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lead chinese industrial production rose 7.5 percent , or 35 . 03 billion , in september , the official new china news_agency said . during the first nine months of the year , output totaled 297 . 66 billion , a 3.1 percent increase from last year . china produced 24 . 36 billion in industrial goods for export between january and september , a_37 . 1 percent rise over the period last year . chinese industrial production rose 7.5 percent , or 35 . 03 billion , in september , the official new china news_agency said . during the first nine months of the year , output totaled 297 . 66 billion , a 3.1 percent increase from last year . china produced 24 . 36 billion in industrial goods for export between january and september , a_37 . 1 percent rise over the period last year .

he is dressed in urban fatigues , but there will be no blending in for lapo elkann . there never really has been . born into the all powerful agnelli family , the italian version of the kennedys in power , money and tragedy , he was one of its bright_spots a top executive at fiat , with a flashy style , an energetic charm and a publicly cultivated reputation as one of italy 's most envied bachelors . but 18 months ago all that came to a very public end . he was found near death in a coma from a cocaine and heroin overdose , in the apartment of a 54 year old transsexual prostitute named patrizia . it was front page news in every major newspaper including the one owned by his family . when he was released from the hospital , he promptly left the country . now , he is back in what has been a slow and meticulously managed return to italy after an exile in america . ostensibly , his renewed visibility is to promote his new designer eyewear line , italian independent . but another , far more delicate campaign is at work here , the one to restore his image and by extension that of his family with his countrymen . but mr . elkann , 29 , is very clear about one thing he is not asking for anyone 's forgiveness . ''i have never let down italy and i never will , '' he said during a rare interview in the lobby of a hotel on the outskirts of bologna . ''i love my country and i owe a lot to my country , and in that sense whatever i can and will be able to do for my country i will do . '' with his signature mane of red hair pulled back , mr . elkann spoke on a range of subjects that include his new passion for design ( ''i am not yet even a decent designer , but i love it'' ) , the mission statement of his new company ( ''my key goal is to make complexity become your simplicity'' ) and why he currently prefers life in new york over italy ( ''it does n't allow you to be lazy'' ) . but the task of reinserting himself into italy will not be easy . apart from his own problems , he has the steep history of his family to contend with . ''i believe that in italy there are two important things . one is the vatican and the other is the agnelli family , '' said the writer giancarlo galli , who wrote a biography of gianni_agnelli , mr . elkann 's grandfather . ''and in the same way italians love and hate the vatican they also love and hate the agnellis , '' he said . gianni_agnelli is a near mythic figure in italy a fabled industrialist who turned his family 's car company into the most important company in italy and one of the major european car builders . he was also a subtle yet extremely powerful behind the scenes political player for decades . ''put together , '' mr . galli added , ''the agnellis represent many things . '' and not all of those things are good . one potential liability for mr . elkann whose mother , margherita agnelli , was the only daughter of gianni is his maverick streak . he has a disdain for convention and his unpredictability can flare up , as it did during the interview , when he aired an extraordinary theory that his overdose may have been orchestrated by luciano moggi , the disgraced former head of juventus , which the agnelli family owns . mr . moggi resigned last year and has remained under investigation for his role in a soccer game fixing scandal . mr . elkann says the two argued a week before the episode . ''why was there a photographer already waiting at the hospital ? '' when he arrived in the ambulance , he asked . mr . elkann speaks in grandiose terms befitting someone of his pedigree but also emits an affected earnestness of someone who seems to be grasping for some acknowledgment that has long escaped his reach . he is sober now , he said , but he chain smoked through the interview , at the end of which he openly admitted that he was no saint . he blamed the strain of watching his family company pass through an especially difficult period for the events of the now infamous evening . ''i am an obsessive personality , '' he said . ''and if you are an obsessive personality you need to be aware of it and be able to drive it with success . there are moments in your life when you are driving it well but you shift and you shift badly and you hurt yourself . it 's like a car accident we all have crashes , and i was very lucky not to die in that crash . '' but this is not simply about mr . elkann 's fall from grace or his graceful return to the covers of fashion magazines . it is merely the latest chapter in the saga of the agnellis and their role as italy 's unofficial royal family . because of fiat 's historical importance to italy ( at one point accounting for almost 5 percent of the country 's economy ) , the government has , at times , stepped in to underwrite and subsidize the carmaker , which has not endeared the family to portions of the taxpaying italian citizenry . the agnellis have also been immersed in drama and a series of tragedies , including drug overdoses , divorces , abrupt deaths , suicides and internal power struggles . and there has been no shortage of schadenfreude over mr . elkann 's fall . he is currently being parodied as a character on a popular italian comedy show . ''how are you supposed to deal with it ? '' mr . elkann said , when asked about the parody and jokes . ''you 've got to laugh about it and to smile about it . if you come from a family like mine , and challenge yourself to do new things and have success being satirized , you just have to accept it . '' but mr . elkann also knows a thing or two about image control . he previously served as worldwide director of brand promotion for fiat and was credited with rejuvenating the company by splashing the fiat trademark across sweatshirts , wine bottles , watches , luggage and chocolate . whether on the covers of tabloids or business journals , he was the public face of fiat . luciano regolo , the director of novella 2000 , a celebrity magazine that has chronicled mr . elkann 's life , said that the italian public was ready to move on . ''in this case his actions were not dishonest against the public or business , '' he said . ''i do n't think if it is a drug problem that he has to ask forgiveness . '' mr . elkann repeatedly noted that life was a long journey ''a marathon'' and he had a message for his enemies he intends to be waiting for them at the finish line , with a smile on his face . ''in america if you succeed you do n't have to apologize , '' mr . elkann said . ''in italy success is envied , and envy is the worst , worst , worst thing in the world . it 's easy for me to say , because i have had more than many others , but at the end of the day i have never envied anyone . i wish to no one that they waste their time envying anyone else . '' the saturday profile.

companies ranging in size from fleet bank to the mount_kisco frame shop will be among 50 employers to be honored on monday for hiring disabled workers at the 15th annual achievement awards breakfast at doral arrowwood in rye_brook . sixty three disabled workers will also be honored . the event is sponsored by the county 's office for the disabled and the westchester employment network , with support from the state_department of labor 's job service employment committee . county_executive andrew j . spano will present a certificate of merit to joseph crimmins , general_manager of doral arrowwood , for supporting the event since its inception . most of the employers to be honored are retailers , though the scarsdale public_library , white_plains hospital and the northern westchester center for the arts are among the honorees . in business.

arrayed behind george w . bush as he unveiled his nuclear policy initiative last month were two former secretaries of state , two former national_security advisers and a former secretary of defense . but once mr . bush and his formidable lineup of older men left the stage , the foreign_policy expert who fielded questions on the specifics of the texas governor 's proposal was not henry a . kissinger or colin_powell . it was condoleezza_rice , a 45 year old university professor who is tutoring a presidential_candidate who concedes that he has much to learn about the world . the nuclear policy speech provided the ideal platform for ms . rice , mr . bush 's chief foreign_policy adviser . russia , its nuclear_arsenal , and america 's defense posture are areas that she has studied for years , both as a professor of political_science at stanford_university and as a russia specialist on the national_security_council in the first two years of the bush_administration . now she plays what she calls ''quarterback'' for a disparate foreign_policy team , the ''vulcans , '' whose mission is to prove that mr . bush has enough global brainpower to be president . ( the advisers take their name from the ancient god of the forge , whose statue is a symbol of birmingham , ala . , ms . rice 's hometown . ) among the vulcans , ms . rice is closest by far to mr . bush , whom she is leading in a grand global tutorial as she tries to convince others that what he lacks in international knowledge and experience he makes up for in what she calls ''good instincts . '' but a series of interviews indicate that ms . rice is much less sure footed when the terrain is unfamiliar . her silky voice becomes choppy , her crisp sentences vague . she takes a dim view of american military intervention , particularly for humanitarian reasons , but declines to specify the circumstances in which the use of force would be justified . she proposes ''perhaps skipping a generation'' of weapons technology to build armed_forces that are ''lighter and more lethal , '' but wo n't say which hardware and weapons systems could be sacrificed . speaking before the summit meeting of the leaders of south and north_korea , she labeled north_korea a ''rogue state'' but did not lay out a scenario for dealing with it except to say that ''the north koreans should know that this is not all positive carrots , that there 's a potential stick out there . '' and she calls america 's one china policy , a linchpin of american foreign_policy that regards taiwan as part of mainland_china , a ''holding device . '' ms . rice herself admits that there are vast swaths of the world that are new to her . ''i 've been pressed to understand parts of the world that have not been part of my scope , '' she said . ''i 'm really a europeanist . '' her first book was a learned work on the czechoslovak army another she co authored on the reunification of germany in 1995 was extremely well received . ms . rice is talked about in washington circles as a shoo in for national_security adviser if mr . bush makes it to the white_house , perhaps twinned with general powell as secretary of state . when mr . bush was asked in a telephone interview about the possibility of having two african_americans leading his foreign_policy team , he said , ''it 's way too premature . '' when ms . rice was asked the same question , she replied , ''it 's really not appropriate to talk about a cabinet until he 's won . '' as for general powell , his answer was more concise ''nice try . '' ms . rice , an only child raised in a segregated , bourgeois district of birmingham , and originally destined to be a concert pianist , can dazzle on many a stage . at a recent republican fund_raising reception in silicon_valley , she sang part of the star spangled banner ( the obscure second verse ) . she played the battle hymn of the republic on a grand_piano . she showed off snippets of fluent russian . and she delivered with no notes a_20 minute speech praising the potential of mr . bush to lead the world . she knows how to be stridently self confident . ( ''i have a really good memory . '' ''i am a really fast writer . '' ''there was a time in my life when i knew the general staff of the soviet_union better than it knew itself . '' ) ''condi 's entire life has been a high wire act , '' said coit blacker , a fellow professor at stanford , a former russia specialist on the clinton_administration 's national_security_council and a close friend of ms . rice . ''she can stand up in front of a crowd and wing it . i have been with her any number of times when she 's about to give a speech and she writes it on the back of an envelope on the drive over . it springs from deep confidence but also a tendency to engage in death defying acts . '' ms . rice has been performing since her parents pushed her onto the stage for her first piano recital at the age of four . when she realized she was not good enough for a concert career , she turned to academic pursuits , becoming a professor and eventually provost at stanford . ms . rice and mr . bush seem to share a similar view of the world . it is a balance of power , realist republican approach that is generally short on details and might be summed up like this strengthen america 's military , scale back military commitments abroad and focus on the big powers . under the clinton_administration , ms . rice argued in an article in foreign_affairs , ''national interest'' was too often replaced by ''humanitarian interest'' or the interests of ''the international_community . '' instead , she suggested , the united_states should take the attitude that what is in its own interest spreading democracy and free_trade , for example is good for the world . mr . bush has unabashedly shown his dependence on ms . rice , the daughter of educators who started her political life as a democrat , switched sides in 1982 , informally advised democrat gary_hart on foreign_policy in his 1988 bid for the presidency , and has called herself ''an all over the map republican . '' ms . rice is a fit for mr . bush . ''there 's a real chemistry between them , '' said dov s . zakheim , one of the vulcans . ''i like to be around her , '' mr . bush said . ''she 's fun to be with . i like lighthearted people , not people who take themselves so seriously that they are hard to be around . '' besides , he said , ''she 's really smart ! '' mr . bush feels comfortable asking her the most basic questions . he has identified ms . rice as the person who ''can explain to me foreign_policy matters in a way i can understand . '' karen_hughes , mr . bush 's communications director , said that when she recently showed him a news article about the strife in sierra_leone , mr . bush told her to ''call condi and see what she thinks . '' ms . rice 's role is all the more critical because mr . bush does n't like to read briefing books on the nuts and bolts of national_security , and his lack of experience in foreign_affairs has raised questions about his preparedness for the white_house . when a writer for glamour magazine recently uttered the word ''taliban'' the regime in afghanistan that follows an extreme and repressive version of islamic_law during a verbal rorschach test , mr . bush could only shake his head in silence . it was only after the writer gave him a hint ( ' 'repression of women in afghanistan'' ) that mr . bush replied , ''oh . i thought you said some band . the taliban in afghanistan ! absolutely . repressive . '' of course , afghanistan is also not ms . rice 's primary area of expertise . asked in an interview to support her assertion in her recent article in foreign_affairs that iran is trying to spread ''fundamentalist islam'' beyond its borders , she replied , ''iran has been the state hub for technology and money and lots of other goodies to radical fundamentalist groups , some will say as far reaching as the taliban . '' when reminded that iran was a bitter enemy of the taliban and that the two countries had almost gone to war in late 1998 , she replied , ''they were sending stuff to the region that fell into the hands of bad players in afghanistan and pakistan . '' she did not identify ''the bad players . '' ( in a subsequent conversation , she said that of course she knew that iran and the taliban were enemies ) . on iraq , she believes that president saddam_hussein is an evil man , but declined to say what a george w . bush_administration would do to get rid of him . despite her deliberate vagueness in areas with which she is unfamiliar , she has a reputation for being a quick study . for the nuclear policy speech last month , which called for building a national missile_defense system combined with reductions and possibly unilateral cuts in america 's nuclear_arsenal , ms . rice said she played a central role . she began working on what she called ''a sustainable position on nuclear policy'' at a vulcans retreat a year ago and continued developing ideas with the eight member group , which includes former senior pentagon and state_department officials such as paul d . wolfowitz , robert b . zoellick , richard l . armitage and richard_perle . she spent endless hours with mr . bush himself , going over the speech line by line , explaining the implications of every issue . when he did n't want to read the questions and answers about the speech prepared for him , she and mr . wolfowitz drilled him verbally instead . she also sought out mr . kissinger , general powell , former secretary of state george p . shultz , former national_security adviser brent_scowcroft and others , soliciting their views , sending them drafts of the speech , coaxing them into attending the event . ms . rice ( whose first name is pronounced kahn dah lee za ) and mr . bush got to know each other in 1995 , when she traveled to austin at the invitation of former president_bush . she and the younger mr . bush bonded over baseball , as mr . bush , then a co owner of the texas_rangers , showed off his display cases full of signed baseballs . ms . rice , a self described fanatical sports fan , told stories about willie_mays , whom her mother had once taught in high_school . ''governor bush was very impressed , '' ms . rice said . they met again at the bush_family vacation compound in kennebunkport , maine , in 1998 . while she ran on the treadmill , he rowed and pedaled . ''what about relations with russia , what about relations with china ? '' ms . rice quoted mr . bush as asking . ''what about the state of the military ? '' ms . rice is used to maneuvering among powerful men . she sits on the boards of corporations such as the charles schwab corporation and the chevron_corporation , which has even named a bahamian flagged supertanker after her . her mentor at the university of denver was josef korbel , the father of secretary of state madeleine k . albright , who helped her ''fall in love'' with russian history , she said . as a freshly_minted ph . d . in 1981 , she joined the stanford faculty . in 1993 , she became the youngest , the first female and the first non white provost . faced with a 43 million deficit , she cut services and fired staff members with only limited consultations with the faculty . ''i do n't do committees , '' she said . ( she is on leave from the faculty , although she has resigned her position as provost . ) like mr . bush , ms . rice is a fitness enthusiast . she does strength training twice a week with stanford 's football_coach and endurance training with a second stanford coach twice more . single , she said she does not do recreational reading and does not have fun by accident . ''i schedule fun , '' she said . a headline in the current issue of george magazine , which included eight photos of ms . rice in the gym , reads , ''bush 's kissinger . she can kick your butt , too . '' indeed , said mr . armitage , an assistant secretary of defense in the reagan_administration , ''i would bet that if you look behind her , the ground is littered with the bodies of those who underestimated her . '' although ms . rice is determined to see her star pupil make it to the white_house , she insists that she is not wedded to the idea of serving in government again . she lasted only two years in the bush_administration before she went back to stanford . general scowcroft , her former boss , said in an interview that she left to find a spouse and have a family . marlin fitzwater , president_bush 's spokesman , said , ''i offered to marry her every other day . '' ms . rice winced when told what her two former colleagues said about her , explaining that the reason for leaving was a bit different . ''i wanted a life , '' she said . ''these jobs are all consuming . and i have strong reservations about going back to that all consuming life . '' the 2000 campaign the advisor.

lead the cbs sony group , the japanese subsidiary of the sony_corporation , will reduce production of records for sale in japan , shifting to compact_disks and tapes instead , a company spokesman said today . the cbs sony group , the japanese subsidiary of the sony_corporation , will reduce production of records for sale in japan , shifting to compact_disks and tapes instead , a company spokesman said today . the group , a former joint_venture of sony and cbs inc . 's cbs records group , will start the shift early next year , recalling and scrapping slow selling records starting in february , the spokesman said . ''but we will continue to produce strong selling records , '' he added . cbs sony sells nine times as many compact_disks in japan as records , the spokesman said . he did not give details of recent sales or say whether the company planned similar moves outside japan . cbs sony plans to allocate the staff and money involved in its record section to its video production and audio_visual sections , the spokesman said . sony bought out the cbs share of the recording unit in january . the media business.

officials said four weapons were involved in the littleton shootings a 9 millimeter_pistol and a carbine , both of which were initially bought in colorado , and two older sawed off shotguns . federal law enforcement officials said the pistol was a tech dc 9 with a large capacity magazine made by intratec firearms , of miami . the manufacture of this semiautomatic weapon was banned in the 1994 anti crime law , but the weapon still can be sold . buyers must be 21 years old , with no criminal_record . the pistol was bought at a store in the denver area , but not by either of the two teen_agers accused in the shootings on tuesday in littleton , colo . , officials said . the officials almost certainly can identify the original buyer , but they are withholding the information pending their investigation . the hi point carbine , also a semiautomatic , is a widely available weapon that may legally be sold to anyone over 18 without a criminal_record . this gun was also bought at a store in the denver area , but not by either of the teen_agers the officials said . of the two 12 gauge shotguns , one is a pump action mossberg and the other is double barreled . it is unclear who bought them . a shotgun may be legally purchased by anyone over 18 without a criminal_record . terror in littleton.

french teams in the tour de france surged to the front early_today , attacking left and right until a seven man breakaway took wing . even such teams as bigmat auber 93 and jean delatour proved they were not dead , only sleeping through the first two and a half weeks of the tour , which ends sunday in paris . one rider from each joined colleagues from festina , cr_dit_agricole , la fran_aise des jeux and ag2r prevoyance french teams all and a danish rider from csc tiscali of denmark . four of the french teams were represented by mercenaries jens voigt , a german bradley mcgee , an australian luis perez , a spaniard and aleksandr botcharov , a russian . the dane was nicki sorensen . all seven riders stood low in the overall standing and presented no threat to lance_armstrong , the leader , so were allowed to speed away on a blazingly hot 16th stage , 227 . 5 kilometers ( 141 miles ) over a rolling course with two small climbs . at the finish , voigt and mcgee were alone at the front and the german , who rides for cr_dit_agricole , passed his weary la fran_aise des jeux companion with 300 meters ( 984 feet ) left to win by five seconds . ''empty , empty , '' said mcgee , who added that in the last 500 meters ( 1 , 640 feet ) , he ' 'saw black . '' voigt had labored through the pyrenees in the hope of excelling once the tour returned to the plains yesterday . today , he had recovered his usual strength and powered the two man attack 25 kilometers ( 15 . 5 miles ) to the finish . he finished in 5 hours 27 minutes 11 seconds for the ride north from castelsarrasin to sarran , down among the sheltering chestnut trees of the corr ze region , the nut 's home territory . the speed translated into 42 kilometers an hour ( 26 miles an hour ) . botcharov , who rides for ag2r , was third , 1 59 behind , with sorensen of csc fourth , perez of festina fifth , st phane heulot of bigmat sixth and eddy seigneur of jean delatour seventh . disrupted by a mass crash , the main pack finished at least 25 45 behind the winner and there was no change in the overall leadership . armstrong , the leader of the united_states_postal_service team and the nearly certain winner of his third successive tour de france , remained first by 5 05 over jan ullrich , the german leader of telekom . before the pack got here , nearly two dozen riders were left sprawled on the road outside the city of tulle , 200 kilometers ( 124 miles ) into the stage . five of them had to be taken to a hospital with probable broken collarbones . of the 189 riders who started the tour , 146 remain . voigt also wore the yellow jersey for a day a week ago and was asked to compare that sensation with his victory in the daily stage . ''about the same , '' he said , ''but the stage victory will probably remain with me longer . '' a model team worker , the german is at the end of his contract with the team and is listening to offers to remain or to join postal_service or coast , a second division team in germany that is trying to bulk up and win a tour invitation . whatever happens , his price just went up . cycling.

top selling prescription_drugs typically cost much more in the united_states than in britain , where drug company profits are limited as part of a national_health_insurance program , the general_accounting_office said in a report today . drug company executives challenged many of the findings , but members of congress cited the report as evidence that the government should impose some restraints on drug prices , as president_clinton has proposed . the general_accounting_office , an investigative arm of congress , said factory prices for 77 frequently dispensed drugs were 60 percent higher in this country than in britain in 1992 . for 47 of these drugs , it said , prices in the united_states were more than twice as high as those in britain . auditors and economists from the accounting agency said the price differentials were smaller for new drugs than for older products . in bringing new drugs to market in recent years , manufacturers say they have tried to set similar prices in all the industrialized_countries . representative henry a . waxman , chairman of the energy and commerce subcommittee on health , said britain 's experience showed it was possible to have lower drug prices and a " thriving research based pharmaceutical_industry . " mr . waxman , a california democrat , requested the study . drugs in the study were chosen from a list of the 200 prescription products most frequently dispensed in the united_states in 1991 . the auditors focused on 77 products available in the same form and strength in britain and the united_states . they compared prices charged by manufacturers to wholesalers for drugs distributed to consumers at retail pharmacies . these consumers account for most prescriptions but generally do not benefit from discounts , the report said . the main yardstick used by the accounting agency did not measure the effect of drug discounts available to big buyers like hospitals , some health maintenance organizations and mail_order pharmacies . nor did it measure the effect of generic_drugs , the low cost copies of brand name products whose patents have expired . but the investigators concluded that the large differences between american and british drug prices " persisted even after accounting for generic_drugs and manufacturers' discounts . " in an interview last month , dr . sheldon g . gilgore , chairman of g . d . searle company , who is also chairman elect of the pharmaceutical manufacturers association , said " the fact of the matter is , prices in the united_states are higher than in the united_kingdom or france or germany or italy or spain . we cannot deny that they are higher . but you cannot fuel the research engine that discovers and develops new drugs on the profits that you make in countries outside the u.s. " joseph e . smith , a vice_president of the warner lambert company , said the g.a.o . had overstated the differences in american and british prices because it did not take into account the discounts available here . the accounting agency said there were generic equivalents for 21 of the 77 drugs in its study . even if american consumers purchased generic_drugs whenever available and british consumers purchased brand name products in all cases , the study said , the market basket of 77 drugs would still cost 50 percent more in the united_states than in britain . likewise , the auditors said , when they took account of the discounts available to hospitals and h.m.o . 's , they found that manufacturers' prices were , on the average , still 51 percent higher here than in britain .

