WSJ_24.pos

The	DT
economy	NN
's	POS
temperature	NN
will	MD
be	VB
taken	VBN
from	IN
several	JJ
vantage	NN
points	NNS
this	DT
week	NN
,	,
with	IN
readings	NNS
on	IN
trade	NN
,	,
output	NN
,	,
housing	NN
and	CC
inflation	NN
.	.

The	DT
most	RBS
troublesome	JJ
report	NN
may	MD
be	VB
the	DT
August	NNP
merchandise	NN
trade	NN
deficit	NN
due	JJ
out	IN
tomorrow	NN
.	.

The	DT
trade	NN
gap	NN
is	VBZ
expected	VBN
to	TO
widen	VB
to	TO
about	IN
$	$
9	CD
billion	CD
from	IN
July	NNP
's	POS
$	$
7.6	CD
billion	CD
,	,
according	VBG
to	TO
a	DT
survey	NN
by	IN
MMS	NNP
International	NNP
,	,
a	DT
unit	NN
of	IN
McGraw-Hill	NNP
Inc.	NNP
,	,
New	NNP
York	NNP
.	.

Thursday	NNP
's	POS
report	NN
on	IN
the	DT
September	NNP
consumer	NN
price	NN
index	NN
is	VBZ
expected	VBN
to	TO
rise	VB
,	,
although	IN
not	RB
as	RB
sharply	RB
as	IN
the	DT
0.9	CD
%	NN
gain	NN
reported	VBN
Friday	NNP
in	IN
the	DT
producer	NN
price	NN
index	NN
.	.

That	DT
gain	NN
was	VBD
being	VBG
cited	VBD
as	IN
a	DT
reason	NN
the	DT
stock	NN
market	NN
was	VBD
down	IN
early	RB
in	IN
Friday	NNP
's	POS
session	NN
,	,
before	IN
it	PRP
got	VBD
started	VBN
on	IN
its	PRP$
reckless	JJ
190-point	JJ
plunge	NN
.	.

Economists	NNS
are	VBP
divided	VBN
as	IN
to	TO
how	WRB
much	JJ
manufacturing	VBG
strength	NN
they	PRP
expect	VBP
to	TO
see	VB
in	IN
September	NNP
reports	NNS
on	IN
industrial	JJ
production	NN
and	CC
capacity	NN
utilization	NN
,	,
also	RB
due	JJ
tomorrow	NN
.	.

Meanwhile	RB
,	,
September	NNP
housing	NN
starts	NNS
,	,
due	JJ
Wednesday	NNP
,	,
are	VBP
thought	VBN
to	TO
have	VB
inched	VBN
upward	RB
.	.

``	``
There	EX
's	VBZ
a	DT
possibility	NN
of	IN
a	DT
surprise	NN
''	''
in	IN
the	DT
trade	NN
report	NN
,	,
said	VBD
Michael	NNP
Englund	NNP
,	,
director	NN
of	IN
research	NN
at	IN
MMS	NNP
.	.

A	DT
widening	NN
of	IN
the	DT
deficit	NN
,	,
if	IN
it	PRP
were	VBD
combined	VBN
with	IN
a	DT
stubbornly	RB
strong	JJ
dollar	NN
,	,
would	MD
exacerbate	VB
trade	NN
problems	NNS
--	:
but	CC
the	DT
dollar	NN
weakened	VBD
Friday	NNP
as	IN
stocks	NNS
plummeted	VBD
.	.

In	IN
any	DT
event	NN
,	,
Mr.	NNP
Englund	NNP
and	CC
many	JJ
others	NNS
say	VBP
that	IN
the	DT
easy	JJ
gains	NNS
in	IN
narrowing	VBG
the	DT
trade	NN
gap	NN
have	VBP
already	RB
been	VBN
made	VBN
.	.

``	``
Trade	NN
is	VBZ
definitely	RB
going	VBG
to	TO
be	VB
more	RBR
politically	RB
sensitive	JJ
over	IN
the	DT
next	JJ
six	CD
or	CC
seven	CD
months	NNS
as	IN
improvement	NN
begins	VBZ
to	TO
slow	VB
,	,
''	''
he	PRP
said	VBD
.	.

Exports	NNS
are	VBP
thought	VBN
to	TO
have	VB
risen	VBN
strongly	RB
in	IN
August	NNP
,	,
but	CC
probably	RB
not	RB
enough	RB
to	TO
offset	VB
the	DT
jump	NN
in	IN
imports	NNS
,	,
economists	NNS
said	VBD
.	.

Views	NNS
on	IN
manufacturing	VBG
strength	NN
are	VBP
split	VBN
between	IN
economists	NNS
who	WP
read	VBP
September	NNP
's	POS
low	JJ
level	NN
of	IN
factory	NN
job	NN
growth	NN
as	IN
a	DT
sign	NN
of	IN
a	DT
slowdown	NN
and	CC
those	DT
who	WP
use	VBP
the	DT
somewhat	RB
more	JJR
comforting	VBG
total	JJ
employment	NN
figures	NNS
in	IN
their	PRP$
calculations	NNS
.	.

The	DT
wide	JJ
range	NN
of	IN
estimates	NNS
for	IN
the	DT
industrial	JJ
output	NN
number	NN
underscores	VBZ
the	DT
differences	NNS
:	:
The	DT
forecasts	NNS
run	VBD
from	IN
a	DT
drop	NN
of	IN
0.5	CD
%	NN
to	TO
an	DT
increase	NN
of	IN
0.4	CD
%	NN
,	,
according	VBG
to	TO
MMS	NNP
.	.

A	DT
rebound	NN
in	IN
energy	NN
prices	NNS
,	,
which	WDT
helped	VBD
push	VB
up	RP
the	DT
producer	NN
price	NN
index	NN
,	,
is	VBZ
expected	VBN
to	TO
do	VB
the	DT
same	JJ
in	IN
the	DT
consumer	NN
price	NN
report	NN
.	.

The	DT
consensus	NN
view	NN
expects	VBZ
a	DT
0.4	CD
%	NN
increase	NN
in	IN
the	DT
September	NNP
CPI	NNP
after	IN
a	DT
flat	JJ
reading	NN
in	IN
August	NNP
.	.

Robert	NNP
H.	NNP
Chandross	NNP
,	,
an	DT
economist	NN
for	IN
Lloyd	NNP
's	POS
Bank	NNP
in	IN
New	NNP
York	NNP
,	,
is	VBZ
among	IN
those	DT
expecting	VBG
a	DT
more	RBR
moderate	JJ
gain	NN
in	IN
the	DT
CPI	NNP
than	IN
in	IN
prices	NNS
at	IN
the	DT
producer	NN
level	NN
.	.

``	``
Auto	NN
prices	NNS
had	VBD
a	DT
big	JJ
effect	NN
in	IN
the	DT
PPI	NNP
,	,
and	CC
at	IN
the	DT
CPI	NNP
level	NN
they	PRP
wo	MD
n't	RB
,	,
''	''
he	PRP
said	VBD
.	.

Food	NN
prices	NNS
are	VBP
expected	VBN
to	TO
be	VB
unchanged	JJ
,	,
but	CC
energy	NN
costs	NNS
jumped	VBD
as	RB
much	RB
as	IN
4	CD
%	NN
,	,
said	VBD
Gary	NNP
Ciminero	NNP
,	,
economist	NN
at	IN
Fleet\/Norstar	NNP
Financial	NNP
Group	NNP
.	.

He	PRP
also	RB
says	VBZ
he	PRP
thinks	VBZ
``	``
core	NN
inflation	NN
,	,
''	''
which	WDT
excludes	VBZ
the	DT
volatile	JJ
food	NN
and	CC
energy	NN
prices	NNS
,	,
was	VBD
strong	JJ
last	JJ
month	NN
.	.

He	PRP
expects	VBZ
a	DT
gain	NN
of	IN
as	RB
much	JJ
as	IN
0.5	CD
%	NN
in	IN
core	NN
inflation	NN
after	IN
a	DT
summer	NN
of	IN
far	JJ
smaller	JJR
increases	NNS
.	.

Housing	NN
starts	NNS
are	VBP
expected	VBN
to	TO
quicken	VB
a	DT
bit	NN
from	IN
August	NNP
's	POS
annual	JJ
pace	NN
of	IN
1,350,000	CD
units	NNS
.	.

Economists	NNS
say	VBP
an	DT
August	NNP
rebound	NN
in	IN
permits	NNS
for	IN
multifamily	RB
units	NNS
signaled	VBD
an	DT
increase	NN
in	IN
September	NNP
starts	NNS
,	,
though	IN
activity	NN
remains	VBZ
fairly	RB
modest	JJ
by	IN
historical	JJ
standards	NNS
.	.

Two-Way	NNP
Street	NNP

If	IN
the	DT
sixty-day	JJ
plant-closing	JJ
law	NN
's	VBZ
fair	JJ
,	,
Why	WRB
should	MD
we	PRP
not	RB
then	RB
amend	VB
the	DT
writ	NN
To	TO
require	VB
that	IN
all	DT
employees	NNS
give	VBP
Similar	JJ
notice	NN
before	IN
they	PRP
quit	VBP
?	.

--	:
Rollin	NNP
S.	NNP
Trexler	NNP
.	.

Candid	NNP
Comment	NNP

When	WRB
research	NN
projects	NNS
are	VBP
curtailed	VBN
due	JJ
to	TO
government	NN
funding	NN
cuts	NNS
,	,
are	VBP
we	PRP
``	``
caught	VBN
with	IN
our	PRP$
grants	NNS
down	IN
''	''
?	.

--	:
C.E.	NNP
Friedman	NNP
.	.

Assuming	VBG
the	DT
stock	NN
market	NN
does	VBZ
n't	RB
crash	VB
again	RB
and	CC
completely	RB
discredit	VB
yuppies	NNS
and	CC
trading	NN
rooms	NNS
,	,
American	JJ
television	NN
audiences	NNS
in	IN
a	DT
few	JJ
months	NNS
may	MD
be	VB
seeing	VBG
Britain	NNP
's	POS
concept	NN
of	IN
both	DT
.	.

``	``
Capital	NNP
City	NNP
''	''
is	VBZ
a	DT
weekly	JJ
series	NN
that	WDT
premiered	VBD
here	RB
three	CD
weeks	NNS
ago	IN
amid	IN
unprecedented	JJ
hype	NN
by	IN
its	PRP$
producer	NN
,	,
Thames	NNP
Television	NNP
.	.

The	DT
early	JJ
episodes	NNS
make	VBP
you	PRP
long	JJ
for	IN
a	DT
rerun	NN
of	IN
the	DT
crash	NN
of	IN
1987	CD
.	.

Let	VB
's	PRP
make	VB
that	DT
1929	CD
,	,
just	RB
to	TO
be	VB
sure	JJ
.	.

According	VBG
to	TO
the	DT
program	NN
's	POS
publicity	NN
prospectus	NN
,	,
``	``
Capital	NNP
City	NNP
,	,
''	''
set	VBN
at	IN
Shane	NNP
Longman	NNP
,	,
a	DT
fictional	JJ
mid-sized	JJ
securities	NNS
firm	JJ
with	IN
#	#
500	CD
million	CD
capital	NN
,	,
``	``
follows	VBZ
the	DT
fortunes	NNS
of	IN
a	DT
close-knit	JJ
team	NN
of	IN
young	JJ
,	,
high-flying	JJ
dealers	NNS
,	,
hired	VBN
for	IN
their	PRP$
particular	JJ
blend	NN
of	IN
style	NN
,	,
genius	NN
and	CC
energy	NN
.	.

But	CC
with	IN
all	PDT
the	DT
money	NN
and	CC
glamour	NN
of	IN
high	JJ
finance	NN
come	VBP
the	DT
relentless	JJ
pressures	NNS
to	TO
do	VB
well	RB
;	:
pressure	NN
to	TO
pull	VB
off	RP
another	DT
million	CD
before	IN
lunch	NN
;	:
pressure	NN
to	TO
anticipate	VB
the	DT
market	NN
by	IN
a	DT
fraction	NN
of	IN
a	DT
second	NN
...	:
''	''

You	PRP
need	MD
n't	RB
be	VB
a	DT
high-powered	JJ
securities	NNS
lawyer	NN
to	TO
realize	VB
the	DT
prospectus	NN
is	VBZ
guilty	JJ
of	IN
less	RBR
than	IN
full	JJ
disclosure	NN
.	.

The	DT
slickly	RB
produced	VBD
series	NN
has	VBZ
been	VBN
criticized	VBN
by	IN
London	NNP
's	POS
financial	JJ
cognoscenti	NNS
as	IN
inaccurate	JJ
in	IN
detail	NN
,	,
but	CC
its	PRP$
major	JJ
weakness	NN
is	VBZ
its	PRP$
unrealistic	JJ
depiction	NN
of	IN
the	DT
characters	NNS
'	POS
professional	JJ
and	CC
private	JJ
lives	NNS
.	.

Turned	VBN
loose	RB
in	IN
Shane	NNP
Longman	NNP
's	POS
trading	NN
room	NN
,	,
the	DT
yuppie	NN
dealers	NNS
do	VBP
little	RB
right	RB
.	.

Judging	VBG
by	IN
the	DT
money	NN
lost	VBN
and	CC
mistakes	NNS
made	VBN
in	IN
the	DT
early	JJ
episodes	NNS
,	,
Shane	NNP
Longman	NNP
's	POS
capital	NN
should	MD
be	VB
just	RB
about	IN
exhausted	VBN
by	IN
the	DT
final	JJ
13th	JJ
week	NN
.	.

In	IN
the	DT
opening	VBG
episode	NN
we	PRP
learn	VBP
that	IN
Michelle	NNP
,	,
a	DT
junior	JJ
bond	NN
trader	NN
,	,
has	VBZ
indeed	RB
pulled	VBN
off	RP
another	DT
million	CD
before	IN
lunch	NN
.	.

Trouble	NN
is	VBZ
,	,
she	PRP
has	VBZ
lost	VBN
it	PRP
just	RB
as	RB
quickly	RB
.	.

Rather	RB
than	IN
keep	VB
the	DT
loss	NN
a	DT
secret	NN
from	IN
the	DT
outside	JJ
world	NN
,	,
Michelle	NNP
blabs	VBZ
about	IN
it	PRP
to	TO
a	DT
sandwich	NN
man	NN
while	IN
ordering	VBG
lunch	NN
over	IN
the	DT
phone	NN
.	.

Little	JJ
chance	NN
that	IN
Shane	NNP
Longman	NNP
is	VBZ
going	VBG
to	TO
recoup	VB
today	NN
.	.

Traders	NNS
spend	VBP
the	DT
morning	NN
frantically	RB
selling	VBG
bonds	NNS
,	,
in	IN
the	DT
belief	NN
that	IN
the	DT
U.S.	NNP
monthly	JJ
trade	NN
figures	NNS
will	MD
look	VB
lousy	JJ
.	.

Ah	UH
,	,
perfidious	JJ
Columbia	NNP
!	.

The	DT
trade	NN
figures	NNS
turn	VBP
out	RP
well	RB
,	,
and	CC
all	PDT
those	DT
recently	RB
unloaded	VBN
bonds	NNS
spurt	VBP
in	IN
price	NN
.	.

So	RB
much	RB
for	IN
anticipating	VBG
the	DT
market	NN
by	IN
a	DT
fraction	NN
of	IN
a	DT
second	NN
.	.

And	CC
a	DT
large	JJ
slice	NN
of	IN
the	DT
first	JJ
episode	NN
is	VBZ
devoted	VBN
to	TO
efforts	NNS
to	TO
get	VB
rid	JJ
of	IN
some	DT
nearly	RB
worthless	JJ
Japanese	JJ
bonds	NNS
(	(
since	IN
when	WRB
is	VBZ
anything	NN
Japanese	JJ
nearly	RB
worthless	JJ
nowadays	RB
?	.
)	)
.	.

Surprisingly	RB
,	,
Shane	NNP
Longman	NNP
survives	VBZ
the	DT
week	NN
,	,
only	RB
to	TO
have	VB
a	DT
senior	JJ
executive	NN
innocently	RB
bumble	VB
his	PRP$
way	NN
into	IN
becoming	VBG
the	DT
target	NN
of	IN
a	DT
criminal	JJ
insider	NN
trading	NN
investigation	NN
.	.

Instead	RB
of	IN
closing	VBG
ranks	NNS
to	TO
protect	VB
the	DT
firm	NN
's	POS
reputation	NN
,	,
the	DT
executive	NN
's	POS
internal	JJ
rivals	NNS
,	,
led	VBN
by	IN
a	DT
loutish	JJ
American	NNP
,	,
demand	VBP
his	PRP$
resignation	NN
.	.

The	DT
plot	NN
is	VBZ
thwarted	VBN
when	WRB
the	DT
firm	NN
's	POS
major	JJ
stockholder	NN
,	,
kelp	NN
farming	NN
on	IN
the	DT
other	JJ
side	NN
of	IN
the	DT
globe	NN
,	,
hurries	VBZ
home	RB
to	TO
support	VB
the	DT
executive	NN
.	.

But	CC
the	DT
investigation	NN
continues	VBZ
.	.

If	IN
you	PRP
can	MD
swallow	VB
the	DT
premise	NN
that	IN
the	DT
rewards	NNS
for	IN
such	JJ
ineptitude	NN
are	VBP
six-figure	JJ
salaries	NNS
,	,
you	PRP
still	RB
are	VBP
left	VBN
puzzled	VBN
,	,
because	IN
few	JJ
of	IN
the	DT
yuppies	NNS
consume	VBP
very	RB
conspicuously	RB
.	.

In	IN
fact	NN
,	,
few	JJ
consume	VBP
much	RB
of	IN
anything	NN
.	.

Two	CD
share	NN
a	DT
house	NN
almost	RB
devoid	JJ
of	IN
furniture	NN
.	.

Michelle	NNP
lives	VBZ
in	IN
a	DT
hotel	NN
room	NN
,	,
and	CC
although	IN
she	PRP
drives	VBZ
a	DT
canary-colored	JJ
Porsche	NNP
,	,
she	PRP
has	VBZ
n't	RB
time	NN
to	TO
clean	VB
or	CC
repair	VB
it	PRP
;	:
the	DT
beat-up	JJ
vehicle	NN
can	MD
be	VB
started	VBN
only	RB
with	IN
a	DT
huge	JJ
pair	NN
of	IN
pliers	NNS
because	IN
the	DT
ignition	NN
key	NN
has	VBZ
broken	VBN
off	RP
in	IN
the	DT
lock	NN
.	.

And	CC
it	PRP
takes	VBZ
Declan	NNP
,	,
the	DT
obligatory	JJ
ladies	NNS
'	POS
man	NN
of	IN
the	DT
cast	NN
,	,
until	IN
the	DT
third	JJ
episode	NN
to	TO
get	VB
past	IN
first	JJ
base	NN
with	IN
any	DT
of	IN
his	PRP$
prey	NN
.	.

Perhaps	RB
the	DT
explanation	NN
for	IN
these	DT
anomalies	NNS
is	VBZ
that	IN
class-conscious	JJ
Britain	NNP
is	VBZ
n't	RB
ready	JJ
to	TO
come	VB
to	TO
terms	NNS
with	IN
the	DT
wealth	NN
created	VBN
by	IN
the	DT
Thatcherian	JJ
free-enterprise	NN
regime	NN
.	.

After	IN
all	DT
,	,
this	DT
is	VBZ
n't	RB
old	JJ
money	NN
,	,
but	CC
new	JJ
money	NN
,	,
and	CC
in	IN
many	JJ
cases	NNS
,	,
young	JJ
money	NN
.	.

This	DT
attitude	NN
is	VBZ
clearly	RB
illustrated	VBN
in	IN
the	DT
treatment	NN
of	IN
Max	NNP
,	,
the	DT
trading	NN
room	NN
's	POS
most	RBS
flamboyant	JJ
character	NN
.	.

Yuppily	RB
enough	RB
,	,
he	PRP
lives	VBZ
in	IN
a	DT
lavishly	RB
furnished	VBN
converted	VBN
church	NN
,	,
wears	VBZ
designer	NN
clothes	NNS
and	CC
drives	VBZ
an	DT
antique	JJ
car	NN
.	.

But	CC
apparently	RB
to	TO
make	VB
him	PRP
palatable	JJ
,	,
even	RB
lovable	JJ
,	,
to	TO
the	DT
masses	NNS
,	,
the	DT
script	NN
inflates	VBZ
pony-tailed	JJ
Max	NNP
into	IN
an	DT
eccentric	JJ
genius	NN
,	,
master	NN
of	IN
11	CD
Chinese	JJ
dialects	NNS
.	.

He	PRP
takes	VBZ
his	PRP$
wash	NN
to	TO
the	DT
laundromat	NN
,	,
where	WRB
he	PRP
meets	VBZ
a	DT
punky	JJ
French	JJ
girl	NN
who	WP
dupes	VBZ
him	PRP
into	IN
providing	VBG
a	DT
home	NN
for	IN
her	PRP$
pet	NN
piranha	NN
and	CC
then	RB
promptly	RB
steals	VBZ
his	PRP$
car	NN
and	CC
dumps	VBZ
it	PRP
in	IN
Dieppe	NNP
.	.

In	IN
producing	VBG
and	CC
promoting	VBG
``	``
Capital	NNP
City	NNP
,	,
''	''
Thames	NNP
has	VBZ
spent	VBN
about	IN
as	RB
much	JJ
as	IN
Shane	NNP
Longman	NNP
loses	VBZ
on	IN
a	DT
good	JJ
day	NN
.	.

The	DT
production	NN
costs	NNS
are	VBP
a	DT
not	RB
inconsiderable	JJ
#	#
8	CD
million	CD
(	(
$	$
12.4	CD
million	CD
)	)
,	,
and	CC
would	MD
have	VB
been	VBN
much	RB
higher	JJR
had	VBD
not	RB
the	DT
cost	NN
of	IN
the	DT
trading	NN
floor	NN
set	NN
been	VBN
absorbed	VBN
in	IN
the	DT
budget	NN
of	IN
``	``
Dealers	NNS
,	,
''	''
an	DT
earlier	JJR
made-for-TV	JJ
movie	NN
.	.

Another	DT
half	DT
million	CD
quid	NN
went	VBD
for	IN
a	DT
volley	NN
of	IN
full-page	JJ
advertisements	NNS
in	IN
six	CD
major	JJ
British	JJ
newspapers	NNS
and	CC
for	IN
huge	JJ
posters	NNS
in	IN
the	DT
London	JJ
subway	NN
.	.

These	DT
expenses	NNS
create	VBP
a	DT
special	JJ
incentive	NN
for	IN
``	``
Capital	NNP
City	NNP
's	POS
''	''
producers	NNS
to	TO
flog	VB
it	PRP
,	,
or	CC
a	DT
Yank-oriented	JJ
version	NN
of	IN
it	PRP
,	,
in	IN
America	NNP
.	.

Thames	NNP
's	POS
U.S.	NNP
marketing	NN
agent	NN
,	,
Donald	NNP
Taffner	NNP
,	,
is	VBZ
preparing	VBG
to	TO
do	VB
just	RB
that	DT
.	.

He	PRP
is	VBZ
discreetly	RB
hopeful	JJ
,	,
citing	VBG
three	CD
U.S.	NNP
comedy	NN
series	NN
--	:
``	``
Three	NNP
's	POS
Company	NNP
,	,
''	''
``	``
Too	NNP
Close	NNP
for	IN
Comfort	NNP
''	''
and	CC
``	``
Check	NNP
It	NNP
Out	NNP
''	''
--	:
that	WDT
had	VBD
British	JJ
antecedents	NNS
.	.

Perhaps	RB
without	IN
realizing	VBG
it	PRP
,	,
Mr.	NNP
Taffner	NNP
simultaneously	RB
has	VBZ
put	VBN
his	PRP$
finger	NN
on	IN
the	DT
problem	NN
and	CC
an	DT
ideal	JJ
solution	NN
:	:
``	``
Capital	NNP
City	NNP
''	''
should	MD
have	VB
been	VBN
a	DT
comedy	NN
,	,
a	DT
worthy	JJ
sequel	NN
to	TO
the	DT
screwball	JJ
British	JJ
``	``
Carry	NNP
On	NNP
''	''
movies	NNS
of	IN
the	DT
1960s	CD
.	.

The	DT
seeds	NNS
already	RB
are	VBP
in	IN
the	DT
script	NN
.	.

The	DT
first	JJ
episode	NN
concluded	VBD
with	IN
a	DT
marvelously	RB
cute	JJ
scene	NN
in	IN
which	WDT
the	DT
trading-room	NN
crew	NN
minded	VBD
a	DT
baby	NN
,	,
the	DT
casualty	NN
of	IN
a	DT
broken	VBN
marriage	NN
at	IN
the	DT
firm	NN
.	.

And	CC
many	JJ
in	IN
the	DT
young	JJ
cast	NN
bear	VBP
striking	JJ
resemblances	NNS
to	TO
American	JJ
TV	NN
and	CC
movie	NN
personalities	NNS
known	VBN
for	IN
light	JJ
roles	NNS
.	.

Joanna	NNP
Kanska	NNP
looks	VBZ
like	IN
a	DT
young	JJ
Zsa	NNP
Zsa	NNP
Gabor	NNP
;	:
William	NNP
Armstrong	NNP
,	,
who	WP
plays	VBZ
Max	NNP
,	,
could	MD
pass	VB
for	IN
Hans	NNP
Conreid	NNP
,	,
and	CC
Douglas	NNP
Hodge	NNP
(	(
Declan	NNP
)	)
for	IN
James	NNP
Farentino	NNP
;	:
Rolf	NNP
Saxon	NNP
is	VBZ
a	DT
passable	JJ
Tommy	NNP
Noonan	NNP
and	CC
Dorian	NNP
Healy	NNP
could	MD
easily	RB
double	VB
for	IN
Huntz	NNP
Hall	NNP
,	,
the	DT
blank-faced	JJ
foil	NN
of	IN
the	DT
Bowery	NNP
Boys	NNPS
comedies	NNS
.	.

So	RB
,	,
OK	UH
kids	NNS
,	,
everybody	NN
on	IN
stage	NN
for	IN
``	``
Carry	NNP
On	NNP
Trading	NNP
''	''
:	:
The	DT
cast	NN
is	VBZ
frantically	RB
searching	VBG
the	DT
office	NN
for	IN
misplaced	VBN
Japanese	JJ
bonds	NNS
that	WDT
suddenly	RB
have	VBP
soared	VBN
in	IN
value	NN
because	IN
Dai-Ichi	NNP
Kangyo	NNP
Bank	NNP
has	VBZ
just	RB
bought	VBN
the	DT
White	NNP
House	NNP
.	.

The	DT
pressure	NN
is	VBZ
too	RB
much	RB
for	IN
Zsa	NNP
Zsa	NNP
,	,
who	WP
slaps	VBZ
a	DT
security	NN
guard	NN
.	.

He	PRP
backflips	VBZ
into	IN
a	DT
desktop	NN
computer	NN
terminal	NN
,	,
which	WDT
explodes	VBZ
,	,
covering	VBG
Huntz	NNP
Hall	NNP
's	POS
face	NN
with	IN
microchips	NNS
.	.

And	CC
all	PDT
the	DT
while	NN
,	,
the	DT
bonds	NNS
are	VBP
in	IN
the	DT
baby	NN
's	POS
diaper	NN
.	.

It	PRP
should	MD
run	VB
forever	RB
.	.

Mr.	NNP
Rustin	NNP
is	VBZ
senior	JJ
correspondent	NN
in	IN
the	DT
Journal	NNP
's	POS
London	NNP
bureau	NN
.	.

Axa-Midi	NNP
Assurances	NNPS
of	IN
France	NNP
gave	VBD
details	NNS
of	IN
its	PRP$
financing	VBG
plans	NNS
for	IN
its	PRP$
proposed	VBN
$	$
4.5	CD
billion	CD
acquisition	NN
of	IN
Farmers	NNPS
Group	NNP
Inc.	NNP
,	,
in	IN
amended	VBN
filings	NNS
with	IN
insurance	NN
regulators	NNS
in	IN
the	DT
nine	CD
U.S.	NNP
states	NNS
where	WRB
Farmers	NNP
operates	VBZ
.	.

The	DT
proposed	VBN
acquisition	NN
is	VBZ
part	NN
of	IN
Sir	NNP
James	NNP
Goldsmith	NNP
's	POS
unfriendly	JJ
takeover	NN
attempt	NN
for	IN
B.A.T	NNP
Industries	NNPS
PLC	NNP
,	,
the	DT
British	JJ
tobacco	NN
,	,
retailing	NN
,	,
paper	NN
and	CC
financial	JJ
services	NNS
concern	NN
that	WDT
is	VBZ
parent	NN
of	IN
Los	NNP
Angeles-based	JJ
Farmers	NNPS
.	.

In	IN
an	DT
attempt	NN
to	TO
appease	VB
U.S.	NNP
regulators	NNS
'	POS
concern	NN
over	IN
a	DT
Goldsmith	NNP
acquisition	NN
of	IN
Farmers	NNPS
,	,
Sir	NNP
James	NNP
in	IN
August	NNP
agreed	VBD
to	TO
sell	VB
Farmers	NNPS
to	TO
Axa	NNP
if	IN
he	PRP
is	VBZ
successful	JJ
in	IN
acquiring	VBG
B.A.T	NNP
.	.

As	IN
part	NN
of	IN
the	DT
agreement	NN
,	,
Axa	NNP
agreed	VBD
to	TO
invest	VB
$	$
1	CD
billion	CD
in	IN
Hoylake	NNP
Investments	NNPS
Ltd.	NNP
,	,
Sir	NNP
James	NNP
's	POS
acquisition	NN
vehicle	NN
.	.

Of	IN
the	DT
total	JJ
$	$
5.5	CD
billion	CD
to	TO
be	VB
paid	VBN
to	TO
Hoylake	NNP
by	IN
Axa	NNP
,	,
about	IN
$	$
1	CD
billion	CD
will	MD
come	VB
from	IN
available	JJ
resources	NNS
of	IN
Axa	NNP
's	POS
parent	NN
,	,
Axa-Midi	NNP
Group	NNP
,	,
$	$
2.25	CD
billion	CD
will	MD
be	VB
in	IN
the	DT
form	NN
of	IN
notes	NNS
issued	VBN
by	IN
Axa	NNP
,	,
and	CC
the	DT
remaining	VBG
$	$
2.25	CD
billion	CD
will	MD
be	VB
in	IN
long-term	JJ
bank	NN
loans	NNS
.	.

In	IN
an	DT
interview	NN
Thursday	NNP
,	,
Claude	NNP
Bebear	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	JJ
officer	NN
of	IN
Axa	NNP
,	,
said	VBD
his	PRP$
group	NN
has	VBZ
already	RB
obtained	VBN
assurances	NNS
from	IN
a	DT
group	NN
of	IN
banks	NNS
led	VBN
by	IN
Cie	NNP
.	.
Financiere	NNP
de	NNP
Paribas	NNP
that	IN
they	PRP
can	MD
provide	VB
the	DT
loan	NN
portion	NN
of	IN
the	DT
financing	NN
.	.

The	DT
other	JJ
banking	VBG
companies	NNS
in	IN
the	DT
group	NN
are	VBP
Credit	NNP
Lyonnais	NNP
,	,
Societe	NNP
Generale	NNP
,	,
BankAmerica	NNP
Corp.	NNP
and	CC
Citicorp	NNP
,	,
he	PRP
said	VBD
.	.

Mr.	NNP
Bebear	NNP
said	VBD
Axa-Midi	NNP
Group	NNP
has	VBZ
``	``
more	RBR
than	IN
$	$
2.5	CD
billion	CD
of	IN
non-strategic	JJ
assets	NNS
that	IN
we	PRP
can	MD
and	CC
will	MD
sell	VB
''	''
to	TO
help	VB
pay	VB
off	RP
debt	NN
from	IN
the	DT
acquisition	NN
.	.

He	PRP
said	VBD
the	DT
assets	NNS
to	TO
be	VB
sold	VBN
would	MD
be	VB
``	``
non-insurance	NN
''	''
assets	NNS
,	,
including	VBG
a	DT
beer	NN
company	NN
and	CC
a	DT
real	JJ
estate	NN
firm	NN
,	,
and	CC
would	MD
n't	RB
include	VB
any	DT
pieces	NNS
of	IN
Farmers	NNPS
.	.

``	``
We	PRP
wo	MD
n't	RB
put	VB
any	DT
burden	NN
on	IN
Farmers	NNPS
,	,
''	''
he	PRP
said	VBD
.	.

The	DT
amended	VBN
filings	NNS
also	RB
point	VBP
out	RP
that	DT
under	IN
a	DT
new	JJ
agreement	NN
,	,
Hoylake	NNP
has	VBZ
an	DT
absolute	JJ
obligation	NN
to	TO
sell	VB
Farmers	NNPS
to	TO
Axa	NNP
upon	IN
an	DT
acquisition	NN
of	IN
B.A.T	NNP
.	.

``	``
We	PRP
hope	VBP
that	DT
with	IN
what	WP
we	PRP
did	VBD
,	,
the	DT
regulators	NNS
will	MD
not	RB
need	VB
to	TO
evaluate	VB
Hoylake	NNP
,	,
and	CC
they	PRP
can	MD
directly	RB
look	VB
at	IN
the	DT
agreement	NN
with	IN
us	PRP
,	,
because	IN
Hoylake	NNP
wo	MD
n't	RB
be	VB
an	DT
owner	NN
of	IN
Farmers	NNPS
at	IN
anytime	RB
,	,
''	''
Mr.	NNP
Bebear	NNP
said	VBD
.	.

Any	DT
change	NN
of	IN
control	NN
in	IN
Farmers	NNPS
needs	VBZ
approval	NN
of	IN
the	DT
insurance	NN
commissioners	NNS
in	IN
the	DT
nine	CD
states	NNS
where	WRB
Farmers	NNPS
and	CC
its	PRP$
related	VBN
companies	NNS
are	VBP
incorporated	VBN
.	.

The	DT
amended	VBN
filings	NNS
were	VBD
required	VBN
because	IN
of	IN
the	DT
new	JJ
agreement	NN
between	IN
Axa	NNP
and	CC
Hoylake	NNP
,	,
and	CC
to	TO
reflect	VB
the	DT
extension	NN
that	IN
Sir	NNP
James	NNP
received	VBD
last	JJ
month	NN
under	IN
British	JJ
takeover	NN
rules	NNS
to	TO
complete	VB
his	PRP$
proposed	VBN
acquisition	NN
.	.

Hoylake	NNP
dropped	VBD
its	PRP$
initial	JJ
#	#
13.35	CD
billion	CD
(	(
$	$
20.71	CD
billion	CD
)	)
takeover	NN
bid	NN
after	IN
it	PRP
received	VBD
the	DT
extension	NN
,	,
but	CC
said	VBD
it	PRP
would	MD
launch	VB
a	DT
new	JJ
bid	NN
if	IN
and	CC
when	WRB
the	DT
propsed	VBN
sale	NN
of	IN
Farmers	NNPS
to	TO
Axa	NNP
receives	VBZ
regulatory	JJ
approval	NN
.	.

A	DT
spokesman	NN
for	IN
B.A.T	NNP
said	VBD
of	IN
the	DT
amended	VBN
filings	NNS
that	IN
,	,
``	``
It	PRP
would	MD
appear	VB
that	IN
nothing	NN
substantive	JJ
has	VBZ
changed	VBN
.	.

The	DT
new	JJ
financing	NN
structure	NN
is	VBZ
still	RB
a	DT
very-highly	JJ
leveraged	JJ
one	CD
,	,
and	CC
Axa	NNP
still	RB
plans	VBZ
to	TO
take	VB
out	RP
75	CD
%	NN
of	IN
Farmers	NNPS
'	POS
earnings	NNS
as	IN
dividends	NNS
to	TO
service	VB
their	PRP$
debt	NN
.	.
''	''

That	DT
dividend	NN
is	VBZ
almost	RB
double	RB
the	DT
35	CD
%	NN
currently	RB
taken	VBN
out	IN
of	IN
Farmers	NNPS
by	IN
B.A.T	NNP
,	,
the	DT
spokesman	NN
added	VBD
.	.

``	``
It	PRP
would	MD
have	VB
severe	JJ
implications	NNS
for	IN
Farmers	NNPS
'	POS
policy	NN
holders	NNS
.	.
''	''

To	TO
fend	VB
off	RP
Sir	NNP
James	NNP
's	POS
advances	NNS
,	,
B.A.T	NNP
has	VBZ
proposed	VBN
a	DT
sweeping	JJ
restructuring	NN
that	WDT
would	MD
pare	VB
it	PRP
to	TO
a	DT
tobacco	NN
and	CC
financial	JJ
services	NNS
concern	NN
.	.

Dismal	JJ
sales	NNS
at	IN
General	NNP
Motors	NNPS
Corp.	NNP
dragged	VBD
the	DT
U.S.	NNP
car	NN
and	CC
truck	NN
market	NN
down	IN
below	IN
year-ago	JJ
levels	NNS
in	IN
early	JJ
October	NNP
,	,
the	DT
first	JJ
sales	NNS
period	NN
of	IN
the	DT
1990	CD
model	NN
year	NN
.	.

The	DT
eight	CD
major	JJ
domestic	JJ
auto	NN
makers	NNS
sold	VBD
160,510	CD
North	NNP
American-made	JJ
cars	NNS
in	IN
the	DT
first	JJ
10	CD
days	NNS
of	IN
October	NNP
,	,
a	DT
12.6	CD
%	NN
drop	NN
from	IN
a	DT
year	NN
earlier	RBR
.	.

Domestically	RB
built	VBN
truck	NN
sales	NNS
were	VBD
down	IN
10.4	CD
%	NN
to	TO
86,555	CD
pickups	NNS
,	,
vans	NNS
and	CC
sport	NN
utility	NN
vehicles	NNS
.	.

The	DT
heavy	JJ
use	NN
of	IN
incentives	NNS
to	TO
clear	VB
out	RP
1989	CD
models	NNS
appears	VBZ
to	TO
have	VB
taken	VBN
the	DT
steam	NN
,	,
at	IN
least	JJS
initially	RB
,	,
out	IN
of	IN
1990	CD
model	NN
sales	NNS
,	,
which	WDT
began	VBD
officially	RB
Oct.	NNP
1	CD
.	.

This	DT
appears	VBZ
particularly	RB
true	JJ
at	IN
GM	NNP
,	,
which	WDT
had	VBD
strong	JJ
sales	NNS
in	IN
August	NNP
and	CC
September	NNP
but	CC
saw	VBD
its	PRP$
early	JJ
October	NNP
car	NN
and	CC
truck	NN
results	NNS
fall	VB
26.3	CD
%	NN
from	IN
last	JJ
year	NN
's	POS
unusually	RB
high	JJ
level	NN
.	.

Overall	RB
,	,
sales	NNS
of	IN
all	DT
domestic-made	JJ
vehicles	NNS
fell	VBD
11.9	CD
%	NN
from	IN
a	DT
year	NN
ago	IN
.	.

Without	IN
GM	NNP
,	,
overall	JJ
sales	NNS
for	IN
the	DT
other	JJ
U.S.	NNP
automakers	NNS
were	VBD
roughly	RB
flat	JJ
with	IN
1989	CD
results	NNS
.	.

Some	DT
of	IN
the	DT
U.S.	NNP
auto	NN
makers	NNS
have	VBP
already	RB
adopted	VBN
incentives	NNS
on	IN
many	JJ
1990	CD
models	NNS
,	,
but	CC
they	PRP
may	MD
have	VB
to	TO
broaden	VB
their	PRP$
programs	NNS
to	TO
keep	VB
sales	NNS
up	IN
.	.

``	``
We	PRP
've	VBP
created	VBN
a	DT
condition	NN
where	WRB
,	,
without	IN
incentives	NNS
,	,
it	PRP
's	VBZ
a	DT
tough	JJ
market	NN
,	,
''	''
said	VBD
Tom	NNP
Kelly	NNP
,	,
sales	NNS
manager	NN
for	IN
Bill	NNP
Wink	NNP
Chevrolet	NNP
in	IN
Dearborn	NNP
,	,
Mich	NNP
.	.

Car	NN
sales	NNS
fell	VBD
to	TO
a	DT
seasonally	RB
adjusted	VBN
annual	JJ
selling	VBG
rate	NN
of	IN
5.8	CD
million	CD
vehicles	NNS
,	,
the	DT
lowest	JJS
since	IN
October	NNP
1987	CD
.	.

The	DT
poor	JJ
performance	NN
contrasts	VBZ
with	IN
a	DT
robust	JJ
selling	NN
rate	NN
of	IN
almost	RB
eight	CD
million	CD
last	JJ
month	NN
.	.

Furthermore	RB
,	,
dealers	NNS
contacted	VBD
late	JJ
last	JJ
week	NN
said	VBD
they	PRP
could	MD
n't	RB
see	VB
any	DT
immediate	JJ
impact	NN
on	IN
sales	NNS
of	IN
Friday	NNP
's	POS
steep	JJ
market	NN
decline	NN
.	.

GM	NNP
's	POS
domestic	JJ
car	NN
sales	NNS
dropped	VBD
24.3	CD
%	NN
and	CC
its	PRP$
domestic	JJ
trucks	NNS
were	VBD
down	IN
an	DT
even	RB
steeper	JJR
28.7	CD
%	NN
from	IN
the	DT
same	JJ
period	NN
a	DT
year	NN
ago	IN
.	.

All	DT
of	IN
the	DT
GM	NNP
divisions	NNS
except	IN
Cadillac	NNP
showed	VBD
big	JJ
declines	NNS
.	.

Cadillac	NNP
posted	VBD
a	DT
3.2	CD
%	NN
increase	NN
despite	IN
new	JJ
competition	NN
from	IN
Lexus	NNP
,	,
the	DT
fledging	VBG
luxury-car	NN
division	NN
of	IN
Toyota	NNP
Motor	NNP
Corp	NNP
.	.

Lexus	NNP
sales	NNS
were	VBD
n't	RB
available	JJ
;	:
the	DT
cars	NNS
are	VBP
imported	VBN
and	CC
Toyota	NNP
reports	VBZ
their	PRP$
sales	NNS
only	RB
at	IN
month-end	NN
.	.

The	DT
sales	NNS
drop	VBP
for	IN
the	DT
No.	NN
1	CD
car	NN
maker	NN
may	MD
have	VB
been	VBN
caused	VBN
in	IN
part	NN
by	IN
the	DT
end	NN
in	IN
September	NNP
of	IN
dealer	NN
incentives	NNS
that	IN
GM	NNP
offered	VBD
in	IN
addition	NN
to	TO
consumer	NN
rebates	NNS
and	CC
low-interest	JJ
financing	NN
,	,
a	DT
company	NN
spokesman	NN
said	VBD
.	.

Last	JJ
year	NN
,	,
GM	NNP
had	VBD
a	DT
different	JJ
program	NN
in	IN
place	NN
that	WDT
continued	VBD
rewarding	JJ
dealers	NNS
until	IN
all	PDT
the	DT
1989	CD
models	NNS
had	VBD
been	VBN
sold	VBN
.	.

Aside	RB
from	IN
GM	NNP
,	,
other	JJ
car	NN
makers	NNS
posted	VBD
generally	RB
mixed	VBN
results	NNS
.	.

Ford	NNP
Motor	NNP
Co.	NNP
had	VBD
a	DT
1.8	CD
%	NN
drop	NN
in	IN
domestic	JJ
car	NN
sales	NNS
but	CC
a	DT
2.4	CD
%	NN
increase	NN
in	IN
domestic	JJ
truck	NN
sales	NNS
.	.

Chrysler	NNP
Corp.	NNP
had	VBD
a	DT
7.5	CD
%	NN
drop	NN
in	IN
car	NN
sales	NNS
,	,
echoing	VBG
its	PRP$
generally	RB
slow	JJ
performance	NN
all	DT
year	NN
.	.

However	RB
,	,
sales	NNS
of	IN
trucks	NNS
,	,
including	VBG
the	DT
company	NN
's	POS
popular	JJ
minivans	NNS
,	,
rose	VBD
4.3	CD
%	NN
.	.

Honda	NNP
Motor	NNP
Co.	NNP
's	POS
sales	NNS
of	IN
domestically	RB
built	VBN
vehicles	NNS
plunged	VBD
21.7	CD
%	NN
from	IN
a	DT
year	NN
earlier	RBR
.	.

Honda	NNP
's	POS
plant	NN
in	IN
Marysville	NNP
,	,
Ohio	NNP
,	,
was	VBD
gearing	VBG
up	RP
to	TO
build	VB
1990	CD
model	NN
Accords	NNPS
,	,
a	DT
Honda	NNP
spokesman	NN
said	VBD
.	.

``	``
We	PRP
're	VBP
really	RB
confident	JJ
everything	NN
will	MD
bounce	VB
back	RB
to	TO
normal	JJ
,	,
''	''
he	PRP
added	VBD
.	.

Separately	RB
,	,
Chrysler	NNP
said	VBD
firm	JJ
prices	NNS
on	IN
its	PRP$
1990-model	JJ
domestic	JJ
cars	NNS
and	CC
minivans	NNS
will	MD
rise	VB
an	DT
average	NN
of	IN
5	CD
%	NN
over	IN
comparably	RB
equipped	VBN
1989	CD
models	NNS
.	.

Firm	JJ
prices	NNS
were	VBD
generally	RB
in	IN
line	NN
with	IN
the	DT
tentative	JJ
prices	NNS
announced	VBD
earlier	RBR
this	DT
fall	NN
.	.

At	IN
that	DT
time	NN
,	,
Chrysler	NNP
said	VBD
base	NN
prices	NNS
,	,
which	WDT
are	VBP
n't	RB
adjusted	VBN
for	IN
equipment	NN
changes	NNS
,	,
would	MD
rise	VB
between	IN
4	CD
%	NN
and	CC
9	CD
%	NN
on	IN
most	JJS
vehicle	NN
.	.

a	SYM
-	:
Totals	NNS
include	VBP
only	JJ
vehicle	NN
sales	NNS
reported	VBN
in	IN
period	NN
.	.

c	SYM
-	:
Domestic	JJ
car	NN

d	SYM
-	:
Percentage	NN
change	NN
is	VBZ
greater	JJR
than	IN
999	CD
%	NN
.	.

x	SYM
-	:
There	EX
were	VBD
8	CD
selling	VBG
days	NNS
in	IN
the	DT
most	RBS
recent	JJ
period	NN
and	CC
8	CD
a	DT
year	NN
earlier	RBR
.	.

Percentage	NN
differences	NNS
based	VBN
on	IN
daily	JJ
sales	NNS
rate	NN
rather	RB
than	IN
sales	NNS
volume	NN
.	.

Antonio	NNP
L.	NNP
Savoca	NNP
,	,
66	CD
years	NNS
old	JJ
,	,
was	VBD
named	VBN
president	NN
and	CC
chief	NN
executive	JJ
officer	NN
of	IN
the	DT
Atlantic	NNP
Research	NNP
Corp.	NNP
subsidiary	NN
.	.

Mr.	NNP
Savoca	NNP
had	VBD
been	VBN
a	DT
consultant	NN
to	TO
the	DT
subsidiary	NN
's	POS
rocket-propulsion	NN
operations	NNS
.	.

Mr.	NNP
Savoca	NNP
succeeds	VBZ
William	NNP
H.	NNP
Borten	NNP
,	,
who	WP
resigned	VBD
to	TO
pursue	VB
personal	JJ
interests	NNS
.	.

Sequa	NNP
makes	VBZ
and	CC
repairs	VBZ
jet	NN
engines	NNS
.	.

It	PRP
also	RB
has	VBZ
interests	NNS
in	IN
military	JJ
electronics	NNS
and	CC
electro-optics	NNS
,	,
marine	JJ
transportation	NN
and	CC
machinery	NN
used	VBN
to	TO
make	VB
food	NN
and	CC
beverage	NN
cans	NNS
.	.

It	PRP
was	VBD
n't	RB
so	RB
long	JJ
ago	IN
that	IN
a	DT
radio	NN
network	NN
funded	VBN
by	IN
the	DT
U.S.	NNP
Congress	NNP
--	:
and	CC
originally	RB
by	IN
the	DT
Central	NNP
Intelligence	NNP
Agency	NNP
--	:
was	VBD
accused	VBN
by	IN
officials	NNS
here	RB
of	IN
employing	VBG
propagandists	NNS
,	,
imperialists	NNS
and	CC
spies	NNS
.	.

Now	RB
,	,
the	DT
network	NN
has	VBZ
opened	VBN
a	DT
news	NN
bureau	NN
in	IN
the	DT
Hungarian	JJ
capital	NN
.	.

Employees	NNS
held	VBD
an	DT
open	JJ
house	NN
to	TO
celebrate	VB
and	CC
even	RB
hung	VBD
out	RP
a	DT
sign	NN
:	:
``	``
Szabad	NNP
Europa	NNP
Radio	NNP
''	''
--	:
Radio	NNP
Free	NNP
Europe	NNP
.	.

``	``
I	PRP
think	VBP
this	DT
is	VBZ
a	DT
victory	NN
for	IN
the	DT
radio	NN
,	,
''	''
says	VBZ
Barnabas	NNP
de	NNP
Bueky	NNP
,	,
a	DT
55-year-old	JJ
former	JJ
Hungarian	JJ
refugee	NN
who	WP
works	VBZ
in	IN
the	DT
Munich	NNP
,	,
West	NNP
Germany	NNP
,	,
headquarters	NN
as	IN
deputy	JJ
director	NN
of	IN
the	DT
Hungarian	JJ
service	NN
.	.

In	IN
fact	NN
,	,
the	DT
network	NN
hopes	VBZ
to	TO
set	VB
up	RP
offices	NNS
in	IN
Warsaw	NNP
and	CC
anywhere	RB
else	RB
in	IN
the	DT
East	NNP
Bloc	NNP
that	WDT
will	MD
have	VB
it	PRP
.	.

But	CC
the	DT
rapid	JJ
changes	NNS
brought	VBD
on	RP
by	IN
glasnost	NN
and	CC
open	JJ
borders	NNS
are	VBP
altering	VBG
the	DT
network	NN
's	POS
life	NN
in	IN
more	JJR
ways	NNS
than	IN
one	CD
.	.

In	IN
fact	NN
,	,
Radio	NNP
Free	NNP
Europe	NNP
is	VBZ
in	IN
danger	NN
of	IN
suffering	VBG
from	IN
its	PRP$
success	NN
.	.

While	IN
the	DT
network	NN
currently	RB
can	MD
operate	VB
freely	RB
in	IN
Budapest	NNP
,	,
so	RB
can	MD
others	NNS
.	.

In	IN
addition	NN
,	,
competition	NN
for	IN
listeners	NNS
is	VBZ
getting	VBG
tougher	JJR
in	IN
many	JJ
ways	NNS
than	IN
when	WRB
broadcasting	NN
here	RB
was	VBD
strictly	RB
controlled	VBN
.	.

Instead	RB
of	IN
being	VBG
denounced	VBN
as	IN
an	DT
evil	JJ
agent	NN
of	IN
imperialism	NN
,	,
Radio	NNP
Free	NNP
Europe	NNP
is	VBZ
more	RBR
likely	JJ
to	TO
draw	VB
the	DT
criticism	NN
that	IN
its	PRP$
programs	NNS
are	VBP
too	RB
tame	JJ
,	,
even	RB
boring	JJ
.	.

``	``
They	PRP
have	VBP
a	DT
lot	NN
to	TO
do	VB
these	DT
days	NNS
to	TO
compete	VB
with	IN
Hungarian	JJ
radio	NN
,	,
''	''
says	VBZ
Andrew	NNP
Deak	NNP
,	,
a	DT
computer-science	NN
student	NN
at	IN
the	DT
Technical	NNP
University	NNP
in	IN
Budapest	NNP
.	.

``	``
The	DT
Hungarian	NNP
{	(
radio	NN
}	)
reporters	NNS
seem	VBP
better	RB
informed	VBN
and	CC
more	RBR
critical	JJ
about	IN
about	IN
what	WP
's	VBZ
going	VBG
on	RP
here	RB
.	.
''	''

Indeed	RB
,	,
Hungary	NNP
is	VBZ
in	IN
the	DT
midst	NN
of	IN
a	DT
media	NNS
explosion	NN
.	.

Boys	NNS
on	IN
busy	JJ
street	NN
corners	NNS
peddle	VBP
newspapers	NNS
of	IN
every	DT
political	JJ
stripe	NN
.	.

Newsstands	NNS
are	VBP
packed	VBN
with	IN
a	DT
colorful	JJ
array	NN
of	IN
magazines	NNS
.	.

Radio	NN
and	CC
television	NN
are	VBP
getting	VBG
livelier	JJR
and	CC
bolder	JJR
.	.

The	DT
British	NNP
Broadcasting	NNP
Corp.	NNP
and	CC
the	DT
U.S.	NNP
State	NNP
Department	NNP
's	POS
Voice	NNP
of	IN
America	NNP
broadcast	NN
over	IN
Hungarian	JJ
airwaves	NNS
,	,
though	IN
only	RB
a	DT
few	JJ
hours	NNS
a	DT
day	NN
each	DT
in	IN
Hungarian	NNP
.	.

Australian	JJ
press	NN
magnate	NN
Rupert	NNP
Murdoch	NNP
has	VBZ
bought	VBN
50	CD
%	NN
stakes	NNS
in	IN
two	CD
popular	JJ
and	CC
gossipy	JJ
Hungarian	JJ
newspapers	NNS
,	,
while	IN
Britain	NNP
's	POS
Robert	NNP
Maxwell	NNP
has	VBZ
let	VBN
it	PRP
be	VB
known	VBN
here	RB
that	IN
he	PRP
is	VBZ
thinking	VBG
about	IN
similar	JJ
moves	NNS
.	.

But	CC
Radio	NNP
Free	NNP
Europe	NNP
does	VBZ
n't	RB
plan	VB
to	TO
fade	VB
away	RB
.	.

With	IN
its	PRP$
mission	NN
for	IN
free	JJ
speech	NN
and	CC
the	DT
capitalist	NN
way	NN
,	,
the	DT
network	NN
's	POS
staff	NN
says	VBZ
it	PRP
still	RB
has	VBZ
plenty	RB
to	TO
do	VB
--	:
in	IN
Hungary	NNP
and	CC
in	IN
the	DT
``	``
Great	NNP
Eastern	NNP
Beyond	NNP
.	.
''	''

Radio	NNP
Free	NNP
Europe	NNP
and	CC
its	PRP$
sister	NN
station	NN
for	IN
the	DT
Soviet	NNP
Union	NNP
,	,
Radio	NNP
Liberty	NNP
,	,
say	VBP
they	PRP
wo	MD
n't	RB
cut	VB
back	RP
their	PRP$
more	RBR
than	IN
19	CD
hours	NNS
of	IN
daily	JJ
broadcasts	NNS
.	.

They	PRP
are	VBP
still	RB
an	DT
important	JJ
source	NN
of	IN
news	NN
for	IN
60	CD
million	CD
listeners	NNS
in	IN
23	CD
exotic	JJ
tongues	NNS
:	:
from	IN
Bulgarian	NNP
and	CC
Belorussian	NNP
to	TO
Kazakh	NNP
and	CC
Kirghiz	NNP
.	.

The	DT
establishment	NN
of	IN
its	PRP$
first	JJ
bureau	NN
in	IN
Warsaw	NNP
Pact	NNP
territory	NN
shows	VBZ
the	DT
depth	NN
of	IN
some	DT
of	IN
the	DT
changes	NNS
in	IN
Eastern	NNP
Europe	NNP
.	.

Months	NNS
before	IN
the	DT
decision	NN
by	IN
the	DT
Hungarian	NNP
Communist	NNP
Party	NNP
to	TO
rename	VB
itself	PRP
Socialist	JJ
and	CC
try	VB
to	TO
look	VB
more	RBR
appealing	JJ
to	TO
voters	NNS
,	,
the	DT
country	NN
's	POS
rulers	NNS
were	VBD
trying	VBG
to	TO
look	VB
more	RBR
hospitable	JJ
.	.

It	PRP
proved	VBD
a	DT
perfect	JJ
time	NN
for	IN
Radio	NNP
Free	NNP
Europe	NNP
to	TO
ask	VB
for	IN
permission	NN
to	TO
set	VB
up	RP
office	NN
.	.

Not	RB
only	RB
did	VBD
the	DT
Hungarian	NNP
Ministry	NNP
of	IN
Foreign	NNP
Affairs	NNPS
approve	VB
Radio	NNP
Free	NNP
Europe	NNP
's	POS
new	JJ
location	NN
,	,
but	CC
the	DT
Ministry	NNP
of	IN
Telecommunications	NNPS
did	VBD
something	NN
even	RB
more	RBR
amazing	JJ
:	:
``	``
They	PRP
found	VBD
us	PRP
four	CD
phone	NN
lines	NNS
in	IN
central	JJ
Budapest	NNP
,	,
''	''
says	VBZ
Geza	NNP
Szocs	NNP
,	,
a	DT
Radio	NNP
Free	NNP
Europe	NNP
correspondent	NN
who	WP
helped	VBD
organize	VB
the	DT
Budapest	NNP
location	NN
.	.

``	``
That	DT
is	VBZ
a	DT
miracle	NN
.	.
''	''

It	PRP
's	VBZ
a	DT
far	JJ
cry	NN
from	IN
the	DT
previous	JJ
treatment	NN
of	IN
the	DT
network	NN
,	,
which	WDT
had	VBD
to	TO
overcome	VB
jamming	NN
of	IN
its	PRP$
frequencies	NNS
and	CC
intimidation	NN
of	IN
local	JJ
correspondents	NNS
(	(
who	WP
filed	VBD
reports	NNS
to	TO
the	DT
network	NN
by	IN
phone	NN
,	,
secret	JJ
messengers	NNS
or	CC
letters	NNS
)	)
.	.

In	IN
fact	NN
,	,
some	DT
of	IN
the	DT
network	NN
's	POS
Hungarian	JJ
listeners	NNS
say	VBP
they	PRP
owe	VBP
Radio	NNP
Free	NNP
Europe	NNP
loyalty	NN
because	IN
it	PRP
was	VBD
responsible	JJ
in	IN
many	JJ
ways	NNS
for	IN
keeping	VBG
hope	NN
alive	JJ
through	IN
what	WP
one	CD
writer	NN
here	RB
calls	VBZ
the	DT
``	``
Dark	NNP
Ages	NNPS
of	IN
the	DT
20th	JJ
Century	NN
.	.
''	''

``	``
During	IN
the	DT
past	JJ
four	CD
years	NNS
,	,
many	JJ
of	IN
us	PRP
have	VBP
sat	VBN
up	IN
until	IN
late	JJ
at	IN
night	NN
listening	VBG
to	TO
our	PRP$
radios	NNS
,	,
''	''
says	VBZ
the	DT
writer	NN
.	.

``	``
There	EX
were	VBD
some	DT
very	RB
brave	JJ
broadcasts	NNS
.	.
''	''

The	DT
listeners	NNS
,	,
too	RB
,	,
had	VBD
to	TO
be	VB
brave	JJ
.	.

Through	IN
much	JJ
of	IN
the	DT
post-World	NNP
War	NNP
II	NNP
period	NN
,	,
listening	VBG
to	TO
Western	JJ
broadcasts	NNS
was	VBD
a	DT
crime	NN
in	IN
Hungary	NNP
.	.

