: The position of State Chair\nLimbaugh? Mouthpiece for\npays nothing. So I still have to work\nfor a living. Which I will continue\nthe Republican Party.\ndoing, on KCOP-TV and KFI-AM\nUnofficial mouthpiece,\n(640).\nYou may get my attention, Howie\nmaybe. But big mouthpiece\nbaby. But you'll never get my job!\nnonetheless;\nmouths\nCommentator Press was elected this\nthree hours of daily attacks\nmonth to head the California Democrat-\non Bill Clinton from his KFI\nic Party.\nradio microphone.\n-\nLos Angeles Times\n4/19/02\n121\nComment\nL\neast-cost environmental planning\nhas won mainstream support dur-\ning the past few years. most notably\nthe Republican Party? If so, how\nON THE NATION\nin the air-quality field. where trading\nironic, since it was Ronald Reagan\nsystems have been established to\nwho abolished the Fairness Doctrine.\ncreate \"markets\" in which the right to\nSpeaking of fairness. Howard. what\nHow to Save\npollute is traded among polluters.\nabout Rush Limbaugh? Mouthpiece\nprivate investors and even specula-\nfor the Republican Party. Unofficial\ntors. The idea is that. given the right\nmouthpiece, maybe. But big mouth-\nEnvironment\nfinancial incentives. private compa-\npiece nonetheless: George Bush's\nnies will push to discover more effi-\novernight guest in the White House:\ncient ways to reduce pollution. cutting\ncenterpiece of the President's box at\nand Have Jobs\nthe overall cost of environmental\nlast summer's Republican National\nprotection.\nConvention: introduced Bush at cam-\nWith wetlands and wildlife regula-\nBy declaring the gnatcatcher\npaign rallies: mouths three hours of\ntions constraining new development\ndaily attacks on Bill Clinton from his\n\"threatened,\" Babbitt opened\naround the country, landowners and\nKFI radio microphone.\nbusiness interests are pushing similar\nthe door to some development\nLimbaugh's half-hour show is\ntrading ideas for land conservation.\nshown twice daily on Channel 13.\nunder certain conditions.\nFederal law in wetlands and wildlife\nHoward. I only get three minutes max\nprotection is especially rigid. Under\nthe Clean Water Act. wetlands cannot\nfor my commentary. You want fair-\nBy WILLIAM FULTON\nbe disturbed without a permit from\nness? Give me 57 more minutes!\nthe Army Corps of Engineers. even if\nBy the way, just to bend over\nbackward to be fair. KCOP has invited\nVENTURA. Calif\nthe land is privately owned. Under the\nruce Babbitt's decision to de-\nEndangered Species Act, private\na conservative. Republican commen-\nB\nlandowners cannot engage in any\ntator to offer a counter-opinion on our\nclare the gnatcatcher as\n\"threatened\" shows just how\nactivity that will disrupt the habitat of\nnewscast. If we can find one with\nmuch of a political minefield the\na species on the endangered list\nsomething to say.\nEndangered Species Act has become.\nwithout permission from the U.S. Fish\nS\n0 what's the problem. Howard?\nThe four-inch songbird is important\nand Wildlife Service.\nYou think politics and media\nbut aggressively protecting it could\nSome biologists have been looking\ndon't mix? Pete Wilson has a weekly\nshut down land development across a\nfor ways to assign a value to wetlands\nradio broadcast. State Sen. Quentin\nlarge swath of Southern California. As\nand wildlife habitats. Such a ranking\nsystem would permit prioritization.\nKopp has a weekly talk show on KGO\nan environmentalist with impeccable\ncredentials. he can't suggest tamper-\n\"triage\" of low-value land. and possi-\nradio in San Francisco. Last I heard.\ning with the environmental move-\nbly lead to trading systems similar to\nTed Kennedy and Orin Hatch were\nment's crown jewel-the Endangered\nthose used in air pollution. Developers\ndueling it out on CBS. Not to mention\nand the oil-and-gas industry are\nPat Buchanan. Pat Robertson. Ed\nSpecies Act. But as a Cabinet member\npushing to create a constituency for\nKoch. Roger Hedgecock, Bruce Her-\nworking for a President whose top\npriority IS economic recovery. the\nintroducing these concepts into the\nshensohn. Susan Estrich and count-\nClean Water Act and the Endangered\nless others. I'm hardly the first to stir\ninterior secretary must acknowledge\nthat the political underpinnings of\nSpecies Act. both of which are up for\nmedia and politics together. And be-\nU.S. environmental policy have shift-\nreauthorization.\nsides, it's a good brew.\ned.\nThe problem is that we don't know\n1 still don't get it. What's the\nBabbitt hopes to use the \"threat-\nhow to value a piece of land as\nproblem. Howard?\nened\" designation to prove that the\nwetlands or habitat. Though many\nYou don't think I should be actively\nmost inflexible environmental law in\nbiologists are keen on the idea that\ninvolved in anything I talk about?\nthe country can serve both economic\n\"indicator\" species can be used to\nSorry. Howard. You may perch in an\nand environmental goals. In encour-\ntrack the overall health of most\nivory tower. I refuse to. I serve on the\naging landowners to participate in the\nwildlife, there are millions of plant\nboard of Treepeople and the Southern\ncreation of a multi-species habitat in\nand animal species and we know little\nChristian Leadership Conference. I'm\nSouthern California. he is trying to\nabout most of them. Accordingly.\nchair of the L.A. County Insurance\nexploit what little wiggle room the act\nenvironmentalists are not eager to\nCommission. I read and record books\nallows. Babbitt has to demonstrate\namend federal law to permit ranking\nfor the Braille Library. I don't just talk\nthat the old regulation regime can be\nand trading of land based on its\nabout the issues, Howard. I care\nadapted to changing circumstances. If\npurported environmental value. They\nenough about this community to go\nhe fails, the environmental movement\nalso fear that business interests will\nout and volunteer my time. And, yes,\nand the Administration may be forced\nPlease see FULTON, A5\nI'm involved in politics too.\nto play the environmental game by a\nSpeaking of volunteer activities.\nnew-and undesirable-set of rules.\nWilliam Fulton is the editor of the\nHoward: The position of State Chair\nRecent polls suggest that the aver-\nVentura-based California Planning and\npays nothing. So I still have to work\nage Californian's support for environ-\nDevelopment Report and author of\nfor a living. Which I will continue\nmental protection is eroding in the\n\"Guide to California Planning\" (Solano\ndoing. on KCOP-TV and KFI-AM\nface of hard times. What's really\nPress Books). He teaches in the Envi-\n(640).\nhappening, though. is something far\nronmental Studies Program at UC San-\nYou may get my attention, Howie\nmore subtle. We still want as much\nto Barbara.\nbaby. But you'll never get my job!\nenvironmental protection as ever. But\nwe're no longer willing to pay the\nCommentator Press was elected this\nhigh price of \"command and control\"\nmonth to head the California Democrat-\nregulatory structures. in which gov-\nic Party.\nernment agencies admonish. in min-\nute detail. private businesses on what\nthey can and cannot do.\nWhat's emerging is a consensus for\n\"least cost\" environmental protec-\ntion-getting the most protection pos-\nsible with the minimum of economic\ndisruption. The question is whether it\nwill come through market-like trad-\ning systems or through negotiations\nsimilar to those involving the gnat-\ncatcher.\nLos 4/15/93 Angeles\n122\n\"If you know the real concerns of\nJapan, you can craft efforts to further\nWorld\nAmerican interests without unneces-\nsarily angering Japan,\" says one\nAmerican executive who declined to\nANALYSIS\nbe named. You can take advantage of\nthe factionalism among the govern-\nU.S. Rookies\nment ministries.'\nWhen Secretary Brown recently\nsent Japan a note demanding that\nto Face Japan's\nJapanese auto companies fulfill a vol-\nuntary pledge to buy more auto parts,\nhe only increased Japan's resolve not\nStars\nto make similar offers in the future.\nWhile the contacts of American of\nficials are limited to the small number\nof Japanese officials assigned to deal\nwith foreigners, Miyazawa's entourage\nBY LESLIE HELM\nis filled with bureaucrats educated\nabroad who speak almost flawless\nTOKYO\nEnglish and hobnob with a broad\nWhen President Clinton and his\nrange of influential people in govern-\ncrew meet with Japanese Prime Min-\nment, academia and the media.\nister Kiichi Miyazawa and his en-\nConsider Yukio Sato, the Director-\ntourage Friday to talk tough on trade.\nGeneral of the North American Affairs\nthey could find themselves outgunned\nBureau of the Foreign Ministry. Born\nby better-equipped Japanese negotia-\nthe son of a Buddhist priest, Sato was\ntors.\nsent by the Foreign Ministry to study\nStart at the top. Clinton's experi-\nat Edinburgh University in 1961; he\nence with Japan is limited to three\nperfected his English there. He later\nshort trips he made as governor of\nspent a year at the prestigious Inter-\nArkansas to attract Japanese invest-\nnational Institute for Strategic Studies\nment. He's a fast learner, but his re-\nin London.\ncent comments on Japan-that\nThe American tendency to appoint\nJapan's trade surplus shows its mar-\nthousands of new officials with each\nket is closed, plus his tip to Russian\nnew administration means Clinton's\nPresident Boris N. Yeltsin in private\nofficials must virtually start from\ndinner conversation at the Vancouver\nscratch when it comes to learning\nsummit that Japanese tend to say\nabout the negotiating styles and prac-\n\"yes\" when they mean \"no\"-show\ntices of their foreign counterparts.\nhe has a crude, if not inaccurate, un-\nOn the Japanese side, virtually\nderstanding of Japan.\nevery key official has been steeped in\nIn contrast, Miyazawa has spent\ntrade issues for decades. Noboru\nvirtually his whole career dealing with\nHatakeyama, Vice Minister for Inter-\ntrade issues. He has been Japan's chief\nnational Affairs at the Ministry of In-\ndelegate to past General Agreement\nternational Trade and Industry, spent\non Tariffs and Trade talks, and as a\n4 years in Chicago promoting Japanese\nformer minister of international trade\nexports to America.\nand industry he has an intimate\nknowledge of the strengths and weak-\nHatakeyama was a central figure in\nnesses of Japanese and American in-\nimplementing the semiconductor\ndustry. As a former bureaucrat in the\nagreement. under which Japan offered\nelite Finance Ministry, he has a quick\nto double the foreign share of its chip\ngrasp of numbers.\nmarket by the end of 1992. He was also\nAnd Miyazawa speaks good English.\nkey in implementing the Structural\nso the two leaders can converse with-\nImpediments Initiative, an effort to re-\nout the awkwardness of an inter-\nmove structural barriers to Japanese\npreter.\nimports. And Hatakeyama was the\nMiyazawa also knows when to hold\nman sent to America in 1987 to calm\nand when to fold. Although Japan has\ntempers after a Toshiba subsidiary\nbeen accused of blocking- GATT\nwas discovered to have exported sen-\nprogress by refusing to liberalize its\nsitive machinery to the Soviet Union\nrice market, Miyazawa won't give in\nand U.S. Congressmen were using\non the politically sensitive rice ques-\nmallets to bash Japanese televisions.\ntion until the last minute.\nBy contrast, \"there is little continu-\nNow look at Clinton's key ap-\nity on the American side,\" says Ku-\npointees. Winston Lord, who is in\nniko Inoguchi of Tokyo's Sophia Uni-\ncharge of East Asian affairs at the\nversity. \"In terms of developing ex-\nState Department, is a China expert\npertise in dealing with trade problems\nwith little knowledge of Japan or the\nin specific sectors, the U:S. side will be\nregion's economic forces.\nat a lisadvantage\nU.S. Trade Representative Mickey\nKantor and Commerce Secretary\nRonald H. Brown, both lawyers, have\nworked for Japanese clients and know\nthe Japanese position on many trade\nissues. But neither they nor any of the\nsenior members of their respective or-\nganizations speak Japanese or have\nin-depth knowledge of Japan.\nThose versed in Japanese issues and\nknowing the country's pressure points\nare better equipped to win Japanese\nsupport for issues of concern to Amer-\nicans.\nLos Angeles Times\n4/15/93\n123\nPERSPECTIVE ON U.S.-JAPAN POLICY\nBack Tough Talk With Firm Action\nonly about 10% of American\nchallengers to American air and naval\nAllowing economic ties\nmerchandise trade goes to Ja-\nmastery exist in East Asia. Further. the\nto evolve toward rivalry\npan. The United States gener-\nUnited States enjoys good relations with\nates nearly 75% of Japan's\nall the key states in the region, except\ncould be a tonic to\ntrade surplus. Japan accounts\nfor international pariah North Korea. If\nbilateral relations and\nfor nearly 50% of the Ameri-\nJapan were to return to its old expan-\ncan trade deficit. If trade were\nsionist ways, an American-led defensive\nlessen interdependence.\ncurtailed, Japan would suffer\nalliance would arise so quickly, and in\nthe loss mightily, while the\nsuch dimensions, as to make the coali-\nBy JOHN ARQUILLA\nUnited States would see tre-\ntion that defeated Saddam Hussein look\nmendous improvement in its\nlike a volunteer fire department. How-\nT\nhe most striking element of Presi-\ncurrent account. Also, Japan's paucity of\never, if China develops aggressive aims\ndent Clinton's emerging policy\ntoward Japan is his declared wil-\nnatural resources and dependence on\nin the region, why shouldn't Japan\npossess an independent conventional\nlingness to act forcefully to redress\ndefensive capability? This would only\neconomic disparities in bilateral rela-\nprovide long overdue relief for the\ntions. Two of his key advisers, Secretary\nUnited States, as some of the burden of\nof State Warren Christopher and Trade\nensuring regional security would finally\nRepresentative Mickey Kantor. have\nbe lifted from its shoulders.\nalso spoken of the merits of pressuring\nJapan to open its markets further to\nJAPAN\nAs he confronts the looming crisis in\nU.S.-Japan relations, President Clinton\nAmerican goods. Prime Minister Kiichi\nmust guard his domestic political flanks,\nMiyazawa will no doubt hear more of\neven as he presses for trade and other\nthis during his current visit to the\neconomic concessions from Tokyo. He\nUnited States. but he will take American\nmust forcefully rebut those whose hab-\nadmonitions to heart only if he believes\nits of mind and institutional interests\nthat firm action will follow from the\nencourage them to conjure up fearful\n\"tough talk.\" On this point, the outlook\nimages of Japanese economic retaliation\nseems poor.\nor military resurgence. The facts will\nThe President's sound basic instincts\nhelp him here, but more than truth is\nhave fallen afoul of the twin pillars of\nrequired to still his opposition. The\nthe conventional wisdom on U.S.-Japan\nPresident must \"go public\" on this issue,\nrelations. In the economic realm, experts\nas he did to gain support for his plan for\nworry that Japanese retaliatory actions\neconomic renewal. Then. the certain\nmight spark. as historian Paul Kennedy\noutpouring of public support for a \"get-\nhas written, \"another Great Depres-\ntough\" policy toward Japan will silence\nsion.\"\nIn the security sphere, concerns have\nJAPAN\nhis critics.\nIronically, talking and acting tougher\narisen that tensions in the U.S.-Japan\ntoward Japan may prove a tonic for\nalliance might disrupt the East Asian\nbilateral relations. There have long been\nbalance of power or foster a resurgence\nsentiments in Tokyo that the existing\nof Japanese militarism, as the United\nrelationship is unnaturally. unhealthily\nStates would no longer serve in the role\nclose. Allowing economic relations to\nof what Marine Gen. Henry Stackpole\nevolve more toward rivalry will lessen\ncalls the \"cap in the bottle.\" These\ninterdependence and, perhaps, encour-\nviews have dominated American policy\nage Japan to articulate more fully a\ntoward Japan for many years. They also\nforeign policy of its own, toward the\nseverely overstate the risks of change\nUnited States and the world. If Presi-\nand underestimate the costs of main-\ntaining the status quo in U.S.-Japan\nClinton, the graffiti artist.\ndent Clinton can start and sustain such a\nprocess. with public support, he will\nrelations.\nhave done a great service to both\nOn the economic front, interdepend-\ntrade makes it far more vulnerable to\ncountries.\nence does exist, but Japan shows far\npressure than the resource-rich United\ngreater vulnerability to disruption than\nStates, for which total imports constitute\nJohn Arquilla is a strategic analyst\nthe United States does. In merchandise\nless than 10% of the gross domestic\nbased in Southern California. He is writ-\ntrade. for example, 33% of Japan's\nproduct.\ning a book on the future of U.S.-Japan\nexports go to the United States, while\nAs to security matters, no viable\nrelations.\nLos Angeles Times\n4/15/93\n124\nBy Some Miracle,\nAre They Alive?\nShocking MIA document opens old wounds\nF\nor two decades the Ha-\nmonths before repatriation\nnoi government has\nbegan. Vessey must demand a\nsteadfastly maintained\nfull accounting: names,\nthat it repatriated all the\nwhether-by some miracle-\nAmerican prisoners of war it\nany are still alive, and the\nheld in 1973, when U.S. forces\ndate and circumstances of\nwithdrew from Vietnam un-\ndeath for those who perished.\nder terms of the Paris peace\nThe document now in U.S.\nagreement, and that it had\nhands was purportedly writ-\nabsolutely no information\nten by a North Vietnamese\nabout the fate of other ser-\ngeneral in September, 1972,\nvicemen either missing in ac-\nwhen Hanoi was publicly say-\ntion or known to\ning that it was hold-\nhave been captured.\ning only 368 U.S.\nA top-secret docu-\nPOWs. The true fig-\nment found by Har-\nure, wrote Gen. Tran\nvard researcher Ste-\nVan Quang to North\nphen Morris in the\nVietnam's top lead-\narchives of the Com-\nership, was 1,205,\nmunist Party of the\nheld in 11 different\nSoviet Union now\nprison camps. Seven\nappears to expose\nmonths later, 591\nthat claim as a lie.\nAmericans were set\nThe White House\nfree, with North\nsays the new infor-\nEnvoy Vessey\nVietnam claiming it\nmation will be a top\nhad emptied the\nissue when President Clin-\ncamps. By Quang's own count\nton's special envoy on the\n614 men were kept behind,\nprisoner-of-war issue, retired\ntheir very existence denied by\nArmy Gen. John W. Vessey,\nHanoi. Why? Was this part of\nmeets with Vietnamese offi-\na larger political calculation,\ncials in Hanoi this weekend.\nor simply an act of vengeful\nSpokeswoman Dee Dee Myers\ncruelty?\nsaid that \"we need to know\nFor 18 years, since the com-\nthat the Vietnamese are doing\nmunist victory in the Indochi-\nall they can on the\nissue\"\nna war, the United States has\nbefore efforts to normalize\nmaintained a trade embargo\nrelations proceed. The prob-\nagainst Vietnam. As Hanoi\nlem is that the officials Vessey\nmoves to adjust to post-Cold\nwill ask to do \"all they can\"\nWar economic and political\nare to a great extent the same\nrealities, American business\nofficials who all along have\nand governmental interest in\ndenied knowing anything\ndropping the sanctions has\nabout the missing men.\nincreased. Now, suddenly and\nVietnam says the explosive\nemphatically, the whole\ndocument is a fabrication, but\nPOW-MIA issue has again\nAmerican experts believe\nbeen brought to the forefront\nthat-although it may not be\nof U.S.-Vietnam relations.\naccurate in every particular-\nThe new evidence of Hanoi's\nit is authentic. The urgent\napparent deceit must be con-\nquestion now is not whether\nfronted. With all the force at\nHanoi hid the truth but what\nits command, Washington\nhappened to the captives who\nmust insist on getting the full\nare now believed to have been\nfacts and the terrible truths\nheld in prison camps just a few\nabout the missing servicemen.\nLos Angeles Times\n4/15/93\n125\nEquality-N Equivocation\nAspin's initiatives need to open up military for women\nThe continuing debate over\nkeeping them off the crews of\nmove that will, in effect, fore-\nwhether women should be\ncombat aircraft and out of\nclose a key class of jobs to\nallowed to volunteer for mili-\nground combat units. Yet\nwomen.