the horror of germ_weapons is easier to describe , experts say , than to translate into practice . how far iraq 's scientists have succeeded in building a practical arsenal of biological_weapons remains unclear despite five years of investigation by united_nations inspectors . biological_weapons have several properties that might be attractive to a country like iraq . if properly deployed , they could cause civilian casualties in numbers comparable to those of a nuclear_weapon . unlike nuclear_weapons , they are easy to manufacture and conceal . just a flask of culture can produce pounds of anthrax bacteria in four days . one gram about 0 . 04 ounces , or the weight of two paper clips contains enough doses to kill 10 million people . botulinum_toxin , another agent prepared by iraq , is one of the most poisonous substances known . the lethal dose is one billionth of a gram per kilogram , meaning that breathing in 70 billionths of a gram would kill a person weighing 70 kilograms or 154 pounds . the toxin is fatal within three days to 80 percent of those exposed . but to serve as weapons , both anthrax and botulinum_toxin need to be inhaled . that requires gently dispersing them as a mist at ground level , a difficult task in war conditions . a crop dusting plane , the ideal delivery vehicle , would have little chance of reaching its target , although iraq was experimenting with a mist dispensing helicopter . the agents can be dispersed from bombs or missile warheads , both of which iraq was working on . but the technical problems are severe , experts say . the heat of the dispersing explosion can easily cook the agents into inactivity or harmless clumps . anthrax , however , can be formed into hardy spores that can spread through the wind . united_nations inspectors have established that iraq 's biological_weapons were being developed in a_20 year program . the technical quality of the program is hard to gauge . some experts have said that iraq 's work on aflatoxin , a curious choice for a biological_weapon since it is not highly potent , suggests its scientists did not know what they were doing . others believe the iraqis may have discovered something new . ''some might say they made a mistake , '' said dr . graham s . pearson , former director general of the british chemical and biological defense establishment , adding that he did not share the view because of iraq 's known technical sophistication in other areas , such as making chemical_weapons with ingredients designed to mix in flight . ''i have n't seen a clear explanation as to why iraq was interested in aflatoxin , and that is why it is so important that the u.n . special commission does get to the bottom of the iraqi program , '' dr . pearson said . the likely effect of biological_agents remains to some extent a matter of conjecture because they have seldom been used in warfare . they depend primarily on wind for their dispersal , a factor that is hard to predict or control . and troops , once warned , can easily protect themselves with the right equipment . ''anthrax is a terror agent , not a battlefield agent , '' said dr . norton zinder , a biologist at rockefeller_university who has advised the army . ''the psychology of biological_weapons is more potent than the weapons are , '' he said . still , the terror has a hard basis in fact . a warning of what a real anthrax attack might do to a city emerged from an accident in 1979 at a soviet biological_warfare plant in a residential neighborhood of sverdlovsk , now known as ekaterinburg , some 870 miles east of moscow . dr . matthew s . meselson , a harvard biologist and expert on biological_weapons , was recently allowed to visit the city and to reconstruct the likely sequence of events . no more than a gram of anthrax spores , and maybe as little as a few thousandths of a gram , escaped from the plant , according to his calculations , yet that was enough to kill 96 people who were downwind of the release . the contaminated plume swept beyond the city and killed sheep that were grazing 30 miles away . in one location , a nearby ceramics factory , the spores that wafted in through doors and windows killed 2 percent of the people inside . someone who efficiently distributed anthrax at a low altitude over a city could kill millions , dr . pearson said . a recent report by the office of technology assessment described agents like anthrax as ''true weapons_of_mass_destruction with a potential for lethal mayhem that can exceed that of nuclear_weapons . '' anthrax is not contagious but possesses another feature that adds to its fearsomeness its spores , like radioactivity , can persist for decades . speculation that large areas could be rendered permanently uninhabitable by anthrax have been bolstered by reports of events on gruinard island , a speck of land off the north west_coast of scotland . during the world_war_ii , british scientists exploded anthrax bombs on the island to prove their feasibility for use against german cities . the island was kept off limits for decades since the spores persisted in the soil . in 1990 the ministry of defense decided to decontaminate the island and return it to its owners . a mixture of sea water and diluted formaldehyde was used to kill the spores . there is some debate as to how dangerous the island was during its period of quarantine . though anthrax was present , the spores were probably not particularly deadly unless disturbed from the soil . a territory might be contaminated with anthrax but still be habitable , although with some risk . ''while the actual hazard after an attack might be slight , there would be living spores on the surface and that would be of public concern , '' dr . pearson said . anthrax is the probably the best candidate for a biological_weapon , but it is always possible that iraq has found other agents . one of the deadliest , now that people are no longer vaccinated against it , is the smallpox virus , which causes devastating epidemics in unprotected populations . ''the agent that worries me the most in biological terms is smallpox , '' dr . zinder of rockefeller_university said , but the united_nations inspectors have found no evidence that it was among the agents of interest to iraq . the deal on iraq.

richard e . nolte is not looking for partners in his plumbing business , but , he says , he gets plenty of offers . there he is , bidding for a job in a manhattan or bronx apartment building when he is invited to drop in at the managing agent 's office for a chat . the purpose soon becomes clear , he says the agent wants a cut of the contract . " it happens so often i can almost smell and taste it , " said mr . nolte , a licensed plumber and president of effective plumbing , one of the largest plumbing repair contractors in manhattan and the bronx . a day after the manhattan district_attorney confirmed a spreading investigation into payoffs of managers of hundreds of cooperative and condominium apartment buildings , mr . nolte was among the few contractors to speak out openly against a system that he said " severely hampered " those who refused to give kickbacks for work . investigators for district_attorney robert m . morgenthau said that they had no detrimental information on mr . nolte and his company and that his account appeared consistent with those of other honest business executives victimized by the abuses . 'a lot of calls' contractors who have cooperated with the investigation have reported suffering a loss of business , said daniel j . castleman , chief of the district_attorney 's investigative division . but he said prosecutors would seek to assure that no one would be penalized for assisting the inquiry . " we 've started to get a lot of calls from people who believed they 're aggrieved parties , members of co op boards and some in industry , and we 're going to follow them up , " mr . castleman said . mr . morgenthau said on tuesday that the three year investigation had found managers working for building management companies routinely extorting millions of dollars annually from painters , plumbers and other contractors for work . ten guilty_pleas have already been taken , and a grand_jury is continuing to hear evidence against as many as 100 others , investigators said . little of which comes as a shock to the 48 year old mr . nolte with his 31 years in the business . effective plumbing , with an office of 35 employees in the bronx and a reach that takes in manhattan as well , serves about 1 , 100 residential buildings , mr . nolte said . although mr . nolte said there are about 30 , 000 residential buildings in manhattan alone , he said he has been unable to significantly expand his client list without paying for entree . 'ca n't even come close' forget commercial buildings entirely . " i do n't solicit commercial , " he said . " i ca n't even come close . " typically , he said , the system works like this " o . k. , i get three , four , five jobs . within two weeks i get a call . we 've been giving you a few jobs . you have a chance to come by and see me ? " then , he says , he is sitting in a managing agent 's office , with the agent starting , " well , i do n't know how to put this . " mr . nolte says he has learned to step in deftly . " we have no partners , " he interjects by way of a face saving response . that , he says , allows the managing agent to protest , no , no , no , that 's not what he meant . " and then , " mr . nolte said , " i never get another job from them . " unreturned calls despite often lower prices and a proven record of performance , he says he can not get many agents to return his calls , much less throw business his way . once , he said , an agent pressed him for a payoff in an elevator , suddenly realizing that the cab was monitored by a surveillance camera . the man fled without another word , mr . nolte said . he said he did not file complaints against the extorting agents nor , he said , would he name them now . " it 's not worth it , " he said . " a guy loses his job and maybe sues me . i ca n't substantiate it . i 'd rather walk away , the path of least resistance . "

lead whether americans visiting france dine in humble bistros or resplendent three star restaurants , they are often surprised to see so many of the french drinking a sparkling water named badoit . perrier is often nowhere to be seen . whether americans visiting france dine in humble bistros or resplendent three star restaurants , they are often surprised to see so many of the french drinking a sparkling water named badoit . perrier is often nowhere to be seen . badoit , a lightly carbonated water bottled by bsn , the french food giant , has caught the imagination of french diners in recent years . so much so , that bsn officials assert that badoit has edged past highly carbonated perrier to become the no . 1 sparkling water in france , although perrier officials insist that badoit still trails . ''in france , we do n't drink perrier with meals it is often drunk as an aperitif , '' said jean marc de preneuf , a marketing manager for bsn 's mineral_water group . ''but we drink badoit with meals . it helps digestion . '' one reason americans are so surprised by badoit 's popularity in france is that bsn , which also sells evian water , does not export badoit to the united_states . bsn officials executives say they have their hands full trying to meet french demand for badoit . if bsn were to start shipping badoit to the united_states , the u.s . food and drug administration might not look kindly at bsn 's suggestion that badoit helps digestion . french water companies also claim that mineral waters are good for rheumatism , migraines and other ills . in 1973 , bsn came close to taking then floudering badoit off the market . perrier dominated the sparkling water market , and the french much preferred non carbonated water with their meals . but bsn decided to give badoit one last push . it promoted badoit for dining , since it was only slightly carbonated , unlike the heavily carbonated perrier . since then , badoit has skyrocketed to about 220 million liters this year from 54 million liters in 1973 . a liter is slightly more than a quart . as for who is really no . 1 , industry officials say that badoit and perrier are both right . badoit is no . 1 in liters sold , while perrier , with its small green bottles , is no . 1 in bottles sold .

like most children his age , karl greenfield looks forward to recess , when he can go outdoors and play with his classmates . but after every snowstorm , instead of throwing snowballs or making angels , he sits indoors in an auditorium . ''you do n't get to do anything , '' complained karl , a bouncy second grader at public_school 87 , near 78th_street and amsterdam_avenue . that is because p.s . 87 has no playground of its own . instead , it uses a park maintained by the city 's parks department . and unlike the department of education , which clears its playgrounds after every snowstorm , the parks department only shovels a path for pedestrians . on thursday , after five inches of snow fell on the city , karl spent yet another recess indoors , leaving him and his mother angry . ''it 's a disgrace , '' said ina greenfield , a real_estate_broker , as she watched park employees sprinkle salt on the sidewalk at the end of the school day . ''he wo n't be focused tonight . he wo n't be able to sit down and read . already , he 's very unhappy with me . '' councilwoman gale a . brewer , who represents the upper west side , said a similar situation had arisen at p.s . 191 , on amsterdam_avenue and 61st_street . in fact , 268 school playgrounds are run by the parks department and few are plowed , except when school custodians take it upon themselves to do so . ''the parks department does not generally clear playgrounds we clear the perimeters , '' said william castro , the manhattan commissioner for the department . ''after the first day , if we are able to , we clear pathways in the major parks . '' he added , ''i 'm not sure it 's cost effective to go in and clear playgrounds and spent a lot of money and resources when it 's typically too cold for kids to play outdoors and when the snow typically melts in a day or two . '' karl 's mother would disagree . ''my son would be delighted to go outside and throw snowballs , '' she said . because the 900 students are kept indoors , she added , ''the kids are sicker , they learn less , they are impatient and unhappy and frustrated . '' ''people hire dog walkers when they are indoors all day , '' she said . ''children have the same muscular needs , or else they ca n't concentrate on learning . '' denny lee neighborhood report new york snow.

the new democratic leaders of congress on wednesday accused president_bush of ignoring strong american sentiment against the war in iraq and said they would build a bipartisan campaign against his proposed military expansion . democrats continued to debate how assertively to confront mr . bush over his plan . house democrats said that they would seek to attach_conditions to the spending request mr . bush will send to congress soon and that those conditions , if not met , could lead congress to limit or halt money for wider military operations . ''we are going to fund the troops that are there , '' said brendan daly , an aide to representative_nancy_pelosi of california , the house speaker . ''any escalation of troops we will subject to scrutiny . we will have hearings , and we will set benchmarks that the president must meet to obtain this money . '' any challenge to mr . bush over paying for the additional troops is probably months away . house democrats said their first step would be to vote on a nonbinding_resolution opposing mr . bush 's plan . the senate is planning to vote on a similar resolution as soon as next week . ''the president 's response to the challenge of iraq is to send more american_soldiers into the crossfire of a civil_war , '' said senator richard j . durbin of illinois , the no . 2 democrat in the senate , responding for his party immediately after mr . bush spoke . ''the escalation of this war is not the change the american people called for in the last election . '' the criticism from democrats resounded in near unison on wednesday evening , a rare moment for a party that for more than four years has struggled to present a unified policy on iraq . of more immediate concern to the administration was the bleak assessment from some republicans . senator norm_coleman , republican of minnesota , delivered a strong rebuke to the plan in a speech on the senate floor only hours before the presidential address . a recent trip to iraq , mr . coleman said , confirmed his fears that baghdad was besieged by irreparable sectarian_violence . ''i refuse to put more american lives on the line in baghdad without being assured that the iraqis themselves are willing to do what they need to do to end the violence of iraqi against iraqi , '' said mr . coleman , who is up for re election in 2008 . senator john_mccain , republican of arizona , one of the administration 's staunchest allies on iraq , disagreed . public opinion was not entirely against the war , mr . mccain said , adding , ''americans want to be told how we can prevail in iraq and how we can get out . '' even though mr . bush proposed a bipartisan congressional working group on iraq , he set the stage for a major confrontation with democrats , who won the majority last fall after the lingering war soured the climate for republicans . the clash begins thursday as democrats open a series of hearings to scrutinize the president 's approach on iraq . ''in the coming days and weeks , we should undertake respectful debate and deliberation over this new plan , '' said senator joseph i . lieberman of connecticut , a democrat turned independent singled out by mr . bush for recommending a new bipartisan group focusing on the war on terror . ''excessive partisan division and rancor at home only weakens our will to prevail in this war . '' senator hillary_rodham_clinton , democrat of new york , whose potential presidential ambitions are complicated by her previous support for the war , rejected the proposal to send more american_troops to iraq . mrs . clinton said more pressure should be placed on the iraqi government to begin solving its own crisis . ''the president simply has not gotten the message sent loudly and clearly by the american people , that we desperately need a new course , '' she said . ''the president has not offered a new direction , instead he will continue to take us down the wrong road , only faster . '' the white_house had asked republicans to reserve judgment on the iraq strategy or to at least stay silent but several republicans distanced themselves from the president wednesday . secretary of state condoleezza_rice and stephen j . hadley , the national_security adviser , made calls and held meetings in an effort to stem political damage . ''this is a dangerously wrongheaded strategy that will drive america deeper into an unwinnable swamp at a great cost , '' said senator chuck_hagel , republican of nebraska . ''it is wrong to place american_troops in the middle of iraq 's civil_war . '' senator gordon h . smith of oregon , who was among the first republicans to drop his support of the administration 's iraq policy , said he was opposed to a troop increase . ''this is the president 's hail mary pass , '' mr . smith said . ''now it is up to the iraqi_army to catch the ball . '' senator john w . warner , republican of virginia , said he had reservations about increasing troops , but declined to condemn the president 's plan until congress had had the opportunity to study it . ''blow the whistle , time out , until congress has done its homework and its analysis , '' mr . warner said . ''but each day that goes by , all of us are pained by the casualties . we cannot dither about . '' six hours before the president delivered his address , congressional leaders from both parties were called to the white_house for a briefing . democrats dismissed the meeting as a last minute procedural briefing , saying the president had failed to consult with them , as he promised to only a week ago . the struggle for iraq.

the proposed 800 million ballpark for the new york yankees received final regulatory approval this week , clearing the way for the club to start construction atop two parks across the street from the existing stadium . yankees officials said they hoped to begin building the 53 , 000 seat structure by the end of summer . construction will involve paving over large portions of macombs_dam_park and mullaly park and cutting down about 400 mature oak trees . the stadium is scheduled to open in 2009 . ''the yankees are delighted with the wide_ranging support they 've received , '' said howard j . rubenstein , a spokesman for the yankees . the project , which was approved by the city_council this spring , engendered intense opposition among many of the stadium 's south_bronx neighbors and from parks advocates , who protested the loss of the two popular parks and feared increased traffic and pollution problems in an area with high childhood asthma rates . while the stadium won the support of nearly all of the bronx 's elected officials , the plan was rejected by the local community board , which had only advisory power . several of the dissenting community board members were later replaced by the bronx borough_president , adolfo carri n jr . , who emerged as the new stadium 's most forceful advocate . opponents say they will probably file a lawsuit to halt construction , contending that portions of the 28 acre macombs_dam_park and 18 . 5 acre mullaly park had been unlawfully taken from the public . ''since day 1 , everything has been predicated on satisfying the desires of the yankees without a care for the community or the city 's taxpayers , '' said geoffrey m . croft , president of nyc park advocates . during the past week , the internal_revenue_service and the national_park_service gave their approval , respectively , to the stadium 's financing plan and to its construction on parkland . the park service approval was required because macombs_dam_park received about 420 , 000 in federal improvement funds in the early 1980 's . the park service concluded that the neighborhood 's loss of macombs_dam_park would be offset by new parkland the project would provide , including three ball fields at the current yankee_stadium , which will be partly torn down a park on the bronx_river and small parks placed atop stadium garages . the i.r.s . approved the stadium 's complex financing plan , in which the ballpark will be paid for by the yankees with 920 million in tax exempt , low interest city bonds and 25 million in taxable bonds . the yankees will repay the 40 year bonds with an annual payment in lieu of taxes . the bonds are to be offered in the next few weeks , said janel patterson , a spokeswoman for the city 's economic_development corporation . the yankees will pay rent on the city owned stadium , as well as payments in lieu of taxes , ms . patterson said . the city and state will pay for infrastructure improvements , including new parking_garages and possibly a metro_north commuter station in the area . the final community benefits agreement between the yankees and bronx elected officials calls for the club to establish the bronx community trust fund , in which the team will place 32 million over 40 years about 800 , 000 a year . the fund , which will be managed by an administrator who will be chosen by the team and by bronx elected officials , will be distributed to local community and nonprofit groups . the yankees will also donate 100 , 000 in equipment and promotional merchandise to community and school groups and give away 15 , 000 tickets to home games . the average value of each ticket will be 25 . the community benefits agreement also calls for 25 percent of stadium construction work to go to bronx businesses , with 50 percent of that total reserved for businesses owned by women or minorities . correction july 28 , 2006 , friday an article on saturday about plans for an 800 million ballpark for the new york yankees in the bronx referred incorrectly to the team 's financing arrangement with new york city . the yankees have agreed to repay 945 million in city bonds , but will not pay rent . the article also misstated plans for the current stadium . all of it will be torn down , not just parts of it .

here is a sampling of shows and exhibitions in new york city that are to close soon closing this weekend ''in the light of italy corot and early open air painting , '' brooklyn_museum , 200 eastern_parkway , at prospect_park . a show of 130 paintings by 48 artists who worked in the italian landscape between 1780 and 1840 . through sunday . hours today through sunday , 10 a.m . to 5 p.m . admission 4 2 for students 1 . 50 for the elderly . information ( 718 ) 638 5000 . lisette model , pace wildenstein macgill gallery , 32 east 57th_street , manhattan . works by the photographer . through tomorrow . hours 10 a.m . to 6 p.m . information ( 212 ) 421 3292 . ''pictorialism into modernism the clarence h . white school of photography , '' international_center_of_photography , 1130 fifth avenue , at 94th_street . with photographs by bourke white , gilpin and others . through sunday . hours today through sunday , 11 a.m . to 6 p.m . admission 4 2 . 50 for students and the elderly 1 for children . information ( 212 ) 860 1777 . ''eugene cuvelier photographer in the circle of corot , '' metropolitan_museum_of_art , fifth avenue at 82d street . a display of 45 prints . through sunday . hours today and tomorrow , 9 30 a.m . to 8 45 p.m. sunday , 9 30 a.m . to 5 15 p.m . suggested admission 8 4 for students and the elderly . information ( 212 ) 535 7710 . ''nine armenians , '' city center stage i , 131 west 55th_street , manhattan . leslie ayvazian 's drama about three generations of an armenian american family . directed by lynne meadow . through sunday . performances today at 8 p.m. tomorrow at 2 30 and 8 p.m. sunday at 2 30 and 7 p.m . tickets 45 . information ( 212 ) 581 1212 ''big apple circus , the medicine show , '' damrosch_park at lincoln_center . annual holiday one ring circus . through sunday . performances today at 6 30 p.m. tomorrow and sunday at 12 30 and 4 30 p.m . tickets 10 to 49 . information centercharge , ( 212 ) 721 6500 or ticketmaster , ( 212 ) 307 4100 . ''the rehearsal , '' roundabout , stage right , 1530 broadway , at 45th_street , manhattan . jean anouilh 's comedy about a group of sophisticates . through today , at 8 p.m . tickets 50 . information ( 212 ) 869 8400 . closing next weekend ''corot , '' metropolitan_museum_of_art , fifth avenue at 82d street . some 150 paintings dating from the early 1820 's to the 1870 's . through jan . 19 . hours sundays and tuesday through thursday , 9 30 a.m . to 5 15 p.m. fridays and saturdays , 9 30 a.m . to 8 45 p.m. closed monday . suggested admission 8 4 for students and the elderly . information ( 212 ) 535 7710 . ''latin_american photography a spiritual journey , '' brooklyn_museum , 200 eastern_parkway at prospect_park . works by 50 photographers from the museum 's collection . through jan . 19 . hours wednesday through sundays , 10 a.m . to 5 p.m. closed monday and tuesday . suggested admission 4 2 , students 1 . 50 , elderly free for members and children . information ( 718 ) 638 5000 . ''from court jews to the rothschilds art , patronage and power 1600 1800 , '' jewish museum , 1109 fifth avenue , at 92d street , manhattan . an examination of the cultural life of court jews in germanic states . through jan . 19 . hours sundays through thursday , 11 a.m . to 5 45 p.m. tuesday , 11 a.m . to 8 p.m. closed fridays and saturdays . admission 7 5 , students and elderly free for members and children and for everyone from 5 to 8 p.m . information ( 212 ) 423 3200 . ''no way to treat a lady , '' york theater , at st . peter 's church , citicorp , 54th_street and lexington_avenue , manhattan . a revival of the 1987 musical comedy thriller , based on the william goldman novel book , music and lyrics by douglas j . cohen directed by scott schwartz . through jan . 19 . performances thursday and fridays at 8 p.m. wednesday , saturdays and sundays at 2 30 and 8 p.m . tickets 30 and 35 . information ( 212 ) 935 5820 . ''cloud tectonics , '' playwrights horizons , 416 west 42d street , clinton . a modern fairy_tale by jose rivera , about a man who gives shelter to a hitchhiker who is searching for the father of her child directed by tina landau through jan . 19 . performances tuesday through friday at 8 p.m. saturday at 2 and 8 p.m. sunday at 2 and 7 p.m . tickets 35 . information ( 212 ) 279 4200 . ''the barber of seville , '' pearl theater , 80 st . mark 's place , east_village . the 18th_century comedy by beaumarchais directed by john rando . through jan . 18 . performances tuesday , thursday and fridays at 8 p.m. wednesday at 2 p.m. saturdays at 5 and 9 p.m. sundays at 2 p.m . tickets 24 and 30 . information ( 212 ) 598 9802 .

the menu featured peking duck and steamed dumplings , and the ballroom at the waldorf_astoria was festooned with red roses . the occasion was the opening of the new york offices of china 's largest insurer . not that the business , the people 's insurance_company of china , will be doing any selling here at least for now . instead , said tang yunxiang , its president , this will serve as a base for getting to know american insurers and regulators as china spreads its wings . on hand to welcome mr . tang was maurice r . greenberg , the chief executive of the american international group and an old friend of mr . tang . mr . greenberg 's company , which was founded in shanghai and returned there 10 years ago , had just been granted authorization to become the first foreign insurer in beijing . ''mr . tang will come to our opening , '' he told the crowd . joseph b . treaster.

lead for months , senior american officials have expressed confidence that president mikhail s . gorbachev would give way , if offered enough inducements , and agree to nato membership for a united germany , thus settling the most intractable issue facing moscow and washington . for months , senior american officials have expressed confidence that president mikhail s . gorbachev would give way , if offered enough inducements , and agree to nato membership for a united germany , thus settling the most intractable issue facing moscow and washington . but that confidence is fading fast . after three days of talks between president_bush and the soviet leader , which produced no real progress on the german question and the shape of post cold_war europe , top united_states policy_makers say they are beginning to believe that mr . gorbachev 's domestic political situation may be too delicate for him to make such a concession at any time soon , and that a protracted period of ambiguity may result . ''it may well be that the only way he can resolve his dilemma is to string the process out , let germany go ahead with political and economic reunification and stall on the military side , '' said an american official who played a significant role in the bush gorbachev summit conference here . ''west_germany would stay in nato and the soviet_troops would stay in east_germany . ''unfortunately , with so many security questions undecided , the situation might prove dangerous . '' fewer cheers at home in domestic political terms , mr . bush emerged from last week 's events with germany in doubt , lithuania unresolved and perhaps a few political problems on the trade agreement . but he will find that easy enough to live with , given his broad popularity . for mr . gorbachev , on the other hand , the acclaim he won in the streets of washington is unlikely to be repeated at home . his public_relations triumph here is not likely to ease his struggle for survival . at their news conference this morning , the two presidents made much of the relationship they have built , and a few white_house officials say they believe that personal chemistry will eventually dissolve the policy stalemate . mr . gorbachev promised not to ''put spokes in the wheels'' and said negotiations on germany would continue . the two pledged to meet on a regular basis . no doubt things have come ''a long , long way from the depths of the cold_war , '' as president_bush commented . but there are limits on personal diplomacy , even in an era of good feelings . between may 1972 and november 1974 four summit meetings took place , and after the fourth one , in siberia , gerald r . ford spoke hopefully of ''the spirit of vladivostok . '' but that proved inadequate to overcome fundamental disagreements the next summit conference did not come until 1979 and the ''constructive spirit'' of which mr . gorbachev spoke may not suffice in the weeks and months ahead . debate could be protracted a protracted debate about the rival visions of the new europe now seems highly likely , with a substantial possibility that progress in the negotiations in vienna on conventional forces will prove impossible to achieve and that the summit meeting of the 35 nation conference on security and cooperation in europe , now scheduled to take place late this year in paris , will be delayed . the united_states is ready to see that rather inchoate organization gain a more formal structure and a larger role . but the soviet_union , which belongs to no other important pan_european organization , wants to make it the centerpiece of the new europe , which is an entirely different matter . ''we are talking about building an all european security system and casting the issue of german_unification , its external aspects , within the context of that larger european security framework , '' vitaly churkin , a senior adviser to the soviet foreign ministry , said in an interview over the weekend . many western_european officials , as well as many here , see that idea as ''a trap that would give the soviets a veto like the one they have in the united_nations , in fact if not in law , '' as a ranking italian official argued recently . a british diplomat said that an organization with 35 members ''would quickly become a talking shop , incapable of making decisions . '' but there is some support , among politicians as well as policy experts , for the soviet idea , or some modified version of it . hans_dietrich_genscher , the west_german foreign_minister , has called for a pan_european ''conflict_resolution center , '' and president_francois_mitterrand of france supports a loose european confederation . u.s . role in europe leaders of the newly democratic east european_countries see the conference on security and cooperation as their only chance for a link to western_europe , so they too support the idea that something new , beyond nato and the moribund warsaw_pact , must be created to handle european security . in the current issue of world policy journal , malcolm chalmers of stanford_university argues for the creation of a european security organization , based on the conference on security and cooperation , with only a residual , transitional role for nato and the warsaw_pact . only such an organization , he says , would reassure the soviet_union , buttress german sovereignty and guarantee a united_states role in europe . nearly everything about the debate remains murky . one of the things the united_states has promised the soviet_union , to combat moscow 's fear that a unified germany would be joining an alliance hostile to soviet interests , is that nato will be transformed into a more political organization . revivifying nato giving it some reason for being other than defense against a threat from the east that is rapidly vanishing is a crucial matter for the united_states , mr . bush believes , because nato gives washington its sole institutional voice in europe . but every time in the past that nato has tried to agree on something other than the common defense against the soviet_union and the warsaw_pact , things have gone wrong whether the question was the suez invasion in the 1950 's or the overflight of united_states planes on the way to libya in the 1980 's . the perils of a deadlock the danger lurking down the road , in the american view , is not the application of a new soviet noose to berlin , or even a rancorous soviet decision to break off negotiations on the german question . the positive tenor of the conversations here seems to make those two eventualities unlikely , at least for as long as mr . gorbachev or another reformer remains in power . but a prolonged deadlock would carry its own sorts of perils . ''if moscow should refuse to leave germany , '' says michael mandelbaum of the council_on_foreign_relations , ''and its refusal became a major point of conflict with the west , this would , in effect , re create the political conflict on which the great east west rivalry of the postwar period was based . '' for moscow , the stakes are immense . in the century since 1890 , russia and germany , the two largest and strongest european_countries , have been almost constantly at odds . now the soviet_union , already economically weakened , faces the prospect of losing its military power in central_europe , with no compensating increase in political power , at the very moment when germany , already economically powerful , stands on the verge of reunification and greatly augmented political influence . ''it 's going to require tremendous finesse on our part to manage this kind of unsettled situation , '' said robert d . hormats , a former official of the state_department and the national_security_council . ''the analogy to germany , post world_war i , is very close . we ca n't afford to isolate them , leave them to brood about losing the cold_war , let their economy collapse . if we do , as a last resort , they 'll play on neutralist emotions in germany , which are already too widespread for comfort . '' summit talks end with warmth but fail to resolve key issues.