``	``
When	WRB
we	PRP
listen	VBP
to	TO
the	DT
Europe	NNP
station	NN
,	,
my	PRP$
mother	NN
still	RB
gets	VBZ
nervous	JJ
,	,
''	''
says	VBZ
a	DT
Budapest	NNP
translator	NN
.	.

``	``
She	PRP
wants	VBZ
to	TO
turn	VB
down	RP
the	DT
volume	NN
and	CC
close	VB
the	DT
curtains	NNS
.	.
''	''

Now	RB
,	,
the	DT
toughest	JJS
competition	NN
for	IN
Radio	NNP
Free	NNP
Europe	NNP
comes	VBZ
during	IN
the	DT
late-night	JJ
slot	NN
.	.

Hungarian	JJ
radio	NN
often	RB
saves	VBZ
its	PRP$
most	RBS
politically	RB
outspoken	JJ
broadcasts	NNS
for	IN
around	IN
midnight	NN
.	.

Television	NN
,	,
which	WDT
most	JJS
of	IN
the	DT
time	NN
is	VBZ
considered	VBN
rather	RB
tame	JJ
,	,
has	VBZ
entered	VBN
the	DT
running	VBG
with	IN
a	DT
new	JJ
program	NN
,	,
``	``
The	NNP
End	NNP
of	IN
the	DT
Day	NNP
,	,
''	''
which	WDT
comes	VBZ
on	RP
after	IN
11	CD
p.m	RB
.	.

It	PRP
is	VBZ
a	DT
talk	NN
show	NN
with	IN
opposition	NN
leaders	NNS
and	CC
political	JJ
experts	NNS
who	WP
discuss	VBP
Hungary	NNP
's	POS
domestic	JJ
problems	NNS
as	RB
well	RB
as	IN
foreign	JJ
affairs	NNS
.	.

Those	DT
who	WP
want	VBP
to	TO
hear	VB
even	RB
more	RBR
radical	JJ
views	NNS
have	VBP
to	TO
get	VB
up	RB
at	IN
five	CD
on	IN
Sunday	NNP
morning	NN
for	IN
``	``
Sunday	NNP
Journal	NNP
,	,
''	''
on	IN
Hungarian	NNP
Radio	NNP
.	.

The	DT
competitive	JJ
spirit	NN
is	VBZ
clearly	RB
influencing	VBG
Radio	NNP
Free	NNP
Europe	NNP
,	,
which	WDT
is	VBZ
trying	VBG
to	TO
beef	VB
up	RP
programs	NNS
.	.

The	DT
Budapest	NNP
office	NN
plans	VBZ
to	TO
hire	VB
free-lance	JJ
reporters	NNS
to	TO
cover	VB
the	DT
latest	JJS
happenings	NNS
in	IN
Hungarian	JJ
country	NN
towns	NNS
from	IN
Nagykanizsa	NNP
in	IN
the	DT
west	NN
to	TO
Nyiregyhaza	NNP
in	IN
the	DT
east	JJ
.	.

The	DT
Hungarian	JJ
service	NN
has	VBZ
a	DT
daily	JJ
40-minute	JJ
news	NN
show	NN
called	VBN
Newsreel	NNP
,	,
with	IN
international	JJ
and	CC
domestic	JJ
news	NN
,	,
plus	CC
a	DT
daily	JJ
news	NN
review	NN
of	IN
opinions	NNS
from	IN
around	IN
the	DT
world	NN
.	.

There	EX
's	VBZ
also	RB
a	DT
host	NN
of	IN
new	JJ
programs	NNS
,	,
trying	VBG
to	TO
lighten	VB
up	RP
on	IN
the	DT
traditional	JJ
diet	NN
of	IN
politics	NNS
.	.

A	DT
daily	JJ
35-minute	JJ
program	NN
called	VBN
``	``
The	NNP
March	NNP
of	IN
Time	NNP
''	''
tries	VBZ
to	TO
find	VB
interesting	JJ
tidbits	NNS
of	IN
lighthearted	JJ
news	NN
and	CC
gossip	NN
from	IN
around	IN
the	DT
world	NN
.	.

There	EX
's	VBZ
a	DT
program	NN
for	IN
women	NNS
and	CC
a	DT
science	NN
show	NN
.	.

And	CC
to	TO
attract	VB
younger	JJR
listeners	NNS
,	,
Radio	NNP
Free	NNP
Europe	NNP
intersperses	VBZ
the	DT
latest	JJS
in	IN
Western	JJ
rock	NN
groups	NNS
.	.

The	DT
Pet	NNP
Shop	NNP
Boys	NNPS
are	VBP
big	JJ
this	DT
year	NN
in	IN
Budapest	NNP
.	.

``	``
We	PRP
are	VBP
starving	VBG
for	IN
all	PDT
the	DT
news	NN
,	,
''	''
says	VBZ
Mr.	NNP
Deak	NNP
,	,
the	DT
student	NN
.	.

``	``
Every	DT
moment	NN
we	PRP
want	VBP
to	TO
know	VB
everything	NN
about	IN
the	DT
world	NN
.	.

Proposals	NNS
for	IN
government-operated	JJ
``	``
national	JJ
service	NN
,	,
''	''
like	IN
influenza	NN
,	,
flare	VBP
up	RP
from	IN
time	NN
to	TO
time	NN
,	,
depress	VBP
the	DT
resistance	NN
of	IN
the	DT
body	NN
politic	JJ
,	,
run	VBP
their	PRP$
course	NN
,	,
and	CC
seem	VBP
to	TO
disappear	VB
,	,
only	RB
to	TO
mutate	VB
and	CC
afflict	VB
public	JJ
life	NN
anew	RB
.	.

The	DT
disease	NN
metaphor	NN
comes	VBZ
to	TO
mind	NN
,	,
of	IN
course	NN
,	,
not	RB
as	IN
an	DT
aspersion	NN
on	IN
the	DT
advocates	NNS
of	IN
national	JJ
service	NN
.	.

Rather	RB
,	,
it	PRP
is	VBZ
born	VBN
of	IN
frustration	NN
with	IN
having	VBG
to	TO
combat	VB
constantly	RB
changing	VBG
strains	NNS
of	IN
a	DT
statist	JJ
idea	NN
that	IN
one	NN
thought	VBD
had	VBD
been	VBN
eliminated	VBN
in	IN
the	DT
early	JJ
1970s	CD
,	,
along	IN
with	IN
smallpox	NN
.	.

It	PRP
is	VBZ
back	RB
with	IN
us	PRP
again	RB
,	,
in	IN
the	DT
form	NN
of	IN
legislation	NN
to	TO
pay	VB
volunteers	NNS
under	IN
a	DT
``	``
National	NNP
and	CC
Community	NNP
Service	NNP
Act	NNP
,	,
''	''
a	DT
proposal	NN
with	IN
a	DT
serious	JJ
shot	NN
at	IN
congressional	JJ
passage	NN
this	DT
fall	NN
.	.

Why	WRB
does	VBZ
the	DT
national-service	JJ
virus	NN
keep	VB
coming	VBG
back	RB
?	.

Perhaps	RB
it	PRP
is	VBZ
because	RB
utopian	JJ
nostalgia	NN
evokes	VBZ
both	DT
military	JJ
experience	NN
and	CC
the	DT
social	JJ
gospel	NN
.	.

If	IN
only	RB
we	PRP
could	MD
get	VB
America	NNP
's	POS
wastrel	NN
youth	NN
into	IN
at	IN
least	JJS
a	DT
psychic	JJ
uniform	NN
we	PRP
might	MD
be	VB
able	JJ
to	TO
teach	VB
self-discipline	NN
again	RB
and	CC
revive	VB
the	DT
spirit	NN
of	IN
giving	VBG
.	.

A	DT
quarter	NN
of	IN
a	DT
century	NN
ago	IN
national	JJ
service	NN
was	VBD
promoted	VBN
as	IN
a	DT
way	NN
of	IN
curing	VBG
the	DT
manifest	JJ
inequities	NNS
of	IN
the	DT
draft	NN
--	:
by	IN
,	,
of	IN
all	DT
things	NNS
,	,
expanding	VBG
the	DT
draft	NN
.	.

Those	DT
of	IN
us	PRP
who	WP
resisted	VBD
the	DT
idea	NN
then	RB
suspect	VBP
today	NN
that	IN
an	DT
obligation	NN
of	IN
government	NN
service	NN
for	IN
all	DT
young	JJ
people	NNS
is	VBZ
still	RB
the	DT
true	JJ
long-term	JJ
aim	NN
of	IN
many	JJ
national-service	JJ
backers	NNS
,	,
despite	IN
their	PRP$
protests	NNS
that	IN
present	JJ
plans	NNS
contain	VBP
no	DT
coercion	NN
.	.

Choice	NN
of	IN
the	DT
volunteer	NN
military	NN
in	IN
the	DT
1970s	CD
seemed	VBD
to	TO
doom	VB
national	JJ
service	NN
as	RB
much	RB
as	IN
the	DT
draft	NN
.	.

But	CC
the	DT
virus	NN
was	VBD
kept	VBN
alive	JJ
in	IN
sociology	NN
departments	NNS
until	IN
a	DT
couple	NN
of	IN
years	NNS
ago	IN
,	,
when	WRB
it	PRP
again	RB
was	VBD
let	VBN
loose	RB
.	.

This	DT
time	NN
it	PRP
attempted	VBD
to	TO
invade	VB
two	CD
connected	VBN
problems	NNS
,	,
the	DT
rising	VBG
cost	NN
of	IN
higher	JJR
education	NN
and	CC
the	DT
rising	VBG
expense	NN
to	TO
the	DT
federal	JJ
government	NN
of	IN
educational	JJ
grants	NNS
and	CC
loans	NNS
.	.

Why	WRB
not	RB
keep	VB
and	CC
even	RB
expand	VB
the	DT
loans	NNS
and	CC
grants	NNS
,	,
the	DT
advocates	NNS
reasoned	VBD
,	,
but	CC
require	VB
some	DT
form	NN
of	IN
service	NN
from	IN
each	DT
recipient	NN
?	.

Military	JJ
service	NN
,	,
moreover	RB
,	,
could	MD
be	VB
a	DT
national-service	NN
option	NN
.	.

Thus	RB
,	,
undoubtedly	RB
it	PRP
was	VBD
hoped	VBN
that	IN
the	DT
new	JJ
strain	NN
of	IN
national	JJ
service	NN
would	MD
prove	VB
contagious	JJ
,	,
infecting	VBG
patriotic	JJ
conservatives	NNS
,	,
pay-as-you-go	JJ
moderates	NNS
,	,
and	CC
idealistic	JJ
liberals	NNS
.	.

The	DT
Democratic	NNP
Leadership	NNP
Council	NNP
,	,
a	DT
centrist	JJ
group	NN
sponsoring	VBG
the	DT
plan	NN
,	,
surely	RB
thought	VBD
it	PRP
might	MD
help	VB
the	DT
party	NN
to	TO
attract	VB
support	NN
,	,
especially	RB
among	IN
college	NN
students	NNS
and	CC
their	PRP$
parents	NNS
.	.

A	DT
provision	NN
allowing	VBG
grants	NNS
to	TO
be	VB
applied	VBN
to	TO
first-home	JJ
purchases	NNS
was	VBD
added	VBN
to	TO
appeal	VB
to	TO
those	DT
who	WP
had	VBD
had	VBN
enough	RB
of	IN
schooling	NN
.	.

The	DT
DLC	NNP
plan	NN
envisaged	VBN
``	``
volunteers	NNS
''	''
planting	VBG
trees	NNS
,	,
emptying	VBG
bedpans	NNS
,	,
tutoring	VBG
children	NNS
,	,
and	CC
assisting	VBG
librarians	NNS
for	IN
$	$
100	CD
a	DT
week	NN
,	,
tax	NN
free	JJ
,	,
plus	CC
medical	JJ
care	NN
.	.

With	IN
a	DT
tax-free	JJ
$	$
10,000	CD
voucher	NN
payment	NN
at	IN
the	DT
end	NN
of	IN
each	DT
year	NN
,	,
the	DT
volunteers	NNS
would	MD
be	VB
making	VBG
a	DT
wage	NN
comparable	JJ
to	TO
$	$
17,500	CD
a	DT
year	NN
.	.

Mind	VB
you	PRP
,	,
most	JJS
of	IN
``	``
the	DT
volunteers	NNS
''	''
would	MD
be	VB
unskilled	JJ
17	CD
-	:
to	TO
18-year-olds	NNS
,	,
some	DT
not	RB
even	RB
high	JJ
school	NN
graduates	NNS
,	,
and	CC
many	JJ
saving	VBG
money	NN
by	IN
living	VBG
at	IN
home	NN
.	.

They	PRP
would	MD
be	VB
doing	VBG
better	RB
financially	RB
under	IN
national	JJ
service	NN
than	IN
many	JJ
taxpayers	NNS
working	VBG
at	IN
the	DT
same	JJ
kinds	NNS
of	IN
jobs	NNS
and	CC
perhaps	RB
supporting	VBG
families	NNS
.	.

As	IN
it	PRP
happened	VBD
,	,
political	JJ
resistance	NN
developed	VBD
among	IN
educational	JJ
and	CC
minority	NN
interests	NNS
that	WDT
count	VBP
on	IN
the	DT
present	JJ
education	NN
grant	NN
system	NN
,	,
so	IN
the	DT
national-service	NN
devotees	NNS
decided	VBD
to	TO
abandon	VB
the	DT
supposedly	RB
crucial	JJ
principle	NN
of	IN
``	``
give	VB
in	IN
order	NN
to	TO
get	VB
.	.
''	''

Opposition	NN
to	TO
national	JJ
service	NN
from	IN
the	DT
Pentagon	NNP
,	,
which	WDT
wants	VBZ
to	TO
protect	VB
its	PRP$
own	JJ
recruitment	NN
process	NN
,	,
also	RB
led	VBD
to	TO
the	DT
military-service	JJ
option	NN
being	VBG
dropped	VBN
.	.

Clearly	RB
,	,
a	DT
new	JJ
rationale	NN
for	IN
national	JJ
service	NN
had	VBD
to	TO
be	VB
cooked	VBN
up	IN
.	.

What	WP
better	JJR
place	NN
to	TO
turn	VB
than	IN
Sen.	NNP
Edward	NNP
Kennedy	NNP
's	POS
Labor	NNP
Committee	NNP
,	,
that	IN
great	JJ
stove	NN
of	IN
government	NN
expansionism	NN
,	,
where	WRB
many	JJ
a	DT
stagnant	JJ
pot	NN
of	IN
porridge	NN
is	VBZ
kept	VBN
on	IN
the	DT
back	NN
burner	NN
until	IN
it	PRP
can	MD
be	VB
brought	VBN
forward	RB
and	CC
presented	VBD
as	IN
nouvelle	JJ
cuisine	NN
?	.

In	IN
this	DT
case	NN
,	,
the	DT
new	JJ
recipe	NN
for	IN
national	JJ
service	NN
called	VBD
for	IN
throwing	VBG
many	JJ
assorted	JJ
legislative	JJ
leftovers	NNS
into	IN
one	CD
kettle	NN
:	:
a	DT
demonstration	NN
project	NN
for	IN
educational	JJ
aid	NN
(	(
particularly	RB
satisfying	VBG
to	TO
the	DT
DLC	NNP
and	CC
Sen.	NNP
Sam	NNP
Nunn	NNP
)	)
,	,
a	DT
similar	JJ
demonstration	NN
program	NN
for	IN
youth	NN
conservation	NN
(	(
a	FW
la	FW
Sen.	NNP
Chris	NNP
Dodd	NNP
)	)
,	,
a	DT
competitive	JJ
grants	NNS
program	NN
to	TO
states	NNS
to	TO
spark	VB
youth	NN
and	CC
senior	JJ
citizen	NN
volunteer	NN
projects	NNS
(	(
a	DT
Kennedy	NNP
specialty	NN
)	)
,	,
a	DT
community	NN
service	NN
work-study	NN
program	NN
for	IN
students	NNS
(	(
pleasing	JJ
to	TO
the	DT
palate	NN
of	IN
Sen.	NNP
Dale	NNP
Bumpers	NNP
,	,
among	IN
others	NNS
)	)
,	,
plus	CC
engorgement	NN
of	IN
the	DT
VISTA	NNP
volunteer	NN
program	NN
and	CC
the	DT
Retired	NNP
Senior	NNP
Volunteer	NNP
,	,
Foster	NNP
Grandparent	NNP
,	,
and	CC
Senior	NNP
Companion	NNP
programs	NNS
.	.

Before	IN
the	DT
menu	NN
is	VBZ
printed	VBN
,	,
the	DT
House	NN
may	MD
add	VB
more	JJR
ingredients	NNS
,	,
also	RB
changing	VBG
the	DT
initial	JJ
price	NN
,	,
now	RB
posted	VBN
at	IN
some	DT
$	$
330	CD
million	CD
.	.

It	PRP
is	VBZ
widely	RB
known	VBN
that	IN
``	``
too	RB
many	JJ
cooks	NNS
spoil	VBP
the	DT
broth	NN
,	,
''	''
but	CC
that	DT
wisdom	NN
does	VBZ
not	RB
necessarily	RB
reflect	VB
the	DT
view	NN
of	IN
the	DT
cooks	NNS
,	,
especially	RB
if	IN
they	PRP
are	VBP
senators	NNS
.	.

The	DT
``	``
omnibus	JJ
''	''
bill	NN
coming	VBG
out	IN
of	IN
Congress	NNP
may	MD
be	VB
unwholesome	JJ
glop	NN
,	,
but	CC
the	DT
assorted	JJ
chefs	NNS
are	VBP
happy	JJ
and	CC
the	DT
restaurant	NN
is	VBZ
pushing	VBG
the	DT
dish	NN
very	RB
hard	RB
.	.

The	DT
aroma	NN
of	IN
patronage	NN
is	VBZ
in	IN
the	DT
air	NN
.	.

Is	VBZ
the	DT
voluntary	JJ
sector	NN
so	RB
weak	JJ
that	IN
it	PRP
needs	VBZ
such	JJ
unsolicited	JJ
assistance	NN
?	.

On	IN
the	DT
contrary	NN
,	,
it	PRP
is	VBZ
as	RB
robust	JJ
as	IN
ever	RB
.	.

According	VBG
to	TO
the	DT
Gallup	NNP
Poll	NNP
,	,
American	JJ
adults	NNS
contribute	VBP
an	DT
average	NN
of	IN
two	CD
hours	NNS
a	DT
week	NN
of	IN
service	NN
,	,
while	IN
financial	JJ
contributions	NNS
to	TO
charity	NN
in	IN
the	DT
1980s	CD
have	VBP
risen	VBN
30	CD
%	NN
(	(
adjusted	VBN
for	IN
inflation	NN
)	)
.	.

Even	RB
if	IN
government	NN
does	VBZ
see	VB
various	JJ
``	``
unmet	JJ
needs	NNS
,	,
''	''
national	JJ
service	NN
is	VBZ
not	RB
the	DT
way	NN
to	TO
meet	VB
them	PRP
.	.

If	IN
we	PRP
want	VBP
to	TO
support	VB
students	NNS
,	,
we	PRP
might	MD
adopt	VB
the	DT
idea	NN
used	VBN
in	IN
other	JJ
countries	NNS
of	IN
offering	VBG
more	JJR
scholarships	NNS
based	VBN
on	IN
something	NN
called	VBN
``	``
scholarship	NN
,	,
''	''
rather	RB
than	IN
on	IN
the	DT
government	NN
's	POS
idea	NN
of	IN
``	``
service	NN
.	.
''	''

Or	CC
we	PRP
might	MD
provide	VB
a	DT
tax	NN
credit	NN
for	IN
working	VBG
students	NNS
.	.

What	WP
we	PRP
do	VBP
not	RB
need	VB
to	TO
do	VB
is	VBZ
start	VB
a	DT
war	NN
,	,
and	CC
then	RB
try	VB
to	TO
justify	VB
it	PRP
by	IN
creating	VBG
a	DT
GI	NNP
Bill	NNP
.	.

To	TO
the	DT
extent	NN
we	PRP
lack	VBP
manpower	NN
to	TO
staff	VB
menial	JJ
jobs	NNS
in	IN
hospitals	NNS
,	,
for	IN
example	NN
,	,
we	PRP
should	MD
raise	VB
pay	VB
,	,
pursue	VB
labor-saving	JJ
technology	NN
,	,
or	CC
allow	VB
more	RBR
legal	JJ
immigration	NN
,	,
rather	RB
than	IN
overpay	VB
high	JJ
school	NN
graduates	NNS
as	IN
short-term	JJ
workers	NNS
and	CC
cause	VB
resentment	NN
among	IN
permanent	JJ
workers	NNS
paid	VBD
lesser	JJR
amounts	NNS
to	TO
do	VB
the	DT
same	JJ
jobs	NNS
.	.

Will	MD
national	JJ
service	NN
,	,
in	IN
the	DT
current	NN
highly	RB
politicized	VBN
and	CC
opportunistic	JJ
form	NN
exert	VB
enough	JJ
appeal	NN
to	TO
get	VB
adopted	VBN
?	.

Not	RB
necessarily	RB
.	.

Polls	NNS
show	VBP
wide	JJ
,	,
generalized	JJ
support	NN
for	IN
some	DT
vague	JJ
concept	NN
of	IN
service	NN
,	,
but	CC
the	DT
bill	NN
now	RB
under	IN
discussion	NN
lacks	VBZ
any	DT
passionate	JJ
public	JJ
backing	NN
.	.

Nonetheless	RB
,	,
Senate	NNP
Democrats	NNP
are	VBP
organizing	VBG
a	DT
roll	NN
of	IN
supporting	VBG
``	``
associations	NNS
,	,
''	''
``	``
societies	NNS
''	''
and	CC
``	``
councils	NNS
,	,
''	''
some	DT
of	IN
which	WDT
may	MD
hope	VB
to	TO
receive	VB
the	DT
paid	VBN
``	``
volunteers	NNS
.	.
''	''

So	IN
far	RB
,	,
the	DT
president	NN
seems	VBZ
ill-disposed	JJ
to	TO
substitute	VB
any	DT
of	IN
the	DT
omnibus	NN
for	IN
his	PRP$
own	JJ
free-standing	JJ
proposal	NN
to	TO
endow	VB
a	DT
``	``
Points	NNPS
of	IN
Light	NNP
''	''
foundation	NN
with	IN
$	$
25	CD
million	CD
to	TO
inform	VB
citizens	NNS
of	IN
all	DT
ages	NNS
and	CC
exhort	VB
them	PRP
to	TO
genuine	JJ
volunteerism	NN
.	.

However	RB
,	,
even	RB
this	DT
admirable	JJ
plan	NN
could	MD
become	VB
objectionable	JJ
if	IN
the	DT
White	NNP
House	NNP
gives	VBZ
in	RP
to	TO
congressional	JJ
Democratic	JJ
pressure	NN
to	TO
add	VB
to	TO
the	DT
scope	NN
of	IN
the	DT
president	NN
's	POS
initiative	NN
or	CC
to	TO
involve	VB
the	DT
independent	JJ
foundation	NN
in	IN
``	``
brokering	VBG
''	''
federal	JJ
funds	NNS
for	IN
volunteer	NN
projects	NNS
.	.

There	EX
's	VBZ
no	DT
need	NN
for	IN
such	JJ
concessions	NNS
.	.

The	DT
omnibus	NN
can	MD
be	VB
defeated	VBN
,	,
the	DT
virus	NN
controlled	VBN
,	,
and	CC
real	JJ
service	NN
protected	VBN
.	.

National	JJ
service	NN
,	,
the	DT
utopian	JJ
idea	NN
,	,
still	RB
wo	MD
n't	RB
go	VB
away	RB
then	RB
,	,
of	IN
course	NN
,	,
but	CC
the	DT
millions	NNS
of	IN
knee-socked	JJ
youth	NN
performing	VBG
works	NNS
of	IN
``	``
civic	JJ
content	NN
''	''
will	MD
be	VB
mobilized	VBN
only	RB
in	IN
the	DT
imagination	NN
of	IN
their	PRP$
progenitors	NNS
.	.

Mr.	NNP
Chapman	NNP
is	VBZ
a	DT
fellow	NN
at	IN
the	DT
Indianapolis-based	JJ
Hudson	NNP
Institute	NNP
.	.

This	DT
article	NN
is	VBZ
adapted	VBN
from	IN
remarks	NNS
at	IN
a	DT
Hoover	NNP
Institution	NNP
conference	NN
on	IN
national	JJ
service	NN
,	,
in	IN
which	WDT
Mr.	NNP
Szanton	NNP
also	RB
participated	VBD
.	.

Drug	NNP
Emporium	NNP
Inc.	NNP
said	VBD
Gary	NNP
Wilber	NNP
,	,
39	CD
years	NNS
old	JJ
,	,
who	WP
had	VBD
been	VBN
president	NN
and	CC
chief	NN
operating	VBG
officer	NN
for	IN
the	DT
past	NN
year	NN
,	,
was	VBD
named	VBN
chief	NN
executive	NN
officer	NN
of	IN
this	DT
drugstore	NN
chain	NN
.	.

He	PRP
succeeds	VBZ
his	PRP$
father	NN
,	,
Philip	NNP
T.	NNP
Wilber	NNP
,	,
who	WP
founded	VBD
the	DT
company	NN
and	CC
remains	VBZ
chairman	NN
.	.

Robert	NNP
E.	NNP
Lyons	NNP
III	NNP
,	,
39	CD
,	,
who	WP
headed	VBD
the	DT
company	NN
's	POS
Philadelphia	NNP
region	NN
,	,
was	VBD
appointed	VBN
president	NN
and	CC
chief	NN
operating	VBG
officer	NN
,	,
succeeding	VBG
Gary	NNP
Wilber	NNP
.	.

American	NNP
Physicians	NNPS
Service	NNP
Group	NNP
Inc.	NNP
said	VBD
it	PRP
purchased	VBD
about	IN
42	CD
%	NN
of	IN
Prime	NNP
Medical	NNP
Services	NNPS
Inc.	NNP
for	IN
about	IN
$	$
5	CD
million	CD
from	IN
Texas	NNP
American	NNP
Energy	NNP
Corp	NNP
.	.

American	NNP
Physicians	NNPS
said	VBD
it	PRP
also	RB
replaced	VBD
four	CD
Texas	NNP
American	NNP
representatives	NNS
on	IN
Prime	NNP
's	POS
five-member	JJ
board	NN
.	.

American	NNP
provides	VBZ
a	DT
variety	NN
of	IN
financial	JJ
services	NNS
to	TO
doctors	NNS
and	CC
hospitals	NNS
.	.

Prime	NNP
,	,
based	VBN
in	IN
Bedminster	NNP
,	,
N.J.	NNP
,	,
provides	VBZ
management	NN
services	NNS
to	TO
cardiac	JJ
rehabilitation	NN
clinics	NNS
and	CC
diagnostic	JJ
imaging	NN
centers	NNS
.	.

For	IN
the	DT
year	NN
ended	VBD
June	NNP
30	CD
,	,
Prime	NNP
had	VBD
a	DT
net	JJ
loss	NN
of	IN
$	$
3	CD
million	CD
on	IN
sales	NNS
of	IN
$	$
13.8	CD
million	CD
.	.

The	DT
inflation-adjusted	JJ
growth	NN
rate	NN
for	IN
France	NNP
's	POS
gross	JJ
domestic	JJ
product	NN
for	IN
the	DT
second	JJ
quarter	NN
was	VBD
revised	VBN
upward	RB
to	TO
0.8	CD
%	NN
from	IN
the	DT
previous	JJ
three	CD
months	NNS
from	IN
the	DT
initial	JJ
estimate	NN
of	IN
0.7	CD
%	NN
,	,
the	DT
National	NNP
Statistics	NNP
Institute	NNP
said	VBD
.	.

The	DT
state	NN
agency	NN
said	VBD
the	DT
latest	JJS
revision	NN
left	VBD
the	DT
growth	NN
rate	NN
for	IN
the	DT
first-quarter	NN
compared	VBN
with	IN
the	DT
previous	JJ
three	CD
months	NNS
unchanged	JJ
at	IN
1.3	CD
%	NN
.	.

If	IN
the	DT
economy	NN
continues	VBZ
to	TO
expand	VB
by	IN
0.8	CD
%	NN
a	DT
quarter	NN
for	IN
the	DT
rest	NN
of	IN
the	DT
year	NN
,	,
it	PRP
would	MD
leave	VB
GDP	NNP
growth	NN
for	IN
all	DT
of	IN
1989	CD
at	IN
3	CD
%	NN
,	,
the	DT
institute	NN
said	VBD
.	.

That	DT
would	MD
be	VB
down	IN
from	IN
the	DT
3.8	CD
%	NN
rise	NN
posted	VBN
in	IN
1988	CD
.	.

The	DT
Canadian	JJ
government	NN
announced	VBD
a	DT
new	JJ
,	,
12-year	JJ
Canada	NNP
Savings	NNP
Bond	NNP
issue	NN
that	WDT
will	MD
yield	VB
investors	NNS
10.5	CD
%	NN
in	IN
the	DT
first	JJ
year	NN
.	.

The	DT
annual	JJ
interest	NN
rate	NN
for	IN
each	DT
of	IN
the	DT
next	JJ
11	CD
years	NNS
will	MD
be	VB
set	VBN
each	DT
fall	NN
,	,
when	WRB
details	NNS
of	IN
a	DT
new	JJ
series	NN
are	VBP
released	VBN
.	.

Canada	NNP
Savings	NNP
Bonds	NNP
are	VBP
major	JJ
government	NN
instruments	NNS
for	IN
meeting	VBG
its	PRP$
financial	JJ
requirements	NNS
.	.

The	DT
government	NN
has	VBZ
about	IN
41.4	CD
billion	CD
Canadian	JJ
dollars	NNS
(	(
US$	$
35.2	CD
billion	CD
)	)
of	IN
such	JJ
bonds	NNS
currently	RB
outstanding	JJ
.	.

Only	RB
Canadian	JJ
residents	NNS
are	VBP
permitted	VBN
to	TO
buy	VB
Canada	NNP
Savings	NNP
Bonds	NNP
,	,
which	WDT
may	MD
be	VB
redeemed	VBN
any	DT
time	NN
at	IN
face	NN
value	NN
.	.

The	DT
bonds	NNS
go	VBP
on	IN
sale	NN
Oct.	NNP
19	CD
.	.

The	DT
debate	NN
over	IN
National	NNP
Service	NNP
has	VBZ
begun	VBN
again	RB
.	.

After	IN
a	DT
decade	NN
in	IN
which	WDT
more	JJR
than	IN
50	CD
localities	NNS
established	VBD
their	PRP$
own	JJ
service	NN
or	CC
conservation	NN
corps	NN
and	CC
dozens	NNS
of	IN
school	NN
systems	NNS
made	VBD
community	NN
service	NN
a	DT
prerequisite	NN
to	TO
high-school	NN
graduation	NN
,	,
the	DT
focus	NN
has	VBZ
shifted	VBN
to	TO
Washington	NNP
.	.

At	IN
least	JJS
10	CD
bills	NNS
proposing	VBG
one	CD
or	CC
another	DT
national	JJ
program	NN
were	VBD
introduced	VBN
in	IN
Congress	NNP
this	DT
spring	NN
.	.

One	CD
,	,
co-sponsored	JJ
by	IN
Sen.	NNP
Sam	NNP
Nunn	NNP
(	(
D.	NNP
,	,
Ga	NNP
.	.
)	)
and	CC
Rep.	NNP
Dave	NNP
McCurdy	NNP
(	(
D.	NNP
,	,
Okla.	NNP
)	)
,	,
would	MD
have	VB
restricted	VBN
federal	JJ
college	NN
subsidies	NNS
to	TO
students	NNS
who	WP
had	VBD
served	VBN
.	.

An	DT
omnibus	NN
bill	NN
assembled	VBN
by	IN
Sen.	NNP
Edward	NNP
Kennedy	NNP
(	(
D.	NNP
,	,
Mass.	NNP
)	)
,	,
and	CC
including	VBG
some	DT
diluted	JJ
Nunn-McCurdy	NNP
provisions	NNS
along	IN
with	IN
proposals	NNS
by	IN
fellow	NN
Democratic	NNP
Sens.	NNP
Claiborne	NNP
Pell	NNP
,	,
Barbara	NNP
Mikulski	NNP
and	CC
Christopher	NNP
Dodd	NNP
,	,
has	VBZ
been	VBN
reported	VBN
out	IN
of	IN
the	DT
Senate	NNP
Labor	NNP
Committee	NNP
.	.

It	PRP
might	MD
well	RB
win	VB
Senate	NNP
passage	NN
.	.

President	NNP
Bush	NNP
has	VBZ
outlined	VBN
his	PRP$
own	JJ
Youth	NNP
Entering	NNP
Service	NNP
(	(
YES	NNP
)	)
plan	NN
,	,
though	IN
its	PRP$
details	NNS
remain	VBP
to	TO
be	VB
specified	VBN
.	.

What	WP
is	VBZ
one	NN
to	TO
think	VB
of	IN
all	PDT
this	DT
?	.

Doctrine	NN
and	CC
special	JJ
interests	NNS
govern	VBP
some	DT
responses	NNS
.	.

People	NNS
eager	JJ
to	TO
have	VB
youth	NN
``	``
pay	VBP
their	PRP$
dues	NNS
to	TO
society	NN
''	''
favor	VBP
service	NN
proposals	NNS
--	:
preferably	RB
mandatory	JJ
ones	NNS
.	.

So	RB
do	VBP
those	DT
who	WP
seek	VBP
a	DT
``	``
re-energized	JJ
concept	NN
of	IN
citizenship	NN
,	,
''	''
a	DT
concept	NN
imposing	VBG
stern	JJ
obligations	NNS
as	RB
well	RB
as	IN
conferring	VBG
rights	NNS
.	.

Then	RB
there	EX
are	VBP
instinctive	JJ
opponents	NNS
.	.

To	TO
libertarians	NNS
,	,
mandatory	JJ
service	NN
is	VBZ
an	DT
abomination	NN
and	CC
voluntary	JJ
systems	NNS
are	VBP
illegitimate	JJ
uses	NNS
of	IN
tax	NN
money	NN
.	.

Devotees	NNS
of	IN
the	DT
market	NN
question	VBP
the	DT
value	NN
of	IN
the	DT
work	NN
national	JJ
service	NN
would	MD
perform	VB
:	:

If	IN
the	DT
market	NN
wo	MD
n't	RB
pay	VB
for	IN
it	PRP
,	,
they	PRP
argue	VBP
,	,
it	PRP
ca	MD
n't	RB
be	VB
worth	JJ
its	PRP$
cost	NN
.	.

Elements	NNS
of	IN
the	DT
left	JJ
are	VBP
also	RB
reflexively	RB
opposed	VBN
;	:
they	PRP
see	VBP
service	NN
as	IN
a	DT
cover	NN
for	IN
the	DT
draft	NN
,	,
or	CC
fear	VBP
the	DT
regimentation	NN
of	IN
youth	NN
,	,
or	CC
want	VB
to	TO
see	VB
rights	NNS
enlarged	VBN
,	,
not	RB
obligations	NNS
.	.

But	CC
what	WP
about	IN
those	DT
of	IN
us	PRP
whose	WP$
views	NNS
are	VBP
not	RB
predetermined	VBN
by	IN
formula	NN
or	CC
ideology	NN
?	.

How	WRB
should	MD
we	PRP
think	VB
about	IN
national	JJ
service	NN
?	.

Let	VB
's	PRP
begin	VB
by	IN
recognizing	VBG
a	DT
main	JJ
source	NN
of	IN
confusion	NN
--	:
``	``
national	JJ
service	NN
''	''
has	VBZ
no	RB
agreed	VBN
meaning	NN
.	.

Would	MD
service	NN
be	VB
voluntary	JJ
or	CC
compulsory	JJ
?	.

Short	JJ
or	CC
long	JJ
?	.

Part-time	JJ
or	CC
full-time	JJ
?	.

Paid	VBN
or	CC
unpaid	JJ
?	.

Would	MD
participants	NNS
live	VB
at	IN
home	NN
and	CC
work	VB
nearby	RB
or	CC
live	VB
in	IN
barracks	NN
and	CC
work	VB
on	IN
public	JJ
lands	NNS
?	.

What	WDT
kinds	NNS
of	IN
work	NN
would	MD
they	PRP
do	VB
?	.

What	WP
does	VBZ
``	``
national	JJ
''	''
mean	VB
?	.

Would	MD
the	DT
program	NN
be	VB
run	VBN
by	IN
the	DT
federal	JJ
government	NN
,	,
by	IN
local	JJ
governments	NNS
,	,
or	CC
by	IN
private	JJ
voluntary	JJ
organizations	NNS
?	.

And	CC
who	WP
would	MD
serve	VB
?	.

Only	JJ
males	NNS
,	,
as	RB
with	IN
the	DT
draft	NN
,	,
or	CC
both	DT
sexes	NNS
?	.

Youth	NN
only	RB
or	CC
all	DT
ages	NNS
?	.

Middle-class	JJ
people	NNS
,	,
or	CC
poor	JJ
people	NNS
,	,
or	CC
a	DT
genuine	JJ
cross-section	NN
?	.

Many	JJ
or	CC
few	JJ
?	.

Those	DT
are	VBP
not	RB
trivial	JJ
questions	NNS
,	,
and	CC
the	DT
label	NN
``	``
national	JJ
service	NN
''	''
answers	VBZ
none	NN
of	IN
them	PRP
.	.

Then	RB
how	WRB
should	MD
we	PRP
think	VB
about	IN
national	JJ
service	NN
?	.

As	IN
a	DT
starting	VBG
point	NN
,	,
here	RB
are	VBP
five	CD
propositions	NNS
:	:
1	LS
.	.
Consider	VB
the	DT
ingredients	NNS
,	,
not	RB
the	DT
name	NN
.	.

Ignore	VB
``	``
national	JJ
service	NN
''	''
in	IN
the	DT
abstract	JJ
;	:
consider	VB
specific	JJ
proposals	NNS
.	.

They	PRP
will	MD
differ	VB
in	IN
crucial	JJ
ways	NNS
.	.

2	LS
.	.
``	``
Service	NN
''	''
should	MD
be	VB
service	NN
.	.

As	IN
commonly	RB
understood	VBN
,	,
service	NN
implies	VBZ
sacrifice	NN
.	.

It	PRP
involves	VBZ
accepting	VBG
risk	NN
,	,
or	CC
giving	VBG
up	RP
income	NN
,	,
or	CC
deferring	VBG
a	DT
career	NN
.	.

It	PRP
follows	VBZ
that	IN
proposals	NNS
like	IN
Nunn-McCurdy	NNP
,	,
whose	WP$
benefits	NNS
to	TO
enrollees	NNS
are	VBP
worth	JJ
some	DT
$	$
17,500	CD
a	DT
year	NN
,	,
do	VBP
not	RB
qualify	VB
.	.

There	EX
is	VBZ
a	DT
rationale	NN
for	IN
such	JJ
bills	NNS
:	:
Federal	NNP
subsidies	NNS
to	TO
college	NN
students	NNS
amount	VBP
to	TO
``	``
a	DT
GI	NNP
Bill	NNP
without	IN
the	DT
GI	NNP
''	''
;	:
arguably	RB
those	DT
benefits	NNS
should	MD
be	VB
earned	VBN
,	,
not	RB
given	VBN
.	.

But	CC
the	DT
earnings	NNS
exceed	VBP
by	IN
20	CD
%	NN
the	DT
average	JJ
income	NN
of	IN
young	JJ
high-school	NN
graduates	NNS
with	IN
full-time	JJ
jobs	NNS
.	.

Why	WRB
call	VB
that	DT
service	NN
?	.

3	LS
.	.
Encouragement	NN
is	VBZ
fine	JJ
;	:
compulsion	NN
is	VBZ
not	RB
.	.

Compelled	VBN
service	NN
is	VBZ
unconstitutional	JJ
.	.

It	PRP
is	VBZ
also	RB
unwise	JJ
and	CC
unenforceable	JJ
.	.

(	(
Who	WP
will	MD
throw	VB
several	JJ
hundred	CD
thousand	CD
refusers	NNS
in	IN
jail	NN
each	DT
year	NN
?	.
)	)

But	CC
through	IN
tax	NN
policy	NN
and	CC
in	IN
other	JJ
ways	NNS
the	DT
federal	JJ
government	NN
encourages	VBZ
many	JJ
kinds	NNS
of	IN
behavior	NN
.	.

It	PRP
should	MD
also	RB
encourage	VB
service	NN
--	:
preferably	RB
by	IN
all	DT
classes	NNS
and	CC
all	DT
ages	NNS
.	.

Its	PRP$
encouragement	NN
should	MD
strengthen	VB
and	CC
not	RB
undercut	VB
the	DT
strong	JJ
tradition	NN
of	IN
volunteering	NN
in	IN
the	DT
U.S.	NNP
,	,
should	MD
build	VB
on	IN
the	DT
service	NN
programs	NNS
already	RB
in	IN
existence	NN
,	,
and	CC
should	MD
honor	VB
local	JJ
convictions	NNS
about	IN
which	WDT
tasks	NNS
most	RBS
need	VBP
doing	VBG
.	.

4	LS
.	.
Good	JJ
programs	NNS
are	VBP
not	RB
cheap	JJ
.	.

Enthusiasts	NNS
assume	VBP
that	IN
national	JJ
service	NN
would	MD
get	VB
important	JJ
work	NN
done	VBN
cheaply	RB
:	:
forest	NN
fires	NNS
fought	VBN
,	,
housing	NN
rehabilitated	VBN
,	,
students	NNS
tutored	VBN
,	,
day-care	NN
centers	NNS
staffed	VBN
.	.

There	EX
is	VBZ
important	JJ
work	NN
to	TO
be	VB
done	VBN
,	,
and	CC
existing	VBG
service	NN
and	CC
conservation	NN
corps	NN
have	VBP
shown	VBN
that	IN
even	JJ
youths	NNS
who	WP
start	VBP
with	IN
few	JJ
skills	NNS
can	MD
do	VB
much	RB
of	IN
it	PRP
well	RB
--	:
but	CC
not	RB
cheaply	RB
.	.

Good	JJ
service	NN
programs	NNS
require	VBP
recruitment	NN
,	,
screening	NN
,	,
training	NN
and	CC
supervision	NN
--	:
all	DT
of	IN
high	JJ
quality	NN
.	.

They	PRP
involve	VBP
stipends	NNS
to	TO
participants	NNS
.	.

Full-time	JJ
residential	JJ
programs	NNS
also	RB
require	VB
housing	NN
and	CC
full-time	JJ
supervision	NN
;	:
they	PRP
are	VBP
particularly	RB
expensive	JJ
--	:
more	JJR
per	IN
participant	NN
than	IN
a	DT
year	NN
at	IN
Stanford	NNP
or	CC
Yale	NNP
.	.

Non-residential	JJ
programs	NNS
are	VBP
cheaper	JJR
,	,
but	CC
good	JJ
ones	NNS
still	RB
come	VB
to	TO
some	DT
$	$
10,000	CD
a	DT
year	NN
.	.

Are	VBP
they	PRP
worth	JJ
that	DT
?	.

Evaluations	NNS
suggest	VBP
that	IN
good	JJ
ones	NNS
are	VBP
--	:
especially	RB
so	IN
if	IN
the	DT
effects	NNS
on	IN
participants	NNS
are	VBP
counted	VBN
.	.

But	CC
the	DT
calculations	NNS
are	VBP
challengeable	JJ
.	.

5	LS
.	.
Underclass	NNS
youth	NN
are	VBP
a	DT
special	JJ
concern	NN
.	.

Are	VBP
such	JJ
expenditures	NNS
worthwhile	JJ
,	,
then	RB
?	.

Yes	UH
,	,
if	IN
targeted	VBN
.	.

People	NNS
of	IN
all	DT
ages	NNS
and	CC
all	DT
classes	NNS
should	MD
be	VB
encouraged	VBN
to	TO
serve	VB
,	,
but	CC
there	EX
are	VBP
many	JJ
ways	NNS
for	IN
middle-class	JJ
kids	NNS
,	,
and	CC
their	PRP$
elders	NNS
,	,
to	TO
serve	VB
at	IN
little	JJ
public	JJ
cost	NN
.	.

They	PRP
can	MD
volunteer	VB
at	IN
any	DT
of	IN
thousands	NNS
of	IN
non-profit	JJ
institutions	NNS
,	,
or	CC
participate	VB
in	IN
service	NN
programs	NNS
required	VBN
by	IN
high	JJ
schools	NNS
or	CC
encouraged	VBN
by	IN
colleges	NNS
or	CC
employers	NNS
.	.

Underclass	JJ
youth	NN
do	VBP
n't	RB
have	VB
those	DT
opportunities	NNS
.	.

They	PRP
are	VBP
not	RB
enrolled	VBN
in	IN
high	JJ
school	NN
or	CC
college	NN
.	.

They	PRP
are	VBP
unlikely	JJ
to	TO
be	VB
employed	VBN
.	.

And	CC
they	PRP
have	VBP
grown	VBN
up	RP
in	IN
unprecedentedly	RB
grim	JJ
circumstances	NNS
,	,
among	IN
family	NN
structures	NNS
breaking	VBG
down	IN
,	,
surrounded	VBN
by	IN
self-destructive	JJ
behaviors	NNS
and	CC
bleak	JJ
prospects	NNS
.	.

But	CC
many	JJ
of	IN
them	PRP
can	MD
be	VB
quite	RB
profoundly	RB
reoriented	VBN
by	IN
productive	JJ
and	CC
disciplined	VBN
service	NN
.	.

Some	DT
wo	MD
n't	RB
accept	VB
the	DT
discipline	NN
;	:
others	NNS
drop	VBP
out	RP
for	IN
other	JJ
reasons	NNS
.	.

But	CC
some	DT
whom	WP
nothing	NN
else	RB
is	VBZ
reaching	VBG
are	VBP
transformed	VBN
.	.

Learning	VBG
skills	NNS
,	,
producing	VBG
something	NN
cooperatively	RB
,	,
feeling	VBG
useful	JJ
,	,
they	PRP
are	VBP
no	RB
longer	RB
dependent	JJ
--	:
others	NNS
now	RB
depend	VBP
on	IN
them	PRP
.	.

Even	RB
if	IN
it	PRP
is	VBZ
cheaper	JJR
to	TO
build	VB
playgrounds	NNS
or	CC
paint	VB
apartments	NNS
or	CC
plant	VB
dune-grass	NN
with	IN
paid	VBN
professionals	NNS
,	,
the	DT
effects	NNS
on	IN
the	DT
young	JJ
people	NNS
providing	VBG
those	DT
services	NNS
alter	VBP
the	DT
calculation	NN
.	.

Strictly	RB
speaking	VBG
,	,
these	DT
youth	NN
are	VBP
not	RB
performing	VBG
service	NN
.	.

They	PRP
are	VBP
giving	VBG
up	RP
no	DT
income	NN
,	,
deferring	VBG
no	DT
careers	NNS
,	,
incurring	VBG
no	DT
risk	NN
.	.

But	CC
they	PRP
believe	VBP
themselves	PRP
to	TO
be	VB
serving	VBG
,	,
and	CC
they	PRP
begin	VBP
to	TO
respect	VB
themselves	PRP
(	(
and	CC
others	NNS
)	)
,	,
to	TO
take	VB
control	NN
of	IN
their	PRP$
lives	NNS
,	,
to	TO
think	VB
of	IN
the	DT
future	NN
.	.

That	DT
is	VBZ
a	DT
service	NN
to	TO
the	DT
nation	NN
.	.

It	PRP
is	VBZ
what	WP
federal	JJ
support	NN
should	MD
try	VB
hardest	RBS
to	TO
achieve	VB
.	.

Mr.	NNP
Szanton	NNP
,	,
a	DT
Carter	NNP
administration	NN
budget	NN
official	NN
,	,
heads	VBZ
his	PRP$
own	JJ
Washington-based	JJ
strategic	JJ
planning	NN
firm	NN
.	.

He	PRP
is	VBZ
a	DT
co-author	NN
of	IN
``	``
National	NNP
Service	NNP
:	:
What	WP
Would	MD
It	PRP
Mean	VB
?	.
''	''

(	(
Lexington	NNP
Books	NNPS
,	,
1986	CD
)	)
.	.

Government	NNP
officials	NNS
here	RB
and	CC
in	IN
other	JJ
countries	NNS
laid	VBD
plans	NNS
through	IN
the	DT
weekend	NN
to	TO
head	VB
off	RP
a	DT
Monday	NNP
market	NN
meltdown	NN
--	:
but	CC
went	VBD
out	IN
of	IN
their	PRP$
way	NN
to	TO
keep	VB
their	PRP$
moves	NNS
quiet	JJ
.	.

Federal	NNP
Reserve	NNP
Chairman	NNP
Alan	NNP
Greenspan	NNP
was	VBD
on	IN
the	DT
telephones	NNS
,	,
making	VBG
it	PRP
clear	JJ
to	TO
officials	NNS
in	IN
the	DT
U.S.	NNP
and	CC
abroad	RB
that	IN
the	DT
Fed	NNP
was	VBD
prepared	VBN
to	TO
inject	VB
massive	JJ
amounts	NNS
of	IN
money	NN
into	IN
the	DT
banking	NN
system	NN
,	,
as	IN
it	PRP
did	VBD
in	IN
October	NNP
1987	CD
,	,
if	IN
the	DT
action	NN
were	VBD
needed	VBN
to	TO
prevent	VB
a	DT
financial	JJ
crisis	NN
.	.

And	CC
at	IN
the	DT
Treasury	NNP
,	,
Secretary	NNP
Nicholas	NNP
Brady	NNP
talked	VBD
with	IN
friends	NNS
and	CC
associates	NNS
on	IN
Wall	NNP
Street	NNP
while	IN
Assistant	NNP
Secretary	NNP
David	NNP
Mullins	NNP
carefully	RB
analyzed	VBD
data	NNS
on	IN
the	DT
Friday	NNP
market	NN
plunge	NN
.	.

But	CC
the	DT
officials	NNS
feared	VBD
that	IN
any	DT
public	JJ
announcements	NNS
would	MD
only	RB
increase	VB
market	NN
jitters	NNS
.	.

In	IN
addition	NN
,	,
officials	NNS
at	IN
the	DT
Fed	NNP
and	CC
in	IN
the	DT
Bush	NNP
administration	NN
decided	VBD
that	IN
avoiding	VBG
overt	JJ
actions	NNS
and	CC
statements	NNS
over	IN
the	DT
weekend	NN
would	MD
give	VB
them	PRP
more	JJR
strength	NN
and	CC
flexibility	NN
should	MD
Friday	NNP
's	POS
market	NN
drop	NN
turn	VB
into	IN
this	DT
morning	NN
's	POS
rout	NN
.	.

``	``
The	DT
disadvantage	NN
at	IN
this	DT
point	NN
is	VBZ
that	DT
anything	NN
you	PRP
do	VBP
that	DT
looks	VBZ
like	IN
you	PRP
are	VBP
doing	VBG
too	RB
much	RB
tends	VBZ
to	TO
reinforce	VB
a	DT
sense	NN
of	IN
crisis	NN
,	,
''	''
said	VBD
one	CD
government	NN
official	NN
,	,
insisting	VBG
on	IN
anonymity	NN
.	.

The	DT
Fed	NNP
's	POS
efforts	NNS
at	IN
secrecy	NN
were	VBD
partly	RB
foiled	VBN
Sunday	NNP
morning	NN
,	,
when	WRB
both	PDT
the	DT
New	NNP
York	NNP
Times	NNP
and	CC
the	DT
Washington	NNP
Post	NNP
carried	VBD
stories	NNS
quoting	VBG
a	DT
senior	JJ
Fed	NNP
official	NN
saying	VBG
the	DT
central	JJ
bank	NN
was	VBD
prepared	VBN
to	TO
pour	VB
cash	NN
into	IN
the	DT
banking	NN
system	NN
Monday	NNP
morning	NN
.	.

Fed	NNP
Chairman	NNP
Greenspan	NNP
was	VBD
surprised	VBN
by	IN
both	DT
stories	NNS
,	,
according	VBG
to	TO
knowledgeable	JJ
sources	NNS
,	,
and	CC
insisted	VBD
he	PRP
had	VBD
n't	RB
authorized	VBN
any	DT
public	JJ
comment	NN
.	.

Nevertheless	RB
,	,
Fed	NNP
officials	NNS
acknowledged	VBD
the	DT
stories	NNS
were	VBD
reasonably	RB
accurate	JJ
portrayals	NNS
of	IN
the	DT
central	JJ
bank	NN
's	POS
game	NN
plan	NN
.	.

It	PRP
is	VBZ
prepared	VBN
to	TO
assume	VB
the	DT
same	JJ
role	NN
it	PRP
played	VBD
in	IN
October	NNP
1987	CD
,	,
providing	VBG
money	NN
to	TO
the	DT
markets	NNS
if	IN
necessary	JJ
to	TO
keep	VB
the	DT
financial	JJ
system	NN
afloat	RB
.	.

The	DT
Fed	NNP
provides	VBZ
money	NN
to	TO
the	DT
banking	NN
system	NN
by	IN
buying	VBG
government	NN
securities	NNS
from	IN
financial	JJ
institutions	NNS
.	.

The	DT
reticence	NN
of	IN
federal	JJ
officials	NNS
was	VBD
evident	JJ
in	IN
the	DT
appearance	NN
Sunday	NNP
of	IN
Budget	NNP
Director	NNP
Richard	NNP
Darman	NNP
on	IN
ABC	NNP
's	POS
``	``
This	DT
Week	NNP
.	.
''	''

``	``
Secretary	NNP
of	IN
the	DT
Treasury	NNP
Brady	NNP
and	CC
Chairman	NNP
Greenspan	NNP
and	CC
the	DT
chairman	NN
of	IN
the	DT
SEC	NNP
and	CC
others	NNS
have	VBP
been	VBN
in	IN
close	JJ
contact	NN
.	.

I	PRP
'm	VBP
sure	JJ
they	PRP
'll	MD
do	VB
what	WP
's	VBZ
right	JJ
,	,
what	WP
's	VBZ
prudent	JJ
,	,
what	WP
's	VBZ
sensible	JJ
,	,
''	''
he	PRP
said	VBD
.	.

When	WRB
it	PRP
was	VBD
suggested	VBN
his	PRP$
comment	NN
was	VBD
a	DT
``	``
non-answer	JJ
,	,
''	''
Mr.	NNP
Darman	NNP
replied	VBD
:	:
``	``
It	PRP
is	VBZ
a	DT
non-answer	NN
.	.

But	CC
,	,
in	IN
this	DT
context	NN
,	,
that	DT
's	VBZ
the	DT
smart	JJ
thing	NN
to	TO
do	VB
.	.
''	''

At	IN
the	DT
Treasury	NNP
,	,
Secretary	NNP
Brady	NNP
issued	VBD
a	DT
statement	NN
minimizing	VBG
the	DT
stock	NN
market	NN
's	POS
drop	NN
.	.

``	``
Today	NN
's	POS
stock	NN
market	NN
decline	NN
does	VBZ
n't	RB
signal	VB
any	DT
fundamental	JJ
change	NN
in	IN
the	DT
condition	NN
of	IN
the	DT
economy	NN
,	,
''	''
he	PRP
said	VBD
.	.

``	``
The	DT
economy	NN
remains	VBZ
well-balanced	JJ
,	,
and	CC
the	DT
outlook	NN
is	VBZ
for	IN
continued	VBN
moderate	JJ
growth	NN
.	.
''	''

But	CC
administration	NN
officials	NNS
conceded	VBD
that	IN
Friday	NNP
's	POS
drop	NN
carried	VBD
the	DT
chance	NN
of	IN
further	JJ
declines	NNS
this	DT
week	NN
.	.

``	``
One	CD
possibility	NN
is	VBZ
that	IN
this	DT
is	VBZ
a	DT
surgical	JJ
setback	NN
,	,
reasonably	RB
limited	VBN
in	IN
its	PRP$
breadth	NN
,	,
and	CC
not	RB
a	DT
major	JJ
problem	NN
,	,
''	''
said	VBD
one	CD
senior	JJ
administration	NN
official	NN
,	,
who	WP
also	RB
asked	VBD
that	IN
he	PRP
not	RB
be	VB
named	VBN
.	.

``	``
The	DT
other	JJ
is	VBZ
that	IN
we	PRP
see	VBP
another	DT
major	JJ
disaster	NN
,	,
like	IN
two	CD
years	NNS
ago	IN
.	.

I	PRP
think	VBP
that	DT
's	VBZ
less	RBR
likely	JJ
.	.
''	''

Nevertheless	RB
,	,
Fed	NNP
Chairman	NNP
Greenspan	NNP
and	CC
Vice	NNP
Chairman	NNP
Manuel	NNP
Johnson	NNP
were	VBD
in	IN
their	PRP$
offices	NNS
Sunday	NNP
evening	NN
,	,
monitoring	VBG
events	NNS
as	IN
they	PRP
unfolded	VBD
in	IN
markets	NNS
around	IN
the	DT
world	NN
.	.

The	DT
action	NN
was	VBD
expected	VBN
to	TO
begin	VB
with	IN
the	DT
opening	NN
of	IN
the	DT
New	NNP
Zealand	NNP
foreign	JJ
exchange	NN
markets	NNS
at	IN
5	CD
p.m.	NN
EST	NNP
--	:
when	WRB
stocks	NNS
there	RB
plunged	VBD
--	:
and	CC
to	TO
continue	VB
as	IN
the	DT
trading	NN
day	NN
began	VBD
later	RB
in	IN
the	DT
evening	NN
in	IN
Tokyo	NNP
and	CC
through	IN
early	RB
this	DT
morning	NN
in	IN
Europe	NNP
.	.

Both	PDT
the	DT
Treasury	NNP
and	CC
the	DT
Fed	NNP
planned	VBD
to	TO
keep	VB
market	NN
rooms	NNS
operating	VBG
throughout	IN
the	DT
night	NN
to	TO
monitor	VB
the	DT
developments	NNS
.	.

In	IN
Tokyo	NNP
,	,
share	NN
prices	NNS
dropped	VBD
sharply	RB
by	IN
1.7	CD
%	NN
in	IN
early	JJ
Monday	NNP
morning	NN
trading	NN
.	.

After	IN
the	DT
initial	JJ
slide	NN
,	,
the	DT
market	NN
appeared	VBD
to	TO
be	VB
turning	VBG
around	IN
but	CC
by	IN
early	JJ
afternoon	NN
was	VBD
headed	VBN
lower	JJR
.	.

In	IN
the	DT
Bush	NNP
administration	NN
,	,
the	DT
lead	NN
is	VBZ
being	VBG
taken	VBN
by	IN
Treasury	NNP
Secretary	NNP
Brady	NNP
,	,
Undersecretary	NNP
Robert	NNP
Glauber	NNP
and	CC
Assistant	NNP
Secretary	NNP
Mullins	NNP
.	.

The	DT
three	CD
men	NNS
worked	VBD
together	RB
on	IN
the	DT
so-called	JJ
Brady	NNP
Commission	NNP
,	,
headed	VBN
by	IN
Mr.	NNP
Brady	NNP
,	,
which	WDT
was	VBD
established	VBN
after	IN
the	DT
1987	CD
crash	NN
to	TO
examine	VB
the	DT
market	NN
's	POS
collapse	NN
.	.