\ntary combat jobs is a case\nBush left office without acting\nThat's why Aspin's an-\nstudy in the perils of incre-\non the commission's recom-\nnouncement last week that he\nmentalism. Far from defusing\nmendations.\nis preparing a package of initi-\nthe issue of combat service,\nThe Tailhook sexual harass-\natives that will open new\nthe military's policy of slowly\nment scandal is also unre-\ncombat positions to women\nloosening the restrictions that\nsolved; release of a report on\nthroughout the armed forces\nhistorically have hamstrung\nthe 1991 aviators convention,\nis another step, but only a\nwomen has served instead to\nexpected to be highly damag-\nstep, in the right direction.\ngenerate ever more heat on\ning to the Navy, is held up\nRather than let the Navy\nthe services to move faster\npending the naming of a new\nmove on its own and let the\ntoward complete integration\nsecretary of the Navy.\nAir Force implement a policy\nof men and women.\nThe Navy, which wants to\nthat would in effect restrict\nDefense Secretary Les As-\nimprove its tarnished image,\njobs for women, Aspin said,\npin is caught smack in the\nrecently proposed putting\nthe combat issue must be\nmiddle of this revolution of\nwomen aboard some of its\nreviewed as a single package\nrising expectations, having in-\nmen-only warships, a move\napplying to all the services.\nherited several controversies.\nthat falls short of the commis-\n\"Consistency-that's got to\nLast fall en-President\nsion's more sweeping recom-\nhappen,\" he said. He's right,\nGeorge Bush's Commission on\nmendation. But at the same\nbut along with consistency\nthe Assignment of Women in\ntime the Air Force announced\nAspin and the services need to\nCombat recommended allow-\nthat it will permit only pilots\ndemonstrate clear, continuing\ning women to serve on most\nfrom combat units to become\nprogress toward full equality,\nsurface combat ships but\nfighter pilot instructors, a\nnot more equivocation.\n126\nAPR 15 '93 00:38 SEATTLE PI WIRE\nP.1\nSeattle Post-Intalligencer, Thursday, April 15, 1993\nScore one for each\nPhone\nside over timber\n8\n202-456-6485\nThomas is named\nDepartment's La Grande, Ore.,\nlab. He directed the leading study\nislation, was welcomed by Anne\nHeissenbuttel, director of forest\nto lead ecosystem\non how to protect the threatened\nplanning and policy for the Amer-\nnorthern spotted owl, which\nmanagement group\nican Forest & Paper Association.\nrocked the timber industry when\n\"The abusive effects of the\nit was published in 1990. He was\nagency's appeals process. which\none of the so-called \"Gang of\nP-I Staff and News Services\nmoved Congress to act, continue\nFour.\" four leading scientists who\nto be felt in communities depen-\nTimber interests and environ-\nestimated in 1991 how a variety of\ndent on the national forests,\" she\nDept\ntimber sale levels would affect the\nmental groups each won a round\nsaid. As of last Oct. 1, 1,626\nlong-term survival of fish and\nyesterday in their continuing\nwildlife species. He also headed a\nappeals were pending, she noted,\nstruggle over timber from federal\nbroad scientific panel's review\nup from 1,453 the previous year,\nforests.\nThe Forest Service said the\nThe White House chose Forest\nthat fleshed out the 1991 study\nlast month with details on the\nrule would streamline agency de-\nService biologist Jack Ward\nviability of almost 700 species.\ncisions and reduce uncertainty\nThomas :0 head an interagency\nabout timber sales, both for the\nThe lust two studies have sug-\nworking group on ecosystem man-\nForest Service and the communi-\nagement. Thomas' selection ap-\ngested that even the sharp cuts\nrecommended to date In timber\nties dependent on its timber sup-\npeared likely to please environ-\nsales to protect the spotted ow!\nplies Some environmental groups\nmentalists cy making it unlikely\nprotested that the proposed rule\nwill be Insufficient 10 protect the\nthat the group will back away\nold-growth forest ecosystem and\ngoes beyond what Congress autho-\nfrom recent calls for sharp cuts in\nits dependent wildlife.\nrized. Sen. Patrick Leahy, D-Vt.,\ntimber sales to protect wildlife.\nGoing further, the latest report\nchairman of the Senate Agricul-\nThe Forest Service, mean.\nture Committee, was to meet late\nappeared to prod the federal\nwhile, addressed a long-standing\nyesterday with Forest Service offi-\ngovernment to state clearly that\nclais to discuss the matter.\nIndustry concern when It pro-\ntimber harvest should be allowed\nposed new rules to speed deci-\nonly after likely preservation of\nEND\nsions on administrative appeals\nnative species is assured.\nchallenging timber sales. If the\nThat is bad news to timber\nnew rules take effect, they would\ninterests that depend on federal\nmake It harder to delay timber\nlands. They have said the govern.\nsales simply by pursuing appeals.\nment should consider the viability\nThomas' appointment was one\nof timber towns, businesses and\nof three announced yesterday by\nfamilies on at least an equal basis\nthe Clinton administration, which\nwith wildlife.\nhas promised to craft B settlement\nThomas has skirted such is.\nto the Northwest timber stalemate\nSUCR, saying they are for politi-\nby June 1.\ncians, not scientists, to decide.\nAlso named were Peter Yu of\nThey could be considered by the\nthe National Economic Council to\nother two panels, but the White\nlead a group on Labor and Com-\nHouse gave no indication of that.\nmunity Assistance, and Jim Pipkin\nThe lubor and community as-\nof the Interior Department to load\nsistance panel, the statement said,\na group seeking better relation-\nwill \"identify alternatives for as-\nships between federal and state\nsisting individuals and communi-\nagencies in the region.\ntics affected by changes in federal\nYu and Pipkin lack Thomas'\ntimber sales programs and poll-\nbackground in the timber issue\ncies in the region.'\nand national reputation, so his\nThe Forest Service's proposed\ninfluence could be great.\nrule on administrative appeals,\nThomas heads the Agriculture\nwhich would implement new leg.\n127\nThe Bes Moines Register\nWhite House News Summary\nPage\nTAKING ON CLINTON\nRhetoric, Reality\nHe said, \"There is 8 difference\nI\nGramm\nbetween the rhetoric and the reali-\n(\nty\" of Clinton's program. \"He spends\ntwice as much on social programs as\nc\nleads GOP\nLyndon Johnson did at the height of\nis\nLong-winded Speech\nthe Great Society\nNever have I\nto\nGramm keynoted the 1992 Repub-\nseen a greater guif between rhetoric\nF\nlican National Convention but deliv-\nand reality than 1 have seen on this\n(\nered a long-winded speech that got\nattack\nbudget.\"\nbad marks from many delegates.\nGramm said Clinton \"is a great\nSome said he hurt his chances for the\nsalesman but he is selling a bad prod-\n1996 nomination, but Gramm said\nuct,\" many of them pork barrel proj-\n\"the speech was about issues people\nin Iowa\nects like building \"alpine aid slides\"\ncare about.\nMaybe if we had more\nin Puerto Rico. The Clinton adminis-\nspeeches like mine on the issues that\ntration defends these projects as im-\na\npeople cared about, we might have\nmediate job-creating programs nec-\n8.\nbored people to death, but we might\nessary to curb unemployment in\nhave won the election.\"\nt\nBy DAVID YEPSEN\ndepressed areas of the country.\na\nThat convention and the subse-\nbe\nREGISTER STAFF WRITER\nGramm was having none of that\nWednesday as he told his Ames audi-\n1\nquent campaign saw some divisive-\nB\nness over social issues inside GOP\nt\nof\nAmes, In. - Texas Sen. Phil\nonce \"It is not right for America to be\nP\nranks. Gramm said, \"We've got to to-\nca\nGramm arrived in Iowa Wednesday\nraising the deficit.\nIf the presi-\nV\nI\ncus on the things that made people\nto open a two-day attack on Prest-\ndent thinks these projects are impor-\nc\nRepublicans to begin with. In the\ndent Clinton's\ntant enough, let him propose a way\n(\n20th century, there have been only\nti\nbudget and\nofpaying for them.\"\ntwo fixed stars for the Republican\nP\nremind local Re-\nt\nState Republican central commit-\n&\nparty: They've been the pursuit of\nm\npublicans of his\ntel member Kayne Robinson of Des\n(\npeace and prosperity. When we're\nP\nt\nown presidential\n1\nMeines. who supported Kansas Sen.\nguided by those stars, we have been\nf\nambitions in\nBob Dole in the 1988 caucus fight,\nt\nthe majority party and we've gov-\nY\n1996.\nsaid Wednesday he's likely to sup-\nF\n1\nerned America well.\"\nThe 50-year-\nport Gramm in the 1996 battles.\n€\nold lawmaker is\nt\nscheduled to\nHe said Gramm likes one-on-one\nmake five stops\ncampaigning that is key to caucus\nvictories.\nGramm\nin lowa as part of\nPlans five stops\na nationwide as-\n\"He'll do very well. He has Chuck\nsault on Clinton's\nGrassley's ability to talk with people\nand really connect. He puts things in\nprogram by the GOP. He has been\nterms the average American can un-\none of the Senate Republicans lead-\nderstand.\" he said.\ning the filibuster against Clinton's\nbudget\nGramm told about 50 Republicans\nat the Firstar Bank here Wednesday\ntriat \"I am not here to announce my\ncandidacy for president. But the\nmore I watch Bill Clinton raise taxes\non the working men and women of\nAmerica and then squander their\nmoney, it makes me look harder at\nrunning in 1996.\"\n123\nTRADE TENSIONS\nU.S. beef\n\"Really Abusive\"\nBut leaders of the National\nCattlemen's Association Wednes\nindustry\nday said that was still too high\n\"We think that is really abusive,\nsaid Clay Daulton, a California\nrancher and head of the associa-\ntakes aimi\ntion's foreign trade committee.\n\"We want them to reduce It 10 per\ncent a year untill It's gone.\"\nDaulton and other Cattlemen's\nat Japan\nAssociation leaders were attendings\nan international beef conference in\nSydney, Australia, and spoke tem\nAmerican reporters in & telephone?\nLeaders of a cattlemen's\npress conference.\nAs they pushed for Japan to\ngroup say tariffs on U.S.\nopen markets, the U.S. cattlement\ndefended this country's meat in-1)\nbeef are still too high.\nport quota from sharp criticism\nfrom cattlemen in Australia That\nBy DIRCK STEIMEL\nwasn't easy, admitted Roger Stur\nREGISTER Business WRITER\nber, & North Dakota cattleinan who\nis president of the Cattlemen's As-\nThe nation's beef producers\nsociation.\nWednesday fired a salvo at Japan\n\"They really beat us up on that,\nfor its high beaf tariffs, while they.:\nhe said.\ndefended their flank against\nAustralia is trying to boost ex-\nattacks from ranchers in other new.\nports because drought is parching\ntions who criticised U.S. beef imme\nthe grazing land there, leading.\nport quotas.\nfarmers to slaughter more cattle.\nMeanwhile, representatives of\nBut the U.S. mest import quota, de-4\nthe nation's hog raisers are pushing/\nsigned to keep foreign meat from-\nhard to get U.S. pork shipments,\nflooding into American markets\npast balky Russian inspectors and\nwhen domestic meat supplies are\nare confident the recent problems\nhigh, has limited the Australians'\nin Moscow can be resolved.\nability to ship meat here.\nThe growing concern about for\nThe American cattle leaders de\nsign markets and trade disputes is\nfended the import quota. \"We don't\na sign of the times for beef and\nfeel we should be the buffer nation\npork raisers. \"The exports are real?\nfor variations in their supply,'\nly driving the markets now,\" said'\nDaulton said.\nDermot Hayes, head of the Meat\nExport Research Center at Ioway\nBack Trade Pact\nState University.\nHowever, association leaders\nOne of the big engines of meat\nsaid they supported the approval\nexport growth has been Japan's deec\nof the long-awaited international\ncision - after intense American\ntrade pact, called the General\npressure - to gradually reducet\nAgreement on Tariffs and Trade\nbarriers on imported meat, Hayes\nII\nsaid. In the latest reduction, whichs\nMEAT Please turn to Page 75\nkicked in April 1, Tokyo lowered.\nthe import tariff to 50 percent.\nBeef industry hits Japan\nMEAT\nage to help Ruesia, were held\ncause Russian authorities said US,\ncertifications on the meats' whole\nContinued from Page as\nsomenaes did not fit Moscow's stan\ndards.\nThe Des Moines Register\neven though it would spell the end of\nthe U.S. meet import quota system.\nAI Tank. foreign trade director of\nHayes said he wonders whether\nthe National Pork Producers Coup-\nthe cattlemen may eventually decide\ndi, said it was likely Russia would\nto \"rethink\" their support for the im-\nallow a \"grace period\" to work out\nport quota with or without GATT.\nthe dispute over the certifications,\nThe quota was designed at a time\nU.S. meat shipments would be allow\nwhen meat exports meant far less to\ned to enter Russia during that period\nthe United States than they do now,\nand the two nations probably could\nhe said. Because of that, the quota\nwork out the certification process,\nsystem could limit U.S. mest exports\nhe said.\nbecause other nations always point\nHowever, Tank said it is interest\nat it as they defend their own trade\ning that the Russian action closely\nfollows a European Community ben\nbarriers, he said.\nU.S. pork industry officials were\nof meat imports from Eastern Ev.\nconfident Wednesday that mest\nrope, which has stranded 8 lot of\nbeing held at Russian ports will be\nmest exports from that region. \"You\nreleased to be sold to consumers. The\njust have to wonder if there is any\npork shipments, part of an aid pack-\nlinkage,\" he said.\n129\nSENT BY:D. M. REGISTER NEWSROOM; 4-14-93 :10:20PM ; D.M. REGISTER NEWS-\nThe White House:# 3\nThe Bes Moines Register\nWhite House News Summary\nPage\n2\nGet tougher with Serbia\nT\nhere seem to be no limits to what\nmind before hundreds of thousands of\nBosnian Serbs will do to incorporate\ntroops are placed in jeopardy.\ntheir territory with \"Greater Ser-\nAllow the non-Serb Bosnians to arm\nbia.\" Tuesday's massacre of 56 people -\nthemselves? That, too, is problematic even\nincluding 15 children - in the Muslim\nthough there is a certain attraction to the\ncommunity of Srebrenica is just the latest\nlevel-the-playing-field theory. The greater\nin a string of atrocities that neither the Eu-\nfear is of even worse fightting, which could\nropean Community nor the rest of the\nexpand into other Balkan countries, Greece\nworld seems able to stop.\nand Turkey.\nThe latest massacre came one day after\nThere is another approach. The United\nNATO warplanes began enforcing a U.N.-\nNations Security Council was to have\nimposed no-fly zone over Bosnia. It was as\ntaken up the question of stiffer economic\nIf the Serbs are determined to prove the\nweakness of the United Nations response\nsanctions against the two remaining Yugo-\nto \"ethnic cleansing.\"\nslavian republics of Serbia and Montenegro\nAnd yet, what should that response be?\nthis week, but held off at the request of\nMilitary intervention? That's increasing-\nRussia. Economic sanctions don't often\nly discussed. The New York Times has re-\nwork, but they are a far cry from doing\nported that a Clinton administration team\nnothing. The sanctions, if coupled with se-\nof experts sent to Boania earlier this year\nlective air strikes against Serbian military\nrecommended that military protection be\ntargots, could tilt the balance sufficiently\nprovided for civilian \"safe havens\" in\nto force the Serbs to sign a peace plan that\nBosnia. It also urged that military inter-\nalready has been signed by Muslim and\nvention be used to support aid efforts and\nCroat representatives.\nto stop the shelling of Bosnian cities.\nIt is a pity that Bosnia's European neigh-\nBut then what? Could military force real-\nbors and the United States 50 clumsily and\nly make a new order out of the disorder\nineffectively handled the breakup of Yugo-\nthat remains of Yugoslavia? Nobody seems\nslavia a year ago, when clear lines could\nto know, which is why the option has been\nhave been drawn and enforced. The goal\ndiscussed but not carried out. Even Bill\nnow ought to be to ensure that things don't\nClinton, who during his election campaign\nget much worse. There are steps, short of\nleaned toward the military option, has\ndeploying ground troops, that can be\nbacked off. A final outcome had best be in\ntaken. Why wait?\n130\nAPR-15-93 THU 0:42\nBOSTON GLOBE\nFAX NO. 6179293186\nP. 02/10\nFrom Boston Globe Page 1\nJeffords is\npressed hard\non jobs bill\nBy Lawa A. Kierman\nin the brown pinstriped suit he wore yesterday. is\nGLOBUSTAFF\nclearly in the spotlight. With less than five days to go\nbefore Congress reconvenes, Jeffords is on the \"A\"\nBURLINGTON, Vt. - Standing in a sea of\nlist of senators targeted as potential swing votes in\nbroken appliances yesterday, Ron Krupp, the\nthe Democrats' attempt to break a GOP filibuster\ndirector of Regycle North, had just explained to US\nthat has stalled the jobs bill.\nSen. James M. Jeffords why his nonprofit group\nOn a minitour yesterday, he stopped in the\nneeded President Clinton's jobs bill, which Senate\ncountry town of Biistol, gamely donned a hair net\nRepublicans. including Jeffords, have stalled.\nand cruised through the workroom at Autumn Harp,\n\"This is real. This isn't fluff,\" said Krupp, who\na company that makes natural products including\nwould use some of the bill's grant money to train\n\"Un-Petroleum Jelly.\"\nhomeless people and others to repair all the out-of-\n\"I don't think he should bow to the pressure.\" the\norder things around him.\ncompany's founder, Kevin Harper, said of Jeffords\nThen. into this dusty cluttered warehouse far\nwhom he described as a independent-minded\nfrom the power-contiders in Washington, came a call\n\"sti aight-shooter.\" Yet Harper, who began his $13\nfrom the White House.\nmillion business 15 years ago with $500 and a little\n\"Yes\nyes\nsure\nsure\nOK\nairight,\"\nherb know-how, wants the jobs package approved. \"I\nsaid the senator. bunched over the telephone.\nthink the country needs the stimulus,\" he said.\nJeffords may have left Washington, but\nJeffords has a reputation for straying far from\nWashington will not leave Jeffords alone this week.\nthe GOP pack. In 1981, as a congressman, he was the\nAs a moderate Recublican, he is seen by both\nonly Republican to vote against President Reagan's\nRepublicans and Democrats 33 3 potential turncoat\ntax cuts. In 1987, he was the only GOP House\nin the battle over Clinton's $16.3 billion economic\nmember to support a Democratic effort to eliminate\nstimulus package.\nsome tax breaks for the wealthy. He waited until the\nVice President Al Gore called Jeffords Tuesday\nvery end to support the Bush administration's effort\nnight at his Vermont home and the two had a\nin the Persian Gulf War. He was one of only two\n\"constructive\" conversation. Jeffords reported.\nGOP senators to oppose the nomination of US\nHealth and Human Services Secretary Donna\nSupreme Court Justice Clarence Thomas and he did\nShalaia talked to him last week. Labor Secretary\nso even before Anita Hill's allegations of sexual\nRobert Reich tried to reach him, and assistant\nharassment.\nbudget director Alice Rivlin made the pitch for the\nJeffords. a consistent moderate to liberal on\njobs package on a Incal talk radio show.\nsocial issues. has already signaled to the Clinton\nAnd. in what was fumily described as a\nadministration that he can side with it on some\n\"coincidence.\" Sen. Bob Dole of Kansas, the\nmatters. Clinton tracked Jeffords down in\nRepublican leader and leader of his party's jobs bill\nDamascus. Syria, to thank him for supporting the\nskirmishes, was in Builington yesterday for a\nfamily leave act.\nJeffords campaign fund-raiser.\nBut, the Democrats' approach to getting the\nSo a gaggie of reporters and a network television\nstimulus bill passed - \"steamrolling it through\ncrew turned anxiously to Jeffords when he hung up\ntaking us for granted,\" in Jeffords' words - was one\nthe telephone yesterday, poised for the blow by blow\nof the \"dumb\" things the Clinton administration did.\non the ultimate political massage.\nJeffords said. The tactics, he said, provoked him into\n\"Sorry to disappoint you all. but that was on\njoining ranks in the Senate filibuster.\nRussian aid.