on the eve of his visit , president jiang_zemin called on the united_states to insure that ''the atmosphere'' of the summit meeting not be disrupted by protesters . at today 's welcoming_ceremony at the white_house , however , the biggest disruption was not the chant of protesters , who were out of earshot , but the roar of airplanes . planes taking off a few miles away at national airport in virginia competed with much of the ceremony , which included a 21 cannon salute , honor guards from all five armed services and a fife and drum corps in revolutionary era uniforms . the droning of the planes made it difficult at times to hear , including the remarks by both leaders . both men persevered , even mr . clinton , whose voice wheezed and cracked at times , forcing him to sip first from a glass of water , then from a cup of apple flavored tea . it was , mr . clinton explained , another of his periodic bouts with hoarseness . out of the shadows wang yeping is no hillary_clinton . more like bess truman , maybe . although her husband , president jiang_zemin , has become china 's paramount_leader , ms . wang has remained an obscure figure . mr . jiang 's weeklong_tour of the united_states may well turn out to be her most prominent , most public time . ms . wang , who , like most chinese women , does not take her husband 's name , has appeared beside mr . jiang at many of his public events so far , including this morning 's welcoming_ceremony at the white_house and tonight 's state_dinner . on tuesday , she joined him in williamsburg , va . , donning a colonial bonnet to match his tricorn hat . on thursday , she is scheduled to make an appearance on her own , attending a performance by a children 's group at the levine school of music here . it is not unheard of in china for wives of leaders to have public lives mao 's wife , jiang_qing , most notably . but ms . wang has no official role in the government or the communist_party . she rarely appears in public . the official news service 's biography says she graduated from the shanghai foreign languages institute and headed an electrical_engineering institute in shanghai , but it does not even mention her age . it is said in beijing that her health has faded in recent years , and she has appeared frail during this trip . at the welcoming_ceremony , as her husband and president_clinton stood on a podium nearby , she turned and gestured that she wanted to sit down . mrs . clinton , standing beside her , nodded . and together they sat for the rest of the ceremony . critical voices as expected , mr . jiang 's visit brought out demonstrators in force , despite the admonishment of mr . jiang and the sometimes comic lengths the chinese went to protect him from the sounds of protest . as mr . clinton welcomed mr . jiang to the white_house , exiled chinese dissidents sat on the sidewalk a block away , shackling themselves in mock stocks and calling for the release of political_prisoners . on the steps of the capitol , more than 500 pro taiwan demonstrators staged their own rally a while later , drawing several members of congress , each of whom was presented with ''i love taiwan'' t_shirt . ''the people of taiwan exist , '' senator robert g . torricelli , democrat of new jersey , declared somewhat mystically , ''therefore they are . '' the largest protest by far took place in lafayette park at lunchtime , just as mr . clinton and mr . jiang wrapped up their meeting . organized by the international campaign for tibet , the robert f . kennedy_center for human_rights , human_rights_in_china and amnesty international , it drew thousands . there was a remarkably diverse array from environmentalists to human_rights advocates , tibetans to four members of the east turkistan national freedom center , a group that advocates independence for the northwestern area the chinese know as xinjiang . john j . sweeney , the president of the a.f.l . c . i.o. , delivered a rousing speech , accusing the chinese of repressing workers' rights and peddling products in the united_states made by prison laborers . ''let others celebrate the chinese president , '' he declared to a small , surging sea of banners , posters and flags . ''we 're here today to stand with the chinese people . '' gary l . bauer , the president of the family_research_council , a conservative group , called attention to the odd alliance that has coalesced against china . ''i would rather be in this one , '' he said , ''than in the other one that brings together american capitalists and chinese_communists , one that brings together the man from hope , ark . , with the butcher of beijing . '' the guest list 's story there may be no more apt a metaphor for this week 's meetings between president_clinton and president jiang_zemin than the guest list for tonight 's state_dinner . there , sandwiched between the names of washington 's most prominent current and former political leaders , are the chairmen , presidents and chief executives of the nation 's most prominent businesses john f . smith of general_motors , john f . welch of general_electric , louis v . gerstner of ibm , philip m . condit of boeing , and on and on . while the clinton_administration has devoted countless hours to a range of issues with china 's paramount_leader from weapons proliferation to human_rights the potential of china 's emerging_market has loomed large . by the end of his visit , mr . jiang will have spent as much time with business executives as with government officials . ''the future opportunities in china are very significant for all of us , '' gerald m . levin , the chairman and chief executive of time warner , said as he arrived for the dinner . a hug for ickes invitations to the dinner , always coveted , were even more dear than usual . the white_house had to pare down a list of more than 400 because mr . jiang 's delegation insisted on holding the dinner inside the white_house , rather than in a roomier tent on the south lawn . there were , no doubt , a few crushed egos . one who made the short list , though , was harold m . ickes , mr . clinton 's former deputy chief of staff , who was forced out after last year 's election and then found himself swept into the controversies over the president 's fundraising . and when he arrived before mr . clinton in the receiving line tonight , the president gave him a bear hug . a dinner for dissenters if the state_dinner was a homage to corporate america , the ' 'stateless dinner'' held by the international campaign for tibet in the hotel washington offered the antithesis . a large crowd of those opposed to china 's repression of tibet 's political and religious heritage from richard_gere to senator daniel_patrick_moynihan gathered only two blocks from the white_house . ''people in this room , '' the campaign 's president , lodi gyari , said , ' 'should have room in that other dinner too . '' summit in washington reporter's notebook.

the treasury 's schedule of financing this week included today 's regular weekly auction of new three and six month bills and an auction of four week bills tomorrow . at the close of the new york cash market on friday , the rate on the outstanding three month bill was at 4 . 91 percent . the rate on the six month issue was 5 . 01 percent , and the rate on the four week issue was 4 . 71 percent . the following tax exempt fixed_income issues are scheduled for pricing this week tomorrow ohio . 250 million of general obligation bonds . competitive . wednesday san_francisco . 152 . 5 million of debt securities . competitive . north_carolina . 200 million of debt securities . competitive . omaha metro utility district , 96 million of revenue bonds . competitive . ogden city , utah , school_district , 60 million of general obligation bonds . competitive . one day during the week miami_dade_county , fla . , 86 . 8 of general obligation bonds . a . g . edwards . miami_dade_county , fla . , school_district , 79 . 6 of general obligation bonds . a . g . edwards .

iraqi opposition figures are circulating a detailed plan for transforming iraq from a dictatorship into an essentially secular democracy in two to three years if president saddam_hussein is removed from office . the 98 page report , ''the transition to democracy in iraq , '' was hammered out after fierce debate among representatives of a state_department supported group that consists of iraqi intellectuals in exile , representatives of human_rights groups , other private organizations and representatives of leading iraqi opposition groups . the document suggests that the groups have been able to compromise over divisive issues like the role of religion and ethnicity in a post hussein iraq . it endorses a set of principles that its authors say enjoys broad support among opposition groups , like democracy , federalism , respect for the rule of law and human_rights and a ''road map'' for the transition to a government that would begin organizing in exile . today , a state_department official welcomed what he characterized as the latest ' 'draft'' of the document and endorsed several of its major principles . he cautioned that the administration did not favor the ''road map'' that the paper recommended and that it opposed any effort to establish a government in exile that might ' 'disenfranchise'' prospective opponents of mr . hussein 's government in iraq . the major authors discussed the paper today at a meeting with condoleezza_rice , the national_security adviser , and other white_house officials . people at the meeting said ms . rice had invited the group back to discuss their ideas further next week . she had previously expressed reservations about establishing a transition government that might rule out internal alternatives to the fractious opposition that has emerged in exile , officials said . the document being circulated is widely expected to be considered next month at a major conference of opposition groups . deep ideological disputes and mistrust of one another forced opposition leaders to postpone such a meeting , which the bush_administration had intended to be a showcase for an emerging unity among the opponents of president hussein . it had originally been scheduled for nov . 22 in brussels . but opposition leaders said they now expected it to be held on dec . 10 in london . the paper maps out a process that would culminate in no more than three years in elections in which iraqis would vote on a constitution and the structure of a new government , almost certainly without the participation of the current governing party , the baath_party . the report says a ''transitional'' government would be responsible for guaranteeing basic human and political rights . torture would be forbidden , as would arbitrary arrest , detention and exile . all citizens , irrespective of sex , race , religion or ethnicity , would be considered equal . some issues remain so divisive that the authors chose to offer competing alternative visions or to defer them . although they recommends that iraq undergo ' 'de baathization'' similar to the ' 'de nazification'' of germany after world_war_ii , the paper also notes that some opposition groups strongly oppose outlawing the baath_party . similarly , although the authors clearly favor separation of religion and state , they defer the issue of what relationship should exist between the new state and religion , specifically between the government and islam , to which the overwhelming majority of iraqis subscribe . the major sticking point with the bush_administration is the two stage process that the paper endorses . ''we want an identifiable leadership to come out of this process , a leadership that can become the future leadership of iraq , '' said kanan_makiya , a prominent dissident who was a major author of the paper . toward that end , the document assigns a pivotal role in establishing the ''transitional authority'' to the opposition groups in exile and to the kurds of northern iraq . the kurds are under the protection of an american imposed no flight zone . the core of the ''transitional authority , '' the paper states , should be drawn from those four million kurds and the three million iraqis in exile . the assertion of a lead role for the exiles has been resisted not only by the state_department , but also by some smaller iraqi groups that fear being marginalized by ahmad_chalabi , founder of the iraqi_national_congress , an umbrella group in london . mr . chalabi has strong support in the pentagon and vice_president dick_cheney 's office . fawzi al shemari , a leader of the washington based iraqi officers movement , said he opposed some of the paper 's ''radical changes'' in how iraq would be governed , as well as designating leaders before an invasion . ''democracy in and of itself is not our goal , '' mr . shemari said . ''it 's a way to rebuild iraq , achieve peace and prosperity and protect civilians . '' mr . makiya called the resistance to the endorsement of a transitional government a ''test between iraq 's old politics , the traditional sects and political_parties , versus new politics , the exiles and others who have pressed for democracy and reform now , not later . '' the report urges any transition government to approve an amnesty law to assure ' 'stability , '' and it insists that those ''closely connected to the regime must be held accountable for crimes the regime has committed over the years . '' the paper bluntly adds that although such a reckoning has widespread support , perhaps through the creation of a ''truth and reconciliation commission , '' intense disagreement exists in the opposition on ''where to draw the line of who is to be held accountable . '' the document reiterates emphatically that any transitional government should engage neither in vigilantism nor in ''collective punishment'' of baath_party members , many of whom joined the party simply for professional or personal advancement . threats and responses the blueprint.

the fiercest and oldest rivalry in professional sports has taken hold in the far east . the yankees and the red_sox have each spent an enormous sum of money to negotiate with a pitcher from japan , but the twist is that the yankees , the team with the highest payroll in baseball , may have received the consolation prize . the yankees answered the red_sox' overwhelming bid for daisuke_matsuzaka by submitting the highest proposal to talk exclusively with kei_igawa , a left hander from the hanshin_tigers who projects as a middle of the rotation starter . major_league_baseball announced last night that hanshin had accepted the yankees' bid of 26 million more than half of what the red_sox spent to speak with matsuzaka and the yankees now have until midnight on dec . 28 to negotiate a contract with igawa . if the sides do not agree , the yankees will receive their money back . ''i am very pleased to have the rights to sign him for the yankees , '' george_steinbrenner , the yankees' principal owner , said in a statement . the yankees bid 33 million for matsuzaka 's rights , but , like many other teams , including the mets , they were foiled by the red_sox . the mets bid 39 million for matsuzaka and 15 million for igawa , and after coming away empty handed twice , they appear poised to concentrate on signing the free_agent pitcher barry zito . the yankees and the red_sox , two of baseball 's most well heeled franchises , paid 77 million merely for the right to talk with the pitchers , with boston in line to spend upwards of 100 million for matsuzaka . if igawa is successful , the yankees may have gotten somewhat of a bargain . ''we have been following kei_igawa 's very successful and accomplished career in japan , and we are excited about the opportunity to begin the negotiating process with him , '' yankees general_manager brian_cashman said in a statement . ''i 'm confident that if we are successful in bringing mr . igawa to the bronx , the yankees' organization , along with our passionate and diverse fan base , can provide the same type of commitment and excitement that he has become so accustomed to . '' the range of bids speaks to the difference of opinion on his value . the yankees have scouted the 27 year old igawa for the past three seasons and are hoping that they are getting someone as good as or close to matsuzaka , the ace pitcher from the seibu lions . just as likely , they would be happy if he stabilized the back of their rotation . ''he 's nowhere near matsuzaka , '' said a pacific_rim scout who was granted anonymity because he was not authorized to share scouting reports . ''he 's down the list a ways as far as his stuff and his ability to make pitches . but he 's left handed , and he could fit in on a club that needs someone in the fourth or fifth slot . '' unlike matsuzaka , who dazzled on the way to his most valuable player selection at the world_baseball_classic this year , igawa is a finesse pitcher without much experience in international competition . he grazes 90 miles an hour with his fastball , and he relies on a slurve and his best pitch , a changeup . he went 14 9 with a 2 . 97 earned_run_average in 29 starts for hanshin this season and struck out 194 in recording his third strikeout title in five seasons . over all , he is 86 60 with a 3 . 15 e.r.a . during his eight year career . his best year came in 2003 , when he went 20 5 and was selected as the central_league m.v.p . igawa faced the major_league barnstorming team in japan earlier this month with mixed results . he allowed two runs over six innings , but he walked six and allowed a home_run to the mets' david wright . after the game , when asked whether he thought igawa could pitch in the majors , wright told reporters ''i just do n't know . i 'd have to see him when he 's in midseason form . you send a guy up there after a month layoff , and you ca n't get a handle on a guy . but as far as a lefty goes , he has a sneaky fastball . i thought he threw , for a lefty , an average to above average fastball , an above average changeup , and his slider was a little flat . but with a month off , who knows ? could be any number of reasons . '' like the red_sox , the yankees knew they had to address their pitching issues , and in igawa they see a no . 3 or no . 4 starter who can complement chien ming wang and mike_mussina . after that , randy_johnson is coming off back surgery and may not be ready for the start of the season , and carl pavano is a_10 million a season enigma . waiting in the minors is the highly_regarded prospect phil hughes , but he has not pitched above class_aa and the yankees do not want to rush him . although teams have agreed to terms with second tier pitchers like adam eaton and randy wolf in recent days , a few remain available , and winning the rights to igawa will not prevent the yankees from pursuing another pitcher like gil_meche or ted lilly , whose agent , larry o'brien , recently said lilly would welcome a return to the bronx . the igawa announcement comes with the red_sox' president , larry_lucchino , in japan talking with the seibu lions , matsuzaka 's former team , about a working agreement and discussing the organization 's offer to matsuzaka and his agent , scott_boras . as the red_sox plunge deeper into what is expected to be very difficult negotiations with the demanding boras , the yankees figure to have a much easier path to signing igawa . they have worked with igawa 's representative , arn tellem , on two previous contracts for another japanese player in hideki_matsui , and in deals for mussina and jason_giambi . igawa is expected to command a four year contract worth 4 million to 4 . 5 million a season . the yankees and red_sox renew their rivalry april 20 at fenway_park . the world will be watching . baseball.

riding a wave of mergers and alliances , japan drew a record amount of investment from foreign companies in the year ended march 31 . the finance ministry said foreigners had poured nearly 11 billion into japan , up 74 percent from the previous high two years ago . sheryl wudunn ( nyt ) world business briefing asia.

one way to calculate the lamentable state of rural education in china is to tally up the number of girls who are not in class . liang bangfen , who at 16 has only finished the second grade , is not among the 100 students who leave youyan , or greasy smoke village , on foot each morning for the 40 minute walk over a desolate landscape to the dongwang school in guizhou province in southwestern china . this village of 405 sends only 4 girls to school each day . " so many families think the girls are not important , " said liang jinfu , 53 , the village chief , who is a study in patched clothing and peasant hospitality as he guided a visitor up and down the familiar slopes where he watches over 93 families whose lives are tethered , precariously it seems , to a mountain that yields so little sustenance . " in the whole village , only a few girls are in school , " mr . liang added , a little embarrassed , but truthful . though china is making significant strides in improving rural education , the plight of girls remains a tragic reality among the country 's 900 million peasants . " girls at 5 to 6 years old begin a life of farm work , " said hu qikun , a teacher at the school , where the educational materials are tattered and the teachers must rely on the charity of local farmers for their food . china under communism has done more to protect the health of women and girls and to bring women into the work force than most developing_countries . but in rural china , especially among the country 's 55 minorities , girls continue to fall behind in education . education only reflects the larger problem facing women in china . the traditional_chinese preference for sons , and for investing more resources in them as heirs , has also contributed to the cultural denigration of girls , to illiteracy and to the inescapable impoverishment of women as they grow older . underscoring the disparity , a 1992 population study asserted that while only 6 percent of 15 to 19 year old chinese were illiterate by the late 1980 's , 70 percent of them were women . many experts say the figures are no better today . earlier this year , the state education commission estimated that china has nearly 10 million school dropouts , most of them girls , and that number may grow as china 's population swells by another 100 million by the end of the decade . because public schools charge fees , private charities like project hope have raised millions of dollars to help pay tuition for girls in poor rural areas . but millions more are beyond the current reach of government and private assistance . the 100 or so schoolage girls who could be going to class from this village instead tend the water buffaloes that forage lazily on the hardscrabble mountainsides all day , or they feed the pigs and cows that are among a family 's most valued possessions . most days , liang bangfen can be found just outside the village on one of the narrow paths that have been sliced into the limestone terrain . she wears a large , hand woven basket with straps . she has been filling it with grass for the family pig . " we do n't have any money , " she said . " that 's why i could only finish the second grade . " across a valley of rocky terraces , all hand hewn by an unimaginable expenditure of labor , are other villages whose inhabitants exhaust their energy tilling the thin layer of red clay soil that grudgingly yields a measure of corn , rice and wheat each year . at the nearby village of yang shang , 10 year old liang yuqin also does not join the boys who leave for school each day . " i really want to go and i might go next semester if my family has the money , " she said hopefully . teacher hu , as he is called in a sign of respect , even offered to pay the girl 's tuition , 6 . 10 a semester . but the father demurred because he is planning to move his family to neighboring guangxi province to rent a fertile piece of land and raise livestock . but as migrants trying to make a better life , the liangs cannot easily put their daughter in the local schools in guangxi , so liang yuqin will help raise chickens and pigs . her mother has already gone ahead . and on one of her trips from guangxi , she carried the pretty violet jacket that liang yuqin has worn every day since . " maybe when they return , we can get her into the school , " teacher hu said of the girl . for him and the other teachers at the dongwang school , daily life has its own hardships . each day , as a rooster crows the dawn , the first teacher who wakes turns on the loudspeaker and plays a love ballad by one of those blow dried hong_kong crooners . soon the others wake and stumble onto the hard courtyard , shaking off the cold and scooping water from the well with plastic pails to splash onto their faces . a new day here usually starts with hunger because at least a quarter of the teaching staff , all new arrivals , has not been paid since the semester began in september and , as a result , they have no money to buy food . " last week i passed through my hometown and i was too embarrassed to go to my parents home , " said li xiangmin , 19 , a graduate of guiding teacher 's training school . " we are very angry because we looked to our parents to support us through school and now that we have graduated and have jobs , they still have to support us . " this is the front line of rural education in china , and the central government 's commitment to eradicate illiteracy and give equal educational opportunities to all seems a little tenuous in the rocky hinterland of southern guizhou province . in november , all of the new teachers sent here to educate the impoverished masses went on strike for a week . " november was the first time we got mad , " mr . li said . " we realized that even as teachers , we cannot feed ourselves and we are hungry all the time , so what is the point of teaching ? " the strike did not last because the students all brought food donations from their homes a little rice here , some vegetables there . " when we saw the students were so upset and concerned they were crying , " said xia wencai , 20 , " we felt so guilty because we might ruin them if we do n't teach them . " at night , the teachers arm themselves against the cold by sleeping under thick quilts . in the unheated dormitory , the weather intrudes through broken windows . the rats enter the same way , uncontested by natural predators , like cats and snakes , which have become extremely scarce . besides , cats are an unaffordable luxury and the snakes are an edible delicacy . " education is the key to developing the country , but those words seem empty to us , " said zhu xingsheng , 19 . " you ca n't keep talented people here under these conditions . " if conditions here do n't improve , the backward areas of china will continue to be backward and the more advanced areas will continue to move forward , and the discrepancies in society will only get larger . "

in the belief that a free_market in russia requires a convertible currency as quickly as possible , president boris n . yeltsin 's financial advisers are pushing to achieve this goal in the next few weeks over the objections of the russian central_bank and the doubts of the bush_administration . the battle over convertible currency , which would greatly increase the country 's attractiveness to foreign investors , is the most visible aspect of a larger struggle between those who want the yeltsin government to end numerous subsidies and payments to the people as quickly as possible , and those who favor a slower phasing out of government supports . the latter group is more concerned with maintaining a social_safety_net than with shoring up the economy . mr . yeltsin 's finance group , headed by deputy finance minister yegor t . gaidar , says the president has decreed the free convertibility of the ruble , adding that russians can now buy dollars at exchange windows in bank and hotel lobbies around the city . " you can go to 80 exchange windows and buy hard_currency freely , " said pyotr o . aven , a gaidar assistant and chairman of the russian_federation 's committee on foreign economic relations . " and if you ca n't , that is because the banks play their games . they can hoard dollars and we have no control . " but in visits to three such exchange windows at branches of menatep , a recently established private_bank , clerks would only sell dollars to russians with passports and visas for travel abroad , and then only up to 200 . what is more , the decree cited by mr . aven , signed by the president in november , says in one paragraph that limitations are lifted on the purchase of foreign currency , and in the next paragraph that the central_bank should set up " a limited range of exchange_rates for the purchase and sale of hard_currency . " mikhail b . brudno , a menatep director in charge of foreign exchange , said that the paragraphs seem contradictory and that menatep prefers to wait " until the central_bank offers an explanation of what it plans to do . " his caution might be justified . the central_bank chairman has opposed free convertibility , preferring a fixed_exchange_rate that would overvalue the ruble by offering fewer than 100 to the dollar . ( that makes a ruble worth more than a cent . ) nevertheless , the ruble appears to be moving toward convertibility . an informal weekly auction has sprung up , conducted by the private banks that have been organized in russia in the last 18 months . the auction matches exporters who have earned hard_currency with importers who need it . the current auction rate is 150 rubles to the dollar , which makes a ruble worth two thirds of a cent . mr . gaidar and his team argue that the auction is too restrictive . with a freely_convertible currency , they say , two things would happen first , russian companies would export more goods , confident that the dollars they earned could be exchanged for more rubles than exporters can now acquire legally . and second , people with dollars would demand imports , helping to fill shops and build up commerce . the gaidar team 's mentor and chief adviser in this approach is jeffrey d . sachs , a harvard economist who advocated a similar crash program for poland . " the convertible ruble engages exports right away by producing a realistic , market based exchange_rate , " professor sachs said in an interview here last week , adding that russia must revive its nearly nonexistent exports to rebuild dollar reserves and , indeed , to survive . which comes first ? the clash comes over whether the ruble should be made convertible before other steps are taken . some analysts , including officials in the bush_administration , say currency convertibility should be delayed until the yeltsin government reduces the budget_deficit and raises oil prices . higher prices for gasoline and heating_oil would reduce consumption , making more oil available for sale abroad . mr . gaidar also favors these measures , but is not insisting that they be achieved before the ruble is freely_convertible . in addition , his group wants the russian central_bank to reduce the number of rubles in circulation an anti inflation measure the bank has so far resisted . all three steps fewer rubles , a balanced_budget and higher oil prices would strengthen the ruble . " exporters will bring back dollars and exchange them for rubles only if they have confidence that the ruble will hold its value , " said one bush_administration official .