As	IN
a	DT
result	NN
they	PRP
have	VBP
extensive	JJ
knowledge	NN
in	IN
financial	JJ
markets	NNS
,	,
and	CC
financial	JJ
market	NN
crises	NNS
.	.

Mr.	NNP
Brady	NNP
was	VBD
at	IN
the	DT
White	NNP
House	NNP
Friday	NNP
afternoon	NN
when	WRB
the	DT
stock	NN
market	NN
's	POS
decline	NN
began	VBD
.	.

He	PRP
was	VBD
quickly	RB
on	IN
the	DT
phone	NN
with	IN
Mr.	NNP
Mullins	NNP
,	,
who	WP
in	IN
turn	NN
was	VBD
talking	VBG
with	IN
the	DT
chairmen	NNS
of	IN
the	DT
New	NNP
York	NNP
and	CC
Chicago	NNP
exchanges	NNS
.	.

Later	RB
,	,
Mr.	NNP
Brady	NNP
phoned	VBD
Mr.	NNP
Greenspan	NNP
,	,
SEC	NNP
Chairman	NNP
Richard	NNP
Breeden	NNP
and	CC
numerous	JJ
contacts	NNS
in	IN
New	NNP
York	NNP
and	CC
overseas	RB
.	.

Aides	NNS
say	VBP
he	PRP
continued	VBD
to	TO
work	VB
the	DT
phones	NNS
through	IN
the	DT
weekend	NN
.	.

Administration	NN
officials	NNS
say	VBP
President	NNP
Bush	NNP
was	VBD
briefed	VBN
throughout	IN
Friday	NNP
afternoon	NN
and	CC
evening	NN
,	,
even	RB
after	IN
leaving	VBG
for	IN
Camp	NNP
David	NNP
.	.

He	PRP
had	VBD
frequent	JJ
telephone	NN
consultations	NNS
with	IN
Mr.	NNP
Brady	NNP
and	CC
Michael	NNP
Boskin	NNP
,	,
chairman	NN
of	IN
the	DT
counsel	NN
of	IN
economic	JJ
advisers	NNS
.	.

Government	NNP
officials	NNS
tried	VBD
throughout	IN
the	DT
weekend	NN
to	TO
render	VB
a	DT
business-as-usual	JJ
appearance	NN
in	IN
order	NN
to	TO
avoid	VB
any	DT
sense	NN
of	IN
panic	NN
.	.

Treasury	NNP
Undersecretary	NNP
David	NNP
Mulford	NNP
,	,
for	IN
instance	NN
,	,
was	VBD
at	IN
a	DT
meeting	NN
of	IN
the	DT
Business	NNP
Council	NNP
in	IN
Hot	NNP
Springs	NNPS
,	,
Va.	NNP
,	,
when	WRB
the	DT
stock	NN
market	NN
fell	VBD
,	,
and	CC
remained	VBD
there	RB
through	IN
the	DT
following	VBG
day	NN
.	.

And	CC
as	IN
of	IN
last	JJ
night	NN
,	,
Fed	NNP
Chairman	NNP
Greenspan	NNP
had	VBD
n't	RB
canceled	VBN
his	PRP$
plans	NNS
to	TO
address	VB
the	DT
American	NNP
Bankers	NNPS
Association	NNP
convention	NN
in	IN
Washington	NNP
at	IN
10	CD
a.m.	NN
this	DT
morning	NN
.	.

Ironically	RB
,	,
Mr.	NNP
Greenspan	NNP
was	VBD
scheduled	VBN
to	TO
address	VB
the	DT
same	JJ
convention	NN
in	IN
Dallas	NNP
on	IN
Oct.	NNP
20	CD
,	,
1987	CD
.	.

He	PRP
flew	VBD
to	TO
Dallas	NNP
on	IN
Oct.	NNP
19	CD
,	,
when	WRB
the	DT
market	NN
plummeted	VBD
508	CD
points	NNS
,	,
but	CC
then	RB
turned	VBD
around	RB
the	DT
next	JJ
morning	NN
and	CC
returned	VBD
to	TO
Washington	NNP
without	IN
delivering	VBG
his	PRP$
speech	NN
.	.

Following	VBG
is	VBZ
a	DT
weekly	JJ
listing	NN
of	IN
unadited	JJ
net	JJ
asset	NN
values	NNS
of	IN
publicly	RB
traded	VBN
investment	NN
fund	NN
shares	NNS
,	,
reported	VBN
by	IN
the	DT
companies	NNS
as	IN
of	IN
Friday	NNP
's	POS
close	NN
.	.

Also	RB
shown	VBN
is	VBZ
the	DT
closing	NN
listed	VBD
market	NN
price	NN
or	CC
a	DT
dealer-to-dealer	JJ
asked	VBN
price	NN
of	IN
each	DT
fund	NN
's	POS
shares	NNS
,	,
with	IN
the	DT
percentage	NN
of	IN
difference	NN
.	.

b	SYM
-	:
As	IN
of	IN
Thursday	NNP
's	POS
close	NN
.	.

c	SYM
-	:
Translated	VBN
at	IN
Commercial	NNP
Rand	NNP
exchange	NN
rate	NN
.	.

e	SYM
-	:
In	IN
Canadian	JJ
dollars	NNS
.	.

f	SYM
-	:
As	IN
of	IN
Wednesday	NNP
's	POS
close	NN
.	.

g	SYM
-	:
10.06.89	CD
NAV:22.15	NN
.	.

z	SYM
-	:
Not	RB
available	JJ
.	.

Put	VB
down	IN
that	DT
phone	NN
.	.

Walk	VB
around	IN
the	DT
room	NN
;	:
take	VB
two	CD
deep	JJ
breaths	NNS
.	.

Resist	VB
the	DT
urge	NN
to	TO
call	VB
your	PRP$
broker	NN
and	CC
sell	VB
all	PDT
your	PRP$
stocks	NNS
.	.

That	DT
's	VBZ
the	DT
advice	NN
of	IN
most	JJS
investment	NN
professionals	NNS
after	IN
Friday	NNP
's	POS
190-point	JJ
drop	NN
in	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
.	.

No	DT
one	NN
can	MD
say	VB
for	IN
sure	JJ
what	WP
will	MD
happen	VB
today	NN
.	.

And	CC
investment	NN
pros	NNS
are	VBP
divided	VBN
on	IN
whether	IN
stocks	NNS
will	MD
perform	VB
well	RB
or	CC
badly	RB
in	IN
the	DT
next	JJ
six	CD
months	NNS
.	.

But	CC
they	PRP
're	VBP
nearly	RB
unanimous	JJ
on	IN
one	CD
point	NN
:	:
Do	VB
n't	RB
sell	VB
into	IN
a	DT
panic	NN
.	.

Investors	NNS
who	WP
sold	VBD
everything	NN
after	IN
the	DT
crash	NN
of	IN
1987	CD
lived	VBD
to	TO
regret	VB
it	PRP
.	.

Even	RB
after	IN
Friday	NNP
's	POS
plunge	NN
,	,
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
was	VBD
48	CD
%	NN
above	IN
where	WRB
it	PRP
landed	VBD
on	IN
Oct.	NNP
19	CD
two	CD
years	NNS
ago	IN
.	.

Panic	NN
selling	NN
also	RB
was	VBD
unwise	JJ
during	IN
other	JJ
big	JJ
declines	NNS
in	IN
the	DT
past	NN
.	.

The	DT
crash	NN
of	IN
1929	CD
was	VBD
followed	VBN
by	IN
a	DT
substantial	JJ
recovery	NN
before	IN
the	DT
great	JJ
Depression	NN
and	CC
awful	JJ
bear	NN
market	NN
of	IN
the	DT
1930s	CD
began	VBD
.	.

The	DT
``	``
October	NNP
massacres	NNS
''	''
of	IN
1978	CD
and	CC
1979	CD
were	VBD
scary	JJ
,	,
but	CC
did	VBD
n't	RB
lead	VB
to	TO
severe	JJ
or	CC
sustained	VBN
downturns	NNS
.	.

Indeed	RB
,	,
some	DT
pros	NNS
see	VBP
Friday	NNP
's	POS
plunge	NN
,	,
plus	CC
any	DT
further	JJ
damage	NN
that	WDT
might	MD
occur	VB
early	RB
this	DT
week	NN
,	,
as	IN
a	DT
chance	NN
for	IN
bargain	NN
hunting	NN
.	.

``	``
There	EX
has	VBZ
been	VBN
a	DT
lot	NN
of	IN
emotional	JJ
selling	NN
that	WDT
presents	VBZ
a	DT
nice	JJ
buying	NN
opportunity	NN
if	IN
you	PRP
've	VBP
got	VBN
the	DT
cash	NN
,	,
''	''
says	VBZ
Stephen	NNP
B.	NNP
Timbers	NNP
,	,
chief	NN
investment	NN
officer	NN
of	IN
Chicago-based	JJ
Kemper	NNP
Financial	NNP
Services	NNPS
Inc	NNP
.	.

But	CC
most	JJS
advisers	NNS
think	VBP
the	DT
immediate	JJ
course	NN
for	IN
individual	JJ
investors	NNS
should	MD
be	VB
to	TO
stand	VB
pat	NN
.	.

``	``
When	WRB
you	PRP
see	VBP
a	DT
runaway	JJ
train	NN
,	,
''	''
says	VBZ
Steve	NNP
Janachowski	NNP
,	,
partner	NN
in	IN
the	DT
San	NNP
Francisco	NNP
investment	NN
advisory	NN
firm	NN
Brouwer	NNP
&	CC
Janachowski	NNP
,	,
``	``
you	PRP
wait	VBP
for	IN
the	DT
train	NN
to	TO
stop	VB
.	.
''	''

Even	RB
for	IN
people	NNS
who	WP
expect	VBP
a	DT
bear	NN
market	NN
in	IN
coming	VBG
months	NNS
--	:
and	CC
a	DT
sizable	JJ
number	NN
of	IN
money	NN
managers	NNS
and	CC
market	NN
pundits	NNS
do	VBP
--	:
the	DT
advice	NN
is	VBZ
:	:
Wait	VB
for	IN
the	DT
market	NN
to	TO
bounce	VB
back	RB
,	,
and	CC
sell	VB
shares	NNS
gradually	RB
during	IN
rallies	NNS
.	.

The	DT
best	JJS
thing	NN
individual	NN
investors	NNS
can	MD
do	VB
is	VBZ
``	``
just	RB
sit	VBP
tight	RB
,	,
''	''
says	VBZ
Marshall	NNP
B.	NNP
Front	NNP
,	,
executive	JJ
vice	NN
president	NN
and	CC
head	NN
of	IN
investment	NN
counseling	NN
at	IN
Stein	NNP
Roe	NNP
&	CC
Farnham	NNP
Inc.	NNP
,	,
a	DT
Chicago-based	JJ
investment	NN
counseling	VBG
firm	NN
that	WDT
manages	VBZ
about	IN
$	$
18	CD
billion	CD
.	.

On	IN
the	DT
one	CD
hand	NN
,	,
Mr.	NNP
Front	NNP
says	VBZ
,	,
it	PRP
would	MD
be	VB
misguided	VBN
to	TO
sell	VB
into	IN
``	``
a	DT
classic	JJ
panic	NN
.	.
''	''

On	IN
the	DT
other	JJ
hand	NN
,	,
it	PRP
's	VBZ
not	RB
necessarily	RB
a	DT
good	JJ
time	NN
to	TO
jump	VB
in	IN
and	CC
buy	VB
.	.

``	``
This	DT
is	VBZ
all	DT
emotion	NN
right	RB
now	RB
,	,
and	CC
when	WRB
emotion	NN
starts	VBZ
to	TO
run	VB
,	,
it	PRP
can	MD
run	VB
further	RB
than	IN
anyone	NN
anticipates	VBZ
,	,
''	''
he	PRP
said	VBD
.	.

``	``
So	IN
it	PRP
's	VBZ
more	RBR
prudent	JJ
to	TO
wait	VB
and	CC
see	VB
how	WRB
things	NNS
stabilize	VBP
.	.
''	''

Roger	NNP
Ibbotson	NNP
,	,
professor	NN
of	IN
finance	NN
at	IN
Yale	NNP
University	NNP
and	CC
head	NN
of	IN
the	DT
market	NN
information	NN
firm	NN
Ibbotson	NNP
Associates	NNPS
Inc.	NNP
,	,
says	VBZ
,	,
``	``
My	PRP$
real	JJ
advice	NN
would	MD
be	VB
to	TO
just	RB
ride	VB
through	IN
it	PRP
.	.

Generally	RB
,	,
it	PRP
is	VBZ
n't	RB
wise	JJ
to	TO
be	VB
in	IN
and	CC
out	IN
''	''
of	IN
the	DT
stock	NN
market	NN
.	.

Mr.	NNP
Ibbotson	NNP
thinks	VBZ
that	IN
this	DT
week	NN
is	VBZ
``	``
going	VBG
to	TO
be	VB
a	DT
roller-coaster	NN
week	NN
.	.
''	''

But	CC
he	PRP
also	RB
thinks	VBZ
it	PRP
is	VBZ
``	``
a	DT
good	JJ
week	NN
to	TO
consider	VB
buying	VBG
.	.
''	''

John	NNP
Snyder	NNP
,	,
former	JJ
president	NN
of	IN
the	DT
Los	NNP
Angeles	NNP
chapter	NN
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Investors	NNPS
Corp.	NNP
,	,
an	DT
organization	NN
of	IN
investment	NN
clubs	NNS
and	CC
individual	JJ
investors	NNS
,	,
says	VBZ
his	PRP$
fellow	NN
club	NN
members	NNS
did	VBD
n't	RB
sell	NN
in	IN
the	DT
crash	NN
of	IN
1987	CD
,	,
and	CC
see	VB
no	DT
reason	NN
to	TO
sell	VB
now	RB
.	.

``	``
We	PRP
're	VBP
dedicated	VBN
long-term	JJ
investors	NNS
,	,
not	RB
traders	NNS
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
We	PRP
understand	VBP
panics	NNS
and	CC
euphoria	NN
.	.

And	CC
we	PRP
hope	VBP
to	TO
take	VB
advantage	NN
of	IN
panics	NNS
and	CC
buy	VB
stocks	NNS
when	WRB
they	PRP
plunge	VBP
.	.
''	''

One	CD
camp	NN
of	IN
investment	NN
pros	NNS
sees	VBZ
what	WP
happened	VBD
Friday	NNP
as	IN
an	DT
opportunity	NN
.	.

Over	IN
the	DT
next	JJ
days	NNS
and	CC
weeks	NNS
,	,
they	PRP
say	VBP
,	,
investors	NNS
should	MD
look	VB
for	IN
stocks	NNS
to	TO
buy	VB
.	.

Friday	NNP
's	POS
action	NN
``	``
was	VBD
an	DT
old-fashioned	JJ
panic	NN
,	,
''	''
says	VBZ
Alfred	NNP
Goldman	NNP
,	,
director	NN
of	IN
technical	JJ
market	NN
analysis	NN
for	IN
A.G.	NNP
Edwards	NNP
&	CC
Sons	NNPS
in	IN
St.	NNP
Louis	NNP
.	.

``	``
Stocks	NNS
were	VBD
being	VBG
thrown	VBN
out	IN
of	IN
windows	NNS
at	IN
any	DT
price	NN
.	.
''	''

His	PRP$
advice	NN
:	:
``	``
You	PRP
ought	MD
to	TO
be	VB
there	RB
with	IN
a	DT
basket	NN
catching	VBG
them	PRP
.	.
''	''

James	NNP
Craig	NNP
,	,
portfolio	NN
manager	NN
for	IN
the	DT
Denver-based	JJ
Janus	NNP
Fund	NNP
,	,
which	WDT
has	VBZ
one	CD
of	IN
the	DT
industry	NN
's	POS
better	JJR
track	NN
records	NNS
,	,
started	VBD
his	PRP$
buying	NN
during	IN
Friday	NNP
's	POS
plunge	NN
.	.

Stocks	NNS
such	JJ
as	IN
Hershey	NNP
Foods	NNPS
Corp.	NNP
,	,
Wal-Mart	NNP
Stores	NNPS
Inc.	NNP
,	,
American	NNP
International	NNP
Group	NNP
Inc.	NNP
and	CC
Federal	NNP
National	NNP
Mortgage	NNP
Association	NNP
became	VBD
such	JJ
bargains	NNS
that	IN
he	PRP
could	MD
n't	RB
resist	VB
them	PRP
,	,
he	PRP
says	VBZ
.	.

And	CC
Mr.	NNP
Craig	NNP
expects	VBZ
to	TO
pick	VB
up	RP
more	JJR
shares	NNS
today	NN
.	.

``	``
It	PRP
will	MD
be	VB
chaotic	JJ
at	IN
first	JJ
,	,
but	CC
I	PRP
would	MD
not	RB
be	VB
buying	VBG
if	IN
I	PRP
thought	VBD
we	PRP
were	VBD
headed	VBN
for	IN
real	JJ
trouble	NN
,	,
''	''
he	PRP
says	VBZ
.	.

He	PRP
argues	VBZ
that	IN
stocks	NNS
are	VBP
reasonably	RB
valued	VBN
now	RB
,	,
and	CC
that	IN
interest	NN
rates	NNS
are	VBP
lower	JJR
now	RB
than	IN
in	IN
the	DT
fall	NN
of	IN
1987	CD
.	.

Mr.	NNP
Front	NNP
of	IN
Stein	NNP
Roe	NNP
suggests	VBZ
that	IN
any	DT
buying	NN
should	MD
``	``
concentrate	VB
in	IN
stocks	NNS
that	WDT
have	VBP
lagged	VBN
the	DT
market	NN
on	IN
the	DT
up	IN
side	NN
,	,
or	CC
stocks	NNS
that	WDT
have	VBP
been	VBN
beaten	VBN
down	RB
a	DT
lot	NN
more	RBR
than	IN
the	DT
market	NN
in	IN
this	DT
correction	NN
.	.
''	''

His	PRP$
firm	NN
favors	VBZ
selected	VBN
computer	NN
,	,
drug	NN
and	CC
pollution-control	JJ
stocks	NNS
.	.

Other	JJ
investment	NN
pros	NNS
are	VBP
more	RBR
pessimistic	JJ
.	.

They	PRP
say	VBP
investors	NNS
should	MD
sell	VB
stocks	NNS
--	:
but	CC
not	RB
necessarily	RB
right	RB
away	RB
.	.

Many	JJ
of	IN
them	PRP
stress	VBP
that	IN
the	DT
selling	NN
can	MD
be	VB
orderly	JJ
,	,
gradual	JJ
,	,
and	CC
done	VBN
when	WRB
stock	NN
prices	NNS
are	VBP
rallying	VBG
.	.

On	IN
Thursday	NNP
,	,
William	NNP
Fleckenstein	NNP
,	,
a	DT
Seattle	NNP
money	NN
manager	NN
,	,
used	VBD
futures	NNS
contracts	NNS
in	IN
his	PRP$
personal	JJ
account	NN
to	TO
place	VB
a	DT
bet	NN
that	IN
the	DT
broad	JJ
market	NN
averages	NNS
would	MD
decline	VB
.	.

He	PRP
thinks	VBZ
the	DT
underlying	VBG
inflation	NN
rate	NN
is	VBZ
around	IN
5	CD
%	NN
to	TO
6	CD
%	NN
,	,
far	RB
higher	JJR
than	IN
most	JJS
people	NNS
suppose	VBP
.	.

In	IN
the	DT
pension	NN
accounts	NNS
he	PRP
manages	VBZ
,	,
Mr.	NNP
Fleckenstein	NNP
has	VBZ
raised	VBN
cash	NN
positions	NNS
and	CC
invested	VBN
in	IN
gold	NN
and	CC
natural	JJ
gas	NN
stocks	NNS
,	,
partly	RB
as	IN
an	DT
inflation	NN
hedge	NN
.	.

He	PRP
thinks	VBZ
government	NN
officials	NNS
are	VBP
terrified	VBN
to	TO
let	VB
a	DT
recession	NN
start	VB
when	WRB
government	NN
,	,
corporate	JJ
and	CC
personal	JJ
debt	NN
levels	NNS
are	VBP
so	RB
high	JJ
.	.

So	IN
he	PRP
thinks	VBZ
the	DT
government	NN
will	MD
err	VB
on	IN
the	DT
side	NN
of	IN
rekindled	VBN
inflation	NN
.	.

As	IN
a	DT
result	NN
,	,
Mr.	NNP
Fleckenstein	NNP
says	VBZ
,	,
``	``
I	PRP
think	VBP
the	DT
ball	NN
game	NN
's	VBZ
over	IN
,	,
''	''
and	CC
investors	NNS
are	VBP
about	IN
to	TO
face	VB
a	DT
bear	NN
market	NN
.	.

David	NNP
M.	NNP
Jones	NNP
,	,
vice	NN
president	NN
at	IN
Aubrey	NNP
G.	NNP
Lanston	NNP
&	CC
Co.	NNP
,	,
recommends	VBZ
Treasury	NN
securities	NNS
(	(
of	IN
up	IN
to	TO
five	CD
years	NNS
'	POS
maturity	NN
)	)
.	.

He	PRP
says	VBZ
the	DT
Oct.	NNP
6	CD
employment	NN
report	NN
,	,
showing	VBG
slower	JJR
economic	JJ
growth	NN
and	CC
a	DT
severe	JJ
weakening	NN
in	IN
the	DT
manufacturing	VBG
sector	NN
,	,
is	VBZ
a	DT
warning	VBG
sign	NN
to	TO
investors	NNS
.	.

One	CD
strategy	NN
for	IN
investors	NNS
who	WP
want	VBP
to	TO
stay	VB
in	IN
but	CC
hedge	VB
their	PRP$
bets	NNS
is	VBZ
to	TO
buy	VB
``	``
put	VBN
''	''
options	NNS
,	,
either	CC
on	IN
the	DT
individual	JJ
stocks	NNS
they	PRP
own	VBP
or	CC
on	IN
a	DT
broad	JJ
market	NN
index	NN
.	.

A	DT
put	VBN
option	NN
gives	VBZ
its	PRP$
holder	NN
the	DT
right	RB
(	(
but	CC
not	RB
the	DT
obligation	NN
)	)
to	TO
sell	VB
a	DT
stock	NN
(	(
or	CC
stock	NN
index	NN
)	)
for	IN
a	DT
specified	VBN
price	NN
(	(
the	DT
strike	NN
price	NN
)	)
until	IN
the	DT
option	NN
expires	VBZ
.	.

Whether	IN
this	DT
insurance	NN
is	VBZ
worthwhile	JJ
depends	VBZ
on	IN
the	DT
cost	NN
of	IN
an	DT
option	NN
.	.

The	DT
cost	NN
,	,
or	CC
premium	NN
,	,
tends	VBZ
to	TO
get	VB
fat	JJ
in	IN
times	NNS
of	IN
crisis	NN
.	.

Thus	RB
,	,
buying	VBG
puts	NNS
after	IN
a	DT
big	JJ
market	NN
slide	NN
can	MD
be	VB
an	DT
expensive	JJ
way	NN
to	TO
hedge	VB
against	IN
risk	NN
.	.

The	DT
prices	NNS
of	IN
puts	NNS
generally	RB
did	VBD
n't	RB
soar	VB
Friday	NNP
.	.

For	IN
example	NN
,	,
the	DT
premium	NN
as	IN
a	DT
percentage	NN
of	IN
the	DT
stock	NN
price	NN
for	IN
certain	JJ
puts	NNS
on	IN
Eli	NNP
Lilly	NNP
&	CC
Co.	NNP
moved	VBD
up	RB
from	IN
3	CD
%	NN
at	IN
Thursday	NNP
's	POS
close	NN
to	TO
only	RB
3.3	CD
%	NN
at	IN
Friday	NNP
's	POS
close	NN
,	,
even	RB
though	IN
the	DT
shares	NNS
dropped	VBD
more	JJR
than	IN
$	$
5.50	CD
.	.

But	CC
put-option	NN
prices	NNS
may	MD
zoom	VB
when	WRB
trading	NN
resumes	VBZ
today	NN
.	.

It	PRP
's	VBZ
hard	JJ
to	TO
generalize	VB
about	IN
a	DT
reasonable	JJ
price	NN
for	IN
puts	NNS
.	.

But	CC
investors	NNS
should	MD
keep	VB
in	IN
mind	NN
,	,
before	IN
paying	VBG
too	RB
much	JJ
,	,
that	IN
the	DT
average	JJ
annual	JJ
return	NN
for	IN
stock	NN
holdings	NNS
,	,
long-term	JJ
,	,
is	VBZ
9	CD
%	NN
to	TO
10	CD
%	NN
a	DT
year	NN
;	:
a	DT
return	NN
of	IN
15	CD
%	NN
is	VBZ
considered	VBN
praiseworthy	JJ
.	.

Paying	VBG
,	,
say	VB
,	,
10	CD
%	NN
for	IN
insurance	NN
against	IN
losses	NNS
takes	VBZ
a	DT
deep	JJ
bite	NN
out	IN
of	IN
the	DT
return	NN
.	.

James	NNP
A.	NNP
White	NNP
and	CC
Tom	NNP
Herman	NNP
contributed	VBD
to	TO
this	DT
article	NN
.	.

Coldwell	NNP
Banker	NNP
Commercial	NNP
Group	NNP
said	VBD
it	PRP
sold	VBD
$	$
47	CD
million	CD
of	IN
common	JJ
stock	NN
to	TO
its	PRP$
employees	NNS
at	IN
$	$
10	CD
a	DT
share	NN
,	,
giving	VBG
them	PRP
a	DT
total	JJ
stake	NN
of	IN
more	RBR
than	IN
40	CD
%	NN
in	IN
the	DT
commercial	JJ
real	JJ
estate	NN
brokerage	NN
firm	NN
.	.

The	DT
firm	NN
,	,
which	WDT
was	VBD
acquired	VBN
in	IN
April	NNP
from	IN
Sears	NNP
,	,
Roebuck	NNP
&	CC
Co.	NNP
in	IN
a	DT
management-led	JJ
buy-out	NN
,	,
had	VBD
planned	VBN
to	TO
sell	VB
up	IN
to	TO
$	$
56.4	CD
million	CD
of	IN
stock	NN
,	,
or	CC
a	DT
50	CD
%	NN
stake	NN
in	IN
the	DT
company	NN
,	,
to	TO
its	PRP$
5,000	CD
employees	NNS
.	.

Though	IN
the	DT
offering	NN
did	VBD
n't	RB
sell	VB
out	IN
,	,
James	NNP
J.	NNP
Didion	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
said	VBD
,	,
``	``
We	PRP
're	VBP
pretty	RB
proud	JJ
of	IN
the	DT
employees	NNS
'	POS
response	NN
.	.
''	''

He	PRP
noted	VBD
that	IN
unlike	IN
an	DT
employee	NN
stock	NN
ownership	NN
plan	NN
,	,
where	WRB
a	DT
company	NN
usually	RB
borrows	VBZ
money	NN
from	IN
third	JJ
party	NN
lenders	NNS
to	TO
buy	VB
stock	NN
that	IN
it	PRP
sets	VBZ
aside	RB
to	TO
award	VB
employees	NNS
over	IN
time	NN
,	,
here	RB
employees	NNS
had	VBD
to	TO
fork	VB
out	RP
their	PRP$
own	JJ
cash	NN
for	IN
the	DT
stock	NN
.	.

``	``
They	PRP
came	VBD
up	RP
with	IN
their	PRP$
own	JJ
money	NN
instead	RB
of	IN
borrowed	VBN
money	NN
,	,
''	''
Mr.	NNP
Didion	NNP
said	VBD
.	.

``	``
It	PRP
's	VBZ
totally	RB
different	JJ
.	.
''	''

He	PRP
said	VBD
the	DT
offering	NN
was	VBD
designed	VBN
to	TO
create	VB
long-term	JJ
incentives	NNS
for	IN
employees	NNS
.	.

``	``
We	PRP
're	VBP
in	IN
a	DT
service	NN
business	NN
,	,
and	CC
in	IN
that	DT
context	NN
,	,
it	PRP
's	VBZ
vital	JJ
to	TO
have	VB
your	PRP$
employees	NNS
involved	VBN
in	IN
the	DT
ownership	NN
so	IN
they	PRP
have	VBP
a	DT
stake	NN
in	IN
the	DT
success	NN
.	.
''	''

The	DT
brokerage	NN
firm	NN
wo	MD
n't	RB
pay	VB
a	DT
dividend	NN
on	IN
the	DT
stock	NN
.	.

Employees	NNS
have	VBP
the	DT
right	NN
to	TO
trade	VB
stock	NN
among	IN
themselves	PRP
,	,
and	CC
the	DT
company	NN
will	MD
establish	VB
an	DT
internal	JJ
clearing	NN
house	NN
for	IN
these	DT
transactions	NNS
.	.

They	PRP
may	MD
also	RB
eventually	RB
sell	VB
the	DT
shares	NNS
to	TO
third	JJ
parties	NNS
,	,
but	CC
the	DT
outside	JJ
investors	NNS
who	WP
own	VBP
the	DT
remaining	VBG
60	CD
%	NN
of	IN
Coldwell	NNP
Banker	NNP
have	VBP
the	DT
right	NN
to	TO
first	JJ
refusal	NN
.	.

Those	DT
outside	JJ
investors	NNS
in	IN
Coldwell	NNP
Banker	NNP
include	VBP
Carlyle	NNP
Group	NNP
,	,
a	DT
closely	RB
held	VBN
Washington	NNP
,	,
D.C.	NNP
,	,
merchant	NN
banking	NN
firm	NN
whose	WP$
co-chairman	NN
is	VBZ
Frank	NNP
Carlucci	NNP
,	,
former	JJ
secretary	NN
of	IN
defense	NN
;	:
Frederic	NNP
V.	NNP
Malek	NNP
,	,
senior	JJ
adviser	NN
to	TO
Carlyle	NNP
Group	NNP
;	:
Mellon	NNP
Family	NNP
Trust	NNP
of	IN
Pittsburgh	NNP
;	:
Westinghouse	NNP
Credit	NNP
Corp.	NNP
,	,
the	DT
financial	JJ
services	NNS
unit	NN
of	IN
Westinghouse	NNP
Electric	NNP
Corp.	NNP
;	:
Bankers	NNPS
Trust	NNP
Co.	NNP
,	,
a	DT
unit	NN
of	IN
Bankers	NNPS
Trust	NNP
New	NNP
York	NNP
Corp.	NNP
;	:
and	CC
a	DT
group	NN
of	IN
Japanese	JJ
investors	NNS
represented	VBN
by	IN
the	DT
investment	NN
banking	NN
unit	NN
of	IN
Tokyo-based	JJ
Sumitomo	NNP
Bank	NNP
.	.

Bankers	NNPS
Trust	NNP
and	CC
Sumitomo	NNP
financed	VBD
the	DT
$	$
300	CD
million	CD
acquisition	NN
from	IN
Sears	NNP
Roebuck	NNP
.	.

Coldwell	NNP
Banker	NNP
also	RB
named	VBD
three	CD
outside	IN
director	NN
nominees	NNS
for	IN
its	PRP$
17	CD
member	NN
board	NN
.	.

The	DT
nominees	NNS
are	VBP
Gary	NNP
Wilson	NNP
,	,
chief	NN
financial	JJ
officer	NN
of	IN
Walt	NNP
Disney	NNP
Co.	NNP
;	:
James	NNP
Montgomery	NNP
,	,
chief	NN
executive	NN
officer	NN
of	IN
Great	NNP
Western	NNP
Financial	NNP
Corp.	NNP
;	:
and	CC
Peter	NNP
Ubberroth	NNP
,	,
former	JJ
commissioner	NN
of	IN
baseball	NN
and	CC
now	RB
a	DT
private	JJ
investor	NN
.	.

The	DT
first	JJ
major	JJ
event	NN
this	DT
morning	NN
in	IN
U.S.	NNP
stock	NN
and	CC
futures	NNS
trading	NN
may	MD
be	VB
a	DT
pause	NN
at	IN
the	DT
Chicago	NNP
Mercantile	NNP
Exchange	NNP
.	.

Under	IN
a	DT
reform	NN
arising	VBG
from	IN
the	DT
1987	CD
crash	NN
,	,
trading	VBG
in	IN
the	DT
Merc	NNP
's	POS
stock-index	NN
futures	NNS
will	MD
break	VB
for	IN
10	CD
minutes	NNS
if	IN
the	DT
contract	NN
opens	VBZ
and	CC
stays	VBZ
five	CD
points	NNS
from	IN
Friday	NNP
's	POS
close	NN
,	,
a	DT
move	NN
equal	JJ
to	TO
40	CD
points	NNS
on	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
.	.

The	DT
aim	NN
of	IN
the	DT
interruption	NN
would	MD
be	VB
to	TO
ease	VB
the	DT
opening	NN
of	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
,	,
which	WDT
would	MD
be	VB
hammered	VBN
by	IN
such	PDT
a	DT
volatile	JJ
move	NN
on	IN
the	DT
Merc	NNP
.	.

That	DT
early-morning	NN
breather	NN
is	VBZ
just	RB
one	CD
of	IN
a	DT
number	NN
of	IN
safeguards	NNS
adopted	VBN
after	IN
the	DT
1987	CD
crash	NN
.	.

The	DT
Big	NNP
Board	NNP
also	RB
added	VBD
computer	NN
capacity	NN
to	TO
handle	VB
huge	JJ
surges	NNS
in	IN
trading	NN
volume	NN
.	.

Several	JJ
of	IN
those	DT
post-crash	JJ
changes	NNS
kicked	VBD
in	RP
during	IN
Friday	NNP
's	POS
one-hour	JJ
collapse	NN
and	CC
worked	VBD
as	IN
expected	VBN
,	,
even	RB
though	IN
they	PRP
did	VBD
n't	RB
prevent	VB
a	DT
stunning	JJ
plunge	NN
.	.

But	CC
the	DT
major	JJ
``	``
circuit	NN
breakers	NNS
''	''
have	VBP
yet	RB
to	TO
be	VB
evaluated	VBN
.	.

A	DT
deeper	JJR
market	NN
plunge	NN
today	NN
could	MD
give	VB
them	PRP
their	PRP$
first	JJ
test	NN
.	.

A	DT
further	JJ
slide	NN
also	RB
would	MD
resurrect	VB
debate	NN
over	IN
a	DT
host	NN
of	IN
other	JJ
,	,
more	JJR
sweeping	VBG
changes	NNS
proposed	VBN
--	:
but	CC
not	RB
implemented	VBN
--	:
after	IN
the	DT
last	JJ
crash	NN
.	.

Most	RBS
notably	RB
,	,
several	JJ
of	IN
the	DT
regulatory	JJ
steps	NNS
recommended	VBN
by	IN
the	DT
Brady	NNP
Task	NNP
Force	NNP
,	,
which	WDT
analyzed	VBD
the	DT
1987	CD
crash	NN
,	,
would	MD
be	VB
revived	VBN
--	:
especially	RB
because	IN
that	DT
group	NN
's	POS
chairman	NN
is	VBZ
now	RB
the	DT
Treasury	NN
secretary	NN
.	.

The	DT
most	RBS
controversial	JJ
of	IN
the	DT
Brady	NNP
recommendations	NNS
involved	VBD
establishing	VBG
a	DT
single	JJ
overarching	VBG
regulator	NN
to	TO
handle	VB
crucial	JJ
cross-market	JJ
questions	NNS
,	,
such	JJ
as	IN
setting	VBG
consistent	JJ
margin	NN
requirements	NNS
for	IN
the	DT
stock	NN
and	CC
futures	NNS
markets	NNS
.	.

But	CC
for	IN
the	DT
moment	NN
,	,
attention	NN
focuses	VBZ
on	IN
the	DT
reforms	NNS
that	WDT
were	VBD
put	VBN
into	IN
place	NN
,	,
and	CC
market	NN
regulators	NNS
and	CC
participants	NNS
said	VBD
the	DT
circuit	NN
breakers	NNS
worked	VBD
as	RB
intended	VBN
.	.

Big	NNP
Board	NNP
and	CC
Merc	NNP
officials	NNS
expressed	VBD
satisfaction	NN
with	IN
the	DT
results	NNS
of	IN
two	CD
limits	NNS
imposed	VBN
on	IN
of	IN
the	DT
Merc	NNP
's	POS
Standard	NNP
&	CC
Poor	NNP
's	POS
500	CD
contract	NN
,	,
as	RB
well	RB
as	IN
``	``
hot-line	NN
''	''
communications	NNS
among	IN
exchanges	NNS
.	.

Those	DT
pauses	NNS
--	:
from	IN
2:07	CD
p.m.	NN
to	TO
2:30	CD
p.m.	NN
CDT	NNP
and	CC
from	IN
2:45	CD
p.m.	NN
until	IN
the	DT
close	NN
of	IN
trading	NN
a	DT
half-hour	NN
later	RB
--	:
forced	VBD
traders	NNS
to	TO
buy	VB
and	CC
sell	VB
contracts	NNS
at	IN
prices	NNS
at	IN
or	CC
higher	JJR
than	IN
their	PRP$
frozen	VBN
levels	NNS
.	.

During	IN
the	DT
first	JJ
halt	NN
,	,
after	IN
the	DT
S&P	NNP
index	NN
had	VBD
fallen	VBN
12	CD
points	NNS
,	,
the	DT
Big	NNP
Board	NNP
's	POS
``	``
Sidecar	NN
''	''
computer	NN
program	NN
automatically	RB
was	VBD
triggered	VBN
.	.

That	DT
system	NN
is	VBZ
designed	VBN
to	TO
separate	VB
computer-generated	JJ
program	NN
trades	NNS
from	IN
all	DT
other	JJ
trades	NNS
to	TO
help	VB
exchange	NN
officials	NNS
resolve	VB
order	NN
imbalances	NNS
in	IN
individual	JJ
stocks	NNS
.	.

One	CD
Merc	NNP
broker	NN
compared	VBD
the	DT
action	NN
in	IN
the	DT
S&P	NNP
pit	NN
during	IN
the	DT
two	CD
freezes	NNS
to	TO
a	DT
fire	NN
at	IN
a	DT
well-drilled	JJ
school	NN
.	.

``	``
You	PRP
do	VBP
n't	RB
want	VB
the	DT
fire	NN
but	CC
you	PRP
know	VBP
what	WP
to	TO
do	VB
,	,
''	''
said	VBD
Howard	NNP
Dubnow	NNP
,	,
an	DT
independent	JJ
floor	NN
broker	NN
and	CC
a	DT
Merc	NNP
governor	NN
.	.

``	``
There	EX
was	VBD
no	DT
panic	NN
.	.

The	DT
system	NN
worked	VBD
the	DT
way	NN
we	PRP
devised	VBD
it	PRP
to	TO
work	VB
.	.
''	''

After	IN
reopening	VBG
for	IN
about	IN
15	CD
minutes	NNS
,	,
the	DT
S&P	NNP
index	NN
tumbled	VBD
to	TO
its	PRP$
30-point	JJ
limit	NN
and	CC
the	DT
second	JJ
freeze	NN
went	VBD
into	IN
effect	NN
.	.

Traders	NNS
then	RB
spent	VBD
the	DT
last	JJ
half-hour	NN
``	``
watching	VBG
to	TO
see	VB
if	IN
the	DT
Dow	NNP
would	MD
drop	VB
250	CD
points	NNS
,	,
''	''
Mr.	NNP
Dubnow	NNP
added	VBD
,	,
referring	VBG
to	TO
the	DT
level	NN
at	IN
which	WDT
the	DT
stock	NN
market	NN
itself	PRP
would	MD
have	VB
closed	VBN
for	IN
an	DT
hour	NN
.	.

One	CD
observer	NN
estimated	VBD
that	IN
80	CD
%	NN
to	TO
90	CD
%	NN
of	IN
the	DT
S&P	NNP
traders	NNS
``	``
were	VBD
just	RB
standing	VBG
around	IN
watching	VBG
.	.
''	''

But	CC
the	DT
250-point	JJ
circuit	NN
breaker	NN
never	RB
had	VBD
to	TO
kick	VB
in	IN
,	,
and	CC
freezes	VBZ
on	IN
the	DT
Chicago	NNP
Board	NNP
of	IN
Trade	NNP
's	POS
Major	NNP
Market	NNP
Index	NNP
also	RB
were	VBD
n't	RB
triggered	VBN
.	.

The	DT
MMI	NNP
and	CC
the	DT
S&P	NNP
500	CD
are	VBP
the	DT
two	CD
major	JJ
indexes	NNS
used	VBN
by	IN
program	NN
traders	NNS
to	TO
run	VB
their	PRP$
computerized	VBN
trading	NN
strategies	NNS
.	.

The	DT
programs	NNS
are	VBP
considered	VBN
by	IN
many	JJ
to	TO
be	VB
a	DT
major	JJ
cause	NN
of	IN
the	DT
1987	CD
crash	NN
.	.

The	DT
process	NN
of	IN
post-crash	JJ
reforms	NNS
began	VBD
with	IN
calls	NNS
to	TO
remake	VB
the	DT
markets	NNS
and	CC
wound	VBD
up	RP
a	DT
year	NN
later	RB
with	IN
a	DT
series	NN
of	IN
rather	RB
technical	JJ
adjustments	NNS
.	.

In	IN
October	NNP
1987	CD
,	,
just	RB
after	IN
the	DT
market	NN
drop	NN
,	,
Washington	NNP
was	VBD
awash	JJ
in	IN
talk	NN
of	IN
sweeping	VBG
changes	NNS
in	IN
the	DT
way	NN
the	DT
financial	JJ
markets	NNS
are	VBP
structured	VBN
and	CC
regulated	VBN
.	.

Over	IN
the	DT
next	JJ
year	NN
that	IN
grand	JJ
agenda	NN
was	VBD
whittled	VBN
down	RB
to	TO
a	DT
series	NN
of	IN
steps	NNS
to	TO
soften	VB
big	JJ
stock	NN
drops	NNS
by	IN
interrupting	VBG
trading	NN
to	TO
give	VB
market	NN
players	NNS
time	NN
to	TO
pause	VB
and	CC
reconsider	VB
positions	NNS
.	.

In	IN
addition	NN
,	,
limits	NNS
were	VBD
placed	VBN
on	IN
computer-driven	JJ
trading	NN
,	,
and	CC
steps	NNS
were	VBD
taken	VBN
to	TO
better	RB
link	VB
the	DT
stock	NN
and	CC
futures	NNS
markets	NNS
.	.

Few	JJ
changes	NNS
were	VBD
made	VBN
in	IN
the	DT
way	NN
the	DT
markets	NNS
are	VBP
regulated	VBN
.	.

At	IN
the	DT
outset	NN
the	DT
prime	JJ
target	NN
was	VBD
program	NN
trading	NN
,	,
which	WDT
was	VBD
much	RB
discussed	VBN
but	CC
little	RB
understood	VBN
on	IN
Capitol	NNP
Hill	NNP
.	.

There	EX
were	VBD
also	RB
calls	VBZ
to	TO
strip	VB
the	DT
stock	NN
markets	NNS
of	IN
``	``
derivative	JJ
''	''
products	NNS
,	,
such	JJ
as	IN
stock-index	JJ
futures	NNS
and	CC
options	NNS
,	,
which	WDT
Federal	NNP
Judge	NNP
Stanley	NNP
Sporkin	NNP
,	,
for	IN
example	NN
,	,
likened	VBD
to	TO
``	``
barnacles	NNS
attached	VBN
to	TO
the	DT
basic	JJ
market	NN
.	.
''	''

And	CC
there	EX
was	VBD
much	JJ
criticism	NN
of	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
's	POS
system	NN
of	IN
having	VBG
stock	NN
trades	NNS
flow	VB
through	IN
specialists	NNS
,	,
or	CC
market	NN
makers	NNS
.	.

When	WRB
the	DT
Brady	NNP
Task	NNP
Force	NNP
's	POS
powerful	JJ
analysis	NN
of	IN
the	DT
crash	NN
was	VBD
released	VBN
in	IN
January	NNP
1988	CD
,	,
it	PRP
immediately	RB
reshaped	VBD
the	DT
reformers	NNS
'	POS
agenda	NN
.	.

Arguing	VBG
that	IN
the	DT
separate	JJ
financial	JJ
marketplaces	NNS
acted	VBD
as	IN
one	CD
,	,
and	CC
concluding	VBG
that	IN
the	DT
crash	NN
had	VBD
``	``
raised	VBN
the	DT
possibility	NN
of	IN
a	DT
full-scale	JJ
financial	JJ
system	NN
breakdown	NN
,	,
''	''
the	DT
presidential	JJ
task	NN
force	NN
called	VBD
for	IN
establishing	VBG
a	DT
super-regulator	NN
to	TO
oversee	VB
the	DT
markets	NNS
,	,
to	TO
make	VB
margins	NNS
consistent	JJ
across	IN
markets	NNS
,	,
to	TO
unify	VB
clearing	VBG
systems	NNS
and	CC
to	TO
install	VB
circuit	NN
breakers	NNS
.	.

Only	RB
the	DT
last	JJ
of	IN
those	DT
recommendations	NNS
ever	RB
was	VBD
implemented	VBN
.	.

The	DT
Reagan	NNP
White	NNP
House	NNP
held	VBD
the	DT
Brady	NNP
recommendations	NNS
at	IN
arm	NN
's	POS
length	NN
and	CC
named	VBD
a	DT
second	JJ
panel	NN
--	:
the	DT
Working	NNP
Group	NNP
on	IN
the	DT
Financial	NNP
Markets	NNPS
--	:
to	TO
review	VB
its	PRP$
analysis	NN
and	CC
those	DT
of	IN
other	JJ
crash	NN
studies	NNS
.	.

In	IN
May	NNP
1988	CD
,	,
the	DT
Working	NNP
Group	NNP
,	,
made	VBD
up	RP
of	IN
representatives	NNS
from	IN
the	DT
Federal	NNP
Reserve	NNP
,	,
the	DT
Treasury	NNP
,	,
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
,	,
and	CC
the	DT
Commodity	NNP
Futures	NNPS
Trading	NNP
Commission	NNP
,	,
finally	RB
endorsed	VBD
only	JJ
circuit	NN
breakers	NNS
.	.

After	IN
several	JJ
more	JJR
months	NNS
of	IN
arguments	NNS
among	IN
various	JJ
stock	NN
exchanges	NNS
and	CC
futures	NNS
markets	NNS
,	,
circuit	NN
breakers	NNS
were	VBD
set	VBN
in	IN
place	NN
,	,
with	IN
the	DT
most	RBS
notable	JJ
suspending	VBG
trading	NN
after	IN
250	CD
and	CC
400	CD
point	NN
drops	NNS
in	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
.	.

Privately	RB
,	,
some	DT
free	JJ
marketeers	NNS
dismissed	VBD
such	JJ
mechanisms	NNS
as	IN
sops	NNS
to	TO
interventionists	NNS
.	.

After	IN
all	DT
,	,
this	DT
free-market	NN
argument	NN
went	VBD
,	,
the	DT
Dow	NNP
only	RB
dropped	VBD
more	JJR
than	IN
250	CD
points	NNS
once	RB
this	DT
century	NN
.	.

``	``
Circuit	NN
breakers	NNS
''	''
set	VBN
to	TO
soften	VB
big	JJ
drops	NNS
:	:

--	:
If	IN
S&P	NNP
futures	NNS
fall	VBP
5	CD
points	NNS
at	IN
opening	NN
,	,
contract	NN
trading	NN
pauses	VBZ
for	IN
10	CD
minutes	NNS
.	.

--	:
If	IN
Dow	NNP
Industrials	NNPS
fall	VBP
25	CD
points	NNS
at	IN
opening	NN
,	,
contract	NN
trading	NN
pauses	VBZ
for	IN
10	CD
minutes	NNS
.	.

--	:
If	IN
S&P	NNP
futures	NNS
fall	VBP
12	CD
points	NNS
(	(
equivalent	NN
to	TO
about	IN
100	CD
points	NNS
on	IN
DJIA	NNP
)	)
,	,
trading	NN
is	VBZ
frozen	VBN
for	IN
half	DT
hour	NN
to	TO
that	DT
price	NN
or	CC
higher	JJR
.	.

On	IN
NYSE	NNP
program	NN
trades	NNS
are	VBP
diverted	VBN
into	IN
a	DT
separate	JJ
computer	NN
file	NN
to	TO
determine	VB
buy	VB
and	CC
sell	VB
orders	NNS
.	.

--	:
If	IN
S&P	NNP
futures	NNS
fall	VBP
30	CD
points	NNS
,	,
trading	NN
is	VBZ
restricted	VBN
for	IN
an	DT
hour	NN
to	TO
that	DT
price	NN
or	CC
higher	JJR
.	.

--	:
If	IN
Dow	NNP
Industrials	NNPS
fall	VBP
250	CD
points	NNS
,	,
trading	NN
on	IN
the	DT
Big	NNP
Board	NNP
halts	VBZ
for	IN
an	DT
hour	NN
.	.

S&P	NNP
and	CC
MMI	NNP
contracts	NNS
also	RB
halt	VBP
.	.

--	:
If	IN
DJIA	NNP
drops	VBZ
400	CD
points	NNS
,	,
Big	NNP
Board	NNP
halts	VBZ
trading	NN
for	IN
two	CD
hours	NNS
.	.

Trading	NN
in	IN
MMI	NNP
and	CC
S&P	NNP
futures	NNS
also	RB
halted	VBD
.	.

Brady	NNP
Task	NNP
Force	NNP
recommendations	NNS
(	(
Jan.	NNP
1988	CD
)	)
:	:

--	:
Establish	VB
an	DT
overarching	VBG
regulator	NN
for	IN
financial	JJ
markets	NNS

--	:
Unify	VB
trade-clearing	JJ
systems	NNS

--	:
Make	VB
margins	NNS
consistent	JJ
across	IN
stock	NN
and	CC
futures	NNS
markets	NNS

SEC	NNP
proposals	NNS
(	(
May	NNP
1988	CD
)	)
:	:

--	:
Require	VB
prompt	JJ
reports	NNS
of	IN
large	JJ
securities	NNS
trades	NNS
.	.

--	:
Give	VB
SEC	NNP
authority	NN
to	TO
monitor	VB
risk-taking	NN
by	IN
affiliates	NNS
of	IN
brokerage	NN
firms	NNS
.	.

--	:
Transfer	NN
jurisdiction	NN
over	IN
stock-related	JJ
futures	NNS
to	TO
SEC	NNP
from	IN
CFTC	NNP
.	.

(	(
Opposed	VBN
by	IN
new	JJ
SEC	NNP
chairman	NN
)	)

--	:
Give	VB
SEC	NNP
authority	NN
to	TO
halt	VB
securities	NNS
trading	NN
,	,
(	(
also	RB
opposed	VBN
by	IN
new	JJ
SEC	NNP
chairman	NN
)	)
.	.

Congressional	JJ
proposal	NN
:	:

--	:
Create	VB
a	DT
task	NN
force	NN
to	TO
review	VB
current	JJ
state	NN
of	IN
the	DT
securities	NNS
markets	NNS
and	CC
securities	NNS
laws	NNS
.	.

Breaking	VBG
the	DT
Soviet	JJ
government	NN
's	POS
television	NN
monopoly	NN
,	,
an	DT
independent	JJ
company	NN
has	VBZ
gained	VBN
rights	NNS
to	TO
show	VB
world	NN
programming	NN
,	,
including	VBG
American	JJ
films	NNS
.	.

``	``
There	EX
must	MD
not	RB
be	VB
a	DT
monopoly	NN
,	,
there	EX
must	MD
be	VB
freedom	NN
of	IN
choice	NN
for	IN
both	DT
journalists	NNS
and	CC
viewers	NNS
,	,
''	''
Nikolai	NNP
I.	NNP
Lutsenko	NNP
,	,
the	DT
president	NN
of	IN
the	DT
Nika	NNP
TV	NN
company	NN
,	,
told	VBD
the	DT
weekly	JJ
newspaper	NN
Nedelya	NNP
.	.

The	DT
company	NN
is	VBZ
already	RB
working	VBG
on	IN
its	PRP$
own	JJ
programming	NN
in	IN
several	JJ
provincial	JJ
cities	NNS
and	CC
hopes	VBZ
to	TO
be	VB
on	IN
the	DT
air	NN
regularly	RB
in	IN
about	IN
a	DT
year	NN
,	,
the	DT
newspaper	NN
said	VBD
.	.

Mr.	NNP
Lutsenko	NNP
told	VBD
Nedelya	NNP
that	IN
he	PRP
recently	RB
had	VBD
been	VBN
to	TO
the	DT
U.S.	NNP
to	TO
pick	VB
up	RP
the	DT
rights	NNS
to	TO
show	VB
5,000	CD
U.S.	NNP
films	NNS
in	IN
the	DT
Soviet	NNP
Union	NNP
.	.

Nedelya	NNP
's	POS
article	NN
was	VBD
accompanied	VBN
by	IN
a	DT
picture	NN
of	IN
Mr.	NNP
Lutsenko	NNP
interviewing	VBG
singer	NN
John	NNP
Denver	NNP
in	IN
Colorado	NNP
.	.

Even	RB
though	IN
it	PRP
will	MD
be	VB
independent	JJ
of	IN
official	JJ
television	NN
,	,
Nika	NNP
will	MD
have	VB
an	DT
oversight	NN
board	NN
that	WDT
will	MD
include	VB
members	NNS
of	IN
the	DT
Communist	NNP
youth	NN
league	NN
.	.

South	NNP
Africa	NNP
's	POS
National	NNP
Union	NNP
of	IN
Mineworkers	NNPS
said	VBD
that	IN
about	IN
10,000	CD
diamond	NN
miners	NNS
struck	VBN
for	IN
higher	JJR
wages	NNS
at	IN
De	NNP
Beers	NNP
Consolidated	NNP
Mines	NNPS
Ltd.	NNP

De	NNP
Beers	NNP
said	VBD
that	IN
workers	NNS
at	IN
five	CD
of	IN
the	DT
group	NN
's	POS
mines	NNS
were	VBD
on	IN
strike	NN
,	,
which	WDT
it	PRP
said	VBD
was	VBD
peaceful	JJ
,	,
with	IN
orderly	JJ
picketing	NN
occurring	VBG
at	IN
one	CD
of	IN
the	DT
mines	NNS
.	.

The	DT
deadlock	NN
in	IN
negotiations	NNS
occurred	VBD
with	IN
De	NNP
Beers	NNP
offering	VBG
a	DT
17	CD
%	NN
increase	NN
in	IN
the	DT
minimum-wage	NN
category	NN
while	IN
the	DT
union	NN
demanded	VBD
a	DT
37.6	CD
%	NN
increase	NN
in	IN
the	DT
minimum	JJ
wage	NN
.	.

Japan	NNP
's	POS
opposition	NN
Socialist	NNP
Party	NNP
denied	VBD
that	IN
its	PRP$
legislators	NNS
had	VBD
been	VBN
bribed	VBN
by	IN
pinball-parlor	NN
owners	NNS
.	.

The	DT
allegation	NN
had	VBD
been	VBN
raised	VBN
in	IN
Parliament	NNP
by	IN
the	DT
governing	VBG
Liberal	NNP
Democratic	NNP
Party	NNP
following	VBG
magazine	NN
reports	NNS
suggesting	VBG
that	DT
money	NN
from	IN
Japanese-style	JJ
pinball	NN
,	,
called	VBN
pachinko	NN
,	,
had	VBD
infiltrated	VBN
politics	NNS
.	.

Tsuruo	NNP
Yamaguchi	NNP
,	,
secretary	NN
general	NN
of	IN
the	DT
Socialist	NNP
Party	NNP
,	,
acknowledged	VBD
that	IN
nine	CD
party	NN
lawmakers	NNS
had	VBD
received	VBN
donations	NNS
from	IN
the	DT
pachinko	NN
association	NN
totaling	VBG
8	CD
million	CD
yen	NN
(	(
about	IN
$	$
55,000	CD
)	)
but	CC
said	VBD
the	DT
donations	NNS
were	VBD
legal	JJ
and	CC
none	NN
of	IN
its	PRP$
members	NNS
acted	VBD
to	TO
favor	VB
the	DT
industry	NN
.	.

The	DT
World	NNP
Wide	NNP
Fund	NNP
for	IN
Nature	NNP
said	VBD
that	IN
Spain	NNP
,	,
Argentina	NNP
,	,
Thailand	NNP
and	CC
Indonesia	NNP
were	VBD
doing	VBG
too	RB
little	JJ
to	TO
prevent	VB
illegal	JJ
trade	NN
in	IN
endangered	VBN
wildlife	NN
across	IN
their	PRP$
borders	NNS
.	.

A	DT
report	NN
by	IN
the	DT
conservation	NN
group	NN
presented	VBN
at	IN
the	DT
U.N.-sponsored	JJ
Convention	NNP
on	IN
International	NNP
Trade	NNP
in	IN
Endangered	NNP
Species	NNP
in	IN
Lausanne	NNP
accused	VBD
the	DT
four	CD
of	IN
trading	VBG
protected	VBN
species	NNS
ranging	VBG
from	IN
parakeets	NNS
to	TO
orchids	NNS
.	.

Fund	NNP
official	NN
Simon	NNP
Lyster	NNP
said	VBD
world	NN
trade	NN
in	IN
wildlife	NN
was	VBD
estimated	VBN
to	TO
total	VB
$	$
5	CD
billion	CD
of	IN
business	NN
annually	RB
.	.

A	DT
NATO	NNP
project	NN
to	TO
build	VB
a	DT
frigate	NN
for	IN
the	DT
1990s	CD
was	VBD
torpedoed	VBN
by	IN
the	DT
pull-out	NN
of	IN
three	CD
of	IN
its	PRP$
eight	CD
participating	VBG
nations	NNS
.	.

Britain	NNP
,	,
France	NNP
and	CC
Italy	NNP
announced	VBD
technical	JJ
reasons	NNS
for	IN
withdrawing	VBG
,	,
but	CC
some	DT
officials	NNS
pointed	VBD
to	TO
growing	VBG
reluctance	NN
among	IN
the	DT
allies	NNS
to	TO
commit	VB
themselves	PRP
to	TO
big	JJ
defense	NN
spending	NN
while	IN
East-West	NNP
disarmament	NN
talks	NNS
show	VBP
signs	NNS
of	IN
success	NN
.	.

Small	JJ
wonder	NN
that	IN
Britain	NNP
's	POS
Labor	NNP
Party	NNP
wants	VBZ
credit	NN
controls	NNS
.	.

A	DT
few	JJ
hours	NNS
after	IN
the	DT
party	NN
launched	VBD
its	PRP$
own	JJ
affinity	NN
credit	NN
card	NN
earlier	RBR
this	DT
month	NN
,	,
the	DT
Tories	NNS
raised	VBD
the	DT
nation	NN
's	POS
base	NN
interest	NN
rate	NN
.	.

Labor	NNP
's	POS
Visa	NNP
card	NN
is	VBZ
believed	VBN
to	TO
be	VB
the	DT
first	RB
linked	VBN
to	TO
a	DT
British	JJ
political	JJ
party	NN
.	.

Labor	NNP
gets	VBZ
25	CD
pence	NN
(	(
39	CD
cents	NNS
)	)
for	IN
every	DT
100	CD
(	(
about	IN
$	$
155	CD
)	)
that	IN
a	DT
user	NN
charges	VBZ
to	TO
the	DT
card	NN
.	.