\" Jeffords said, wearing an impish grin\nBut beyond failing to pay respect to political\nand reporting that the caller was merely a White\nadversaries, Jeffords said his real problem with the\nHouse staff member. Coincidence, he protested.\nbill, which he wants cut in half, is that it just adds to\nalthough be admitted it made him feel like part of\nthe already staggering deficit.\nthe \"team.\" \"Nalve, am 17\" he demined when asked\n\"You've got to have the courage to corder\nif it all wasn't part of the White House courtship\npriorities and cross some things off that aren't as\nJeffords, a quick but down-home kind of guy who\nmuch of a priority,\" Jeffords said in an interview this\nlooks more at ease in a sweater and workboots than\nweek in his home in North Shrewesbury:\n131\nAPR-15-93 THU 0:43\nBOSTON GLOBE\nFAX NO. 6179293186\nP. 03/10\n1\nHe would approve money for an extension of\nDemocrat, said in a telephone interview. \"There isn't\nunemployment benefits, childhood immunizations\nany pork in the Vermont list.\"\nand some jobs programs, Jeffords said. but other\nYesterday the Vermont Democratic Party held\nprograms, like community development block\nwhat it billed as a \"community press conference\"\nmants, are not \"emergencies\" that justify adding to\nfeaturing Vermonter who would benefit from the\nClinton jobs bill.\nthe deficit.\nVermiont Democrats have countered with a\nIn the past week, Dean said he has been\ngrass-roots campaign this week focusing on the\ncontacted twice by the White House, looking for his\nadvice on how to win Jeffords over to their side.\nestimated $30 million in federal funds that would\ncome to the state if the bill is passed.\n\"I told them they ought to sit down with him and\nGov. Howard Dean's office released details of\nfind a middle ground,\" Dean said, adding that he\nhow that $80 million would be used, including $2.4\nexpected Jeffords would be invited to sit down at the\nWhite House.\nmillion for summer jobs, $13 million for highways\nand $4.7 million in community development block\nJeffords, as is his way, said simply that he would\ndo what was \"right.\"\ngrants.\n\"The state is in significant financial trouble and I\nthink we can puc a lot of people to work.\" Dean, a\n132\nTHU\n0:48\nBUSTON\nGLOBE\nFAX NU. 6179293186\nFrom Boston Globe Page 3\nSales tax mulled for health plan\nBy Michael Kranish\nYesterday. speculation was renewed about a\nand Elizabeth Neuffer\nvalue-added tax after Alice Rivlin. deputy director of\nGLOBE STARF\nthe Office of Management and Budget, told the\nNational Association of Manufacturers that\nWASHINGTON - Two months after President\nextending health care to the uninsured would \"take\nClinton said a national sales tax was not under\nsome more resources. and a VAT or a general sales\nconsi deration to pay for his health care plan, three of\ntax has a good deal to recommend it.\"\nhis top aides said yesterday the politically volatile\nIn a recent interview with USA Today, Shalala\nproposal is being seriously considered.\nsaid, \"Certainly we're looking at a VAT\nbut all of\nThe suggestion by Donna Shalala, secretary of\nthis would be phased in.\"\nhealth and human services, and two other senior\nA White House briefing yesterday was\nadministration officials appeared to be a calculated\ndominated by questions about whether Clinton was\ntrial balloon, and it came as the president's Task\nreversing himself in allowing a value-added tax to be\nForce on National Health Care Reform struggles\nconsidered. Clinton said in Ohio on Feb. 19 that such\nwith how to finance the health plan.\na tax might be necessary in another decade. adding,\nAccording to one senior administ ation official,\nIf we start considering it, I'll tell you.\"\nhealth advisers have concluded that the package of\nWhile Clinton has never retreated fi om that\ntaxes and cost controls now under consideration will\nposition, Shalala and two other officials said this\nnot cover the costs of universal insurance coverage.\nweek that the tax is under consideration. Yesterday,\nBut other top officials, who spoke on condition of\nClinton spokesman George Stephanopoulos added to\nanonymity, discounted the suggestion that a value-\nthe speculation by saying it is \"indisputably true\"\nadded tax could finance the nation's health overhaul\nthat the president might consider the sales tax.\nplan. Two senior officials said Clinton would not\nStephanopoulos added, \"I'm acknowledging that\npropose such a tax because of opposition on Capitol\nthe task force has studied this proposal. I am also\nHill.\nstating that the president has not made a decision on\nDebates over a value-added tax have long rocked\nit.\"\nlawmakers and the Clinton health task force.\nThe surge of speculation about the value-added\nAdvocates say the tax is the fairest way to pay for\ntax may be similar to the controversy earlier this\noverhauling health care. But crities say the\nyear over whether Clinton would reduce the cost-of-\nadministrative costs of levying the tax far outweigh\nliving allowance for Social Security recipients.\nits benefits.\nIn that case. shortly after Treasury Secretary\nClinton's health advisers have estimated it will\nLloyd Bentsen floated the idea, it was shot down by\ncost $30 billion to $90 billion a year to cover the\nClinton. When the president eventually proposed a\nnation's uninsured. A combination of taxes on\ntax increase on higher-income Social Security\norgarettes and alcohol. taxes on health benefits above\nrecipients, it was greated with relief from many\n& required package, and some short-term price\nsenior citizens, who had greater fears about the cost-\ncontrols have emerged in recent weeks as likely\nof-living roilback.\ncontenders for financing the plan.\nBut the tasi. force has made no decisions. Last\nMaterial from the Associated Press was used in\nweek, top health aide Tra Magaziner said as many as\nthis report.\n20 taxes were on the table.\n133\nAPR-15-93 THU 0:45\nBUSTON GLOBE\nFAX NU. 6179293186\nr.\nFrom Boston Globe Page 1\nCare at end\nnot as costly\nas assumed\nmoney.\"\nBy Richard A. Knox\nRonald Bayer, a Columbia University ethicist,\nCLOBE STAFF\nsaid be recently heard one of the leaders of Hillary\nThe cost of medical care in the last year of life is\nRodham Clinton's task for ce on health care repeat\nnot the driving force in health care cost inflation that\nthis conventional wisdom. \"There is a perception that\nmany people assume. according to 8 government\nif only we would let people die more gracefully -\nchoose not to be the subject of extraordinary\nstudy published today.\nIn fact, the proportion of Medicare spending\nmeasures - then most of these expenditures could be\ndevoted to end-of-life care was emarkably stable\neliminated. There is the belief that somehow this can\nbetween 1976 and 1988, despite advancing\nbe dealt with through living wills.\"\ntechnology and widespread dispersal of sophisticated\nThe new study, which appears in this week's New\nintensive care down to the smallest US hospitals.\nEngland Journal of Medicine, found that the average\nThe cost of care in the last year of life has often\namount spent for care in the last year of Medicare\nbeen wildly exaggerated, say health services\nbeneficiaries' lives nearly quadrupled between 1976\nresearchers. Estimates are commonly heard that as\nand 1988, from $3,488 to $13,316. However, so did\nmuch as 60 percent of all Medicare spending occurs\nMedicare expenditures generally.\nin the last six months of life.\n\"The same forces that have acted to increase\nIn fact, medical care in elders' final year\noverall Medicare expenditures have affected care for\nconsumed 31 percent of all Medicare expenditures in\nboth decedents and survivors,\" Lubitz and Riley\n1988. the latest available figure, versus 27 percent 12\nwrote.\nyears earlier. Since only about 5 percent of the\nThe researchers found that the pattern did not\nprogram's elderly beneficiaries die in a given year,\nchange when they compared expenditures in the last\nend-of-life care is disproportionately expensive. But\n60 days of life. presumably the most concentrated\nits share of total spending is both smaller and more\nperiod of medical care spending. In both 1976 and\nstable than commonly believed.\n1988, the final 60 days of life accounted for about half\n\"There is no evidence\nthat increased costs for\nof all final-year spending. The last 30 days also held\npersons in the final year of life are a special problem,\nsteady, at about 40 percent of all final-year spending.\ndifferent in magnitude from the overall growth of\n\"This suggests that 'heroic' efforts to preserve\nMedicare expenditures,' concluded James D. Lubitz\nlife in the last few months, to whatever extent they\nand Gerald F. Riley of the Health Care Financing\noccur, have not had a disproportionate effect on the\nAdministration, which runs the $145 billion Medicare\nincrease in Medicare costs,\" the researchers said. \"If\nsuch efforts had become more frequent, one might\nprogram.\nExtravagant heroic care for dying patients is\nhave expected an increase in health care expenses\noften cited as a major reason why Medicare\nduring the final month or two as compared with the\nspending outpaces health care inflation generally.\nrest of the last year. This was not the case.\"\nThere is a related popular conception that elders\nAnother clue that heroic care is not a burgeoning\nface a likelihood of being subjected to unwanted and\ntrend is that there was no increase in the proportion\nFutile care during their final illnesses.\nof high-cost Medicare patients who died, compared\n\"There has been a kind of myth about medical\nwith those who survived.\ncosts in the last year of life, that it's a terrible\nAnother study finding that runs counter to many\nproblem which has gotten out of control.\" observed\npeople's intuition was that Medicare spending\nDaniel Callahan, director of the Hastings Center\ndeclines, rather than increases, with the advancing\nTratitute of Society. Ethics and the Life Sciences in\nage of patients at death. Medicare enrollees who\nBriareliff Manor, N.Y.\nwere 65 to 74 years old at the time of death have the\nAlthough Callahan argued in a controversial 1990\nhighest average end-of-life expenditures, about\nbook that limits should be set on elders' care, he said\n$15,600. After age 75, the cost of end-of-life care\nit, is dangevous to exaggerate the problem. \"It feeds\ndeclines, reaching $8,888 for patients who were over\nagaism. he said in a telephone interview. \"It feeds\n90 when they died.\nthe notion that it's all useless and if we could cut\nSome observers said this may reflect a tacit\ndown on it we would save enormous amounts of\ndecision among patients, families and care givers not\nAPR-15-93 THU 0:46\nBOSTON GLOBE\nFAX NO. 6179293186\nP. 07/10\n1\nkeeping Medicare spending stable during the final\nto be as aggressive in trying to prolong the lives of\nyear of life.\nfrail elders. Callahan pointed out, in addition, that\nthe growing acceptance of this attitude, along with\nliving wills and other advance directives that specify\n\"no heroics.\" may have been partly responsible for\n134\nAPR-15-93\nTHU\n0:46\nBOSTON GLOBE\nFAX NO. 6179293186\nP. 08/10\nFrom Boston Globe Page 2\numinent' solution to the crisis\nHaiti may not be SO imminent\nBy Pamela Constable\nAdding to the confusion was a speech Tuesday\nGLOBB STARF\nnight by Haiti's de facto prime minister, Marc Bazin,\nwho pledged to step down once a new government is\nWASHINGTON - As political negotiations\nformed, but warned that if Caputo \"cornes to threat-\nresumed in Haiti yesterday, a Jun of conflicting\nen us with the thunder of foreign occupation and to\nstatements from the exiled president and Haiti's de\nimpose a solution, he had better not count on our co-\nNews\nfacto rulers threw cold water on the\noperation.\"\nClinton administration's predictions\nThe mixed signals from key players in Haiti's\nAnalysis\nof an imminent solution to that coun-\ndrama contrasted sharply with recent assertions of\ntry's crisis.\npolitical progress from the Clinton administration,\nAt the same time, there was growing criticism\nwhich has been working closely with the United Na-\nfrom human rights groups and other that a pro-\ntions to restore democracy to the impoverished Ca-\nposed amnesty for Hairian military leaders and plans\nribbean nation.\nfor a US military training program in Haiti could\nSome diplomats said the administration. anxious\nbackfa politically instead of shoring up the coun-\nto score a foreign policy victory and prevent a resur-\ntry's fragile democracy.\ngence of Haitian \"boat people\" fleeing toward Flor-\nMuch of the confusion surrounded the question of\nida, may have underestimated the hatreds paralyz-\nexactly how much President Jean-Bertrand Aristide\ning Haitian society\n18 willing 10 offer the army officials who ousted him\n\"When you read some reports. they sound like it\n19 months ago, in return for their stepping down and\nis a done deal, but in Haiti words can be interpreted\nallowing him to return to power.\n3 thousand ways,\" said one diplomat from Port-au-\nIn a Creole-language radio address or. the Voice\nPrince.\nof America Sunday. Aristide demanded of the army.\nSome observers expressed concern that US offi-\n\"Stop the killing now, SO that when the time comes I\ncials were pushing Aristide too hard for a full mili-\ncan grant you political amnesty. Why jeopardize this\ntary amnesty, warning that it could undermine ef-\nfinal opportunity? Gentlemen, stop.\"\nforts to build a democratic society. The security\nAmerican officials and press reports have de-\nforces have repressed Aristide supporters since the\nscribed Aristide 33 having made a significant conces-\n1991 coup, and several thousand people have been\nsion to the army. But aides to Aristide insist the con-\nkilled.\nstitution does not allow him to forgive military offi-\n\"Any blanket amnesty would be especially trou-\nclais for murder and other crimes - and that his posi-\nbling in Haiti, where you are trying tc build respect\ntion on this has never changed.\nfor the rule of law and do away with a culture of im-\n\"I think Aristide is playing his usual game of say-\npunity after 200 years,\" said William O'Neill of the\ning one thing to us privately and something different\nLawyers Committee for International Human\nto his Haltian supporters.\" one State Department cf-\nRights.\nficial said yesterday. \"There may be method in his\nThere were also mixed reviews for US plans be-\nmadness, but the result may be to make the military\ning developed to send military teams to help retrain\nskeptical. Well know that answer very soon.\"\nthe army and assist in public works once Aristide re-\nYesterday, Dante Caputo, a special UN envoy,\nturns. While diplomats agree the security forces\nreopened talks with officials in Haiti, including Gen.\nneed to be professionalized, suspicion of the US mili-\nRaoul Codras, the army chief, after spending several\ncary runs high in both the pro- and anti-Acistide\ndays in Washington in meetings with Aristide and\ncamps.\nUS officials. Cedras has demanded full amnesty for\nthe coup leaders in retur for stepping down.\n135\nTHU\n0:47\nBOSTON\nGLOBE\nFAX\nNU.\n6179293186\nP.09/10\nFrom Boston Globe Page 2\nBosnia would forgo\na'd if it got arms\nBy Mary Curtius\nBartholomew, warned Serbia that the United States\nGLOBE STAFF\nwould press to lift the arms embargo if Serbia does\nnot sign a UN-brokered peace agreement already\nWASHINGTON - The Bosnian government\nsigned by Posnia's two other warring ethnic\nwould rather see the arms embargo on Bosnia lifted\ncommunities, the Muslims and the Croats.\nthan the UN relief effort for Bosnian Muslim\n\"If they persist in their actions, the international\ncommunities continue, a senior Bosnian official said\ncommunity will make of Serbia a pariah state for as\nyesterday.\nfar ahead as we an see,\" Bartholomew told reporters\n\"I am writing a letter to the Security Council now\nas he left Zagreb, in Croatia, for talks in Belgrade\nSO that there will be no doubt.\" said Muhamed\nwith Serb leaders.\nSacirbey, Bosnia's ambassador to the United\nBut a senior UN official said yesterday the\nNations.\nchances of the arms embargo being lifted are \"very\nAsked whether his government was F epared to\nslim.\"\nhave thousands of UN troops end their deliveries of\nBoth the British government and Lord Owen, the\nfood and medicine to Muslim communities, Sacirbey\nEuropean Community's peace mediator for Bosnia,\ntold a gathering at the Carnegie Endowment for\nyesterday denounced Margaret Thatcher's\nPeace: \"We are prepared to pay that price. In some\nimpassioned plea for the international community to\nways. it is a very heavy price and in some ways it is\nlift the atms embargo.\nnot.\"\nThe former prime minister, first in an interview\nUN convoys and airplanes have delivered\nwith the British Broadcasting Corp. on Tuesday. and\nthousands of tons of desperately needed food,\nthen on American television yesterday, blasted\nmedicine and supplies over the winter to besieged\nWestern governments for allowing the Serb\nMuslim communities. The supplies have kept people\nonslaught on Bosnian Muslim communities to\nalive, but have not stopped the advance of Serb\ncontinue.\nmilitias through much of Bosnia.\n\"The policy 30 far has been to bring food and\nBoth Britain and France have consistently\nhumanitarian aid and medicines to the beleaguered\nopposed lifting the aims embargo imposed last year\npeople, but to leave them to the slaughter of the\nby the Security Council on the states of the former\nSerbs,\" Thatcher said yesterday. \"It is totally and\nYugeslavia. The two nations argue that lifting the\nutterly wrong to stop people from defending\nembargo on Bosnia would endanger several\nthemselves against a highly-armed aggressor.\"\nthousand troops they have fielded to deliver\nThatcher said the embargo should be lifted and\nhumanitarian aid to Muslims.\nthe West should \"supply the Bosnian Muslims with\nSactrbey's comment seemed designed to\narms and train them.\"\nundereut that opposition.\nOwen dismissed Thatcher's remarks, saying that\nThe embargo can only be repealed by a majority\n\"sometimes Lady Thatcher makes it appear very\nvote in the 15-member Security Council, where\nsimple. You have to be very careful not to be driven\nBritain, France, Russia, China and the United States\nby emotions.\"\nhave the power to veto any council resolution.\nAnd in Parliament, Defense Secretary Malcolm\nNoting that contributions to the Bornian relief\nRifkind said the conflict would worsen if the Muslims\nerrort have practically dried up, Sacirbey said his\nwere armed.\ngovernment fears \"the world is already tired of\n\"The result would be to prolong the conflict and\nfeeding Bosnians\nWe need to get to a point\nmake it even bloodier and more vicious than it is\nwhere we can defend ourselves. where we can\ntoday. The right course is to pursue the current\ndeliver the food to ourselves.\"\npolicy, thankless and frust ating though it is,\"\nHis comments came just hours after the\nRifkind said.\nadministration's special envoy, Reginald\n130\nFROM NEWSDAY NAT'L DESK\n04.14.1993\nNO.13\nP.\n2\nIll Wind' Sentencing\nEx-Grumman chief fined $10,000 in defense scandal\nBy Robert E. Kessler\nscandal, which has brought conviction\nSTAFF WRITER\nof 60 individuals and corporations, have\nJohn O'Brien. the former Grumman\nreceived stiffer sentences. Former Un.\nCorp. chairman who was one of the\nisys Corp. Vice President Charles Gard-\npowerhouses of the nation's defense In-\nner was sentenced to 32 months in pris-\ndustry, was fined $10,000 yesterday hut\non and former Assistant Navy Secretary\nnot given any jail time for his guilty\nMelvyn Paisley was sentenced to 4\nplea in connection with the military\nyears. But they pleaded guilty to more\ncontracting scandal known as Oper-\nscrious charges than did O'Brien.\nation Ill Wind.\nMishler declined to comment on the\nO'Brien, 63. had pleaded guilty in\nsentence, but it appeared to be within\nNovember to two felony counts of fraud\nfederal guidelines After the sentenc-\nfor failing to disclose on mortgage ap-\ning, the judge took the unusual step of\nplications that he received $305,000\nreturning to the courtroom when sever-\nfrom a Grumman subcontractor, James\nal reporters asked if he would comment\nKane. Altogether, federal prosecutors\non his reasoning. \"I don't comment or:\nsentences,' Mishler said \"I refuse to\nsaid in documents released yesterday,\nO'Brien received more than $600,000\ndo it. I said at the time of sentencing\nin secret loans from Kane between\nthat the charge was Mr. O'Brien made\nfalse statements That's all 1 care to\n1981 and 1988.