japanese stock prices fell today , dragged down by wednesday 's decline on wall_street . the nikkei index of 225 stocks lost 302 . 20 points , or 1.2 percent , to close at 25 , 520 . 27 . volume was relatively light , with 260 million shares traded . on wednesday , the nikkei lost 207 . 61 points .

steinway musical properties inc . , the parent company of the venerable new york piano maker , and the kawai musical instrument manufacturing company of japan announced yesterday that kawai would manufacture a steinway designed piano , for sale by steinway dealers . bruce stevens , president of steinway , said the venture would assure " that steinway dealers throughout the world will have available an excellent quality mid priced piano for sale to those customers who are not yet ready to acquire a steinway . " steinways range in price from just under 10 , 000 to more than 60 , 000 , with the average at about 30 , 000 , far above the price of most competitors . steinway is the most prestigious name among companies that mass produce pianos its output makes up less than 2 percent of domestic piano production . the company says most of its buyers are trading up from a less expensive piano . hirotaka kawai , president of kawai , said in a statement that " steinway 's unparalleled reputation and production know how , combined with kawai 's sophisticated production technology , will do much to increase world markets for both companies . " kawai recently completed a plant to make grand pianos in ryuyo , japan , the annoucement said . the two companies did not say when production would begin , or how much the pianos would sell for . company news.

unbowed by the first political defeat of his life , state senator james e . mcgreevey said today that he would ' 'most probably'' run for governor again in four years . mr . mcgreevey said that he had no regrets about the way he ran his campaign and that he was happy to have come as close as he did to beating gov . christine_todd_whitman on tuesday . democratic officials said the low voter_turnout and mr . mcgreevey 's late start on the campaign trail both played a role in his defeat . mr . mcgreevey , who returned to his job as mayor of woodbridge at 9 30 this morning , said he considered his campaign a success because it had forced mrs . whitman to recognize the frustrations of middle_class families . in a news conference at the town hall , he said he would keep exhorting the governor to address the problems of high auto_insurance rates and property_taxes . ''in four years , it will be an opportunity to again seize the debate , '' said mr . mcgreevey , 40 , who has been waging campaigns for various elected offices since he was 32 . ''but in the intervening years , what is most important is that this governor and this legislature sincerely and significantly grapple with the issues that we have set before them . '' mr . mcgreevey , who gave up his seat in the state_senate to run for governor , said he did not want to run for congress or the united_states_senate because he preferred jobs that allowed him the final say . he said he fully intended to finish the remaining two years of his mayoral term , which he said will make him even more qualified to run for governor . ''i enjoy the executive branch of office , because it 's about getting the job done , '' he said . ''no disrespect for anybody , but a legislator is about endless debate . '' mr . mcgreevey , who lost by only about 26 , 000 votes , said he was not disappointed with the results in any particular region of the state . but a surprisingly light turnout in hudson_county , a democratic stronghold where only 45 percent of registered voters cast_ballots on tuesday , helped insure mrs . whitman 's victory . sixty percent of the county 's voters cast_ballots in 1993 . ''we had all the get out the vote crews on the streets , the buses , the walkers , '' said jeffrey jotz , a spokesman for the county_executive . ''i do n't know what to make of it . '' democratic officials had worried that mr . mcgreevey would lose in hoboken , a city of 33 , 000 , because the democratic mayor , anthony russo , endorsed mrs . whitman . mr . mcgreevey ended up winning in hoboken , but only by 640 votes , mr . jotz said . overall , mr . mcgreevey won 68 percent of the vote in hudson_county , he said . another disappointment was essex county , where democratic officials had predicted that mr . mcgreevey would do much better than gov . jim_florio did four years ago because of strong get out the vote efforts and union support . mr . mcgreevey won 61 percent of the vote in the county , only slightly more than mr . florio won in 1993 . mr . mcgreevey said he would spend the next few months catching up in woodbridge , where he was largely absent from his job during the campaign . he said he did not think losing his job as a state senator would hurt his chances for winning the democratic gubernatorial nomination in four years because it was not the sort of experience he needed . ''a state legislator cannot fill a pothole , cannot pave a street , cannot remove garbage , '' mr . mcgreevey said . ''new jersey looks for an executive with a track record . '' but he said that he would keep urging the governor to abandon her current plan to reduce auto_insurance rates and consider his instead . during his campaign , mr . mcgreevey said he would have ordered a_10 percent mandatory rollback of insurance rates , a plan that mrs . whitman has called unconstitutional . thomas p . giblin , the chairman of the democratic state committee , said mr . mcgreevey 's greatest weakness was that he had to be on the phone raising money until mid september , when he should have been on the campaign trail . ''he started out as a virtual unknown , and the financial thing bogged him down , '' he said . ''it prevented him from getting the public exposure he needed . '' but since mr . mcgreevey came so close to defeating a nationally known republican incumbent , new jersey 's voters will not forget him , mr . giblin said . ''you ca n't sell anybody short that loses the gubernatorial_election by that kind of margin , '' he said . ''but he has to find a platform to keep his name out there . '' the 1997 elections the democrat correction november 7 , 1997 , friday an article yesterday about james e . mcgreevey 's plans after losing the election for governor in new jersey misstated the percentage of potential hudson_county voters who turned out on tuesday and the percentage of their votes that went to him . turnout in the county was 51 percent , not 45 . sixty percent voted for mr . mcgreevey , not 68 percent .

only a small fraction of public_school students who were eligible last year for free tutoring or for transfers out of failing schools under federal law received those options , the department of education reported yesterday . education secretary margaret spellings threatened to withhold federal money from states that did not make students aware of their choices . the department , in a wide_ranging assessment of student achievement under president_bush 's signature education law , no child left behind , found that only 17 percent of eligible students signed up for free tutoring in the last school year . and of the four million students who could have transferred out of struggling schools , only 38 , 000 fewer than 1 percent did . that was a step up from the year before but far from what was envisioned under the law . ms . spellings pointed to the disappointing results yesterday as she toured a christian school in queens , where she lent support to gov . george e . pataki 's bid to lift a state imposed cap on the number of charter_schools , which are run privately but receive public funds . she also put her support behind mr . pataki 's proposal rejected by the legislature to provide a tax_credit for children who live in failing school_districts that could be used on tutoring , after school programs and tuition at parochial and other private schools . supporters of the tax_credit hope to revive the proposal . in a speech that made references to biblical themes , ms . spellings spoke of a ' 'day of reckoning'' for states and school_districts . she delivered her remarks in a church basement , framed by a backdrop that said , ''more choices for parents . '' ''more than half of school_districts did n't even tell parents that their children were eligible for these options until after the school year had already started , '' she said , referring to transfers . ''that delay makes it virtually impossible for students to transfer schools without disrupting their education . and that 's unacceptable . '' she continued ''we want to ensure that districts are living up to their responsibilities to notify parents about their options in a timely and easy to understand way . and there are a number of steps we can take to enforce these provisions , including withholding federal funds . '' she did not elaborate beyond saying she had instructed a high level education official to monitor the states . the no child left behind law requires consistently failing schools that serve mostly poor children to offer their students a choice if they want it a new school or tutoring from private companies or other groups , paid for with federal money . while ms . spellings highlighted a lack of parental notification about the options , critics of the programs , including parents and some academics , say another reason children do not transfer out of failing schools is that they do not have many options other than similarly failing schools . as for tutoring , some critics say , the quality of the programs varies so wildly that some parents feel the free classes which cost the government as much as 1 , 800 a child are not worth the time . and many programs have not penetrated the toughest neighborhoods . the report released yesterday said that half the states had not yet established any standards for evaluating the effectiveness of the private companies and other groups that provide tutoring under the law . ms . spellings praised no child left behind for ' 'shining a spotlight'' on what works and what does not , and said its focus on data driven decision making was a sea change in education department practice . ''and we 're sharing this information with parents , '' she said . ''i like to say , 'in god we trust , all others bring data . ' '' the document the department released yesterday included many stark facts about how the states were progressing under no child left behind , now four years old . for instance , the law set a goal of having all students performing at their grade levels by 2014 in subjects like reading and math . according to the report , ''based on trend data for 20 states , most would not meet the goal of 100 percent proficiency by 2013 14 unless the percentage of students achieving at the proficient level increased at a faster rate . '' the report also said that the achievement gap between disadvantaged students and other students might be narrowing , but that recent changes were small . and the report said that the high_school graduation rate ''has been fairly level'' since 1996 , with the mean graduation rate at 73 percent . ''the scary part is before no child left behind , we had no idea what we were getting , '' ms . spellings said . ''we could just see the system was n't working . now we know for the first time exactly what we are getting from our schools . ''

to the editor re ''under circumstances , no pomp as clinton signs a bill'' ( news article , oct . 25 ) you report that president_clinton signed a bill to provide treatment to breast_cancer patients without a signing ceremony , in part because it would have been awkward to invite representative rick a . lazio , the sponsor of the original house measure , who is hillary_rodham_clinton 's opponent in the new york senate race . while such behavior is normal for politics , the hypocrisy is staggering . should n't cancer patients be outside the boundaries of such a cheap political act ? this is another shameful reflection on bill and hillary_clinton and makes one wonder just how deep their empathy for cancer patients runs . joseph d . policano east_hampton , n.y. , oct . 25 , 2000.

he sits back in his wheelchair now and laughs about it , but as a child it was a burden more excruciating than his crippled body and deformed hands the gradual awareness that what his father felt for him was not love but embarrassment , that even those he lived with regarded him as a monster . " when my brothers and sisters had friends visiting our home , they would tell me to get lost , " the disabled man , osamu takahashi , recalled with disarming cheerfulness . " their friends never knew i existed . " mr . takahashi never went to any school and was hidden in the house from birth until the age of 26 . while the rest of his family ate together , he was served meals alone in his own room . his family allowed him out of the house only about once a year , and then mostly at night so the neighbors would not see . " the idea was that if you 're born deformed , you should be concealed as much as possible , " said mr . takahashi , who is now 49 and runs a center for the disabled . " and that view still survives in some households . " mr . takahashi 's experience was extreme , but the stigma was not . physical and mental_disabilities seem to arouse powerful feelings of shame across japan , and these emotions offer a disconcerting glimpse of the way in which society here sometimes works . japan lacks any law prohibiting discrimination against the handicapped , although advocates for the disabled are trying to change that . to be sure , japan is in many ways one of the most sensitive and civilized societies in the world . this is a country where school gym classes do not allow captains to pick teams , so that weak children will not feel bad about being picked last . tokyo is one of the few major cities in the world where a blind person can ask a taxi_driver the fare on the meter and count on not being cheated . yet even if individuals do not prey on the handicapped , society sometimes seems to . japanese society emphasizes conformity , and the essence of the japanese proverb about " the nail that sticks out gets hammered down " is drummed into children from the moment they set off for the first day of school sometimes in identical uniforms . the disabled are the nails that stick out , and they complain that they get hammered . " japanese consider someone different an outcast , a source of shame , " said naotaka kumeta , a 25 year old man who lives in the city of shizuoka and uses a wheelchair . " people think it shameful that i like to go out and about . they say , 'remember , you 're handicapped ! ' " mr . kumeta , a tall man with bushy eyebrows , was injured in 1990 , while studying at a college in oregon . he had gone to oregon as an exchange student in high_school and loved it , particularly the sports he wrestled the 152 pound and 160 pound weight classes and played defensive guard on the school football team . then one day he was driving his 1977 mustang " very fast , " mr . kumeta admitted sheepishly without a seatbelt , and he fell asleep at the wheel . mr . kumeta was in a coma for two months and woke up in a hospital back in japan to learn that brain_injuries had left his right side paralyzed and his left side with tremors . " i thought i wanted to die , " mr . kumeta recalled . an american christian missionary instilled a renewed desire to live , and mr . kumeta 's mission in life now is to win better treatment for the disabled . japan , like many countries , lags behind the united_states in building wheelchair ramps and elevators , although new buildings tend to have them . when mr . kumeta visited tokyo recently by train , he had to be met at tokyo station by a railway employee alerted in advance who led him through a labyrinth of underground passageways to make his connection to a commuter_train . " people say that japan is a very developed society , " mr . kumeta said quietly as he rode that train , his wheelchair parked near the door , as just about everyone in the train car gazed at him . " but for the handicapped it is very backward , decades behind the united_states . look at how people are staring at me it 's like that all the time . " the next stop was shinjuku , tokyo 's busiest subway station and one with no elevators . a railway employee and a couple of japanese businessmen helped carry mr . kumeta in his wheelchair down a long flight of steps . americans see japan as a harmonious society , mr . kumeta said a few minutes after that humiliating episode , but the harmony is achieved by excluding those who do not seem to fit . the exclusion , he said , usually means that the disabled are often discouraged from working , from marrying , from going to movie_theaters or restaurants . " when i 'm alone in a coffee shop , " mr . kumeta said , " people think , 'troublemaker ! ' " disabled people in many countries feel that they are treated inequitably , of course . but the vehemence with which the handicapped raise the issue in japan is striking , particularly because their complaints have less to do with architecture and more to do with discrimination and social exclusion . " i think i can overcome the physical barriers , " said chieko okada , a 22 year old university student who is in a wheelchair . " if there are no elevators , then i can use a staircase if someone will help me . but the psychological barriers are really difficult to overcome . " miss okada attended special schools for the disabled as she was growing up , and then when she applied to universities she was repeatedly told that she would not be allowed to take the entrance_examinations . finally miss okada was accepted at a university near her home , and now she has just graduated . but when she applied for jobs she was told that companies could not accept a disabled person , and she ended up taking a job with a center for the handicapped in tokyo . she looked for a small apartment near her new job site , and landlords repeatedly turned her down . " sometimes i want to cry out 'i 'm here ! i live here too ! ' " miss okada said . " even though it 's weaker than it used to be , there 's still this feeling that the disabled should be excluded . " still , it is not that anybody with a physical disability is denied opportunities . after all , a partly paralyzed politician named ichiro hatoyama rose to be prime_minister , from 1954 to 1956 . the real problem , the disabled say , is that they are normally excluded from the mainstream of society , in ways comparable to racial_segregation . " this is n't an open society that tries to embrace outsiders or different people , " said mr . takahashi , the director of the center for the disabled . " consciously or unconsciously , society tries not to open the door but rather to exclude outsiders , those who do n't seem to fit . " mr . takahashi and others say that when they visit the united_states they find attitudes a world apart from those of japan . in america , they say , they may be regarded as foreigners but at least are acknowledged as inhabitants of the same planet . " basically , america is a country of immigrants , " said akiko saito , an advertising copywriter who works as a volunteer helping the physically and mentally_disabled . " people in america are accustomed to different people , different ethnic backgrounds , different religions and so on . but japan is not like that , and in japan , the disabled have long been isolated . people just do not know how to make contact with them . "

ntl , a large british cable company , reached an agreement with its lending banks on a reorganization that would give bondholders control of the company , its chief executive , barclay knapp , left , said . the holders of about half the face value of ntl bonds agreed to the plan earlier this month . under the terms of the agreement , bondholders would swap 10 . 6 billion in debt for equity . some ntl subsidiaries incorporated in the united_states will file for bankruptcy_protection on may 6 , to better allow the company to reorganize its operations . separately , telewest communications , another british cable company , said it would eliminate 1 , 500 jobs , or 14 percent of its work force . telewest said it lost 166 million ( 243 million ) in the first quarter . analysts have long speculated that telewest may follow in ntl 's footsteps and restructure its debts . suzanne_kapner ( nyt )

after 11 years of extremely close contact , joseph digesu and his home_care aide , salvatore manno , do n't agree on much , from the quality of war movies to the morality of boxing . but both are convinced that they belong together in mr . digesu 's queens apartment , and both are scared that new york state is out to split them up . the affectionately querulous relationship between the two men is at the heart of a battle in new york over how to control costs in the nation 's most comprehensive and expensive home_care program a battle that reflects a national quandary , as americans live longer and grow more frail in an age of strained budgets , over how best to care for people who cannot care for themselves . after turning to home_care during the 70 's as a cheap , humane alternative to putting people in institutions , new york state is trying to retool what has been a national model for caring for the elderly and disabled because the bills have gotten too high . mr . manno is one of two attendants paid through the medicaid program to give help around the clock to mr . digesu , who is 63 years old and bound to a motorized wheelchair and a respirator by muscular dystrophy . their relationship is unusually close for one between a home_care worker and his client , and it is also extremely expensive . the city human_resources administration pays private contractors at least 9 . 80 per hour to provide home_care workers , which means paying for mr . digesu 's home attendants costs more than 85 , 000 a year , according to alka gupta , a spokeswoman for h.r.a . 'a total disaster for me' mr . manno , 44 , helps mr . digesu with all the activities that most take for granted , from getting out of bed to going to the bathroom to clearing his throat . but in between , with the meter running , the two men argue about boxing , along with just about everything else . ( " we always kiss and make up , " mr . manno said . " not really kiss , " mr . digesu caviled . ) at the instigation of gov . mario m . cuomo , the state is trying to cut that dead time out . the state_department of social_services has proposed changes to the system that could force mr . digesu and thousands of other new yorkers into nursing homes , adult homes or other long_term_care centers if that is cheaper and , if it is not , whittle the amount of care they receive at home . " it would be a total disaster for me , " mr . digesu said . but the cost of caring for people like him has soared . across new york last year , some 111 , 000 people received widely varying types of publicly financed home_care , from help lugging home the groceries to spoon feeding to kidney dialysis . the total cost was 2 . 1 billion for the fiscal year ending this fall , more than 250 percent what it was in 1986 , according to the department of social_services . far more aggressively than any other state , new york has tapped the medicaid program , which offers states matching_funds to provide health_insurance for the poor , to care for its elderly and disabled in their homes . the approach evolved after a series of nursing home scandals in the mid 1970 's and out of the belief that home_care was less expensive and far more pleasant for the client . in 1991 , about 63 cents of every medicaid dollar spent nationally on different types of home_care was spent in new york . " we all erred years ago in thinking if we just provide home_care , in all cases it 's going to be cheaper , " said michael j . dowling , governor cuomo 's director of health , education and human services . " while home_care is definitely in many cases a more appropriate and a cheaper substitute for institutional care , it is not always so . " trying to save money while new york remains committed to providing as much home_care as it can , he said , " our new mechanisms are an attempt to make sure that the care we provide is appropriate , that we do n't provide more care than is necessary , and we have to be aware of the budgetary implications of it . " in all , the state hopes to save up to 115 million a year from the proposed changes . new york may be tinkering with its approach as costs rise , but some experts say the program remains the model for how states will eventually care for their elderly . " in the future , the world will look more like new york , " said phyllis torda , director of health and social_policy for families u.s.a. , a nonprofit research group in washington that advocates reform of long_term_care . " this may be a short term backward step , but in the future we will have to spend more money on this kind of care . " the reason , she said , is that people are living longer the number of americans 85 and older increased by 38 percent during the 1980 's , according to census figures and their adult children cannot afford to stay home to take care of them . but surveys have shown that elderly people prefer to stay home rather than exchange familiar surroundings for institutional care . the state pays top dollar for home_care because it insists on certain training and certification and also contributes toward vacation time and retirement benefits for workers . individuals can hire home_care workers privately for far less . some 55 percent of all home_care is paid for privately . partly because people want to stay home , cost comparisons between home_care and nursing home_care are slippery . " there 's lots of studies , " ms . torda said , " and they 're very nonconclusive . " the average cost to medicaid of one year in a new york state nursing home is about 45 , 625 , although it would be far higher for someone who required as much care as mr . digesu . but one cannot necessarily compare that to the cost of providing home_care for a given patient , since , if deprived of home_care , many people will choose to stay home anyway . at the same time , for those who would otherwise have to enter nursing homes , being able to remain home is a benefit without a price_tag . " it 's hard to put a dollar value on that , but it 's very important to the people concerned , " said dr . adrian ostfeld , a professor of epidemiology and public_health at the yale_university medical_school . for mr . digesu , receiving care in his flushing apartment means he can stay near the conservative baptist church where he teaches a weekly bible class , and also near mr . manno , who in addition to being his home_care aide is his next door neighbor . mr . digesu tutors mr . manno 's children and occasionally slips them candy , and they run errands for him . 'most depressing place' mr . digesu also believes he gets better care from mr . manno than he would from strangers in an institution . he recalled being hospitalized after a stroke . " i thought it was the most depressing place in the world , " he said . the nurses , he said , did not seem much concerned about his comfort , setting up a catheter so that it spilled on him and refusing to manipulate his paralyzed legs . " if my legs are n't moved regularly , they start to ache like someone 's beating on me with a hammer , " he said . the department of social_services has proposed two major changes to the home_care program . under the first change , which social_services expects to carry out on jan . 1 , medicaid case workers will compare the cost of home_care to the cost of a nursing home or other long_term_care if the home_care cost is more than 90 percent of the other care , " you would have to show why home_care is still the more appropriate kind of care , " said terrance mcgrath , a spokesman for social_services . " there would be a number of patients who would be moved . " social_services has not projected how many people will have to move into nursing homes , adult homes or other types of long_term_care , like adult day care programs . the number will depend in part on how much space is available , mr . mcgrath said . the second proposed change is a new system devised by social_services to measure more precisely how much home_care a client needs . the system assigns an amount of time to each of a list of possible needs , such as toileting and feeding . if the assessment system emerges intact from litigation , medicaid caseworkers will break down the needs of a prospective client , match them with their designated time periods , and then add the periods up to determine how many hours per week to allot them . that proposal enraged advocates for the elderly . yisroel schulman , one of the lawyers who brought a suit on behalf of mr . digesu and others that has temporarily blocked the new system , described an elderly homebound woman in washington_heights who has a live in home_care attendant . under the new rules , he said , she would be eligible for a maximum of 10 . 5 hours a week of care for her chief problem , incontinence . " how are we going to determine when she 's going to be incontinent ? " he asked . " maybe on monday she 'll need five hours of care on tuesday , none . " she would not be able to meet the standards to qualify for an exception from the rules , he said . " if she does n't get the home_care , she has no choice whatsoever but to go into an institution , " he said . similarly , under the changes , mr . schulman said , mr . digesu would be entitled to five hours of care a day . mr . digesu worries that no one would be there if his respirator broke down or his throat became blocked . in the past , the amount of home_care a patient needed was based not on a formula but on recommendations by a doctor , a nurse and a social worker about the needs of each client . the suit challenging the new system charged that the state had not allowed an opportunity for public comment or legislative review , and that the new assessment method jeopardized the health and safety of medicaid recipients . a state supreme_court judge blocked the changes until the litigation is over . meanwhile , state officials are trying to set up a new assessment process that will meet the approval of the plaintiffs' lawyers , who said they agree that costs must be cut somehow . mr . mcgrath of social_services said the state 's lawyers would not comment on what that new process might be . " they are remaining adamant that we do n't comment on any of those programs because of the delicate nature of the negotiations , " he said . mr . schulman , executive director of the new york legal assistance group , estimated that if the new assessment system is introduced , 30 , 000 new yorkers will have to choose between staying home with insufficient care and entering institutions . but the state 's nursing homes are generally at 98 percent occupancy , with a total of 105 , 000 residents , according to brian ellsworth , vice_president of the new york association of homes and services for the aging , a trade group . " since the 70 's , new york state has not built nursing homes and instead has pushed home_care , " said ellen rosenzweig , co director of the institute of law and rights of older adults , part of hunter_college 's brookdale center on aging . " but if you 're no longer going to pay for home_care , where are they going to go ? "