As	IN
with	IN
other	JJ
plastic	NN
in	IN
Britain	NNP
's	POS
high-interest-rate	JJ
environment	NN
,	,
the	DT
Labor	NNP
card	NN
,	,
administered	VBN
by	IN
Co-operative	NNP
Bank	NNP
,	,
carries	VBZ
a	DT
stiff	JJ
(	(
in	IN
this	DT
case	NN
,	,
29.8	CD
%	NN
)	)
annual	JJ
rate	NN
on	IN
the	DT
unpaid	JJ
balance	NN
.	.

China	NNP
's	POS
year-long	JJ
austerity	NN
program	NN
has	VBZ
achieved	VBN
some	DT
successes	NNS
in	IN
harnessing	VBG
runaway	JJ
economic	JJ
growth	NN
and	CC
stabilizing	VBG
prices	NNS
but	CC
has	VBZ
failed	VBN
to	TO
eliminate	VB
serious	JJ
defects	NNS
in	IN
state	NN
planning	NN
and	CC
an	DT
alarming	VBG
drain	NN
on	IN
state	NN
budgets	NNS
.	.

The	DT
official	JJ
China	NNP
Daily	NNP
said	VBD
retail	JJ
prices	NNS
of	IN
non-staple	JJ
foods	NNS
have	VBP
n't	RB
risen	VBN
since	IN
last	JJ
December	NNP
but	CC
acknowledged	VBD
that	DT
huge	JJ
government	NN
subsidies	NNS
were	VBD
a	DT
main	JJ
factor	NN
in	IN
keeping	VBG
prices	NNS
down	IN
.	.

The	DT
State	NNP
Statistical	NNP
Bureau	NNP
found	VBD
that	IN
more	RBR
than	IN
1	CD
billion	CD
yuan	NN
(	(
$	$
270	CD
million	CD
)	)
was	VBD
spent	VBN
in	IN
the	DT
first	JJ
half	DT
of	IN
the	DT
year	NN
for	IN
pork	NN
subsidies	NNS
.	.

The	DT
newspaper	NN
quoted	VBD
experts	NNS
as	IN
saying	VBG
the	DT
subsidies	NNS
would	MD
cause	VB
the	DT
difference	NN
between	IN
prices	NNS
and	CC
real	JJ
values	NNS
of	IN
commodities	NNS
to	TO
``	``
become	VB
very	RB
unreasonable	JJ
''	''
and	CC
reduce	VB
needed	VBN
funds	NNS
for	IN
investment	NN
in	IN
the	DT
``	``
already	RB
difficult	JJ
state	NN
budget	NN
.	.
''	''

The	DT
aim	NN
of	IN
the	DT
austerity	NN
measures	NNS
was	VBD
to	TO
slice	VB
economic	JJ
growth	NN
,	,
which	WDT
soared	VBD
to	TO
20.7	CD
%	NN
last	JJ
year	NN
,	,
to	TO
8	CD
%	NN
in	IN
1990	CD
.	.

Economists	NNS
now	RB
predict	VBP
the	DT
growth	NN
rate	NN
will	MD
be	VB
about	IN
11.5	CD
%	NN
for	IN
the	DT
year	NN
.	.

In	IN
a	DT
sign	NN
of	IN
growing	VBG
official	JJ
tolerance	NN
for	IN
religion	NN
,	,
Russian	NNP
Orthodox	NNP
priests	NNS
were	VBD
allowed	VBN
to	TO
celebrate	VB
the	DT
400th	JJ
anniversary	NN
of	IN
the	DT
Moscow	NNP
patriarchate	NN
in	IN
the	DT
Kremlin	NNP
's	POS
15th-century	JJ
Uspensky	NNP
Cathedral	NNP
,	,
where	WRB
czars	NNS
were	VBD
crowned	VBN
...	:
.	.

A	DT
34-foot-tall	JJ
,	,
$	$
7.7	CD
million	CD
statue	NN
of	IN
Buddha	NNP
was	VBD
completed	VBN
on	IN
a	DT
hill	NN
outside	IN
Hong	NNP
Kong	NNP
,	,
facing	VBG
China	NNP
.	.

The	DT
statue	NN
is	VBZ
the	DT
brainchild	NN
of	IN
Sik	NNP
Chi	NNP
Wan	NNP
,	,
director	NN
of	IN
the	DT
Po	NNP
Lin	NNP
Monastery	NNP
,	,
who	WP
said	VBD
:	:
``	``
Hong	NNP
Kong	NNP
is	VBZ
such	JJ
a	DT
prosperous	JJ
place	NN
,	,
we	PRP
also	RB
need	VBP
some	DT
kind	NN
of	IN
religious	JJ
symbol	NN
.	.

It	PRP
all	DT
seemed	VBD
innocent	JJ
enough	RB
:	:
Last	JJ
April	NNP
,	,
one	CD
Steven	NNP
B.	NNP
Iken	NNP
visited	VBD
Justin	NNP
Products	NNPS
Inc.	NNP
here	RB
,	,
identified	VBD
himself	PRP
as	IN
a	DT
potential	JJ
customer	NN
and	CC
got	VBD
the	DT
word	NN
on	IN
the	DT
little	JJ
company	NN
's	POS
new	JJ
cassette	NN
players	NNS
for	IN
children	NNS
.	.

``	``
It	PRP
is	VBZ
almost	RB
identical	JJ
to	TO
the	DT
Sony	NNP
product	NN
,	,
''	''
Mr.	NNP
Iken	NNP
remarked	VBD
,	,
after	IN
seeing	VBG
prototypes	NNS
and	CC
pictures	NNS
.	.

Replied	VBD
a	DT
Justin	NNP
salesman	NN
:	:
``	``
Exactly	RB
.	.
''	''

The	DT
Justin	NNP
merchandise	NN
carried	VBD
wholesale	JJ
prices	NNS
some	DT
40	CD
%	NN
below	IN
those	DT
of	IN
Sony	NNP
Corp.	NNP
of	IN
Japan	NNP
's	POS
``	``
My	NNP
First	NNP
Sony	NNP
''	''
line	NN
.	.

The	DT
visitor	NN
waxed	VBD
enthusiastic	JJ
and	CC
promised	VBD
to	TO
return	VB
.	.

But	CC
instead	RB
of	IN
a	DT
new	JJ
customer	NN
--	:
part	NN
of	IN
a	DT
hoped-for	JJ
bonanza	NN
from	IN
underselling	VBG
Sony	NNP
--	:
Justin	NNP
got	VBD
a	DT
costly	JJ
legal	JJ
morass	NN
.	.

Mr.	NNP
Iken	NNP
,	,
it	PRP
turned	VBD
out	RP
,	,
was	VBD
a	DT
private	JJ
detective	NN
using	VBG
a	DT
hidden	VBN
tape	NN
recorder	NN
to	TO
gather	VB
information	NN
for	IN
Sony	NNP
.	.

His	PRP$
recording	NN
later	RB
turned	VBD
up	RP
as	IN
a	DT
court	NN
exhibit	NN
.	.

Seeking	VBG
to	TO
keep	VB
Justin	NNP
's	POS
``	``
My	NNP
Own	NNP
''	''
product	NN
line	NN
off	IN
the	DT
U.S.	NNP
market	NN
,	,
Sony	NNP
last	JJ
May	NNP
filed	VBD
a	DT
suit	NN
in	IN
Manhattan	NNP
federal	JJ
court	NN
accusing	VBG
the	DT
upstart	NN
of	IN
trademark	NN
infringement	NN
,	,
unfair	JJ
competition	NN
and	CC
other	JJ
violations	NNS
of	IN
business	NN
law	NN
.	.

Since	IN
then	RB
,	,
life	NN
has	VBZ
changed	VBN
a	DT
lot	NN
for	IN
61-year-old	JJ
Leonard	NNP
Kaye	NNP
,	,
Justin	NNP
's	POS
owner	NN
.	.

``	``
I	PRP
have	VBP
n't	RB
been	VBN
able	JJ
to	TO
get	VB
a	DT
decent	JJ
night	NN
's	POS
sleep	NN
since	IN
this	DT
has	VBZ
been	VBN
going	VBG
on	IN
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
It	PRP
's	VBZ
the	DT
most	RBS
distracting	VBG
thing	NN
in	IN
my	PRP$
life	NN
--	:
I	PRP
ca	MD
n't	RB
even	RB
attend	VB
to	TO
my	PRP$
business	NN
.	.
''	''

His	PRP$
company	NN
(	(
annual	JJ
sales	NNS
:	:
about	IN
$	$
25	CD
million	CD
)	)
may	MD
suffer	VB
a	DT
costly	JJ
blow	NN
--	:
losing	VBG
an	DT
estimated	VBN
10	CD
%	NN
of	IN
total	JJ
sales	NNS
--	:
if	IN
Sony	NNP
(	(
annual	JJ
sales	NNS
:	:
about	IN
$	$
16	CD
billion	CD
)	)
prevails	VBZ
.	.

Justin	NNP
's	POS
plight	NN
shows	VBZ
what	WP
can	MD
happen	VB
when	WRB
a	DT
tiny	JJ
company	NN
suddenly	RB
faces	VBZ
the	DT
full	JJ
legal	JJ
might	NN
of	IN
a	DT
wrathful	JJ
multinational	JJ
.	.

With	IN
considerable	JJ
irony	NN
,	,
the	DT
case	NN
also	RB
shows	VBZ
how	WRB
completely	RB
Japan	NNP
has	VBZ
turned	VBN
the	DT
tables	NNS
on	IN
U.S.	NNP
business	NN
.	.

Americans	NNPS
used	VBD
to	TO
complain	VB
bitterly	RB
about	IN
being	VBG
undersold	NN
by	IN
look-alike	JJ
products	NNS
from	IN
Japan	NNP
.	.

Now	RB
Sony	NNP
,	,
whose	WP$
innovative	JJ
,	,
premium-priced	JJ
products	NNS
are	VBP
among	IN
the	DT
most	RBS
admired	VBN
in	IN
consumer	NN
electronics	NNS
,	,
is	VBZ
bitterly	RB
complaining	VBG
about	IN
a	DT
little	JJ
U.S.	NNP
firm	NN
with	IN
a	DT
cheap	JJ
look-alike	NN
produced	VBN
in	IN
China	NNP
.	.

``	``
The	DT
gist	NN
of	IN
this	DT
is	VBZ
that	DT
Justin	NNP
knocked	VBD
off	RP
the	DT
Sony	NNP
line	NN
and	CC
Sony	NNP
wants	VBZ
to	TO
stop	VB
it	PRP
,	,
''	''
says	VBZ
Lewis	NNP
H.	NNP
Eslinger	NNP
,	,
Sony	NNP
's	POS
attorney	NN
,	,
who	WP
previously	RB
guarded	VBD
Rubik	NNP
's	POS
Cube	NNP
.	.

(	(
Sony	NNP
itself	PRP
declines	VBZ
to	TO
comment	VB
.	.
)	)

If	IN
Sony	NNP
wins	VBZ
,	,
Mr.	NNP
Eslinger	NNP
says	VBZ
,	,
its	PRP$
little	JJ
rival	NN
will	MD
have	VB
to	TO
try	VB
to	TO
sell	VB
the	DT
products	NNS
overseas	RB
.	.

At	IN
worst	JJS
,	,
he	PRP
adds	VBZ
,	,
``	``
They	PRP
'd	MD
have	VB
to	TO
grind	VB
them	PRP
all	DT
up	IN
and	CC
throw	VB
them	PRP
away	RB
.	.
''	''

Mr.	NNP
Kaye	NNP
denies	VBZ
the	DT
suit	NN
's	POS
charges	NNS
and	CC
says	VBZ
his	PRP$
only	JJ
mistake	NN
was	VBD
taking	VBG
on	RP
Sony	NNP
in	IN
the	DT
marketplace	NN
.	.

``	``
I	PRP
made	VBD
a	DT
similar	JJ
line	NN
and	CC
I	PRP
produced	VBD
it	PRP
cheaper	JJR
,	,
''	''
he	PRP
says	VBZ
.	.

Today	NN
,	,
U.S.	NNP
Judge	NNP
John	NNP
E.	NNP
Sprizzo	NNP
is	VBZ
expected	VBN
to	TO
rule	VB
on	IN
Sony	NNP
's	POS
renewed	VBN
request	NN
for	IN
a	DT
pre-trial	JJ
order	NN
blocking	VBG
sale	NN
of	IN
the	DT
disputed	VBN
products	NNS
,	,
on	IN
which	WDT
deliveries	NNS
began	VBD
in	IN
July	NNP
.	.

The	DT
judge	NN
turned	VBD
down	RP
an	DT
earlier	JJR
Sony	NNP
request	NN
for	IN
such	PDT
an	DT
order	NN
--	:
a	DT
decision	NN
upheld	VBN
on	IN
appeal	NN
--	:
but	CC
Sony	NNP
returned	VBD
with	IN
additional	JJ
evidence	NN
and	CC
arguments	NNS
.	.

Though	IN
hoping	VBG
to	TO
settle	VB
the	DT
case	NN
,	,
Justin	NNP
vows	VBZ
to	TO
fight	VB
on	IN
,	,
if	IN
necessary	JJ
.	.

But	CC
the	DT
battle	NN
is	VBZ
more	JJR
than	IN
Justin	NNP
bargained	VBD
for	IN
.	.

``	``
I	PRP
had	VBD
no	DT
idea	NN
I	PRP
was	VBD
getting	VBG
in	IN
so	RB
deep	JJ
,	,
''	''
says	VBZ
Mr.	NNP
Kaye	NNP
,	,
who	WP
founded	VBD
Justin	NNP
in	IN
1982	CD
.	.

Mr.	NNP
Kaye	NNP
had	VBD
sold	VBN
Capetronic	NNP
Inc.	NNP
,	,
a	DT
Taiwan	NNP
electronics	NNS
maker	NN
,	,
and	CC
retired	VBD
,	,
only	RB
to	TO
find	VB
he	PRP
was	VBD
bored	VBN
.	.

With	IN
Justin	NNP
,	,
he	PRP
began	VBD
selling	VBG
toys	NNS
and	CC
electronics	NNS
made	VBN
mostly	RB
in	IN
Hong	NNP
Kong	NNP
,	,
beginning	NN
with	IN
Mickey	NNP
Mouse	NNP
radios	NNS
.	.

The	DT
company	NN
has	VBZ
grown	VBN
--	:
to	TO
about	IN
40	CD
employees	NNS
,	,
from	IN
four	CD
initially	RB
,	,
Mr.	NNP
Kaye	NNP
says	VBZ
.	.

Justin	NNP
has	VBZ
been	VBN
profitable	JJ
since	IN
1986	CD
,	,
adds	VBZ
the	DT
official	NN
,	,
who	WP
shares	VBZ
his	PRP$
office	NN
with	IN
numerous	JJ
teddy	NN
bears	VBZ
,	,
all	DT
samples	NNS
from	IN
his	PRP$
line	NN
of	IN
plush	JJ
toys	NNS
.	.

Like	IN
many	JJ
others	NNS
,	,
Mr.	NNP
Kaye	NNP
took	VBD
notice	NN
in	IN
1987	CD
when	WRB
Sony	NNP
,	,
in	IN
a	DT
classic	JJ
example	NN
of	IN
market	NN
segmentation	NN
,	,
changed	VBD
the	DT
plastic	JJ
skin	NN
and	CC
buttons	NNS
on	IN
the	DT
famous	JJ
Walkman	NNP
line	NN
of	IN
portable	JJ
audio	JJ
equipment	NN
and	CC
created	VBD
the	DT
My	NNP
First	NNP
Sony	NNP
line	NN
for	IN
children	NNS
.	.

The	DT
brightly	RB
colored	VBN
new	JJ
products	NNS
looked	VBD
more	JJR
like	IN
toys	NNS
than	IN
the	DT
adult	NN
models	NNS
.	.

(	(
In	IN
court	NN
papers	NNS
,	,
Sony	NNP
says	VBZ
it	PRP
has	VBZ
spent	VBN
more	RBR
than	IN
$	$
3	CD
million	CD
to	TO
promote	VB
the	DT
line	NN
,	,
with	IN
resulting	VBG
sales	NNS
of	IN
over	IN
a	DT
million	CD
units	NNS
.	.
)	)

Sony	NNP
found	VBD
a	DT
new	JJ
market	NN
niche	NN
,	,
but	CC
Mr.	NNP
Kaye	NNP
figured	VBD
that	IN
its	PRP$
prices	NNS
left	VBD
plenty	NN
of	IN
room	NN
for	IN
a	DT
lower-priced	JJ
competitor	NN
.	.

His	PRP$
products	NNS
are	VBP
n't	RB
exact	JJ
copies	NNS
of	IN
Sony	NNP
's	POS
but	CC
strongly	RB
resemble	VBP
them	PRP
in	IN
size	NN
,	,
shape	NN
and	CC
,	,
especially	RB
,	,
color	NN
.	.

Sony	NNP
uses	VBZ
mostly	RB
red	JJ
and	CC
blue	JJ
,	,
with	IN
traces	NNS
of	IN
yellow	JJ
--	:
and	CC
so	RB
does	VBZ
Justin	NNP
,	,
on	IN
the	DT
theory	NN
that	IN
kids	NNS
prefer	VBP
these	DT
colors	NNS
.	.

(	(
``	``
To	NN
be	VB
successful	JJ
,	,
a	DT
product	NN
can	MD
be	VB
any	DT
color	NN
whatsoever	RB
,	,
as	RB
long	RB
as	IN
it	PRP
is	VBZ
fire-engine	JJ
red	JJ
,	,
''	''
says	VBZ
Charles	NNP
E.	NNP
Baxley	NNP
,	,
Justin	NNP
's	POS
attorney	NN
.	.
)	)

By	IN
last	JJ
winter	NN
,	,
Justin	NNP
was	VBD
showing	VBG
prototypes	NNS
at	IN
toy	JJ
fairs	NNS
in	IN
Hong	NNP
Kong	NNP
and	CC
New	NNP
York	NNP
--	:
and	CC
Sony	NNP
noticed	VBD
.	.

Indeed	RB
,	,
concerned	VBD
that	IN
Sony	NNP
sales	NNS
personnel	NNS
were	VBD
threatening	VBG
legal	JJ
action	NN
or	CC
other	JJ
retaliation	NN
--	:
such	JJ
as	IN
withholding	VBG
desirable	JJ
Sony	NNP
products	NNS
--	:
against	IN
Justin	NNP
's	POS
customers	NNS
,	,
Mr.	NNP
Baxley	NNP
fired	VBD
off	RP
a	DT
letter	NN
to	TO
Sony	NNP
in	IN
April	NNP
.	.

He	PRP
himself	PRP
threatened	VBD
to	TO
take	VB
the	DT
matter	NN
to	TO
the	DT
Federal	NNP
Trade	NNP
Commission	NNP
or	CC
U.S.	NNP
Justice	NNP
Department	NNP
.	.

But	CC
Justin	NNP
has	VBZ
n't	RB
pursued	VBN
those	DT
charges	NNS
(	(
which	WDT
were	VBD
without	IN
merit	NN
,	,
according	VBG
to	TO
Mr.	NNP
Eslinger	NNP
,	,
the	DT
Sony	NNP
attorney	NN
)	)
.	.

Recalls	VBZ
Mr.	NNP
Baxley	NNP
:	:
``	``
Our	PRP$
purpose	NN
was	VBD
to	TO
influence	VB
them	PRP
to	TO
leave	VB
us	PRP
alone	RB
.	.

We	PRP
never	RB
intended	VBD
taking	VBG
on	RP
Sony	NNP
--	:
we	PRP
do	VBP
n't	RB
have	VB
the	DT
resources	NNS
.	.
''	''

Sony	NNP
answered	VBD
the	DT
empty	JJ
threat	NN
with	IN
its	PRP$
real	JJ
suit	NN
.	.

Off	IN
and	CC
on	IN
since	IN
then	RB
,	,
the	DT
companies	NNS
have	VBP
skirmished	VBN
in	IN
court	NN
.	.

And	CC
Justin	NNP
,	,
in	IN
a	DT
news	NN
release	NN
,	,
says	VBZ
,	,
``	``
Once	RB
competitive	JJ
,	,
Sony	NNP
now	RB
resorts	VBZ
to	TO
strong-arm	JJ
tactics	NNS
in	IN
American	JJ
courtrooms	NNS
to	TO
carve	VB
out	RP
and	CC
protect	VB
niche	NN
markets	NNS
.	.
''	''

Sony	NNP
's	POS
lawyer	NN
insists	VBZ
that	IN
the	DT
company	NN
's	POS
tactics	NNS
--	:
including	VBG
the	DT
use	NN
of	IN
a	DT
private	JJ
detective	NN
posing	VBG
as	IN
a	DT
buyer	NN
--	:
are	VBP
routine	JJ
in	IN
such	JJ
matters	NNS
.	.

He	PRP
also	RB
insists	VBZ
that	IN
Sony	NNP
,	,
no	RB
less	JJR
than	IN
others	NNS
,	,
has	VBZ
a	DT
legal	JJ
right	NN
to	TO
protect	VB
its	PRP$
``	``
trade	NN
dress	NN
,	,
''	''
in	IN
this	DT
case	NN
,	,
mostly	RB
the	DT
colors	NNS
that	IN
it	PRP
claims	VBZ
make	VB
My	NNP
First	NNP
Sony	NNP
products	NNS
distinctive	JJ
.	.

(	(
Justin	NNP
claims	VBZ
it	PRP
began	VBD
using	VBG
the	DT
same	JJ
colors	NNS
on	IN
electronic	JJ
goods	NNS
for	IN
children	NNS
long	JJ
before	IN
Sony	NNP
entered	VBD
the	DT
children	NNS
's	POS
market	NN
.	.
)	)

Whatever	WDT
its	PRP$
merits	NNS
,	,
Sony	NNP
's	POS
aggressive	JJ
defense	NN
is	VBZ
debilitating	JJ
for	IN
Justin	NNP
.	.

It	PRP
's	VBZ
also	RB
costly	JJ
.	.

Mr.	NNP
Kaye	NNP
says	VBZ
he	PRP
has	VBZ
paid	VBN
more	RBR
than	IN
$	$
70,000	CD
in	IN
legal	JJ
fees	NNS
so	RB
far	RB
.	.

Of	IN
Sony	NNP
,	,
Mr.	NNP
Kaye	NNP
says	VBZ
:	:
``	``
They	PRP
know	VBP
there	EX
's	VBZ
no	DT
way	NN
for	IN
them	PRP
to	TO
lose	VB
.	.

They	PRP
just	RB
keep	VBP
digging	VBG
me	PRP
in	IN
deeper	JJR
until	IN
I	PRP
reach	VBP
the	DT
point	NN
where	WRB
I	PRP
give	VBP
up	IN
and	CC
go	VBP
away	RB
.	.
''	''

For	IN
now	RB
,	,
though	RB
,	,
he	PRP
vows	VBZ
to	TO
hang	VB
in	IN
.	.

@	IN
Charles	NNP
H.	NNP
Tenney	NNP
II	NNP
,	,
chairman	NN
of	IN
Unitil	NNP
Corp.	NNP
,	,
purchased	VBD
34,602	CD
shares	NNS
,	,
or	CC
4.9	CD
%	NN
,	,
of	IN
Unitil	NNP
's	POS
common	NN
,	,
according	VBG
to	TO
a	DT
filing	NN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
.	.

The	DT
stock	NN
was	VBD
bought	VBN
on	IN
Thursday	NNP
in	IN
a	DT
privately	RB
negotiated	VBN
transaction	NN
,	,
the	DT
filing	NN
said	VBD
.	.

As	IN
previously	RB
reported	VBN
,	,
Unitil	NNP
,	,
Exeter	NNP
,	,
N.H.	NNP
,	,
and	CC
Fitchburg	NNP
Gas	NNP
&	CC
Electric	NNP
Co.	NNP
,	,
Fitchburg	NNP
,	,
Mass.	NNP
,	,
are	VBP
targets	NNS
of	IN
unsolicited	JJ
tender	NN
offers	VBZ
from	IN
Boston-based	JJ
Eastern	NNP
Utilities	NNPS
Associates	NNPS
.	.

Eastern	NNP
Utilities	NNPS
has	VBZ
offered	VBN
$	$
40	CD
a	DT
share	NN
for	IN
Unitil	NNP
and	CC
$	$
36	CD
a	DT
share	NN
for	IN
Fitchburg	NNP
Gas	NNP
and	CC
has	VBZ
extended	VBN
both	DT
offers	NNS
to	TO
Dec.	NNP
4	CD
.	.

Both	DT
companies	NNS
rejected	VBD
the	DT
offers	NNS
.	.

Dresdner	NNP
Bank	NNP
AG	NNP
of	IN
West	NNP
Germany	NNP
has	VBZ
announced	VBN
a	DT
friendly	JJ
tender	NN
offer	NN
for	IN
control	NN
of	IN
Banque	NNP
Internationale	NNP
de	IN
Placements	NNP
,	,
a	DT
French	JJ
bank	NN
whose	WP$
main	JJ
shareholder	NN
is	VBZ
France	NNP
's	POS
Societe	NNP
Generale	NNP
,	,
the	DT
Societe	NNP
de	FW
Bourses	NNP
Francaises	NNP
said	VBD
.	.

The	DT
tender	NN
offer	NN
by	IN
West	NNP
Germany	NNP
's	POS
second-biggest	JJ
commercial	JJ
bank	NN
is	VBZ
in	IN
two	CD
stages	NNS
.	.

Dresdner	NNP
is	VBZ
offering	VBG
to	TO
acquire	VB
32.99	CD
%	NN
of	IN
BIP	NNP
's	POS
capital	NN
for	IN
1,015	CD
francs	NNS
(	(
$	$
156.82	CD
)	)
a	DT
share	NN
.	.

The	DT
terms	NNS
of	IN
the	DT
offer	NN
put	VBD
a	DT
value	NN
of	IN
528	CD
million	CD
francs	NNS
(	(
$	$
81.6	CD
million	CD
)	)
on	IN
the	DT
32.99	CD
%	NN
shareholding	NN
.	.

The	DT
Societe	NNP
Generale	NNP
banking	NN
group	NN
controls	VBZ
18.2	CD
%	NN
of	IN
the	DT
shareholding	NN
,	,
while	IN
Societe	NNP
Generale	NNP
de	FW
Belgique	NNP
S.A.	NNP
owns	VBZ
9.69	CD
%	NN
and	CC
Financiere	NNP
Tradition	NNP
,	,
a	DT
holding	VBG
company	NN
,	,
owns	VBZ
5.1	CD
%	NN
.	.

Mexican	JJ
investor	NN
Joel	NNP
Rocha	NNP
Garza	NNP
said	VBD
he	PRP
sold	VBD
a	DT
block	NN
of	IN
600,000	CD
shares	NNS
of	IN
Smith	NNP
Laboratories	NNPS
Inc.	NNP
common	JJ
stock	NN
to	TO
companies	NNS
affiliated	VBN
with	IN
him	PRP
.	.

In	IN
a	DT
filing	NN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
,	,
Mr.	NNP
Rocha	NNP
Garza	NNP
said	VBD
Biscayne	NNP
Syndicate	NNP
Inc.	NNP
,	,
Lahus	NNP
II	NNP
Inc.	NNP
,	,
and	CC
Lahus	NNP
III	NNP
Inc.	NNP
bought	VBD
the	DT
600,000	CD
shares	NNS
on	IN
Oct.	NNP
11	CD
for	IN
$	$
1.4	CD
million	CD
,	,
or	CC
$	$
2.375	CD
a	DT
share	NN
.	.

Mr.	NNP
Rocha	NNP
Garza	NNP
said	VBD
that	IN
he	PRP
,	,
Clarendon	NNP
Group	NNP
Ltd.	NNP
,	,
Biscayne	NNP
,	,
Lahus	NNP
II	NNP
,	,
and	CC
Lahus	NNP
III	NNP
are	VBP
all	RB
affiliated	VBN
and	CC
hold	VBP
a	DT
combined	VBN
stake	NN
of	IN
1,234,100	CD
shares	NNS
,	,
or	CC
9.33	CD
%	NN
.	.

Mr.	NNP
Rocha	NNP
Garza	NNP
has	VBZ
said	VBN
he	PRP
wants	VBZ
to	TO
purchase	VB
more	JJR
shares	NNS
.	.

In	IN
San	NNP
Diego	NNP
,	,
Smith	NNP
Laboratories	NNPS
President	NNP
Timothy	NNP
Wollaeger	NNP
said	VBD
the	DT
transfer	NN
of	IN
the	DT
shares	NNS
is	VBZ
n't	RB
significant	JJ
.	.

Investcorp	NNP
,	,
New	NNP
York	NNP
,	,
said	VBD
it	PRP
and	CC
the	DT
management	NN
of	IN
Sports	NNPS
&	CC
Recreation	NNP
Inc.	NNP
bought	VBD
the	DT
operator	NN
of	IN
the	DT
10-store	JJ
Sports	NNPS
Unlimited	NNP
chain	NN
for	IN
some	DT
$	$
40	CD
million	CD
.	.

The	DT
investment	NN
bank	NN
becomes	VBZ
majority	NN
shareholder	NN
in	IN
Sports	NNPS
&	CC
Recreation	NNP
,	,
a	DT
10-year-old	JJ
sporting	NN
goods	NNS
retailer	NN
,	,
said	VBD
Oliver	NNP
E.	NNP
Richardson	NNP
,	,
a	DT
member	NN
of	IN
Investcorp	NNP
's	POS
management	NN
committee	NN
and	CC
a	DT
director	NN
of	IN
the	DT
chain	NN
.	.

Sports	NNPS
Unlimited	NNP
,	,
Tampa	NNP
,	,
Fla.	NNP
,	,
posted	VBD
revenue	NN
of	IN
$	$
59	CD
million	CD
for	IN
the	DT
year	NN
ended	VBD
July	NNP
31	CD
.	.

The	DT
company	NN
is	VBZ
``	``
very	RB
profitable	JJ
''	''
on	IN
an	DT
operating	VBG
basis	NN
,	,
Mr.	NNP
Richardson	NNP
said	VBD
,	,
but	CC
he	PRP
declined	VBD
to	TO
specify	VB
numbers	NNS
.	.

In	IN
1982	CD
,	,
Sports	NNPS
&	CC
Recreation	NNP
's	POS
managers	NNS
and	CC
certain	JJ
passive	JJ
investors	NNS
purchased	VBD
the	DT
company	NN
from	IN
Brunswick	NNP
Corp.	NNP
of	IN
Skokie	NNP
,	,
Ill	NNP
.	.

In	IN
the	DT
latest	JJS
transaction	NN
,	,
management	NN
bought	VBD
out	RP
the	DT
passive	JJ
investors	NNS
'	POS
holding	NN
,	,
Mr.	NNP
Richardson	NNP
said	VBD
.	.

Hammond	NNP
Co.	NNP
,	,
Newport	NNP
Beach	NNP
,	,
Calif.	NNP
,	,
said	VBD
Fidelity	NNP
National	NNP
Financial	NNP
Inc.	NNP
extended	VBD
its	PRP$
previous	JJ
agreement	NN
,	,
under	IN
which	WDT
it	PRP
wo	MD
n't	RB
purchase	VB
any	DT
more	JJR
of	IN
the	DT
mortgage	NN
banker	NN
's	POS
common	JJ
stock	NN
,	,
through	IN
Oct.	NNP
31	CD
.	.

The	DT
previous	JJ
agreement	NN
expired	VBD
Thursday	NNP
.	.

Hammond	NNP
said	VBD
that	IN
its	PRP$
discussions	NNS
with	IN
Fidelity	NNP
,	,
an	DT
Irvine	NNP
,	,
Calif.	NNP
,	,
title-insurance	NN
underwriter	NN
,	,
are	VBP
continuing	VBG
,	,
but	CC
that	IN
prospects	NNS
for	IN
a	DT
longer-term	JJ
standstill	NN
agreement	NN
are	VBP
uncertain	JJ
.	.

Fidelity	NNP
has	VBZ
increased	VBN
its	PRP$
stake	NN
in	IN
Hammond	NNP
to	TO
23.57	CD
%	NN
in	IN
recent	JJ
months	NNS
.	.

Statements	NNS
made	VBN
in	IN
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
filings	NNS
led	VBD
Hammond	NNP
to	TO
request	VB
a	DT
standstill	JJ
agreement	NN
.	.

Giant	NNP
Group	NNP
Ltd.	NNP
said	VBD
it	PRP
terminated	VBD
negotiations	NNS
for	IN
the	DT
purchase	NN
of	IN
Aspen	NNP
Airways	NNPS
,	,
a	DT
Denver-based	JJ
regional	JJ
carrier	NN
that	WDT
operates	VBZ
the	DT
United	NNP
Express	NNP
connector	NN
service	NN
under	IN
contract	NN
to	TO
UAL	NNP
Corp.	NNP
's	POS
United	NNP
Airlines	NNPS
.	.

Giant	NNP
,	,
a	DT
Beverly	NNP
Hills	NNPS
,	,
Calif.	NNP
,	,
collection	NN
of	IN
companies	NNS
that	WDT
is	VBZ
controlled	VBN
by	IN
Hollywood	NNP
producer	NN
Burt	NNP
Sugarman	NNP
,	,
did	VBD
n't	RB
give	VB
a	DT
reason	NN
for	IN
halting	VBG
its	PRP$
plan	NN
to	TO
acquire	VB
the	DT
airline	NN
,	,
and	CC
Aspen	NNP
officials	NNS
could	MD
n't	RB
be	VB
reached	VBN
for	IN
comment	NN
.	.

Giant	NNP
agreed	VBD
last	JJ
month	NN
to	TO
purchase	VB
the	DT
carrier	NN
.	.

Giant	NNP
has	VBZ
n't	RB
ever	RB
disclosed	VBN
the	DT
proposed	VBN
price	NN
,	,
although	IN
Avmark	NNP
Inc.	NNP
,	,
an	DT
Arlington	NNP
,	,
Va.-based	JJ
aircraft	NN
consulting	VBG
concern	NN
,	,
has	VBZ
valued	VBN
Aspen	NNP
's	POS
fleet	NN
at	IN
about	IN
$	$
46	CD
million	CD
.	.

The	DT
airline	NN
would	MD
have	VB
become	VBN
the	DT
latest	JJS
in	IN
a	DT
peculiar	JJ
blend	NN
of	IN
Giant	NNP
companies	NNS
,	,
which	WDT
are	VBP
involved	VBN
in	IN
making	VBG
cement	NN
,	,
recycling	VBG
newsprint	NN
and	CC
operating	VBG
fast-food	NN
restaurants	NNS
.	.

The	DT
state-controlled	JJ
insurer	NN
Assurances	NNP
Generales	NNP
de	FW
France	NNP
said	VBD
it	PRP
has	VBZ
obtained	VBN
regulatory	JJ
approval	NN
to	TO
increase	VB
its	PRP$
stake	NN
in	IN
the	DT
financial	JJ
holding	VBG
company	NN
Cie.	NNP
de	FW
Navigation	NNP
Mixte	NNP
above	IN
10	CD
%	NN
from	IN
the	DT
current	JJ
level	NN
of	IN
about	IN
8	CD
%	NN
.	.

Friday	NNP
's	POS
approval	NN
was	VBD
needed	VBN
to	TO
conform	VB
with	IN
Bourse	NNP
rules	NNS
regarding	VBG
companies	NNS
with	IN
bank	NN
interests	NNS
and	CC
follows	VBZ
a	DT
similar	JJ
approval	NN
given	VBN
Wednesday	NNP
to	TO
Cie	NNP
.	.
Financiere	NNP
de	IN
Paribas	NNP
.	.

Both	DT
Paribas	NNP
and	CC
AGF	NNP
have	VBP
been	VBN
increasing	VBG
their	PRP$
stakes	NNS
in	IN
Navigation	NNP
Mixte	NNP
recently	RB
for	IN
what	WP
they	PRP
have	VBP
termed	VBN
``	``
investment	NN
purposes	NNS
,	,
''	''
although	IN
the	DT
issue	NN
has	VBZ
been	VBN
surrounded	VBN
by	IN
takeover	NN
speculation	NN
in	IN
recent	JJ
weeks	NNS
.	.

AGF	NNP
did	VBD
n't	RB
comment	VB
officially	RB
on	IN
its	PRP$
reasons	NNS
for	IN
seeking	VBG
the	DT
approval	NN
,	,
but	CC
people	NNS
close	JJ
to	TO
the	DT
group	NN
said	VBD
it	PRP
was	VBD
done	VBN
to	TO
make	VB
sure	JJ
the	DT
group	NN
would	MD
have	VB
the	DT
flexibility	NN
to	TO
increase	VB
its	PRP$
stake	NN
in	IN
the	DT
future	NN
,	,
should	MD
interesting	JJ
price	NN
opportunities	NNS
arise	VB
.	.

An	DT
AGF	NNP
official	NN
did	VBD
specify	VB
,	,
however	RB
,	,
that	IN
there	EX
was	VBD
no	DT
foundation	NN
to	TO
recent	JJ
rumors	NNS
the	DT
group	NN
might	MD
be	VB
acting	VBG
in	IN
concert	NN
with	IN
Paribas	NNP
.	.

Lockheed	NNP
Aeronautical	NNP
Systems	NNPS
Co.	NNP
,	,
a	DT
unit	NN
of	IN
Lockheed	NNP
Corp.	NNP
,	,
said	VBD
it	PRP
agreed	VBD
to	TO
join	VB
with	IN
Aermacchi	NNP
S.p	NNP
.	.
A.	NNP
of	IN
Varese	NNP
,	,
Italy	NNP
,	,
to	TO
propose	VB
a	DT
new	JJ
generation	NN
of	IN
jet	NN
trainers	NNS
for	IN
the	DT
U.S.	NNP
Air	NNP
Force	NNP
.	.

The	DT
Air	NNP
Force	NNP
is	VBZ
looking	VBG
to	TO
buy	VB
540	CD
new	JJ
primary	JJ
jet	NN
trainers	NNS
,	,
with	IN
a	DT
total	JJ
value	NN
of	IN
$	$
1.5	CD
billion	CD
to	TO
$	$
2	CD
billion	CD
,	,
between	IN
1994	CD
and	CC
2004	CD
.	.

The	DT
aircraft	NN
would	MD
replace	VB
the	DT
T-37	NN
,	,
made	VBN
by	IN
the	DT
Cessna	NNP
Aircraft	NNP
Co.	NNP
unit	NN
of	IN
General	NNP
Dynamics	NNPS
Corp.	NNP
,	,
which	WDT
the	DT
Air	NNP
Force	NNP
uses	VBZ
to	TO
train	VB
jet	NN
pilots	NNS
.	.

Lockheed	NNP
said	VBD
the	DT
U.S.	NNP
Navy	NNP
may	MD
also	RB
buy	VB
an	DT
additional	JJ
340	CD
trainer	NN
aircraft	NN
to	TO
replace	VB
its	PRP$
T34C	CD
trainers	NNS
made	VBN
by	IN
the	DT
Beech	NNP
Aircraft	NNP
Corp.	NNP
unit	NN
of	IN
Raytheon	NNP
Corp	NNP
.	.

Under	IN
the	DT
agreement	NN
with	IN
Lockheed	NNP
,	,
Aermacchi	NNP
will	MD
license	VB
Lockheed	NNP
to	TO
build	VB
the	DT
Aermacchi	NNP
MB-339	NNP
jet	NN
tandem-trainer	NN
and	CC
will	MD
supply	VB
certain	JJ
structures	NNS
.	.

Lockheed	NNP
will	MD
build	VB
additional	JJ
structures	NNS
and	CC
perform	VB
final	JJ
assembly	NN
of	IN
the	DT
tandem-seat	JJ
trainer	NN
at	IN
its	PRP$
Marietta	NNP
,	,
Ga.	NNP
,	,
plant	NN
should	MD
the	DT
Air	NNP
Force	NNP
order	VB
the	DT
craft	NN
.	.

A	DT
Lockheed	NNP
spokesman	NN
in	IN
Burbank	NNP
,	,
Calif.	NNP
,	,
said	VBD
he	PRP
was	VBD
n't	RB
aware	JJ
of	IN
which	WDT
other	JJ
companies	NNS
would	MD
be	VB
competing	VBG
for	IN
the	DT
Air	NNP
Force	NNP
contract	NN
.	.

Striking	JJ
auto	NN
workers	NNS
ended	VBD
their	PRP$
19-day	JJ
occupation	NN
of	IN
a	DT
metal	NN
shop	NN
at	IN
a	DT
Peugeot	NNP
S.A.	NNP
factory	NN
in	IN
eastern	JJ
France	NNP
Friday	NNP
as	IN
pay	NN
talks	NNS
got	VBD
under	IN
way	NN
in	IN
the	DT
capital	NN
.	.

But	CC
the	DT
Peugeot	NNP
breakthrough	NN
came	VBD
as	IN
a	DT
nationwide	JJ
dispute	NN
by	IN
Finance	NNP
Ministry	NNP
employees	NNS
disrupted	VBD
border	NN
checkpoints	NNS
and	CC
threatened	VBD
the	DT
government	NN
's	POS
ability	NN
to	TO
pay	VB
its	PRP$
bills	NNS
.	.

The	DT
Peugeot	NNP
metalworkers	NNS
began	VBD
filing	VBG
out	IN
of	IN
the	DT
shop	NN
,	,
which	WDT
makes	VBZ
auto	NN
parts	NNS
,	,
at	IN
the	DT
plant	NN
in	IN
Mulhouse	NNP
after	IN
voting	VBG
589	CD
to	TO
193	CD
to	TO
abandon	VB
the	DT
occupation	NN
.	.

Their	PRP$
withdrawal	NN
was	VBD
based	VBN
on	IN
promises	NNS
by	IN
Peugeot	NNP
to	TO
open	VB
negotiations	NNS
in	IN
Paris	NNP
at	IN
the	DT
same	JJ
time	NN
the	DT
last	JJ
man	NN
left	VBD
the	DT
premises	NNS
.	.

The	DT
strike	NN
by	IN
customs	NNS
officers	NNS
,	,
tax	NN
collectors	NNS
,	,
treasury	NN
workers	NNS
and	CC
other	JJ
civil	JJ
servants	NNS
attached	VBN
to	TO
the	DT
Ministry	NNP
of	IN
Finance	NNP
may	MD
pose	VB
a	DT
more	RBR
serious	JJ
challenge	NN
to	TO
the	DT
government	NN
and	CC
the	DT
average	JJ
Frenchman	NNP
.	.

Ministry	NNP
employees	NNS
complain	VBP
that	IN
they	PRP
are	VBP
poorly	RB
paid	VBN
because	IN
of	IN
a	DT
complex	JJ
job-rating	JJ
system	NN
they	PRP
say	VBP
fails	VBZ
to	TO
take	VB
into	IN
account	NN
their	PRP$
education	NN
and	CC
level	NN
of	IN
technical	JJ
expertise	NN
.	.

The	DT
market	NN
for	IN
$	$
200	CD
billion	CD
of	IN
high-risk	JJ
junk	NN
bonds	NNS
,	,
battered	VBN
by	IN
a	DT
succession	NN
of	IN
defaults	NNS
and	CC
huge	JJ
price	NN
declines	NNS
this	DT
year	NN
,	,
practically	RB
vanished	VBD
Friday	NNP
.	.

Trading	NN
ground	VBD
to	TO
a	DT
halt	NN
as	IN
investors	NNS
rushed	VBD
to	TO
sell	VB
bonds	NNS
,	,
only	RB
to	TO
find	VB
themselves	PRP
deserted	VBN
by	IN
potential	JJ
buyers	NNS
.	.

Stunned	VBN
,	,
they	PRP
watched	VBD
brokerage	NN
houses	NNS
mark	VB
down	IN
price	NN
quotations	NNS
on	IN
their	PRP$
junk	NN
holdings	NNS
while	IN
being	VBG
able	JJ
to	TO
execute	VB
very	RB
few	JJ
actual	JJ
trades	NNS
.	.

``	``
The	DT
junk	NN
bond	NN
market	NN
is	VBZ
in	IN
a	DT
state	NN
of	IN
gridlock	NN
now	RB
--	:
there	EX
are	VBP
no	DT
bids	NNS
,	,
only	RB
offers	NNS
,	,
''	''
says	VBZ
independent	JJ
investor	NN
Martin	NNP
D.	NNP
Sass	NNP
,	,
who	WP
manages	VBZ
nearly	RB
$	$
4	CD
billion	CD
and	CC
who	WP
recently	RB
decided	VBD
to	TO
buy	VB
distressed	JJ
securities	NNS
for	IN
a	DT
new	JJ
fund	NN
.	.

This	DT
calamity	NN
is	VBZ
``	``
far	RB
from	IN
over	IN
,	,
''	''
he	PRP
says	VBZ
.	.

Junk	NN
's	POS
collapse	NN
helped	VBD
stoke	VB
the	DT
panicky	JJ
selling	NN
of	IN
stocks	NNS
that	WDT
produced	VBD
the	DT
deepest	JJS
one-day	JJ
dive	NN
in	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
since	IN
the	DT
Oct.	NNP
19	CD
,	,
1987	CD
,	,
crash	NN
.	.

Simultaneously	RB
,	,
it	PRP
also	RB
helped	VBD
trigger	VB
this	DT
year	NN
's	POS
biggest	JJS
rally	NN
in	IN
the	DT
U.S.	NNP
government	NN
bond	NN
market	NN
as	IN
investors	NNS
rushed	VBD
to	TO
move	VB
capital	NN
into	IN
the	DT
highest-quality	NN
securities	NNS
they	PRP
could	MD
find	VB
.	.

But	CC
``	``
an	DT
eerie	JJ
silence	NN
pervaded	VBD
''	''
the	DT
junk	NN
market	NN
Friday	NNP
as	IN
prices	NNS
tumbled	VBD
on	IN
hundreds	NNS
of	IN
high-yield	JJ
bonds	NNS
despite	IN
``	``
no	DT
active	JJ
trading	NN
,	,
''	''
says	VBZ
John	NNP
Lonski	NNP
,	,
an	DT
economist	NN
at	IN
Moody	NNP
's	POS
Investors	NNPS
Service	NNP
Inc	NNP
.	.

For	IN
example	NN
,	,
the	DT
price	NN
of	IN
Southland	NNP
Corp.	NNP
's	POS
$	$
500	CD
million	CD
of	IN
16	CD
3\/4	CD
%	NN
bonds	NNS
due	JJ
2002	CD
--	:
sold	VBD
less	JJR
than	IN
two	CD
years	NNS
ago	IN
by	IN
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co.	NNP
--	:
plummeted	VBD
25	CD
%	NN
to	TO
just	RB
30	CD
cents	NNS
on	IN
the	DT
dollar	NN
.	.

But	CC
not	RB
even	RB
Goldman	NNP
would	MD
make	VB
a	DT
market	NN
in	IN
the	DT
securities	NNS
of	IN
Southland	NNP
,	,
the	DT
owner	NN
of	IN
the	DT
nationwide	JJ
chain	NN
of	IN
7-11	CD
convenience	NN
stores	NNS
that	WDT
is	VBZ
strapped	VBN
for	IN
cash	NN
.	.

Goldman	NNP
officials	NNS
declined	VBD
to	TO
comment	VB
.	.

Junk	NN
bonds	NNS
,	,
which	WDT
mushroomed	VBD
from	IN
less	RBR
than	IN
$	$
2	CD
billion	CD
at	IN
the	DT
start	NN
of	IN
this	DT
decade	NN
,	,
have	VBP
been	VBN
declining	VBG
for	IN
months	NNS
as	IN
issuer	NN
after	IN
issuer	NN
sank	VBD
beneath	IN
the	DT
weight	NN
of	IN
hefty	JJ
interest	NN
payments	NNS
.	.

The	DT
shaky	JJ
market	NN
received	VBD
its	PRP$
biggest	JJS
jolt	NN
last	JJ
month	NN
from	IN
Campeau	NNP
Corp.	NNP
,	,
which	WDT
created	VBD
its	PRP$
U.S.	NNP
retailing	NN
empire	NN
with	IN
junk	NN
financing	NN
.	.

Campeau	NNP
developed	VBD
a	DT
cash	NN
squeeze	NN
that	WDT
caused	VBD
it	PRP
to	TO
be	VB
tardy	JJ
on	IN
some	DT
interest	NN
payments	NNS
and	CC
to	TO
put	VB
its	PRP$
prestigious	JJ
Bloomingdales	NNP
department-store	JJ
chain	NN
up	IN
for	IN
sale	NN
.	.

Now	RB
,	,
dozens	NNS
of	IN
corporations	NNS
,	,
including	VBG
Ethan	NNP
Allen	NNP
,	,
TW	NNP
Services	NNPS
and	CC
York	NNP
International	NNP
,	,
that	WDT
are	VBP
counting	VBG
on	IN
at	IN
least	JJS
$	$
7	CD
billion	CD
of	IN
scheduled	VBN
new	JJ
junk	NN
financings	NNS
to	TO
keep	VB
their	PRP$
highly	RB
leveraged	JJ
takeovers	NNS
and	CC
buy-outs	NNS
afloat	RB
,	,
may	MD
never	RB
get	VB
the	DT
money	NN
.	.

``	``
The	DT
music	NN
has	VBZ
stopped	VBN
playing	VBG
,	,
''	''
says	VBZ
Michael	NNP
Harkins	NNP
,	,
a	DT
principal	NN
in	IN
the	DT
investment	NN
firm	NN
of	IN
Levy	NNP
Harkins	NNP
.	.

``	``
You	PRP
've	VBP
either	RB
got	VBN
a	DT
chair	NN
or	CC
you	PRP
do	VBP
n't	RB
.	.
''	''

In	IN
Friday	NNP
's	POS
aftermath	NN
,	,
says	VBZ
R.	NNP
Douglas	NNP
Carleton	NNP
,	,
a	DT
director	NN
of	IN
high-yield	JJ
finance	NN
at	IN
First	NNP
Boston	NNP
Corp.	NNP
,	,
``	``
much	RB
of	IN
the	DT
$	$
7	CD
billion	CD
forward	JJ
calendar	NN
could	MD
be	VB
deferred	VBN
,	,
depending	VBG
on	IN
the	DT
hysteria	NN
.	.
''	''

In	IN
August	NNP
,	,
First	NNP
Boston	NNP
withdrew	VBD
a	DT
$	$
475	CD
million	CD
junk	NN
offering	VBG
of	IN
Ohio	NNP
Mattress	NNP
bonds	NNS
because	IN
potential	JJ
buyers	NNS
were	VBD
``	``
very	RB
skittish	JJ
.	.
''	''

The	DT
outlook	NN
``	``
looks	VBZ
shaky	JJ
because	IN
we	PRP
're	VBP
still	RB
waiting	VBG
''	''
for	IN
mutual	JJ
funds	NNS
,	,
in	IN
particular	JJ
,	,
to	TO
dump	VB
some	DT
of	IN
their	PRP$
junk	NN
bond	NN
holdings	NNS
to	TO
pay	VB
off	RP
redemptions	NNS
by	IN
individual	JJ
investors	NNS
,	,
says	VBZ
King	NNP
Penniman	NNP
,	,
senior	JJ
vice	NN
president	NN
at	IN
McCarthy	NNP
,	,
Crisanti	NNP
&	CC
Maffei	NNP
,	,
an	DT
investment	NN
arm	NN
of	IN
Xerox	NNP
Financial	NNP
Services	NNPS
.	.

Indeed	RB
,	,
a	DT
Moody	NNP
's	POS
index	NN
that	WDT
tracks	VBZ
the	DT
net	JJ
asset	NN
values	NNS
of	IN
24	CD
high-yield	JJ
mutual	JJ
funds	NNS
declined	VBD
for	IN
the	DT
17th	JJ
consecutive	JJ
day	NN
Friday	NNP
.	.

In	IN
a	DT
stark	JJ
contrast	NN
,	,
the	DT
benchmark	JJ
30-year	JJ
Treasury	NNP
bond	NN
climbed	VBD
more	JJR
than	IN
2	CD
1\/2	CD
points	NNS
,	,
or	CC
about	IN
$	$
25	CD
for	IN
each	DT
$	$
1,000	CD
face	NN
amount	NN
,	,
to	TO
103	CD
12\/32	CD
,	,
its	PRP$
biggest	JJS
gain	NN
of	IN
the	DT
year	NN
.	.

The	DT
bond	NN
's	POS
yield	NN
dropped	VBD
to	TO
7.82	CD
%	NN
,	,
the	DT
lowest	JJS
since	IN
March	NNP
31	CD
,	,
1987	CD
,	,
according	VBG
to	TO
Technical	NNP
Data	NNP
Global	NNP
Markets	NNPS
Group	NNP
.	.

The	DT
yield	NN
on	IN
three-month	JJ
Treasury	NNP
bills	NNS
,	,
considered	VBD
the	DT
safest	JJS
of	IN
all	DT
investments	NNS
,	,
plummeted	VBD
about	IN
0.7	CD
percentage	NN
point	NN
to	TO
7.16	CD
%	NN
,	,
the	DT
largest	JJS
one-day	JJ
decline	NN
since	IN
1982	CD
.	.

The	DT
main	JJ
catalyst	NN
for	IN
government	NN
bond	NN
market	NN
rally	NN
was	VBD
the	DT
190.58-point	JJ
drop	NN
in	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
.	.

``	``
When	WRB
you	PRP
get	VBP
panic	NN
in	IN
one	CD
market	NN
,	,
you	PRP
get	VBP
flight	NN
to	TO
quality	NN
in	IN
the	DT
other	JJ
,	,
''	''
said	VBD
Maria	NNP
Ramirez	NNP
,	,
money	NN
market	NN
economist	NN
at	IN
Drexel	NNP
Burnham	NNP
Lambert	NNP
Inc	NNP
.	.

Nevertheless	RB
,	,
the	DT
problems	NNS
of	IN
the	DT
junk	NN
market	NN
could	MD
prompt	VB
the	DT
Federal	NNP
Reserve	NNP
to	TO
ease	VB
credit	NN
in	IN
the	DT
months	NNS
ahead	RB
.	.

``	``
This	DT
marks	VBZ
a	DT
significant	JJ
shift	NN
in	IN
the	DT
interest	NN
rate	NN
outlook	NN
,	,
''	''
says	VBZ
William	NNP
Sullivan	NNP
,	,
director	NN
of	IN
money	NN
market	NN
research	NN
at	IN
Dean	NNP
Witter	NNP
Reynolds	NNP
Inc.	NNP
,	,
New	NNP
York	NNP
.	.

Any	DT
sustained	VBN
credit-easing	NN
could	MD
be	VB
a	DT
lift	NN
for	IN
junk	NN
bonds	NNS
as	RB
well	RB
as	IN
other	JJ
securities	NNS
.	.

Robert	NNP
Dow	NNP
,	,
a	DT
partner	NN
and	CC
portfolio	NN
manager	NN
at	IN
Lord	NNP
,	,
Abbett	NNP
&	CC
Co.	NNP
,	,
which	WDT
manages	VBZ
$	$
4	CD
billion	CD
of	IN
high-yield	JJ
bonds	NNS
,	,
says	VBZ
he	PRP
does	VBZ
n't	RB
``	``
think	VB
there	EX
is	VBZ
any	DT
fundamental	JJ
economic	JJ
rationale	NN
{	(
for	IN
the	DT
junk	NN
bond	NN
rout	NN
}	)
.	.

It	PRP
was	VBD
herd	NN
instinct	NN
.	.
''	''

He	PRP
adds	VBZ
:	:
``	``
The	DT
junk	NN
market	NN
has	VBZ
witnessed	VBN
some	DT
trouble	NN
and	CC
now	RB
some	DT
people	NNS
think	VBP
that	IN
if	IN
the	DT
equity	NN
market	NN
gets	VBZ
creamed	VBN
that	DT
means	VBZ
the	DT
economy	NN
will	MD
be	VB
terrible	JJ
and	CC
that	DT
's	VBZ
bad	JJ
for	IN
junk	NN
.	.

I	PRP
do	VBP
n't	RB
believe	VB
that	DT
's	VBZ
the	DT
case	NN
,	,
but	CC
I	PRP
believe	VBP
that	IN
people	NNS
are	VBP
running	RB
scared	VBN
.	.

There	EX
is	VBZ
a	DT
flight	NN
to	TO
quality	NN
,	,
and	CC
the	DT
quality	NN
is	VBZ
not	RB
in	IN
equities	NNS
and	CC
not	RB
in	IN
junk	NN
--	:
it	PRP
's	VBZ
in	IN
Treasurys	NNS
.	.
''	''

Even	RB
as	IN
trading	NN
in	IN
high-yield	JJ
issues	NNS
dried	VBN
up	RP
over	IN
the	DT
past	JJ
month	NN
,	,
corporations	NNS
sold	VBD
more	JJR
than	IN
$	$
2	CD
billion	CD
of	IN
new	JJ
junk	NN
bonds	NNS
.	.

For	IN
example	NN
,	,
a	DT
recent	JJ
$	$
375	CD
million	CD
offering	NN
of	IN
Petrolane	NNP
Gas	NNP
Services	NNPS
L.P.	NNP
bonds	NNS
sold	VBN
by	IN
First	NNP
Boston	NNP
was	VBD
three	CD
times	NNS
oversubscribed	VBN
.	.

A	DT
$	$
550	CD
million	CD
offering	NN
of	IN
Turner	NNP
Broadcasting	NNP
System	NNP
Inc	NNP
.	.
high-yield	JJ
securities	NNS
sold	VBD
last	JJ
week	NN
by	IN
Drexel	NNP
was	VBD
increased	VBN
$	$
50	CD
million	CD
because	IN
of	IN
strong	JJ
demand	NN
.	.

First	NNP
Boston	NNP
estimates	VBZ
that	IN
in	IN
November	NNP
and	CC
December	NNP
alone	RB
,	,
junk	NN
bond	NN
investors	NNS
will	MD
receive	VB
$	$
4.8	CD
billion	CD
of	IN
coupon	NN
interest	NN
payments	NNS
.	.

``	``
That	DT
's	VBZ
a	DT
clear	JJ
indication	NN
that	IN
there	EX
is	VBZ
and	CC
will	MD
be	VB
an	DT
undercurrent	NN
of	IN
basic	JJ
business	NN
going	VBG
on	IN
,	,
''	''
says	VBZ
Mr.	NNP
Carleton	NNP
of	IN
First	NNP
Boston	NNP
.	.

``	``
I	PRP
do	VBP
n't	RB
know	VB
how	WRB
people	NNS
can	MD
say	VB
the	DT
junk	NN
bond	NN
market	NN
disappeared	VBD
when	WRB
there	EX
were	VBD
$	$
1.5	CD
billion	CD
of	IN
orders	NNS
for	IN
$	$
550	CD
million	CD
of	IN
junk	NN
bonds	NNS
sold	VBD
last	JJ
week	NN
by	IN
Turner	NNP
,	,
''	''
says	VBZ
Raymond	NNP
Minella	NNP
,	,
co-head	NN
of	IN
merchant	NN
banking	NN
at	IN
Merrill	NNP
Lynch	NNP
&	CC
Co	NNP
.	.

``	``
When	WRB
the	DT
rally	NN
comes	VBZ
,	,
insurance	NN
companies	NNS
will	MD
be	VB
leading	VBG
it	PRP
because	IN
they	PRP
have	VBP
billions	NNS
to	TO
invest	VB
and	CC
invest	VB
they	PRP
will	MD
.	.