\ncomment on.'\n\"I stand before you today, your hon.\nO'Brien. thinner and less jocular\nor. a very sad, humble and remorseful\nman,\" O'Brien told U.S. District Court\nthan at past court appearances, had no\ncomment outside the courtroom.\nJudge Jacob Mishler in Uniondale. \"A\nGovernment documents released\nman who was in my position should be\nafter the sentencing portrayed the ex-\nabove reproach at all times, and in that,\necutive suite at Grumman as nerve-\nI have failed. The impact to myself and\nwracking under O'Brien's leadership.\nmy family was drastically punitive\nwith some top managers saying they\nand that can never be undone.\nfelt their jobs were in jeopardy if they\nO'Brien was forced to resign from\ndidn't raise money for Kanc's lobbying\nGrumman in July, 1990, when his role\nefforts on behalf of Long Island defense\nin the scandal became known He had\ncompanies. Kane owned a corrugated\nfaced up to 4 years in prison after\nbox company in Buldwin, but more im-\npleading guilty to the relatively minor\nportantly was an infuential lobbyist.\nbank fraud charges. O'Brien had been\nThe documents quoted one Grum-\nconsidered liable to prosecution on\nman executive as saying O'Brien once\nmore serious charges of extortion and\nbecame \"a little violent\" when the ex.\nreceiving kickbacks. but Kane's death\necutive did not move quickly enough 10\nfrom cancer in February. 1990, led\naward a raise and borus to the employ-\nhigh-ranking Justice Department offi-\n00 who handled Kane's accounts with\ncials to conclude that such a prosecu-\nGrumman. Other executives told gov.\nNewsday\nStabile\ntion would have been difficult.\nJohn O Brien and his wife. Joan, leave court in Uniondale yesterday\nSeveral key figures in the III Wind\nPlease see GRUMMAN on Page 48\nD'Amato: I Won't Be 'Bullied'\nBy Martin Kasindorf\nDemocratic claims that he's costing\n$8 billion to $10 billion off che current\nand Robin Topping\nNew Yorkers thousands of jobs.\n$16.3 biliton price tog.\nSTAFF WILLERS\nTargeted in White House news re-\nDemocrats have 8 winning majority\nSen Alfonse D'Amato, resisting in-\nleases deluging New York media and in\non the stimulus plan but lack the 60\nstatements by presidential aides. D'A.\nvotes needed to break the filibuster\ntense White House pressure to abandon\nmato said at a Mineola news conference\nmounted by all 43 Senate Republicans.\nfellow Republicans filibustering\nD'Amato said the plan contains \"politi-\nagainst President Bill Clinton's eco-\nthat his position remains essentially\ncal patronage programs\" and projects\nnomic-stimulus bill, said yesterday he\nunchanged: He'll support the emergen-\nof \"doubtful value, which will not con-\nwill not be \"persuaded or bullied\" by\ncy spending bill only if Clinton knocks\ntribute to economic growth. More-\nover, the public campaign to move him\nis 'not the kind of thing that is going to\nopen up a dialogue,' he said.\n\"I am not going to be persuaded or\nbullied 1 have not been convinced\nby the administration.\" he said.\nMaintaining that \"I don't want to be\nan obstructionist,\" Amato said he\ncould support a smaller package extend-\ning unemployment benefits. providing\nsummer jobs for youth and expanding\nchild immunization. He would also vote\nfor the bill's highway construction and\nMewaday Jim Peppler\ntransit funding. but only \"if offset by\nD'Amato in Mineola\nadditional spending cuts elsewhere,\" he\nsaid in a news release.\nnews outlets a release asserting that\nWhite House spokesman George Ste-\nNew York stood to gain 7,154 full-time\nphanopoulos, who pointedly noted\njobs and 51,786 summer jobs this year.\nTuesday that the bill includes \"50,000\n\"But without swift passage of the en-\nNEWSDAY, APRIL 15. 1993\njobs\" for New York, acknowledged yes-\ntire jobs package,\" it quotes Clintor. as\nterday that the White House is direct-\nsaying, 'the people of New York will\nIng news releases at states represented\ncontinue to suffer from a jobless recov.\nby pragmatic Republican senators such\ncry 1 urge Sen. D'Amato to help break\nas D'Amato. \"All we're doing is point-\nthe gridlock in the Senate, support this\ning out the benefits of this package to\nInitiative and put thousands of his fel-\nvarious states,\" he said.\nlow New Yorkers back to work.'\nWith another Senate vote to break the\nSimilar news releases went to Ver-\nReuter Phone\nfilibuster scheduled for Tuesday, the\nAt Virginia jobs conference yesterday, Clinton jabs GOP on his bill\nWhite House this week sent New York\nPlease see D'AMATO on Page 17\n137\nCity Request to Adjust Census Denied\nBy Jack Sirica\nlost federal aid will amount to millions of dollars.\ncious. \"Thut far I cannot yo.\" McLaughlin said.\nWASHINGTON III REAU\nIn his opinion, McLaughiin said New York and other\nNew York City Corporation Counsel O. Peter Sher-\nA federal judge has thrown out a request by New\ncities had \"made 0 powerful case that discretion would\nwood said, \"The fundamental point is that the court\nYork and other cities to correct an undercount of mi-\nhave been more wisely employed in favor of adjust-\nhas recognized that on the merits we are right.\nnorties in the 1990 census. and New York City Mayor\nment \"Indeed,\" McLaughlin continued, \"were this\n\"We think that the best thing we would urge 18 for\nDavid N. Dinkins yesterday vowed to press the Clin-\ncourt called upon to decide this issue 1 would probably\nthe secretary w net now to correct the wrong.' Sher-\nton administration to make the correction adminis-\nhave ordered the adjustment.\"\nwood anid.\ntratively.\nNonetheless, McLaughlin said the legal question\nAttorneys for the plaintiffs said that they had not\nU.S. District Court Judge Joseph McLaughlin of\nwas whether Musbacher's \"decision not to udjust is 50\ndecided whether to appeal.\nNew York's Eastern District ruled Tuesday that the\nbeyond the pale of reason as to be arbitrary and capri-\n1406 Lift contributed to this story.\nphintiffs were not entitled to a census adjustment.\nsaying that then-Commerce Secretary Robert Mos-\nbacher did not breach standards barring \"arbitrary\nand capricious\" decisions\nD'Amato: Won't Be 'Bullied' on Jobs Bill\nDinkins said yesterday that he would call Com-\nmoree Secretary Ron Brown. an old friend, to urge\nD'AMATO from Page 6\nit\nhim to order the adjustment.\nAiming a jab at congressional Republicans. Clinton\nHowever. Dinking noted. \"I don't know that they\nsaid: \"I don't have all the answers. but I know this -\nMont, Maine, Oregon. Pennsylvania and 3 number of\nno the enpacity to do so.\"\ndoing nothing is not the answer\nother states. Moderate Republican Sen. JamesJeffords\n:- a statement, Brown was noncommittal \"I re.\nThe White House also released letters from Republi-\nspeet the court's decision,\" he said. \"The long and\n(R-Vt.) yesterday was caught in a vise between Senate\ncan mayors and governors saying they need and want\narduous process of litigation demonstrates how im-\nMinority Leader Bob Dole (R-Kan), who is leading the\nthe funds in Clinton's proposal. Fort Wayne. Ind.,\nportant It is to develop a methodology for the next\nRepublican battle and attended a Jeffords fund raiser\nMayor Paul Helmke. president of the National Repub-\ncensus that brings America together while providing\nin Vermont, and the Democratic blitz. Jeffords was\nlican Mayors Organization. and South Carolina Gov.\nthe must accurate count.\nlobbied Tuesday night by Vice President Al Gore.\nCarroll Campbell were among the signers\nThe government acknowledges that the 1990 census\nAs the White House's public campaign escalated,\nRepublicans struck back with an announcement\nundercounted blacks. Hispanics and other minorities\npresidential sides and leading Senate Democrate were\nthat they will stage 19 town meetings nationwide Sat-\nby 3to 5 percent but missed only 1.7 percent of whites.\nprivately negotiating with key Republicans on & possi-\nurday to argue against the Clinton stimulus spending\nNevertheless, the Department of Commerce, which\nble compromise\nand his overall budget package.\noversees the Census Bureau, announced in 1991 that it\nClinton continued to publicly press for the bill yes-\nDule said the plun WITS unnecessary because $93\nwould not adjust the census, saying the proposed ad-\nterday, telling an Arlington, Va., summer jobs confer-\nbillion in unspent federal funds from this year is avail-\njustment procedures were statistically questionable.\nence sponsored by the Education and Labor Depart-\nable for programs Clinton wants to increase \"So\nThree dozen cities filed suit, arguing that the under-\nments: \"It is an attempt to engage in an experiment\nwhere's the emergency\" Dule said. \"Looks like an-\ncount deprived them of federal funding and congres-\nto 800 whether or not, with the economy recovering in\nother false alarm from the White House\"\nsignal representation. New York has estimated that its\nterms of corporate profit, we can give a little goose to\nJill Dutt contributed to this story.\nIll Juror Halts King-Beating Deliberations\nBy John Riley\nDavies said marshals had taken the un-\njudge could order the deliberations to\nKoon and officers Laurence Powell,\nSTAFF CORRESPONDENT\nidentified juror to see a family doctor\ncontinue with an 11-person jury or\nTimothy Wind and Theodore Briseno\nbecause of an unspecified illness, and\ncould declare a mistrial. In addition, if\nLos Angeles - Jury deliberations in\n- are charged with violating King's\nthe rest of the panel ceased deliberating\nthe prosecution, defense and judge\ncivil rights by willfully using excessive\nthe Rodney King beating case were de-\nafter . half day. The jury received the\nagreed, one of three alternate jurors\nforce in the March 3. 1991, arrest Koon\nlayed yesterday because of a juror's ill-\ncase Saturday and has deliberated\nmight be chosen as a substitute If an\nis charged with supervising the illegal\nness. A CBS television affiliate here ro-\nabout 25 hours.\nalternate is chosen, experts said, the\nuse of force, and Powell, Wind and Bri.\nported that the juror was suffering from\nThe CBS station said the juror was\njudge will probably instruct the jury to\nseno are charged with administering il-\nstress-related hives.\nlikely to return today. It was unclear\nbegin its deliberations anew and recon-\nlegal baton blows and kicks\nNEWSDAY, THURSDAY, APRIL 15. 1993\nIn brief early afternoon announce-\nwhat would happen if the juror was un-\nsider any verdicts it may have reached.\nA state court jury verdict freeing the\nment, U.S. District Court Judge John\nable to continue. Legal experts said the\nFour white policemen - Sgt. Stacey\nofficers led to rioting last year.\nCrack Down on Serbs, Critics Urge Clinton\nBy Saul Friedman\nSo far two of the three parties in the Bosnian con.\nof the aring embargo. Dole also demanded the admin-\nWASHINGTON BUREAU\nfliet. the Muslims and Croats. have signed the plan.\nistration release a report by an interagoncy - defense\nWashington - The Clinton administration yester-\nbut the Serbs have refused despite the threat of stron-\nand state departments among thom - team sent to\nday was besieged by calls from members of Congress,\nger sanctions. Owen said in the interview, \"We can\nthe region that recommended, among other things.\nformer British Prime Minister Margaret Thatcher and\nincrease sunctions and perhaps then tilt the balance\nsafe havens for belenguered pro-government Bos-\none of the diplomats who is sponsoring a plan. to end\nof force by the use of air power to pressure the\nnians, to be protected by military forces.\nthe Balkans conflict for stronger measures against\nBusnian Serha to sign up. Tipping the balance to force\nOn the House side, Rep. Susan Molinari (R-Staten\nSerbin if it Joes not end its aggression in Bosnia.\na recalcitrant party to accept & just and equitable\nIsland), reporting on a week-long trip to the Balkans\nTheteher, during a round of U.S. network televi-\npeace package is. in my view, wholly legitimate diplo-\nwith three New York colleagues, expressed disap-\nsion appearances yesterday. appealed for the lifting of\nmacy.\npointment at the changes in Clinton's views. which\nthe international arms embargo, which has denied\nPresident Bill Clinton, who as a candidate called for\nshe supported during the campaign. Lifting the em-\nweapons to the Bosnian Muslims, and she repeated a\nmilitary measures, has shied away from taking such\nbargo \"Is the least we can do. and there is a ground-\ncall for possible air strikes against Serbian targets.\naction. But the administration sought to turn up the\nswell of support for that in Congress.\"\nShe helittled the policy of delivering humanitarian\nheat: Special U.S. envoy Reginald Bartholomew met\nHer freshman collengue, Rep. Peter King (R-Sea-\naid to the belenguered Bosnians and attempting to\nin Beigrade yesterday with Serbian President Slobo-\nford), who also went to the Bulkans, called for the use\nnegotiate perice, telling one interviewer on NBC-TV's\ndan Milosevic, widely viewed as the main instigator of\nof air power against the Serbs, taying, \"what the\n\"Tistay\" that \"negotiation suits an aggressor\nhe\nBosnia's war, and with Bosnian Serb leader Radovan\nUnited States and the West are doing doesn't add up\njust plays you along while he takes more land and\nKaradzic. Bartholomew had what he called a \"very\nto much. We are only prolonging the agony.\"\ndoes more slaughter.'\ncandid and direct exchange\" with Milosevic and\nState Department spokesman Richard Boucher de-\nHer countryman, Lord David Owen, a former for.\nwarned Karadzic of UN action if he doesn't sign the\nclined to take on the critics, although he said he disa-\neign secretary who mediated 8 peace plan for Bosnia\nVance-Owen plan.\ngreed with Thatcher and he maintained American\nalong with former U.S. Secretary of State Cyrus\nfthey (the Serbi persist in their actions, the inter-\npolicies have saved lives.\nVance, ridiculed Thatcher's appeal as simplistic and\nnational community will make of Serbia a parish state\nBosnia's UN Ambassador Muhammed Sacirbey\n\"driven by emotion.\"\nfor as far ahead as we can see, Bartholomew told\nsaid at & meeting with reporters here that Bosnians\nBut in an interview published yesterday by the\nreporters as be left for Belgrade from Zagreb, Croatia,\nwere \"prepared to pay the price\" of an end to the aid\nscholarly murnal Foreign Affairs, Owen suggested\nafter meetings with Muslim and Croat leaders.\nin exchange for weapons, because if they are not able\nthat the United Nations could pressure the Bosnian\nMeanwhile, Senate Minority Londer Bob Dole (R.\nto fight \"we'll disappear as a nation and as a people.\"\nNEWSDAY. APRIL 1993\nSerbs into signing the Vance-Owen plan with the\nKan.) said he was troubled by the apparent reversal of\nThis story was supplemented with a news ser-\nthreat of air attacks.\nClinton's campaign position and asked for the lifting\nvice report.\n138\nWED\n22:10\n\"\nARK\nDEMOCRAT\nGAZETTE\nAPR-14-93\nEDITORIALS\nToo close to the truth\nA report on Bosnia is suppressed\n\"Our only hope will lie in the frail\nample of the folly of gun control on an\nuneb of understanding of one person,for\ninternational level. The arms cm-\nthe pain of another. John Date Passos,\nbargo secms to work only against\n1940.\nBosnia, the principal victim in the\nt turns out that the Clinton Ad-\nYugosiav cockpit. The Sorbs have giv.\nI\nministration hns produced A ro-\non up tangling with the Croats. who\nport and various recommenda.\nhave an Arty and are capable of fight-\nions about how to stop the cornage in\ning back. There is no deterrence like\nBoania The report reflects expert\na victim capable of self-defense.\njudgment. on-the-scone appraisate,\nBut the exports went too for in the\nand sound moral and political val.\nright direction for the Administra-\nues. Naturally it was suppressed.\ntion to let their report ace light. Their\nThe 26-member team. that pro-\nfindings and recommendations. a\nduced the report, was appointed in\ncouple of which already have proved\nFebruary, when the administration\nprophotic, were withhold from the\nwas still willing to take an objective\nclosed-door briefings given Congress.\nlook at what was happening in Boania\nSuch socrecy is nothing new. It's al-\nand listen to export opinion. This re-\nmost standard operating pt occure\nport reached the inovitable conclu-\nin Washington: When a policy doesn't\nsion that there Is only one way to stop\nreflect the facts, change the facts. Or\nthe killing: Use military force to os\nat least suppress them. The clinton-\ntablish sale havens for Bosnia's peo-\nolds were adept at this technique\npic. That means protocting the con-\nlong before they got to Washington.\nvoys bearing aid. It means silencing\nA congressman named McCloskey\nthe ring or artillery fire that daily\nfrom Indiana - a Democrat - un-\nmenacas cities like Sarajovo and Sre-\nderstands perfectly well why this re-\nbrenica.\nport on Boania was withheld from\nBut such advice is politically ob\ncongressional briefings. \"The Ad-\nsolote. Some time before the panol\nministration.\" he says. \"has totally\nhad completed Its work. the Clinton\nbacked away from the idea of doing\nAdministration had slipped Into its\nanything significant to stop the\nnon-policy. a mix of ineffectual gos.\nslaughtor.\" That about sums it up.\ntures and windy cilintonspeak. Ro.\nThe Administration does under-\nsult: Washington's\nstand how politi-\napproach to the\ncally risky inter-\nwar in the Balka.\nvention could\nnow boars a res.\nprove. So It has dis-\nsonable resem.\npatched a new\nblance to what in\nCyrus Vance, one\nthe 1930s was\nReginald Bartholo-\nonlied appease-\nmew from the State\nment.\nDepartment. to\nmake the bost deal\nCertainly the re-\nsuits have been\nhe can with the ng.\nstrikingly similar:\ngressors. Perhaps\nThe\nthe new appeasers,\naccression\ncontinues.\nThe\nlike the old, think\nthat the forces of\npincers tighten\naround the vic-\naggression in the\nworld will be RRE-\ntime. Paper em-\nisfied with chow-\nhargoes and occa.\nsional shows of\ning up one small\ncountry, and then\nforce Mro scon for\nall will be wall.\nwhat they pro:\nshows. And those\nThey are making\ncommitting\nthese atrocities\na mistnke. Even now, what is hap.\nhave learned only contempt for the\npening in Boanin is part of n much\nUnited States or America and its sup-\nlarger pattern - throughout the\nposed londer.\nSouthern reaches of what used to be\nSorbia's Blobadan Milosovic has\nthe Soviet Union. and everywhere in\nthe Islamic world. Once again\nresponded to Bill Clinton's vague talk\nzcalotry overtakes reason. These are\nabout doing something someday to\nnot isolated waves of violence in\nhalt the war by saying the president's\nstatements \"encouraged\" him and\nBosnia, Georgia, Armenia and Azer\novery other Scrb. One was reminded\nbaljan, and Egypt. In the absence of\nof how the Ayatollah Khomcini used\nany countervalling force, a new and\ndark disorder is supplanting the\nto respond to Jimmy Carter's pathet-\nhopes of freedom that were so bright\nle pleas that the American hostages\nbe allowed. pretty please. to leave\nonly a few years ago.\nTehran. Or the snoor in Adolf\n\"The world is reconstituting Itself\nIfitier's voice in the old newsrools\nalong new bases we had not thought\nwhen no would respond to still an-\nof. We are waiting for history to give\nother overture from some befuddled\nbirth to something now. We don't\nleader of the democracies asking him\nknow what The pain will be piercing\nplease not to invade Atill another\nand excruciating and wish 1 did not\ncountry.\nhave to witness it.\" The words are\nThe diplomate doctors, adminis-\nthose of All Konz, a sociologist from\ntrators and military types who made\nAlgerin AS he watched his native land\nup this advisory group on Bownin did\nbeing swept up in a revival of the old\nnot take refuge Indilusions and CVS.\nIntolorance that has blinded and\nsions. They understood that Interna.