as the bush_administration considers its military options for deposing saddam_hussein , senior administration and pentagon officials say they are exploring a new if risky approach take baghdad and one or two key command centers and weapons depots first , in hopes of cutting off the country 's leadership and causing a quick collapse of the government . the ''inside out'' approach , as some call this baghdad first option , would capitalize on the american military 's ability to strike over long distances , maneuvering forces to envelop a large target . those advocating that plan say it reflects a strong desire to find a strategy that would not require a full quarter million american_troops , yet hits hard enough to succeed . one important aim would be to disrupt iraq 's ability to order the use of weapons_of_mass_destruction . the advantages and risks of strikes aimed deep inside the country and radiating outward are now under active discussion , according to senior administration and defense_department officials . no formal plan has yet been presented to president_bush or the senior members of his national_security team , and several officials cautioned that a number of alternatives were still under consideration . the inside out ideas are essentially the reverse of the american strategy in the persian_gulf_war of 1991 , which dislodged mr . hussein 's occupying army from kuwait . the aim would be to kill or isolate mr . hussein and to pre_empt iraq 's use of weapons_of_mass_destruction , whether against an incoming force , front line allies or israel . those weapons are the wild_card in all the outlines of a military confrontation . officials say it may be possible to paralyze an iraqi command and control system that is highly centralized and authoritarian . under such a system , midlevel officers are not taught to improvise , should they be cut off from commanders . it is also possible that those midlevel officers , if they fear that mr . hussein has been killed , would not bother to fire weapons_of_mass_destruction . if that can be accomplished with a smaller invasion force than the 250 , 000 troops suggested in early drafts , the approach could appeal to skittish gulf allies whose bases would be required for a war . those states are quietly advocating the quickest and smallest military operation possible , to lessen anti american protests on their streets . in that sense , the war planning includes the political dimension of trying to tip reluctant allies into supporting , tacitly at least , the operation . something nearer the 250 , 000 figure might have to be deployed to the region anyway , to make sure that any forces that drop into baghdad do not become isolated or surrounded , bereft of a land line providing military support , food and ammunition . the defense_department deputy spokesman , bryan_whitman , said the pentagon would have no comment on potential military plans for iraq . but it is clear that the debate over whether and how to dislodge mr . hussein is gaining speed within the administration and on capitol_hill . ''there is a divergence of views on how can one best diminish the prospect that he uses weapons_of_mass_destruction , with any efficacy , '' said senator joseph r . biden_jr . , chairman of the senate foreign relations committee , who stressed that he had not been briefed on administration thinking . senator biden , who is preparing to hold hearings on iraq this week , said in an interview ''that is where the argument for an inside out operation gains credibility . there is a diminished possibility that he will use chemical or biological_weapons . '' in may , president_bush was presented with concepts that advocated a major invasion , but some senior officials are said to view the plan as unimaginative . in contrast , a key national_security aide , retired gen . wayne a . downing , had reportedly argued that mr . hussein could be toppled with minimal numbers of americans on the ground , provided they were backed up by huge airstrikes . however , senior officials concluded that a proxy battle would be insufficient to bring a change in power in iraq , and general downing left the white_house last month . ''it 's easy to rule out both ends of the spectrum , '' one senior defense_department official said . ''we are looking at the three or four options in between . '' no timetable has been set for military action , and if president_bush decides to go ahead , his aides say , he will have to make a public , convincing case about why mr . hussein poses an intolerable threat to the united_states and its allies . some members of congress , including conservative republicans , are beginning to urge mr . bush to explain his reasoning and goals before committing american_forces to topple a foreign government that has not attacked the united_states . ''the time will come to do all of that , '' a senior administration official said in an interview on friday . ''and no one is opposed to doing it . '' a plan to immobilize the iraqi leadership would draw from lessons learned on maneuver warfare in the invasion of panama , which dick_cheney and colin l . powell directed , and on the surprise inchon sea landing in korea in 1951 , according to officials who monitor the internal debate . ''to the degree that you can have strategic and , especially , tactical surprise in any military operation , that is important , '' said another senior defense_department official . president_bush has put mr . hussein on direct notice that regime_change is american policy . but just as the taliban and al_qaeda had little doubt that the united_states would respond to the attacks of sept . 11 , the timing and tactics achieved a great measure of surprise , military officials said . baghdad is ringed by mr . hussein 's most elite forces , and the city itself is filled with antiaircraft_batteries . while officials declined to discuss details of any new operation in detail , it would probably include intense air attacks followed by a combined airborne and ground assault on strategic targets . senior administration and pentagon officials said they expected that a military action against iraq would be mostly american run , with britain the only partner contributing significant forces . but cooperation from allies in the region particularly in the form of bases would be essential . persian_gulf governments have significant areas of agreement with mr . bush 's policy , and equally important areas of concern , according to senior officials , diplomats and military officers from the region . those nations have issued warnings against american military action , have called for dialogue with baghdad and they identified with iraq at the arab_league summit meeting last spring , yet gulf state officials said mr . hussein , while contained today , remained a threat . ''we do n't like saddam , '' said one senior gulf diplomat . ''we do n't believe he is a peaceful neighbor . '' to win support of those strategic allies , america has to ensure that next time , the military operation will take down mr . hussein once and for all , officials from the region say . ''any war against iraq has to be successful , '' said another senior gulf official . ''america has to nail down the objective of the war . '' officials from those nations are equally adamant that any military action should be the minimum necessary to bring about a change in rule . ''the worst scenario from our view would be a big war by air and land and with lots of bombs and civilian casualties , '' said a gulf official . in any case , the gulf nations first want the united_states to demonstrate some progress in the crisis between the palestinians and israelis before opening yet another front in the region , after afghanistan . in concentrating its attention on an air campaign and ground action , the military and administration officials have been weighing troop_deployments ranging from 70 , 000 to 250 , 000 . the new plan under discussion could conceivably be carried out at the lower range of that spectrum . pentagon officials warn that tracking mr . hussein with any certainty is difficult if not impossible , as shown by the global manhunt now under way for osama_bin_laden . likewise , despite a decade of intense scrutiny of iraq 's missile program and its efforts to field biological , chemical and nuclear_weapons , america 's knowledge of hidden labs , storage areas and mobile missile sites is still spotty . iraq is thought to possess a small number of scud missiles ''a handful . a couple of handfuls , maybe , '' according to a senior defense_department official . senior military officials express confidence that the united_states would do a much better job hunting mobile scuds next time than they did during the gulf_war , because of coverage from satellites and unmanned aerial vehicles . iraq has studied ways to counter stealth aircraft and improve its tracking and jamming abilities . but for the most part , ''they have mostly not used or tried to use air_defenses very effectively , '' said another senior pentagon official . correction august 3 , 2002 , saturday a front page article on monday about options under discussion within the bush_administration for toppling president saddam_hussein of iraq misstated the year of a korean_war action , the amphibious landing at inchon , that pentagon officials are using as a model for surprise maneuvers . it took place in 1950 , not 1951 .

lead he is still bothered by the mysteri ous back ailment that spoiled his 10th season in professional hockey and has threatened to foreshorten his career , but mike bossy plans to report to the islanders' training camp in september , anyway , and has no thought of abandoning the club in order to play for canada in the 1988 winter he is still bothered by the mysteri ous back ailment that spoiled his 10th season in professional hockey and has threatened to foreshorten his career , but mike bossy plans to report to the islanders' training camp in september , anyway , and has no thought of abandoning the club in order to play for canada in the 1988 winter_olympics . ''right now the olympics is the furthest thing from my mind , '' bossy said yesterday from his new summer home on an island off rosemere , quebec . reminded that just last spring he had expressed a desire to join team canada for the olympics , bossy indicated that the persistent back pain had put an end to such plans . ''after the season ended , i was under the impression that my back would get better , '' he said , ''but although i have n't put on a pair of skates since then , it really has n't improved . '' bossy 's comments countered rumors emanating from calgary , alberta , that his agent , pierre lacroix , had been negotiating with the islanders for a deal that would allow bossy time off to participate in the olympics next february in exchange for an extension of his contract . it expires after next season , which has been expected to be his last . ''even if the situation with my back did n't make it ridiculous , i would n't deal that way with bill torrey , '' he said . ''to tell the truth , i 'm not even thinking about the olympics . '' bossy , who has resisted the notion of exploratory surgery , said his main goal was to find a doctor who could diagnose his problem and provide enough relief for him to return to his old form . largely because of the pain , which first struck him at training camp last year , bossy , who had scored 50 or more goals a season for nine years in a row , could manage only 38 last season . even if he does n't find medical relief , the 30 year old bossy vowed to be in training camp in september . ''i 've played hockey for 25 years , so i know what pain is , '' he said . ''but knowing that in september i have to lace on my skates again and resume my 'bent over life , ' well , that 's frustrating . '' scouting.

an article yesterday about president_bush 's address to marines at camp_lejeune , n.c. , carried an erroneous byline in some copies . the writers were david e . sanger and eric schmitt , not william e . schmidt .

critics have complained that the bush_administration did not have a plan to deal with postwar iraq . but when it came to rebuilding the iraqi_police , the issue was not the absence of a plan but the time it took to put it into effect . as the iraq_war approached , richard mayer , a justice_department official , drew up options and plans to rebuild the iraqi_police . as the deputy director of an international training program at the department , he had considerable experience in training police_forces from haiti to the balkans . working with experts at the state_department , mr . mayer drew up a list of options , including an ambitious one to field 5 , 000 international_law enforcement officials who would help train the iraqi_police and , if need be , help carry out police duties themselves , as international police officers do in kosovo . jay_garner , the retired lieutenant_general who headed the first occupation authority in iraq , said in an interview that he supported the big option . the plan , however , was not well received at senior levels of the bush_administration . the white_house was reassured by an assessment from the c.i.a . that the iraqi_police had extensive professional training . nor did they want to see americans carrying out law enforcement duties in iraq . soon a new plan emerged . a small team of multinational assessors would go to iraq after saddam_hussein was forced out to see what assistance was required for the iraqi_police , courts and prison system . if it turned out help was needed , some 1 , 500 law enforcement experts ''civpol'' or civilian police in the argot of the bureaucracy would be sent . about 1 , 000 of them would be americans supplied by private contractors 500 would be from other countries . the civilian police would act as advisers and trainers but would not wear uniforms or have the responsibility to carry out arrests . the idea of carrying out an assessment before sending international police experts raised the risk that if the iraqi_police did not go back to work immediately after the war ended , there could be a breakdown in law and order before the united_states was in a position to help . robert perito , an expert on peacekeeping operations at the united_states institute for peace , a government financed research center , warned about this possibility in a feb . 28 presentation to the defense policy board , a panel that advises defense secretary donald h . rumsfeld . ''prior experience indicates that the regular iraq police will be unavailable , intimidated or unprepared to act in the chaotic postwar environment , '' mr . perito said , according to copy of his presentation . ''reliance on coalition military forces is not the answer . experience in the balkans demonstrated that regular soldiers are neither trained nor equipped to deal with mob violence or engage in law enforcement . '' it did not take long , however , before the americans discovered that they were behind the curve . most of the iraqi_police had fled their posts , nearly all of the police stations in baghdad were destroyed by looters , and many of the officers who had been lured back were poorly trained . robert gifford , an official from the state_department 's bureau for international narcotics and law enforcement affairs , served as the senior advisor to the iraq interior_ministry right after the invasion . when a 34 member assessment team showed up in may , mr . gifford sent all but five of them into the field immediately to try to shore up returning police station commanders , establish traffic control , help police leadership and start training at the police academy . the team 's may 30 report , titled ''iraqi_police an assessment of their present and recommendations for the future , '' noted the daunting problems . the iraqi_police were corrupt , unprofessional and untrustworthy , it said . the assessment recommended that 6 , 663 police advisers be sent , even more than mr . mayer of the justice_department proposed before the war . in washington , however , that proposal was regarded as unrealistic . the united_states simply did not have enough alliance partners to field such a large force . another problem was financing . an early state_department estimate was more than 1 billion a year to field 1 , 500 international civilian police officers , since the united_states would have to provide security , logistics and provisions for the entire force . yet by may , all that was available to spend was 25 million in seed_money provided by the state_department . that was enough to pay for only the assessment team and identify 150 american law enforcement experts , who were to be provided by a private contractor . they were identified and told to get ready to go to iraq but were not initially sent . in mid may , mr . gifford turned over his responsibilities to bernard e . kerik , the former new york city police commissioner who runs a consulting_firm with rudolph w . giuliani , the former new york mayor . in an aug . 17 memorandum to l . paul_bremer iii , the new head of the occupation authority , mr . kerik described a difficult situation . ''although some 32 , 000 police are back on duty country wide , a combination of retirements and continued c . p.a . vetting of baath_party loyalists will produce a personnel shortfall of 33 , 000 35 , 000 police , '' he wrote , referring to the coalition_provisional_authority and mr . hussein 's party . ''recruitment , screening , training and deployment of this many new police will take at least two years . '' mr . kerik submitted a plan calling for the deployment of up to 1 , 500 international_law enforcement advisers and exerts , the number that bush_administration officials had decided months before might be needed but which had not yet been sent . in his memo , he asked mr . bremer to talk to officials in washington to win support for the plan . mr . kerik said in an interview that securing money from the congress was the big problem . but maj . gen . paul eaton , who initially had responsibility for training the iraqi_army and later was given the responsibility for training the iraq police , suggested that management was an issue . he said the police training program he eventually inherited was a ' 'disjointed fiasco . '' looking back on the summer of 2003 , mr . perito said , the bush_administration , ' 'did not have a training mission set to go . '' ''instead , they decided to do an assessment , offer recommendations , have them adopted and then go for the money , '' he said . ''what that does , it loses you the first six months of the operation . the doctrine on peace operations is that the initial month or so is critical . '' the conflict in iraq law enforcement plans.

whatever happens now , for good or for ill , a new era in america 's relations with russia began today . seldom have two leaders so strikingly overcome the limited expectations about their first meeting as george w . bush and vladimir v . putin did today , putting their new friendship on a high plane of newfound trust and instructing their defense chiefs , both hard_liners , and their foreign secretaries , to find a common approach for a new framework for international security . whether this constructive new beginning made with surprising buoyancy and personal engagement will succeed as the genuine partnership that mr . bush and mr . putin described here this afternoon will depend on how they follow through on the collaborative venture that they outlined only in broad strokes . it includes joint work to study security threats , cooperative energy projects and new studies on how american corporations might find investment opportunities in the struggling russian economy . it also includes american support for russia 's entry into the world_trade_organization . ''this was a very good meeting , '' mr . bush said standing alongside the russian_president . ''he is an honest , straightforward man who loves his country , '' he added , and he called mr . putin a ' 'remarkable'' leader whom americans can trust . mr . putin confirmed the american president 's assessment and said the meeting had proved that ' 'reality was a lot bigger than expectations . '' he asserted that an important cold_war milestone had been passed with mr . bush 's declaration that russia is no longer america 's enemy . the two men had come to look each other in the eye , and mr . bush said he did just that to take the measure of mr . putin 's soul . they both appeared to like what they saw , even as they laid out the agenda of their extensive disagreements on missile defenses , the expansion of nato onto the territory of the former soviet_union and russia 's growing arms trade with iran . and today 's reversal of tone in american russian relations may reflect how much each leader needed the positive outcome . mr . bush needed to prove to europe and to the senate that he was not engaged in recklessness as he pursued a new security concept that includes missile defenses . and mr . putin needed to know that the new bush_administration was not looking for a confrontation because mr . putin has his hands full at home trying to pull russia beyond the wreckage of the soviet_era . for more than two hours , mr . bush and mr . putin discussed a world rapidly transforming itself from the world of their fathers and despite the surprisingly positive outcome of today 's meeting , it cannot be separated from the extraordinary week of diplomatic activity that preceded it . in his first major diplomatic foray abroad , mr . bush discovered this week that europe was becoming its own powerhouse of economic and security interests that , while similar to those of the united_states , are by no means identical on issues as diverse as climate_change and urgent european calls for nato to step into the fray in macedonia . and though mr . bush may have succeeded in fostering what he termed a ''new receptivity'' to his proposal for missile defenses among some european leaders this week , germany and france stood as formidable skeptics , each concerned that mr . bush 's plan would trigger a new arms_race by not taking into account russia 's and china 's concerns . as if to sharpen that point , mr . putin made his entrance here after flying from china , where he and president jiang_zemin and the leaders of four central_asian republics signed the founding charter of the shanghai cooperation organization , not quite an alliance , but a potent new expression of asian interests . indeed , despite the warming with mr . bush , mr . putin seems to be fostering a new era of triangular diplomacy , positioning russia to be an ally of china and of europe as a hedge against american unilateralism , a concern he mentioned today . his tactic put mr . bush on the defensive , and mr . bush this week was at pains to assert that america is not about to go it alone in international affairs , but was trying instead to galvanize support for a new international security concept . the concept remains largely undefined except that missile defenses are a prominent centerpiece . with all the disagreement , however , what seemed most important was that the two presidents neither of whom has been in office very long , one a former soviet k.g.b . officer , the other a scion of american wealth and political dynasty had finally met in the shadow of the alps , near the fragile epicenter of european instability in the balkans . mr . putin had been seeking this meeting since almost the day after mr . bush 's inauguration , but mr . bush 's advisers delayed it for months , saying they were formulating a new policy toward russia , one that now seems to be taking shape . the two leaders now move on , to see each other again in july and october at the summit meeting of leading industrial nations in genoa and of asian and pacific leaders in shanghai , and they accepted invitations to visit not just each other 's capitals but each other 's homes . between now and then , both must return to domestic political challenges . mr . bush faces the senate , now led by democrats , many of whom are as skeptical as some european leaders about the consequences of abandoning the 1972 antiballistic_missile treaty and how to pay for missile defenses even if they turn out to be feasible . and mr . putin returns to moscow , where he must prove that he is the democratic leader he advertises himself to be , one who wants to take russia into europe , a goal that will be difficult to reach as long as the partisan war in chechnya continues without negotiation . mr . putin 's yearold government also stands at a critical juncture of reform , with sweeping proposals to build a new judicial system , institute jury trials and privatize land ownership this year , an issue still so contentious in post_soviet russia that a fistfight broke out friday among lawmakers . and though mr . putin this week reaffirmed his commitment to a free press and to building civil_society , his administration has been dogged by incidents of pressure and intimidation that have called that commitment into question . ''this is a unique opportunity , '' said aleksei arbatov , an influential member of the russian_parliament watching events from moscow . ''there are a lot of problems and mutual suspicions between our countries , and the main issue for both leaders is to decide whether they want to resolve these issues cooperatively , or to deal with those problems without dealing with each other . '' ''the fact that the united_states is the only remaining superpower in the world , '' he continued , ' 'means that it has to use this opportunity to demonstrate that it is a well meaning state trying to establish the rule of the game for international_relations on the basis of cooperation and not on force . '' the president in europe news analysis.

last november , a special_election to fill the last seven months of the term of the late mayor , glenn d . cunningham , turned into a free for all . eleven candidates some hardened veterans of hudson_county politics , others novices scrambled to replace mr . cunningham , who died of a heart_attack in may . the race was as rough and raucous as it was entertaining . signs were torn down and rocks were tossed into campaign vehicles . embarrassing pictures of one candidate were posted on the internet and there was enough spin to make this city of 240 , 000 people dizzy for weeks . in the end , jerramiah t . healy , a former city councilman who had also served as municipal court chief judge for five years , won the election with 17 , 401 votes , beating his closest opponent , assemblyman louis m . manzo , by 2 , 242 votes . and now , about four months later , just as things have calmed down , another mayoral election is on the calendar . it is set for may 10 . this time , however , only two candidates have been certified to run , with the possibility of a third . the two candidates are democrats , but elections in jersey_city are nonpartisan . mr . healy , 54 , who quickly set about trying to deliver on his campaign promises of adding more officers to the city 's beleaguered police force , offering amnesty and money to get people to turn in illegal firearms , and repairing the city 's notorious potholes , is running for a full term . his opponent is alfred marc pine , a lawyer who received 449 votes in november . ''i 'm a long shot , '' mr . pine , 51 , admitted , adding that he entered the race to end the ''incompetence and corruption of jersey_city politics . '' ''i 've been known as the casual campaigner and the woody_allen of jersey_city politics , '' mr . pine said . ''i 'm not counting on winning , but i 'm counting on running a good race and making people aware of some of the city 's problems . '' for a while it looked as if the field was going to be almost as crowded as last year 's election with at least seven candidates announcing their intentions to run , but when the filing deadline passed on thursday afternoon only mr . healy and mr . pine were certified . the city clerk 's office is reviewing a petition of a third possible candidate , former councilwoman melissa holloway , who has until wednesday to get the paperwork she submitted in order . ''jersey_city has become dirty city and we need to bring it back we need to clean up the city , '' ms . holloway said , adding that she is confident of getting on the ballot . ''in certain places people feel safe , but there are other parts of the city where they do not . we 've had major murders recently and we need to make the city safer . '' indeed , so far this year the city has had 10 homicides , including the jan . 14 killings of hossam armanious , his wife amal garas , and their two daughters . the family 's killing exposed deep fissures between jersey_city 's egyptian muslim and coptic orthodox communities . two weeks ago the police arrested two men in the killings and cited robbery as a motive . ''we 've been busy here , '' mr . healy said of his four months in office . ''we have a lot of work to do but we 're off to a good start . my focus is getting more cops on the street , less guns on the street , and a gang squad in place to make the city safer and a good place to be . ''

some mutual_funds are born troubled . others become troubled through their own efforts . and still others have trouble thrust upon them . but the best explanation for the mess brewing at the new york muni fund , with 230 million in assets , would seem to be " all of the above . " the tax exempt fund 's early days were shadowed by regulatory problems that continue to affect the day to day management of the fund . the fund 's managers subsequently bought a number of small bond issues of uncertain provenance , and then carried some of them at premium prices after they had defaulted . and , along with all other regional muni bond portfolios , the fund has had the mounting worries about new york , state and city , added to the problems it already faces . the result is bad news for the new york muni fund 's shareholders , whose principal value has declined sharply already , and a clear warning that all investors should monitor the quality of the bonds their funds own , and the prices ascribed to them . the new york muni fund is managed by fundamental portfolio advisors , which is owned by vincent malanga , the fund 's president , and lance m . brofman , the fund 's chief portfolio strategist . the same firm also manages the california muni fund . according to the new york fund 's filings with the securities_and_exchange_commission , mr . brofman " is limited in his activities " at the funds until jan . 6 , 1992 , because of sanctions imposed on him by the commission in 1987 . without admitting any wrongdoing , mr . brofman settled a complaint that he had caused the fund 's former investment advisory firm to make false and misleading statements about the california muni fund . the new york muni fund 's portfolio includes a number of small , illiquid bond issues that were sold by the brokerage_firm of matthews wright , which earlier this month agreed to plead_guilty to criminal conspiracy charges in connection with a municipal_bond scandal in the mid 80 's . further clouding its portfolio , new york muni is the sole owner of all the bonds sold on behalf of certain private projects , giving fund shareholders a nerve wracking stake in the ventures . of course , given the state of the new york economy , new york muni was not alone in lagging behind the national averages for tax exempt mutual_funds in october . michael lipper , president of lipper analytic services , reports that his sample of 48 new york muni funds trailed all tax free funds for the month , and five funds besides new york muni saw their principal value actually decline . those six funds , mr . lipper found , had invested a larger share of their assets , on average , in lower rated bonds than the better performing state and national funds had . but the drop at new york muni was more than twice that of the next ranking fund , and it followed an equally bad third quarter . some of the reasons were first reported last week by barron 's magazine , which noted that two niagara county industrial development agency issues , totaling 14 million and making up 6 percent of fund assets , had missed two interest payments . the bonds were sold on behalf of the private developers of a local retail and amusement arcade that is a year behind schedule and remains 30 to 40 percent vacant . nevertheless , as recently as june 30 , the bonds were listed on the fund 's books at 106 for each 100 in face value . since only a few muni bond issues change hands often enough to produce reliable quotes from traders , most funds rely on independent services to provide prices , based on interest rates and comparable trades . mr . malanga , the fund adviser , said on friday that the prices he has ascribed to the niagara issues about 93 these days , he said came from interactive data . a spokesman for interactive data said that no one was available to discuss how the firm had arrived at its past and current prices on the niagara county issues . mr . lipper noted that " there is more art than science " in municipal_bond pricing . and considerable artistry would have been needed to persuade most people to pay a premium price , or even 93 cents on the dollar , for bonds that are two payments late on debt service . but mr . malanga explained that there is " some sort of reserve fund " that would have covered the two missed payments except that " some judge " intervened . he and mr . brofman were both somewhat vague about the reserve fund 's size and the legal problems that have barred its use . but mr . malanga said he was confident " the situation will resolve itself over the next few months or so . " john bartolomei , the attorney for the various developers , was equally uninformative about the legal tangle affecting debt service . " i heard there were some liens , " mr . bartolomei said friday . " or maybe not liens , exactly , but something . you could call the trustee . " the trustee for both bond issues is norstar bank in albany . mary mccraken , trust officer for the bonds , declined to answer any questions about them . she did say , however , that the s.e.c . had recently called about the issue . " perhaps you could check with them , " she said . a commission spokesperson said , " the staff is not authorized to confirm or deny the existence of any investigation . " in any case , john c . drake , the assistant_director of the niagara county agency that issued the bonds , said that the niagara county urban_renewal agency sold 5 . 9 million worth of bonds last year to help bail out the falls street project . as it happens , that entire bond issue was bought by the new york muni fund . as of june , the latest report available , the bonds were priced at 98 cents on the dollar . but consider another small issue in the fund 's portfolio , sold by the erie_county industrial development agency to finance a private warehouse project . those bonds defaulted sometime in 1988 , and the project is being liquidated . the fund valued the bonds at 79 percent of par last december by june , that price had fallen to 40 percent of par .