There	EX
is	VBZ
plenty	NN
of	IN
money	NN
available	JJ
from	IN
people	NNS
who	WP
want	VBP
to	TO
buy	VB
well-structured	JJ
deals	NNS
;	:
it	PRP
's	VBZ
the	DT
stuff	NN
that	WDT
's	VBZ
financed	VBN
on	IN
a	DT
shoestring	NN
that	IN
people	NNS
are	VBP
wary	JJ
of	IN
.	.
''	''

But	CC
such	JJ
highly	RB
leveraged	JJ
transactions	NNS
seemed	VBD
to	TO
have	VB
multiplied	VBN
this	DT
year	NN
,	,
casting	VBG
a	DT
pall	NN
over	IN
much	RB
of	IN
the	DT
junk	NN
market	NN
.	.

Michael	NNP
McNamara	NNP
,	,
director	NN
of	IN
fixed-income	NN
research	NN
at	IN
Kemper	NNP
Financial	NNP
Services	NNPS
,	,
says	VBZ
the	DT
quality	NN
of	IN
junk	NN
issues	NNS
has	VBZ
been	VBN
getting	VBG
poorer	JJR
,	,
contributing	VBG
to	TO
the	DT
slide	NN
in	IN
prices	NNS
.	.

``	``
Last	JJ
year	NN
we	PRP
probably	RB
bought	VBD
one	CD
out	IN
of	IN
every	DT
three	CD
new	JJ
deals	NNS
,	,
''	''
he	PRP
says	VBZ
.	.

``	``
This	DT
year	NN
,	,
at	IN
best	RB
,	,
it	PRP
's	VBZ
in	IN
one	CD
in	IN
every	DT
five	CD
or	CC
six	CD
.	.

And	CC
our	PRP$
credit	NN
standards	NNS
have	VBP
n't	RB
changed	VBN
one	CD
iota	NN
.	.
''	''

However	RB
,	,
Mr.	NNP
McNamara	NNP
said	VBD
the	DT
slide	NN
in	IN
junk	NN
is	VBZ
creating	VBG
``	``
one	CD
hell	NN
of	IN
a	DT
buying	VBG
opportunity	NN
''	''
for	IN
selective	JJ
buyers	NNS
.	.

For	IN
the	DT
moment	NN
,	,
investors	NNS
seem	VBP
more	RBR
preoccupied	VBN
with	IN
the	DT
``	``
bad	JJ
''	''
junk	NN
than	IN
the	DT
``	``
good	JJ
''	''
junk	NN
.	.

``	``
The	DT
market	NN
has	VBZ
been	VBN
weak	JJ
since	IN
''	''
the	DT
announcement	NN
of	IN
the	DT
Campeau	NNP
cash	NN
squeeze	NN
and	CC
the	DT
company	NN
's	POS
subsequent	JJ
bailout	NN
by	IN
Olympia	NNP
&	CC
York	NNP
,	,
says	VBZ
Mr.	NNP
Minella	NNP
of	IN
Merrill	NNP
Lynch	NNP
.	.

``	``
That	DT
really	RB
affected	VBD
the	DT
market	NN
in	IN
that	IN
people	NNS
started	VBD
to	TO
ask	VB
`	``
What	WP
else	RB
is	VBZ
in	IN
trouble	NN
?	.
'	''
''	''

Well	RB
before	IN
Campeau	NNP
,	,
though	RB
,	,
there	EX
were	VBD
signs	NNS
that	IN
the	DT
junk	NN
market	NN
was	VBD
stumbling	VBG
through	IN
one	CD
of	IN
its	PRP$
worst	JJS
years	NNS
ever	RB
.	.

Despite	IN
the	DT
relatively	RB
strong	JJ
economy	NN
,	,
junk	NN
bond	NN
prices	NNS
did	VBD
nothing	NN
except	IN
go	VB
down	IN
,	,
hammered	VBN
by	IN
a	DT
seemingly	RB
endless	JJ
trail	NN
of	IN
bad	JJ
news	NN
:	:

--	:
In	IN
June	NNP
,	,
two	CD
months	NNS
before	IN
it	PRP
would	MD
default	VB
on	IN
interest	NN
payments	NNS
covering	VBG
some	DT
of	IN
its	PRP$
$	$
1.2	CD
billion	CD
of	IN
speculative	JJ
debt	NN
securities	NNS
,	,
New	NNP
York-based	JJ
Integrated	NNP
Resources	NNPS
Inc.	NNP
said	VBD
it	PRP
ran	VBD
out	RP
of	IN
borrowed	VBN
money	NN
.	.

--	:
In	IN
July	NNP
,	,
Southmark	NNP
Corp.	NNP
,	,
the	DT
Dallas-based	JJ
real	JJ
estate	NN
and	CC
financial	JJ
services	NNS
company	NN
with	IN
about	IN
$	$
1.3	CD
billion	CD
of	IN
junk	NN
bonds	NNS
,	,
voluntarily	RB
filed	VBN
for	IN
protection	NN
under	IN
U.S.	NNP
bankruptcy	NN
law	NN
.	.

--	:
By	IN
the	DT
end	NN
of	IN
July	NNP
,	,
the	DT
difference	NN
in	IN
yield	NN
between	IN
an	DT
index	NN
of	IN
junk	NN
bonds	NNS
and	CC
seven-year	JJ
Treasury	NN
notes	NNS
widened	VBD
to	TO
more	RBR
than	IN
5.5	CD
percentage	NN
points	NNS
.	.

--	:
In	IN
August	NNP
,	,
Resorts	NNPS
International	NNP
Inc.	NNP
,	,
which	WDT
sold	VBD
more	JJR
than	IN
$	$
500	CD
million	CD
of	IN
junk	NN
bonds	NNS
,	,
suspended	VBN
interest	NN
payments	NNS
.	.

--	:
In	IN
September	NNP
,	,
just	RB
as	IN
the	DT
cash	NN
squeeze	NN
hit	VBD
Campeau	NNP
,	,
Lomas	NNP
Financial	NNP
Corp.	NNP
defaulted	VBD
on	IN
$	$
145	CD
million	CD
of	IN
notes	NNS
and	CC
appeared	VBD
unlikely	JJ
to	TO
pay	VB
interest	NN
on	IN
a	DT
total	NN
of	IN
$	$
1.2	CD
billion	CD
of	IN
debt	NN
securities	NNS
.	.

Meantime	RB
,	,
regulators	NNS
are	VBP
becoming	VBG
increasingly	RB
worried	VBN
as	IN
the	DT
rush	NN
to	TO
leverage	VB
shows	VBZ
no	DT
signs	NNS
of	IN
abating	VBG
.	.

Moody	NNP
's	POS
says	VBZ
the	DT
frequency	NN
of	IN
corporate	JJ
credit	NN
downgrades	NNS
is	VBZ
the	DT
highest	JJS
this	DT
year	NN
since	IN
1982	CD
.	.

In	IN
addition	NN
,	,
there	EX
are	VBP
six	CD
times	NNS
as	IN
many	JJ
troubled	VBN
banks	NNS
as	IN
there	EX
were	VBD
in	IN
the	DT
recession	NN
of	IN
1981	CD
,	,
according	VBG
to	TO
the	DT
Federal	NNP
Deposit	NNP
Insurance	NNP
Corp	NNP
.	.

``	``
The	DT
era	NN
of	IN
the	DT
1980s	CD
is	VBZ
about	IN
compound	JJ
interest	NN
and	CC
the	DT
reaching	NN
for	IN
it	PRP
,	,
''	''
says	VBZ
James	NNP
Grant	NNP
,	,
editor	NN
of	IN
Grant	NNP
's	POS
Interest	NNP
Rate	NNP
Observer	NNP
,	,
an	DT
early	JJ
critic	NN
of	IN
the	DT
junk	NN
bond	NN
market	NN
.	.

``	``
What	WP
we	PRP
've	VBP
begun	VBN
to	TO
see	VB
is	VBZ
the	DT
damage	NN
to	TO
businesses	NNS
of	IN
paying	VBG
exorbitant	JJ
compound	NN
interest	NN
.	.

Businesses	NNS
were	VBD
borrowing	VBG
at	IN
interest	NN
rates	NNS
higher	JJR
than	IN
their	PRP$
own	JJ
earnings	NNS
.	.

What	WP
we	PRP
're	VBP
seeing	VBG
now	RB
is	VBZ
the	DT
wrenching	VBG
readjustment	NN
of	IN
asset	NN
values	NNS
to	TO
a	DT
future	NN
when	WRB
speculative-grade	JJ
debt	NN
will	MD
be	VB
hard	JJ
to	TO
obtain	VB
rather	RB
than	IN
easy	JJ
.	.
''	''

Friday	NNP
's	POS
Market	NNP
Activity	NNP

Prices	NNS
of	IN
Treasury	NNP
bonds	NNS
surged	VBD
in	IN
the	DT
biggest	JJS
rally	NN
of	IN
the	DT
year	NN
as	IN
investors	NNS
fled	VBD
a	DT
plummeting	VBG
stock	NN
market	NN
.	.

The	DT
benchmark	NN
30-year	JJ
Treasury	NN
bond	NN
was	VBD
quoted	VBN
6	CD
p.m.	NN
EDT	NNP
at	IN
103	CD
12\/32	CD
,	,
compared	VBN
with	IN
100	CD
27\/32	CD
Thursday	NNP
,	,
up	IN
2	CD
1\/2	CD
points	NNS
.	.

The	DT
yield	NN
on	IN
the	DT
benchmark	NN
fell	VBD
to	TO
7.82	CD
%	NN
,	,
the	DT
lowest	JJS
since	IN
March	NNP
31	CD
,	,
1987	CD
,	,
according	VBG
to	TO
Technical	NNP
Data	NNP
Global	NNP
Markets	NNPS
Group	NNP
.	.

The	DT
``	``
flight	NN
to	TO
quality	NN
''	''
began	VBD
late	RB
in	IN
the	DT
day	NN
and	CC
followed	VBD
a	DT
precipitous	JJ
fall	NN
in	IN
the	DT
stock	NN
market	NN
.	.

Treasurys	NNS
opened	VBD
lower	JJR
,	,
reacting	VBG
negatively	RB
to	TO
news	NN
that	IN
the	DT
producer	NN
price	NN
index	NN
--	:
a	DT
measure	NN
of	IN
inflation	NN
on	IN
the	DT
wholesale	JJ
level	NN
--	:
accelerated	VBD
in	IN
September	NNP
.	.

Bond	NN
prices	NNS
barely	RB
budged	VBD
until	IN
midday	NN
.	.

Many	JJ
bond	NN
market	NN
participants	NNS
will	MD
be	VB
closely	RB
eying	VBG
the	DT
action	NN
of	IN
the	DT
Federal	NNP
Reserve	NNP
,	,
which	WDT
might	MD
repeat	VB
its	PRP$
October	NNP
1987	CD
injection	NN
of	IN
huge	JJ
amounts	NNS
of	IN
liquidity	NN
to	TO
buoy	VB
the	DT
financial	JJ
markets	NNS
and	CC
keep	VB
the	DT
economy	NN
from	IN
slowing	VBG
into	IN
a	DT
recession	NN
.	.

Prices	NNS
of	IN
municipals	NNS
,	,
investment-grade	JJ
corporates	NNS
and	CC
mortgage-backed	JJ
bonds	NNS
also	RB
rose	VBD
,	,
but	CC
lagged	VBD
behind	IN
their	PRP$
Treasury	NN
counterparts	NNS
.	.

Mortgage	NN
securities	NNS
rose	VBD
in	IN
hectic	JJ
trading	NN
,	,
with	IN
most	JJS
of	IN
the	DT
activity	NN
concentrated	VBN
in	IN
Government	NNP
National	NNP
Mortgage	NNP
Association	NNP
9	CD
%	NN
coupon	NN
securities	NNS
,	,
the	DT
most	RBS
liquid	JJ
mortgage	NN
issue	NN
.	.

The	DT
Ginnie	NNP
Mae	NNP
November	NNP
9	CD
%	NN
issue	NN
ended	VBD
at	IN
98	CD
25\/32	CD
,	,
up	IN
7\/8	CD
point	NN
on	IN
the	DT
day	NN
,	,
to	TO
yield	VB
about	IN
9.28	CD
%	NN
to	TO
a	DT
12-year	JJ
average	NN
life	NN
assumption	NN
.	.

Investment-grade	JJ
corporate	JJ
bonds	NNS
were	VBD
up	IN
about	IN
1\/2	CD
to	TO
3\/4	CD
point	NN
.	.

But	CC
the	DT
yield	NN
spread	VBD
between	IN
lower-quality	NN
,	,
investment-grade	JJ
issues	NNS
and	CC
higher-quality	NN
bonds	NNS
widened	VBD
.	.

And	CC
the	DT
yields	NNS
on	IN
telephone	NN
and	CC
utility	NN
issues	NNS
rose	VBD
relative	JJ
to	TO
other	JJ
investment-grade	JJ
bonds	NNS
in	IN
anticipation	NN
of	IN
this	DT
week	NN
's	POS
$	$
3	CD
billion	CD
bond	NN
offering	VBG
by	IN
the	DT
Tennessee	NNP
Valley	NNP
Authority	NNP
.	.

Despite	IN
rumors	NNS
that	IN
the	DT
TVA	NNP
's	POS
long-awaited	JJ
offering	NN
would	MD
be	VB
postponed	VBN
because	IN
of	IN
the	DT
debacle	NN
in	IN
the	DT
equity	NN
markets	NNS
,	,
sources	NNS
in	IN
the	DT
underwriting	NN
syndicate	NN
said	VBD
they	PRP
expect	VBP
the	DT
issue	NN
will	MD
be	VB
priced	VBN
as	IN
scheduled	VBN
.	.

One	CD
of	IN
the	DT
sources	NNS
said	VBD
the	DT
smaller	JJR
portions	NNS
of	IN
$	$
750	CD
million	CD
each	DT
of	IN
five-year	JJ
and	CC
10-year	JJ
bonds	NNS
have	VBP
already	RB
been	VBN
``	``
substantially	RB
oversubscribed	VBN
.	.
''	''

Municipal	JJ
bonds	NNS
rose	VBD
as	RB
much	RB
as	IN
3\/4	CD
point	NN
.	.

Roger	NNP
Lowenstein	NNP
contributed	VBD
to	TO
this	DT
article	NN
.	.

Friday	NNP
's	POS
190-point	JJ
plunge	NN
in	IN
stocks	NNS
does	VBZ
not	RB
come	VBN
atop	IN
the	DT
climate	NN
of	IN
anxiety	NN
that	WDT
dominated	VBD
financial	JJ
markets	NNS
just	RB
prior	RB
to	TO
their	PRP$
1987	CD
October	NNP
crash	NN
,	,
and	CC
mechanisms	NNS
have	VBP
been	VBN
put	VBN
in	IN
place	NN
to	TO
keep	VB
markets	NNS
more	RBR
orderly	JJ
.	.

Still	RB
,	,
the	DT
lesson	NN
is	VBZ
about	IN
the	DT
same	JJ
:	:
On	IN
Friday	NNP
the	DT
13th	JJ
,	,
the	DT
market	NN
was	VBD
spooked	VBN
by	IN
Washington	NNP
.	.

The	DT
consensus	NN
along	IN
the	DT
street	NN
seems	VBZ
to	TO
be	VB
that	IN
the	DT
plunge	NN
was	VBD
triggered	VBN
by	IN
the	DT
financing	VBG
problems	NNS
of	IN
the	DT
UAL	NNP
takeover	NN
,	,
and	CC
it	PRP
's	VBZ
certainly	RB
true	JJ
the	DT
rout	NN
began	VBD
immediately	RB
after	IN
the	DT
UAL	NNP
trading	NN
halt	NN
.	.

Still	RB
,	,
the	DT
consensus	NN
seems	VBZ
almost	RB
as	RB
wide	JJ
that	IN
one	CD
faltering	VBG
bid	NN
is	VBZ
no	DT
reason	NN
to	TO
write	VB
down	RP
the	DT
value	NN
of	IN
all	DT
U.S.	NNP
business	NN
.	.

This	DT
observation	NN
leads	VBZ
us	PRP
to	TO
another	DT
piece	NN
of	IN
news	NN
moving	VBG
on	IN
the	DT
Dow	NNP
Jones	NNP
ticker	NN
shortly	RB
before	IN
the	DT
downturn	NN
:	:
the	DT
success	NN
of	IN
Senate	NNP
Democrats	NNPS
in	IN
stalling	VBG
the	DT
capital	NN
gains	NNS
tax	NN
cut	NN
.	.

The	DT
real	JJ
value	NN
of	IN
all	DT
shares	NNS
,	,
after	IN
all	DT
,	,
is	VBZ
directly	RB
impacted	VBN
by	IN
the	DT
tax	NN
on	IN
any	DT
profits	NNS
(	(
all	PDT
the	DT
more	RBR
so	RB
given	VBN
the	DT
limits	NNS
on	IN
deductions	NNS
for	IN
losses	NNS
that	WDT
show	VBP
gains	NNS
are	VBP
not	RB
``	``
ordinary	JJ
income	NN
''	''
)	)
.	.

And	CC
market	NN
expectations	NNS
clearly	RB
have	VBP
been	VBN
raised	VBN
by	IN
the	DT
capital	NN
gains	NNS
victory	NN
in	IN
the	DT
House	NN
last	JJ
month	NN
.	.

An	DT
hour	NN
before	IN
Friday	NNP
's	POS
plunge	NN
,	,
that	DT
provision	NN
was	VBD
stripped	VBN
from	IN
the	DT
tax	NN
bill	NN
,	,
leaving	VBG
it	PRP
with	IN
$	$
5.4	CD
billion	CD
in	IN
tax	NN
increases	NNS
without	IN
a	DT
capital	NN
gains	NNS
cut	NN
.	.

There	EX
is	VBZ
a	DT
great	JJ
deal	NN
to	TO
be	VB
said	VBN
,	,
to	TO
be	VB
sure	JJ
,	,
for	IN
stripping	VBG
the	DT
garbage	NN
out	IN
of	IN
the	DT
reconciliation	NN
bill	NN
.	.

It	PRP
would	MD
be	VB
a	DT
good	JJ
thing	NN
if	IN
Congress	NNP
started	VBD
to	TO
decide	VB
issues	NNS
one-by-one	JJ
on	IN
their	PRP$
individual	JJ
merits	NNS
without	IN
trickery	NN
.	.

For	IN
one	CD
thing	NN
,	,
no	DT
one	CD
doubts	VBZ
that	IN
the	DT
capital	NN
gains	NNS
cut	NN
would	MD
pass	VB
on	IN
an	DT
up-or-down	JJ
vote	NN
.	.

Since	IN
Senate	NNP
leaders	NNS
have	VBP
so	RB
far	RB
fogged	JJ
it	PRP
up	RP
with	IN
procedural	JJ
smokescreens	NNS
,	,
promises	NNS
of	IN
a	DT
cleaner	JJR
bill	NN
are	VBP
suspect	JJ
.	.

Especially	RB
so	RB
since	IN
President	NNP
Bush	NNP
has	VBZ
been	VBN
weakened	VBN
by	IN
the	DT
Panama	NNP
fiasco	NN
.	.

To	TO
the	DT
extent	NN
that	IN
the	DT
UAL	NNP
troubles	NNS
contributed	VBD
to	TO
the	DT
plunge	NN
,	,
they	PRP
are	VBP
another	DT
instance	NN
of	IN
Washington	NNP
's	POS
sticky	JJ
fingers	NNS
.	.

As	IN
the	DT
best	JJS
opportunities	NNS
for	IN
corporate	JJ
restructurings	NNS
are	VBP
exhausted	VBN
of	IN
course	NN
,	,
at	IN
some	DT
point	NN
the	DT
market	NN
will	MD
start	VB
to	TO
reject	VB
them	PRP
.	.

But	CC
the	DT
airlines	NNS
are	VBP
scarcely	RB
a	DT
clear	JJ
case	NN
,	,
given	VBN
anti-takeover	JJ
mischief	NN
by	IN
Secretary	NNP
of	IN
Transportation	NNP
Skinner	NNP
,	,
who	WP
professes	VBZ
to	TO
believe	VB
safety	NN
will	MD
be	VB
compromised	VBN
if	IN
KLM	NNP
and	CC
British	NNP
Airways	NNPS
own	VBP
interests	NNS
in	IN
companies	NNS
that	WDT
fly	VBP
airplanes	NNS
.	.

Worse	NNP
,	,
Congress	NNP
has	VBZ
started	VBN
to	TO
jump	VB
on	IN
the	DT
Skinner	NNP
bandwagon	NN
.	.

James	NNP
Oberstar	NNP
,	,
the	DT
Minnesota	NNP
Democrat	NNP
who	WP
chairs	VBZ
the	DT
Public	NNP
Works	NNPS
and	CC
Transportation	NNP
Committee	NNP
's	POS
aviation	NN
subcommittee	NN
,	,
has	VBZ
put	VBN
an	DT
anti-airline	NN
takeover	NN
bill	NN
on	IN
supersonic	JJ
speed	NN
so	IN
that	IN
it	PRP
would	MD
be	VB
passed	VBN
in	IN
time	NN
to	TO
affect	VB
the	DT
American	JJ
and	CC
United	NNP
Air	NNP
Lines	NNPS
bids	NNS
.	.

It	PRP
would	MD
give	VB
Mr.	NNP
Skinner	NNP
up	IN
to	TO
50	CD
days	NNS
to	TO
``	``
review	VB
''	''
any	DT
bid	NN
for	IN
15	CD
%	NN
or	CC
more	JJR
of	IN
the	DT
voting	VBG
stock	NN
of	IN
any	DT
U.S.	NNP
carrier	NN
with	IN
revenues	NNS
of	IN
$	$
1	CD
billion	CD
or	CC
more	JJR
.	.

So	IN
the	DT
UAL	NNP
deal	NN
has	VBZ
problems	NNS
,	,
and	CC
the	DT
market	NN
loses	VBZ
190	CD
points	NNS
.	.

Congratulations	UH
,	,
Mr.	NNP
Secretary	NNP
and	CC
Mr.	NNP
Congressman	NNP
.	.

In	IN
the	DT
1987	CD
crash	NN
,	,
remember	VB
,	,
the	DT
market	NN
was	VBD
shaken	VBN
by	IN
a	DT
Danny	NNP
Rostenkowski	NNP
proposal	NN
to	TO
tax	NN
takeovers	NNS
out	IN
of	IN
existance	NN
.	.

Even	RB
more	RBR
important	JJ
,	,
in	IN
our	PRP$
view	NN
,	,
was	VBD
the	DT
Treasury	NNP
's	POS
threat	NN
to	TO
thrash	VB
the	DT
dollar	NN
.	.

The	DT
Treasury	NNP
is	VBZ
doing	VBG
the	DT
same	JJ
thing	NN
today	NN
;	:
thankfully	RB
,	,
the	DT
dollar	NN
is	VBZ
not	RB
under	IN
1987-style	JJ
pressure	NN
.	.

Also	RB
,	,
traders	NNS
are	VBP
in	IN
better	JJR
shape	NN
today	NN
than	IN
in	IN
1987	CD
to	TO
survive	VB
selling	VBG
binges	NNS
.	.

They	PRP
are	VBP
better	RB
capitalized	VBN
.	.

They	PRP
are	VBP
in	IN
less	JJR
danger	NN
of	IN
losing	VBG
liquidity	NN
simply	RB
because	IN
of	IN
tape	NN
lags	NNS
and	CC
clearing	NN
and	CC
settlement	NN
delays	NNS
.	.

The	DT
Fed	NNP
promises	VBZ
any	DT
needed	VBN
liquidity	NN
.	.

The	DT
Big	NNP
Board	NNP
's	POS
liaison	NN
with	IN
the	DT
Chicago	NNP
Board	NNP
of	IN
Trade	NNP
has	VBZ
improved	VBN
;	:
it	PRP
will	MD
be	VB
interesting	JJ
to	TO
learn	VB
if	IN
``	``
circuit	NN
breakers	NNS
''	''
prove	VBP
to	TO
be	VB
a	DT
good	JJ
idea	NN
.	.

In	IN
any	DT
event	NN
,	,
some	DT
traders	NNS
see	VBP
stocks	NNS
as	IN
underpriced	VBN
today	NN
,	,
unlike	IN
1987	CD
.	.

There	EX
is	VBZ
nothing	NN
wrong	JJ
with	IN
the	DT
market	NN
that	WDT
ca	MD
n't	RB
be	VB
cured	VBN
by	IN
a	DT
little	JJ
coherence	NN
and	CC
common	JJ
sense	NN
in	IN
Washington	NNP
.	.

But	CC
on	IN
the	DT
bearish	JJ
side	NN
,	,
that	WDT
may	MD
be	VB
too	RB
much	JJ
to	TO
expect	VB
.	.

First	NNP
Chicago	NNP
Corp.	NNP
posted	VBD
a	DT
third-quarter	NN
loss	NN
of	IN
$	$
23.3	CD
million	CD
after	IN
joining	VBG
other	JJ
big	JJ
banks	NNS
in	IN
further	RB
adding	VBG
to	TO
its	PRP$
reserves	NNS
for	IN
losses	NNS
on	IN
foreign	JJ
loans	NNS
.	.

The	DT
parent	NN
company	NN
of	IN
First	NNP
National	NNP
Bank	NNP
of	IN
Chicago	NNP
,	,
with	IN
$	$
48	CD
billion	CD
in	IN
assets	NNS
,	,
said	VBD
it	PRP
set	VBD
aside	RB
$	$
200	CD
million	CD
to	TO
absorb	VB
losses	NNS
on	IN
loans	NNS
and	CC
investments	NNS
in	IN
financially	RB
troubled	VBN
countries	NNS
.	.

The	DT
addition	NN
,	,
on	IN
top	NN
of	IN
two	CD
big	JJ
1987	CD
additions	NNS
to	TO
foreign-loan	JJ
reserves	NNS
,	,
brings	VBZ
the	DT
reserve	NN
to	TO
a	DT
level	NN
equaling	VBG
79	CD
%	NN
of	IN
medium-term	JJ
and	CC
long-term	JJ
loans	NNS
outstanding	JJ
to	TO
troubled	VBN
nations	NNS
.	.

First	NNP
Chicago	NNP
since	IN
1987	CD
has	VBZ
reduced	VBN
its	PRP$
loans	NNS
to	TO
such	JJ
nations	NNS
to	TO
$	$
1.7	CD
billion	CD
from	IN
$	$
3	CD
billion	CD
.	.

Despite	IN
this	DT
loss	NN
,	,
First	NNP
Chicago	NNP
said	VBD
it	PRP
does	VBZ
n't	RB
need	VB
to	TO
sell	VB
stock	NN
to	TO
raise	VB
capital	NN
.	.

During	IN
the	DT
quarter	NN
,	,
the	DT
company	NN
realized	VBD
a	DT
pretax	NN
gain	NN
of	IN
$	$
60.4	CD
million	CD
from	IN
the	DT
sale	NN
of	IN
its	PRP$
First	NNP
Chicago	NNP
Investment	NNP
Advisors	NNPS
unit	NN
.	.

Combined	VBN
foreign	JJ
exchange	NN
and	CC
bond	NN
trading	NN
profits	NNS
dipped	VBD
24	CD
%	NN
against	IN
last	JJ
year	NN
's	POS
third	JJ
quarter	NN
,	,
to	TO
$	$
38.2	CD
million	CD
from	IN
$	$
50.5	CD
million	CD
.	.

Gains	NNS
from	IN
First	NNP
Chicago	NNP
's	POS
venture	NN
capital	NN
unit	NN
,	,
a	DT
big	JJ
leveraged	JJ
buy-out	NN
investor	NN
,	,
rose	VBD
32	CD
%	NN
to	TO
$	$
34	CD
million	CD
from	IN
$	$
25.7	CD
million	CD
a	DT
year	NN
ago	IN
.	.

Interest	NN
income	NN
and	CC
most	JJS
fee	NN
income	NN
was	VBD
strong	JJ
.	.

Greece	NNP
's	POS
second	JJ
bout	NN
of	IN
general	JJ
elections	NNS
this	DT
year	NN
is	VBZ
slated	VBN
for	IN
Nov.	NNP
5	CD
.	.

For	IN
those	DT
hoping	VBG
to	TO
see	VB
a	DT
modicum	NN
of	IN
political	JJ
normalcy	NN
restored	VBD
--	:
in	IN
view	NN
of	IN
Greece	NNP
's	POS
eight-year	JJ
misadventure	NN
under	IN
autocratic	JJ
pseudosocialism	NN
and	CC
subsequent	JJ
three-month	JJ
hitch	NN
with	IN
a	DT
conservative-communist	JJ
coalition	NN
government	NN
--	:
there	EX
is	VBZ
but	CC
one	CD
bright	JJ
sign	NN
:	:
The	DT
scandals	NNS
still	RB
encircling	VBG
former	JJ
Prime	NNP
Minister	NNP
Andreas	NNP
Papandreou	NNP
and	CC
his	PRP$
fallen	VBN
socialist	JJ
government	NN
are	VBP
like	JJ
flies	NNS
buzzing	VBG
around	IN
a	DT
rotting	VBG
carcass	NN
.	.

In	IN
the	DT
mid-June	NNP
round	NN
of	IN
voting	NN
,	,
Greeks	NNPS
gave	VBD
no	DT
clear	JJ
mandate	NN
to	TO
any	DT
single	JJ
political	JJ
party	NN
.	.

The	DT
ad	NN
interim	NN
coalition	NN
government	NN
that	WDT
emerged	VBD
from	IN
post-electoral	JJ
hagglings	NNS
was	VBD
,	,
in	IN
essence	NN
,	,
little	RB
more	JJR
than	IN
the	DT
ill-conceived	JJ
offspring	NN
of	IN
ideological	JJ
miscegenation	NN
:	:
On	IN
one	CD
side	NN
,	,
the	DT
center-right	JJ
New	NNP
Democracy	NNP
Party	NNP
,	,
headed	VBN
by	IN
Constantine	NNP
Mitsotakis	NNP
.	.

On	IN
the	DT
other	JJ
,	,
the	DT
so-called	JJ
Coalition	NNP
of	IN
the	DT
Left	NNP
and	CC
Progress	NNP
--	:
a	DT
quaint	JJ
and	CC
rather	RB
deceptive	JJ
title	NN
for	IN
a	DT
merger	NN
of	IN
the	DT
pro-Soviet	JJ
Communist	NNP
Party	NNP
of	IN
Greece	NNP
and	CC
its	PRP$
Euro-Communist	NNP
cousin	NN
,	,
the	DT
Hellenic	NNP
Left	NNP
.	.

The	DT
unifying	VBG
bond	NN
for	IN
this	DT
left-right	JJ
mismatch	NN
was	VBD
plain	JJ
:	:
PASOK	NNP
(	(
Mr.	NNP
Papandreou	NNP
's	POS
party	NN
)	)
as	IN
common	JJ
political	JJ
enemy	NN
.	.

The	DT
ostensible	JJ
goal	NN
was	VBD
a	DT
mop-up	NN
of	IN
government	NN
corruption	NN
,	,
purportedly	RB
at	IN
all	DT
levels	NNS
,	,
but	CC
the	DT
main	JJ
marks	NNS
were	VBD
Mr.	NNP
Papandreou	NNP
and	CC
his	PRP$
closest	JJS
associates	NNS
.	.

In	IN
point	NN
of	IN
fact	NN
,	,
this	DT
catharsis	NN
was	VBD
overdue	JJ
by	IN
decades	NNS
.	.

When	WRB
reduced	VBN
to	TO
buzzword	NN
status	NN
in	IN
ex	JJ
parte	NN
pledges	NNS
,	,
however	RB
,	,
the	DT
notion	NN
transmogrified	VBD
into	IN
a	DT
promised	VBN
assault	NN
,	,
with	IN
targets	NNS
primarily	RB
for	IN
political	JJ
gains	NNS
,	,
not	RB
justice	NN
.	.

With	IN
regard	NN
to	TO
Greece	NNP
's	POS
long-bubbling	JJ
bank-looting	JJ
scandal	NN
,	,
Mr.	NNP
Papandreou	NNP
's	POS
principal	JJ
accuser	NN
remains	VBZ
George	NNP
Koskotas	NNP
,	,
former	JJ
owner	NN
of	IN
the	DT
Bank	NNP
of	IN
Crete	NNP
and	CC
self-confessed	JJ
embezzler	NN
,	,
now	RB
residing	VBG
in	IN
a	DT
jail	NN
cell	NN
in	IN
Salem	NNP
,	,
Mass.	NNP
,	,
from	IN
where	WRB
he	PRP
is	VBZ
fighting	VBG
extradition	NN
proceedings	NNS
that	WDT
would	MD
return	VB
him	PRP
to	TO
Greece	NNP
.	.

Mr.	NNP
Koskotas	NNP
's	POS
credibility	NN
is	VBZ
,	,
at	IN
best	JJS
,	,
problematic	JJ
.	.

He	PRP
has	VBZ
ample	JJ
motive	NN
to	TO
shift	VB
the	DT
blame	NN
,	,
and	CC
his	PRP$
testimony	NN
has	VBZ
also	RB
been	VBN
found	VBN
less	RBR
than	IN
forthright	JJ
on	IN
numerous	JJ
points	NNS
.	.

Nevertheless	RB
,	,
the	DT
New	NNP
Democracy	NNP
and	CC
Communist	NNP
parties	NNS
herald	VBP
his	PRP$
assertions	NNS
as	IN
proof	NN
of	IN
PASOK	NNP
complicity	NN
.	.

Among	IN
unanswered	JJ
questions	NNS
are	VBP
whether	IN
Mr.	NNP
Papandreou	NNP
received	VBD
$	$
23	CD
million	CD
of	IN
stolen	VBN
Bank	NNP
of	IN
Crete	NNP
funds	NNS
and	CC
an	DT
additional	JJ
$	$
734,000	CD
in	IN
bribes	NNS
,	,
as	RB
contended	VBN
;	:
whether	IN
the	DT
prime	JJ
minister	NN
ordered	VBD
state	NN
agencies	NNS
to	TO
deposit	VB
some	DT
$	$
57	CD
million	CD
in	IN
Mr.	NNP
Koskotas	NNP
's	POS
bank	NN
and	CC
then	RB
skim	VB
off	RP
the	DT
interest	NN
;	:
and	CC
,	,
what	WP
PASOK	NNP
's	POS
cut	NN
was	VBD
from	IN
the	DT
$	$
210	CD
million	CD
Mr.	NNP
Koskotas	NNP
pinched	VBD
.	.

Two	CD
former	JJ
ministers	NNS
were	VBD
so	RB
heavily	RB
implicated	VBN
in	IN
the	DT
Koskotas	NNP
affair	NN
that	IN
PASOK	NNP
members	NNS
of	IN
Parliament	NNP
voted	VBD
to	TO
refer	VB
them	PRP
to	TO
the	DT
special	JJ
court	NN
.	.

But	CC
eluding	VBG
parliamentary	JJ
probe	NN
was	VBD
the	DT
case	NN
of	IN
millions	NNS
of	IN
drachmas	NN
Mr.	NNP
Koskotas	NNP
funneled	VBD
into	IN
New	NNP
Democracy	NNP
coffers	NNS
.	.

In	IN
the	DT
end	NN
,	,
the	DT
investigation	NN
produced	VBD
only	RB
circumstantial	JJ
evidence	NN
and	CC
``	``
indications	NNS
''	''
that	IN
point	NN
to	TO
PASOK	NNP
,	,
not	RB
clinching	VBG
proof	NN
.	.

On	IN
another	DT
issue	NN
,	,
Greeks	NNPS
were	VBD
told	VBN
how	WRB
their	PRP$
national	JJ
intelligence	NN
agency	NN
,	,
the	DT
EYP	NNP
,	,
regularly	RB
monitored	VBD
the	DT
telephone	NN
conversations	NNS
of	IN
prominent	JJ
figures	NNS
,	,
including	VBG
key	JJ
opposition	NN
politicians	NNS
,	,
journalists	NNS
and	CC
PASOK	NNP
cabinet	NN
members	NNS
.	.

Despite	IN
convincing	JJ
arguments	NNS
,	,
it	PRP
was	VBD
never	RB
established	VBN
that	IN
Mr.	NNP
Papandreou	NNP
personally	RB
ordered	VBD
or	CC
directed	VBD
the	DT
wiretaps	NNS
.	.

The	DT
central	JJ
weakness	NN
of	IN
the	DT
``	``
scandals	NNS
''	''
debates	NNS
was	VBD
pointed	VBN
up	RP
especially	RB
well	RB
when	WRB
discussions	NNS
focused	VBD
on	IN
arms	NNS
deals	NNS
and	CC
kickbacks	NNS
.	.

The	DT
coalition	NN
government	NN
tried	VBD
to	TO
show	VB
that	IN
PASOK	NNP
ministers	NNS
had	VBD
received	VBN
hefty	JJ
sums	NNS
for	IN
OKing	NNP
the	DT
purchase	NN
of	IN
F-16	NNP
Fighting	NNP
Falcon	NNP
and	CC
Mirage	NNP
2000	CD
combat	NN
aircraft	NN
,	,
produced	VBN
by	IN
the	DT
U.S.based	JJ
General	NNP
Dynamics	NNP
Corp.	NNP
and	CC
France	NNP
's	POS
Avions	NNP
Marcel	NNP
Dassault	NNP
,	,
respectively	RB
.	.

Naturally	RB
,	,
neither	CC
General	NNP
Dynamics	NNP
nor	CC
Dassault	NNP
could	MD
be	VB
expected	VBN
to	TO
hamper	VB
its	PRP$
prospective	JJ
future	NN
dealings	NNS
by	IN
making	VBG
disclosures	NNS
of	IN
sums	NNS
paid	VBN
(	(
or	CC
not	RB
)	)
to	TO
various	JJ
Greek	JJ
officials	NNS
for	IN
services	NNS
rendered	VBN
.	.

So	IN
it	PRP
seems	VBZ
that	IN
Mr.	NNP
Mitsotakis	NNP
and	CC
his	PRP$
communist	NN
chums	NNS
may	MD
have	VB
unwittingly	RB
served	VBN
Mr.	NNP
Papandreou	NNP
a	DT
moral	JJ
victory	NN
on	IN
a	DT
platter	JJ
:	:
PASOK	NNP
,	,
whether	IN
guilty	JJ
or	CC
not	RB
,	,
can	MD
now	RB
traipse	VB
the	DT
countryside	NN
condemning	VBG
the	DT
whole	JJ
affair	NN
as	IN
a	DT
witch	NN
hunt	NN
at	IN
Mr.	NNP
Papandreou	NNP
's	POS
expense	NN
.	.

But	CC
while	IN
verbal	JJ
high	JJ
jinks	NNS
alone	RB
wo	MD
n't	RB
help	VB
PASOK	NNP
regain	VB
power	NN
,	,
Mr.	NNP
Papandreou	NNP
should	MD
never	RB
be	VB
underestimated	VBN
.	.

First	RB
came	VBD
his	PRP$
predictable	JJ
fusillade	NN
:	:
He	PRP
charged	VBD
the	DT
Coalition	NNP
of	IN
the	DT
Left	NNP
and	CC
Progress	NNP
had	VBD
sold	VBN
out	RP
its	PRP$
leftist	JJ
tenets	NNS
by	IN
collaborating	VBG
in	IN
a	DT
right-wing	JJ
plot	NN
aimed	VBN
at	IN
ousting	VBG
PASOK	NNP
and	CC
thwarting	VBG
the	DT
course	NN
of	IN
socialism	NN
in	IN
Greece	NNP
.	.

Then	RB
,	,
to	TO
buttress	VB
his	PRP$
credibility	NN
with	IN
the	DT
left	JJ
,	,
he	PRP
enticed	VBD
some	DT
smaller	JJR
leftist	JJ
parties	NNS
to	TO
stand	VB
for	IN
election	NN
under	IN
the	DT
PASOK	NNP
banner	NN
.	.

Next	JJ
,	,
he	PRP
continued	VBD
to	TO
court	VB
the	DT
communists	NNS
--	:
many	JJ
of	IN
whom	WP
feel	VBP
betrayed	VBN
by	IN
the	DT
left-right	JJ
coalition	NN
's	POS
birth	NN
--	:
by	IN
bringing	VBG
into	IN
PASOK	NNP
a	DT
well-respected	JJ
Communist	NNP
Party	NNP
candidate	NN
.	.

For	IN
balance	NN
,	,
and	CC
in	IN
hopes	NNS
of	IN
gaining	VBG
some	DT
disaffected	JJ
centrist	JJ
votes	NNS
,	,
he	PRP
managed	VBD
to	TO
attract	VB
a	DT
former	JJ
New	NNP
Democracy	NNP
Party	NNP
representative	NN
and	CC
known	VBN
political	JJ
enemy	NN
of	IN
Mr.	NNP
Mitsotakis	NNP
.	.

Thus	RB
PASOK	NNP
heads	VBZ
for	IN
the	DT
polls	NNS
not	RB
only	RB
with	IN
diminished	VBN
scandal-stench	NN
,	,
but	CC
also	RB
with	IN
``	``
seals	NNS
of	IN
approval	NN
''	''
from	IN
representatives	NNS
of	IN
its	PRP$
harshest	JJS
accusers	NNS
.	.

Crucial	JJ
as	IN
these	DT
elections	NNS
are	VBP
for	IN
Greece	NNP
,	,
pressing	VBG
issues	NNS
of	IN
state	NN
are	VBP
getting	VBG
lost	VBN
in	IN
the	DT
shuffle	NN
.	.

The	DT
country	NN
's	POS
future	JJ
NATO	NNP
participation	NN
remains	VBZ
unsure	JJ
,	,
for	IN
instance	NN
.	.

Greece	NNP
also	RB
must	MD
revamp	VB
major	JJ
pieces	NNS
of	IN
legislation	NN
in	IN
preparation	NN
for	IN
the	DT
1992	CD
targets	NNS
of	IN
heightened	VBN
Common	NNP
Market	NNP
cooperation	NN
.	.

Greece	NNP
's	POS
bilateral	JJ
relations	NNS
with	IN
the	DT
U.S.	NNP
need	VBP
attention	NN
soon	RB
as	IN
well	RB
.	.

For	IN
one	CD
,	,
the	DT
current	JJ
accord	NN
concerning	VBG
U.S.	NNP
military	JJ
bases	NNS
in	IN
Greece	NNP
lapses	VBZ
in	IN
May	NNP
1990	CD
.	.

Negotiations	NNS
for	IN
a	DT
new	JJ
agreement	NN
were	VBD
frozen	VBN
before	IN
the	DT
June	NNP
elections	NNS
,	,
but	CC
the	DT
clock	NN
is	VBZ
running	VBG
.	.

Another	DT
matter	NN
of	IN
concern	NN
is	VBZ
the	DT
extradition	NN
of	IN
Mohammed	NNP
Rashid	NNP
,	,
a	DT
Palestinian	JJ
terrorist	NN
who	WP
is	VBZ
wanted	VBN
in	IN
the	DT
U.S.	NNP
for	IN
the	DT
1982	CD
bombing	NN
of	IN
a	DT
Pan	NNP
American	NNP
Airways	NNPS
flight	NN
.	.

The	DT
Greek	NNP
courts	NNS
have	VBP
decided	VBN
in	IN
favor	NN
of	IN
extradition	NN
in	IN
the	DT
Rashid	NNP
case	NN
,	,
but	CC
the	DT
matter	NN
awaits	VBZ
final	JJ
approval	NN
from	IN
Greece	NNP
's	POS
next	JJ
justice	NN
minister	NN
.	.

The	DT
Greeks	NNPS
seem	VBP
barely	RB
aware	JJ
of	IN
the	DT
importance	NN
of	IN
the	DT
case	NN
as	IN
a	DT
litmus	NN
test	NN
of	IN
whether	IN
Greece	NNP
will	MD
be	VB
counted	VBN
in	RB
or	CC
out	RB
for	IN
international	JJ
efforts	NNS
to	TO
combat	VB
terrorism	NN
.	.

That	IN
PASOK	NNP
could	MD
win	VB
the	DT
elections	NNS
outright	RB
is	VBZ
improbable	JJ
;	:
the	DT
Greek	JJ
press	NN
,	,
previously	RB
eager	JJ
to	TO
palm	VB
off	RP
PASOK	NNP
's	POS
line	NN
,	,
has	VBZ
turned	VBN
on	IN
Mr.	NNP
Papandreou	NNP
with	IN
a	DT
wild-eyed	JJ
vengeance	NN
.	.

Yet	RB
the	DT
possibility	NN
of	IN
another	DT
lash-up	JJ
government	NN
is	VBZ
all	RB
too	RB
real	JJ
.	.

If	IN
Mr.	NNP
Papandreou	NNP
becomes	VBZ
the	DT
major	JJ
opposition	NN
leader	NN
,	,
he	PRP
could	MD
hamstring	VB
a	DT
conservative-led	JJ
coalition	NN
.	.

Also	RB
,	,
he	PRP
could	MD
force	VB
new	JJ
elections	NNS
early	JJ
next	JJ
year	NN
by	IN
frustrating	VBG
the	DT
procedures	NNS
for	IN
the	DT
election	NN
of	IN
the	DT
president	NN
of	IN
the	DT
republic	NN
in	IN
March	NNP
.	.

New	NNP
Democracy	NNP
has	VBZ
once	RB
again	RB
glaringly	RB
underestimated	VBN
the	DT
opponent	NN
and	CC
linked	VBN
its	PRP$
own	JJ
prospects	NNS
to	TO
negative	JJ
reaction	NN
against	IN
PASOK	NNP
,	,
forgetting	VBG
to	TO
tend	VB
to	TO
either	CC
program	NN
clarity	NN
or	CC
the	DT
rectification	NN
of	IN
internal	JJ
squabbles	NNS
.	.

As	IN
for	IN
Mr.	NNP
Papandreou	NNP
?	.

He	PRP
's	VBZ
not	RB
exactly	RB
sitting	VBG
pretty	RB
at	IN
this	DT
stage	NN
.	.

But	CC
since	IN
he	PRP
is	VBZ
undoubtedly	RB
one	CD
of	IN
the	DT
most	RBS
proficient	JJ
bull	NN
slingers	NNS
who	WP
ever	RB
raked	VBD
muck	NN
,	,
it	PRP
seems	VBZ
far	RB
wiser	JJR
to	TO
view	VB
him	PRP
as	IN
sidelined	VBN
,	,
but	CC
certainly	RB
not	RB
yet	RB
eliminated	VBN
.	.

Mr.	NNP
Carpenter	NNP
,	,
a	DT
regional	JJ
correspondent	NN
for	IN
National	NNP
Review	NNP
,	,
has	VBZ
lived	VBN
in	IN
Athens	NNP
since	IN
1981	CD
.	.

U.S.	NNP
OFFICIALS	NNS
MOVED	VBD
to	TO
head	VB
off	RP
any	DT
repeat	NN
of	IN
Black	NNP
Monday	NNP
today	NN
following	VBG
Friday	NNP
's	POS
plunge	NN
in	IN
stock	NN
prices	NNS
.	.

Fed	NNP
Chairman	NNP
Greenspan	NNP
signaled	VBD
that	IN
the	DT
central	JJ
bank	NN
was	VBD
prepared	VBN
to	TO
inject	VB
massive	JJ
amounts	NNS
of	IN
money	NN
into	IN
the	DT
banking	NN
system	NN
to	TO
prevent	VB
a	DT
financial	JJ
crisis	NN
.	.

Other	JJ
U.S.	NNP
and	CC
foreign	JJ
officials	NNS
also	RB
mapped	VBN
out	RP
plans	NNS
,	,
though	IN
they	PRP
kept	VBD
their	PRP$
moves	NNS
quiet	JJ
to	TO
avoid	VB
making	VBG
the	DT
financial	JJ
markets	NNS
more	RBR
jittery	JJ
.	.

Friday	NNP
's	POS
sell-off	NN
was	VBD
triggered	VBN
by	IN
the	DT
collapse	NN
of	IN
UAL	NNP
's	POS
buy-out	NN
plan	NN
and	CC
a	DT
big	JJ
rise	NN
in	IN
producer	NN
prices	NNS
.	.

The	DT
Dow	NNP
Jones	NNP
industrials	NNS
skidded	VBD
190.58	CD
,	,
to	TO
2569.26	CD
.	.

The	DT
junk	NN
bond	NN
market	NN
came	VBD
to	TO
a	DT
standstill	NN
,	,
while	IN
Treasury	NN
bonds	NNS
soared	VBD
and	CC
the	DT
dollar	NN
fell	VBD
.	.

Japanese	JJ
stocks	NNS
dropped	VBD
early	JJ
Monday	NNP
,	,
but	CC
by	IN
late	JJ
morning	NN
were	VBD
turning	VBG
around	IN
.	.

The	DT
dollar	NN
was	VBD
trading	VBG
sharply	RB
lower	JJR
in	IN
Tokyo	NNP
.	.

Prospects	NNS
for	IN
a	DT
new	JJ
UAL	NNP
buy-out	NN
proposal	NN
appear	VBP
bleak	JJ
.	.

Many	JJ
banks	NNS
refused	VBD
to	TO
back	VB
the	DT
$	$
6.79	CD
billion	CD
transaction	NN
,	,
but	CC
bankers	NNS
said	VBD
it	PRP
was	VBD
not	RB
from	IN
any	DT
unwillingness	NN
to	TO
finance	VB
takeovers	NNS
.	.

The	DT
decision	NN
was	VBD
based	VBN
solely	RB
on	IN
problems	NNS
with	IN
the	DT
UAL	NNP
management-pilot	NN
plan	NN
,	,
they	PRP
said	VBD
.	.

The	DT
surge	NN
in	IN
producer	NN
prices	NNS
in	IN
September	NNP
followed	VBD
three	CD
months	NNS
of	IN
declines	NNS
,	,
but	CC
analysts	NNS
were	VBD
divided	VBN
on	IN
whether	IN
the	DT
0.9	CD
%	NN
jump	NN
signaled	VBD
a	DT
severe	JJ
worsening	NN
of	IN
inflation	NN
.	.

Also	RB
,	,
retail	JJ
sales	NNS
grew	VBD
0.5	CD
%	NN
last	JJ
month	NN
.	.

A	DT
capital-gains	JJ
tax	NN
cut	NN
was	VBD
removed	VBN
from	IN
the	DT
Senate	NNP
's	POS
deficit	NN
reduction	NN
bill	NN
,	,
but	CC
proponents	NNS
still	RB
hope	VB
to	TO
enact	VB
the	DT
cut	NN
this	DT
year	NN
.	.

Bush	NNP
wo	MD
n't	RB
press	VB
for	IN
a	DT
capital-gains	JJ
provision	NN
in	IN
the	DT
final	JJ
deficit	NN
bill	NN
when	WRB
House-Senate	NNP
conferees	NNS
meet	VBP
later	RB
this	DT
week	NN
.	.

General	NNP
Motors	NNPS
signaled	VBD
that	IN
up	IN
to	TO
five	CD
North	NNP
American	NNP
assembly	NN
plants	NNS
may	MD
close	VB
by	IN
the	DT
mid-1990s	CD
as	IN
it	PRP
tries	VBZ
to	TO
cut	VB
excess	JJ
capacity	NN
.	.

U.S.	NNP
car	NN
and	CC
truck	NN
sales	NNS
fell	VBD
12.6	CD
%	NN
in	IN
early	JJ
October	NNP
,	,
the	DT
first	JJ
sales	NNS
period	NN
of	IN
the	DT
1990-model	JJ
year	NN
,	,
dragged	VBD
down	IN
by	IN
a	DT
sharp	JJ
decline	NN
in	IN
GM	NNP
sales	NNS
.	.

Warner	NNP
and	CC
Sony	NNP
are	VBP
entangled	VBN
in	IN
a	DT
legal	JJ
battle	NN
over	IN
movie	NN
producers	NNS
Peter	NNP
Gruber	NNP
and	CC
Jon	NNP
Peters	NNP
.	.

The	DT
fight	NN
could	MD
set	VB
back	RP
Sony	NNP
's	POS
plans	NNS
to	TO
enter	VB
the	DT
U.S.	NNP
movie	NN
business	NN
.	.

Hooker	NNP
's	POS
U.S.	NNP
unit	NN
received	VBD
a	DT
$	$
409	CD
million	CD
bid	NN
for	IN
most	JJS
of	IN
its	PRP$
real-estate	NN
and	CC
shopping-center	NN
assets	NNS
from	IN
an	DT
investor	NN
group	NN
.	.

The	DT
offer	NN
does	VBZ
n't	RB
include	VB
Bonwit	NNP
Teller	NNP
or	CC
B.	NNP
Altman	NNP
.	.

The	DT
Boeing	NNP
strike	NN
is	VBZ
starting	VBG
to	TO
affect	VB
airlines	NNS
.	.

America	NNP
West	NNP
said	VBD
Friday	NNP
it	PRP
will	MD
postpone	VB
its	PRP$
new	JJ
service	NN
out	IN
of	IN
Houston	NNP
because	IN
of	IN
delays	NNS
in	IN
receiving	VBG
aircraft	NN
from	IN
Boeing	NNP
.	.

Saatchi	NNP
&	CC
Saatchi	NNP
would	MD
launch	VB
a	DT
management	NN
buy-out	NN
if	IN
a	DT
hostile	JJ
suitor	NN
emerged	VBD
,	,
an	DT
official	NN
said	VBD
.	.

British	NNP
Aerospace	NNP
and	CC
France	NNP
's	POS
Thomson-CSF	NNP
are	VBP
nearing	VBG
a	DT
pact	NN
to	TO
merge	VB
guided-missile	JJ
divisions	NNS
.	.

New	NNP
U.S.	NNP
steel-import	JJ
quotas	NNS
will	MD
give	VB
a	DT
bigger	JJR
share	NN
to	TO
developing	VBG
nations	NNS
that	WDT
have	VBP
relatively	RB
unsubsidized	JJ
steel	NN
industries	NNS
.	.

Japan	NNP
's	POS
steel	NN
quota	NN
will	MD
be	VB
cut	VBN
significantly	RB
.	.

Four	CD
ailing	VBG
S&Ls	NNS
were	VBD
sold	VBN
off	RP
by	IN
government	NN
regulators	NNS
,	,
but	CC
low	JJ
bids	NNS
prevented	VBD
the	DT
sale	NN
of	IN
a	DT
fifth	JJ
.	.

Markets	NNS
--	:

Stocks	NNS
:	:
Volume	NN
251,170,000	CD
shares	NNS
.	.

Dow	NNP
Jones	NNP
industrials	NNS
2569.26	CD
,	,
off	IN
190.58	CD
;	:
transportation	NN
1406.29	CD
,	,
off	IN
78.06	CD
;	:
utilities	NNS
211.96	CD
,	,
off	IN
7.29	CD
.	.

Bonds	NNS
:	:
Shearson	NNP
Lehman	NNP
Hutton	NNP
Treasury	NNP
index	NN
3421.29	CD
,	,
up	IN

Commodities	NNS
:	:
Dow	NNP
Jones	NNP
futures	NNS
index	NN
129.87	CD
,	,
up	IN
0.01	CD
;	:
spot	NN
index	NN
129.25	CD
,	,
up	IN
0.28	CD
.	.

Dollar	NN
:	:
142.10	CD
yen	NN
,	,
off	IN
2.07	CD
;	:
1.8740	CD
marks	NNS
,	,
off	IN
0.0343	CD
.	.

A	DT
federal	JJ
appeals	NNS
court	NN
in	IN
San	NNP
Francisco	NNP
ruled	VBD
that	IN
shareholders	NNS
ca	MD
n't	RB
hold	VB
corporate	JJ
officials	NNS
liable	JJ
for	IN
false	JJ
sales	NNS
projections	NNS
on	IN
new	JJ
products	NNS
if	IN
the	DT
news	NN
media	NNS
concurrently	RB
revealed	VBD
substantial	JJ
information	NN
about	IN
the	DT
product	NN
's	POS
flaws	NNS
.	.

The	DT
ruling	NN
stems	VBZ
from	IN
a	DT
1984	CD
suit	NN
filed	VBN
by	IN
shareholders	NNS
of	IN
Apple	NNP
Computer	NNP
Inc.	NNP
,	,
claiming	VBG
that	IN
company	NN
officials	NNS
misled	VBD
investors	NNS
about	IN
the	DT
expected	VBN
success	NN
of	IN
the	DT
Lisa	NNP
computer	NN
,	,
introduced	VBN
in	IN
1983	CD
.	.

Lawyers	NNS
specializing	VBG
in	IN
shareholder	NN
suits	NNS
said	VBD
they	PRP
are	VBP
concerned	VBN
that	IN
use	NN
of	IN
the	DT
``	``
press	NN
defense	NN
''	''
by	IN
corporations	NNS
may	MD
become	VB
popular	JJ
as	IN
a	DT
result	NN
of	IN
the	DT
ruling	NN
.	.

According	VBG
to	TO
the	DT
suit	NN
,	,
Apple	NNP
officials	NNS
created	VBD
public	JJ
excitement	NN
by	IN
touting	VBG
Lisa	NNP
as	IN
an	DT
office	NN
computer	NN
that	WDT
would	MD
revolutionize	VB
the	DT
workplace	NN
and	CC
be	VB
extremely	RB
successful	JJ
in	IN
its	PRP$
first	JJ
year	NN
.	.

The	DT
plaintiffs	NNS
also	RB
alleged	VBN
that	IN
prior	JJ
to	TO
the	DT
fanfare	NN
,	,
the	DT
company	NN
circulated	VBD
internal	JJ
memos	NNS
indicating	VBG
problems	NNS
with	IN
Lisa	NNP
.	.

The	DT
suit	NN
claimed	VBD
Apple	NNP
's	POS
stock	NN
climbed	VBD
to	TO
a	DT
high	JJ
of	IN
$	$
63.50	CD
a	DT
share	NN
on	IN
the	DT
basis	NN
of	IN
the	DT
company	NN
's	POS
optimistic	JJ
forecasts	NNS
.	.

But	CC
when	WRB
the	DT
company	NN
revealed	VBD
Lisa	NNP
's	POS
poor	JJ
sales	NNS
late	RB
in	IN
1983	CD
,	,
the	DT
stock	NN
plummeted	VBD
to	TO
a	DT
low	JJ
of	IN
$	$
17.37	CD
a	DT
share	NN
,	,
according	VBG
to	TO
the	DT
suit	NN
.	.

The	DT
shareholders	NNS
claimed	VBD
more	JJR
than	IN
$	$
150	CD
million	CD
in	IN
losses	NNS
.	.

In	IN
1987	CD
,	,
the	DT
San	NNP
Francisco	NNP
district	NN
court	NN
dismissed	VBD
the	DT
case	NN
largely	RB
because	IN
newspaper	NN
reports	NNS
had	VBD
sufficiently	RB
counterbalanced	VBN
the	DT
company	NN
's	POS
statements	NNS
by	IN
alerting	VBG
consumers	NNS
to	TO
Lisa	NNP
's	POS
problems	NNS
.	.

Late	JJ
last	JJ
month	NN
,	,
the	DT
appeals	NNS
court	NN
agreed	VBD
that	IN
most	JJS
of	IN
the	DT
case	NN
should	MD
be	VB
dismissed	VBN
.	.

However	RB
,	,
it	PRP
gave	VBD
the	DT
shareholders	NNS
the	DT
right	NN
to	TO
pursue	VB
a	DT
small	JJ
portion	NN
of	IN
their	PRP$
claim	NN
that	WDT
pertains	VBZ
to	TO
Lisa	NNP
's	POS
disk	NN
drive	NN
,	,
known	VBN
as	IN
Twiggy	NNP
.	.