\nmanacted the East for conturios.\nMonal order cannot be established\nUnloss the West recovers Its sonse\nsimply by talking about IL or com-\nof unity and determination, events\nmitting a few more UN troops piece-\nin Bosnia will prove only the fore-\nmeal. or limiting the \"peacokeepers\"\ntaste of a bitter cup. Only force\nto delivering food and medicine -\nwell orchestrated, overwhelming.\nwhen the Scrbs are kind enough to let\ngrounded In moral principle can\nn convoy through\ndeliver the message the West and a\nIn some respocts. the experts did\nfree world must sond. That was os.\nnot go far enough. For example, they\nsentially the conclusion of this re-\ndid not recommond that the arms om-\nport, and essentially why it was sup-\nbargo against Bosnia be lifted. Few\npressed. It was uncomfortably close\nrecent examples offer A better PX-\nto the politically inconvonient truth.\n139\nFirst\nlady to give U-M commencement address\nBY MARYANNE GEORGE\nis considering including graduates of the\nPage Prem Am Arban Burene\nThe University of Michigan's Board of\nuniversity's other schools and colleges, which\nRegents is expected to approve bonorary\nHillary Rodham Clinton will speak at the\nnormally hold their commencement ceremo-\ndegrees for Clinton and other dignitaries at\nUniversity of Michigan's commencement\nnies separately.\nits meeting Friday, Baker said.\nMay 1 in Michigan Stadium, U-M announced\nWednesday.\nDetails of the visit still are being worked\nout, but officials say an 11 a.m. ceremony is\nFormer President George Bush spoke at\nLisa Baker, U-M's director of public af-\nlikely at the stadium, which holds about\nthe U-M commencement at the stadium in\n102,000 people.\nMay 1991.\nfairs, said Clinton accepted U-M's invitation\nWednesday. The first lady will address gradu-\nBaker said no decision had been made on\nClifton Wharton Jr., deputy secretary of\nates from the College of Literature, Science\nwhether to open the graduation to the public,\nState and former president of Michigan State\nand the Arts, and the Rachham School of\nbut she said priority would be given to\nUniversity, will deliver MSU's spring convo-\nGradnate Studies. In addition, the university\nstudents and their families.\nation address May 7 at the Breslin Center.\n12:06\nAM\n*DETROIT FREE PRESS\nP O 2\n93\nHAITI\nImportant concessions could open way for democracy\nt's not a done\non the well-to-do and\nI\ndeal, but Haiti's\ntheir protectors as pay-\nmilitary leader-\nment for all real and\nship finally may\nperceived evils ever\nbe bowing under the\ncommitted against the\nweight of outside pres-\npoor.\nsure to restore the Rev.\nSuch a course would\nJean-Bertrand Aristide\nbe counterproductive.\n- the country's freely\nYet Mr. Aristide's re-\nelected but ousted pres-\ncent willingness to re-\nident - to power.\nverse his previous posi-\nThis development,\ntion and offer amnesty\nwelcome as it is for the\nto his most bitter oppo-\nprospect of a return to\nnents among the army\ndemocracy, doesn't\nleadership is a good sign\npossess enough power\nthat he may now favor\nto transform Haiti's\nconciliation and negoti-\ndesperation into over-\nation for the sake of\nnight prosperity. A long\nHaiti's future. His\nand painful road to revi-\nchange of mind re-\ntalization lies ahead for\nmoves the final obstacle\nHaiti, as Mr. Aristide is\nthat has been hamper-\ncertainly aware.\nELEANOR MILL/MI News Art Syndicte\ning United Nations\nYet the return of Jean-Bertrand Aristide\nprogress toward re-\nMr. Aristide is the only way to restore hope\nturning Mr. Aristide to his country.\nto the country's impoverished masses and\nIt appeared for a while that the Clinton\nto pave the way with cooperation and\nadministration had aboved Haiti onto the\nsupport from the world community - for a\nback burner. It is evident now, though, that\nstable, healthy nation.\nconsiderable behind-the-scenes pressure\nOpponents of Mr. Aristide's return pre-\nwas exerted through the UN to achieve a\ndict that he would become a self-appointed\nrapid solution - the type of pressure that\nenemy of both Haiti's military and its elite,\nwas never applied by George Bush.\nfueling class warfare. They portray a mod-\nFor this, President Bill Clinton deserves\nem Robin Hood, wreaking vengeful havoc\nto be commended.\n140\nAPR\n15\n'93\n01:32AM\nP.6\nGUP mayors could give\nClinton job plan a boost\nBy Mitchell Locin\ngovernors including Republicans\nChicago Tribune\nJim Edgar of Illinois and Carroll\nWASHINGTON-If President\nCampbell Jr. of South Carolina,\nClinton can't convince Republi-\nwho was former President George\ncans to support his jobs plan,\nBush's favorite governor, favoring\nmaybe some of their fellow Re-\na stimulus program \"that can put\npublicans can do the trick, the\npeople to work immediately on\nWhite House hoped Wendesday\nprojects that create long-term\nas it released a letter by GOP\nprosperity.\"\nmayors to Senate Minority Leader\nMike Lawrence, Edgar's press\nBob Dole (R-Kan.).\nsecretary, said the letter was in-\nEvanston Mayor Joan Barr\ntended to ask for funds that could\njoined the president of the U.S.\nbe used immediately if there is a\nConference of Mavors, William\nstimulus program, and said it was\nAlthaus of York, Pa., and the\nup to Congress and the president\npresident of the Republican\nto determine whether the bill\nmayors organization, Paul\nshould be passed.\nHelmke of Ft. Wayne. Ind., in\ntelling Dole that they need the\nClinton also attended a meeting\nWednesday of city leaders to\n$16.3 billion stimulus package to\npitch for the 700,000 summer\ncreate jobs in their cities.\njobs for youth he said the plan\nDole has attacked the plan's\nwould create.\ncommunity development funds\nClinton said the the bill would\nfor the swimming pools and park-\ngive \"a little goose\" to the na-\ning lots it would build, but the\ntion's economic recovery.\nmayors said the bill will benefit\n\"the unemployed Americans in\nHouse Republicans said\nour cities.\"\nWednesday they planned to hold\nThe administration also reached\nmeetings across the country Sat-\nback to a Feb. 8 letter signed by\nurday to attack the stimulus plan\nand offer an alternative.\nAPR 15 '93 00000000000000000000000000000000\nP.4\nHanoi has some explaining to do\nJust when it seemed Vietnam was being aboveboard\nhave come along, this one has an unusually and omi-\nabout Americans unaccounted for since the Indochina\nnously genuine look It argues powerfully for an w-\nwas, along comes this week's disclosure of a document\ngent, all-out effort to distill the facts from the present\npurporting to show Hanoi held not 368 U.S. prisoners\nwelter of assertions, questions and conjecture.\nof war. as it claimed in late 1972, but 1,205.\nRetired Gen. John W. Vessey Jr., the veteran U.S.\nHarvard researcher Stephen J. Morris found the po-\nenvoy who is returning to Hanoi this weekend, had\ntential bombshell in Soviet Communist Party archives\nbetter press for some pretty convincing, complete\nin Moscow, It appears to have been a Vietnamese\nanswers from the Vietnamese. Wisely, the Chinton ad-\ngeneral's detailed report on the actual number of U.S.\nministration, by making that quest Vessey's top priori-\nPOWs Hanoi was holding. The Russians provided\nty, has signaled its determination to learn the facts.\nWashington with the text, now under study.\nFor their part, Vietnamese officials have labeled the\nIf the document is authentic and accurate, relations\nMoscow document a \"pure fabrication,\" and have sug-\nbetween the United States and Vietnam, which seemed\ngested it was created to serve the interests of Ameri-\nabout is thaw as the Clinton administration edged\ncans opposed to a normalization of relations.\ntoward lifting a longstanding embargo on trade, could\nLoved ones of missing Americans and some veterans\nbe rendered more firmly icebound than ever.\ngenerally prefer continuing the U.S. embargo. on\nFor it then would be obvious that Vietnam\ngrounds that its elimination would remove a lever to\nheartlessly denied hundreds of Americans a\nensure Hanoi's help in learning the fates of the more\nhomecoming and Lied about repatriating every POW\nthan 2,000 Americans raissing from the war.\nin its custody early in 1973, when 591 were set free.\nAt the same time, business interests are pushing the\nIt would be obvious the Vietnamese lack any credi-\nClinton administration to let American firms invest in\nbility and merit none of the international respectability\nVietnam, as their counterparts from other nations are\nand economic benefits expected from a softening of\ndoing. Hanoi is eager to have Washington take this\nthe U.S. hard line.\nstep, both to attract U.S. investors and because Wash-\nThose things could become clear down the line. For\nington influences its access to international loans.\nnow. Americans should resist jumping to conclusions.\nEvents were moving in Vietnam's favor, with the\nIt is too soon to rush to judgment.\nU.S. increasingly disposed to the view that Hanoi was\nSkepticism remains in order, especially in light of\ndoing what it could on MIAs, thereby meeting the\nprevious reports of supposed sightings of Americans in\nparamount prerequisite of warmer U.S. Vietnam bes.\nSoutheast Asia, none of which were verified, and of\nNow, welcome progress in that direction has been\nphotos said to show aging ex-GIs but which proved to\nthrown into a cocked hat by disclosure of the 72\nbe doctored images of non-Americans.\nPOW document. Getting to the bottom of that dis-\nStill, of the obstacles to Washington-Hanoi ties to\nturbing report has to come before everything else.\nU.S.\nst\nwary of cha ge\nLess than 100 days into his presidency, Bill\nexposed himself to a predictable political\nClinton isdogged by an approval rating of only 49\nbacklash.\npèrcent, the only time in 40 years of polling that a\nIn addition, it should be remembered that Mr.\npresident's approval rating has been so low SO\nClinton came into office with a relatively narrow\nearly his term.\nbase of support. He was elected with only 43.2\nhumbers are leading Republican oppo-\npercent of the popular vote, just below the 43.4\nnents, and not a few political analysts, to pro-\npercent won by Richard Nixon in 1968, a year of\nnounce! the Clinton presidency mortally\nequal uncertainty in American history.\nwounded Already, a fow \"Impeach Clin-\nAnd four years later, Mr. Nixon was\nton\" humper stickers are popping up\nre-elected in a landslide.\naround town (although most were\nMr. Clinton can at times excite\nprobably bought to cover up\nstrong emotions. He inspires in\n'Bush/Quayle '92\" embarrass-\nsome a frightening and puzzling\nments)\ndegree of animosity. Others see\nThat's part of the problem. It\nhim as their Moses, leading his\nused to be that even a president's\npeople into the Promised Land\nopponents would give him\", a\nafter 12 long years in the Republi-\ndecent time in which to prove\ncan wilderness,\nhimself Now, In this bitterly\nBut for millions of Americans in\npolarized political climate, they\nthe middle, Mr. Clinton remains a\nare unwilling to give their new\nsubject of great ambivalence. If\npresident chance, unwilling even\nthey voted for him, they did SO not\nto wish him success. That IS per-\nout of any great enthusiasm but\nhaps something new in American\nbecause he at least promised a differ-\npolitical life:\nent style and approach than the strangely\nCortainly, the low poll ratings\npassive President Bush He has delivered\ncannot be explained by Mr.\nthat change. Indeed, the demise of his presi-\nClinton's performance. While It\ndency will be dated not from a bad poll, but\nhas been something short of\nfrom the moment he finds the\nspectacular, St has by no means\nstatus quo acceptable.\nbeen disnial. He has signed the\nSo far, there doesn't seem\nfamily leave bill, reversed the\nmuch danger of that Mr. Clinton\nabortion \"gag rule\" and mishandled the gays-\nhas gotten this far in politics through sheer tenac-\nin-the-military issue, but he has yet to face his\nity and perseverance, traits displayed both in his\nfirst real test. In the absence of some interna-\ntenure as governor of Arkansas and in the presi-\nA12-Thursday,\nticnal or domestic crisis, that test will come when\ndential campaign. He possesses a remarkable\nCongress is asked to approve his tax-increase\nability to shrug off defeats that would discourage\npackage and health-care reform proposal.\nmost people. Given the poll numbers, it's a\nApril\nMr. Clinton's low approval rating may actually\nstrength likely to be tested again in the next cou-\n15,\nreveal more about the American people than\nple of years.\nThe character of the American people will be\n0661\nabout their president. It tells us that we embrace\nchange theoretically, but balk when confronted\ntested as well. Mr. Clinton presents a challenge:\nwith change in its specifics. Mr. Clinton, by boldly\nDo we really want change, or was it only the Idea\nproposing a series of specific changes, has\nof change that we found attractive?\nA symptom of Russia's nuke danger\nNeither Moscow nor Washington has\nto sell on the international civilian-fuel market -\nexpressed much concern over last week's nuclear\neven though U.S. experts figure the Russians\naccident outside the Russian city of Tumsk. True,\nwould be lucky to break even, weighing costs\nthe Tomsk blowup is not in Chernobyl's class:\nagainst potential receipts.\nJust the same, both governments need to take the\nWhat does the Tomsk-7 accident bode for the\nmatter very seriously.\nfuture? Nothing good. It is a reminder that the\nAs seems usual in nuclear mishaps like this,\nRussians keep using dangerously antiquated faci)-\nauthorities underestimated the extent of the con-\nitles, some near population centers, to produce\ntamination. This week, they had to admit it was\npower and, presumably, plutonium. The Tomsk\nCONSTITUTION\nthree times greater than they thought originally.\nincident should rivet the West's attention on the\nEven so, the Russians got off lightly. Tomsk is a\nprecious little Russia has spent on improving\ncity of 500,000 only 16 miles from the accident\nnuclear-reactor safety despite Western aid. Pro-\nbite, but winds carried the radiation toward a far\ncessing plants like Tomsk-7 and Russia's numer-\nmore sparsely settled region.\nous and nasty nuclear dumps have not been\nUnlike the foolish attempt to cover up the\ncleaned up at all.\nChernobyl disaster seven years ago, the Russians\nNow while Russian officials are breathing a\nhave informed the public about the health danger\ndeep sigh of relief that the Tomsk blast damage\nsupposedly slight and even invited the Inter-\nwasn't worse, Washington needs to talk sense with\nnational Atomic Energy Agency to visit the site.\nthem. Let's raise pointed questions about the use-\nSo far, so good.\nlessness of Adding to the plutonium glut. Let's\nStill, troubling questions remain\nchip away at unnecessary layers of military-\nWhat was going on at Tomsk-77 It was one of\nImposed secrecy. Let's redouble our efforts to find\nthe last facilities separating plutonium to be used\nsectors in Russia's much-troubled nuclear pro-\nin Soviet nuclear weapons. Moscow says the plant\ngram where U.S. dollars and know-how can do the\nno longer does that work but isn't exactly forth-\nmost good the quickest. Rndioactivity is not only\ncoming about what it does do. The best guess is\nRussia's No. 1 environmental problem; it Is one it\nthat plutonium still is being processed there, now\ncannot contain within its borders.\n142\nAPR-14-1993\nFROM\nNEWSROOM\nTO\nE\nA-2\nE\nDelay on Navy chief\ncould let some fliers\noff hook in Tailhook\nBy OTTO KREISHER\nfacing non-judicial punishment for\nCopley News Service\nless severe offenses.\nWASHINGTON - President\nNon-judicial punishment, com-\nClinton's delay in naming a new\nmonly called \"captain's mast\" in the\nNavy secretary could prevent legal\nNavy, is somewhat similar to a mis-\naction against many of the fliers\ndemeanor bearing before a civilian\nimplicated in misconduct at or foi-\njudge, except.it involves a ship's\nlowing the 1991 Tailhook conven-\ncaptain or more senior commanding\ntion, according to Navy officiais\nofficer\nThe absence of a secretary\nPunishment allowable under Ar\nshould not threaten the Navy's abil-\nticle 15 is limited and cannot in\nity to initiate courts-martial against\nclude a prison term or punitive dis-\nthe officers accused of sexual as-\ncharge.\nsaults or other serious offenses, of-\nNaval legal officers also said that\nficials said.\nmany of the officers who were in-\nvolved in the heavy drinking and\nBut the failure of Clinton to nom-\nrisque behavior during the conven-\nnate a civilian leader for the Navy\ntion or who failed to cooperate in\nwithin the next several months\nthe subsequent investigations may\ncould limit the range of action avail-\nface the lesser punishment rather\nable against Navy and Marine fliers\nthan court-martial\ninvolved in lesser offenses associat-\nCourt-mártial is also considered\ned with T allhook, they said.\nmikely for some of the squadron\nThat would affect a majority of\ncommanders or more senior offi-\nthe officers who are Ekely to be\ncers who failed to stop the improp-\nrecommended for some punish-\ner behavior in Las Vegas, or failed\nment because of misconduct during\nto take action against those under\nthe gathering of carrier based fliers\ntheir command involved in the mis-\nor because of their action or failure\nconduct, the legal authorities said\nto act after. the convention, naval\nTo avoid the statute of Himita\nlegal experts said.\ntions running out, the new secre-\nThe concerns arise from the stat-\ntary must be in office in time to\nute of limitations established by the\nhave all the non-judicial punishment\nUniform Code of Military Justice\nactions completed by Sept.7\n(UCM), and from Defense Secre-\nWhite House collicials said re-\ntary Les Aspin's refusal to release\ncently they have idea-then Clin\nconclusions from investigations of\nfon might select for the\nthe incident until there is a new\nNavy post.\nNavy secretary to oversee proceed-\nBased onther entagon oth-\nings against those named in the\ncials Clinton has adminated once a\nreport.\ncandidate chosen it can Take the\nThe UCMJ gives military author\nadministration-up to two weeks to\nities up to five years after an inci-\nEnish the paperwork necessarystor\ndent to file charges that would be\nsend the formationmention to the\ntried before a court-martial, which\nSenate for confirmation.\nis the military equivalent of a crimi-\nIt then for than two\nnal trial.\nweeks for the Senate Armed Ser\nThat means the Navy has until\nvices Committee to complete its\nSeptember 1996 to formalize char-\nreview and vote DD for warding the\nges against the men who allegedly\nnomination to-the full Senate for\nassaulted as many as 26 women in\nconfirmation.\nthe hallway of the Las Vegas Hilton\nWith the Senate scheduled to be\nduring the Tailnook convention,\nin recess for 10 days each around\nSept. 5-7, 1991.\nMemorial Day and the Fourth of\nBut Article 15 of the code allows\nJuly and for all of August. time for\nonly two years for the military to\naction on a new Navy secretary is\ncomplete action against- personnel\nbecoming short.\n143\nPhantom welfare reform\nNo provisions in the budget package\nillions of voters viewed Bill\nplementing any fundamental changes.\nM\nClinton as a different kind of\nIn fact, her tepid reaction to various\nDemocrat because of his of-\nreform proposals forced Clinton to reas-\nten-repeated promise to\nsure the National Governors' Association\noverhaul America's welfare\nthat he is indeed serious about changing\nsystem.\nthe welfare rules.\nPledging to \"end welfare as we know\nA few weeks ago, the president reiter-\nit.\" Clinton emphasized during the cam-\nated his intention to place a two-year\npaign that \"those who are able must go to\nlimit on welfare benefits. After that time,\nwork.\" He stressed that one of his top\nable-bodied recipients would be obliged\npriorities would be to eliminate the de-\nto work.\nstructive cycle of welfare dependency.\nClinton also promised to name a panel\nSo why aren't any federal funds being\nto deal with the problem. At the time, a\nearmarked for welfare reform in Clin-\nWhite House aide said the president's\nton's five-year budget package?