lead striking teachers in west_virginia 's 55 counties began voting today on whether to go back to the classroom on monday in return for a promise by gov . gaston caperton to resume talks over a pay increase and not to discipline strikers . striking teachers in west_virginia 's 55 counties began voting today on whether to go back to the classroom on monday in return for a promise by gov . gaston caperton to resume talks over a pay increase and not to discipline strikers . the governor tendered his offer late last night at the end of the third day of the walkout . the strike also involves teacher demands for better benefits and a general upgrading of the state 's school system . it began after teachers rejected offers for a 5 percent raise and increases in spending on education programs . west_virginia ranks 49th in the nation in teacher pay , with an average annual salary of 21 , 904 . only mississippi teachers make less . possibility of new walkout officials of the state 's largest teachers group , the west_virginia education association , said this afternoon that a favorable vote on the governor 's proposal would not mean an end to the dispute if , in a ' 'reasonable time , '' he did not come up with an improved plan to raise pay and improve the state 's education system . the association asked mr . caperton to call a special legislative session to deal with the issues . ''we will not let this drag out , '' said kayetta meadows , the association president . ''the possibility of another walkout is always out there if ending this one does not get results . '' mr . caperton 's press spokesman , g . c . morse , said the governor did not rule out a special legislative session on education but would first survey the state , ''perhaps town by town and business by business , '' to determine what taxpayers were willing to do . mr . caperton has termed the walkout illegal , noting that west_virginia law prohibits strikes and collective_bargaining by teachers . the west_virginia strike is the third statewide teachers' walkout this year earlier , teachers in utah and washington_state staged one day walkouts over pay . county and city teacher strikes are rather common , but statewide actions are rare . some education specialists say the current spate may reflect increasing dissatisfaction with state education systems in general , particularly the way they are financed .

france began the privatization yesterday of pechiney s.a. , europe 's biggest aluminum company and the world 's biggest maker of beverage cans . the finance minister , jean arthuis , said the government would sell 21 million shares in pechiney for a total of 3.5 billion to 4 billion_francs ( 716 million to 818 million ) . the preliminary placing of shares with big financial_institutions will begin today private investors will be offered shares later . the ministry said that consulting banks had estimated that the government could get 187 to 215 francs ( 38 . 25 to 43 . 97 ) a share from institutions . the price for private investors is usually lower than the institutional price . reuters international briefs.

lead with the momentum seeming to build for unification of the two germanys , the west_german foreign_minister , hans_dietrich_genscher , met today with secretary of state james a . baker 3d to coordinate positions on the german question before mr . baker meets with soviet officials next week . with the momentum seeming to build for unification of the two germanys , the west_german foreign_minister , hans_dietrich_genscher , met today with secretary of state james a . baker 3d to coordinate positions on the german question before mr . baker meets with soviet officials next week . after their two hours of talks mr . genscher said tonight that he and mr . baker agreed that a unified germany would have to continue to be aligned with nato , but that no nato troops would be extended into what is now east_germany . ''we were in full agreement that there is no interest to extend the nato area of defense and security toward the east , '' mr . genscher said as mr . baker stood by his side . mr . genscher 's meeting with secretary baker reflects the speed with which the german_unification issue is evolving now that east_germany 's prime_minister , hans_modrow , after meeting with soviet president mikhail s . gorbachev , has proposed a reunited german state , provided that it is neutral . that proposal , made on thursday , has already drawn a cool response from bonn and washington . and today the soviet leaders , perhaps worried that the drive for unification is proceeding too quickly , proposed an international referendum on the issue by the world_war_ii allies . administration officials are concerned that with east_german elections set for march 18 , east_germany will soon have a democratically_elected government that will almost certainly begin seeking unification . they want to be certain that west_german policies are meshing with their own . 'faster than we anticipated' one administration policy maker said ''obviously things have started moving faster than we anticipated last november , when everyone was talking about a measured pace . history just did n't give us that . it looks like we 're heading down the fast track . we had hoped to see deeper economic and political integration of west_germany within the european_community before all this happened , but that just is not going to be . '' administration officials are not taking a public position on the form of german unity , in part because they still have no consensus and in part because they do not want to get ahead of the east_german elections , or appear to be imposing a blueprint before the german people themselves have voted . nevertheless , administration officials say they are are looking closely and , it appears , quite sympathetically at mr . genscher 's latest unification proposal , which aims at countering mr . modrow 's plan for a ''united fatherland , '' governed from berlin but removed from both nato and the warsaw_pact . mr . genscher has suggested that a reunited germany would remain a member of the north_atlantic_treaty_organization but that the territory of east_germany would not be drawn into the western alliance 's military structure . in that east_german territory , where the soviets currently have 390 , 000 troops , moscow would be able to continue its military presence . reunited but still in nato mr . genscher 's proposal , though , envisions much lower levels of both soviet and american_troops and suggests that they would engage in regular confidence building exchanges . while not endorsing the genscher proposal , administration officials acknowledge that the idea would take into account the security concerns of both the soviets and germany 's other neighbors . it would also strengthen the ability of a new germany to remain in nato . ''the problem , '' said one state_department official , ''is that the plan sounds great on paper but how do you actually get it implemented especially when you are dealing with a nervous and potentially unstable soviet_union ? '' regarding mr . baker 's trip next wednesday to moscow , the state_department announced today that the secretary had been invited to testify before the international affairs committee of the supreme soviet on feb . 10 . it will be the first time an american official has ever testified before a committee of the soviet parliament .

prime_minister ryutaro_hashimoto spent most of today trying to persuade skeptics of the virtues of a plan to raise 10 trillion_yen in life_support for the japanese banking system . by the end of the day , it seemed that the prime_minister facing growing pressure to solve the nation 's financial problems had prevailed . koichi_kato , general secretary of the ruling liberal democratic_party , abandoned his opposition to the program after mr . hashimoto promised that none of the money would be used for a tax_cut or some other economic stimulant that violated the party 's pledge of fiscal_austerity . the party 's deliberations over how to strengthen both japan 's banks and its anemic economy have become a dominant theme in the financial markets here since the collapse last month of two banks and two brokerage_houses , including yamaichi_securities , japan 's oldest and one of its largest investment firms . the nikkei index of 225 stocks sank 2.6 percent today as investors waited to see how mr . hashimoto might resolve the impasse over rescuing banks . early friday , the nikkei declined further , down 237 . 86 points , or 1 . 48 percent , at the midday recess , to stand at 15 , 812 . 29 mr . kato had originally objected to the banking plan , proposed by a political rival , seiroku_kajiyama , because selling bonds to finance a bank bailout would have contravened the government 's doctrine of fiscal_restraint , which includes a ban on deficit financing . in addition , mr . kajiyama had suggested that some part of the 10 trillion_yen 77 . 5 billion at current exchange_rates would go toward financing a tax_cut or a public works project , which would also have conflicted with a government policy of reducing the budget_deficit to 3 percent or less of the gross_domestic_product by 2004 . today , mr . kato said that the prime_minister had told an ally of mr . kajiyama on wednesday that the money would be used only to repair the financial system . the government has said that since it intends to use shares it owns of the nippon_telegraph_and_telephone corporation and japan_tobacco as collateral , the plan would not add to the deficit and would therefore not constitute deficit financing . but that is largely viewed as a face saving argument because those shares have already been pledged to service and redeem other government_bonds . that , taken together with a proposal by the ruling party 's tax panel to cut business taxes , may be one of the first signals of a retreat on fiscal_austerity . previously , the finance ministry had insisted that any corporate_tax cuts must not reduce overall revenue . john f . neuffer , a political analyst for the mitsui marine research institute , observed that ''within the l.d.p. , there are many who are nervous about the state of the economy and think it 's time to open up the till . '' sentiment on japan 's economy is growing gloomier by the day , and the united_states keeps demanding that tokyo do something , given the economic crises elsewhere in asia most notably in south_korea . executives were filling in the work sheets for the japanese central_bank 's influential tankan quarterly business survey the week yamaichi_securities collapsed , and economists expect the results of the survey , due for release on monday , to be bleak . the government is scheduled to offer its third economic stimulus_package on tuesday , which is expected to provide little that might increase output , along with its plans for restoring stability in banking . ''hashimoto is changing his stance , both on providing public funding for the financial system and on net tax cuts , but without being able to change his commitment to fiscal conservatism , '' said mineko_sasaki_smith , an economist with credit_suisse_first_boston here . ''he 's getting a lot of pressure to do something from abroad , as well as within the party . '' international business.

six months ago , in a sleepless , adrenaline fueled rush of last minute dealing in kyoto , japan , delegates from around the world agreed for the first time to make specific , legally_binding reductions in industrialized_countries' emissions of heat trapping gases believed to affect earth 's climate . now , in something of a morning after , what have we done state of mind , negotiators grappling with the details of putting the first cuts into effect are finding the task as difficult as that of hammering out the original accord . as they made their first formal efforts to flesh out the kyoto accord in talks here over the last two weeks , it became clear that the agreement remains largely a work in progress . thanks to the same clash of interests that nearly scuttled the negotiations in kyoto , the work may not be finished for quite some time . before the kyoto meeting took place , said michael zammit cutajar of malta , who heads the united_nations climate secretariat , the initial agreement was seen as a kind of summit to be reached . but ''when we got to kyoto , we saw it was n't a peak at all but a plateau . '' with a new mountain ahead , he added , ''we are not anywhere near the top . '' as the next phase of the struggle got under way , developing_countries renewed their insistence against submitting to specific , mandatory emissions caps until wealthier nations achieve reductions . that left open the question of whether the poorer nations can be drawn more fully into the reduction program anytime soon . if not , american politicians say , the kyoto_protocol , as the agreement is called , cannot be approved by the united_states_senate . the talks here set the stage for the next high level conference of the more than 150 countries that signed the 1992 treaty under which the kyoto_protocol was negotiated . the conference is scheduled for buenos_aires in november . its main objective will be to make as much progress on the details of the protocol as possible . the kyoto_protocol requires industrialized_countries to reduce emissions of carbon_dioxide and five other heat trapping atmospheric gases by an annual average of about 5 percent below 1990 levels for the period 2008 through 2012 . some countries are to cut their emissions by more than that , some less . the united_states' reduction target is 7 percent . carbon_dioxide is produced by the burning of fossil_fuels like coal and oil . the kyoto targets are widely viewed as a first step , since overall concentrations of greenhouse_gases in the atmosphere will continue to rise if deeper cuts are not eventually made . without any reductions at all , scientific advisers to the delegates here say , the earth 's average surface temperature will rise by 2 to 6 degrees_fahrenheit , with a best estimate of 3.5 degrees , by 2100 . a warming of this magnitude , the scientists say , would cause the sea_level to rise and inundate many coastal areas . it would also worsen droughts and rainstorms , cause more heat waves and floods , increase precipitation generally and shift climatic and agricultural zones . for the countries here , the immediate challenge is to enable the first steps included in the kyoto accord to be taken . that involves agreeing on how new mechanisms for cutting emissions will work in practice . one , which negotiators have named the clean development mechanism , is a system for channeling and certifying rich countries' investment in emissions reducing projects in poor countries power_plants that emit less carbon_dioxide , for instance . the two nations involved would share the credit for emissions reductions achieved , and part of the proceeds would help the developing_countries adapt to climatic change . another mechanism is called emissions trading . in this system , much favored by the united_states , a country or private company could achieve its reductions target partly by buying reductions from a country or company with excess cuts . proponents say this arrangement would work globally , and at lowest cost . these two mechanisms are the operational heart of the protocol , and both came under criticism in the talks just concluded . developing_countries balked , resisting pressure to move rapidly until questions about the mechanisms are answered . what is required now is ''to learn and understand , '' said vijai sharma , the chief delegate from india , who said that much had been unclear in the chaos of kyoto . answering the questions and then formulating rules for operating the mechanisms ''is going to take long , '' he said . one reason for the developing_countries' caution is that they are likely , eventually , to come under the same rules as the rich nations . and many delegates from the poorer countries say privately that while the clean development mechanism holds apparent benefits for them , it is unclear what the costs might be . on emissions trading , a split developed between the european_union and much of the rest of the industrialized world , including the united_states , over the critical issue of how much of a given country 's reduction it should be allowed to achieve by purchasing emissions rights from another country . the europeans insisted that some cap be placed on the proportion of a country 's reduction that can be achieved through trading . the united_states and other countries insist just as strongly that trading should be unrestricted . otherwise , they say , the market mechanism will not function properly and the cost of reductions will rise . the americans say it is simply not yet known how much emissions can be reduced by domestic action .

harley brooke hitching looked , well , different from most attending monday 's luncheon at the women 's national republican club . she wore jeans and a baggy sweatshirt . two young employees accompanying her wore the same . " we 're not going to steal nothing , " one of the employees told a nervous woman at the front desk . make no mistake , mrs . brooke hitching was more than welcome in this staid bastion . she had arranged the refinancing of the club when its books were shaky . the republican women had figured that if mrs . brooke hitching could secure loans to buy dilapidated buildings in east_harlem , she just might do the same for anybody . the red haired , 45 year old whirlwind is n't a registered republican , but vehemently supports business enterprise . her mission for the last five years has been to try to make money renting decent apartments to some of new york 's poorest people . she owns 180 units of low and middle_income housing , mainly on 111th street between second and third avenues . she had come to hear police commissioner lee p . brown speak . the commissioner declared the root of the crime crisis is " the pervasive use of illegal drugs . " not news to mrs . brooke hitching . drugs are pandemic and pernicious on east 111th street . she has found windows broken , been threatened and been hit in the face . so she compiled a list of drug dealers and drug apartments in her and others' buildings and sent it to city officials , including mr . brown . there was the name of a man who holds drugs and guns , a woman who holds drugs for street runners ( her children ) and a man who sells drugs on weekends when he is released from jail . despite her specificity , months have passed with no action . mrs . brooke hitching mentioned this to the commissioner after the speech . he thanked her and suggested she call her precinct . " we 're in contact with them a lot , " she said wearily . " we just do n't get any response . " that morning , in her upper east side apartment , it had become clear that harley brooke hitching is an almost indescribable woman . there were exquisite antiques , leather bound books , row upon row of fine wine . country_music , don williams to be specific , filled the room . four large cats , once strays , lounged about . the coffee was instant . one set of great grandparents had been in the oklahoma land rush another carried british titles . she was educated in britain , france and italy that being " what a young girl did . " at age 24 , she was managing sotheby 's amsterdam branch . there was marriage , divorce and one son , now 17 . she lived in bangkok , made a bundle from asian art . a decade ago , she came to new york in search of " a bigger pond . " she could n't find an apartment as large as the one she had left in chicago . so she used her savings as a down payment on an entire building , converted it to co ops and made a killing . she did even better with a bigger one . in 1985 , mrs . brooke hitching decided to invest in east_harlem . part of the reason was economic the real_estate boom had wildly inflated prices but the tawdry area remained cheap . part was trying to link profit and altruism that this landlord is of good heart is evident in her 1982 founding of city harvest , which distributes food to the hungry . there was a third factor . " i must say it 's exciting , " she said . " the adrenaline pumps . " mrs . brooke hitching had no illusion about her purchase . not only did some of the 11 buildings not have locks , they lacked doors . " i was buying garbage . " but she scrambled and got financing . she painted the walls fanciful colors . then , the value of her investment climbed . new tenants seemed more responsible . her vision was confirmed " things can work for everybody . " lately , though , she has become pessimistic . drugs and crime are the most obvious scourge . but taxes , utilities and oil are going up faster than income . and she has learned to gripe the gripes of landlords . one is that no matter what a tenant does to your property , he is almost impossible to evict . another is that housing court is " a zoo . " unexpected expenses have included recycling fines . " i am now responsible for the recycling of the garbage of people who defecate in hallways , " mrs . brooke hitching sighed . all this comes while property owners' assets are crumbling in front of them . her once pristine hallways are now marked by grafitti and dirt . she frets about banks' patience . she is tired of fighting city hall . but she has n't given up . this unlikely landlord treasures remembering climbing kilimanjaro on the morning of her 43d birthday . just as she reached the top , the sun popped out .

on the blustery winter day when he took over as the commander of the 24th precinct , capt . john t . mcdermott received a phone call that he took as a sign . " i think it was the first call i took that day , " he recalled . " it was a very frustrated public_school principal who said , 'i really have a serious problem . ' " the problem was an entrenched crack market around public_school 165 on 109th street , with young students being intimidated and threatened . " it was quite an introduction , " said the 28 year police veteran , who six months ago inherited a precinct that covers the area from the north side of 86th_street to 110th_street between central_park and the hudson . it often feels like two precincts . in the northern half are poorer residents and a persistent drug trade . toward the south are more affluent neighborhoods with increasing complaints about homelessness , graffiti and street safety . the entire area has been at the center of a fierce debate over whether it is overburdened with centers that treat drug addicts , the homeless and the mentally ill . in an interview last week , captain mcdermott , 50 years old , talked about his concerns . q . is there a glut of social service centers in your precinct ? have crime problems associated with these sites been exaggerated ? a . i think the people on the upper west side are very fed up . there have been so many of what i call vest pocket social service centers set up all throughout the area , which has a built in clientele for drug dealers . i 'm all for trying to help people out and make them productive citizens , but if you overrun one particular area , which i think is what 's happened here , it 's very difficult to deal with . we have a lot of people who really do n't get the assistance they thought they were going to get when they came into these programs . and a lot of them are really hard core drug users who are really are n't interested in any assistance . i think the neighborhood is correct in its assessment . q . what was your first change as precinct commander ? a . the one thing i did n't particularly care for is that there were officers who were brand new and they were put on a 6 p.m . to 2 a.m . tour . and we had two young sergeants , just recently promoted , assigned as their supervisors . i was getting reports that officers were not taking proper action , that they were not really at the place within their post where the problems were . i think the reason was that they did n't really know how to deal with a lot of the problems on the street because they were never broken in . i integrated those 18 officers into my three platoons and had them work with more seasoned officers for a week or two , and then i put them on their own . q . what is your highest priority now ? a . the manhattan valley area . we have quite a few problems with narcotics dealing . it made me very concerned because unless it 's addressed within that area , i can see how it can spread to other parts of the command . q . what has been done to address the situation around p.s . 165 ? a . the first thing i did was to set up a safe corridor around p.s . 165 . with the cooperation of the transit_police , they set up a special post on 110th_street by the subway . the manhattan north task_force sent me two officers for lunchtime and dismissal . we gave it a considerable amount of coverage and the dealing dissipated quite a bit . to this day , though , we have to keep right on top of it . once we pull away to go somewhere else , they come right back . q . has community policing been effective ? will you continue it as in the past ? a . it got a little too far into the social work aspect . it has to pay a little bit more attention to addressing the quality of life issues in the community . i have officers more actively out there correcting conditions in the street rather than going to a host of meetings . you have to work a balance . r.k . neighborhood report upper west side.

a government report sharply rebuked goldman , sachs and other prominent financial_institutions today for their involvement with robert_maxwell , the flamboyant tycoon whose death a decade ago provoked the collapse of a trans_atlantic media empire . the empire which included the daily news of new york , the daily_mirror of london and the macmillan publishing house had survived only because mr . maxwell had looted his employees' pension_funds of hundreds of millions of dollars to buy his own company 's stock and prop up its price . today 's report from the department of trade and industry almost nine years in the making at a cost of some 14 million said goldman , sachs bore ' 'substantial responsibility in respect of the manipulation that occurred in the market'' . it said goldman , sachs bought shares in a maxwell owned company on behalf of a buyer who turned out to be mr . maxwell himself , helping to stave off creditor banks holding the stock as loan collateral . a statement from goldman , sachs , which noted that the report did not suggest overt collusion between it and mr . maxwell , said the firm ''and doubtless many other firms'' in london 's financial district ''were intentionally and successfully deceived . '' ''we deeply regret this , and , with the benefit of hindsight and with the information now available to us , would have acted differently , '' the statement said . the report did not urge legal action as a result of its findings . it ascribed ''primary responsibility'' for frauds relating to the mirror_group newspapers and the maxwell_communication corporation to mr . maxwell personally , but said a son , kevin , bore ''a heavy responsibility'' because he had given his father ' 'very substantial assistance . '' in light of his knowledge of his father 's businesses , ''kevin maxwell 's conduct was inexcusable , '' the report said . in response , kevin maxwell said he regretted ''profoundly the impact on all those affected by the collapse of my father 's business . '' he and a brother , ian , faced fraud charges in acriminal court case in 1996 , and were acquitted . the report also criticized other financial_institutions , including lehman_brothers and salomon_brothers international . in previous inquiries and court procedures related to the maxwell empire , goldman , sachs and lehman_brothers were fined in 1993 for violating british securities laws and in 1995 , those two institutions , along with the accounting firm of coopers_lybrand deloitte paid some 430 million to mirror group pensioners in an out of court settlement . coopers_lybrand was among robert_maxwell 's professional advisers in the 1991 public_offering of shares in mirror_group newspapers and the report also criticized the firm for failing ''in their duties as independent auditors . '' pricewaterhousecoopers , which took over coopers_lybrand in 1998 , said that it would not dispute the report and accepted its criticisms . ''we have already been through a very public disciplinary process , '' said roger white , a company spokesman , referring to a 1999 inquiry by accounting industry regulators who ordered the company to pay 3 . 3 million ( 4 . 7 million ) in fines and costs . ''there is not much we can add today except to repeat that we fell short of the high standards we set for ourselves and for that we are extremely sorry . '' robert_maxwell was a showy and bombastic figure whose rise to riches was as controversial as it was stellar . as long ago as 1971 , a government inquiry into his business practices found him unfit to ''exercise proper stewardship of a publicly traded company . '' despite the censure , he went on to build a publishing and media powerhouse centered on the mirror_group of newspapers . in 1986 he pledged to build a global communications company , but increasingly he raided company pensions to fuel his dreams , today 's report said . by 1991 , however , his creditors were at the door . ''the imminent collapse of the empire was inevitable , '' the report said . with his domain crumbling about him , his death at sea in an apparent fall from his yacht off the canary islands came as a bombshell to employees and financial_institutions alike in november 1991 . only afterwards was it discovered that he had secretly transferred hundreds of millions of dollars from employee pension_funds into other businesses . some 450 million ( 813 million at the time ) was found to have been siphoned off . ''the complex ownership and financial structure of his empire and the concealment of the use of the pension_funds made it difficult for banks to gain a clear picture , '' today 's report said . international business.

the iraq_war 's dampening effect on recruiting has led to a plan by the marine_corps to put hundreds of additional recruiters on the streets over the next several months and offer new re enlistment bonuses of up to 35 , 000 , military officials said thursday . recruiters and other military officials say the ''falluja effect'' a steady drumbeat of military casualties from iraq , punctuated by graphic televised images of urban combat is searing an image into the public eye that marine officers say is difficult to overcome . the marines make up about 21 percent of the 150 , 000 military personnel in iraq now but have suffered 31 percent of the military deaths there , according to pentagon statistics . the army and other services have often increased the number of recruiters and dangled incentives to bolster their enlistment efforts in lean years . but for the marines , steps of this magnitude , including the largest one time increase in recruiters in recent memory , are unheard of in a service whose macho image has historically been a magnet for young people seeking adventure and danger in a military career . gen . michael w . hagee , the marine_corps commandant , predicted on thursday that the marines would achieve their overall recruiting goal for this fiscal year , even after the service missed its monthly quota in january , the first such lapse in nearly a decade . but general hagee indicated that recruiters were facing some of toughest conditions they have ever faced , starting in the homes of their prized recruits . ''what the recruiters are telling us is that they have to spend more time with the parents , '' general hagee said . ''parents have influence , and rightly so , on the decision these young men and young women are going to make . they 're saying , 'it 's not maybe a bad idea to join the marine_corps , but why do n't you consider it a year from now , or two years from now let 's think about this . ''' at issue is the marines' decision to rebuild its recruiting ranks , which had fallen recently to 2 , 410 full time recruiters from 2 , 650 before the iraq_war , as commanders siphoned off marines who had been scheduled for recruiting duty to perform combat duty in iraq and afghanistan . ''the recruiting force atrophied , '' said maj . david m . griesmer , a spokesman for the marine_corps recruiting command . ''now we need to get back up to where we need to be . '' major griesmer said the marines would add nearly 250 recruiters between now and october 2006 . general hagee said , ''we are putting more recruiters out there on the street . '' in a reflection of the difficult market for marine recruiters , the service offers bonuses of up to 35 , 000 to retain combat veterans of iraq and afghanistan . what is unusual about these incentives is that the marines corps for the first time is offering re enlistment bonuses , averaging 20 , 000 , to its most junior infantrymen , rather than relying mainly on inexperienced troops fresh from boot_camp to replenish the infantry . about 75 percent of enlisted marines leave the service after their first tour , requiring a steady stream of recruits moving through training centers in san_diego and parris island , s.c . ''we need infantrymen , '' general hagee said , explaining the shift in bonus priorities . ''that 's what we 're using over there on the ground . '' general hagee said the initial wave of bonuses had increased re enlistment rates among infantry units , but marine officials said they did not have specific figures readily available . the marines' decision to strengthen recruiting comes as the army has added hundreds of new recruiters and is pushing incoming recruits into training as fast as possible . in a wide_ranging breakfast interview with reporters , general hagee touched on several issues regarding iraq that military specialists say contribute to the climate of concern among potential recruits and their parents . general hagee said the military had an all out effort under way to combat the remotely_detonated roadside_bombs that are the no . 1 killer of american_troops in iraq . the marines , he said , are using a sophisticated computer program to help identify potential vulnerabilities of supply convoys protected by electronic jamming devices . when it comes to recruiting , the traditional enticements of military service , like travel , education benefits and the marine_corps mystique , now must vie with the concerns of recruits and their parents , recruiters say . ''the parents have always been the challenge , '' said gunnery_sgt . larry pyles , who has been a recruiter for five years in the dupage south office in naperville , ill .