The	DT
court	NN
ruled	VBD
that	IN
the	DT
news	NN
media	NNS
did	VBD
n't	RB
reveal	VB
Twiggy	NNP
's	POS
problems	NNS
at	IN
the	DT
time	NN
.	.

Lawyers	NNS
are	VBP
worried	VBN
about	IN
the	DT
ruling	NN
's	POS
implication	NN
in	IN
other	JJ
shareholder	NN
suits	NNS
but	CC
pointed	VBD
out	RP
that	IN
the	DT
court	NN
stressed	VBD
that	IN
the	DT
ruling	NN
should	MD
be	VB
regarded	VBN
as	IN
very	RB
specific	JJ
to	TO
the	DT
Apple	NNP
case	NN
.	.

``	``
The	DT
court	NN
was	VBD
careful	JJ
to	TO
say	VB
that	IN
the	DT
adverse	JJ
information	NN
appeared	VBD
in	IN
the	DT
very	RB
same	JJ
articles	NNS
and	CC
received	VBD
the	DT
same	JJ
attention	NN
as	IN
the	DT
company	NN
's	POS
statements	NNS
,	,
''	''
said	VBD
Patrick	NNP
Grannon	NNP
,	,
a	DT
Los	NNP
Angeles	NNP
lawyer	NN
at	IN
the	DT
firm	NN
of	IN
Greenfield	NNP
&	CC
Chimicles	NNP
,	,
which	WDT
was	VBD
n't	RB
involved	VBN
in	IN
the	DT
case	NN
.	.

``	``
The	DT
court	NN
is	VBZ
saying	VBG
that	IN
the	DT
adverse	JJ
facts	NNS
have	VBP
to	TO
be	VB
transferred	VBN
to	TO
the	DT
market	NN
with	IN
equal	JJ
intensity	NN
and	CC
credibility	NN
as	IN
the	DT
statements	NNS
of	IN
corporate	JJ
insiders	NNS
.	.
''	''

Shareholders	NNS
'	POS
attorneys	NNS
at	IN
the	DT
New	NNP
York	NNP
firm	NN
of	IN
Milberg	NNP
,	,
Weiss	NNP
,	,
Bershad	NNP
,	,
Specthrie	NNP
&	CC
Lerach	NNP
last	JJ
week	NN
petitioned	VBD
for	IN
a	DT
rehearing	NN
of	IN
the	DT
case	NN
.	.

They	PRP
wrote	VBD
:	:
``	``
The	DT
opinion	NN
establishes	VBZ
a	DT
new	JJ
rule	NN
of	IN
immunity	NN
--	:
that	IN
if	IN
a	DT
wide	JJ
variety	NN
of	IN
opinions	NNS
on	IN
a	DT
company	NN
's	POS
business	NN
are	VBP
publicly	RB
reported	VBN
,	,
the	DT
company	NN
can	MD
say	VB
anything	NN
without	IN
fear	NN
of	IN
securities	NNS
liability	NN
.	.
''	''

NFL	NNP
ORDERED	VBN
to	TO
pay	VB
$	$
5.5	CD
million	CD
in	IN
legal	JJ
fees	NNS
to	TO
defunct	VB

The	DT
National	NNP
Football	NNP
League	NNP
is	VBZ
considering	VBG
appealing	VBG
the	DT
ruling	NN
stemming	VBG
from	IN
the	DT
U.S.	NNP
Football	NNP
League	NNP
's	POS
largely	RB
unsuccessful	JJ
antitrust	JJ
suit	NN
against	IN
the	DT
NFL	NNP
.	.

A	DT
jury	NN
in	IN
1986	CD
agreed	VBD
with	IN
the	DT
USFL	NNP
's	POS
claims	NNS
that	IN
the	DT
NFL	NNP
monopolized	VBD
major	JJ
league	NN
football	NN
.	.

But	CC
the	DT
jury	NN
awarded	VBD
the	DT
USFL	NNP
only	RB
$	$
1	CD
in	IN
damages	NNS
,	,
trebled	VBD
because	IN
of	IN
the	DT
antitrust	JJ
claims	NNS
.	.

Last	JJ
week	NN
,	,
the	DT
U.S.	NNP
Court	NNP
of	IN
Appeals	NNPS
in	IN
New	NNP
York	NNP
upheld	VBD
a	DT
$	$
5.5	CD
million	CD
award	NN
of	IN
attorneys	NNS
fees	NNS
to	TO
the	DT
defunct	JJ
league	NN
.	.

Harvey	NNP
D.	NNP
Myerson	NNP
,	,
of	IN
Myerson	NNP
&	CC
Kuhn	NNP
,	,
then	RB
of	IN
Finley	NNP
,	,
Kumble	NNP
,	,
Wagner	NNP
,	,
Heine	NNP
,	,
Underberg	NNP
,	,
Manley	NNP
,	,
Myerson	NNP
&	CC
Casey	NNP
,	,
was	VBD
the	DT
lead	NN
trial	NN
lawyer	NN
,	,
and	CC
his	PRP$
new	JJ
firm	NN
pursued	VBD
the	DT
application	NN
appeal	NN
.	.

Douglas	NNP
R.	NNP
Pappas	NNP
of	IN
Myerson	NNP
&	CC
Kuhn	NNP
says	VBZ
about	IN
$	$
5.3	CD
million	CD
of	IN
the	DT
award	NN
goes	VBZ
directly	RB
to	TO
the	DT
USFL	NNP
to	TO
reimburse	VB
it	PRP
for	IN
fees	NNS
already	RB
paid	VBN
.	.

Myerson	NNP
&	CC
Kuhn	NNP
will	MD
get	VB
about	IN
$	$
260,000	CD
for	IN
the	DT
costs	NNS
of	IN
pressing	VBG
the	DT
application	NN
.	.

The	DT
federal	JJ
appeals	NNS
court	NN
held	VBD
that	IN
the	DT
nominal	JJ
damages	NNS
and	CC
the	DT
failure	NN
to	TO
prove	VB
all	DT
claims	NNS
did	VBD
n't	RB
exclude	VB
the	DT
USFL	NNP
from	IN
being	VBG
reimbursed	VBN
.	.

Antitrust	JJ
laws	NNS
provide	VBP
that	IN
injured	VBN
parties	NNS
may	MD
be	VB
reimbursed	VBN
for	IN
lawyers	NNS
'	POS
fees	NNS
.	.

But	CC
Shepard	NNP
Goldfein	NNP
,	,
an	DT
attorney	NN
for	IN
the	DT
NFL	NNP
,	,
says	VBZ
his	PRP$
client	NN
will	MD
consider	VB
asking	VBG
for	IN
another	DT
hearing	NN
or	CC
appealing	VBG
to	TO
the	DT
U.S.	NNP
Supreme	NNP
Court	NNP
.	.

Mr.	NNP
Goldfein	NNP
,	,
of	IN
Skadden	NNP
,	,
Arps	NNP
,	,
Slate	NNP
,	,
Meagher	NNP
&	CC
Flom	NNP
in	IN
New	NNP
York	NNP
,	,
says	VBZ
the	DT
ruling	NN
is	VBZ
wrong	JJ
and	CC
the	DT
fee	NN
award	NN
is	VBZ
excessive	JJ
because	IN
the	DT
USFL	NNP
lost	VBD
its	PRP$
major	JJ
claims	NNS
,	,
including	VBG
its	PRP$
contention	NN
that	IN
the	DT
NFL	NNP
restrained	JJ
trade	NN
through	IN
television	NN
contracts	NNS
.	.

``	``
The	DT
USFL	NNP
was	VBD
not	RB
the	DT
prevailing	VBG
party	NN
,	,
''	''
Mr.	NNP
Goldfein	NNP
insists	VBZ
.	.

HOUSTON-CALGARY	NNP
ALLIANCE	NNP
:	:

Fulbright	NNP
&	CC
Jaworski	NNP
of	IN
Houston	NNP
and	CC
Fenerty	NNP
,	,
Robertson	NNP
,	,
Fraser	NNP
&	CC
Hatch	NNP
of	IN
Calgary	NNP
,	,
Alberta	NNP
,	,
are	VBP
affiliating	VBG
to	TO
help	VB
serve	VB
their	PRP$
energy-industry	NN
clients	NNS
.	.

The	DT
affiliation	NN
is	VBZ
believed	VBN
to	TO
be	VB
the	DT
first	JJ
such	JJ
cross-border	JJ
arrangement	NN
among	IN
major	JJ
law	NN
firms	NNS
.	.

The	DT
firms	NNS
are	VBP
n't	RB
required	VBN
to	TO
refer	VB
work	NN
exclusively	RB
to	TO
each	DT
other	JJ
and	CC
remain	VB
separate	JJ
organizations	NNS
.	.

But	CC
they	PRP
will	MD
work	VB
together	RB
on	IN
energy	NN
-	:
,	,
environmental	JJ
-	:
and	CC
fair-trade-related	JJ
issues	NNS
and	CC
conduct	VB
seminars	NNS
on	IN
topics	NNS
of	IN
mutual	JJ
interest	NN
,	,
said	VBD
Gibson	NNP
Gayle	NNP
Jr.	NNP
of	IN
585-lawyer	NN
Fulbright	NNP
&	CC
Jaworski	NNP
.	.

In	IN
addition	NN
,	,
Fulbright	NNP
&	CC
Jaworski	NNP
's	POS
Washington	NNP
,	,
D.C.	NNP
,	,
office	NN
will	MD
play	VB
a	DT
key	JJ
role	NN
as	IN
the	DT
firms	NNS
work	VBP
together	RB
on	IN
regulatory	JJ
issues	NNS
,	,
particularly	RB
natural-gas	NN
exports	NNS
,	,
for	IN
their	PRP$
clients	NNS
.	.

The	DT
arrangement	NN
,	,
reached	VBN
after	IN
about	IN
eight	CD
months	NNS
of	IN
negotiations	NNS
,	,
grew	VBD
out	IN
of	IN
80-lawyer	NN
Fenerty	NNP
Robertson	NNP
's	POS
desire	NN
to	TO
develop	VB
ties	NNS
with	IN
a	DT
U.S.	NNP
firm	NN
in	IN
light	NN
of	IN
relaxed	VBN
trade	NN
barriers	NNS
between	IN
the	DT
U.S.	NNP
and	CC
Canada	NNP
,	,
said	VBD
Francis	NNP
M.	NNP
Saville	NNP
of	IN
Fenerty	NNP
Robertson	NNP
.	.

IN	IN
WHAT	WP
MAY	MD
SIGNAL	VB
a	DT
turnaround	NN
for	IN
asbestos	NN
manufacturers	NNS
,	,
W.R.	NNP
Grace	NNP
&	CC
Co.	NNP
won	VBD
a	DT
3	CD
1\/2-week	JJ
trial	NN
in	IN
Pittsburgh	NNP
over	IN
whether	IN
it	PRP
should	MD
be	VB
required	VBN
to	TO
remove	VB
asbestos	NN
fireproofing	NN
from	IN
a	DT
local	JJ
high	JJ
school	NN
.	.

Mount	NNP
Lebanon	NNP
High	NNP
School	NNP
,	,
near	IN
Pittsburgh	NNP
,	,
sought	VBD
$	$
21	CD
million	CD
in	IN
compensatory	JJ
damages	NNS
from	IN
Grace	NNP
,	,
arguing	VBG
that	IN
the	DT
asbestos	NN
,	,
which	WDT
can	MD
cause	VB
respiratory	JJ
diseases	NNS
and	CC
lung	NN
cancer	NN
,	,
posed	VBD
a	DT
risk	NN
to	TO
students	NNS
.	.

Grace	NNP
successfully	RB
contended	VBD
that	IN
removing	VBG
the	DT
fire	NN
retardant	NN
would	MD
pose	VB
a	DT
greater	JJR
health	NN
risk	NN
than	IN
leaving	VBG
it	PRP
alone	RB
.	.

A	DT
spokesman	NN
for	IN
the	DT
company	NN
said	VBD
the	DT
verdict	NN
is	VBZ
thought	VBN
to	TO
be	VB
the	DT
first	JJ
in	IN
favor	NN
of	IN
an	DT
asbestos	NN
manufacturer	NN
where	WRB
the	DT
plaintiff	NN
was	VBD
a	DT
school	NN
and	CC
the	DT
asbestos	NN
in	IN
question	NN
was	VBD
used	VBN
for	IN
fireproofing	VBG
.	.

FCC	NNP
COUNSEL	NN
JOINS	VBZ
FIRM	NN
:	:

Diane	NNP
S.	NNP
Killory	NNP
will	MD
join	VB
500-lawyer	NN
Morrison	NNP
&	CC
Foerster	NNP
as	IN
a	DT
partner	NN
in	IN
its	PRP$
Washington	NNP
,	,
D.C.	NNP
,	,
office	NN
in	IN
mid-November	NNP
.	.

She	PRP
will	MD
help	VB
develop	VB
the	DT
mass-media	NNS
practice	NN
of	IN
the	DT
San	NNP
Francisco-based	JJ
firm	NN
's	POS
communications	NNS
group	NN
.	.

Ms.	NNP
Killory	NNP
,	,
35	CD
years	NNS
old	JJ
,	,
resigned	VBD
as	IN
Federal	NNP
Communications	NNP
Commission	NNP
general	JJ
counsel	NN
early	RB
this	DT
month	NN
after	IN
nearly	RB
three	CD
years	NNS
in	IN
that	DT
post	NN
.	.

She	PRP
was	VBD
the	DT
first	JJ
woman	NN
to	TO
be	VB
appointed	VBN
FCC	NNP
general	JJ
counsel	NN
.	.

RICHARD	NNP
P.	NNP
MAGURNO	NNP
,	,
formerly	RB
Eastern	NNP
Airlines	NNP
'	POS
top	NN
lawyer	NN
,	,
joined	VBD
the	DT
New	NNP
York	NNP
law	NN
firm	NN
of	IN
Lord	NNP
Day	NNP
&	CC
Lord	NNP
,	,
Barrett	NNP
Smith	NNP
as	IN
a	DT
partner	NN
.	.

Mr.	NNP
Magurno	NNP
,	,
45	CD
,	,
spent	VBD
17	CD
years	NNS
at	IN
the	DT
Miami	NNP
airline	NN
unit	NN
of	IN
Houston-based	JJ
Texas	NNP
Air	NNP
Corp.	NNP
and	CC
was	VBD
named	VBN
general	JJ
counsel	NN
in	IN
1984	CD
.	.

He	PRP
left	VBD
the	DT
company	NN
in	IN
1987	CD
.	.

Mr.	NNP
Magurno	NNP
said	VBD
he	PRP
will	MD
split	VB
his	PRP$
time	NN
between	IN
the	DT
200-lawyer	NN
firm	NN
's	POS
offices	NNS
in	IN
Washington	NNP
,	,
D.C.	NNP
,	,
and	CC
New	NNP
York	NNP
,	,
with	IN
specialties	NNS
in	IN
aviation	NN
and	CC
labor	NN
law	NN
.	.

Apple	NNP
Computer	NNP
Inc.	NNP
said	VBD
it	PRP
will	MD
offer	VB
cash	NN
rebates	NNS
on	IN
several	JJ
of	IN
its	PRP$
machines	NNS
from	IN
Oct.	NNP
14	CD
to	TO
Dec.	NNP
31.	CD
,	,
as	IN
part	NN
of	IN
a	DT
holiday-season	JJ
sales	NNS
promotion	NN
.	.

Apple	NNP
will	MD
offer	VB
a	DT
$	$
150	CD
rebate	NN
on	IN
its	PRP$
Apple	NNP
IIGS	NNP
with	IN
any	DT
Apple	NNP
Monitor	NNP
and	CC
disk	NN
drive	NN
;	:
$	$
200	CD
on	IN
the	DT
basic	JJ
Macintosh	NNP
Plus	NNP
central	JJ
processing	NN
unit	NN
;	:
$	$
250	CD
on	IN
the	DT
Macintosh	NNP
SE	NNP
central	JJ
processing	NN
unit	NN
;	:
$	$
250	CD
on	IN
the	DT
Macintosh	NNP
SE\/30	NNP
cpu	NN
,	,
and	CC
$	$
300	CD
on	IN
a	DT
Macintosh	NNP
IIcx	NNP
with	IN
any	DT
Apple	NNP
video	NN
card	NN
and	CC
Apple	NNP
monitor	NN
.	.

The	DT
rebates	NNS
,	,
as	IN
a	DT
percentage	NN
of	IN
the	DT
retail	JJ
cost	NN
of	IN
the	DT
cpu	NN
of	IN
each	DT
system	NN
,	,
amount	NN
to	TO
6	CD
%	NN
to	TO
13	CD
%	NN
.	.

The	DT
company	NN
is	VBZ
also	RB
offering	VBG
a	DT
free	JJ
trial	NN
of	IN
its	PRP$
computers	NNS
to	TO
consumers	NNS
who	WP
qualify	VBP
for	IN
its	PRP$
credit	NN
cards	NNS
or	CC
leases	NNS
.	.

Matsushita	NNP
Electric	NNP
Industrial	NNP
Co.	NNP
of	IN
Japan	NNP
and	CC
Siemens	NNP
AG	NNP
of	IN
West	NNP
Germany	NNP
announced	VBD
they	PRP
have	VBP
completed	VBN
a	DT
100	CD
million-mark	JJ
(	(
$	$
52.2	CD
million	CD
)	)
joint	JJ
venture	NN
to	TO
produce	VB
electronics	NNS
parts	NNS
.	.

In	IN
the	DT
venture	NN
's	POS
first	JJ
fiscal	JJ
year	NN
,	,
Siemens	NNP
will	MD
hold	VB
74.9	CD
%	NN
of	IN
the	DT
venture	NN
and	CC
a	DT
Matsushita	NNP
subsidiary	NN
,	,
Matsushita	NNP
Electronic	NNP
Components	NNPS
Co.	NNP
,	,
25.1	CD
%	NN
.	.

A	DT
basic	JJ
agreement	NN
between	IN
the	DT
two	CD
companies	NNS
was	VBD
announced	VBN
in	IN
June	NNP
.	.

The	DT
new	JJ
company	NN
is	VBZ
to	TO
be	VB
called	VBN
Siemens	NNP
Matsushita	NNP
Components	NNPS
G.m.b	NNP
.	.
H	NN
.	.

It	PRP
will	MD
have	VB
its	PRP$
headquarters	NNS
in	IN
Munich	NNP
.	.

Matsushita	NNP
's	POS
share	NN
in	IN
the	DT
venture	NN
will	MD
rise	VB
to	TO
35	CD
%	NN
Oct.	NNP
1	CD
,	,
1990	CD
,	,
and	CC
to	TO
50	CD
%	NN
the	DT
following	VBG
Oct.	NNP
1	CD
.	.

Siemens	NNP
will	MD
retain	VB
majority	NN
voting	VBG
rights	NNS
.	.

The	DT
parent	NN
companies	NNS
forecast	VBP
sales	NNS
for	IN
the	DT
venture	NN
of	IN
around	IN
750	CD
million	CD
marks	NNS
for	IN
its	PRP$
first	JJ
fiscal	JJ
year	NN
,	,
Matsushita	NNP
said	VBD
.	.

Sales	NNS
are	VBP
expected	VBN
to	TO
rise	VB
to	TO
one	CD
billion	CD
marks	NNS
after	IN
four	CD
years	NNS
.	.

The	DT
company	NN
will	MD
have	VB
production	NN
facilities	NNS
in	IN
West	NNP
Germany	NNP
,	,
Austria	NNP
,	,
France	NNP
and	CC
Spain	NNP
.	.

Roger	NNP
Rosenblatt	NNP
,	,
editor	NN
of	IN
U.S.	NNP
News	NNP
&	CC
World	NNP
Report	NNP
,	,
resigned	VBD
Friday	NNP
from	IN
the	DT
weekly	JJ
news	NN
magazine	NN
.	.

Mr.	NNP
Rosenblatt	NNP
said	VBD
he	PRP
resigned	VBD
because	IN
of	IN
difficulties	NNS
with	IN
commuting	VBG
between	IN
his	PRP$
home	NN
in	IN
New	NNP
York	NNP
and	CC
the	DT
magazine	NN
's	POS
editorial	NN
offices	NNS
in	IN
Washington	NNP
.	.

``	``
Frankly	NNP
,	,
I	PRP
missed	VBD
my	PRP$
family	NN
,	,
''	''
said	VBD
Mr.	NNP
Rosenblatt	NNP
.	.

In	IN
Mr.	NNP
Rosenblatt	NNP
's	POS
tenure	NN
,	,
the	DT
magazine	NN
's	POS
advertising	NN
pages	NNS
and	CC
circulation	NN
have	VBP
grown	VBN
significantly	RB
.	.

But	CC
at	IN
2.3	CD
million	CD
weekly	RB
paid	VBN
circulation	NN
,	,
U.S.	NNP
News	NNP
still	RB
ranks	VBZ
third	JJ
behind	IN
Time	NNP
Warner	NNP
Inc.	NNP
's	POS
Time	NNP
magazine	NN
,	,
with	IN
4.4	CD
million	CD
circulation	NN
,	,
and	CC
Washington	NNP
Post	NNP
Co.	NNP
's	POS
Newsweek	NNP
,	,
with	IN
3.3	CD
million	CD
circulation	NN
.	.

Mortimer	NNP
B.	NNP
Zuckerman	NNP
,	,
chairman	NN
and	CC
editor	NN
in	IN
chief	NN
,	,
said	VBD
Mr.	NNP
Rosenblatt	NNP
would	MD
be	VB
succeeded	VBN
starting	VBG
today	NN
by	IN
Michael	NNP
Ruby	NNP
,	,
the	DT
magazine	NN
's	POS
executive	NN
editor	NN
,	,
and	CC
Merrill	NNP
McLoughlin	NNP
,	,
a	DT
senior	JJ
writer	NN
.	.

Mr.	NNP
Ruby	NNP
and	CC
Ms.	NNP
McLoughlin	NNP
are	VBP
married	VBN
to	TO
each	DT
other	JJ
.	.

Mr.	NNP
Zuckerman	NNP
said	VBD
his	PRP$
magazine	NN
would	MD
maintain	VB
its	PRP$
editorial	NN
format	NN
,	,
which	WDT
is	VBZ
a	DT
mix	NN
of	IN
analysis	NN
and	CC
trend	NN
stories	NNS
with	IN
service-oriented	JJ
,	,
how-to	JJ
articles	NNS
.	.

Mr.	NNP
Rosenblatt	NNP
,	,
a	DT
senior	JJ
writer	NN
at	IN
Time	NNP
magazine	NN
before	IN
joining	VBG
U.S.	NNP
News	NNP
&	CC
World	NNP
Report	NNP
,	,
said	VBD
he	PRP
had	VBD
numerous	JJ
job	NN
offers	NNS
from	IN
other	JJ
magazines	NNS
while	IN
he	PRP
was	VBD
editor	NN
.	.

The	DT
offers	NNS
were	VBD
to	TO
work	VB
as	IN
a	DT
writer	NN
,	,
not	RB
an	DT
editor	NN
.	.

He	PRP
said	VBD
he	PRP
will	MD
now	RB
consider	VB
those	DT
offers	NNS
.	.

Avions	NNP
Marcel	NNP
Dassault-Breguet	NNP
Aviation	NNP
S.A.	NNP
said	VBD
group	NN
profit	NN
before	IN
taxes	NNS
and	CC
contributions	NNS
to	TO
employee	NN
profit-sharing	NNS
soared	VBD
97	CD
%	NN
to	TO
839	CD
million	CD
francs	NNS
(	(
$	$
129.6	CD
million	CD
)	)
in	IN
the	DT
first	JJ
half	DT
of	IN
1989	CD
from	IN
425	CD
million	CD
francs	NNS
a	DT
year	NN
earlier	RBR
.	.

The	DT
French	NNP
aircraft	NN
group	NN
pointed	VBD
out	RP
,	,
however	RB
,	,
that	IN
financial	JJ
results	NNS
from	IN
its	PRP$
sector	NN
of	IN
industry	NN
are	VBP
frequently	RB
erratic	JJ
because	IN
of	IN
irregular	JJ
cash	NN
flow	NN
from	IN
large	JJ
contracts	NNS
.	.

It	PRP
noted	VBD
,	,
for	IN
example	NN
,	,
that	IN
group	NN
revenue	NN
for	IN
the	DT
first	JJ
half	DT
was	VBD
8.734	CD
billion	CD
francs	NNS
,	,
down	RB
about	IN
12	CD
%	NN
from	IN
9.934	CD
billion	CD
francs	NNS
a	DT
year	NN
earlier	RBR
.	.

Still	RB
,	,
it	PRP
said	VBD
it	PRP
expects	VBZ
sales	NNS
for	IN
all	DT
of	IN
1989	CD
to	TO
be	VB
on	IN
the	DT
order	NN
of	IN
20	CD
billion	CD
francs	NNS
,	,
reflecting	VBG
anticipated	VBN
billings	NNS
for	IN
two	CD
large	JJ
contracts	NNS
in	IN
the	DT
second	JJ
half	DT
of	IN
the	DT
year	NN
.	.

For	IN
all	DT
of	IN
1988	CD
,	,
Dassault	NNP
had	VBD
group	NN
profit	NN
of	IN
428	CD
million	CD
francs	NNS
on	IN
revenue	NN
of	IN
18.819	CD
billion	CD
francs	NNS
.	.

The	DT
group	NN
has	VBZ
n't	RB
yet	RB
released	VBN
earnings	NNS
figures	NNS
for	IN
the	DT
first	JJ
half	DT
of	IN
1989	CD
,	,
nor	CC
has	VBZ
it	PRP
made	VBN
a	DT
detailed	VBN
forecast	NN
of	IN
its	PRP$
full-year	JJ
earnings	NNS
.	.

Keystone	NNP
Consolidated	NNP
Industries	NNPS
Inc.	NNP
expects	VBZ
to	TO
report	VB
earnings	NNS
before	IN
extraordinary	JJ
tax	NN
benefits	NNS
of	IN
about	IN
$	$
1.5	CD
million	CD
,	,
or	CC
about	IN
41	CD
cents	NNS
a	DT
share	NN
,	,
for	IN
the	DT
third	JJ
quarter	NN
,	,
compared	VBN
with	IN
a	DT
loss	NN
last	JJ
year	NN
,	,
said	VBD
Glenn	NNP
R.	NNP
Simmons	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
.	.

After	IN
a	DT
tax	NN
benefit	NN
of	IN
about	IN
$	$
780,000	CD
,	,
Keystone	NNP
expects	VBZ
to	TO
report	VB
net	JJ
income	NN
of	IN
$	$
2.3	CD
million	CD
,	,
or	CC
about	IN
62	CD
cents	NNS
a	DT
share	NN
,	,
Mr.	NNP
Simmons	NNP
said	VBD
.	.

For	IN
third	JJ
quarter	NN
last	JJ
year	NN
,	,
Keystone	NNP
reported	VBD
a	DT
$	$
1	CD
million	CD
loss	NN
from	IN
continuing	VBG
operations	NNS
and	CC
a	DT
$	$
200,000	CD
loss	NN
from	IN
discontinued	VBN
operations	NNS
,	,
for	IN
a	DT
net	JJ
loss	NN
of	IN
$	$
1.2	CD
million	CD
.	.

Revenue	NN
for	IN
the	DT
latest	JJS
third	JJ
quarter	NN
was	VBD
about	IN
$	$
70.5	CD
million	CD
,	,
up	RB
10	CD
%	NN
from	IN
$	$
63.6	CD
million	CD
last	JJ
year	NN
,	,
he	PRP
said	VBD
.	.

Mr.	NNP
Simmons	NNP
said	VBD
the	DT
results	NNS
signal	VBP
a	DT
turnaround	NN
for	IN
the	DT
maker	NN
of	IN
wire	NN
and	CC
wire	NN
products	NNS
,	,
which	WDT
has	VBZ
struggled	VBN
to	TO
remain	VB
competitive	JJ
in	IN
the	DT
face	NN
of	IN
lower-priced	JJ
,	,
imported	VBN
steel	NN
.	.

A	DT
new	JJ
$	$
46	CD
million	CD
steel	NN
rod	NN
minimill	NN
,	,
which	WDT
got	VBD
off	RP
to	TO
a	DT
rocky	JJ
start	NN
in	IN
early	JJ
1988	CD
,	,
now	RB
is	VBZ
running	VBG
efficiently	RB
and	CC
a	DT
new	JJ
management	NN
team	NN
is	VBZ
more	RBR
heavily	RB
marketing	VBG
Keystone	NN
's	POS
products	NNS
,	,
Mr.	NNP
Simmons	NNP
said	VBD
.	.

As	IN
a	DT
result	NN
,	,
the	DT
company	NN
hopes	VBZ
to	TO
report	VB
net	JJ
income	NN
for	IN
the	DT
year	NN
of	IN
about	IN
$	$
11.6	CD
million	CD
,	,
or	CC
about	IN
$	$
3.10	CD
to	TO
$	$
3.15	CD
a	DT
share	NN
,	,
compared	VBN
with	IN
a	DT
net	JJ
loss	NN
of	IN
$	$
24.4	CD
million	CD
last	JJ
year	NN
,	,
after	IN
a	DT
loss	NN
from	IN
discontinued	VBN
operations	NNS
of	IN
$	$
18.4	CD
million	CD
.	.

Revenue	NN
for	IN
1989	CD
is	VBZ
expected	VBN
to	TO
be	VB
about	IN
$	$
300	CD
million	CD
,	,
up	IN
about	IN
21	CD
%	NN
from	IN
$	$
247.3	CD
million	CD
in	IN
1988	CD
.	.

For	IN
the	DT
nine	CD
months	NNS
ended	VBD
Sept.	NNP
30	CD
,	,
Keystone	NNP
expects	VBZ
to	TO
report	VB
net	JJ
income	NN
of	IN
$	$
9.3	CD
milion	NN
,	,
or	CC
about	IN
$	$
2.53	CD
a	DT
share	NN
,	,
after	IN
an	DT
extraordinary	JJ
gain	NN
from	IN
$	$
3.2	CD
million	CD
in	IN
tax	NN
benefits	NNS
.	.

Last	JJ
year	NN
,	,
the	DT
company	NN
had	VBD
a	DT
net	JJ
loss	NN
of	IN
$	$
6.5	CD
million	CD
,	,
including	VBG
a	DT
$	$
6.1	CD
million	CD
loss	NN
from	IN
continuing	VBG
operations	NNS
and	CC
a	DT
$	$
400,000	CD
loss	NN
from	IN
discontinued	VBN
operations	NNS
.	.

Revenue	NN
for	IN
the	DT
nine	CD
months	NNS
is	VBZ
expected	VBN
to	TO
be	VB
about	IN
$	$
230.5	CD
million	CD
,	,
up	IN
about	IN
21	CD
%	NN
from	IN
$	$
190.4	CD
million	CD
last	JJ
year	NN
.	.

Mr.	NNP
Simmons	NNP
said	VBD
Keystone	NNP
's	POS
new	JJ
mill	NN
is	VBZ
expected	VBN
to	TO
produce	VB
about	IN
585,000	CD
tons	NNS
of	IN
steel	NN
rods	NNS
this	DT
year	NN
,	,
up	IN
from	IN
413,000	CD
tons	NNS
in	IN
1988	CD
.	.

Production	NN
at	IN
the	DT
mill	NN
has	VBZ
exceeded	VBN
the	DT
ability	NN
of	IN
Keystone	NNP
's	POS
casting	NN
operation	NN
to	TO
supply	VB
it	PRP
,	,
he	PRP
said	VBD
,	,
which	WDT
will	MD
force	VB
Keystone	NNP
to	TO
purchase	VB
billet	NN
,	,
or	CC
unfinished	JJ
steel	NN
bars	NNS
,	,
from	IN
outside	IN
the	DT
company	NN
during	IN
the	DT
fourth	JJ
quarter	NN
and	CC
next	JJ
year	NN
.	.

Keystone	NNP
will	MD
have	VB
to	TO
consider	VB
expanding	VBG
its	PRP$
casting	NN
operation	NN
,	,
at	IN
an	DT
estimated	VBN
cost	NN
of	IN
$	$
8	CD
million	CD
to	TO
$	$
10	CD
million	CD
,	,
within	IN
the	DT
next	JJ
18	CD
to	TO
24	CD
months	NNS
,	,
Mr.	NNP
Simmons	NNP
said	VBD
.	.

Under	IN
Robert	NNP
W.	NNP
Singer	NNP
,	,
who	WP
was	VBD
named	VBN
president	NN
and	CC
chief	NN
operating	VBG
officer	NN
last	JJ
year	NN
,	,
Keystone	NNP
has	VBZ
expanded	VBN
its	PRP$
sales	NNS
force	NN
to	TO
about	IN
20	CD
people	NNS
from	IN
about	IN
15	CD
and	CC
hopes	VBZ
to	TO
expand	VB
its	PRP$
sales	NNS
from	IN
the	DT
middle	JJ
portion	NN
of	IN
the	DT
country	NN
toward	IN
the	DT
East	NNP
and	CC
West	NNP
coasts	NNS
.	.

``	``
Prior	RB
to	TO
a	DT
year	NN
ago	IN
,	,
Keystone	NNP
was	VBD
an	DT
order-taker	NN
.	.

Now	RB
I	PRP
think	VBP
we	PRP
have	VBP
a	DT
group	NN
of	IN
marketing	VBG
people	NNS
who	WP
are	VBP
out	IN
selling	VBG
to	TO
retailers	NNS
and	CC
wholesalers	NNS
,	,
''	''
Mr.	NNP
Simmons	NNP
said	VBD
.	.

Still	RB
,	,
he	PRP
said	VBD
,	,
the	DT
100-year-old	JJ
company	NN
plans	VBZ
to	TO
continue	VB
its	PRP$
premium-priced	JJ
strategy	NN
for	IN
its	PRP$
distinctive	JJ
brand	NN
of	IN
red-tipped	JJ
wire	NN
fencing	NN
and	CC
other	JJ
products	NNS
.	.

The	DT
company	NN
claims	VBZ
a	DT
40	CD
%	NN
share	NN
of	IN
the	DT
U.S.	NNP
field	NN
fence	NN
business	NN
,	,
a	DT
35	CD
%	NN
share	NN
of	IN
poultry	NN
netting	VBG
sales	NNS
and	CC
a	DT
30	CD
%	NN
share	NN
of	IN
barbed	VBN
wire	NN
sales	NNS
.	.

Freeport-McMoRan	NNP
Inc.	NNP
said	VBD
a	DT
temporary	JJ
cessation	NN
of	IN
operations	NNS
at	IN
its	PRP$
Sunshine	NNP
Bridge	NNP
uranium-recovery	JJ
facility	NN
in	IN
Donaldsonville	NNP
,	,
La.	NNP
,	,
will	MD
result	VB
in	IN
slight	JJ
earnings	NNS
improvement	NN
to	TO
both	PDT
the	DT
company	NN
and	CC
its	PRP$
Freeport-McMoRan	NNP
Resource	NNP
Partners	NNPS
Limited	NNP
Partnership	NNP
unit	NN
.	.

The	DT
company	NN
did	VBD
n't	RB
elaborate	JJ
.	.

The	DT
diversified	JJ
energy	NN
and	CC
minerals	NNS
concern	NN
said	VBD
that	IN
a	DT
depressed	VBN
uranium	NN
market	NN
is	VBZ
responsible	JJ
for	IN
the	DT
temporary	JJ
mothballing	NN
of	IN
the	DT
plant	NN
,	,
but	CC
that	IN
the	DT
plant	NN
can	MD
be	VB
reactivated	VBN
quickly	RB
when	WRB
the	DT
market	NN
improves	VBZ
.	.

More	JJR
than	IN
400,000	CD
pounds	NNS
of	IN
uranium	NN
a	DT
year	NN
have	VBP
been	VBN
produced	VBN
at	IN
the	DT
facility	NN
during	IN
the	DT
past	JJ
seven	CD
years	NNS
.	.

A	DT
second	JJ
uranium-recovery	JJ
plant	NN
at	IN
Uncle	NNP
Sam	NNP
,	,
La.	NNP
,	,
that	WDT
produces	VBZ
more	JJR
than	IN
700,000	CD
pounds	NNS
of	IN
uranium	NN
annually	RB
,	,
will	MD
continue	VB
to	TO
operate	VB
.	.

Freeport-McMoRan	NNP
said	VBD
the	DT
shutdown	NN
wo	MD
n't	RB
affect	VB
sales	JJ
volumes	NNS
under	IN
long-term	JJ
sales	NNS
contracts	NNS
of	IN
its	PRP$
Freeport	NNP
Uranium	NNP
Recovery	NNP
Co.	NNP
unit	NN
,	,
but	CC
will	MD
reduce	VB
the	DT
amount	NN
of	IN
product	NN
sold	VBN
on	IN
the	DT
spot	NN
market	NN
.	.

Freeport-McMoRan	NNP
Resource	NNP
Partners	NNPS
,	,
as	IN
owner	NN
of	IN
the	DT
uranium-recovery	JJ
technology	NN
,	,
receives	VBZ
royalty	NN
payments	NNS
.	.

Business	NNP
Week	NNP
subscribers	NNS
may	MD
hear	VB
this	DT
week	NN
's	POS
issue	NN
talking	VBG
back	RB
to	TO
them	PRP
.	.

A	DT
four-page	JJ
ad	NN
from	IN
Texas	NNP
Instruments	NNPS
Inc.	NNP
,	,
running	VBG
in	IN
approximately	RB
140,000	CD
issues	NNS
of	IN
the	DT
Oct.	NNP
20	CD
``	``
Corporate	NNP
Elite	NNP
''	''
issue	NN
of	IN
the	DT
McGraw-Hill	NNP
Inc.	NNP
publication	NN
,	,
contains	VBZ
a	DT
speech	NN
synthesizer	NN
laminated	VBN
between	IN
two	CD
of	IN
the	DT
pages	NNS
.	.

Readers	NNS
who	WP
pull	VBP
off	RP
a	DT
piece	NN
of	IN
tape	NN
and	CC
press	VB
a	DT
switch	NN
will	MD
hear	VB
a	DT
tiny	JJ
--	:
but	CC
distinctly	RB
human-sounding	JJ
--	:
voice	NN
announce	VB
,	,
``	``
I	PRP
am	VBP
the	DT
talking	VBG
chip	NN
,	,
''	''
as	IN
it	PRP
launches	VBZ
into	IN
a	DT
15-second	JJ
discourse	NN
on	IN
its	PRP$
own	JJ
attributes	NNS
.	.

The	DT
talking	VBG
chip	NN
is	VBZ
n't	RB
cheap	JJ
--	:
the	DT
per-ad	JJ
cost	NN
to	TO
Texas	NNP
Instruments	NNPS
is	VBZ
about	IN
$	$
4	CD
,	,
and	CC
that	DT
's	VBZ
without	IN
adding	VBG
in	RP
Business	NNP
Week	NNP
's	POS
charge	NN
--	:
but	CC
Texas	NNP
Instruments	NNPS
believes	VBZ
it	PRP
is	VBZ
a	DT
first	JJ
.	.

Previous	JJ
efforts	NNS
have	VBP
included	VBN
musical	JJ
ads	NNS
,	,
featuring	VBG
simple	JJ
tone-generating	JJ
chips	NNS
that	WDT
play	VBP
a	DT
tune	NN
,	,
but	CC
the	DT
voice	NN
synthesizer	NN
in	IN
this	DT
effort	NN
is	VBZ
much	RB
more	RBR
sophisticated	JJ
,	,
with	IN
none	NN
of	IN
the	DT
robotic	JJ
flatness	NN
that	IN
one	NN
hears	VBZ
,	,
for	IN
example	NN
,	,
when	WRB
calling	VBG
telephone	NN
directory	NN
services	NNS
.	.

And	CC
for	IN
those	DT
who	WP
miss	VBP
the	DT
message	NN
the	DT
first	JJ
time	NN
around	IN
,	,
not	RB
to	TO
worry	VB
:	:
Three	CD
tiny	JJ
batteries	NNS
provide	VBP
enough	JJ
juice	NN
for	IN
as	RB
many	JJ
as	IN
650	CD
replays	NNS
.	.

Lomas	NNP
Financial	NNP
Corp.	NNP
,	,
Dallas	NNP
,	,
said	VBD
it	PRP
will	MD
ask	VB
a	DT
U.S.	NNP
bankruptcy	NN
court	NN
to	TO
allow	VB
it	PRP
to	TO
hire	VB
Lazard	NNP
Freres	NNP
&	CC
Co.	NNP
to	TO
help	VB
it	PRP
sell	VB
its	PRP$
leasing	NN
unit	NN
.	.

Lomas	NNP
,	,
assisted	VBN
by	IN
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
,	,
has	VBZ
been	VBN
trying	VBG
to	TO
sell	VB
its	PRP$
Equitable	NNP
Lomas	NNP
Leasing	NNP
Co.	NNP
for	IN
several	JJ
months	NNS
,	,
apparently	RB
without	IN
success	NN
.	.

The	DT
real	JJ
estate	NN
and	CC
mortgage	NN
banking	NN
concern	NN
had	VBD
hoped	VBN
to	TO
use	VB
proceeds	NNS
from	IN
the	DT
sale	NN
to	TO
reduce	VB
its	PRP$
debt	NN
.	.

Without	IN
cash	NN
from	IN
asset	NN
sales	NNS
and	CC
unable	JJ
to	TO
reach	VB
a	DT
new	JJ
bank-credit	NN
agreement	NN
,	,
Lomas	NNP
defaulted	VBD
on	IN
$	$
145	CD
million	CD
in	IN
notes	NNS
that	WDT
became	VBD
due	JJ
Sept.	NNP
1	CD
.	.

It	PRP
filed	VBD
for	IN
protection	NN
from	IN
creditors	NNS
under	IN
Chapter	NN
11	CD
of	IN
the	DT
federal	JJ
Bankruptcy	NNP
Code	NNP
Sept.	NNP
24	CD
to	TO
give	VB
it	PRP
additional	JJ
time	NN
to	TO
work	VB
on	IN
a	DT
plan	NN
to	TO
restructure	VB
its	PRP$
$	$
1.45	CD
billion	CD
in	IN
senior	JJ
debt	NN
.	.

Lomas	NNP
said	VBD
Merrill	NNP
Lynch	NNP
,	,
which	WDT
owns	VBZ
bonds	NNS
and	CC
equity	NN
in	IN
Lomas	NNP
,	,
could	MD
n't	RB
continue	VB
as	IN
Lomas	NNP
's	POS
investment	NN
banker	NN
because	IN
it	PRP
is	VBZ
also	RB
a	DT
creditor	NN
.	.

It	PRP
said	VBD
it	PRP
chose	VBD
Lazard	NNP
in	IN
part	NN
because	IN
of	IN
Lazard	NNP
's	POS
offices	NNS
in	IN
Europe	NNP
and	CC
Japan	NNP
,	,
where	WRB
investors	NNS
might	MD
be	VB
interested	JJ
in	IN
a	DT
U.S.	NNP
leasing	NN
company	NN
.	.

Canadian	NNP
Imperial	NNP
Bank	NNP
of	IN
Commerce	NNP
said	VBD
it	PRP
will	MD
increase	VB
its	PRP$
loan-loss	NN
provisions	NNS
to	TO
cover	VB
all	PDT
its	PRP$
loans	NNS
to	TO
lesser	JJR
developed	VBN
countries	NNS
,	,
except	IN
Mexico	NNP
,	,
resulting	VBG
in	IN
an	DT
after-tax	JJ
charge	NN
to	TO
1989	CD
earnings	NNS
of	IN
300	CD
million	CD
Canadian	JJ
dollars	NNS
(	(
US$	$
255	CD
million	CD
)	)
.	.

Don	NNP
Bowder	NNP
,	,
senior	JJ
vice	NN
president	NN
and	CC
chief	NN
accountant	NN
,	,
said	VBD
the	DT
bank	NN
's	POS
strong	JJ
earnings	NNS
enable	VBP
it	PRP
to	TO
be	VB
the	DT
first	JJ
major	JJ
Canadian	JJ
bank	NN
to	TO
set	VB
aside	RB
provisions	NNS
covering	VBG
all	PDT
its	PRP$
C$	$
1.17	CD
billion	CD
in	IN
non-Mexican	JJ
LDC	NNP
debt	NN
.	.

``	``
It	PRP
eliminates	VBZ
the	DT
continuing	VBG
uncertainty	NN
with	IN
respect	NN
to	TO
the	DT
ultimate	JJ
value	NN
of	IN
the	DT
loans	NNS
,	,
''	''
he	PRP
said	VBD
.	.

The	DT
bank	NN
said	VBD
about	IN
C$	$
525	CD
million	CD
will	MD
be	VB
added	VBN
to	TO
its	PRP$
existing	VBG
LDC	NNP
and	CC
general	JJ
loss	NN
provisions	NNS
in	IN
its	PRP$
fourth	JJ
quarter	NN
,	,
ending	VBG
Oct.	NNP
31	CD
.	.

Mr.	NNP
Bowder	NNP
said	VBD
the	DT
C$	$
300	CD
million	CD
charge	NN
to	TO
earnings	NNS
would	MD
amount	VB
to	TO
about	IN
C$	$
1.34	CD
a	DT
share	NN
.	.

The	DT
bank	NN
's	POS
net	JJ
income	NN
for	IN
the	DT
nine	CD
months	NNS
ended	VBD
July	NNP
31	CD
was	VBD
C$	$
577	CD
million	CD
,	,
or	CC
C$	$
3.10	CD
a	DT
share	NN
.	.

Mr.	NNP
Bowder	NNP
said	VBD
the	DT
bank	NN
will	MD
restructure	VB
its	PRP$
C$	$
604	CD
million	CD
of	IN
Mexican	JJ
debt	NN
,	,
of	IN
which	WDT
C$	$
255	CD
million	CD
is	VBZ
in	IN
Mexican	JJ
notes	NNS
secured	VBN
by	IN
U.S.	NNP
government	NN
bonds	NNS
.	.

The	DT
bank	NN
has	VBZ
a	DT
45	CD
%	NN
reserve	NN
against	IN
the	DT
remaining	VBG
C$	$
349	CD
million	CD
of	IN
Mexican	JJ
debt	NN
and	CC
expects	VBZ
to	TO
swap	VB
that	IN
for	IN
other	JJ
Mexican	JJ
notes	NNS
supported	VBN
by	IN
U.S.	NNP
Treasury	NNP
zero-coupon	NN
bonds	NNS
.	.

Mr.	NNP
Bowder	NNP
said	VBD
the	DT
bank	NN
's	POS
experience	NN
with	IN
LDC	NNP
debt	NN
has	VBZ
been	VBN
``	``
painful	JJ
''	''
and	CC
this	DT
latest	JJS
move	NN
represents	VBZ
the	DT
final	JJ
phase	NN
of	IN
a	DT
program	NN
begun	VBN
seven	CD
years	NNS
ago	IN
to	TO
reduce	VB
its	PRP$
exposure	NN
through	IN
provisioning	VBG
,	,
debt	NN
sales	NNS
and	CC
debt	NN
swaps	NNS
.	.

He	PRP
said	VBD
the	DT
bank	NN
will	MD
no	RB
longer	RB
participate	VB
in	IN
LDC	NNP
sovereign	JJ
lending	NN
,	,
but	CC
will	MD
support	VB
trade	NN
financing	NN
and	CC
other	JJ
transactions	NNS
that	WDT
meet	VBP
the	DT
bank	NN
's	POS
standards	NNS
.	.

The	DT
carnage	NN
among	IN
takeover	NN
stocks	NNS
Friday	NNP
does	VBZ
n't	RB
mean	VB
the	DT
end	NN
of	IN
mega-mergers	NNS
but	CC
simply	RB
marks	VBZ
the	DT
start	NN
of	IN
a	DT
less	RBR
ambitious	JJ
game	NN
,	,
Wall	NNP
Street	NNP
's	POS
big-time	JJ
deal	NN
makers	NNS
say	VBP
.	.

Suitors	NNS
from	IN
now	RB
on	IN
are	VBP
more	RBR
likely	JJ
to	TO
be	VB
expansion-minded	JJ
companies	NNS
,	,
rather	RB
than	IN
raiders	NNS
or	CC
debt-happy	JJ
financiers	NNS
.	.

And	CC
they	PRP
will	MD
be	VB
launching	VBG
lower-priced	JJ
and	CC
perhaps	RB
fewer	JJR
deals	NNS
,	,
now	RB
that	IN
it	PRP
's	VBZ
tougher	JJR
to	TO
finance	VB
them	PRP
.	.

This	DT
is	VBZ
an	DT
ominous	JJ
sign	NN
for	IN
a	DT
stock	NN
market	NN
that	WDT
lately	RB
has	VBZ
been	VBN
fueled	VBN
by	IN
takeover	NN
speculation	NN
and	CC
bidding	NN
wars	NNS
for	IN
companies	NNS
that	WDT
put	VBP
themselves	PRP
up	IN
for	IN
sale	NN
.	.

Whenever	WRB
the	DT
1980s	CD
merger	NN
boom	NN
seems	VBZ
to	TO
be	VB
stalling	VBG
,	,
shock	NN
waves	NNS
ripple	VBP
through	IN
the	DT
stock	NN
market	NN
.	.

``	``
The	DT
market	NN
is	VBZ
overvalued	VBN
,	,
not	RB
cheap	JJ
,	,
''	''
says	VBZ
Alan	NNP
Gaines	NNP
of	IN
the	DT
New	NNP
York	NNP
money-management	NN
firm	NN
Gaines	NNP
Berland	NNP
.	.

He	PRP
recently	RB
began	VBD
increasing	VBG
his	PRP$
cash	NN
position	NN
to	TO
45	CD
%	NN
of	IN
his	PRP$
portfolio	NN
.	.

``	``
I	PRP
look	VBP
at	IN
where	WRB
deals	NNS
can	MD
get	VB
done	VBN
,	,
''	''
he	PRP
says	VBZ
,	,
``	``
and	CC
they	PRP
're	VBP
not	RB
getting	VBG
done	VBN
''	''
at	IN
current	JJ
prices	NNS
.	.

Lenders	NNS
are	VBP
growing	VBG
increasingly	RB
nervous	JJ
about	IN
debt-financed	JJ
takeovers	NNS
,	,
investment	NN
bankers	NNS
say	VBP
.	.

``	``
You	PRP
had	VBD
a	DT
week	NN
of	IN
a	DT
deteriorating	VBG
junk-bond	NN
market	NN
that	WDT
ran	VBD
smack	RB
into	IN
the	DT
news	NN
on	IN
Friday	NNP
about	IN
what	WP
appeared	VBD
to	TO
be	VB
happening	VBG
to	TO
the	DT
bank	NN
debt	NN
market	NN
,	,
''	''
says	VBZ
Steven	NNP
Rattner	NNP
,	,
a	DT
partner	NN
and	CC
merger	NN
specialist	NN
with	IN
Lazard	NNP
Freres	NNP
&	CC
Co	NNP
.	.

Trading	NN
dried	VBD
up	RP
Friday	NNP
in	IN
the	DT
market	NN
for	IN
high-yield	JJ
junk	NN
bonds	NNS
,	,
often	RB
used	VBN
to	TO
finance	VB
takeovers	NNS
.	.

It	PRP
was	VBD
the	DT
latest	JJS
in	IN
a	DT
series	NN
of	IN
setbacks	NNS
for	IN
the	DT
junk	NN
bond	NN
market	NN
,	,
where	WRB
prices	NNS
began	VBD
weakening	VBG
last	JJ
month	NN
after	IN
Campeau	NNP
hit	VBD
a	DT
cash	NN
crunch	NN
.	.

And	CC
banks	NNS
appear	VBP
to	TO
be	VB
taking	VBG
an	DT
increasingly	RB
skeptical	JJ
view	NN
of	IN
requests	NNS
for	IN
high-risk	JJ
takeover	NN
loans	NNS
.	.

The	DT
group	NN
trying	VBG
to	TO
buy	VB
UAL	NNP
announced	VBD
Friday	NNP
that	IN
it	PRP
could	MD
n't	RB
arrange	VB
the	DT
$	$
7.2	CD
billion	CD
in	IN
bank	NN
loans	NNS
it	PRP
needs	VBZ
to	TO
buy	VB
the	DT
parent	NN
of	IN
United	NNP
Airlines	NNPS
for	IN
$	$
300	CD
a	DT
share	NN
.	.

Takeover-stock	JJ
traders	NNS
today	NN
will	MD
be	VB
scrambling	VBG
to	TO
learn	VB
of	IN
any	DT
UAL	NNP
developments	NNS
,	,
and	CC
other	JJ
takeover	NN
stocks	NNS
are	VBP
likely	JJ
to	TO
trade	VB
in	IN
sympathy	NN
.	.

Investment	NN
bankers	NNS
representing	VBG
the	DT
buy-out	NN
group	NN
and	CC
UAL	NNP
's	POS
board	NN
spent	VBD
a	DT
frantic	JJ
weekend	NN
trying	VBG
to	TO
hammer	VB
out	RP
new	JJ
terms	NNS
that	WDT
would	MD
be	VB
more	RBR
acceptable	JJ
to	TO
the	DT
banks	NNS
.	.

After	IN
UAL	NNP
,	,
the	DT
stock	NN
viewed	VBN
as	IN
most	RBS
vulnerable	JJ
is	VBZ
American	NNP
Airlines	NNPS
'	POS
parent	NN
AMR	NNP
,	,
the	DT
target	NN
of	IN
a	DT
$	$
120-a-share	JJ
takeover	NN
proposal	NN
from	IN
New	NNP
York	NNP
real	JJ
estate	NN
developer	NN
Donald	NNP
Trump	NNP
.	.

Trading	NN
in	IN
AMR	NNP
shares	NNS
was	VBD
suspended	VBN
shortly	RB
after	IN
3	CD
p.m.	NN
EDT	NNP
Friday	NNP
and	CC
did	VBD
n't	RB
resume	VB
.	.

Before	IN
the	DT
halt	NN
,	,
AMR	NNP
last	RB
traded	VBD
at	IN
98	CD
5\/8	CD
.	.

Late	JJ
Friday	NNP
night	NN
,	,
the	DT
London	NNP
office	NN
of	IN
Jefferies	NNP
&	CC
Co.	NNP
,	,
a	DT
Los	NNP
Angeles	NNP
securities	NNS
firm	NN
,	,
traded	VBD
AMR	NNP
shares	NNS
at	IN
prices	NNS
as	RB
low	RB
as	IN
80	CD
.	.

Similarly	RB
,	,
Delta	NNP
Air	NNP
Lines	NNPS
and	CC
USAir	NNP
Group	NNP
dropped	VBD
10.1	CD
%	NN
and	CC
8.5	CD
%	NN
,	,
respectively	RB
,	,
on	IN
Friday	NNP
and	CC
could	MD
weaken	VB
further	RB
.	.

Over	IN
the	DT
weeked	NN
,	,
however	RB
,	,
two	CD
developments	NNS
in	IN
other	JJ
deals	NNS
indicated	VBD
that	IN
commerical	JJ
banks	NNS
and	CC
Wall	NNP
Street	NNP
firms	NNS
still	RB
are	VBP
willing	JJ
to	TO
commit	VB
billions	NNS
of	IN
dollars	NNS
to	TO
finance	VB
takeover	NN
bids	NNS
launched	VBN
by	IN
major	JJ
companies	NNS
.	.

Vitro	NNP
S.A.	NNP
,	,
a	DT
major	JJ
Mexican	NNP
glass	NN
maker	NN
,	,
said	VBD
yesterday	NN
that	IN
it	PRP
agreed	VBD
to	TO
buy	VB
Anchor	NNP
Glass	NNP
Container	NNP
in	IN
a	DT
tender	NN
offer	NN
for	IN
$	$
21.25	CD
a	DT
share	NN
,	,
sweetened	VBN
from	IN
the	DT
original	JJ
$	$
20-a-share	JJ
offer	NN
Vitro	NNP
launched	VBD
two	CD
months	NNS
ago	IN
.	.

On	IN
Friday	NNP
,	,
Anchor	NNP
shares	NNS
fell	VBD
1	CD
1\/4	CD
to	TO
close	VB
at	IN
18	CD
1\/2	CD
.	.

For	IN
the	DT
broader	JJR
market	NN
,	,
the	DT
greatest	JJS
significance	NN
of	IN
the	DT
Vitro-Anchor	NNP
deal	NN
may	MD
be	VB
that	IN
it	PRP
was	VBD
put	VBN
together	RB
late	JJ
Friday	NNP
night	NN
--	:
after	IN
the	DT
market	NN
rout	NN
--	:
and	CC
involves	VBZ
a	DT
$	$
155	CD
million	CD
temporary	JJ
``	``
bridge	NN
''	''
loan	NN
from	IN
Donaldson	NNP
,	,
Lufkin	NNP
&	CC
Jenrette	NNP
Securities	NNPS
and	CC
a	DT
$	$
139	CD
million	CD
loan	NN
from	IN
Security	NNP
Pacific	NNP
National	NNP
Bank	NNP
.	.

Moreover	RB
,	,
to	TO
complete	VB
the	DT
entire	JJ
Anchor	NNP
Glass	NNP
purchase	NN
and	CC
refinance	VB
existing	VBG
debt	NN
,	,
Donaldson	NNP
said	VBD
it	PRP
is	VBZ
``	``
highly	RB
confident	JJ
''	''
that	IN
it	PRP
will	MD
be	VB
able	JJ
to	TO
sell	VB
$	$
400	CD
million	CD
of	IN
junk	NN
bonds	NNS
for	IN
Vitro	NNP
,	,
despite	IN
the	DT
current	JJ
disarray	NN
in	IN
the	DT
junk	NN
bond	NN
market	NN
.	.

Donaldson	NNP
's	POS
statement	NN
is	VBZ
n't	RB
merely	RB
an	DT
idle	JJ
boast	NN
,	,
because	IN
those	DT
bonds	NNS
will	MD
have	VB
to	TO
be	VB
sold	VBN
before	IN
Donaldson	NNP
's	POS
bridge	NN
loan	NN
can	MD
be	VB
paid	VBN
back	RB
.	.

Security	NNP
Pacific	NNP
,	,
meanwhile	RB
,	,
said	VBD
it	PRP
expects	VBZ
to	TO
arrange	VB
$	$
430	CD
million	CD
in	IN
bank	NN
loans	NNS
for	IN
Vitro	NNP
.	.

In	IN
another	DT
takeover	NN
battle	NN
,	,
a	DT
spokesman	NN
for	IN
McCaw	NNP
Cellular	NNP
Communications	NNP
said	VBD
yesterday	NN
that	IN
McCaw	NNP
has	VBZ
been	VBN
advised	VBN
by	IN
three	CD
commercial	JJ
banks	NNS
that	IN
they	PRP
remain	VBP
``	``
highly	RB
confident	JJ
''	''
they	PRP
can	MD
arrange	VB
$	$
4.5	CD
billion	CD
of	IN
bank	NN
loans	NNS
for	IN
McCaw	NNP
's	POS
tender	JJ
offer	NN
for	IN
about	IN
45	CD
%	NN
of	IN
LIN	NNP
Broadcasting	NNP
,	,
``	``
notwithstanding	IN
recent	JJ
events	NNS
.	.
''	''

McCaw	NNP
is	VBZ
offering	VBG
$	$
125	CD
a	DT
share	NN
for	IN
22	CD
million	CD
LIN	NNP
shares	NNS
,	,
thereby	RB
challenging	VBG
LIN	NNP
's	POS
proposal	NN
to	TO
spin	VB
off	RP
its	PRP$
television	NN
properties	NNS
,	,
pay	VB
shareholders	NNS
a	DT
$	$
20-a-share	JJ
special	JJ
dividend	NN
and	CC
combine	VB
its	PRP$
cellular-telephone	JJ
operations	NNS
with	IN
BellSouth	NNP
's	POS
cellular	JJ
business	NN
.	.