\nnew budget would \"begin to address how\nAdministration officials are offering all\nquickly we're going to spend\" the money\nkinds of feeble excuses to explain away\nto implement reforms.\nthe president's inaction.\nYet, no panel has been named and no\nThey say he is deferring action on\nmoney has been earmarked in Clinton's\nwelfare reform in order to tackle the\nbudget to address welfare reform.\nproblem on a comprehensive scale, simi-\nClinton may be boxing himself into a\nlar to the way he is dealing with health\npolitical corner by refusing to deal with\ncare. Consequently, aides say, precise\nthis issue at the outset of his administra-\ncost estimates cannot be plugged into the\ntion. A president's political power is usu-\nbudget until the administration's reform\nally at its height during his first year in\npackage has been put together.\noffice. And Clinton is going to need all the\nBut there appear to be several other\npolitical muscle he can get if he truly\nfactors contributing to the administra-\nintends to change the welfare system\ntion's délay.\nfrom top to bottom.\nFor example, the Cabinet meinber di-\nAccording to White House officials,\nrectly responsible for handling welfare\nClinton wants to get his budget approved\nreform is lukewarm, at best, to the\nin the next several weeks and then re-\npresident's ideas. As secretary of Health\nsolve the health care dilemma by year's\nand Human Services, Donna Shalala\nend. That would mean deferring welfare\nshould be leading the campaign to trans-\nreform until next year at the earliest. At\nform welfare from a way of life, as Clin-\nthis point, it appears the president\nton puts it, to a second chance. But\ndoesn't even have a credible plan, let\nShalala has shown-no enthusiasm for im-\nalone the support in Congress to enact it.\n144\nWithdrawal/Redaction Marker\nClinton Library\nDOCUMENT NO.\nSUBJECT/TITLE\nDATE\nRESTRICTION\nAND TYPE\n001. schedule\nHome Phone Number. [partial] (1 page)\n04/15/1993\nP6/b(6)\nCOLLECTION:\nClinton Presidential Records\nSpeechwriting\nDavid Kusnet; Liz Bowyer\nOA/Box Number: 4517\nFOLDER TITLE:\n[Press Clips] Thursday, April 15, 1993\n2006-0465-F\nvz268\nRESTRICTION CODES\nPresidential Records Act |44 U.S.C. 2204(a)]\nFreedom of Information Act - 15 U.S.C. 552(b)]\nPI National Security Classified Information [(a)(1) of the PRA|\nb(1) National security classified information |(b)(1) of the FOIA]\nP2 Relating to the appointment to Federal office |(a)(2) of the PRA]\nb(2) Release would disclose internal personnel rules and practices of\nP3 Release would violate a Federal statute [(a)(3) of the PRA]\nan agency |(b)(2) of the FOIA]\nP4 Release would disclose trade secrets or confidential commercial or\nb(3) Release would violate a Federal statute |(b)(3) of the FOIA]\nfinancial information [(a)(4) of the PRA]\nb(4) Release would disclose trade secrets or confidential or financial\nP5 Release would disclose confidential advice between the President\ninformation [(b)(4) of the FOIA]\nand his advisors, or between such advisors [a)(5) of the PRA]\nh(6) Release would constitute a clearly unwarranted invasion of\nP6 Release would constitute a clearly unwarranted invasion of\npersonal privacy |(b)(6) of the FOIA]\npersonal privacy |(a)(6) of the PRA]\nh(7) Release would disclose information compiled for law enforcement\npurposes ((b)(7) of the FOIA]\nC. Closed in accordance with restrictions contained in donor's deed\nb(8) Release would disclose information concerning the regulation of\nof gift.\nfinancial institutions [(b)(8) of the FOIA]\nPRM. Personal record misfile defined in accordance with 44 U.S.C.\nb(9) Release would disclose geological or geophysical information\n2201(3).\nconcerning wells ((b)(9) of the FOIA]\nRR. Document will be reviewed upon request.\nSCHEDULE OF THE PRESIDENT\nFOR\nTHURSDAY, APRIL 15, 1993\nFINAL DRAFT\nSCHEDULER:\nJOSH KING\nHOME:\nP6/(b)(6)\nOFFICE:\n202-456-7560\nWHCA PAGER:\n4450\n[001]\nPRESS DESK:\nANNE EDWARDS\nHOME:\n214\nP6/(b)(6)\nOFFICE:\n202-456-7560\nWHCA PAGER:\n4208\nPRINCIPAL EVENTS:\n*\nMeeting with Leadership of Law Enforcement Organizations -\nWhite House\n*\nOfficial Photographs -\nWhite House\nWEATHER:\nWashington\nMostly cloudy to cloudy with a chance of afternoon showers:\nminimum temperature 46 to 51: maximum temperature 62\nto 67; wind southeast to south a 8 to 15 knots\nas of 04/13/93 5:58pm\nSCHEDULE OF THE PRESIDENT\nFOR\nTHURSDAY, APRIL 15, 1993\nFINAL DRAFT\n7:30 am\nJOG with Ed Yoder\n9:00 am-\nBRIEFING\n9:15 am\nOVAL OFFICE\nStaff Contact: Tony Lake\n9:15 am-\nBRIEFING\n9:30 am\nOVAL OFFICE\nStaff Contact: Tony Lake\n9:30 am-\nMEETING\n9:45 am\nOVAL OFFICE\nStaff Contact: Marcia Hale\n9:45 am-\nMEETING\n10:00 am\nOVAL OFFICE\nStaff Contact: Bob Rubin\n10:00 am-\nMEETING with Leadership of Law Enforcement\n11:00 am\nOrganizations\nStaff Contact: Joan Baggett\n10:00 am\nMeeting with leadership of NAPO, IUPA and IBPO\nOVAL OFFICE\nCLOSED PRESS\n10:10 am\nMeeting with leadership of FOP\nOVAL OFFICE\nCLOSED PRESS\n10:20 am\nStatement\nROSE GARDEN or ROOSEVELT ROOM (if rain)\nProgram:-Audience is seated\n-Principals enter\n-THE PRESIDENT makes statement,\nfollowed by:\n-Bob Scully, NAPO\nas of 04/13/93 5:58pm\n-Dewey Stokes, FOP\n-Robert Kleismet, IUPA\n-Ray McGrath, IBPO\n-THE PRESIDENT greets police officers\n-Principals depart\nOPEN PRESS\n11:00 am-\nMEETING with General Vessey and Ambassador Toon\n11:30 pm\nOVAL OFFICE\nStaff Contact: Tony Lake\nCLOSED PRESS\n11:30 am-\nBRIEFING for Miyazawa visit\n12:30 pm\nROOSEVELT ROOM\nStaff Contact: Tony Lake\n12:30 pm-\nLUNCH with Vice President Gore\n1:30 pm\nOVAL OFFICE\n1:30 pm-\nPHONE AND OFFICE TIME\n3:00 pm\nOVAL OFFICE\n3:00 pm-\nOFFICIAL PHOTOGRAPHS\n4:00 pm\nStaff Contact: Dawn Friedkin\n3:00 pm\nNational Ambassador for the March of Dimes Birth\nDefects Foundation\nOVAL OFFICE\nStaff contact:\nAlexis Herman\nProgram:\n11 participants\nPOOL PRESS\n3:15 pm\nThe Mosaic Minstrels\nROSE GARDEN or GRAND FOYER (rain\nsite)\nStaff contact:\nLorraine Miller\nProgram:\nThe Minstrels will give a brief\nperformance.\n9 children; 4 chaperones; 15 parents\nPOOL PRESS\n3:30 pm\nThe Berwick (PA) High School Bulldogs, AAA State\nFootball Champions\nSOUTH LAWN or EAST ROOM (rain site)\nStaff Contact: Marcia Hale\nProgram:\n100 participants\nPOOL PRESS\nas of 04/13/93 5:58pm\n3:45 pm\nLouisiana Videotape\nOVAL OFFICE\nStaff Contacts: David Dreyer, David Anderson\nCLOSED PRESS\n3:52 pm\nHemispheric Conference Videotape\nOVAL OFFICE\nStaff Contacts: David Dreyer, David Anderson\nCLOSED PRESS\n4:00 pm-\nMEETING\n4:15 pm\nOVAL OFFICE\nStaff Contact: Carol Rasco\n4:15 pm-\nMEETING\n6:00 pm\nROOSEVELT ROOM\nStaff Contact: Maggie Williams\n6:00 pm-\nPRIVATE MEETING\n6:30 pm\nOVAL OFFICE\nStaff Contact: Marcia Hale\nBC AND HRC RON\nWHITE HOUSE\nas of 04/13/93 5:58pm\nLiz Bowyer\nSpeechwriting\nRoom 193 OEOB\nTHE WHITE HOUSE\nOffice of the Press Secretary\nFor Immediate Release\nApril 14, 1993\nPRESS BRIEFING\nBY GEORGE STEPHANOPOULOS\nThe Briefing Room\n12:40 P.M. EDT\nMR. STEPHANOPOULOS: I guess I'm just prepared to take\nquestions today.\nQ\nGeorge, Bob Dole says that the Clinton\nadministration's policy on Bosnia is a failure and that he wants the\nUnited States to take the lead in lifting the arms embargo so that\nthe Bosnian Muslims can defend themselves.\nMR. STEPHANOPOULOS: As you know, President Clinton has\nsaid that that suggestion is under active consideration. Obviously,\nthis is a tragic situation in Bosnia. And if the Bosnian Serbs don't\ncome to the negotiating table in a constructive way, we'll look\nseriously at pressing for lifting the arms embargo. In the meantime,\nwe're going to continue to press for a tough sanctions resolution in\nthe U.N. We're going to continue to work on the Serbs to come to the\nnegotiating table. But the prospect of an arms embargo is something\nthe President certainly will consider if the Serbs don't come to the\ntable.\nQ\nHow much longer are you going to give them to come\nto the table, George?\nMR. STEPHANOPOULOS: We're working on that right now.\nQ\nIt's been a long time.\nQ\nOn February 19th, the President mentioned the value\nadded tax in Ohio. And when he was asked about it later by\nreporters, he said -- quote -- \"That is a radical change in the tax\nsystem of the United States. It's something I think we may have to\nlook at in the years ahead.\" Questioned again about it later he\nsays, \"It is not something that is now under consideration. If we\nstart considering it, I'll tell you.\" It wasn't a trial balloon or\nanything, he said. I was just discussing the tax response to a\nquestion. Donna Shalala, quoted in USA Today this morning -- quote -\n- \"Certainly we're looking at a VAT.\" What's gone on?\nQ\nThe same with Alice Rivlin this morning.\nMR. STEPHANOPOULOS: The health care task force is\nreviewing a number of options. They haven't made any decisions yet.\nAnd as I have said from this podium time and time again, we're not\ngoing to comment on decisions that haven't been made.\nQ\nBut you have also said from this podium time and\ntime again --\nQ\nWait a minute. Whoa, Nelly. Whoa.\nQ\n-- that that was not under consideration.\nMORE\n#56-04/14\n- 2 -\nQ Yes. Clinton says, \"It is not something that is\nnow under consideration. Is that no longer true?\nMR. STEPHANOPOULOS: I believe the working group, as Ms.\nShalala says, has looked at this prospect, but no decisions have been\nmade of any kind.\nQ\nWell, I know. But he said he'd tell us about it if\nit was ever under consideration. I take it that now he is and he\ndidn't tell us about it or --\nMR. STEPHANOPOULOS: Did he say if it was under\nconsideration or if it was something to be proposed?\nQ\n\"If we start considering I'll tell you.\nMR. STEPHANOPOULOS: If it's something to be proposed?\n&\n\"If we start considering it, I'll tell you.\"\nThat's a direct quote.\nMR. STEPHANOPOULOS: The task force has looked at a\nnumber of different options. They have not made any decisions yet.\nThe President has not made any decisions yet. This is -- one of the\nproposals under consideration by the task force was to go out and\ncast as wide a net as possible for different ideas on how to reform\nthe health care system. They have cast a very wide net. They have\nlooked at hundreds of different proposals -- probably thousands of\ndifferent proposals. But the President has not made any decisions.\nQ\nWell, is the President aware of their consideration\nof this option?\nMR. STEPHANOPOULOS: I don't know if he's been briefed\non any preliminary conclusions or anything like that from the task\nforce on this specific proposal of any kind. I don't know that\nthat's gotten to his level. He started yesterday to go through with\nthe task force a very wide range of decisions and I don't believe\nthat that's been presented to him, no.\nQ\nWell, he's not relying on the USA Today to tell him\nwhat his task force is considering in the way of taxes.\nMR. STEPHANOPOULOS: No, he's going through it in a very\ndeliberate fashion. There are a number of decisions that have to be\nmade. I don't know that this proposal has reached that decision-\nmaking point.\nQ\nIf this is still under consideration, that's a\nchange, at least from what we've been told by Dee Dee, I think about\nthree weeks ago or so. She said, that is not an option, talking\nabout the -- had a big argument with somebody over this, so I\nremember it specifically and said it not once, but twice. Is that\nnot the case?\nMR. STEPHANOPOULOS: Again, I don't know if this has\nbeen presented to the President as something that is being looked at\nat some level in the task force.\nQ\nIt was ruled it out, though. I mean, unlike other\noptions that you've kept in the mix, this one specifically was ruled\nout.\nMR. STEPHANOPOULOS: Again, this is something that is\nbeing looked at, but no decision has been made of any kind. I mean,\nit doesn't -- it's not necessarily material until you get to the\nMORE\n#56-04/14\n- 3 -\ndecision-making phase. The working groups are looking at hundreds of\ndifferent options.\nQ\nIf it was ruled out before and it's not ruled out\nnow, then something has changed, George. Yes, no?\nI\nWhen a guy says in February --\nMR. STEPHANOPOULOS: Well, the working groups are\nlooking at the widest possible range of options.\nI\nSo something's changed. They weren't looking at it\nbefore; they're looking at it now.\nMR. STEPHANOPOULOS: Well, I don't know if the working\ngroups have gotten to that point yet. They are casting a very wide\nnet.\nQ\nHow was it possible that you and Dee Dee were able\nto sell -- definitively rule it out as an option previously and now\nare saying that, in fact, it is being considered?\nMR. STEPHANOPOULOS: Again, the working groups are\nlooking at a wide range of options. They have not --\nQ\nDo you deny that you and Dee Dee ruled it -- flatly\nruled it out on several occasions in the past month?\nMR. STEPHANOPOULOS: I don't deny that -- I mean, those\nare the President's words. Those are very clear.\nQ\nSubsequent to the President's words, do you deny\nthat within the last month you and Dee Dee have both publicly ruled\nit out?\nMR. STEPHANOPOULOS: I don't know about the timing. I\nthink what we did was refer back to the President's words and say\nthey stand.\nQ\nSo don't they stand any longer?\nQ\nMarch 25th, Clinton said for the next four to five\nyears it was ruled out.\nMR. STEPHANOPOULOS: Well, those words -- the President\ndid say that in February. The working groups are on a separate\ntrack, and as I said, I don't believe --\nQ\nSeparate from the President?\nMR. STEPHANOPOULOS: I don't believe this has been\npresented to the President.\nQ\nAre they considering something that the President\n--\nQ\nHas ruled out?\nQ\n-- has ruled out? I mean, will the President\nconsider a VAT tax?\nMR. STEPHANOPOULOS: Again, the working groups have not\npresented this to the President. They have looked at a wide range of\noptions. I suppose that if an argument is made, he will clearly\nlisten to it. That does not mean he has decided to do it.\nMORE\n#56-04/14\n- 4 -\nI\nCan we put this another way? In his answer in\nOhio, he looked at the VAT in terms of restructuring the whole tax\nsystem. Under those that was the circumstance that he said it\nmight be considered at some future point. Is that no longer the\ncase, or is that the only way that he can see a VAT emerging?\nMR. STEPHANOPOULOS: I guess I'm not sure exactly what\nyou're asking.\nQ\nHe talked about the VAT in the context of a\nrestructured tax system, not as a specific way to finance health\ncare, for example.\nI\nor anything else.\nQ\nor anything else.\nQ\nIt was always in the context of substituting for\nother taxes at a time of a dramatic overhaul of the whole tax system.\nMR. STEPHANOPOULOS: Right.\nQ\nHas that change, too?\nQ\nIs that still his view?\nMR. STEPHANOPOULOS: I haven't spoken about those\nspecific comments. I think I can just go back to it -- are the\nworking groups have they examined the possibility of a VAT? Yes,\nthey have.\n2\nCertainly we're looking at a VAT, she said.\nMR. STEPHANOPOULOS: They have examined the possibility\nof a VAT. Has it been presented to the President? Has he made a\ndecision? No, he has not.\nQ\nWhat kind of a deal do you have when you've got the\nPresident's appointed task force, obviously not oblivious to his\nruling something out except in the context of some huge down the line\nreform, goes ahead on its own and considers a tax which he has\nspecifically ruled out in any context other than much later, and then\ngoes ahead and announces that that's what they're looking at? Is the\nPresident concerned about that sort of thing?\nMR. STEPHANOPOULOS: I think that the President's\nconcern is to make sure he gets the best health care proposal\npossible. He's concerned with making sure that they have the most\nthorough process for examining all the possible alternatives, all the\ndifferent alternatives. If a decision is made to go forward with\nsomething like that it's certainly something the President will\nexplain and justify. But no decision has been made along those\nlines.\nQ\nWhat does it mean exactly, though, when the\nPresident rules something out? Does it mean it can get back on the\ntable later if a more persuasive argument is made?\nMR. STEPHANOPOULOS: That's just that's indisputably\ntrue. If you but, at the same time, he has not ruled it in. He\nhas not made a proposal.\nQ\nWhat makes him open to it now when he wasn't open\nto it before?\nMR. STEPHANOPOULOS: He's certainly willing to listen to\nthe argument.\nMORE\n#56-04/14\n- 5 -\n&\nWas he willing to listen to the argument for a\nshort-term tax this year, and he wasn't willing to listen to it in\nChilicothe? He's now open to it --\nMR. STEPHANOPOULOS: The context of his comments was\nthat it was not something -- he wanted to be clear that this is not\nsomething he was proposing, not something he was floating.\nQ Not something he was considering. Those are his\nwords -- \"It's not something that's now under consideration. If we\nstart considering it, I'll tell you.' You're now acknowledging, are\nyou not, that it is under consideration and --\nMR. STEPHANOPOULOS: I'm acknowledging that the task\nforce has studied this proposal. I am also stating that the\nPresident has not made a decision on it.\nQ\nBut the door is open for the President to\nreconsider including this as part of --\nMR. STEPHANOPOULOS: Obviously, the working groups are\nlooking at it. Again, but the President has not made a decision.\nQ\nDo you know if they will make a presentation on\nbehalf of the VAT to him?\nMR. STEPHANOPOULOS: I don't know that. I assume that\nif -- I don't know what stage they are it in proposing. I don't know\nthat they're going to make the conclusion that this is something they\nshould present to him. I know this is something the working groups\nare looking at.\nQ\nDo you understand, George, that none of us are\nasking these questions in context of a decision that the President\nhas made, only about what the President is considering?\nMR. STEPHANOPOULOS: I understand that, and I am\nacknowledging that the working groups have examined the issue of a\nVAT.\nQ\nAnd the President will consider it?\nMR. STEPHANOPOULOS: I assume that he will consider the\nargument if it is presented to him.\nQ\nDoes that mean the President -- that working groups\nthink that when the President says no, he means maybe? (Laughter.)\nMR. STEPHANOPOULOS: I think that means that the working\ngroups are trying to do the most thorough job possible.\nQ\nGeorge, can I ask you another question about\nBosnia?\nMR. STEPHANOPOULOS: Sure. (Laughter.)\nQ\nNo, he wants us to stay on this.\nQ\nLet's do gays in the military. (Laughter.)\nQ\nNo, he got out of that swamp.\nQ\nI think we've gotten the bottom line on that VAT.\nReggie Bartholomew, your Special Ambassador in Belgrade, today said\nthat if the Serbs do not accept the agreement that has been worked\nout quote -- \"We will do our part to pursue the lifting of the\nMORE\n#56-04/14\n- 6 -\narms embargo together with our allies.\" That seems to go a bit\nfurther than what you've just said --\nMR. STEPHANOPOULOS: Sounds almost exactly what I just\nsaid.\nQ\nWell, do you accept in other words, you accept\nwhat Reggie --\nMR. STEPHANOPOULOS: Well, the President has said that\nthis is something that's under consideration. It is something he\nwill consider if the current actions don't bring the Serbs to the\ntable.\nQ\nIsn't there some kind of timetable here?\nMR. STEPHANOPOULOS: Yes, there is a timetable. There's\ngoing to be a vote on the U.N. resolution in about 10 days.\nQ\nThat's on sanctions, that's on tightening the\nsanctions.\nMR. STEPHANOPOULOS: That's right, that's sanctions.\nAnd we believe that that will ratchet up the pressure, and we hope\nthat that will bring the Serbs to the table. As you know, Mr.\nBartholomew also met with Mr. Churkin of Russia, and they are also\nworking on ways to bring the Serbs to the table. We will continue to\npressure them in many different ways and this is one possible option\nas well.\nQ\nThe question is whether there's a timetable for\nconsideration or a vote on a decision on lifting the arms embargo,\nnot the sanctions.\nMR. STEPHANOPOULOS: The next vote in the U.N. is on\nsanctions. As far as I know, there are no votes scheduled on lifting\nthe arms embargo. But it is something that we have discussed both\ninternally and with our allies.