civilian experts recruited by the united_states to hunt for unconventional_weapons in iraq say bureaucratic confusion and infighting have delayed their effort to a point that the search itself may be compromised . the experts are part of a team of 40 to 60 people , both americans and foreigners , whose mission is to follow the military 's initial searches with more exhaustive ones . many are scientists who formerly worked in iraq for the united_nations and are considered experts on iraqi arms . so far , some of them say , the military 's search efforts seem superficial and misguided . ''they 're going to blow it , '' one would be inspector said . ''that 's the concern of a number of us . '' this expert , and about half a dozen other would be inspectors , spoke on condition of anonymity out of fear that they could be dropped from the team if they speak out publicly . they said they wanted to go to iraq to help uncover illicit_weapons they believe are still there , but well hidden . another expert called the military effort na_ve . ''they 're reinventing the wheel , '' he said . ''it does n't seem to be a well executed plan . '' defense_department officials in washington , while conceding some missteps , defended the military hunt as sound . they said that no date had been set to send civilian inspectors in , but that the main reason for delaying them was concern for their safety . ''we do n't want to risk them before we know it 's safe to go in , '' one official said , speaking on condition of anonymity . at least two kinds of military arms hunters are already at work in iraq . troops on the front lines have detectors to identify suspected deadly_germs , chemicals and sources of radioactivity . behind them is the 75th_exploitation task_force , a large unit with better skills and equipment , including mobile laboratories . the next wave , the civilian inspectors , is to be made up of the best scientists and experts the government can find . ''what we 're trying to set up is a more muscular organization to go in with even more talent , '' the military official said . ''they 're the high quality expertise meant to tell the difference between saddam 's strategic talcum powder reserve or the anthrax . '' some of the civilians attributed their delayed training and departure to bureaucratic ineptitude and infighting among the nation 's military and security agencies . as a result , they say , morale among inspection team members has fallen as doubts rise about the effort 's chances for success . ''it 's been known for some time that this has to go and it 's not moving , '' one expert said of the civilian effort . he added that recent reports from iraq told of an important archive that was uncovered and its papers scattered to the wind . ''that 's an important part of the picture , '' he said . ''now it 's gone . '' several expressed frustration that the bush_administration had cited the need to disarm iraq as the main reason for the invasion , yet so far had offered no firm evidence of chemical , biological or nuclear_weapons . the civilians said the bureaucratic troubles seemed to center on two pentagon agencies , the defense_intelligence_agency and the defense threat reduction agency . at times , they said , the agencies stumbled over each other they spoke of getting calls from a changing cast of characters , some seeming to be poorly informed . ''i said , 'what 's the schedule ? ' '' one civilian recalled . ''they could n't answer , so i said , 'sorry , i 've got commitments . ' '' another said , ''you get the impression that no one is in charge . '' some speculated that the speed of the war may have combined with bureaucratic red_tape to produce an untimely start . members of the military can be ordered to report for inspection duty , but civilians need contracts , pay , flight schedules and logistical aid . the civilians said a white_house expert , col . robert p . kadlec of the air_force , was trying to untie bureaucratic knots and get the operation moving faster . he did not respond to a message left at his office . pentagon officials said the civilians were overreacting out of frustration that the military got into iraq first . they added that the two pentagon agencies had distinct roles the civilian effort is organized by the defense_intelligence_agency and the threat reduction agency is in charge of destroying any unconventional arms that are discovered . for the civilian team , the iraq_survey_group , the government is drawing mainly from the ranks of former united_nations inspectors in iraq , including ones who worked for the international_atomic_energy_agency , the united_nations monitoring , verification and inspection commission , known as unmovic , and its predecessor , the united_nations special commission . ewen_buchanan , a spokesman for unmovic , said it had trained more than 300 inspectors to go to iraq and that about 110 actually went before the war started . he added that except in a few cases , his agency had no systematic way of knowing which inspectors the administration had sought out . ''there were two americans on the new york staff who were approached and said , 'no thank you , ' '' mr . buchanan recalled . the united_nations insists that it still has legal authority to disarm iraq . pentagon officials said the civilian inspectors were to go far beyond the military 's efforts in hunting for chemical , biological and nuclear_arms and their delivery systems . the period that civilians will spend in iraq , officials added , will be open ended , depending on what is found . the idea for the civilian team originated last year when central_command planned the war , military officials said . they added that efforts to organize it had accelerated in the last two months . the civilians go to fort_benning , ga . , for vaccinations and refresher training in how to conduct the hunt for iraq 's unconventional_weapons . last sunday , officials said , 20 civilians flew to fort_benning , and more are scheduled to go . military officials said they had 30 to 40 former united_nations weapons inspectors in the pipeline for iraq and that they were trying to locate another 20 to ask them to sign up . all told , they added , some 1 , 000 military personnel and civilians will probably be involved in the search . the civilians and military officials both said foreign experts would be part of the american team . ''we 're certainly looking for their help , '' the military official said , adding that at the very least british experts would be among the specialists . the official said that an advance team for the inspectors was already working hard in the middle_east to make arrangements for their arrival . ''believe me , we 're going to work them , '' he said of the civilian team . ''things are happening that they 're not aware of . '' the military inspection_teams have already hit the beach , he added , ''and the next wave is getting ready to climb into the landing_craft . '' a nation at war arms hunt.

scientific studies of illnesses reported by some veterans of the persian_gulf_war have been hampered by inadequate and scattered military medical records , an expert panel said today . the panel concluded that lack of uniform health records for all troops who served in the war , including active_duty soldiers , reservists and national_guard units , has blocked effective research . after the fighting , thousands of veterans reported a variety of symptoms that are sometimes referred to collectively as gulf_war_syndrome , and many studies have tried , unsuccessfully , to find the causes of the symptoms . to prevent such problems in the future , the pentagon needs to establish a modern , electronic medical records system , said a committee convened by the institute of medicine , a unit of the national academy of sciences . such a record system would provide the kind of comprehensive health information that would be useful now in studying illnesses that may be associated with service in the gulf_war . the panel , asked to assess current studies of the health of gulf_war veterans , said there were still questions about the completeness of information released by the pentagon that could bear on these health problems . dr . john c . bailar 3d , the chairman of the 18 member committee , said in the preface to its report that the panel did not assess the recent defense_department disclosure that up to 15 , 000 american_troops might have been exposed to chemical_weapons agents when a weapons bunker was destroyed in southern iraq at the end of the war . such late disclosures , dr . bailar said , ''continue to raise questions about the completeness of exposure information provided by d.o.d . to date . '' in calling for complete disclosure by the military , the panel said even its members had difficulty identifying and tracking down some relevant defense_department studies and reports because they were not published in open journals or indexed so they could be easily found . the panel said that all scientific studies sponsored by the defense_department or the veterans_affairs department should be published in open , peer reviewed journals and that any proposed studies of health matters should be announced publicly and be open to review by all scientists . the committee said ample evidence showed that some veterans were genuinely sick with a variety of symptoms , most notably fatigue , headache , skin conditions , muscle and joint_pain , and loss of memory or attention problems . but , it said , all these abnormalities were probably not caused by a single event . small , focused studies of groups of veterans that are under way or being planned probably are the best way to develop useful data , the panel said . a large epidemiological study of all 700 , 000 veterans who served in the war , which has been suggested , would be expensive and difficult , and probably of less scientific value than smaller studies , it said . dr . bailar said in an interview that the committee was not aware of possible troop exposure to chemical and biological_weapons when it began its study three years ago . up until recent months , the pentagon said there was no evidence that american_troops had been exposed to these weapons , but it now concedes that thousands may have had at least trace exposure to these agents because of allied destruction of enemy factories and ammunition dumps . ''i think it 's clear now that the military needs to do studies on the long term effects of low level exposures to sarin and other chemical agents , '' dr . bailar said .

rejecting white_house efforts to describe him as an untrustworthy choice for voters , gov . bill clinton today accused president_bush and his aides of playing politics with foreign_policy . mr . clinton said that he had been prepared for mr . bush to attack his foreign_policy credentials as a campaign tactic but that " i do n't think we should turn every issue into a partisan issue . " " they 've been a little intemperate lately , " mr . clinton said of white_house officials . the counterattacks today from mr . clinton and his running_mate , senator al_gore of tennessee , made it clear that the democrats recognized that while foreign_policy might be the president 's strong suit , they had no intention of yielding to him . page_a12 . 'could n't have read it' mr . bush and his spokesman , marlin fitzwater , both criticized the democratic nominee on monday . mr . fitzwater characterized as " reckless " recommendations by the arkansas governor on the conflict in the former yugoslavian republic of bosnia and herzegovina and said they showed that he could not be trusted to formulate foreign_policy . mr . clinton countered today " i do n't believe mr . fitzwater read what i said about yugoslavia . he could n't have read it and said what he said . i guess they 're hoping that nobody else will read it . " he accused the white_house of attacking him in a " desperate " effort to " divert the american people from their own problems . " in a statement issued over the weekend , mr . clinton said he would not rule out selective bombing of serbian targets as a way of insuring the delivery of united_nations relief supplies . " i did n't say we should do it , but it 's something we should n't rule out unless you just want to give up the relief effort , " mr . clinton said today . " my view is that we ought to continue the relief effort . " he said his statement was intended to " bolster actions that i think they 'll probably be required to take in the next couple of weeks , " adding , " i was frankly amazed at the reaction . " campaigning today in lagrange , just west of chicago , mr . clinton picked up on the republicans' theme of trustworthiness and expanded it beyond foreign_policy . " this is the guy who four years ago said , 'read my lips , ' and he wants us to trust him ? " mr . clinton said . " this is the guy who said he would stick up for the forgotten american , and then as soon as he was elected he forgot him again . and he wants us to trust him ? " " i think we can trust him to carry out the same old failed policies that benefit only the rich and let this country go downhill , " he added . " he ran on a kinder , gentler nation , we got a meaner , more divided nation life is less gentle kind , less gentle . " he went on , " it 's a desperate thing to say this election ought to be about foreign_policy when america is being ridiculed around the world . " mr . gore did his part in what was clearly an orchestrated response to the criticism by mr . bush . mr . gore , who has described the white_house as in a " panic , " said in charlotte , n.c. , this morning that if mr . bush and vice_president dan_quayle " are such whizzes " in foreign_policy , " why is it that saddam_hussein is thumbing his nose at the entire world ? " again and again mr . gore has accused mr . bush recently of " coddling " the iraqi president in the weeks leading up to iraq 's invasion of kuwait in august 1990 . again and again , he has accused the president of not taking action to halt mr . hussein 's postwar attacks on iraqi dissidents , including the kurds , and has said mr . bush let the iraqi leader " toy " with united_nations inspectors . mr . gore has repeatedly made the point that he and mr . clinton supported the war in the persian gulf_region and support whatever steps may be necessary next to keep mr . hussein in check . comment from carter and former president_jimmy_carter , in an appearance with mr . gore in atlanta , today accused mr . bush of the " politicizing of foreign_policy " and said it would be " a travesty " if secretary of state james a . baker 3d left his job to help the president 's re election effort . mr . clinton has sought to focus his campaign on the ills of the domestic economy . speaking with reporters on his campaign plane today on the trip to chicago from san_francisco , mr . clinton defended his foreign_policy proposals but also tried to turn the debate back on to turf where he is most comfortable . " i just do n't think that either side should play a lot of politics with this country 's foreign_policy , " mr . clinton said . " we ought to be working to develop bipartisan foreign_policy . they 're not there yet . we ought to disagree when we have to on the merits , and attention ought to be turned to the incredible problems of americans here at home . " mr . clinton has agreed with mr . bush on his handling of the confrontation in iraq , where mr . hussein barred united_nations inspection officials from entering a building to examine military records in a weeklong standoff . he said today that he did not feel " constraints to disagree " with mr . bush on every matter , and that he wanted to avoid allowing mr . hussein to use election year disagreements as a way of defying provisions of the cease fire agreement . " there had been several areas where i have disagreed with what his foreign_policy haiti , china and other areas , " he said . " but i have tried to avoid politicizing it too much . i certainly have in the case of iraq and in the case of bosnia . " he added , " i think the american people want a president who will play it straight in foreign_policy , tell them the truth , that they desperately want this election to be about them and their lives and their future . " mr . clinton also said that brent_scowcroft , the president 's national_security adviser , called him a few days ago to offer him a security briefing an offer that is routinely made to nominees of the opposition party . mr . clinton said that he had accepted the offer but had not yet scheduled the briefing . " i 'm going to run the campaign i have to run , " mr . clinton said today . " that 's a responsible campaign on the issues that got me into the race for president . on foreign_policy , i 'm going to say what i think and try to be forthright and responsible . if i disagree with the administration , i 'll say it . when i agree with them , i 'll say it . " this election has got to be about making america strong at home , making the changes we 've got to make at home , giving the government back to the american people again , " he said . " all this talk about foreign_policy , you know , there is a limit to how strong we can be abroad if we 're not strong at home . "

after decades of slow decline , production levels in british industry recorded their sharpest drop in four years in september , falling 1.2 percent from august . around 80 percent of industrial output comes from manufacturing , which slipped 1.6 percent in september from august , its worst retreat since 1992 . the numbers were much worse than economists had forecast . they reinforced speculation that the bank of england might cut its benchmark interest rate by a quarter point , to 4 . 25 percent , this week to bolster flagging growth . alan_cowell ( nyt )

yeni rivero said she always had a slightly uneasy feeling when she was told she could not accompany her 5 year old son , mario , into the treatment room when they visited the children 's dental center in union_city , n.j . last month , when an assistant called her into the treatment room , that unease was borne out she found her son with a broken leg that she believed was caused by the dentist , dr . kevin p . ward . ''my son was pale white and crying , and he told me , 'mommy , i ca n't walk , ' '' mrs . rivero said friday in a telephone interview from her north_bergen home . ''the dentist explained to me that my son was struggling , and that he had begun to kick his legs in the air and had kicked him in the head , '' she said . ''he told me , 'i pressed down on his leg , and i heard his bone snap . ' '' mario rivero has a broken right femur , and has a cast on his entire right leg , part of his left leg and halfway up his chest , his mother said . dr . ward , 42 , did not respond to telephone messages left at his office thursday and friday neither did his lawyer , vincent loughlin . the hudson_county prosecutor 's office has started a criminal investigation . as a result of reports of mario rivero 's injury , dr . ward is no longer practicing at two other offices , in vernon and in maywood , where he worked one day a week . but even as the state 's department of consumer affairs , which oversees the board that licenses dentists , reviews the matter , dr . ward continues to practice at children 's dental center in union_city , where he now works most of the week . since mario 's injury , hudson_county prosecutors said they had learned that dr . ward was sued in january by the family of an 8 year old girl who said he broke her wrist while she was having a tooth pulled in his vernon office several years ago . and state officials said dr . ward had his license suspended for a year in 1987 after a child under anesthesia died in his office . during a state hearing in that case , dr . ward admitted to ''a significant error in professional judgment , '' according to a transcript . the new jersey board of dentistry prohibited him from using general anesthesia unless he completed 60 hours of course work , but he failed to do so , according to jennifer salvato , a spokeswoman for the consumer affairs division . dr . ward is still allowed to administer local anesthetics . ms . salvato said the 1987 suspension was the only action the consumer affairs office had taken against dr . ward during his 16 year career in new jersey . no criminal_charges have been brought against him . in light of the rivero matter , the consumer affairs office is reviewing dr . ward 's license , ms . salvato said . edward defazio , the deputy first assistant hudson_county prosecutor , said it may be difficult to bring criminal_charges against dr . ward for mario rivero 's injuries because the only witness against him is a 5 year old . ''nobody is denying there was a fracture of the child 's leg , and that it apparently occurred when he was being treated by the dentist , '' mr . defazio said . ''the question is , 'is there sufficient indication of intent to make it a criminal case ? ' under the law , negligence is not sufficient state of mind for an aggravated_assault . '' the lawsuit against dr . ward in january was filed by cathy caliendieri of rockaway township for a 1996 incident in which her daughter , amanda schwab , then 4 , emerged from his vernon office with a broken wrist . when dr . ward came out of the treatment room with amanda , the girl said he had hurt her arm , her mother said . ms . caliendieri said dr . ward told her , ''we had a little problem , '' and explained that amanda would not hold still , so he had to hold her down . she said police officials who questioned dr . ward told her they would not file criminal_charges because they concluded that the child 's injuries were the result of an accident . in mario rivero 's case , his mother said that during the police officers' questioning of dr . ward , she learned he had worked on the wrong tooth . she said that her son was struggling because he was trying to tell the dentist . now mrs . rivero thinks she should have gone into the treatment room with her son . there are no regulations governing whether doctors and dentists must allow the parents of minors into the treatment room .

the world_bank said this week that an eight month investigation found no evidence to support allegations that a former russian representative at the world_bank passed confidential information to a russian commercial_bank in 1993 . the bank did conclude that the representative , leonid grigoriev , had established a business relationship with inkombank , which is now defunct , and that he received 13 , 000 for expenses from the bank in 1993 . a bank official said that while that relationship did not specifically violate bank rules , it was outside what the bank considers acceptable activity for one of its executive directors . mr . grigoriev 's actions were the subject of articles in the wall_street_journal , the new york times and other publications in the fall of 1999 . some of the articles , which examined an investigation into how suspect russian money flowed through the bank of new york , raised questions about inkombank 's operations . on oct . 22 , 1999 , the wall_street_journal reported that the world_bank was investigating mr . grigoriev 's ties to inkombank . the newspaper cited a memo purportedly written by mr . grigoriev to inkombank officials that discussed ways for the bank to profit from the russian bond_market . it reported that the memo was labeled ' 'strictly confidential'' and that it contained sensitive debt market investment advice . lending to russia by the world_bank and the international_monetary_fund , its sister agency , was considered crucial to the health of the local bond_market at the time . world_bank officials said that they began investigating mr . grigoriev only after the journal provided them with a copy of the memo . the times reported last january that the memo might have been a fake provided to the journal by emanuel e . zeltser , an emigre russian lawyer who became a source of information about russian money_laundering . the times report examined mr . zeltser 's role in spreading allegations about matters that were tangential to the money_laundering investigation . merrell tuck , a world_bank spokeswoman , said today that bank officials and an outside law_firm hired to lead the bank 's investigation were ''unable to authenticate'' the memo . therefore it found no evidence that mr . grigoriev gave sensitive information to inkombank while working at the world_bank , she said . mr . grigoriev left the world_bank in 1997 . when the world_bank began an investigation into his conduct last fall , he was put on leave from his job as director of the bureau of economic analysis , a moscow based research institute that receives world_bank funds . the bank said in a statement this week that the payments mr . grigoriev received from inkombank would ''prejudice against'' any employment he might seek at the bank itself for the next three years . but it said it now has no objections to mr . grigoriev 's resuming his post at the research institute . international business.

the strong relationship between robert_maxwell and goldman , sachs company has become a focus of investigation by british_government officials amid suggestions that goldman 's actions served to support the share price of the maxwell_communication corporation over a period of many months . a spokeswoman for britain 's serious fraud office , which is already investigating other aspects of mr . maxwell 's dealings , said today that it had received information from officials at the department of trade and industry that could lead to a formal inquiry into mr . maxwell 's transactions with goldman . " we 'll decide early next week , " she said . goldman issued a statement denying any wrongdoing . while saying that goldman , like many other investment_banking institutions , had financial dealings with mr . maxwell , it stated that " goldman , sachs did not manipulate any securities markets or improperly divert any company or pension assets . " despite this statement , several analysts and one former director of maxwell_communication expressed_dismay as the extent of goldman 's relationship with mr . maxwell emerged . maxwell_communication is one of the maxwell empire 's two publicly traded companies and owns some well known american businesses including macmillan inc . , the big new york publisher , and the official airline guides . its shares are traded only in london . jean_pierre anselmini , the former deputy chairman of maxwell_communication who quit two months ago , disclosed that his concern over mr . maxwell 's transactions with goldman had been an important reason for his departure . " i was kept in the dark about these transactions , and i was not happy about them , " he said . " but when i complained last year to mr . maxwell 's son kevin , i was told to mind my own business . " mr . anselmini added that eric sheinberg , a goldman partner who spends a lot of time in london , was a regular visitor to the offices of mr . maxwell and his son kevin and acted as the key goldman figure in the relationship . scrutiny of two options scrutiny has centered on two separate options on a total of 45 . 65 million maxwell_communication shares . these so called put options provided goldman with a guarantee that it could sell the shares back to the maxwell group for a set price at a later date irrespective of the market price of the stock . the first option , for 15 . 65 million shares , or 2.4 percent of maxwell_communication , was granted on aug . 14 , 1990 . the second , for 30 million shares , or 4.6 percent of the company , came in january of this year . because 68 . 1 percent of maxwell_communication is held by the maxwell family , these options effectively gave goldman a special interest in a large proportion of maxwell_communication 's traded shares over a crucial period of several months . arrangement seen as unusual " options can be bought , but not normally on the scale that went to goldman , " said john kenny , an analyst at barclays de zoete wedd in london . " i have personally felt for about a year that the maxwell_communication share price was largely controlled by mr . maxwell himself and goldman , sachs . " the august 1990 option , which gave goldman the right to sell 15 . 65 million maxwell_communication shares on nov . 30 , 1990 , for 185 pence each , or about 3 . 60 at that day 's exchange_rate , has proved particularly controversial . some analysts have argued that it amounted to a share support ploy devised by mr . maxwell to cover the period between oct . 1 and nov . 28 of last year , when he was barred by stock_exchange rules from buying shares in maxwell_communication . this two month period came between the closing of maxwell_communication 's half year results on sept . 31 and the announcement of those results at the end of november . a possible incentive goldman knew that if it owned 15 . 65 million shares on nov . 30 , 1990 , it could sell them to the maxwell group for 185 pence each on that date . thus , it had a possible incentive to buy maxwell_communication stock when it dropped much below that price . in fact , maxwell_communication traded as low as 130 pence during the august november period in 1990 , and stood at 155 pence on nov . 30 when goldman exercised the option , apparently making a substantial profit . goldman officials in london said they had reviewed the put option with british lawyers and had been advised that there was no restriction on such a deal and that it was not illegal . " we did nothing illegal or wrong , " one goldman official said . " goldman effectively allowed maxwell to purchase shares in a period he was not allowed to , " said derek terrington , an analyst at kleinwort_benson . mr . maxwell , who died on nov . 5 after falling from his yacht in the atlantic , had reason to be vitally concerned about maxwell_communication 's stock price . because he had pledged much of the stock to creditor banks as collateral on loans totaling 4 . 4 billion , any substantial fall in the stock price brought pressure from banks to provide more security or to repay the loans . caught in this squeeze , the maxwell empire collapsed beneath a welter of debt a month after mr . maxwell 's death . goldman stake at 7 . 5 in august goldman 's relationship with the maxwell group did not end with the second option , whose exercise date , goldman officials said , was feb . 15 . indeed , by august of this year , the company had acquired a 7.5 percent stake in maxwell_communication , part of it as collateral on a loan to mr . maxwell 's private companies of close to 50 million . that month , goldman said it had been in " technical breach " of british company law because it had not immediately disclosed this holding . from august onward , as it pressed mr . maxwell for repayment of the loan and grew increasingly skeptical about his companies' viability , goldman steadily sold maxwell_communication stock . among the sales were nine million shares on oct . 22 and 2.2 million shares on oct . 31 , five days before mr . maxwell 's death . holdings when maxwell died these large sales and others , which left goldman with about 24 million maxwell_communication shares at the time of mr . maxwell 's death , were about double the sales of last august , putting more pressure on the maxwell empire . indeed , maxwell_communication 's share price fell steadily during this period , and as it fell pressure mounted from the banks holding the stock as collateral . the stock slumped further after mr . maxwell 's death , to 35 pence when trading was suspended this month , but most analysts now believe the shares are virtually valueless because of the company 's overwhelming debts .