On	IN
Friday	NNP
,	,
LIN	NNP
shares	NNS
were	VBD
among	IN
the	DT
few	JJ
takeover	NN
issues	NNS
that	WDT
did	VBD
n't	RB
fall	VB
much	RB
,	,
dropping	VBG
5	CD
1\/2	CD
,	,
or	CC
4.9	CD
%	NN
,	,
to	TO
close	VB
at	IN
107	CD
1\/2	CD
.	.

Traders	NNS
and	CC
investment	NN
bankers	NNS
said	VBD
LIN	NNP
shares	NNS
were	VBD
n't	RB
hurt	VBN
much	RB
because	IN
BellSouth	NNP
is	VBZ
viewed	VBN
as	IN
a	DT
well-financed	JJ
corporate	JJ
buyer	NN
unlikely	JJ
to	TO
be	VB
affected	VBN
by	IN
skittishness	NN
among	IN
bankers	NNS
or	CC
bond	NN
buyers	NNS
.	.

Investment	NN
bankers	NNS
interviewed	VBN
over	IN
the	DT
weekend	NN
see	VBP
a	DT
silver	NN
lining	VBG
for	IN
the	DT
merger	NN
business	NN
in	IN
the	DT
stock-market	NN
drop	NN
.	.

Potential	JJ
bidders	NNS
for	IN
companies	NNS
``	``
were	VBD
saying	VBG
that	IN
things	NNS
were	VBD
beginning	VBG
to	TO
look	VB
expensive	JJ
,	,
''	''
says	VBZ
Mr.	NNP
Rattner	NNP
of	IN
Lazard	NNP
.	.

``	``
Nothing	NN
makes	VBZ
things	NNS
look	VB
cheaper	JJR
than	IN
a	DT
200-point	JJ
drop	NN
in	IN
the	DT
Dow	NNP
,	,
''	''
Mr.	NNP
Rattner	NNP
says	VBZ
.	.

``	``
Just	RB
as	IN
there	EX
are	VBP
people	NNS
waiting	VBG
to	TO
become	VB
bargain	NN
hunters	NNS
in	IN
the	DT
stock	NN
market	NN
,	,
there	EX
are	VBP
people	NNS
waiting	VBG
to	TO
become	VB
bargain	NN
hunters	NNS
in	IN
the	DT
deal	NN
market	NN
.	.
''	''

Investment	NN
bankers	NNS
expect	VBP
most	JJS
of	IN
those	DT
bargain	NN
hunters	NNS
to	TO
be	VB
well-heeled	JJ
corporations	NNS
.	.

``	``
In	IN
the	DT
past	NN
,	,
corporate	JJ
buyers	NNS
were	VBD
often	RB
discouraged	VBN
from	IN
making	VBG
bids	NNS
because	IN
of	IN
competition	NN
from	IN
LBO	NNP
firms	NNS
,	,
which	WDT
were	VBD
often	RB
prepared	VBN
to	TO
outbid	VB
''	''
the	DT
corporations	NNS
,	,
says	VBZ
J.	NNP
Tomilson	NNP
Hill	NNP
,	,
head	NN
of	IN
mergers	NNS
and	CC
acquisitions	NNS
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
.	.

Now	RB
,	,
``	``
corporate	JJ
buyers	NNS
should	MD
be	VB
willing	JJ
to	TO
re-enter	VB
the	DT
acquisition	NN
market	NN
because	IN
the	DT
competition	NN
from	IN
junkbond-financed	JJ
buyers	NNS
has	VBZ
been	VBN
reduced	VBN
.	.
''	''

Many	JJ
takeover	NN
stocks	NNS
plunged	VBD
Friday	NNP
,	,
as	IN
speculators	NNS
retained	VBD
their	PRP$
confidence	NN
in	IN
corporate	JJ
buyers	NNS
but	CC
fled	VBD
from	IN
the	DT
socalled	VBN
whisper	NN
stocks	NNS
,	,
the	DT
targets	NNS
of	IN
rumored	VBN
deals	NNS
.	.

Columbia	NNP
Pictures	NNPS
Entertainment	NNP
,	,
which	WDT
has	VBZ
agreed	VBN
to	TO
a	DT
friendly	JJ
$	$
27-a-share	JJ
bid	NN
from	IN
Sony	NNP
of	IN
Japan	NNP
,	,
fell	VBD
only	RB
1\/8	CD
to	TO
close	VB
at	IN
26	CD
5\/8	CD
.	.

But	CC
several	JJ
stocks	NNS
long	RB
rumored	VBN
to	TO
be	VB
ripe	JJ
for	IN
a	DT
takeover	NN
or	CC
restructuring	VBG
fell	VBD
10	CD
%	NN
or	CC
more	JJR
.	.

They	PRP
include	VBP
USX	NNP
,	,
down	IN
11.7	CD
%	NN
;	:
Upjohn	NNP
,	,
down	IN
11.1	CD
%	NN
;	:
Campbell	NNP
Soup	NNP
,	,
down	IN
11	CD
%	NN
;	:
Paramount	NNP
Communications	NNPS
,	,
off	IN
10.3	CD
%	NN
;	:
Woolworth	NNP
,	,
down	IN
10.2	CD
%	NN
;	:
Delta	NNP
Air	NNP
Lines	NNPS
,	,
down	IN
10.1	CD
%	NN
,	,
and	CC
MCA	NNP
,	,
down	IN
9.7	CD
%	NN
.	.

The	DT
market	NN
--	:
and	CC
investment	NN
bankers	NNS
--	:
are	VBP
even	RB
less	JJR
sanguine	NN
about	IN
companies	NNS
that	WDT
have	VBP
had	VBN
at	IN
least	JJS
one	CD
bid	NN
,	,
merger	NN
agreement	NN
or	CC
restructuring	VBG
plan	NN
fall	VB
through	RP
already	RB
.	.

Given	VBN
the	DT
weakness	NN
in	IN
both	PDT
the	DT
junk	NN
bond	NN
market	NN
and	CC
the	DT
stock	NN
market	NN
,	,
traders	NNS
fear	VBP
that	IN
these	DT
transactions	NNS
may	MD
be	VB
revised	VBN
yet	RB
again	RB
.	.

Examples	NNS
include	VBP
Kollmorgen	NNP
,	,
whose	WP$
agreement	NN
to	TO
be	VB
acquired	VBN
for	IN
$	$
25	CD
a	DT
share	NN
by	IN
Vernitron	NNP
collapsed	VBD
last	JJ
month	NN
.	.

Kollmorgen	NNP
shares	NNS
fell	VBD
nearly	RB
20	CD
%	NN
on	IN
Friday	NNP
to	TO
close	VB
at	IN
12	CD
7\/8	CD
.	.

Ramada	NNP
,	,
which	WDT
first	RB
delayed	VBD
and	CC
then	RB
shelved	VBD
a	DT
$	$
400	CD
million	CD
junk	NN
bond	NN
sale	NN
that	WDT
was	VBD
designed	VBN
to	TO
help	VB
finance	VB
a	DT
restructuring	VBG
,	,
fell	VBD
15.6	CD
%	NN
to	TO
close	VB
at	IN
9	CD
1\/2	CD
.	.

Ramada	NNP
has	VBZ
said	VBN
it	PRP
hopes	VBZ
to	TO
propose	VB
a	DT
new	JJ
restructuring	VBG
plan	NN
but	CC
has	VBZ
n't	RB
indicated	VBN
when	WRB
it	PRP
will	MD
do	VB
so	RB
.	.

Shares	NNS
of	IN
American	NNP
Medical	NNP
International	NNP
,	,
which	WDT
agreed	VBD
last	JJ
week	NN
to	TO
accept	VB
a	DT
lower	JJR
price	NN
from	IN
a	DT
buy-out	NN
group	NN
that	WDT
includes	VBZ
First	NNP
Boston	NNP
Corp.	NNP
and	CC
the	DT
Pritzker	NNP
family	NN
of	IN
Chicago	NNP
,	,
fell	VBD
15.8	CD
%	NN
on	IN
Friday	NNP
to	TO
close	VB
at	IN
20	CD
.	.

The	DT
buy-out	NN
group	NN
is	VBZ
offering	VBG
$	$
26.50	CD
a	DT
share	NN
for	IN
63	CD
million	CD
American	NNP
Medical	NNP
shares	NNS
,	,
down	IN
from	IN
its	PRP$
offer	NN
in	IN
July	NNP
of	IN
$	$
28	CD
a	DT
share	NN
for	IN
68.8	CD
million	CD
shares	NNS
.	.

But	CC
investment	NN
bankers	NNS
say	VBP
the	DT
market	NN
may	MD
have	VB
oversold	VB
some	DT
takeover-related	JJ
stocks	NNS
.	.

Hilton	NNP
Hotels	NNPS
,	,
for	IN
example	NN
,	,
was	VBD
among	IN
the	DT
worst-hit	JJ
issues	NNS
,	,
falling	VBG
20.2	CD
%	NN
to	TO
close	VB
at	IN
85	CD
,	,
down	IN
21	CD
1\/2	CD
on	IN
Friday	NNP
.	.

Hilton	NNP
currently	RB
is	VBZ
soliciting	VBG
bids	NNS
for	IN
a	DT
sale	NN
of	IN
part	NN
or	CC
all	DT
of	IN
its	PRP$
hotel	NN
and	CC
casino	NN
businesses	NNS
.	.

People	NNS
familiar	JJ
with	IN
Hilton	NNP
said	VBD
over	IN
the	DT
weekend	NN
that	IN
the	DT
depth	NN
of	IN
the	DT
sell-off	NN
in	IN
Hilton	NNP
shares	NNS
was	VBD
unwarranted	JJ
because	IN
none	NN
of	IN
the	DT
likely	JJ
buyers	NNS
would	MD
be	VB
dependent	JJ
on	IN
junk-bond	JJ
financing	NN
.	.

However	RB
,	,
they	PRP
conceded	VBD
that	IN
some	DT
potential	JJ
bidders	NNS
would	MD
rely	VB
on	IN
bank	NN
loans	NNS
and	CC
would	MD
be	VB
hurt	VBN
if	IN
the	DT
troubles	NNS
of	IN
the	DT
UAL	NNP
buy-out	NN
group	NN
signified	VBD
a	DT
general	JJ
unwillingness	NN
among	IN
banks	NNS
to	TO
provide	VB
credit	NN
for	IN
debt-financed	JJ
takeovers	NNS
.	.

Hilton	NNP
officials	NNS
said	VBD
they	PRP
were	VBD
n't	RB
worried	VBN
about	IN
the	DT
drop	NN
in	IN
the	DT
company	NN
's	POS
stock	NN
.	.

William	NNP
Lebo	NNP
,	,
Hilton	NNP
's	POS
general	JJ
counsel	NN
,	,
said	VBD
plans	NNS
to	TO
consider	VB
a	DT
sale	NN
of	IN
the	DT
company	NN
or	CC
some	DT
of	IN
its	PRP$
assets	NNS
are	VBP
``	``
on	IN
track	NN
''	''
for	IN
what	WP
has	VBZ
been	VBN
described	VBN
previously	RB
as	IN
``	``
a	DT
slow	JJ
and	CC
deliberate	JJ
process	NN
.	.
''	''

``	``
I	PRP
ca	MD
n't	RB
believe	VB
that	IN
any	DT
potential	JJ
buyer	NN
for	IN
Hilton	NNP
would	MD
be	VB
affected	VBN
by	IN
one	CD
day	NN
's	POS
trading	NN
,	,
''	''
Mr.	NNP
Lebo	NNP
said	VBD
.	.

But	CC
the	DT
stock	NN
market	NN
as	IN
a	DT
whole	NN
,	,
bolstered	VBD
as	IN
it	PRP
is	VBZ
by	IN
takeover	NN
speculation	NN
,	,
remains	VBZ
vulnerable	JJ
to	TO
any	DT
further	JJ
pullback	NN
by	IN
takeover	NN
financiers	NNS
,	,
both	DT
in	IN
the	DT
junkbond	NN
market	NN
and	CC
among	IN
commercial	JJ
banks	NNS
.	.

For	IN
debt-ridden	JJ
suitors	NNS
,	,
``	``
the	DT
takeover	NN
game	NN
has	VBZ
been	VBN
over	IN
for	IN
some	DT
time	NN
,	,
''	''
says	VBZ
New	NNP
York	NNP
money	NN
manager	NN
Neil	NNP
Weisman	NNP
of	IN
Chilmark	NNP
Capital	NNP
,	,
who	WP
has	VBZ
been	VBN
keeping	VBG
85	CD
%	NN
of	IN
his	PRP$
portfolio	NN
in	IN
cash	NN
.	.

``	``
The	DT
market	NN
is	VBZ
just	RB
waking	VBG
up	RP
to	TO
that	DT
point	NN
.	.
''	''

Pauline	NNP
Yoshihashi	NNP
in	IN
Los	NNP
Angeles	NNP
contributed	VBD
to	TO
this	DT
column	NN
.	.

Of	IN
all	PDT
the	DT
one-time	JJ
expenses	NNS
incurred	VBN
by	IN
a	DT
corporation	NN
or	CC
professional	JJ
firm	JJ
,	,
few	JJ
are	VBP
larger	JJR
or	CC
longer	JJR
term	NN
than	IN
the	DT
purchase	NN
of	IN
real	JJ
estate	NN
or	CC
the	DT
signing	NN
of	IN
a	DT
commercial	JJ
lease	NN
.	.

To	TO
take	VB
full	JJ
advantage	NN
of	IN
the	DT
financial	JJ
opportunities	NNS
in	IN
this	DT
commitment	NN
,	,
however	RB
,	,
the	DT
corporation	NN
or	CC
professional	JJ
firm	NN
must	MD
do	VB
more	RBR
than	IN
negotiate	VB
the	DT
best	JJS
purchase	NN
price	NN
or	CC
lease	NN
terms	NNS
.	.

It	PRP
must	MD
also	RB
evaluate	VB
the	DT
real-estate	NN
market	NN
in	IN
the	DT
chosen	VBN
location	NN
from	IN
a	DT
new	JJ
perspective	NN
.	.

Specifically	RB
,	,
it	PRP
must	MD
understand	VB
how	WRB
real-estate	NN
markets	NNS
overreact	VBP
to	TO
shifts	NNS
in	IN
regional	JJ
economies	NNS
and	CC
then	RB
take	VBP
advantage	NN
of	IN
these	DT
opportunities	NNS
.	.

When	WRB
a	DT
regional	JJ
economy	NN
catches	VBZ
cold	NN
,	,
the	DT
local	JJ
real-estate	NN
market	NN
gets	VBZ
pneumonia	NN
.	.

In	IN
other	JJ
words	NNS
,	,
real-estate	NN
market	NN
indicators	NNS
,	,
such	JJ
as	IN
building	NN
permits	NNS
and	CC
leasing	NN
activity	NN
,	,
plummet	VBP
much	RB
further	RB
than	IN
a	DT
local	JJ
economy	NN
in	IN
recession	NN
.	.

This	DT
was	VBD
seen	VBN
in	IN
the	DT
late	JJ
1960s	CD
in	IN
Los	NNP
Angeles	NNP
and	CC
the	DT
mid-1970s	CD
in	IN
New	NNP
York	NNP
.	.

But	CC
the	DT
reverse	NN
is	VBZ
also	RB
true	JJ
:	:
When	WRB
a	DT
region	NN
's	POS
economy	NN
rebounds	VBZ
from	IN
a	DT
slowdown	NN
,	,
these	DT
real-estate	NN
indicators	NNS
will	MD
rebound	VB
far	RB
faster	RBR
than	IN
the	DT
improving	VBG
economy	NN
.	.

Why	WRB
do	VBP
local	JJ
real-estate	NN
markets	NNS
overreact	VB
to	TO
regional	JJ
economic	JJ
cycles	NNS
?	.

Because	IN
real-estate	NN
purchases	NNS
and	CC
leases	NNS
are	VBP
such	JJ
major	JJ
long-term	JJ
commitments	NNS
that	IN
most	JJS
companies	NNS
and	CC
individuals	NNS
make	VBP
these	DT
decisions	NNS
only	RB
when	WRB
confident	JJ
of	IN
future	JJ
economic	JJ
stability	NN
and	CC
growth	NN
.	.

Metropolitan	NNP
Detroit	NNP
was	VBD
written	VBN
off	RP
economically	RB
during	IN
the	DT
early	JJ
1980s	CD
,	,
as	IN
the	DT
domestic	JJ
auto	NN
industry	NN
suffered	VBD
a	DT
serious	JJ
sales	NNS
depression	NN
and	CC
adjustment	NN
.	.

Area	NN
employment	NN
dropped	VBD
by	IN
13	CD
%	NN
from	IN
its	PRP$
1979	CD
peak	NN
and	CC
retail	JJ
sales	NNS
were	VBD
down	IN
14	CD
%	NN
.	.

However	RB
,	,
the	DT
real-estate	NN
market	NN
was	VBD
hurt	VBN
even	RB
more	JJR
.	.

For	IN
example	NN
,	,
residential	JJ
building	NN
permits	NNS
in	IN
the	DT
trough	NN
year	NN
of	IN
1982	CD
were	VBD
off	IN
76	CD
%	NN
from	IN
the	DT
1979	CD
peak	NN
level	NN
.	.

Once	RB
metropolitan	JJ
Detroit	NNP
's	POS
economy	NN
rallied	VBD
in	IN
the	DT
mid-1980s	CD
,	,
real	JJ
estate	NN
rebounded	VBD
.	.

Building	NN
permits	NNS
,	,
for	IN
example	NN
,	,
soared	VBD
a	DT
staggering	JJ
400	CD
%	NN
between	IN
1982	CD
and	CC
the	DT
peak	NN
year	NN
of	IN
1986	CD
.	.

Where	WRB
,	,
savvy	JJ
corporations	NNS
and	CC
professional	JJ
firms	NNS
are	VBP
now	RB
asking	VBG
,	,
are	VBP
today	NN
's	POS
opportunities	NNS
?	.

Look	VB
no	RB
further	RB
than	IN
metropolitan	JJ
Houston	NNP
and	CC
Denver	NNP
,	,
two	CD
of	IN
the	DT
most	RBS
depressed	VBN
,	,
overbuilt	NN
and	CC
potentially	RB
undervalued	VBD
real-estate	NN
markets	NNS
in	IN
the	DT
nation	NN
.	.

Of	IN
course	NN
,	,
some	DT
observers	NNS
have	VBP
touted	VBN
Houston	NNP
and	CC
Denver	NNP
for	IN
the	DT
past	JJ
five	CD
years	NNS
as	IN
a	DT
counter-cyclical	JJ
play	NN
.	.

But	CC
now	RB
appears	VBZ
to	TO
be	VB
the	DT
time	NN
to	TO
act	VB
.	.

Metropolitan	NNP
Houston	NNP
's	POS
economy	NN
did	VBD
drop	VB
and	CC
then	RB
flatten	VB
in	IN
the	DT
years	NNS
after	IN
its	PRP$
1982	CD
peak	NN
.	.

In	IN
the	DT
mid-1980s	CD
,	,
employment	NN
was	VBD
down	IN
as	RB
much	JJ
as	IN
5	CD
%	NN
from	IN
the	DT
1982	CD
peak	NN
and	CC
retail	JJ
sales	NNS
were	VBD
off	IN
13	CD
%	NN
.	.

The	DT
real-estate	NN
market	NN
suffered	VBD
even	RB
more	RBR
severe	JJ
setbacks	NNS
.	.

Office	NN
construction	NN
dropped	VBD
97	CD
%	NN
.	.

The	DT
vacancy	NN
rate	NN
soared	VBD
more	JJR
than	IN
20	CD
%	NN
in	IN
nearly	RB
every	DT
product	NN
category	NN
,	,
and	CC
more	JJR
than	IN
30	CD
%	NN
of	IN
office	NN
space	NN
was	VBD
vacant	JJ
.	.

To	TO
some	DT
observers	NNS
,	,
the	DT
empty	JJ
office	NN
buildings	NNS
of	IN
Houston	NNP
's	POS
``	``
see-through	JJ
skyline	NN
''	''
were	VBD
indicative	JJ
of	IN
a	DT
very	RB
troubled	JJ
economy	NN
.	.

As	IN
usual	JJ
,	,
the	DT
real-estate	NN
market	NN
had	VBD
overreacted	VBN
.	.

Actually	RB
,	,
the	DT
region	NN
's	POS
economy	NN
retained	VBD
a	DT
firm	JJ
foundation	NN
.	.

Metropolitan	NNP
Houston	NNP
's	POS
population	NN
has	VBZ
held	VBN
steady	JJ
over	IN
the	DT
past	JJ
six	CD
years	NNS
.	.

And	CC
personal	JJ
income	NN
,	,
after	IN
slumping	VBG
in	IN
the	DT
mid-1980s	CD
,	,
has	VBZ
returned	VBN
to	TO
its	PRP$
1982	CD
level	NN
in	IN
real	JJ
dollar	NN
terms	NNS
.	.

Today	NN
,	,
metropolitan	JJ
Houston	NNP
's	POS
real-estate	NN
market	NN
is	VBZ
poised	VBN
for	IN
a	DT
significant	JJ
turnaround	NN
.	.

More	JJR
than	IN
42,000	CD
jobs	NNS
were	VBD
added	VBN
in	IN
metro	NN
Houston	NNP
last	JJ
year	NN
,	,
primarily	RB
in	IN
biotechnology	NN
,	,
petrochemical	NN
processing	NN
,	,
and	CC
the	DT
computer	NN
industry	NN
.	.

This	DT
growth	NN
puts	VBZ
Houston	NNP
in	IN
the	DT
top	JJ
five	CD
metro	NN
areas	NNS
in	IN
the	DT
nation	NN
last	JJ
year	NN
.	.

And	CC
forecasts	NNS
project	VBP
a	DT
2.5	CD
%	NN
to	TO
3	CD
%	NN
growth	NN
rate	NN
in	IN
jobs	NNS
over	IN
the	DT
next	JJ
few	JJ
years	NNS
--	:
nearly	RB
twice	RB
the	DT
national	JJ
average	NN
.	.

Denver	NNP
is	VBZ
another	DT
metropolitan	JJ
area	NN
where	WRB
the	DT
commercial	JJ
real-estate	NN
market	NN
has	VBZ
overreacted	VBN
to	TO
the	DT
region	NN
's	POS
economic	JJ
trends	NNS
,	,
although	IN
Denver	NNP
has	VBZ
not	RB
experienced	VBN
as	IN
severe	JJ
an	DT
economic	JJ
downturn	NN
as	IN
Houston	NNP
.	.

By	IN
some	DT
measures	NNS
,	,
metropolitan	JJ
Denver	NNP
's	POS
economy	NN
has	VBZ
actually	RB
improved	VBN
in	IN
the	DT
past	JJ
four	CD
years	NNS
.	.

Its	PRP$
population	NN
has	VBZ
continued	VBN
to	TO
increase	VB
since	IN
1983	CD
,	,
the	DT
peak	NN
year	NN
of	IN
the	DT
economic	JJ
cycle	NN
.	.

Employment	NN
is	VBZ
now	RB
4	CD
%	NN
higher	JJR
than	IN
in	IN
1983	CD
.	.

Buying	VBG
income	NN
in	IN
real	JJ
dollars	NNS
actually	RB
increased	VBD
15	CD
%	NN
between	IN
1983	CD
and	CC
1987	CD
(	(
the	DT
most	RBS
recent	JJ
year	NN
available	JJ
)	)
.	.

The	DT
rates	NNS
of	IN
increase	NN
,	,
however	RB
,	,
are	VBP
less	JJR
than	IN
the	DT
rapid	JJ
growth	NN
of	IN
the	DT
boom	NN
years	NNS
,	,
and	CC
this	DT
has	VBZ
resulted	VBN
in	IN
a	DT
loss	NN
of	IN
confidence	NN
in	IN
the	DT
economy	NN
.	.

In	IN
a	DT
self-fulfilling	JJ
prophecy	NN
,	,
therefore	RB
,	,
the	DT
region	NN
's	POS
real-estate	NN
market	NN
all	DT
but	CC
collapsed	VBD
in	IN
recent	JJ
years	NNS
.	.

Housing	NN
building	NN
permits	NNS
are	VBP
down	IN
more	RBR
than	IN
75	CD
%	NN
from	IN
their	PRP$
1983	CD
peaks	NNS
.	.

Although	IN
no	DT
one	NN
can	MD
predict	VB
when	WRB
metropolitan	JJ
Denver	NNP
's	POS
real-estate	NN
market	NN
will	MD
rebound	VB
,	,
major	JJ
public	JJ
works	NNS
projects	NNS
costing	VBG
several	JJ
billion	CD
dollars	NNS
are	VBP
under	IN
way	NN
or	CC
planned	VBD
--	:
such	JJ
as	IN
a	DT
new	JJ
convention	NN
center	NN
,	,
a	DT
major	JJ
beltway	NN
encircling	VBG
the	DT
metropolitan	JJ
area	NN
,	,
and	CC
a	DT
new	JJ
regional	JJ
airport	NN
.	.

When	WRB
Denver	NNP
's	POS
regional	JJ
economy	NN
begins	VBZ
to	TO
grow	VB
faster	RBR
--	:
such	PDT
a	DT
recovery	NN
could	MD
occur	VB
as	RB
early	RB
as	IN
next	JJ
year	NN
--	:
business	NN
and	CC
consumer	NN
confidence	NN
will	MD
return	VB
,	,
and	CC
the	DT
resulting	VBG
explosion	NN
of	IN
real-estate	NN
activity	NN
will	MD
dwarf	VB
the	DT
general	JJ
economic	JJ
rebound	NN
.	.

What	WDT
real-estate	NN
strategy	NN
should	MD
one	NN
follow	VB
in	IN
a	DT
metropolitan	JJ
area	NN
whose	WP$
economic	JJ
health	NN
is	VBZ
not	RB
as	RB
easy	JJ
to	TO
determine	VB
as	IN
Houston	NNP
's	POS
or	CC
Denver	NNP
's	POS
?	.

Generally	RB
,	,
overcapacity	NN
in	IN
commercial	JJ
real	JJ
estate	NN
is	VBZ
dropping	VBG
from	IN
its	PRP$
mid-1980s	CD
peak	NN
,	,
even	RB
in	IN
such	JJ
economically	RB
healthy	JJ
metropolitan	JJ
areas	NNS
as	IN
Washington	NNP
,	,
New	NNP
York	NNP
and	CC
Los	NNP
Angeles	NNP
.	.

Vacancy	NN
rates	NNS
in	IN
the	DT
15	CD
%	NN
to	TO
19	CD
%	NN
range	NN
today	NN
may	MD
easily	RB
rise	VB
to	TO
the	DT
low	JJ
to	TO
mid-20	CD
%	NN
range	NN
in	IN
a	DT
couple	NN
of	IN
years	NNS
.	.

Under	IN
these	DT
conditions	NNS
,	,
even	RB
a	DT
flattening	VBG
out	IN
of	IN
economic	JJ
growth	NN
--	:
``	``
catching	VBG
cold	NN
''	''
--	:
in	IN
the	DT
healthy	JJ
metropolitan	JJ
areas	NNS
will	MD
create	VB
significant	JJ
opportunities	NNS
for	IN
corporations	NNS
and	CC
professional	JJ
service	NN
firms	NNS
looking	VBG
for	IN
bargains	NNS
as	IN
the	DT
realestate	NN
industry	NN
catches	VBZ
pneumonia	NN
.	.

Those	DT
looking	VBG
for	IN
real-estate	NN
bargains	NNS
in	IN
distressed	JJ
metropolitan	JJ
areas	NNS
should	MD
lock	VB
in	RP
leases	NNS
or	CC
buy	VB
now	RB
;	:
those	DT
looking	VBG
in	IN
healthy	JJ
metropolitan	JJ
areas	NNS
should	MD
take	VB
a	DT
short-term	JJ
(	(
three-year	JJ
)	)
lease	NN
and	CC
wait	VB
for	IN
the	DT
bargains	NNS
ahead	RB
.	.

Mr.	NNP
Leinberger	NNP
is	VBZ
managing	VBG
partner	NN
of	IN
a	DT
real-estate	NN
advisory	JJ
firm	NN
based	VBN
in	IN
Beverly	NNP
Hills	NNPS
,	,
Calif	NNP
.	.

Kysor	NNP
Industrial	NNP
Corp.	NNP
said	VBD
it	PRP
expects	VBZ
its	PRP$
third-quarter	NN
net	NN
earnings	NNS
to	TO
be	VB
between	IN
two	CD
cents	NNS
and	CC
four	CD
cents	NNS
a	DT
share	NN
,	,
compared	VBN
with	IN
61	CD
cents	NNS
a	DT
share	NN
a	DT
year	NN
ago	IN
.	.

Analysts	NNS
had	VBD
been	VBN
projecting	VBG
that	IN
the	DT
company	NN
's	POS
earnings	NNS
would	MD
be	VB
between	IN
25	CD
cents	NNS
and	CC
30	CD
cents	NNS
a	DT
share	NN
.	.

The	DT
year-earlier	JJ
third-quarter	NN
earnings	NNS
amounted	VBD
to	TO
$	$
4.1	CD
million	CD
.	.

The	DT
company	NN
said	VBD
a	DT
drop	NN
in	IN
activity	NN
in	IN
the	DT
powerboat	NN
industry	NN
reduced	VBD
sales	JJ
volume	NN
at	IN
its	PRP$
two	CD
marine-related	JJ
operations	NNS
.	.

Also	RB
,	,
the	DT
company	NN
said	VBD
its	PRP$
commercial	JJ
products	NNS
operation	NN
failed	VBD
to	TO
meet	VB
forecasts	NNS
.	.

Kysor	NNP
,	,
a	DT
maker	NN
of	IN
heavy-duty	JJ
truck	NN
and	CC
commercial	JJ
refrigeration	NN
equipment	NN
,	,
said	VBD
it	PRP
expects	VBZ
its	PRP$
fourth-quarter	NN
earnings	NNS
to	TO
be	VB
more	RBR
closely	RB
in	IN
line	NN
with	IN
usual	JJ
levels	NNS
,	,
which	WDT
are	VBP
between	IN
30	CD
cents	NNS
and	CC
50	CD
cents	NNS
a	DT
share	NN
.	.

Common	NNP
Cause	NNP
asked	VBD
both	PDT
the	DT
Senate	NNP
Ethics	NNP
Committee	NNP
and	CC
the	DT
Justice	NNP
Department	NNP
to	TO
investigate	VB
$	$
1	CD
million	CD
in	IN
political	JJ
gifts	NNS
by	IN
Arizona	NNP
businessman	NN
Charles	NNP
Keating	NNP
to	TO
five	CD
U.S.	NNP
senators	NNS
who	WP
interceded	VBD
with	IN
thrift-industry	NN
regulators	NNS
for	IN
him	PRP
.	.

Mr.	NNP
Keating	NNP
is	VBZ
currently	RB
the	DT
subject	NN
of	IN
a	DT
$	$
1.1	CD
billion	CD
federal	JJ
anti-racketeering	JJ
lawsuit	NN
accusing	VBG
him	PRP
of	IN
bleeding	VBG
off	RP
assets	NNS
of	IN
a	DT
California	NNP
thrift	NN
he	PRP
controlled	VBD
,	,
Lincoln	NNP
Savings	NNP
&	CC
Loan	NNP
Association	NNP
,	,
and	CC
driving	VBG
it	PRP
into	IN
insolvency	NN
.	.

Fred	NNP
Wertheimer	NNP
--	:
president	NN
of	IN
Common	NNP
Cause	NNP
,	,
the	DT
self-styled	JJ
citizens	NNS
lobby	NN
--	:
said	VBD
Mr.	NNP
Keating	NNP
already	RB
has	VBZ
conceded	VBN
attempting	VBG
to	TO
buy	VB
influence	NN
with	IN
the	DT
lawmakers	NNS
--	:
Democratic	NNP
Sens.	NNP
Dennis	NNP
DeConcini	NNP
of	IN
Arizona	NNP
,	,
Alan	NNP
Cranston	NNP
of	IN
California	NNP
,	,
John	NNP
Glenn	NNP
of	IN
Ohio	NNP
and	CC
Donald	NNP
Riegle	NNP
of	IN
Michigan	NNP
;	:
and	CC
GOP	NNP
Sen.	NNP
John	NNP
McCain	NNP
of	IN
Arizona	NNP
.	.

Mr.	NNP
Wertheimer	NNP
based	VBD
this	DT
on	IN
a	DT
statement	NN
by	IN
Mr.	NNP
Keating	NNP
that	WDT
was	VBD
quoted	VBN
in	IN
a	DT
Wall	NNP
Street	NNP
Journal	NNP
story	NN
in	IN
April	NNP
:	:
``	``
One	CD
question	NN
...	:
had	VBD
to	TO
do	VB
with	IN
whether	IN
my	PRP$
financial	JJ
support	NN
in	IN
any	DT
way	NN
influenced	VBD
several	JJ
political	JJ
figures	NNS
to	TO
take	VB
up	RP
my	PRP$
cause	NN
.	.

I	PRP
want	VBP
to	TO
say	VB
in	IN
the	DT
most	RBS
forceful	JJ
way	NN
I	PRP
can	MD
:	:
I	PRP
certainly	RB
hope	VB
so	RB
.	.
''	''

In	IN
a	DT
highly	RB
unusual	JJ
meeting	NN
in	IN
Sen.	NNP
DeConcini	NNP
's	POS
office	NN
in	IN
April	NNP
1987	CD
,	,
the	DT
five	CD
senators	NNS
asked	VBD
federal	JJ
regulators	NNS
to	TO
ease	VB
up	RP
on	IN
Lincoln	NNP
.	.

According	VBG
to	TO
notes	NNS
taken	VBN
by	IN
one	CD
of	IN
the	DT
participants	NNS
at	IN
the	DT
meeting	NN
,	,
the	DT
regulators	NNS
said	VBD
Lincoln	NNP
was	VBD
gambling	VBG
dangerously	RB
with	IN
depositors	NNS
'	POS
federally	RB
insured	VBN
money	NN
and	CC
was	VBD
``	``
a	DT
ticking	VBG
time	NN
bomb	NN
.	.
''	''

Mr.	NNP
Keating	NNP
had	VBD
complained	VBN
that	IN
the	DT
regulators	NNS
were	VBD
being	VBG
too	RB
zealous	JJ
.	.

The	DT
notes	NNS
show	VBP
that	IN
Sen.	NNP
DeConcini	NNP
called	VBD
the	DT
Federal	NNP
Home	NNP
Loan	NNP
Bank	NNP
Board	NNP
's	POS
regulations	NNS
``	``
grossly	RB
unfair	JJ
,	,
''	''
and	CC
that	IN
Sen.	NNP
Glenn	NNP
insisted	VBD
that	IN
Mr.	NNP
Keating	NNP
's	POS
thrift	NN
was	VBD
``	``
viable	JJ
and	CC
profitable	JJ
.	.
''	''

For	IN
the	DT
next	JJ
two	CD
years	NNS
,	,
the	DT
Bank	NNP
Board	NNP
,	,
which	WDT
at	IN
the	DT
time	NN
was	VBD
the	DT
agency	NN
responsible	JJ
for	IN
regulating	VBG
thrifts	NNS
,	,
failed	VBD
to	TO
act	VB
--	:
even	RB
after	IN
federal	JJ
auditors	NNS
warned	VBD
in	IN
May	NNP
1987	CD
that	IN
Mr.	NNP
Keating	NNP
had	VBD
caused	VBN
Lincoln	NNP
to	TO
become	VB
insolvent	JJ
.	.

Lincoln	NNP
's	POS
parent	NN
company	NN
,	,
American	NNP
Continental	NNP
Corp.	NNP
,	,
entered	VBD
bankruptcy-law	NN
proceedings	NNS
this	DT
April	NNP
13	CD
,	,
and	CC
regulators	NNS
seized	VBD
the	DT
thrift	NN
the	DT
next	JJ
day	NN
.	.

The	DT
newly	RB
formed	VBN
Resolution	NNP
Trust	NNP
Corp.	NNP
,	,
successor	NN
to	TO
the	DT
Bank	NNP
Board	NNP
,	,
filed	VBD
suit	NN
against	IN
Mr.	NNP
Keating	NNP
and	CC
several	JJ
others	NNS
on	IN
Sept.	NNP
15	CD
.	.

Mr.	NNP
Keating	NNP
has	VBZ
filed	VBN
his	PRP$
own	JJ
suit	NN
,	,
alleging	VBG
that	IN
his	PRP$
property	NN
was	VBD
taken	VBN
illegally	RB
.	.

The	DT
cost	NN
to	TO
taxpayers	NNS
of	IN
Lincoln	NNP
's	POS
collapse	NN
has	VBZ
been	VBN
estimated	VBN
at	IN
as	RB
much	JJ
as	IN
$	$
2.5	CD
billion	CD
.	.

Details	NNS
of	IN
the	DT
affair	NN
have	VBP
become	VBN
public	JJ
gradually	RB
over	IN
the	DT
past	JJ
two	CD
years	NNS
,	,
mostly	RB
as	IN
a	DT
result	NN
of	IN
reporting	VBG
by	IN
several	JJ
newspapers	NNS
.	.

In	IN
the	DT
midst	NN
of	IN
his	PRP$
1988	CD
re-election	NN
campaign	NN
,	,
Sen.	NNP
Riegle	NNP
,	,
chairman	NN
of	IN
the	DT
Senate	NNP
Banking	NNP
Committee	NNP
,	,
returned	VBD
$	$
76,000	CD
in	IN
contributions	NNS
after	IN
a	DT
Detroit	NNP
newspaper	NN
said	VBD
that	IN
Mr.	NNP
Keating	NNP
had	VBD
gathered	VBN
the	DT
money	NN
for	IN
him	PRP
about	IN
two	CD
weeks	NNS
before	IN
the	DT
meeting	NN
with	IN
regulators	NNS
.	.

Sen.	NNP
DeConcini	NNP
,	,
after	IN
months	NNS
of	IN
fending	VBG
off	RP
intense	JJ
press	NN
criticism	NN
,	,
returned	VBD
$	$
48,000	CD
only	JJ
last	JJ
month	NN
,	,
shortly	RB
after	IN
the	DT
government	NN
formally	RB
accused	VBD
Mr.	NNP
Keating	NNP
of	IN
defrauding	VBG
Lincoln	NNP
.	.

In	IN
addition	NN
,	,
Sen.	NNP
McCain	NNP
last	JJ
week	NN
disclosed	VBD
that	IN
he	PRP
belatedly	RB
had	VBD
paid	VBN
$	$
13,433	CD
to	TO
American	NNP
Continental	NNP
as	IN
reimbursement	NN
for	IN
trips	NNS
he	PRP
and	CC
his	PRP$
family	NN
took	VBD
aboard	IN
the	DT
corporate	JJ
jet	NN
to	TO
Mr.	NNP
Keating	NNP
's	POS
vacation	NN
home	NN
at	IN
Cat	NNP
Cay	NNP
,	,
the	DT
Bahamas	NNPS
,	,
from	IN
1984	CD
through	IN
1986	CD
.	.

Sen.	NNP
McCain	NNP
said	VBD
he	PRP
had	VBD
meant	VBN
to	TO
pay	VB
for	IN
the	DT
trips	NNS
at	IN
the	DT
time	NN
but	CC
that	IN
the	DT
matter	NN
``	``
fell	VBD
between	IN
the	DT
cracks	NNS
.	.
''	''

Mr.	NNP
Keating	NNP
,	,
his	PRP$
family	NN
members	NNS
and	CC
associates	NNS
also	RB
donated	VBD
$	$
112,000	CD
to	TO
Sen.	NNP
McCain	NNP
's	POS
congressional	JJ
campaigns	NNS
over	IN
the	DT
years	NNS
,	,
according	VBG
to	TO
press	NN
accounts	NNS
.	.

But	CC
Sen.	NNP
McCain	NNP
says	VBZ
Mr.	NNP
Keating	NNP
broke	VBD
off	RP
their	PRP$
friendship	NN
abruptly	RB
in	IN
1987	CD
,	,
because	IN
the	DT
senator	NN
refused	VBD
to	TO
press	VB
the	DT
thrift	NN
executive	NN
's	POS
case	NN
as	RB
vigorously	RB
as	IN
Mr.	NNP
Keating	NNP
wanted	VBD
.	.

``	``
He	PRP
became	VBD
very	RB
angry	JJ
at	IN
that	DT
,	,
left	VBD
my	PRP$
office	NN
and	CC
told	VBD
a	DT
number	NN
of	IN
people	NNS
that	IN
I	PRP
was	VBD
a	DT
wimp	NN
,	,
''	''
Sen.	NNP
McCain	NNP
recalls	VBZ
.	.

In	IN
July	NNP
,	,
California	NNP
newspapers	NNS
disclosed	VBD
that	IN
Mr.	NNP
Keating	NNP
gave	VBD
$	$
850,000	CD
in	IN
corporate	JJ
funds	NNS
to	TO
three	CD
tax-exempt	JJ
voter	NN
registration	NN
organizations	NNS
in	IN
1987	CD
and	CC
1988	CD
at	IN
the	DT
behest	NN
of	IN
Sen.	NNP
Cranston	NNP
,	,
who	WP
conceded	VBD
that	IN
soliciting	VBG
the	DT
money	NN
was	VBD
``	``
a	DT
pretty	RB
stupid	JJ
thing	NN
to	TO
do	VB
politically	RB
.	.
''	''

In	IN
addition	NN
,	,
Sen.	NNP
Cranston	NNP
received	VBD
$	$
47,000	CD
in	IN
campaign	NN
donations	NNS
through	IN
Mr.	NNP
Keating	NNP
,	,
and	CC
the	DT
California	NNP
Democratic	NNP
party	NN
received	VBD
$	$
85,000	CD
in	IN
corporate	JJ
donations	NNS
for	IN
a	DT
1986	CD
get-out-the-vote	JJ
drive	NN
that	WDT
benefited	VBD
the	DT
senator	NN
's	POS
re-election	NN
campaign	NN
that	DT
year	NN
.	.

Also	RB
in	IN
July	NNP
,	,
Ohio	NNP
newspapers	NNS
disclosed	VBD
$	$
200,000	CD
in	IN
corporate	JJ
donations	NNS
by	IN
Mr.	NNP
Keating	NNP
to	TO
the	DT
National	NNP
Council	NNP
on	IN
Public	NNP
Policy	NNP
,	,
a	DT
political	JJ
committee	NN
controlled	VBN
by	IN
Sen.	NNP
Glenn	NNP
.	.

That	DT
was	VBD
in	IN
addition	NN
to	TO
$	$
34,000	CD
in	IN
direct	JJ
campaign	NN
donations	NNS
arranged	VBN
by	IN
Mr.	NNP
Keating	NNP
to	TO
the	DT
Ohio	NNP
senator	NN
.	.

Mr.	NNP
Wertheimer	NNP
said	VBD
the	DT
Senate	NNP
Ethics	NNP
Committee	NNP
should	MD
hire	VB
a	DT
special	JJ
outside	JJ
counsel	NN
to	TO
conduct	VB
an	DT
investigation	NN
,	,
as	IN
was	VBD
done	VBN
in	IN
the	DT
case	NN
of	IN
former	JJ
House	NNP
Speaker	NNP
James	NNP
Wright	NNP
.	.

Wilson	NNP
Abney	NNP
,	,
staff	NN
director	NN
of	IN
the	DT
ethics	NNS
panel	NN
,	,
would	MD
n't	RB
comment	VB
.	.

Sen.	NNP
Riegle	NNP
said	VBD
he	PRP
would	MD
cooperate	VB
with	IN
any	DT
inquiry	NN
,	,
but	CC
that	IN
his	PRP$
conduct	NN
had	VBD
been	VBN
``	``
entirely	RB
proper	JJ
.	.
''	''

Sen.	NNP
McCain	NNP
said	VBD
he	PRP
had	VBD
been	VBN
``	``
deeply	RB
concerned	VBN
''	''
at	IN
the	DT
time	NN
of	IN
the	DT
meeting	NN
that	IN
it	PRP
might	MD
seem	VB
to	TO
be	VB
improper	JJ
,	,
but	CC
decided	VBD
it	PRP
was	VBD
``	``
entirely	RB
appropriate	JJ
''	''
for	IN
him	PRP
to	TO
seek	VB
fair	JJ
treatment	NN
for	IN
a	DT
constituent	NN
.	.

Sen.	NNP
Glenn	NNP
said	VBD
he	PRP
had	VBD
already	RB
made	VBN
a	DT
complete	JJ
disclosure	NN
of	IN
his	PRP$
role	NN
in	IN
the	DT
affair	NN
and	CC
``	``
I	PRP
am	VBP
completely	RB
satisfied	VBN
to	TO
let	VB
this	DT
matter	NN
rest	NN
in	IN
the	DT
hands	NNS
of	IN
the	DT
Senate	NNP
Ethics	NNP
Committee	NNP
.	.
''	''

Sen.	NNP
DeConcini	NNP
said	VBD
,	,
``	``
When	WRB
all	DT
is	VBZ
said	VBD
and	CC
done	VBN
,	,
I	PRP
expect	VBP
to	TO
be	VB
fully	RB
exonerated	VBN
.	.
''	''

Sen.	NNP
Cranston	NNP
,	,
who	WP
had	VBD
already	RB
volunteered	VBN
his	PRP$
help	NN
to	TO
the	DT
Federal	NNP
Bureau	NNP
of	IN
Investigation	NNP
in	IN
any	DT
investigation	NN
of	IN
Mr.	NNP
Keating	NNP
,	,
portrayed	VBD
his	PRP$
role	NN
in	IN
1987	CD
as	IN
prodding	VBG
regulators	NNS
to	TO
act	VB
.	.

``	``
Why	WRB
did	VBD
n't	RB
the	DT
Bank	NNP
Board	NNP
act	VB
sooner	RBR
?	.
''	''
he	PRP
said	VBD
.	.

``	``
That	DT
is	VBZ
what	WP
Common	NNP
Cause	NNP
should	MD
ask	VB
be	VB
investigated	VBN
.	.

Trinity	NNP
Industries	NNPS
Inc.	NNP
said	VBD
it	PRP
reached	VBD
a	DT
preliminary	JJ
agreement	NN
to	TO
manufacture	VB
1,000	CD
coal	NN
rail	NN
cars	NNS
for	IN
Norfolk	NNP
Southern	NNP
Corp	NNP
.	.

Trinity	NNP
estimated	VBD
the	DT
value	NN
of	IN
the	DT
pact	NN
at	IN
more	RBR
than	IN
$	$
40	CD
million	CD
.	.

Trinity	NNP
said	VBD
it	PRP
plans	VBZ
to	TO
begin	VB
delivery	NN
of	IN
the	DT
rail	NN
cars	NNS
in	IN
the	DT
first	JJ
quarter	NN
of	IN
1990	CD
.	.

It	PRP
said	VBD
the	DT
1,000	CD
rail	NN
cars	NNS
are	VBP
in	IN
addition	NN
to	TO
the	DT
1,450	CD
coal	NN
rail	NN
cars	NNS
presently	RB
being	VBG
produced	VBN
for	IN
Norfolk	NNP
Southern	NNP
,	,
a	DT
Norfolk	NNP
,	,
Va.-based	JJ
railroad	NN
concern	NN
.	.

When	WRB
China	NNP
opened	VBD
its	PRP$
doors	NNS
to	TO
foreign	JJ
investors	NNS
in	IN
1979	CD
,	,
toy	JJ
makers	NNS
from	IN
Hong	NNP
Kong	NNP
were	VBD
among	IN
the	DT
first	JJ
to	TO
march	VB
in	IN
.	.

Today	NN
,	,
with	IN
about	IN
75	CD
%	NN
of	IN
the	DT
companies	NNS
'	POS
products	NNS
being	VBG
made	VBN
in	IN
China	NNP
,	,
the	DT
chairman	NN
of	IN
the	DT
Hong	NNP
Kong	NNP
Toys	NNPS
Council	NNP
,	,
Dennis	NNP
Ting	NNP
,	,
has	VBZ
suggested	VBN
a	DT
new	JJ
sourcing	VBG
label	NN
:	:
``	``
Made	VBN
in	IN
China	NNP
by	IN
Hong	NNP
Kong	NNP
Companies	NNPS
.	.
''	''

The	DT
toy	NN
makers	NNS
were	VBD
pushed	VBN
across	IN
the	DT
border	NN
by	IN
rising	VBG
labor	NN
and	CC
land	NN
costs	NNS
in	IN
the	DT
British	JJ
colony	NN
.	.

But	CC
in	IN
the	DT
wake	NN
of	IN
the	DT
shootings	NNS
in	IN
Beijing	NNP
on	IN
June	NNP
4	CD
,	,
the	DT
Hong	NNP
Kong	NNP
toy	NN
industry	NN
is	VBZ
worrying	VBG
about	IN
its	PRP$
strong	JJ
dependence	NN
on	IN
China	NNP
.	.

Although	IN
the	DT
manufacturers	NNS
stress	VBP
that	IN
production	NN
has	VBZ
n't	RB
been	VBN
affected	VBN
by	IN
China	NNP
's	POS
political	JJ
turmoil	NN
,	,
they	PRP
are	VBP
looking	VBG
for	IN
additional	JJ
sites	NNS
.	.

The	DT
toy	NN
makers	NNS
,	,
and	CC
their	PRP$
foreign	JJ
buyers	NNS
,	,
cite	VBP
uncertainty	NN
about	IN
China	NNP
's	POS
economic	JJ
and	CC
political	JJ
policies	NNS
.	.

``	``
Nobody	NN
wants	VBZ
to	TO
have	VB
all	PDT
his	PRP$
eggs	NNS
in	IN
one	CD
basket	NN
,	,
''	''
says	VBZ
David	NNP
Yeh	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	JJ
officer	NN
of	IN
International	NNP
Matchbox	NNP
Group	NNP
Ltd	NNP
.	.

Indeed	RB
,	,
Matchbox	NNP
and	CC
other	JJ
leading	VBG
Hong	NNP
Kong	NNP
toy	NN
makers	NNS
were	VBD
setting	VBG
up	RP
factories	NNS
in	IN
Southeast	NNP
Asia	NNP
,	,
especially	RB
in	IN
Thailand	NNP
,	,
long	RB
before	IN
the	DT
massacre	NN
.	.

Their	PRP$
steps	NNS
were	VBD
partly	RB
prompted	VBN
by	IN
concern	NN
over	IN
a	DT
deterioration	NN
of	IN
business	NN
conditions	NNS
in	IN
southern	JJ
China	NNP
.	.

By	IN
diversifying	VBG
supply	NN
sources	NNS
,	,
the	DT
toy	JJ
makers	NNS
do	VBP
n't	RB
intend	VB
to	TO
withdraw	VB
from	IN
China	NNP
,	,
manufacturers	NNS
and	CC
foreign	JJ
buyers	NNS
say	VBP
.	.

It	PRP
would	MD
n't	RB
be	VB
easy	JJ
to	TO
duplicate	VB
quickly	RB
the	DT
manufacturing	VBG
capacity	NN
built	VBN
up	RP
in	IN
southern	JJ
China	NNP
during	IN
the	DT
past	JJ
decade	NN
.	.

A	DT
supply	NN
of	IN
cheap	JJ
labor	NN
and	CC
the	DT
access	NN
to	TO
Hong	NNP
Kong	NNP
's	POS
port	NN
,	,
airport	NN
,	,
banks	NNS
and	CC
support	NN
industries	NNS
,	,
such	JJ
as	IN
printing	NN
companies	NNS
,	,
have	VBP
made	VBN
China	NNP
's	POS
Guangdong	NNP
province	NN
a	DT
premier	NN
manufacturing	NN
site	NN
.	.

``	``
South	NNP
China	NNP
is	VBZ
the	DT
most	RBS
competitive	JJ
source	NN
of	IN
toys	NNS
in	IN
the	DT
world	NN
,	,
''	''
says	VBZ
Henry	NNP
Hu	NNP
,	,
executive	JJ
director	NN
of	IN
Wah	NNP
Shing	NNP
Toys	NNPS
Consolidated	NNP
Ltd	NNP
.	.

Hong	NNP
Kong	NNP
trade	NN
figures	NNS
illustrate	VBP
the	DT
toy	JJ
makers	NNS
'	POS
reliance	NN
on	IN
factories	NNS
across	IN
the	DT
border	NN
.	.

In	IN
1988	CD
,	,
exports	NNS
of	IN
domestically	RB
produced	VBN
toys	NNS
and	CC
games	NNS
fell	VBD
19	CD
%	NN
from	IN
1987	CD
,	,
to	TO
HK$	$
10.05	CD
billion	CD
(	(
US$	$
1.29	CD
billion	CD
)	)
.	.

But	CC
re-exports	NNS
,	,
mainly	RB
from	IN
China	NNP
,	,
jumped	VBD
75	CD
%	NN
,	,
to	TO
HK$	$
15.92	CD
billion	CD
.	.

In	IN
1989	CD
's	POS
first	JJ
seven	CD
months	NNS
,	,
domestic	JJ
exports	NNS
fell	VBD
29	CD
%	NN
,	,
to	TO
HK$	$
3.87	CD
billion	CD
,	,
while	IN
re-exports	NNS
rose	VBD
56	CD
%	NN
,	,
to	TO
HK$	$
11.28	CD
billion	CD
.	.

Manufacturers	NNS
say	VBP
there	EX
is	VBZ
no	DT
immediate	JJ
substitute	NN
for	IN
southern	JJ
China	NNP
,	,
where	WRB
an	DT
estimated	VBN
120,000	CD
people	NNS
are	VBP
employed	VBN
by	IN
the	DT
toy	NN
industry	NN
.	.

``	``
For	IN
the	DT
next	JJ
few	JJ
years	NNS
,	,
like	IN
it	PRP
or	CC
not	RB
,	,
China	NNP
is	VBZ
going	VBG
to	TO
be	VB
the	DT
main	JJ
supplier	NN
,	,
''	''
says	VBZ
Edmund	NNP
Young	NNP
,	,
vice	NN
president	NN
of	IN
Perfecta	NNP
Enterprises	NNPS
Ltd.	NNP
,	,
one	CD
of	IN
the	DT
first	JJ
big	JJ
Hong	NNP
Kong	NNP
toy	NN
makers	NNS
to	TO
move	VB
across	IN
the	DT
border	NN
.	.

In	IN
the	DT
meantime	NN
,	,
as	IN
manufacturers	NNS
and	CC
buyers	NNS
seek	VBP
new	JJ
sites	NNS
,	,
they	PRP
are	VBP
focusing	VBG
mainly	RB
on	IN
Southeast	NNP
Asia	NNP
.	.

Several	JJ
big	JJ
companies	NNS
have	VBP
established	VBN
manufacturing	VBG
joint	JJ
ventures	NNS
in	IN
Thailand	NNP
,	,
including	VBG
Matchbox	NNP
,	,
Wah	NNP
Shing	NNP
and	CC
Kader	NNP
Industrial	NNP
Co.	NNP
,	,
the	DT
toy	NN
manufacturer	NN
headed	VBN
by	IN
Mr.	NNP
Ting	NNP
.	.

Malaysia	NNP
,	,
the	DT
Philippines	NNP
and	CC
Indonesia	NNP
also	RB
are	VBP
being	VBG
studied	VBN
.	.

With	IN
the	DT
European	NNP
Community	NNP
set	VBD
to	TO
remove	VB
its	PRP$
internal	JJ
trade	NN
barriers	NNS
in	IN
1992	CD
,	,
several	JJ
Hong	NNP
Kong	NNP
companies	NNS
are	VBP
beginning	VBG
to	TO
consider	VB
Spain	NNP
,	,
Portugal	NNP
and	CC
Greece	NNP
as	IN
possible	JJ
manufacturing	VBG
sites	NNS
.	.

Worries	NNS
about	IN
China	NNP
came	VBD
just	RB
as	IN
Hong	NNP
Kong	NNP
's	POS
toy	NN
industry	NN
was	VBD
recovering	VBG
from	IN
a	DT
1987	CD
sales	NNS
slump	NN
and	CC
bankruptcy	NN
filings	NNS
by	IN
two	CD
major	JJ
U.S.	NNP
companies	NNS
,	,
Worlds	NNPS
of	IN
Wonder	NNP
Inc.	NNP
and	CC
Coleco	NNP
Industries	NNPS
Inc	NNP
.	.

Hong	NNP
Kong	NNP
manufacturers	NNS
say	VBP
large	JJ
debt	NN
writeoffs	NNS
and	CC
other	JJ
financial	JJ
problems	NNS
resulting	VBG
from	IN
the	DT
1987	CD
difficulties	NNS
chastened	VBD
the	DT
local	JJ
industry	NN
,	,
causing	VBG
it	PRP
to	TO
tighten	VB
credit	NN
policies	NNS
and	CC
financial	JJ
management	NN
.	.

The	DT
industry	NN
regards	VBZ
last	JJ
year	NN
and	CC
this	DT
year	NN
as	IN
a	DT
period	NN
of	IN
recovery	NN
that	WDT
will	MD
lead	VB
to	TO
improved	VBN
results	NNS
.	.

Still	RB
,	,
they	PRP
long	VBP
for	IN
a	DT
``	``
mega-hit	JJ
''	''
toy	NN
to	TO
excite	VB
retail	JJ
sales	NNS
in	IN
the	DT
U.S.	NNP
,	,
Hong	NNP
Kong	NNP
's	POS
biggest	JJS
market	NN
for	IN
toys	NNS
and	CC
games	NNS
.	.

The	DT
closest	JJS
thing	NN
the	DT
colony	NN
's	POS
companies	NNS
have	VBP
to	TO
a	DT
U.S.	NNP
mega-hit	NN
this	DT
year	NN
is	VBZ
the	DT
Teenage	NNP
Mutant	NNP
Ninja	NNP
Turtles	NNPS
series	NN
of	IN
action	NN
figures	NNS
manufactured	VBN
by	IN
Playmates	NNPS
Holdings	NNP
Ltd	NNP
.	.

Introduced	VBN
in	IN
mid-1988	CD
,	,
the	DT
15-centimeter-tall	JJ
plastic	NN
turtles	NNS
are	VBP
based	VBN
on	IN
an	DT
American	JJ
comic	JJ
book	NN
and	CC
television	NN
series	NN
.	.

Paul	NNP
Kwan	NNP
,	,
managing	VBG
director	NN
of	IN
Playmates	NNPS
,	,
says	VBZ
10	CD
million	CD
Ninja	NNP
Turtles	NNPS
have	VBP
been	VBN
sold	VBN
,	,
placing	VBG
the	DT
reptilian	JJ
warriors	NNS
among	IN
the	DT
10	CD
biggest-selling	JJ
toys	NNS
in	IN
the	DT
U.S.	NNP
.	.