\nQ\nWhy did Reggie Bartholomew tell the Serbs that the\nU.S. would do that? What was the point of his telling them that?\nMR. STEPHANOPOULOS: Well, clearly, I mean, this is\nsomething that's under consideration, and this is something that we\ntake quite seriously if they do not come to the table. They should\nknow the consequences of failing to come to the table.\nQ\nHave they been given a deadline?\nQ\nWarren Christopher has been saying the same thing\nand it hasn't seemed to change the Serbs' behavior in the least. Why\nshould the Serbs take any heed of a threat to lift the arms embargo\nwhen so far everything that's been done has had no effect on the\nfighting in Bosnia?\nMR. STEPHANOPOULOS: I just don't accept the premise of\nyour question. It has had an effect; the embargo is having an\neffect.\nQ\nWhat effect?\nMR. STEPHANOPOULOS: If the Serbians choose not to heed\nour warnings, then they will face the consequences.\nQ\nWhat effect has it had in Bosnia?\nMORE\n#56-04/14\n- 7 -\nMR. STEPHANOPOULOS: Well, the effect that it has had on\nthe Serbians, it has tightened up -- they are not getting their\nshipments through. We can brief more fully --\nQ\nIn Bosnia, George. In Bosnia what effect has it\nhad?\nMR. STEPHANOPOULOS: Well, it's hard to say if it's\nstopped the aggression to date. That is why we're continuing to\npress for the Serbians to stop. But we believe that over time we\nwill continue to weaken the Serbs and that will have an effect. I'm\nnot saying it's going to happen overnight; it clearly hasn't happened\novernight. But we believe that over time the sanctions can weaken\nthe Serbs. If it fails to work and if the Serbs fail to come to the\nnegotiating table, we'll move forward with the embargo.\nQ\nIsn't there a working deadline, George, of the 24th\n-- the same date as the U.N. -- the scheduled U.N. vote? Hasn't the\nUnited States said, along with many of the other NATO allies, that if\nthe Serbs aren't willing to sign on to the peace accord by then, that\nwe'll seek haven't we said that we will seek --\nMR. STEPHANOPOULOS: We've said continually we're going\nto --\nQ\nBut on that deadline?\nMR. STEPHANOPOULOS: I don't have a specific date, but\nwe're going to move forward with the resolution, the U.N. resolution,\nby around that time. And if that fails to take effect, if that fails\nto bring the Serbs to the table, we will clearly consider other\nactions.\nQ\nIsn't this awfully incremental?\nMR. STEPHANOPOULOS: We're taking a step-by-step\napproach. We're ratcheting up the pressure and we're going to\ncontinue to do that.\nQ\nIs there a possibility, George, that by the time\nall these incremental steps are taken the Serbs will have achieved\ntheir goals and then what's the purpose?\nMR. STEPHANOPOULOS: I think the purpose is to get the\nSerbs to stop the aggression. We are pursuing that goal on many\ndifferent fronts. We are pursuing it through the U.N.; we're\npursuing it through direct talks; we are pursuing it through\ntightening the sanctions. And we will consider lifting the arms\nembargo. We are turning the screws up on the Serbs and we will\ncontinue to do that.\nQ\nBut if the efforts have been unsuccessful in\ngetting the Serbs to stop the aggression how effective will any\ncampaign be to have the Serbs give back what they've gained? I mean,\nonce they're entrenched --\nMR. STEPHANOPOULOS: I can't speculate on that. We're\ngoing to continue to press for them to come to the table now. We're\ngoing to continue to find ways to stop the aggression. But I can't\nsee into the future.\nQ George, on the stimulus package, House Republicans\nsay they're going to hold a series of town meetings on Saturday to\ntry and explain the details of your package. They cite polls which\nshow that the more people learn about it, the less they like it.\nWhat's your strategy to counter that?\nMORE\n#56-04/14\n- 8 -\nMR. STEPHANOPOULOS: The strategy we have is the one\nwe're going to continue. As you saw, the President today pointed up\nthe very real benefits of the summer jobs program that this package\nwill provide: 700,000 new summer jobs this summer for kids in inner\ncities and suburbs to do productive work. We are also going to point\nout the benefits of the highway money, the investments in highways.\nWe're going to point up the benefits of immunization. We're going to\npoint up the benefits of Head Start. We are going to say that the\nRepublicans have a choice: they can take action to create jobs or\nthey can perpetuate the gridlock of the last four years.\nQ\nDoes it concern you, though, that the House now,\nthe House Republicans are after you as well as the Senate?\nMR. STEPHANOPOULOS: The House Republicans voted against\nit before. They made a mistake then; they're making a mistake now.\nQ\nGeorge, does it strike anybody in the\nadministration that it's a bit strong to describe, as the President\ndid this morning, the summer jobs program as -- quote -- \"a\nreaffirmation of a promise of America\"?\nMR. STEPHANOPOULOS: Not at all. I think it's the\npromise of America to give kids a chance to reach their full\npotential.\nQ\nGovernment-funded jobs?\nMR. STEPHANOPOULOS: To give people a chance to work?\nAbsolutely. That is the promise of America.\nI I want to follow up on something I asked yesterday\n-- where does 700,000 summer jobs, where does that figure come from?\nMR. STEPHANOPOULOS: That is on top of. I did look at\nit. There are currently 600,000 summer jobs in the pipeline. This\nwill be on top of the 600,000, so it will be a total of 1.3 million.\nQ\nThe 700,000 would be created by the stimulus\npackage?\nMR. STEPHANOPOULOS: Yes.\nQ\nWhere does that number come from? Because we've\nbeen told all along that the stimulus package would create 500,000\nnew jobs. And according to Panetta, that breaks down to something\nlike 200,000 full-time jobs and 150,000 summer jobs.\nMR. STEPHANOPOULOS: Yes, but the summer -- that's when\nyou do their full-time equivalence. I mean, 700,000 individuals will\nreceive jobs this summer. When you calculate it for the full-time\njob effect, you have to do -- I don't know what the exact formula is.\nQ\nSeven hundred thousand part-time jobs --\nMR. STEPHANOPOULOS: -- 150,000 or --\nQ\nOne to four because it's three months.\nMR. STEPHANOPOULOS: Thank you.\nQ\nCan I follow up on that? Did the President\nmisspeak this morning when he said that some of the government money\nfor these summer jobs will pay for private -- for kids to work in the\nprivate sector?\nMORE\n#56-04/14\n- 9 -\nMR. STEPHANOPOULOS: Not necessarily. I mean, I think\nthat there will be grants available. That's one of the ways that you\npay for the jobs. At the same time, he's also issued a challenge to\nthe private sector to hire kids on their own as well.\nQ\nTax dollars, for instance, would pay for kids to\nwork at Time-Warner?\nMR. STEPHANOPOULOS: I think the Time-Warner is actually\nsomebody coming forward and actually doing a grant. That's going to\nbe the bulk of it. There could be isolated instances, though, where\nthere would be grants to businesses.\nQ\nHas the President spoken with any Senate\nRepublicans this week?\nMR. STEPHANOPOULOS: No, but there's been a lot of\ncontact with Senate Republicans in the White House.\nQ\nAt a lower level. But the President hasn't?\nMR. STEPHANOPOULOS: The President has not, no.\nQ\nGetting any closer to get the votes?\nMR. STEPHANOPOULOS: We're continuing to work on it.\nQ\nAnybody leaning your way?\nQ\nOn Haiti, The New York Times seems to be reporting\nsomething of a breakthrough in Aristide's attitude towards the coup\nleaders. Can you confirm that there has been this change, and what\nimpact will it have on the process? And what did Pezzullo have to\nsay yesterday in his report?\nMR. STEPHANOPOULOS: Pezzullo did brief the principals.\nI can't confirm what's actually happening in the talks. I would\nleave that to the negotiators themselves. But Mr. Caputo has\nreturned to Haiti. We have received a briefing here at the White\nHouse from Ambassador Pezzullo. And as we have said time and time\nagain, we believe that assurances of security are important to a\nfinal resolution to a broader political settlement.\nQ\nGeorge, yesterday you offered some selective\nbreakdowns of how the stimulus would impact some states and cities.\nCan we get a complete breakdown by state of how these jobs would be\nimpacted?\nMR. STEPHANOPOULOS: I think we have it for most states,\nyes. And I think we can get it out.\nI\nCould you make that generally available?\nMR. STEPHANOPOULOS: I believe we can.\nQ\nAnd could you do it by the component of the\nstimulus? In other words --\nMR. STEPHANOPOULOS: I don't know if we can do -- I know\nthat we can do it by summer jobs and other jobs. I don't know how\ndeeply it can be broken down. But clearly, we can break it down into\nsummer jobs and other jobs.\nI And can I follow up? Is this the information that\nJeff Eller and the rest of the White House is using in the ads in the\nstates?\nMR. STEPHANOPOULOS: I don't know if they're ads, but\nthey're press releases.\nQ\nCan you describtORhat those press releases contain?\n- 10 -\nMR. STEPHANOPOULOS: All we're doing is pointing out the\nbenefits of this package to various states. For instance, I know\nthat today Senator Dole is heading up to Vermont and New Hampshire.\nAnd I would point out that the stimulus package, the jobs package\ncreates 1,000 jobs in Vermont. It creates 2,000 jobs in New\nHampshire. And the people of those states should remind him that\nthis is important.\nQ\nWhere are the releases going?\nMR. STEPHANOPOULOS: They go to the states.\nQ\nTo whom?\nMR. STEPHANOPOULOS: We can get them. It's no problem.\nQ\nCan we get it?\nQ\nWhy don't you put them out here as well?\nMR. STEPHANOPOULOS: I think we can.\nQ\nThis afternoon? Would that be possible?\nMR. STEPHANOPOULOS: I'll have to check. I don't know.\nBut as soon as we can.\n2\nAre you focusing these press releases on states\nwhere there are moderate or pragmatic Republican senators?\nMR. STEPHANOPOULOS: I think we're trying to get as many\nas we can. It's actually quite difficult to pull this together and\nwe're doing our best. We're putting them out as we get them.\nQ\nWhy are you so closely tracking Senator Dole's\nschedule?\nMR. STEPHANOPOULOS: I was just following it.\n&\nAre press releases going along to states where he's\nvisiting?\nMR. STEPHANOPOULOS: I'm not sure. I think that\nprobably there are press releases going to Vermont. (Laughter.)\nQ\nWill there be a man in a chicken suit waiting?\n(Laughter.)\nQ\nGeorge, as the President goes about the business of\ndefending what's in his stimulus package, he doesn't address what\nseems to be the Republicans' main point, that you're funding it with\ndeficit spending rather than \"if it's so important, why not come up\nwith the funding for it\" seems to be the Republican argument. And\nhow do you answer that?\nMR. STEPHANOPOULOS: What was answer is, we are paying\nfor it over time. And if you look at our budget, we pay for this\npackage over time. We believe right now the economy needs a jump-\nstart for jobs.\nQ\nYou're not claiming, are you, that that doesn't add\nto the deficit this year?\nMR. STEPHANOPOULOS: I'm saying we're paying for it over\ntime. I didn't say that.\nMORE\n- 11 -\nQ\nI know that, George. But I mean, from the\nbeginning, the question -- we do have annual budgets and things --\ndeficit spending will pay for that this year, will it not?\nMR. STEPHANOPOULOS: This year they clearly will. But\nover time our budget fully pays for this program.\nI\nWhat you're saying is that there are savings that\nwould cover this if it were this year in future years?\nMR. STEPHANOPOULOS: Absolutely. That's exactly what I\nsaid.\nQ\nI know that, but there is going to be outstanding\ndebt, it will add to the national debt from this year --\nMR. STEPHANOPOULOS: No, we're reducing the deficit by\n$500 billion $514 billion over the next four years.\nQ\nYou mean you're reducing it below what it would\nhave been?\nMR. STEPHANOPOULOS: Exactly.\nQ\nIn fact, you're adding a very large amount to the\nnational debt over the period of --\nMR. STEPHANOPOULOS: But we're reducing it far more from\nwhat it would have been. That's true.\nQ\nWashington-type reduction. (Laughter.)\nQ\nYou're getting to be a grumpy old man.\nQ\nGeorge, has any decision been made about the White\nHouse or the President's participation in the gay rights march coming\nup in a week and a half?\nMR. STEPHANOPOULOS: We're working on the President's\nschedule now. I believe he's going to be at the Senate Democratic\nretreat in Jamestown that weekend.\nQ\nWill he address it by phone?\nMR. STEPHANOPOULOS: I don't know about that. It's a\nlittle far out, but I believe he's going to be in the Senate retreat.\nQ\nSo will he have the leaders in a day or two before\nthe speech?\nMR. STEPHANOPOULOS: I don't know. I would expect that\nat some point he would meet with the leaders of some of these groups.\nI don't know the schedule on it, though.\nI\nWill there be an AIDS czar appointed prior to or in\nconjunction with the event?\nMR. STEPHANOPOULOS: I'm just not sure.\nQ\nApril 22nd is Earth Day. What is the President\ngoing to do to mark that, and is it the case that he is going to sign\nthe biodiversity treaty that day?\nMR. STEPHANOPOULOS: I know there's been some work on\nthe biodiversity treaty. I don't know about signing it that day, but\nI would expect he'll have a statement on Earth Day or right around\nthen.\nMORE\n- 12 -\nQ\nWhere is the work on the biodiversity treaty?\nMR. STEPHANOPOULOS: I'd have to check with Katie\nMcGinty. I just know that there's been some work done, but I don't\nknow exactly what.\nQ\nWhen is Earth Day?\nMR. STEPHANOPOULOS: The 22nd, I think.\nQ\nWhy is it you know that he is going to have a\nstatement on Earth Day but you don't know if he's going to have a\nstatement on the gay rights march?\nMR. STEPHANOPOULOS: I said I don't know if he's going\nto meet or when he's going to meet.\nQ\nDo you have a statement on the gay rights march?\nMR. STEPHANOPOULOS: I don't, actually, no. I wouldn't\nbe surprised if he did, though.\nQ\nDo you have some details on the Miyazawa visit?\nMR. STEPHANOPOULOS: It's a working visit on Friday and\nthe President is looking forward to that in discussing a number of\nissues including Russian aid and the Japanese stimulus package and\nthe trade issues between the two countries.\nQ\nThere was some expectations that a second aid\npackage to Russia was going to be unveiled at the G-7 meeting and, if\nI understand, it hasn't happened. Why is that or what's the status\non that?\nMR. STEPHANOPOULOS: The G-7 meeting is still going on\nand, as you know, Secretaries Bentsen and Christopher have talked\nabout the outlines of a possible package. But we're going to\ncontinue to consult with Congress and our G-7 allies on that.\nQ\nWe will not then make any kind of announcement\nduring the two-day meeting?\nMR. STEPHANOPOULOS: The meeting's not over yet.\nQ\nIs that when you're going to make one?\nMR. STEPHANOPOULOS: I'm not ruling out the possibility.\nQ\n-- the President's going to announce it tomorrow.\nQ\nBentsen said that.\nQ\nYes, Bentsen said it would be tomorrow.\nQ\nSo did Christopher.\nMR. STEPHANOPOULOS: I'd have to look at that, but I\nbelieve it is more likely that the announcement will come out of\nTokyo.\nQ\nGeorge, has there been further consideration here\nabout going to -- sending the President out to Los Angeles?\nMR. STEPHANOPOULOS: I don't know that there's -- it's\nnot something we've ruled out. We don't have a date set for it.\nMORE\n- 13 -\nQ\nGeorge, you all have a position or do you support\nImmigration's plan to settle 4,000 Iraqi prisoners in the United\nStates?\nMR. STEPHANOPOULOS: It's the first I've heard of it.\nI\nGeorge, there was a report today about the --\nI Fortunately. (Laughter.)\nQ\n-- about the pace of appointments and says that\nPresident Clinton is behind President Bush in the number of positions\nthat people have been nominated for. Are you going to speed up the\npace of nominations or where do you stand with it?\nMR. STEPHANOPOULOS: We filled 814 of the President's\nappointments. And it's broken down -- we have 384 Schedule c; 147\nnoncareer SES; 213 PAS full-time. I'm not sure what that means --\n(laughter) -- 70 PA full-time. And this is about the same -- it's\nabout the same pace of President Bush. Obviously, as you move along\nfarther, once you -- each level of appointment actually has a\nmultiplier effect and frees up far more appointments. So we expect\nthe process to speed up. But we're at the pace of Bush. Obviously\nwe'd like to get these done as quickly as possible.\nI would point out that the FBI background checks and the\nbackground check is far more comprehensive and it takes more time\nthan our predecessors, and that is part of the holdup. But we're\nworking on it.\nQ\nIs that because of Nannygate?\nMR. STEPHANOPOULOS: I think that's an awful big part of\nit, yes.\nQ\nIn the story this morning, you were at\napproximately the same pace as Bush in making appointments, but way\nbehind in winning confirmations.\nMR. STEPHANOPOULOS: That's where the background checks\ncomes into play. That's the problem.\nQ\nThat's the background checks problem? Because I\nmean, you have a Democratic Senate --\nMR. STEPHANOPOULOS: No, that's not the -- you make the\nappointments, and then it takes quite a bit of time to fill out all\nthe forms and have the background checks done. That's exactly where\nthe problem is.\nQ\nWhat's the President doing this afternoon, and\nwhat's on the plan for tomorrow?\nMR. STEPHANOPOULOS: He's got some meetings -- just\noffice meetings this afternoon for the most part, on a variety of\nissues that -- probably a half-dozen different issues. And then\nhe'll be -- tomorrow we'll have an event, probably again focused on\nthe stimulus and jobs package out of here at the White House. And\nFriday is the Miyazawa meeting.\nQ\nWill you be releasing his tax return tomorrow,\nGeorge?\nMR. STEPHANOPOULOS: Either tomorrow or Friday.\nQ\nIs there going to be a pre-briefing regarding the\nJapanese Prime Minister's visit tomorrow?\nMORE\n- 14 -\nMR. STEPHANOPOULOS: I don't know about tomorrow, but\nwe'll probably get something done, as we usually do, for these\nvisits.\nQ\nWas Reverend Jackson here this morning and do you\nknow what that was about?\nMR. STEPHANOPOULOS: He was here. He met with a group\nof us here at the White House, including Mack McLarty.\nI\nWho?\nQ\nReverend Jackson.\nMR. STEPHANOPOULOS: Reverend Jackson. Mack McLarty,\nme, Gene Sperling, Bruce Reed, Jeff Watson, Mark Gearan.\nQ\nTalking about Haiti?\nMR. STEPHANOPOULOS: We talked about general urban\npolicy. He is about to go to Los Angeles. He was just back from\nMississippi, where we had a good victory last night; and he's going\non to Los Angeles.\nQ\nDid he request the meeting?\nMR. STEPHANOPOULOS: Actually, no. He's in continual\ncontact with the President. He had written a letter on a variety of\nissues, and so we asked him to come in and talk about it.\nQ\nGeorge, Dole is having a fundraiser for Jeffords\ntonight in Vermont. Have you guys been in contact with Jeffords at\nall on this?\nMR. STEPHANOPOULOS: I think there's been some contact,\nsure.\nQ\nCan you tell us about the contacts?\nMR. STEPHANOPOULOS: I'm not sure --\nQ\nDo you know who contacted him or what was said?\nMR. STEPHANOPOULOS: I know that Howard Paster talked to\nhim and they just has a general talk about the package.\nQ\nAnd did he express his support for it now, or is he\n--\nMR. STEPHANOPOULOS: I can't divulge the details of the\nconversation, but there have been conversations.\nQ\nThe L.A. Times is reporting that abortion --\nelective abortions is likely to be included in the basic health care\npackage. Is this something the President is considering?\nMR. STEPHANOPOULOS: Again --\nQ\nAlong with the VAT? (Laughter.)\nMR. STEPHANOPOULOS: It's certainly something that's\nbeen looked at, but no decisions have been made.\nQ\nWhat was the question?\nMR. STEPHANOPOULOS: The L.A. Times story on whether\nabortions will be covered by the President's health plan.\nMORE\n- 15 -\nQ\nDid the President in his meeting -- did you in your\nmeeting with Reverend Jackson ask his advice, solicit his advice\nabout what kind of stance the White House should take in the wake of\nthe verdict in L.A.?