Should	MD
sales	NNS
continue	VB
to	TO
be	VB
strong	JJ
through	IN
the	DT
Christmas	NNP
season	NN
,	,
which	WDT
accounts	VBZ
for	IN
about	IN
60	CD
%	NN
of	IN
U.S.	NNP
retail	JJ
toy	NN
sales	NNS
,	,
Mr.	NNP
Kwan	NNP
said	VBD
the	DT
Ninja	NNP
Turtles	NNPS
could	MD
make	VB
1989	CD
a	DT
record	NN
sales	NNS
year	NN
for	IN
Playmates	NNPS
.	.

Other	JJ
Hong	NNP
Kong	NNP
manufacturers	NNS
expect	VBP
their	PRP$
results	NNS
to	TO
improve	VB
only	RB
slightly	RB
this	DT
year	NN
from	IN
1988	CD
.	.

Besides	IN
the	DT
lack	NN
of	IN
a	DT
fast-selling	JJ
product	NN
,	,
they	PRP
cite	VBP
the	DT
continued	VBN
dominance	NN
of	IN
the	DT
U.S.	NNP
market	NN
by	IN
Nintendo	NNP
Entertainment	NNP
System	NNP
,	,
an	DT
expensive	JJ
video	NN
game	NN
made	VBN
by	IN
Nintendo	NNP
Co.	NNP
of	IN
Japan	NNP
.	.

Nintendo	NNP
buyers	NNS
have	VBP
little	JJ
money	NN
left	VBN
to	TO
spend	VB
on	IN
other	JJ
products	NNS
.	.

Many	JJ
of	IN
the	DT
toy	JJ
makers	NNS
'	POS
problems	NNS
started	VBD
well	RB
before	IN
June	NNP
4	CD
as	IN
a	DT
result	NN
of	IN
overstrained	VBN
infrastructure	NN
and	CC
Beijing	NNP
's	POS
austerity	NN
programs	NNS
launched	VBN
late	JJ
last	JJ
year	NN
.	.

Toy	NN
makers	NNS
complain	VBP
that	DT
electricity	NN
in	IN
Guangdong	NNP
has	VBZ
been	VBN
provided	VBN
only	RB
three	CD
days	NNS
a	DT
week	NN
in	IN
recent	JJ
months	NNS
,	,
down	IN
from	IN
five	CD
days	NNS
a	DT
week	NN
,	,
as	IN
the	DT
province	NN
's	POS
rapid	JJ
industrialization	NN
has	VBZ
outstripped	VBN
its	PRP$
generating	NN
capacity	NN
.	.

Manufacturers	NNS
are	VBP
upgrading	VBG
standby	JJ
power	NN
plants	NNS
.	.

Bank	NN
credit	NN
for	IN
China	NNP
investments	NNS
all	DT
but	CC
dried	VBD
up	RP
following	VBG
June	NNP
4	CD
.	.

Also	RB
,	,
concern	NN
exists	VBZ
that	IN
the	DT
harder-line	JJ
Beijing	NNP
leadership	NN
will	MD
tighten	VB
its	PRP$
control	NN
of	IN
Guangdong	NNP
,	,
which	WDT
has	VBZ
been	VBN
the	DT
main	JJ
laboratory	NN
for	IN
the	DT
open-door	NN
policy	NN
and	CC
economic	JJ
reforms	NNS
.	.

But	CC
,	,
toy	JJ
manufacturers	NNS
and	CC
other	JJ
industrialists	NNS
say	VBP
Beijing	NNP
will	MD
be	VB
restrained	VBN
from	IN
tightening	VBG
controls	NNS
on	IN
export-oriented	JJ
southern	JJ
China	NNP
.	.

They	PRP
say	VBP
China	NNP
's	POS
trade	NN
deficit	NN
is	VBZ
widening	VBG
and	CC
the	DT
country	NN
is	VBZ
too	RB
short	JJ
of	IN
foreign	JJ
exchange	NN
for	IN
it	PRP
to	TO
hamper	VB
production	NN
in	IN
Guangdong	NNP
.	.

``	``
The	DT
Chinese	JJ
leaders	NNS
have	VBP
to	TO
decide	VB
whether	IN
they	PRP
want	VBP
control	NN
or	CC
whether	IN
the	DT
want	NN
exports	NNS
,	,
''	''
says	VBZ
Mr.	NNP
Kwan	NNP
of	IN
Playmates	NNPS
.	.

The	DT
Bush	NNP
administration	NN
,	,
urging	VBG
the	DT
Supreme	NNP
Court	NNP
to	TO
give	VB
states	NNS
more	JJR
leeway	NN
to	TO
restrict	VB
abortions	NNS
,	,
said	VBD
minors	NNS
have	VBP
n't	RB
any	DT
right	NN
to	TO
abortion	NN
without	IN
the	DT
consent	NN
of	IN
their	PRP$
parents	NNS
.	.

Solicitor	NNP
General	NNP
Kenneth	NNP
Starr	NNP
argued	VBD
that	IN
the	DT
1973	CD
Supreme	NNP
Court	NNP
decision	NN
,	,
Roe	NNP
vs.	CC
Wade	NNP
,	,
recognizing	VBG
a	DT
constitutional	JJ
right	NN
to	TO
abortion	NN
,	,
was	VBD
incorrect	JJ
.	.

He	PRP
also	RB
argued	VBD
that	IN
the	DT
high	JJ
court	NN
was	VBD
wrong	JJ
in	IN
1976	CD
to	TO
rule	VB
that	IN
minors	NNS
have	VBP
a	DT
right	NN
to	TO
abortion	NN
that	WDT
ca	MD
n't	RB
be	VB
absolutely	RB
vetoed	VBN
by	IN
their	PRP$
parents	NNS
.	.

The	DT
administration	NN
's	POS
position	NN
was	VBD
outlined	VBN
in	IN
a	DT
friend-of-the-court	JJ
brief	NN
filed	VBN
in	IN
one	CD
of	IN
three	CD
abortion	NN
cases	VBZ
the	DT
Supreme	NNP
Court	NNP
will	MD
hear	VB
argued	VBN
and	CC
will	MD
decide	VB
this	DT
term	NN
.	.

The	DT
administration	NN
filed	VBD
the	DT
brief	NN
in	IN
an	DT
appeal	NN
involving	VBG
a	DT
Minnesota	NNP
law	NN
that	WDT
requires	VBZ
that	IN
both	DT
parents	NNS
of	IN
a	DT
minor	NN
be	VB
notified	VBN
before	IN
she	PRP
may	MD
have	VB
an	DT
abortion	NN
.	.

The	DT
administration	NN
urged	VBD
the	DT
justices	NNS
to	TO
adopt	VB
a	DT
legal	JJ
standard	NN
suggested	VBN
by	IN
Chief	NNP
Justice	NNP
William	NNP
Rehnquist	NNP
last	JJ
July	NNP
when	WRB
the	DT
high	JJ
court	NN
upheld	VBD
Missouri	NNP
's	POS
abortion	NN
restrictions	NNS
.	.

Under	IN
that	DT
standard	NN
,	,
which	WDT
garnered	VBD
the	DT
votes	NNS
of	IN
only	RB
three	CD
of	IN
the	DT
nine	CD
justices	NNS
,	,
a	DT
state	NN
restriction	NN
of	IN
abortion	NN
is	VBZ
constitutional	JJ
if	IN
the	DT
state	NN
has	VBZ
a	DT
``	``
reasonable	JJ
''	''
justification	NN
for	IN
adopting	VBG
it	PRP
.	.

That	DT
is	VBZ
a	DT
much	RB
easier	JJR
standard	NN
for	IN
a	DT
state	NN
to	TO
satisfy	VB
than	IN
the	DT
Supreme	NNP
Court	NNP
's	POS
test	NN
since	IN
1973	CD
,	,
which	WDT
requires	VBZ
a	DT
state	NN
to	TO
have	VB
a	DT
``	``
compelling	JJ
''	''
reason	NN
for	IN
restricting	VBG
abortion	NN
.	.

On	IN
the	DT
provisions	NNS
of	IN
the	DT
Minnesota	NNP
law	NN
,	,
the	DT
Bush	NNP
administration	NN
said	VBD
that	IN
requiring	VBG
that	IN
both	DT
parents	NNS
be	VB
notified	VBN
is	VBZ
a	DT
reasonable	JJ
regulation	NN
,	,
and	CC
that	IN
there	EX
is	VBZ
no	DT
need	NN
to	TO
have	VB
an	DT
alternative	NN
that	WDT
allows	VBZ
minors	NNS
to	TO
go	VB
to	TO
court	NN
for	IN
a	DT
judge	NN
's	POS
permission	NN
instead	RB
.	.

The	DT
case	NN
,	,
Hodgson	NNP
vs.	CC
Minnesota	NNP
,	,
will	MD
be	VB
argued	VBN
Nov.	NNP
29	CD
.	.

Aluminum	NNP
Co.	NNP
of	IN
America	NNP
,	,
hit	VBD
hard	RB
by	IN
the	DT
strength	NN
of	IN
the	DT
dollar	NN
overseas	NN
,	,
said	VBD
net	JJ
income	NN
for	IN
the	DT
third	JJ
quarter	NN
dropped	VBD
3.2	CD
%	NN
to	TO
$	$
219	CD
million	CD
,	,
or	CC
$	$
2.46	CD
a	DT
share	NN
.	.

The	DT
nation	NN
's	POS
No.	NN
1	CD
aluminum	NN
maker	NN
earned	VBD
$	$
226.3	CD
million	CD
,	,
or	CC
$	$
2.56	CD
a	DT
share	NN
,	,
a	DT
year	NN
earlier	RBR
.	.

Revenue	NN
rose	VBD
11	CD
%	NN
to	TO
$	$
2.83	CD
billion	CD
from	IN
$	$
2.56	CD
billion	CD
.	.

Analysts	NNS
,	,
who	WP
were	VBD
expecting	VBG
Alcoa	NNP
to	TO
post	VB
around	IN
$	$
2.70	CD
to	TO
$	$
3	CD
a	DT
share	NN
,	,
were	VBD
surprised	VBN
at	IN
the	DT
lackluster	NN
third-quarter	NN
results	NNS
.	.

``	``
It	PRP
's	VBZ
disappointing	JJ
,	,
''	''
said	VBD
William	NNP
Siedenburg	NNP
,	,
an	DT
analyst	NN
with	IN
Smith	NNP
Barney	NNP
,	,
Harris	NNP
Upham	NNP
&	CC
Co	NNP
.	.

Much	RB
of	IN
the	DT
earnings	NNS
decline	NN
was	VBD
led	VBN
by	IN
currency-exchange	JJ
rate	NN
adjustments	NNS
,	,
which	WDT
affected	VBD
the	DT
bottom	NN
line	NN
by	IN
$	$
15.3	CD
million	CD
,	,
or	CC
17	CD
cents	NNS
a	DT
share	NN
,	,
compared	VBN
with	IN
$	$
3.6	CD
million	CD
,	,
or	CC
four	CD
cents	NNS
a	DT
share	NN
,	,
the	DT
previous	JJ
year	NN
.	.

Lower	JJR
prices	NNS
for	IN
aluminum	NN
ingots	NNS
and	CC
certain	JJ
alloy	NN
products	NNS
and	CC
a	DT
shift	NN
in	IN
the	DT
product	NN
mix	NN
also	RB
contributed	VBD
to	TO
lower	JJR
earnings	NNS
,	,
the	DT
company	NN
said	VBD
.	.

``	``
In	IN
addition	NN
,	,
costs	NNS
were	VBD
higher	JJR
partly	RB
due	JJ
to	TO
scheduled	VBN
plant	NN
outages	NNS
for	IN
modernization	NN
work	NN
,	,
''	''
the	DT
company	NN
said	VBD
.	.

Excluding	VBG
the	DT
higher	JJR
tax	NN
rate	NN
,	,
which	WDT
rose	VBD
two	CD
percentage	NN
points	NNS
to	TO
38	CD
%	NN
,	,
and	CC
the	DT
negative	JJ
exchange	NN
rate	NN
adjustment	NN
,	,
the	DT
company	NN
would	MD
have	VB
met	VBN
analysts	NNS
'	POS
expectations	NNS
,	,
said	VBD
R.	NNP
Wayne	NNP
Atwell	NNP
,	,
an	DT
analyst	NN
with	IN
Goldman	NNP
,	,
Sachs	NNP
&	CC
Co	NNP
.	.

Noting	VBG
that	IN
the	DT
third	JJ
quarter	NN
is	VBZ
usually	RB
the	DT
aluminum	NN
industry	NN
's	VBZ
slowest	JJS
,	,
Mr.	NNP
Atwell	NNP
added	VBD
,	,
``	``
the	DT
third	JJ
quarter	NN
is	VBZ
never	RB
a	DT
bang	NN
up	IN
period	NN
for	IN
them	PRP
anyway	RB
.	.
''	''

Nevertheless	RB
,	,
the	DT
company	NN
said	VBD
shipments	NNS
were	VBD
up	IN
slightly	RB
to	TO
679,000	CD
metric	JJ
tons	NNS
from	IN
671,000	CD
,	,
buffing	VBG
the	DT
impact	NN
of	IN
the	DT
unexpected	JJ
earning	NN
decline	NN
.	.

The	DT
results	NNS
were	VBD
announced	VBN
after	IN
the	DT
stock	NN
market	NN
closed	VBD
.	.

In	IN
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
Friday	NNP
,	,
Alcoa	NNP
closed	VBD
at	IN
$	$
72	CD
a	DT
share	NN
,	,
down	IN
$	$
4.75	CD
,	,
in	IN
a	DT
sharply	RB
lower	JJR
market	NN
.	.

For	IN
20	CD
years	NNS
,	,
federal	JJ
rules	NNS
have	VBP
barred	VBN
the	DT
three	CD
major	JJ
television	NN
networks	NNS
from	IN
sharing	VBG
in	IN
one	CD
of	IN
the	DT
most	RBS
lucrative	JJ
and	CC
fastest-growing	JJ
parts	NNS
of	IN
the	DT
television	NN
business	NN
.	.

And	CC
for	IN
six	CD
years	NNS
,	,
NBC	NNP
,	,
ABC	NNP
and	CC
CBS	NNP
have	VBP
negotiated	VBN
with	IN
Hollywood	NNP
studios	NNS
in	IN
a	DT
futile	JJ
attempt	NN
to	TO
change	VB
that	DT
.	.

But	CC
with	IN
foreign	JJ
companies	NNS
snapping	VBG
up	RP
U.S.	NNP
movie	NN
studios	NNS
,	,
the	DT
networks	NNS
are	VBP
pressing	VBG
their	PRP$
fight	NN
harder	RBR
than	IN
ever	RB
.	.

They	PRP
hope	VBP
the	DT
foreign	JJ
deals	NNS
will	MD
divide	VB
the	DT
Hollywood	NNP
opposition	NN
and	CC
prod	VB
Congress	NNP
to	TO
push	VB
for	IN
ending	VBG
federal	JJ
rules	NNS
that	WDT
prohibit	VBP
the	DT
networks	NNS
from	IN
grabbing	VBG
a	DT
piece	NN
of	IN
rerun	NN
sales	NNS
and	CC
owning	VBG
part	NN
of	IN
the	DT
shows	NNS
they	PRP
put	VBP
on	IN
the	DT
air	NN
.	.

Even	RB
network	NN
executives	NNS
,	,
however	RB
,	,
admit	VBP
privately	RB
that	DT
victory	NN
--	:
either	CC
in	IN
Congress	NNP
or	CC
in	IN
talks	NNS
with	IN
the	DT
studios	NNS
--	:
is	VBZ
highly	RB
doubtful	JJ
any	DT
time	NN
soon	RB
.	.

And	CC
so	IN
the	DT
networks	NNS
also	RB
are	VBP
pushing	VBG
for	IN
new	JJ
ways	NNS
to	TO
sidestep	VB
the	DT
``	``
fin-syn	JJ
''	''
provisions	NNS
,	,
known	VBN
formally	RB
as	IN
the	DT
Financial	NNP
Interest	NNP
and	CC
Syndication	NNP
Rules	NNPS
.	.

That	DT
became	VBD
clear	JJ
last	JJ
week	NN
with	IN
the	DT
disclosure	NN
that	IN
National	NNP
Broadcasting	NNP
Co.	NNP
,	,
backed	VBN
by	IN
the	DT
deep	JJ
pockets	NNS
of	IN
parent	NN
General	NNP
Electric	NNP
Co.	NNP
,	,
had	VBD
tried	VBN
to	TO
help	VB
fund	NN
Qintex	NNP
Australia	NNP
Ltd.	NNP
's	POS
now-scuttled	JJ
$	$
1.5	CD
billion	CD
bid	NN
for	IN
MGM\/UA	NNP
Communications	NNPS
Co	NNP
.	.

NBC	NNP
's	POS
interest	NN
may	MD
revive	VB
the	DT
deal	NN
,	,
which	WDT
MGM\/UA	NNP
killed	VBD
last	JJ
week	NN
when	WRB
the	DT
Australian	JJ
concern	NN
had	VBD
trouble	NN
raising	VBG
cash	NN
.	.

Even	RB
if	IN
that	DT
deal	NN
is	VBZ
n't	RB
revived	VBN
,	,
NBC	NNP
hopes	VBZ
to	TO
find	VB
another	DT
.	.

``	``
Our	PRP$
doors	NNS
are	VBP
open	JJ
,	,
''	''
an	DT
NBC	NNP
spokesman	NN
says	VBZ
.	.

NBC	NNP
may	MD
yet	RB
find	VB
a	DT
way	NN
to	TO
take	VB
a	DT
passive	JJ
,	,
minority	NN
interest	NN
in	IN
a	DT
program-maker	NN
without	IN
violating	VBG
the	DT
rules	NNS
.	.

And	CC
any	DT
NBC	NNP
effort	NN
could	MD
prompt	VB
CBS	NNP
Inc.	NNP
and	CC
ABC	NNP
's	POS
parent	NN
,	,
Capital	NNP
Cities\/ABC	NNP
Inc.	NNP
,	,
to	TO
look	VB
for	IN
ways	NNS
of	IN
skirting	VBG
the	DT
fin-syn	JJ
regulations	NNS
.	.

But	CC
the	DT
networks	NNS
'	POS
push	NN
may	MD
only	RB
aggravate	VB
an	DT
increasingly	RB
bitter	JJ
rift	NN
between	IN
them	PRP
and	CC
Hollywood	NNP
studios	NNS
.	.

Both	DT
sides	NNS
are	VBP
to	TO
sit	VB
down	IN
next	JJ
month	NN
for	IN
yet	RB
another	DT
meeting	NN
on	IN
how	WRB
they	PRP
might	MD
agree	VB
on	IN
reducing	VBG
fin-syn	JJ
restraints	NNS
.	.

Few	JJ
people	NNS
privy	JJ
to	TO
the	DT
talks	NNS
expect	VBP
the	DT
studios	NNS
to	TO
budge	VB
.	.

The	DT
networks	NNS
still	RB
are	VBP
``	``
uninhibited	JJ
in	IN
their	PRP$
authority	NN
''	''
over	IN
what	WDT
shows	NNS
get	VBP
on	IN
the	DT
air	NN
,	,
charges	VBZ
Motion	NNP
Picture	NNP
Association	NNP
President	NNP
Jack	NNP
Valenti	NNP
,	,
the	DT
most	RBS
vociferous	JJ
opponent	NN
of	IN
rescinding	VBG
the	DT
rules	NNS
.	.

Studios	NNS
are	VBP
``	``
powerless	JJ
''	''
to	TO
get	VB
shows	NNS
in	IN
prime-time	JJ
lineups	NNS
and	CC
keep	VB
them	PRP
there	RB
long	JJ
enough	RB
to	TO
go	VB
into	IN
lucrative	JJ
rerun	NN
sales	NNS
,	,
he	PRP
contends	VBZ
.	.

And	CC
that	DT
's	VBZ
why	WRB
the	DT
rules	NNS
,	,
for	IN
the	DT
most	JJS
part	NN
,	,
must	MD
stay	VB
in	IN
place	NN
,	,
he	PRP
says	VBZ
.	.

Studio	NN
executives	NNS
in	IN
on	IN
the	DT
talks	NNS
-	:
including	JJ
officials	NNS
at	IN
Paramount	NNP
Communications	NNPS
Inc.	NNP
,	,
Fries	NNP
Entertainment	NNP
Inc.	NNP
,	,
Warner	NNP
Communications	NNPS
Inc.	NNP
and	CC
MCA	NNP
Inc.	NNP
--	:
declined	VBD
to	TO
be	VB
interviewed	VBN
.	.

But	CC
Mr.	NNP
Valenti	NNP
,	,
who	WP
represents	VBZ
the	DT
studios	NNS
,	,
asserts	VBZ
:	:
``	``
The	DT
whole	JJ
production	NN
industry	NN
,	,
to	TO
a	DT
man	NN
,	,
is	VBZ
on	IN
the	DT
side	NN
of	IN
preserving	VBG
''	''
the	DT
rules	NNS
.	.

Such	JJ
proclamations	NNS
leave	VBP
network	NN
officials	NNS
all	PDT
the	DT
more	RBR
doubtful	JJ
that	IN
the	DT
studios	NNS
will	MD
bend	VB
.	.

``	``
They	PRP
do	VBP
n't	RB
seem	VB
to	TO
have	VB
an	DT
incentive	NN
to	TO
negotiate	VB
,	,
''	''
says	VBZ
one	CD
network	NN
executive	NN
.	.

``	``
And	CC
there	EX
's	VBZ
no	DT
indication	NN
that	IN
Washington	NNP
is	VBZ
prepared	VBN
to	TO
address	VB
the	DT
rules	NNS
.	.

That	DT
's	VBZ
the	DT
problem	NN
,	,
is	VBZ
n't	RB
it	PRP
?	.
''	''

Indeed	RB
it	PRP
is	VBZ
.	.

Congress	NNP
has	VBZ
said	VBN
repeatedly	RB
it	PRP
wants	VBZ
no	DT
part	NN
of	IN
the	DT
mess	NN
,	,
urging	VBG
the	DT
studios	NNS
and	CC
the	DT
networks	NNS
,	,
which	WDT
license	VBP
rights	NNS
to	TO
air	NN
shows	NNS
made	VBN
by	IN
the	DT
studios	NNS
,	,
to	TO
work	VB
out	RP
their	PRP$
own	JJ
compromise	NN
.	.

But	CC
recent	JJ
developments	NNS
have	VBP
made	VBN
the	DT
networks	NNS
--	:
and	CC
NBC	NNP
President	NNP
Robert	NNP
Wright	NNP
,	,
in	IN
particular	JJ
--	:
ever	RB
more	RBR
adamant	JJ
that	IN
the	DT
networks	NNS
must	MD
be	VB
unshackled	JJ
to	TO
survive	VB
.	.

The	DT
latest	JJS
provocation	NN
:	:
Sony	NNP
Corp.	NNP
's	POS
plan	NN
to	TO
acquire	VB
Columbia	NNP
Pictures	NNPS
Entertainment	NNP
Inc.	NNP
for	IN
$	$
3.4	CD
billion	CD
,	,
and	CC
to	TO
buy	VB
independent	JJ
producer	NN
Guber	NNP
Peters	NNP
Entertainment	NNP
Co.	NNP
for	IN
$	$
200	CD
million	CD
.	.

``	``
I	PRP
wonder	VBP
what	WP
Walter	NNP
Cronkite	NNP
will	MD
think	VB
of	IN
the	DT
Sony\/Columbia	NNP
Broadcast	NNP
System	NNP
Trinitron	NNP
Evening	NNP
News	NNP
with	IN
Dan	NNP
Rather	NNP
broadcast	VBN
exclusively	RB
from	IN
Tokyo	NNP
,	,
''	''
wrote	VBD
J.B.	NNP
Holston	NNP
,	,
an	DT
NBC	NNP
vice	NN
president	NN
,	,
in	IN
a	DT
commentary	NN
in	IN
last	JJ
week	NN
's	POS
issue	NN
of	IN
Broadcasting	VBG
magazine	NN
.	.

In	IN
his	PRP$
article	NN
,	,
Mr.	NNP
Holston	NNP
,	,
who	WP
was	VBD
in	IN
Europe	NNP
last	JJ
week	NN
and	CC
unavailable	JJ
,	,
complained	VBD
that	IN
the	DT
``	``
archaic	JJ
restraints	NNS
''	''
in	IN
fin-syn	JJ
rules	NNS
have	VBP
``	``
contributed	VBN
directly	RB
to	TO
the	DT
acquisition	NN
of	IN
the	DT
studios	NNS
by	IN
non-U.S.	JJ
enterprises	NNS
.	.

''	''
(	(
He	PRP
did	VBD
n't	RB
mention	VB
that	IN
NBC	NNP
,	,
in	IN
the	DT
meantime	NN
,	,
was	VBD
hoping	VBG
to	TO
assist	VB
Australia	NNP
's	POS
Qintex	NNP
in	IN
buying	NN

An	DT
NBC	NNP
spokesman	NN
counters	NNS
that	IN
Mr.	NNP
Holston	NNP
's	POS
lament	NN
was	VBD
``	``
entirely	RB
consistent	JJ
''	''
with	IN
NBC	NNP
plans	NNS
because	IN
the	DT
U.S.	NNP
rules	NNS
would	MD
limit	VB
NBC	NNP
's	POS
involvement	NN
in	IN
the	DT
Qintex	NNP
deal	NN
so	RB
severely	RB
as	IN
to	TO
be	VB
``	``
light	JJ
years	NNS
away	RB
from	IN
the	DT
type	NN
of	IN
unrestrained	JJ
deals	NNS
available	JJ
to	TO
Sony	NNP
--	:
and	CC
everyone	NN
else	RB
except	IN
the	DT
three	CD
networks	NNS
.	.
''	''

The	DT
Big	NNP
Three	CD
's	POS
drumbeat	NN
for	IN
deregulation	NN
began	VBD
intensifying	VBG
in	IN
the	DT
summer	NN
when	WRB
the	DT
former	JJ
Time	NNP
Inc.	NNP
went	VBD
ahead	RB
with	IN
plans	NNS
to	TO
acquire	VB
Warner	NNP
.	.

Although	IN
Time	NNP
already	RB
had	VBD
a	DT
long-term	JJ
contract	NN
to	TO
buy	VB
movies	NNS
from	IN
Warner	NNP
,	,
the	DT
merger	NN
will	MD
let	VB
Time	NNP
's	POS
largely	RB
unregulated	JJ
pay-cable	JJ
channel	NN
,	,
Home	NNP
Box	NNP
Office	NNP
,	,
own	VB
the	DT
Warner	NNP
movies	NNS
aired	VBN
on	IN
HBO	NNP
--	:
a	DT
vertical	JJ
integration	NN
that	WDT
is	VBZ
effectively	RB
blocked	VBN
by	IN
fin-syn	JJ
regulations	NNS
.	.

NBC	NNP
's	POS
Mr.	NNP
Wright	NNP
led	VBD
the	DT
way	NN
in	IN
decrying	VBG
the	DT
networks	NNS
'	POS
inability	NN
to	TO
match	VB
a	DT
Time-Warner	NNP
combination	NN
.	.

He	PRP
spoke	VBD
up	RP
again	RB
when	WRB
the	DT
Sony	NNP
bid	NN
for	IN
Columbia	NNP
was	VBD
announced	VBN
.	.

Since	IN
NBC	NNP
's	POS
interest	NN
in	IN
the	DT
Qintex	NNP
bid	NN
for	IN
MGM\/UA	NNP
was	VBD
disclosed	VBN
,	,
Mr.	NNP
Wright	NNP
has	VBZ
n't	RB
been	VBN
available	JJ
for	IN
comment	NN
.	.

With	IN
a	DT
Qintex	NNP
deal	NN
,	,
NBC	NNP
would	MD
move	VB
into	IN
uncharted	JJ
territory	NN
--	:
possibly	RB
raising	VBG
hackles	NNS
at	IN
the	DT
studios	NNS
and	CC
in	IN
Washington	NNP
.	.

``	``
It	PRP
's	VBZ
never	RB
really	RB
been	VBN
tested	VBN
,	,
''	''
says	VBZ
William	NNP
Lilley	NNP
III	NNP
,	,
who	WP
as	IN
a	DT
top	JJ
CBS	NNP
executive	NN
spent	VBD
years	NNS
lobbying	VBG
to	TO
have	VB
the	DT
rules	NNS
lifted	VBN
.	.

He	PRP
now	RB
runs	VBZ
Policy	NNP
Communications	NNPS
in	IN
Washington	NNP
,	,
consulting	VBG
to	TO
media	NNS
companies	NNS
.	.

Fin-syn	JJ
rules	NNS
do	VBP
n't	RB
explicitly	RB
block	VB
a	DT
network	NN
from	IN
buying	VBG
a	DT
passive	JJ
,	,
small	JJ
stake	NN
in	IN
a	DT
company	NN
that	IN
profits	VBZ
from	IN
the	DT
rerun	NN
syndication	NN
networks	NNS
ca	MD
n't	RB
enjoy	VB
.	.

Hence	RB
,	,
NBC	NNP
might	MD
be	VB
able	JJ
to	TO
take	VB
,	,
say	VB
,	,
a	DT
5	CD
%	NN
stake	NN
in	IN
a	DT
company	NN
such	JJ
as	IN
MGM\/UA	NNP
.	.

If	IN
the	DT
transaction	NN
raised	VBD
objections	NNS
,	,
the	DT
studio	NN
's	POS
syndication	NN
operations	NNS
could	MD
be	VB
spun	VBN
off	IN
into	IN
a	DT
separate	JJ
firm	NN
in	IN
which	WDT
the	DT
network	NN
does	VBZ
n't	RB
have	VB
a	DT
direct	JJ
stake	NN
.	.

But	CC
such	JJ
convolutions	NNS
would	MD
still	RB
block	VB
the	DT
networks	NNS
from	IN
grabbing	VBG
a	DT
big	JJ
chunk	NN
of	IN
the	DT
riches	NN
of	IN
syndication	NN
.	.

Under	IN
current	JJ
rules	NNS
,	,
even	RB
when	WRB
a	DT
network	NN
fares	VBZ
well	RB
with	IN
a	DT
100%-owned	JJ
series	NN
--	:
ABC	NNP
,	,
for	IN
example	NN
,	,
made	VBD
a	DT
killing	NN
in	IN
broadcasting	VBG
its	PRP$
popular	JJ
crime\/comedy	NN
``	``
Moonlighting	NNP
''	''
--	:
it	PRP
is	VBZ
n't	RB
allowed	VBN
to	TO
share	VB
in	IN
the	DT
continuing	VBG
proceeds	NNS
when	WRB
the	DT
reruns	NNS
are	VBP
sold	VBN
to	TO
local	JJ
stations	NNS
.	.

Instead	RB
,	,
ABC	NNP
will	MD
have	VB
to	TO
sell	VB
off	RP
the	DT
rights	NNS
for	IN
a	DT
one-time	JJ
fee	NN
.	.

The	DT
networks	NNS
admit	VBP
that	IN
the	DT
chances	NNS
of	IN
getting	VBG
the	DT
relief	NN
they	PRP
want	VBP
are	VBP
slim	JJ
--	:
for	IN
several	JJ
years	NNS
at	IN
the	DT
least	JJS
.	.

Six	CD
years	NNS
ago	IN
they	PRP
were	VBD
tantalizingly	RB
close	JJ
.	.

The	DT
Reagan-era	NNP
Federal	NNP
Communications	NNPS
Commission	NNP
had	VBD
ruled	VBN
in	IN
favor	NN
of	IN
killing	VBG
most	JJS
of	IN
the	DT
rules	NNS
.	.

Various	JJ
evidence	NN
,	,
including	VBG
a	DT
Brookings	NNP
Institution	NNP
study	NN
of	IN
some	DT
800	CD
series	NN
that	IN
the	DT
networks	NNS
had	VBD
aired	VBN
and	CC
had	VBD
partly	RB
owned	VBN
in	IN
the	DT
1960s	CD
,	,
showed	VBD
the	DT
networks	NNS
did	VBD
n't	RB
wield	VB
undue	JJ
control	NN
over	IN
the	DT
studios	NNS
as	IN
had	VBD
been	VBN
alleged	VBN
.	.

But	CC
just	RB
eight	CD
days	NNS
before	IN
the	DT
rules	NNS
were	VBD
to	TO
die	VB
,	,
former	JJ
President	NNP
Ronald	NNP
Reagan	NNP
,	,
a	DT
one-time	JJ
actor	NN
,	,
intervened	VBD
on	IN
behalf	NN
of	IN
Hollywood	NNP
.	.

The	DT
FCC	NNP
effort	NN
collapsed	VBD
.	.

The	DT
networks	NNS
and	CC
studios	NNS
have	VBP
bickered	VBN
ever	RB
since	IN
.	.

Network	NN
officials	NNS
involved	VBN
in	IN
the	DT
studio	NN
talks	NNS
may	MD
hope	VB
the	DT
foreign	JJ
influx	NN
builds	VBZ
more	JJR
support	NN
in	IN
Washington	NNP
,	,
but	CC
that	DT
seems	VBZ
unlikely	JJ
.	.

In	IN
Congress	NNP
,	,
the	DT
issue	NN
falters	VBZ
:	:
It	PRP
's	VBZ
about	IN
money	NN
,	,
not	RB
program	NN
quality	NN
,	,
and	CC
Hollywood	NNP
has	VBZ
lots	NNS
of	IN
clout	NN
given	VBN
its	PRP$
fund	NN
raising	NN
for	IN
senators	NNS
and	CC
representatives	NNS
overseeing	VBG
the	DT
issue	NN
.	.

A	DT
spokesman	NN
for	IN
Rep.	NNP
Edward	NNP
J.	NNP
Markey	NNP
(	(
D-Mass.	NNP
)	)
,	,
who	WP
heads	VBZ
a	DT
subcommittee	NN
that	WDT
oversees	VBZ
the	DT
FCC	NNP
,	,
says	VBZ
Mr.	NNP
Markey	NNP
feels	VBZ
``	``
the	DT
world	NN
has	VBZ
been	VBN
forever	RB
changed	VBN
by	IN
the	DT
Sony-Columbia	NNP
deal	NN
.	.
''	''

But	CC
he	PRP
said	VBD
Mr.	NNP
Markey	NNP
hopes	VBZ
this	DT
pushes	VBZ
the	DT
networks	NNS
and	CC
studios	NNS
to	TO
work	VB
it	PRP
out	RP
on	IN
their	PRP$
own	JJ
.	.

And	CC
at	IN
the	DT
FCC	NNP
,	,
meanwhile	RB
,	,
new	JJ
Chairman	NNP
Alfred	NNP
C.	NNP
Sikes	NNP
has	VBZ
said	VBN
he	PRP
wants	VBZ
the	DT
two	CD
sides	NNS
to	TO
hammer	VB
out	RP
their	PRP$
own	JJ
plan	NN
.	.

Recognition	NNP
Equipment	NNP
Inc.	NNP
said	VBD
it	PRP
settled	VBD
a	DT
civil	JJ
action	NN
filed	VBN
against	IN
it	PRP
by	IN
the	DT
federal	JJ
government	NN
on	IN
behalf	NN
of	IN
the	DT
U.S.	NNP
Postal	NNP
Service	NNP
.	.

The	DT
government	NN
sued	VBD
the	DT
company	NN
in	IN
April	NNP
,	,
seeking	VBG
$	$
23,000	CD
and	CC
other	JJ
unspecified	JJ
damages	NNS
related	VBN
to	TO
an	DT
alleged	JJ
contract-steering	JJ
scheme	NN
.	.

The	DT
suit	NN
named	VBD
the	DT
company	NN
,	,
former	JJ
chief	NN
executive	NN
officer	NN
William	NNP
G.	NNP
Moore	NNP
Jr.	NNP
,	,
former	JJ
vice	NN
president	NN
Robert	NNP
W.	NNP
Reedy	NNP
and	CC
five	CD
defendants	NNS
who	WP
were	VBD
n't	RB
part	NN
of	IN
the	DT
company	NN
.	.

The	DT
suit	NN
charged	VBD
the	DT
defendants	NNS
with	IN
causing	VBG
Peter	NNP
E.	NNP
Voss	NNP
,	,
an	DT
ex-member	NN
of	IN
the	DT
Postal	NNP
Service	NNP
board	NN
of	IN
governors	NNS
,	,
to	TO
accept	VB
$	$
23,000	CD
in	IN
bribes	NNS
,	,
kickbacks	NNS
and	CC
gratuities	NNS
.	.

Mr.	NNP
Voss	NNP
was	VBD
previously	RB
sentenced	VBN
to	TO
four	CD
years	NNS
in	IN
prison	NN
and	CC
fined	VBN
$	$
11,000	CD
for	IN
his	PRP$
role	NN
in	IN
the	DT
scheme	NN
.	.

In	IN
the	DT
agreement	NN
,	,
Recognition	NN
agreed	VBD
to	TO
pay	VB
the	DT
government	NN
$	$
20,000	CD
in	IN
return	NN
for	IN
the	DT
release	NN
of	IN
all	DT
claims	NNS
against	IN
the	DT
company	NN
,	,
Mr.	NNP
Moore	NNP
and	CC
Mr.	NNP
Reedy	NNP
.	.

The	DT
five	CD
additional	JJ
defendants	NNS
were	VBD
n't	RB
parties	NNS
to	TO
the	DT
settlement	NN
.	.

A	DT
trial	NN
on	IN
criminal	JJ
allegations	NNS
against	IN
the	DT
company	NN
and	CC
the	DT
same	JJ
two	CD
former	JJ
executives	NNS
began	VBD
Sept.	NNP
27	CD
in	IN
federal	JJ
court	NN
for	IN
the	DT
District	NNP
of	IN
Columbia	NNP
.	.

They	PRP
were	VBD
indicted	VBN
last	JJ
October	NNP
on	IN
charges	NNS
of	IN
fraud	NN
,	,
theft	NN
and	CC
conspiracy	NN
related	VBN
to	TO
an	DT
effort	NN
to	TO
win	VB
$	$
400	CD
million	CD
in	IN
Postal	NNP
Service	NNP
equipment	NN
contracts	NNS
by	IN
the	DT
maker	NN
of	IN
data	NNS
management	NN
equipment	NN
.	.

The	DT
company	NN
and	CC
its	PRP$
executives	NNS
deny	VBP
the	DT
charges	NNS
.	.

In	IN
a	DT
related	VBN
development	NN
,	,
Recognition	NNP
Equipment	NNP
said	VBD
the	DT
Postal	NNP
Service	NNP
has	VBZ
barred	VBN
the	DT
company	NN
from	IN
bidding	VBG
on	IN
postal	JJ
contracts	NNS
for	IN
an	DT
additional	JJ
120	CD
days	NNS
.	.

The	DT
Postal	NNP
Service	NNP
originally	RB
suspended	VBD
the	DT
company	NN
Oct.	NNP
7	CD
,	,
1988	CD
,	,
and	CC
has	VBZ
been	VBN
renewing	VBG
the	DT
ban	NN
ever	RB
since	IN
.	.

The	DT
company	NN
said	VBD
it	PRP
will	MD
continue	VB
to	TO
pursue	VB
a	DT
lifting	NN
of	IN
the	DT
suspension	NN
.	.

Intel	NNP
Corp.	NNP
reported	VBD
a	DT
50	CD
%	NN
drop	NN
in	IN
third-quarter	NN
net	NN
income	NN
,	,
partly	RB
because	IN
of	IN
a	DT
one-time	JJ
charge	NN
for	IN
discontinued	VBN
operations	NNS
.	.

The	DT
big	JJ
semiconductor	NN
and	CC
computer	NN
maker	NN
,	,
said	VBD
it	PRP
had	VBD
net	NN
of	IN
$	$
72	CD
million	CD
,	,
or	CC
38	CD
cents	NNS
,	,
down	IN
50	CD
%	NN
from	IN
$	$
142.7	CD
million	CD
,	,
or	CC
78	CD
cents	NNS
a	DT
share	NN
.	.

The	DT
lower	JJR
net	NN
included	VBD
a	DT
charge	NN
of	IN
$	$
35	CD
million	CD
,	,
equal	JJ
to	TO
12	CD
cents	NNS
a	DT
share	NN
on	IN
an	DT
after-tax	JJ
basis	NN
,	,
for	IN
the	DT
cost	NN
of	IN
abandoning	VBG
a	DT
computer-systems	NNS
joint	NN
venture	NN
with	IN
Siemens	NNP
AG	NNP
of	IN
West	NNP
Germany	NNP
.	.

Earning	NN
also	RB
fell	VBD
from	IN
the	DT
year-ago	JJ
period	NN
because	IN
of	IN
slowing	VBG
microchip	NN
demand	NN
.	.

Sales	NNS
amounted	VBD
to	TO
$	$
771.4	CD
million	CD
,	,
down	IN
1.7	CD
%	NN
from	IN
$	$
784.9	CD
million	CD
.	.

Intel	NNP
's	POS
stock	NN
rose	VBD
in	IN
early	JJ
over-the-counter	NN
trading	NN
Friday	NNP
,	,
as	IN
investors	NNS
appeared	VBD
relieved	VBN
that	IN
the	DT
company	NN
's	POS
income	NN
from	IN
continuing	VBG
operations	NNS
was	VBD
only	RB
slightly	RB
below	IN
the	DT
second	JJ
quarter	NN
's	POS
earnings	NNS
of	IN
$	$
99.3	CD
million	CD
,	,
or	CC
53	CD
cents	NNS
a	DT
share	NN
,	,
and	CC
that	IN
sales	NNS
actually	RB
exceeded	VBD
the	DT
$	$
747.3	CD
million	CD
for	IN
the	DT
second	JJ
period	NN
.	.

But	CC
Intel	NNP
later	RB
succumbed	VBD
to	TO
the	DT
stock	NN
market	NN
's	POS
plunge	NN
,	,
closing	VBG
at	IN
$	$
31.75	CD
,	,
down	IN
$	$
2.125	CD
.	.

In	IN
August	NNP
,	,
Intel	NNP
warned	VBD
that	IN
third-quarter	NN
earnings	NNS
might	MD
be	VB
``	``
flat	JJ
to	TO
down	JJ
''	''
from	IN
the	DT
previous	JJ
period	NN
's	POS
because	IN
of	IN
slowing	VBG
sales	NNS
growth	NN
of	IN
its	PRP$
80386	CD
microprocessor	NN
,	,
start-up	JJ
costs	NNS
associated	VBN
with	IN
a	DT
line	NN
of	IN
computers	NNS
and	CC
costs	NNS
of	IN
preparing	VBG
for	IN
mass	NN
shipments	NNS
of	IN
the	DT
company	NN
's	POS
new	JJ
80486	CD
chip	NN
in	IN
the	DT
current	JJ
quarter	NN
.	.

On	IN
Friday	NNP
,	,
Andrew	NNP
S.Grove	NNP
,	,
Intel	NNP
president	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
said	VBD
``	``
Intel	NNP
's	POS
business	NN
is	VBZ
strong	JJ
.	.

Our	PRP$
bookings	NNS
improved	VBD
as	IN
the	DT
quarter	NN
progressed	VBD
and	CC
September	NNP
was	VBD
especially	RB
good	JJ
.	.

For	IN
the	DT
full	JJ
quarter	NN
,	,
our	PRP$
bookings	NNS
were	VBD
higher	JJR
than	IN
the	DT
previous	JJ
quarter	NN
,	,
and	CC
our	PRP$
book-to-bill	NN
ratio	NN
exceeded	VBD
1.0	CD
.	.
''	''

For	IN
the	DT
nine-month	JJ
period	NN
,	,
Intel	NNP
reported	VBD
net	NN
of	IN
$	$
268.3	CD
million	CD
,	,
or	CC
$	$
1.43	CD
a	DT
share	NN
,	,
down	IN
27	CD
%	NN
from	IN
$	$
367.1	CD
million	CD
,	,
or	CC
$	$
2.05	CD
a	DT
share	NN
.	.

Revenue	NN
amounted	VBD
to	TO
$	$
2.23	CD
billion	CD
,	,
up	IN
slightly	RB
from	IN
$	$
2.15	CD
billion	CD
.	.

Walter	NNP
Sisulu	NNP
and	CC
the	DT
African	NNP
National	NNP
Congress	NNP
came	VBD
home	NN
yesterday	NN
.	.

After	IN
26	CD
years	NNS
in	IN
prison	NN
,	,
Mr.	NNP
Sisulu	NNP
,	,
the	DT
77-year-old	JJ
former	JJ
secretary-general	NN
of	IN
the	DT
liberation	NN
movement	NN
,	,
was	VBD
dropped	VBN
off	RP
at	IN
his	PRP$
house	NN
by	IN
a	DT
prison	NN
services	NNS
'	POS
van	NN
just	RB
as	IN
the	DT
sun	NN
was	VBD
coming	VBG
up	IN
.	.

At	IN
the	DT
same	JJ
time	NN
,	,
six	CD
ANC	NNP
colleagues	NNS
,	,
five	CD
of	IN
whom	WP
were	VBD
arrested	VBN
with	IN
him	PRP
in	IN
1963	CD
and	CC
sentenced	VBN
to	TO
life	NN
imprisonment	NN
,	,
were	VBD
reunited	VBN
with	IN
their	PRP$
families	NNS
at	IN
various	JJ
places	NNS
around	IN
the	DT
country	NN
.	.

And	CC
as	IN
the	DT
graying	VBG
men	NNS
returned	VBD
to	TO
their	PRP$
homes	NNS
,	,
the	DT
ANC	NNP
,	,
outlawed	VBN
in	IN
South	NNP
Africa	NNP
since	IN
1960	CD
and	CC
still	RB
considered	VBN
to	TO
be	VB
the	DT
chief	NN
public	JJ
enemy	NN
by	IN
the	DT
white	JJ
government	NN
,	,
defiantly	RB
returned	VBD
to	TO
the	DT
streets	NNS
of	IN
the	DT
country	NN
's	POS
black	JJ
townships	NNS
.	.

A	DT
huge	JJ
ANC	NNP
flag	NN
,	,
with	IN
black	JJ
,	,
green	JJ
and	CC
gold	JJ
stripes	NNS
,	,
was	VBD
hoisted	VBN
over	IN
the	DT
rickety	JJ
gate	NN
at	IN
Mr.	NNP
Sisulu	NNP
's	POS
modest	JJ
house	NN
,	,
while	IN
on	IN
the	DT
street	NN
out	IN
front	NN
,	,
boys	NNS
displayed	VBD
the	DT
ANC	NNP
colors	NNS
on	IN
their	PRP$
shirts	NNS
,	,
caps	NNS
and	CC
scarves	NN
.	.

At	IN
the	DT
small	JJ
four-room	JJ
home	NN
of	IN
Elias	NNP
Motsoaledi	NNP
,	,
a	DT
leading	VBG
ANC	NNP
unionist	NN
and	CC
a	DT
former	JJ
commander	NN
in	IN
the	DT
group	NN
's	POS
armed	VBN
wing	NN
,	,
Umkhonto	NNP
we	PRP
Sizwe	NNP
,	,
well-wishers	NNS
stuck	VBD
little	JJ
ANC	NNP
flags	NNS
in	IN
their	PRP$
hair	NN
and	CC
a	DT
man	NN
tooted	VBD
on	IN
an	DT
antelope	NN
horn	NN
wrapped	VBN
in	IN
ANC	NNP
ribbons	NNS
.	.

``	``
I	PRP
am	VBP
happy	JJ
to	TO
see	VB
the	DT
spirit	NN
of	IN
the	DT
people	NNS
,	,
''	''
said	VBD
Mr.	NNP
Sisulu	NNP
,	,
looking	VBG
dapper	JJ
in	IN
a	DT
new	JJ
gray	JJ
suit	NN
.	.

As	IN
the	DT
crowd	NN
outside	IN
his	PRP$
home	NN
shouted	VBD
``	``
ANC	NNP
,	,
ANC	NNP
,	,
''	''
the	DT
old	JJ
man	NN
shot	VBD
his	PRP$
fists	NNS
into	IN
the	DT
air	NN
.	.

``	``
I	PRP
'm	VBP
inspired	VBN
by	IN
the	DT
mood	NN
of	IN
the	DT
people	NNS
.	.
''	''

Under	IN
the	DT
laws	NNS
of	IN
the	DT
land	NN
,	,
the	DT
ANC	NNP
remains	VBZ
an	DT
illegal	JJ
organization	NN
,	,
and	CC
its	PRP$
headquarters	NNS
are	VBP
still	RB
in	IN
Lusaka	NNP
,	,
Zambia	NNP
.	.

But	CC
the	DT
unconditional	JJ
release	NN
of	IN
the	DT
seven	CD
leaders	NNS
,	,
who	WP
once	RB
formed	VBD
the	DT
intellectual	JJ
and	CC
organizational	JJ
core	NN
of	IN
the	DT
ANC	NNP
,	,
is	VBZ
a	DT
de	FW
facto	FW
unbanning	NN
of	IN
the	DT
movement	NN
and	CC
the	DT
rebirth	NN
of	IN
its	PRP$
internal	JJ
wing	NN
.	.

``	``
The	DT
government	NN
can	MD
never	RB
put	VB
the	DT
ANC	NNP
back	NN
into	IN
the	DT
bottle	NN
again	RB
,	,
''	''
said	VBD
Cassim	NNP
Saloojee	NNP
,	,
a	DT
veteran	JJ
anti-apartheid	NN
activist	NN
on	IN
hand	NN
to	TO
welcome	VB
Mr.	NNP
Sisulu	NNP
.	.

``	``
Things	NNS
have	VBP
gone	VBN
too	RB
far	RB
for	IN
the	DT
government	NN
to	TO
stop	VB
them	PRP
now	RB
.	.

There	EX
's	VBZ
no	DT
turning	VBG
back	NN
.	.
''	''

There	EX
was	VBD
certainly	RB
no	RB
stopping	VBG
the	DT
tide	NN
of	IN
ANC	NNP
emotion	NN
last	JJ
night	NN
,	,
when	WRB
hundreds	NNS
of	IN
people	NNS
jammed	VBD
into	IN
the	DT
Holy	NNP
Cross	NNP
Anglican	NNP
Church	NNP
in	IN
Soweto	NNP
for	IN
what	WP
became	VBD
the	DT
first	JJ
ANC	NNP
rally	NN
in	IN
the	DT
country	NN
in	IN
30	CD
years	NNS
.	.

Deafening	VBG
chants	NNS
of	IN
``	``
ANC	NNP
''	''
and	CC
``	``
Umkhonto	NNP
we	PRP
Sizwe	NNP
''	''
shook	VBD
the	DT
church	NN
as	IN
the	DT
seven	CD
aging	VBG
men	NNS
vowed	VBD
that	IN
the	DT
ANC	NNP
would	MD
continue	VB
its	PRP$
fight	NN
against	IN
the	DT
government	NN
and	CC
the	DT
policies	NNS
of	IN
racial	JJ
segregation	NN
on	IN
all	DT
fronts	NNS
,	,
including	VBG
the	DT
armed	VBN
struggle	NN
.	.

And	CC
they	PRP
called	VBD
on	IN
the	DT
government	NN
to	TO
release	VB
Nelson	NNP
Mandela	NNP
,	,
the	DT
ANC	NNP
's	POS
leading	VBG
figure	NN
,	,
who	WP
was	VBD
jailed	VBN
with	IN
them	PRP
and	CC
remains	VBZ
in	IN
prison	NN
.	.

Without	IN
him	PRP
,	,
said	VBD
Mr.	NNP
Sisulu	NNP
,	,
the	DT
freeing	NN
of	IN
the	DT
others	NNS
``	``
is	VBZ
only	RB
a	DT
half-measure	NN
.	.
''	''

President	NNP
F.W.	NNP
de	NNP
Klerk	NNP
released	VBD
the	DT
ANC	NNP
men	NNS
--	:
along	IN
with	IN
one	CD
of	IN
the	DT
founding	VBG
members	NNS
of	IN
the	DT
Pan	NNP
Africanist	NNP
Congress	NNP
,	,
a	DT
rival	JJ
liberation	NN
group	NN
--	:
as	IN
part	NN
of	IN
his	PRP$
efforts	NNS
to	TO
create	VB
a	DT
climate	NN
of	IN
trust	NN
and	CC
peace	NN
in	IN
which	WDT
his	PRP$
government	NN
can	MD
begin	VB
negotiations	NNS
with	IN
black	JJ
leaders	NNS
over	IN
a	DT
new	JJ
constitution	NN
aimed	VBN
at	IN
giving	VBG
blacks	NNS
a	DT
voice	NN
in	IN
national	JJ
government	NN
.	.

But	CC
Pretoria	NNP
may	MD
instead	RB
be	VB
creating	VBG
a	DT
climate	NN
for	IN
more	JJR
turmoil	NN
and	CC
uncertainty	NN
in	IN
this	DT
racially	RB
divided	VBN
country	NN
.	.

As	IN
other	JJ
repressive	JJ
governments	NNS
,	,
particularly	RB
Poland	NNP
and	CC
the	DT
Soviet	NNP
Union	NNP
,	,
have	VBP
recently	RB
discovered	VBN
,	,
initial	JJ
steps	NNS
to	TO
open	VB
up	RP
society	NN
can	MD
create	VB
a	DT
momentum	NN
for	IN
radical	JJ
change	NN
that	WDT
becomes	VBZ
difficult	JJ
,	,
if	IN
not	RB
impossible	JJ
,	,
to	TO
control	VB
.	.

As	IN
the	DT
days	NNS
go	VBP
by	IN
,	,
the	DT
South	JJ
African	JJ
government	NN
will	MD
be	VB
ever	RB
more	RBR
hard	RB
pressed	VBN
to	TO
justify	VB
the	DT
continued	VBN
imprisonment	NN
of	IN
Mr.	NNP
Mandela	NNP
as	RB
well	RB
as	IN
the	DT
continued	VBN
banning	NN
of	IN
the	DT
ANC	NNP
and	CC
enforcement	NN
of	IN
the	DT
state	NN
of	IN
emergency	NN
.	.

If	IN
it	PRP
does	VBZ
n't	RB
yield	VB
on	IN
these	DT
matters	NNS
,	,
and	CC
eventually	RB
begin	VB
talking	VBG
directly	RB
to	TO
the	DT
ANC	NNP
,	,
the	DT
expectations	NNS
and	CC
promise	NN
raised	VBN
by	IN
yesterday	NN
's	POS
releases	NNS
will	MD
turn	VB
to	TO
disillusionment	NN
and	CC
unrest	NN
.	.

If	IN
it	PRP
does	VBZ
,	,
the	DT
large	JJ
number	NN
of	IN
right-wing	JJ
whites	NNS
,	,
who	WP
oppose	VBP
any	DT
concessions	NNS
to	TO
the	DT
black	JJ
majority	NN
,	,
will	MD
step	VB
up	RP
their	PRP$
agitation	NN
and	CC
threats	NNS
to	TO
take	VB
matters	NNS
into	IN
their	PRP$
own	JJ
hands	NNS
.	.

The	DT
newly	RB
released	VBN
ANC	NNP
leaders	NNS
also	RB
will	MD
be	VB
under	IN
enormous	JJ
pressure	NN
.	.

The	DT
government	NN
is	VBZ
watching	VBG
closely	RB
to	TO
see	VB
if	IN
their	PRP$
presence	NN
in	IN
the	DT
townships	NNS
leads	VBZ
to	TO
increased	VBN
anti-government	NN
protests	NNS
and	CC
violence	NN
;	:
if	IN
it	PRP
does	VBZ
,	,
Pretoria	NNP
will	MD
use	VB
this	DT
as	IN
a	DT
reason	NN
to	TO
keep	VB
Mr.	NNP
Mandela	NNP
behind	IN
bars	NNS
.	.

Pretoria	NNP
has	VBZ
n't	RB
forgotten	VBN
why	WRB
they	PRP
were	VBD
all	DT
sentenced	VBN
to	TO
life	NN
imprisonment	NN
in	IN
the	DT
first	JJ
place	NN
:	:
for	IN
sabotage	NN
and	CC
conspiracy	NN
to	TO
overthrow	VB
the	DT
government	NN
.	.

In	IN
addition	NN
,	,
the	DT
government	NN
is	VBZ
figuring	VBG
that	IN
the	DT
releases	NNS
could	MD
create	VB
a	DT
split	NN
between	IN
the	DT
internal	JJ
and	CC
external	JJ
wings	NNS
of	IN
the	DT
ANC	NNP
and	CC
between	IN
the	DT
newly	RB
freed	VBN
leaders	NNS
and	CC
those	DT
activists	NNS
who	WP
have	VBP
emerged	VBN
as	IN
leaders	NNS
inside	IN
the	DT
country	NN
during	IN
their	PRP$
imprisonment	NN
.	.

In	IN
order	NN
to	TO
head	VB
off	RP
any	DT
divisions	NNS
,	,
Mr.	NNP
Mandela	NNP
,	,
in	IN
a	DT
meeting	NN
with	IN
his	PRP$
colleagues	NNS
before	IN
they	PRP
were	VBD
released	VBN
,	,
instructed	VBD
them	PRP
to	TO
report	VB
to	TO
the	DT
ANC	NNP
headquarters	NN
in	IN
Lusaka	NNP
as	RB
soon	RB
as	IN
possible	JJ
.	.

The	DT
men	NNS
also	RB
will	MD
be	VB
faced	VBN
with	IN
bridging	VBG
the	DT
generation	NN
gap	NN
between	IN
themselves	PRP
and	CC
the	DT
country	NN
's	POS
many	JJ
militant	JJ
black	JJ
youths	NNS
,	,
the	DT
so-called	JJ
young	JJ
lions	NNS
who	WP
are	VBP
anxious	JJ
to	TO
see	VB
the	DT
old	JJ
lions	NNS
in	IN
action	NN
.	.

Says	VBZ
Peter	NNP
Mokaba	NNP
,	,
president	NN
of	IN
the	DT
South	NNP
African	NNP
Youth	NNP
Congress	NNP
:	:
``	``
We	PRP
will	MD
be	VB
expecting	VBG
them	PRP
to	TO
act	VB
like	IN
leaders	NNS
of	IN
the	DT
ANC	NNP
.	.
''	''

They	PRP
never	RB
considered	VBD
themselves	PRP
to	TO
be	VB
anything	NN
else	RB
.	.

At	IN
last	JJ
night	NN
's	POS
rally	NN
,	,
they	PRP
called	VBD
on	IN
their	PRP$
followers	NNS
to	TO
be	VB
firm	JJ
,	,
yet	RB
disciplined	VBN
,	,
in	IN
their	PRP$
opposition	NN
to	TO
apartheid	NN
.	.

``	``
We	PRP
emphasize	VBP
discipline	NN
because	IN
we	PRP
know	VBP
that	IN
the	DT
government	NN
is	VBZ
very	RB
,	,
very	RB
sensitive	JJ
,	,
''	''
said	VBD
Andrew	NNP
Mlangeni	NNP
,	,
another	DT
early	JJ
Umkhonto	NNP
leader	NN
who	WP
is	VBZ
now	RB
63	CD
.	.

``	``
We	PRP
want	VBP
to	TO
see	VB
Nelson	NNP
Mandela	NNP
and	CC
all	PDT
our	PRP$
comrades	NNS
out	IN
of	IN
prison	NN
,	,
and	CC
if	IN
we	PRP
are	VBP
n't	RB
disciplined	VBN
we	PRP
may	MD
not	RB
see	VB
them	PRP
here	RB
with	IN
us	PRP
.	.