\nMR. STEPHANOPOULOS: Well, we certainly talked about the\nsituation in Los Angeles and the long-term prospects for economic\ndevelopment and other issues.\nQ\nFor instance, did you discuss whether it would be\nhelpful for the President to go there or not?\nMR. STEPHANOPOULOS: Well, we discussed a wide range of\nissues related to Los Angeles. That was certainly one of them.\nQ\nLetting you perhaps go out on the way you came in,\nI need to go back to Bosnia just for a second and ask --\nMR. STEPHANOPOULOS: Oh, good.\nQ\n-- your reaction to Margaret Thatcher's comments\nthat you're just sitting by and watching a massacre.\nMR. STEPHANOPOULOS: Well, we've been pushing very hard\non a number of fronts for more aggressive action. We will continue\nto do that.\nQ\nCan you tell us if you've made any progress in your\ntalks on the stimulus package getting a compromise? I mean, we don't\nhave any feel except talks are ongoing. Have you talked to like 20\npeople or --\nMR. STEPHANOPOULOS: I don't know the numbers. We've\ntalked to several people and we've had wide-ranging sessions.\nQ\nAnyone leaning your way?\nMR. STEPHANOPOULOS: I can't get into that. We're just\ngoing to keep working through Tuesday.\nTHE PRESS: Thank you.\nEND\n1:10 P.M. EDT\n#56-04/14\nTHE WHITE HOUSE\nOffice of the Press Secretary\nFor Immediate Release\nApril 14, 1993\nREMARKS BY THE PRESIDENT\nAT SUMMER JOBS CONFERENCE\nHyatt Regency\nCrystal City, Virginia\n11:22 A.M. EDT\nTHE PRESIDENT: Thank you very much. The speech that\nOctavius gave says more than anything I will be able to say today\nabout why it's important to give all of our young people a chance to\nget a work experience and to continue to learn, to merge the nature\nof learning and work; why it's important to honor the efforts of\npeople like Jerry Levin and Nancye Combs and Pat Irving and all of\nthose who are here.\nI want to thank the Secretaries of Labor and Education\nand all the people who work with them for sponsoring this; and my\ngood friend, Governor Wilder, for being here and for speaking; and\nall of the business and local community leaders from the city and\ncounty and state level from around America who are here.\nThis has been a pretty fun day. (Laughter.) I loved\nhearing the young people sing. It was music to my ears because it is\ntheir future that we are really struggling about. (Applause.) A\nyear and a half ago I began the quest to seek the presidency because\nI was concerned about their future. Because I believe that our\ncountry, which had always been a beacon of hope for the young, had\ntoo little opportunity, was too divided among ourselves across lines\nof income and race and region and other ways, without a vision to\ntake us into the future.\nI entered with the hope that together we could create\nmore opportunity and insist on much more responsibility from all of\nour people. But in the process we might recreate the best of\nAmerica's community, knowing that together we could always to more\nthan we could individually and that we might secure our future.\nAll of you here today are committed to that. The 1,000\njobs that Jerry Levin has committed Time-Warner to is symbolic of the\ncommitments made by many of the private sector people who are here,\nand those who are around the country. The work that Nancye Combs\ndoes, and the successes of all the young people like those on this\nstage, and especially the eloquent statement Octavius Jeffers -- all\nthose things show that together we know what we need to do, and we're\non the right track.\nLast July when I was traveling across America's\nheartland in my luxurious bus, I visited Seneca High School in\nLouisville, Kentucky. And there I met young people and business\npeople who were participating in the Louisville Education and\nEmployment Partnership. I saw what Nancye Combs talked about today.\nI saw how the young people were making an extra effort to succeed\nboth in school and at work. I saw, as I have seen many times in my\nown state, the principle illustrated that Octavius has talked about\n-- that for millions of American young people it is really an\nimpediment to both their learning and their ability to be good\nworkers to draw a sharp dividing line between what is work and what\nis learning.\nMORE\n- 2 -\nIn the world in which we are living, the average young\nperson will change the nature of work seven or eight times in a\nlifetime. We must learn to merge the work world and the learning\nworld much better. And we must determine that all of our young\npeople see the opportunities that some of them have had showcased\nhere today.\nWhether you're in business or in government or in\neducation, you know that we have a big job to do when it comes to\nbuilding a future that really, honestly includes opportunity for all\nof our people. There are still a lot of people who say, well, things\nare pretty good here in Washington and everything's fine; the best\nthing we can do about this whole thing is nothing. They all have\njobs. (Laughter.) All the people who say that. (Applause.)\nThey all have health insurance. They all have a pretty\ngood education. And they all have a pretty secure knowledge that\nthey'll be okay no matter what happens. I say that not to be either\npolitical or unduly critical, but to point out that one of the great\nchallenges of this age for every advanced nation everyone -- is to\nfully develop the capacities of all of its people, and then find work\nfor them to do.\nAll the European countries have higher unemployment\nrates than we do, but also stronger support systems for the\nunemployed. The Japanese unemployment rate has been going up.\nThey're going to adopt a stimulus that, even if you count it in its\nmost rigorous terms, is three or four times bigger than the one that\nI have proposed to create jobs.\nIn West Germany alone, the unemployment rate is now\nabout as high as ours. This is a big problem for advanced nations.\nIt costs a lot of money to add an extra employee, with a lot of\npressure from low-wage producers in other countries that are growing\ntheir own economies and trying to provide new opportunity for their\npeople.\nBut it is especially important for America for two\nreasons: One is, we have a whole lot of folks who, unless we move\naggressively, will not have the education and skills we need to be\ncompetitive and productive in a nation like this. The second is,\neven if we educate them all, if there aren't jobs they will be robbed\nof the fruits of their educational labors. People need to be able to\nwork in this country. (Applause.)\nWe have always had some unemployment; and, indeed, some\nof it is normal. You've always got some people leaving jobs and\nmoving around the country and doing first one thing and another. We\nhave now, at this moment in our history, the necessity for all big\norganizations, including the government, to reexamine the way they\nare organized and who ask whether there are too many people working\nat some kinds of jobs. But in the whole, we must still be able to\ncreate jobs in a country like America, to provide people with the\nchance to work.\nIt's going to be difficult for me to make the welfare\nreform proposals that I will make to Congress in the next couple of\nmonths it's going to be hard for me to make those work if, at the\nend of all this work, to get off welfare there isn't a job.\n(Applause.)\nSo we have two tasks. One is to develop the capacity of\nthe American people to perform without regard to race or income or\nthe circumstances of their birth. The other is to make sure that\nthere are some opportunities for them to bring to bear for their\ntalent and to be rewarded with a paycheck. It is a great challenge.\nI do not pretend that all of the answers are simple. But I know if\nMORE\n- 3 -\nyou want to ask the American people, all of them, to be more\nresponsible, if you want to recreate a sense of community in this\ncountry that bridges the lines of race and income and region, you\nhave got to have opportunity in that mix.\nA part of our vision for America has to be a future for\nevery young person in this country who's willing to play by the rules\nand work hard and strive for the end of the rainbow. There has to be\nsomething at the end of that rainbow. And that is what we are\nbasically here to talk about today: What can we all do as partners,\nrecognizing none of us can do it alone, to develop the capacities of\nour people to succeed wherever they live and whatever their\nbackground. And then, what can we do to make sure that there's\nsomething there for them to do?\nThe summer jobs program we're discussing today is an\nintegral part of that plan, because it will promote the values of\nwork and opportunity and fairness, community. It will put the people\nfirst, and it does have a partnership between the public and private\nsector.\nI said when I addressed the United States Congress in\nFebruary on this program that I would seek to create about 700,000\nextra summer jobs from government sources and then challenge the\nAmerican business community to meet that target so that we can create\nmore than a million new summer jobs over and above what had been\ncreated before.\nMany, many people have responded to that challenge. And\nJerry is just a shining example of that which has been replicated in\nthis room and around the country people who are going to do more\nthan they otherwise would in the private sector to give young people\na work experience. And it is terribly important.\nI want to emphasize that this summer jobs program is\npart of an overall commitment to increase the capacity of the\nAmerican people from retraining defense workers who lose their\njobs and other adults who need to acquire new skills; to improving\nthe transition from school to work for young people who don't go to\ncollege but do need at least two years of post-high school training\neither on the job or in a community college or a vocational setting,\nSO that they can be competitive workers, making it possible for more\npeople to go on to college who do want to go.\nAll these things are part and parcel of a comprehensive\nplan. It's also important, as I said, that we create more jobs. The\nemergency jobs program that I asked the Congress to adopt would\ncreate a half a million extra jobs over the next year and a half, and\nthat would reduce the unemployment rate by a half a percent. It\nwould also enable us to absorb more young people coming into the work\nforce in jobs that otherwise will not be created.\nIt also will help a lot of cities and counties to\ninvest in things that need to be done at the grass-roots level --\nprojects long delayed, water projects, sewer projects, park projects,\nnew industries and particularly in small and medium-size communities\n-- a whole range of things that will improve the economy and improve\nthe environment.\nThe summer jobs program is an important part of that\nbecause we have tried for the first time, through the work of the\nLabor Department and the Education Department and through reaching\nout to people like you, to make this more than just a one-shot summer\njobs program; to integrate it with private sector efforts; to\nhopefully replicate it in each coming summer; to move these young\npeople into further educational opportunities and to further job\nopportunities; and to have a strong, meaningful education component\nMORE\n- 4 -\nto these summer jobs something that the United States government\nhas never fully emphasized before.\nA lot of these young people, as you well know, because\nthey come from difficult backgrounds, because they go to school in\ndifficult and challenging circumstances, need extra help in building\ntheir basic skills in math and language, reasoning and in other\nareas. And a lot of educational studies show that young people who\nhave difficulty in school often forget as much as 30 percent of what\nthey learn over the summer and then that has to be repeated the next\nyear.\nWhat we are trying to do here is to give people the\nopportunity to learn good work habits and to reinforce their learning\nskills and to put them together; and then, hopefully, over the next\ncouple of years, if our entire program passes, to give every school\nin this country the opportunity to have a good work and learning\nenvironment.\nThere will be more applied academics, more opportunities\nfor people to learn and work during the school year, so that this\nwill not simply be an isolated moment for these young folks, but will\nbe a part of building a whole new educational experience, a whole new\nwork experience, and moving on a pathway to a better future.\nThe summer jobs programs are not designed to be make-\nwork jobs. They're designed to make a future for the people holding\nthe job. And that's what they will do. In the process, they'll help\nto build local communities, to strengthen local economies, to solve\nlocal problems. Real jobs -- renovating housing, repairing public\nbuildings, doing clerical work, providing nursing assistance in\nhospitals, supervising and training children at child care centers,\nand learning all the way. Challenging young people to learn while\nthey earn, but letting them earn.\nYou know, it's very difficult to make a case to people\nwho have never seen opportunity on their own street that they should\ndo this, that, or the other thing if there's no evidence of the\nopportunity that's at the end of the effort. I have not been sparing\nin going for the last year-and-a-half into places where it isn't\nexactly popular to say it, and say I wanted to reform the welfare\nsystem; I wanted to toughen child support; I wanted to require people\nto work; I was sick and tired of people being irresponsible in the\nuse of guns on the streets, and I wanted to change all that. But if\nyou're going to summon people to greater responsibility, you have to\nreward them when they do the right thing with opportunity.\n(Applause.)\nThe young people we propose to put to work under our\nprogram will spend 90 hours learning basic skills, such as math,\nreading, writing -- either on the job in the classroom. They will\nstretch their minds as well as work up a sweat. They will have a\nsense of accomplishment. It will literally be a summer challenge,\nbut a challenge that will take them into a different life.\nSo I want to ask all of you to support this effort even\nas I, as your President, support your effort. At the end of the\nsummer we will evaluate all the young people who participate. We'll\nsee whether they, instead of falling behind over the summer\nacademically as too many young people do, they stayed even or moved\nahead. I suspect that they will.\nThis summer, Secretary Reich and Secretary Riley and I\nwill be visiting many of your communities. We'll really try to learn\nfrom you which of these efforts are working, what we should do next\nsummer, how we can build it in to what goes on during the school\nyear, how we can build in our job training efforts and the works that\nwe do with your companies to make sense of this whole thing -- so\nMORE\n- 5 -\nthat we maximize the impact of the taxpayer dollar and your private\ninvestments as well.\nWe want to honor the companies and the communities, the\nbusiness leaders and the young people who do the very best jobs this\nsummer. And, again, I want to say to all of you in private business\nwho have matched our effort, I thank you. And to all of you who\nhaven't, and those across the country who may listen or learn about\nthis event today, I want to implore other private employers to\nstretch a little bit to give other young people a chance to work this\nsummer. I'm telling you, we cannot go through another 10 years when\nwe don't give these children anything to say yes to. If we exhort\nthem to do right, we've got to be able to reward them. (Applause.)\nWhen the other speakers were talking, I was sitting up\nhere on the platform, listening and reveling. And they got talking\nabout work, and I got to thinking about all the different things I've\ndone to make a living in my life. When I was 13, I made a very\nfoolish short-term business investment: I set up a comic book stand\nand sold two trunks full of comic books. Made more money than I had\never had in my life. But if I had saved those trunks, they'd be\nworth $100,000 today. (Laughter.)\nThat does not mean young people should not be\nentrepreneurial. It just means that you can't foresee a generation\nahead. I have mowed yards and cleared land and built houses and\nworked in body shops and the parts departments of a car dealership.\nAnd I've done a lot of different things for a living. Some\npeople say I got into politics to escape work. (Laughter.)\nI learned something from every job I ever had. But I\ngrew up in a generation where I literally did not know a living soul\nwithout regard to race or income who wanted to work who didn't have a\njob. I grew up in a generation when all you had to really say to\npeople is, get an education and you'll be all right. You'll get a\njob and you'll make more money next year than you did this year. Now\nI live in a generation full of people, most of whom don't make any\nmore money in real dollars than they did 10 years ago and they're\nworking longer hours and they're paying more for the basics of life.\nAnd we are now wondering whether we can create the jobs that these\nyoung people want.\nNow, I want to close by reemphasizing these two things:\nIt doesn't matter what kind of economic policies this administration\npursues, or how much productivity increases there are in the private\nsector, if young Americans don't get a good education, don't learn\nhow to work and can't be productive, those jobs will not be created\nin this country. Machines will do the work or the work will be done\noff-shore by people who have the same skill levels and can work for a\nthird or a fourth or a fifth the wages. So nothing we can do\neconomically will matter unless we build the skills and capacities of\nAmerica's work force. And anybody that pretends otherwise is just\nkidding.\nOn the other hand, we need to be honest. Every wealthy\ncountry in the world, including the United States, is having\ndifficulty creating jobs. If I knew everything that needs to be done\nI'd be glad to tell you and we could just call off the whole\ndeliberations of Congress and everything else. I don't have all the\nanswers. But I know this: Doing nothing is not the answer.\n(Applause.)\nAnd so the jobs program that I have presented to\nCongress, with the summer jobs, with the money for the cities and the\ncounties, through the Community Development Program, with the\ninfrastructure money, is a small part of a big budget. It is an\nattempt to engage in an experiment to see whether or not, with the\neconomy recovering in terms of corporate profit, we can give a little\nMORE\n- 6 -\nboost to it, give opportunities to young people, create a half a\nmillion jobs and maybe get the engine going again.\nMost of the jobs in this program are going to be jobs in\nthe private sector, not government jobs, even though it's government\nmoney. And the lion's share of the work in rebuilding the American\neconomy obviously will come from the private sector. That's the kind\nof system we have and it works pretty well.\nBut this is the challenge we have. So I ask all of you\nhere today to support the summer jobs program, to ask your friends\nand neighbors to support it, to go back home and ask your employers\nto make a little extra effort; to do what you can to help me pass the\nfunds to create the 700,000 jobs that the United States government\nshould create this summer, so that together we can have this\npartnership. Because more than anything else, we have to give a\nfuture -- a future that our young people can believe in.\nWe need to send them a message that here in America if\nyou study hard and work hard, if you obey the law and contribute\nsomething to your community, you will be rewarded by your country.\nYou can build a future from you own dreams.\nThat has always been the promise of America. Together\nthat's what this summer of challenge needs to be: a reaffirmation of\nthe promise of America for so many young people to whom that promise\nhas been an illusion. We can make it a reality.\nThank you very much. (Applause.)\nEND\n11:45 A.M. EDT"
}