in a sign that the restructuring of corporate germany is gathering speed , munich re disclosed that it had doubled its stake in commerzbank and said it was looking to find the bank a new partner . munich re increased its stake in commerzbank from 5 to 10 percent , and it said it wanted to secure its interest in the consolidation of germany 's banking industry . commerzbank has been struggling with low profits and has been under pressure from investors to merge with a larger institution . its shares surged 11 percent at one point because of expectations that munich re wanted to marry off commerzbank . munich re , the world 's biggest reinsurer , owns 25 percent of germany 's second largest bank , bayerische hypo und vereinsbank . under a law that took effect jan . 1 , companies can sell their stakes in other enterprises without having to pay capital gains taxes . munich re is one of several large german financial_institutions that are eager to sell holdings that they acquired decades ago and are now worth billions of dollars . edmund l . andrews ( nyt )

lead this is the coldest , nastiest place in america to do business , a place where it can snow on the fourth of july and where even now the only sign of spring is that snow by the roads is beginning to turn brown from dust . this is the coldest , nastiest place in america to do business , a place where it can snow on the fourth of july and where even now the only sign of spring is that snow by the roads is beginning to turn brown from dust . but for american oil producers , the north slope is also the single most important place . its fields will produce more than 15 billion worth of oil this year , a quarter of american production . and while public attention since the march 24 spill in prince william sound has lately turned to the tanker fleet at the other end of the 799 mile trans alaska pipeline , that is a minor business compared with the major industrial operation here on the north coast . the jobs here , while financially rewarding , require many sacrifices not only long hours in deadening cold with little outside stimulation , but also an abstinence from alcohol . so workers chafe at the idea that the exxon_valdez accident may have involved the use of alcohol by the captain . grounds for dismissal ''for simple possession you lose your job'' on the north slope , said steven d . taylor , the manager of environmental and regulatory affairs at bp exploration , a subsidiary of british_petroleum . ''what was the fool thinking ? '' deadhorse is a dry town , and when oil company charter flights bring employees here for jobs that can easily pay 60 , 000 a year , equipment for searching a tourist 's bags for weapons is used instead to hunt for bottles . alcohol is barred as a safety measure and to prevent brawling , which was common among construction workers when the pipeline was being built . but abstinence is by no means the only concession to be made here . to produce oil from under the tundra requires struggling through a_10 month winter to keep people and equipment from freezing and breaking down . everything must be kept warm , right down to the sewage . ''just about everything gets to be a challenge when you do it up here it 's pretty miserable , '' said byron v . dotson , production manager at bp exploration , the largest producer at prudhoe_bay , the oilfield for which deadhorse is the service center . many companies own a share of the production here , but the major operators are british_petroleum and arco . mr . dotson described a place where outdoor workers must wear gloves 9 or 10 months a year and where it is sometimes so cold that safety officers advise against wearing contact_lenses , because they can freeze to the eye . those days are past , probably , for the summer . at this time of year the sun is up before 6 a.m . and it is still light after 10 p.m. , with each day about seven minutes longer than its predecessor . for workers who were here in the 56 days without sun , this is a sure sign that the fleeting but treasured summer is coming . a balmy 20 degrees in this season , the afternoon temperature can reach a balmy 20 degrees , and if the wind is not too stiff , the north slope is no worse than new york in a typical december . and it is not much worse than much of the rest of the state , from which it draws a good part of its work force . ''a person 's got to go where the work is , '' said floyd l . howard , a laborer , his mustache covered with a coat of ice as he helped install insulation on a pipe that carries petroleum liquids at a plant that separates oil from gas , water and other substances that come out of the wells . mr . howard , 34 years old , said that he had had an excavation company near anchorage but that the work had dried up in the economic slowdown that followed the collapse of oil prices in 1986 . while people here dress carefully , they try not to let the cold limit them . flying over the frozen terrain between deadhorse and barrow , for example , flight_attendants on markair 's 737 jet serve passengers cold drinks and haagen_dazs ice_cream bars . sewage pipes above ground but setting up shop in this environment produces curious problems . sewage pipes , for example , must be run above ground . if they were buried in the permafrost they would freeze or , worse , the permafrost would melt , undermining the piping . the pipes must be heavily insulated and heated by electricity to keep them from freezing , and they must be pressurized , because they run up and down to cross roads . and at the sewage treatment plant , water must be kept at 75 degrees_fahrenheit to allow bacteria to break down the wastes , even when the temperature outside is 75 below , as it was for three weeks in january and february . much of the drinking_water is trucked from lakes miles away , to save heating a supply pipe . the water must be kept in a heated tank . cumbersome and expensive though the system is , it makes prudhoe_bay one of the few places in the arctic with indoor plumbing . but the water plumbing is just an auxiliary challenge to the problem of moving oil . keeping oil flowing oil comes out of the ground here at an average temperature of 155 degrees , but must run through miles of above ground pipe . so for each of hundreds of wells , engineers have calculated how long it would take for the pipes to freeze if the flow were interrupted . the timing takes into account the water oil natural_gas mixture produced by each well , and the length of piping . if a freeze up is imminent , oil can be flushed back into the wells and the pipes filled instead with methanol or natural_gas . the pipes , pumps and hydraulic equipment are more vulnerable than the people who run them , engineers here say . somewhere around 40 below zero , for example , hydraulic fluid becomes simply too thick to pump , so drilling stops . but if the wind is not bad , workers can function when it is even colder . some work spaces that are outdoors anywhere else are enclosed here . a visit to a drilling rig can mean a walk through rooms of hot and noisy heavy equipment , and then through a doorway into a white blanket of blowing snow . unexpected risks cold is a given in alaska , but there are also unexpected risks here , like fat and cholesterol . the reason is that employers , trying to keep their workers happy through long periods of isolation , lay out a daily banquet . dinner at the bp cafeteria one recent evening was prime rib au jus a ''baked potato bar'' with sour cream , fresh chives and other condiments a cold pea and shrimp salad in mayonnaise , and other tempting dishes , followed by a fix it yourself sundae . a snack bar with fruit , doughnuts , cookies and sandwiches is open 24 hours . but the cafeteria also offers a low cholesterol alternative and a table of literature on the subject , and in the operations center here , a combination dormitory and office , a scale sits prominently in the hallway , beside a plaque announcing the north slope lean mean award . last year 's winner , chuck wyatt , lost 54 pounds , or 21 . 2 percent of his body weight , the plaque says . 8 , 000 calories a day eating helps to keep outdoor workers warm , said max fernandez , a drilling supervisor . ''we eat about 8 , 000 calories a day more rich food you ca n't imagine , '' said mr . fernandez , who came to alaska 23 years ago from chile . ''eating is about all you 've got to do , '' said charlie felts , an oil service company employee who works here seven days a week for three weeks , sometimes around the clock , and then returns home to fort_worth for three weeks . in two years on that routine he has put on 30 pounds . food is a cheap fix for the privations of the north slope bp estimates its grocery bill at about 10 per person per day , and its total bill for food preparation , housekeeping and similar expenses is about 32 . for those who do not work for the major oil companies and live in company dormitories , the only housing in the area is two ''hotels'' in deadhorse , with a total of 420 rooms , most of them furnished with two single beds and dressers that can be closed with a padlock . this is not quite a real town there are virtually no permanent residents and no private vehicles . the hotels are prefabricated trailer units where signs insist that residents remove oily boots before entering and the communal bathrooms offer borax soap . they are less plush than the oil company accommodations . small companies put their employees up at the hotels , both owned by a native company , which collects 80 a night from casual visitors and 60 from those here for a longer_term . the price includes food and use of a sauna , weight room and pool table . virtually no one is here more than four weeks at a time . most oil company employees work 12 hours a day , seven days a week , for one to three weeks , and then are flown by chartered jet to fairbanks or anchorage for comparable time off . employee turnover is low , and most people here say they like being at their industry 's most important site and having long blocks of time off . they also like the money . base pay is about the same as in anchorage , but with overtime hourly workers can earn 70 percent more here . a secretary who makes 28 , 000 in anchorage can make 48 , 000 here . many oilfield workers earn 60 , 000 a year . and saving is easier because there is little to spend on while at work . but there are strains . even with the rules about use of liquor , three alcoholics anonymous chapters meet in deadhorse . and it is so cold here that workers who do not need to go outside sometimes spend their entire one week shift indoors . the work schedule and the environment appeal to some people . ''they say there are two kinds of people those who love alaska , and those who hate it , '' said susan miller , a spokesman for bp . ''and you know when you get off the plane which one you are . ''

for global broadcasters , the slow deregulation of european television and telecommunications means it is just a matter of time before a vast , lucrative market opens to all comers . germany in particular , with an audience of 80 million , with ad revenues of almost 4 billion ( among the highest growth rates of any media market in europe ) , with a relatively high percentage of cable subscribers and a tradition of poor local programming , is the ultimate prize . no wonder capital cities abc and the nbc network of general_electric which announced yesterday it would begin a european version of its cnbc business channel early next year are interested in investing here . but one german investor is determined to keep europe 's broadcast industry european . his name is leo_kirch . hardly known outside the country hardly known inside germany , in fact mr . kirch , 68 , has recently emerged as the dominant force in german broadcasting . seven years after investing in his first german television_station , sat . 1 , this intensely private son of a bavarian vineyard owner has a degree of control over german publishing and broadcasting that rupert_murdoch might envy . although his privately_held_company , the kirch group , does not release sales or profit figures , media analysts here estimate its sales approach 4 billion a year . it is entirely owned by mr . kirch . sat . 1 has the second largest audience of germany 's three dominant commercial channels . ( rtl , which is controlled by the publishing and broadcast company bertelsmann a.g . and a luxembourg media consortium called clt , is no . 1. ) mr . kirch 's 37 year old son , thomas , separately controls the third major commercial channel . the elder mr . kirch also has holdings in the country 's leading sports channel and the only pay_per_view cable channel in germany . his control has evolved gradually in the decade or so since the german_government first decided to end the state monopoly on television ownership while writing strict regulations to insure that no single individual would have too much control . mr . kirch may have been the kind of investor they had in mind . his control is extensive exactly how extensive is a matter of some dispute and he has also accumulated holdings far beyond germany 's borders . he has invested in cable broadcasting channels in italy , spain and switzerland , and has paid to reserve a large transmission capacity on three european communications satellites to be launched before 1999 . once bertelsmann , the giant publishing house , was the name associated with dominance in german broadcasting . but no more . " at this point , bertelsmann is a minor player in german television compared with leo_kirch , " said klaus ott , a reporter for suddeutsche_zeitung , who has been covering the kirch group and german media for years . mr . kirch has not given interviews since the late 1980 's , after what he felt was a misquotation by a german newspaper saying he wanted to establish a television monopoly . so while he spends workaholic hours in his office on the outskirts of munich , he speaks to the world only through his chief aides . " he really does n't see a reason why what he says is so important , " said jan mojto , managing director of the program division of the kirch group and one of mr . kirch 's closest associates . mr . mojto and other aides say mr . kirch 's aim is to protect the german market from becoming dominated by outsiders , particularly americans . they say he is worried about giant media conglomerates with deep pockets , like general_electric , the corporate parent of nbc , or the new giant emerging from the union of disney and capital cities abc . " he knows it will take large amounts of money and big size companies to compete with these giants , " mr . mojto said . so while he has been consolidating control of german broadcasting , mr . kirch has also developed a close alliance with italy 's former prime_minister , the media mogul silvio_berlusconi . kirch aides talk in terms of a kirch berlusconi alliance that would create a european broadcasting concern large enough to compete with the american giants on european turf . there is one more arrow in mr . kirch 's quiver , in addition to the sheer size of his holdings and his alliance with mr . berlusconi . call it content . european analysts have predicted that dominance in european television will go to the company with the best programming . and mr . kirch , who 40 years ago began trolling los_angeles for the german and european rights to hollywood films , now owns broadcasting rights to the largest library of movies and television programming in europe . among the contents are 15 , 000 movies , including some of the most popular german_language movies and the complete laurel and hardy archive , and 40 , 000 hours of sitcoms and other television_series including " star_trek " and " baywatch . " these facts are not comforting for those who watch mr . kirch from government regulators' seats or from the offices of his competitors . as far as they are concerned , this recluse from munich has a distinctly dark side . german regulators in dusseldorf and berlin have gone to court contending that mr . kirch has secretly circumvented laws limiting how much control of german television outlets can be concentrated in one owner 's hands . earlier this summer , a court ruled for mr . kirch , saying the charges were not proven . helmut thoma , head of germany 's largest private television_station , rtl , has said mr . kirch seeks " absolute power . " others are nervous about his willingness to promote his conservative political agenda , and some financial analysts contend that sat . 1 lavishes favorable attention on chancellor helmut_kohl . last year , before the national elections , sat . 1 offered almost four times more air time to mr . kohl than to his social_democratic opponent . among other coverage , sat . 1 held a regular forum for mr . kohl , called " zur sache , kanzler " , or " to the point , chancellor , " at which mr . kohl fielded softball questions from sympathetic journalists . opponents say those whose beliefs conflict with mr . kirch 's are at risk . earlier this month , the editor of die_welt , one of germany 's largest national dailies , wrote approvingly of a bavarian high_court decision to outlaw the display of crucifixes in classrooms . mr . kirch , a major investor in axel_springer verlag a.g. , the newspaper 's parent company , demanded the editor 's immediate dismissal . the result so far is a standoff the editor still has his job , but it is not clear for how long . most criticism of mr . kirch , however , has centered on the question of exactly how much of germany 's broadcast properties he controls . german law restricts ownership by a single individual to 49 . 9 percent of a television_station . mr . kirch 's personal holdings in sat . 1 are 43 percent . but axel_springer , in which he owns a 35 percent stake , owns another 20 percent of sat . 1 . regulators and rivals believe mr . kirch exerts influence over the station his son controls , pro 7 , which in turn controls part of a cable channel , kabelkanal . and they worry about the kirch berlusconi ties , fearing that mr . kirch is a acting as a passive holder of berlusconi stock in four italian stations and that mr . berlusconi is doing the same for mr . kirch with the media assets he owns in germany . " here is a man whose holdings are vast and much of it is hidden , " said runar woldt , research director of the european institute for media in dusseldorf . " you just do n't know how much he has . but it 's a lot . " all this is dismissed by mr . kirch 's associates as attempts by business rivals to limit the growth of the group . " there is a lot of hypocrisy by our competitors , " mr . mojto , mr . kirch 's top aide , said . mr . kirch has prevailed in the regulators' lawsuit against him . and he is losing little time in expanding his position . in july , mr . berlusconi had to sell a major stake in the three italian television stations owned by his fininvest empire so he could clear the way for his return to italian politics . mr . kirch stepped in and put up 600 million for a_10 percent stake in fininvest 's mediaset subsidiary , which owned the stations . this investment , combined with those of italian bankers and saudi and south african businessmen , took care of mr . berlusconi 's problem . profits and size do not seem to be mr . kirch 's only preoccupation . he is spending 140 million to produce a series of made for television movies based on the bible , including more than a dozen 90 minute episodes . " much of the next generation will learn from the television media , and mr . kirch sees this as one way of transferring what is in the book to them , " mr . mojto said . " and it 's also an issue of doing the right thing . if you do things like " baywatch " and make a lot of money , then you should do something like the bible project . "

yen strengthens . the yen rose in anticipation of dollar sales by japan 's central_bank tomorrow when tokyo releases details of its economic stimulus plan . in new york , the dollar fell to 130 . 28 yen from 131 . 35 .

lead the securities_and_exchange_commission , ending years of vagueness , today spelled out a definition of insider_trading . the securities_and_exchange_commission , ending years of vagueness , today spelled out a definition of insider_trading . the regulatory_agency proposed language for congress to use in writing a law that would state precisely the circumstances under which it would be illegal to use confidential information to profit from securities trading . a definition has been deemed crucial because of the recent insider_trading scandals on wall_street . congress is already considering other definitions . the s.e.c . has traditionally enforced commonly accepted notions of insider_trading that have evolved through court interpretations of the anti fraud provisions of federal securities laws . a typical case might involve an officer of a company who trades on information not yet available to other investors . today 's definition maintains that standard view . excerpts , page 34 . but the agency has also tried to prosecute other cases involving issues with which the courts have been grappling as wall_street has been swept up in a frenzy of takeovers . among those issues are the definitions of who is an insider and what constitutes inside information . one issue , arising from the case of a financial news reporter , r . foster winans , raises the question of whether a person not directly associated with a company can be guilty of insider_trading in that company 's stock . another involves the rules governing the conduct of wall_street speculators , such as ivan f . boesky , who are not directly tied to one company but who buy and sell stock based upon information about takeovers and other corporate restructurings . perhaps the area of greatest uncertainty in enforcement comes in cases like these , when the traders are not corporate insiders such as officers and directors but still have information not available to others . the s.e.c . has steadfastly asserted that these people , whether printers , reporters or brokers , are insiders . but the supreme_court has not yet decided whether existing rules support this view . the s.e.c . had made this assertion in a theory called ' 'misappropriation . '' it holds that it is illegal to steal information from a person 's employer even when the employer is not the company whose stock is trading . the word misappropriation does not appear in the s.e.c . proposal , though the agency maintains that the concept is there . but some legal experts suggested that the omission might mean the s.e.c . was backing off from the theory , about which legal_opinion is sharply divided . the supreme_court is expected to examine this standard for the first time this term in the case of mr . winans , a former reporter for the wall_street_journal . mr . winans was accused of misusing his knowledge about articles that would be appearing in the newspaper . a mention of a company in a business publication often causes movement in that company 's stock . the standard was developed by the s.e.c . after the supreme_court ruled in 1980 that a printer , raymond chiarella , had not committed illegal insider_trading by piecing together information about tender offers from financial documents , and then trading on that information . while the supreme_court has never ruled on the validity of the misappropriation standard , it has been adopted by some lower courts , including the court of appeals for the second circuit in new york . ''it 's by no means clear whether winans and some other difficult cases are picked up by the definition , '' said harvey j . goldschmid , a professor of corporate_law at columbia_university . today 's move is a break from the s.e.c . 's unwillingness to define insider_trading . for years , the agency maintained that a definition might be useful to defense attorneys looking to evade the law . but several legislators , in the wake of the scandal and perceived abuses on wall_street involving attempted takeovers , have proposed a definition , along with other reforms . and the s.e.c. , concerned that congress may soon adopt a definition , decided to propose one of its own . under the s.e.c . definition , a person is engaged in illegal trading if he ''knows or recklessly disregards that such information has been obtained wrongfully or that such purchase or sale would constitute a wrongful use of such information . '' wrongfully is defined as theft , bribery , misrepresentation , electronic espionage , and most important , breach of any ''fiduciary , contractual , employment , personal or other relationship . '' the s.e.c . is thus tying breach of duty directly to this array of relationships . divisions in the senate several senators have argued that congress should wait until after the supreme_court issues its opinion in the winans case , which is expected next spring , before taking final action on either defintion . but donald w . riegle_jr . , democrat of michigan , who is chairman of the banking committee 's subcommittee on securities , asked for the definition and said he intends to press ahead with legislation . it is not clear how much support a definition will get in the committee . any senate bill will also have to be accepted by john d . dingell , democrat of michigan , the chairman of the house energy and commerce committee who remains opposed to defining insider_trading . pick up add insider pick up add insider the s.e.c . is also trying to close loopholes in existing case law . one such gap required the s.e.c . to prove that a trade was made ''on the basis'' of illegal information . many defendants claim that their trade was made using information that was commonly available . the new proposal would say simply that no one can trade while in the possession of illegal information , whether or not that is the basis for the decision to invest . 'completely unbelievable' ''we see so many arguments that are completely unbelievable arguments that trading was based on a report that someone read six months , a year ago , rather than on the basis of information acquired recently , '' said charles c . cox , a commissioner of the s.e.c . another loophole involves giving tips to other people . the commission now has to prove that someone who passed such information did so in anticipation of receiving personal benefit . the new definition would eliminate that provision . ''there have been some cases , i think particularly in recent months , where we have had a concern as to whether or not we could satisfy the personal benefit test'' said gary lynch , head of the s.e.c . 's enforcement division . insider_trading s.e.c . 's definition following are excerpts from the securities_and_exchange_commission 's proposed insider_trading act of 1987 . it shall be unlawful for any person , directly or indirectly , to purchase , sell , or cause the purchase or sale of , any security while in possession of material nonpublic information concerning the issuer or its securities , if such person knows or recklessly disregards that such information has been obtained wrongfully or that such purchase or sale would constitute a wrongful use of such information . for purposes of this section , information is obtained or used wrongfully if , directly or indirectly , it has been obtained by , or as a result of , or its use would constitute theft , bribery , misrepresentation , or espionage through electronic or other means , or a breach of duty to maintain such information in confidence or to refrain from purchasing , selling or causing the purchase or sale of , the security , which duty arises from any fiduciary , contractual , employment , personal or other relationships with a . the issuer of the security or its security holders b . any person planning or engaged in an acquisition or disposition of the issuer 's securities or assets c . any government or a political subdivision , agency or instrumentality of a government d . any person or any self regulatory organization registered or required to be registered with the commission e . any person engaged in the market for securities or the financial conditions of issuers f . any such person that is a member of a class that the commission designates by rule or regulation where the commission finds that the activities of the members of such a class have a regular nexus to the operation of the nation 's securities markets and that such designation is necessary or appropriate to effectuate the purposes of this section or g . any other person who obtains such information as a result of a direct or indirect confidential relationship with any persons or entities referred to in paragraphs a f above .

as american_forces pressed new attacks on guerrillas loyal to moktada_al_sadr , the interim iraqi government ordered mr . sadr to surrender immediately or face an attack on his headquarters at the shrine of imam_ali . in an overnight assault , marines attacked a building in the inner ring of najaf 's old city , less than 400 yards west of the shrine . the assault was the first time that american_forces had tried to take and hold ground inside the inner ring , instead of simply attacking and leaving . iraqi soldiers took a tentative step into the battle on tuesday , beginning mop up operations in the judaada neighborhood south of the shrine , which had already been cleared of insurgents by american_soldiers . among the iraqis deployed were soldiers from the 36th national_guard battalion , an 800 man unit drawn from the best militia fighters among the major iraqi political_parties . although the americans are still doing almost all the fighting here , the interim iraqi government has said repeatedly that only iraqi forces will be allowed to attack the shrine . in baghdad , two government ministers were the targets of bombings less than an hour apart on tuesday morning that killed at least five bodyguards and wounded several bystanders . the officials , education minister sami al mudhaffar and environment minister mishkat moumin , were not hurt . in the first attack , an explosives packed car slammed into mr . moumin 's convoy as it left a government compound . in addition to the driver of the car , the explosion killed four bodyguards and wounded at least two bystanders . soon after , a roadside_bomb exploded in the western district of al khudra as mr . mudhaffar 's convoy passed . one bodyguard was killed and two others were wounded , but the minister was not in any of the vehicles at the time of the attack . in a statement posted on an islamic web_site , a group linked to abu_musab_al_zarqawi , a militant who is accused of being an organizer for al_qaeda and who is believed to be hiding in iraq , took credit for the car_bomb attack on the environment minister , the associated press reported . on tuesday , defense minister hazim al shalaan again called on the insurgents in the mahdi army , mr . sadr 's militia , to give up the shrine and surrender their weapons or face an imminent attack . ''they have a few hours to surrender , '' mr . shalaan told al_arabiya , an arabic_language news channel . foreign_minister hoshyar_zebari echoed that resolve , saying , ''we will not waver , '' and adding that the credibility of the government was at stake . but he reiterated the recent promise by prime_minister ayad_allawi that mr . sadr could join in the country 's fledgling democratic process if he were to disarm his militia . as the pressure mounted , the mood of mr . sadr 's supporters in najaf was grim . in a news conference on tuesday , ali smeisim , an aide to mr . sadr , said mr . sadr 's good intentions had been thwarted . in the lobby of the sea of najaf hotel , a building several hundred yards behind the american lines that has been home to western and arabic_language journalists , mr . smeisim recited a litany of what he called deliberate efforts by dr . allawi 's government to block mr . sadr 's peace efforts . reading from his list , mr . smeisim seemed like an unhappy man , one who feared that mr . sadr and his militia may not survive . ''this government wants to fool us by killing or arresting moktada_al_sadr , and they want to insult sadr 's movement , '' he said . ''now , we are saying it very clearly , that we are ready for negotiations . '' with that , he stood up , waved away questions and disappeared into najaf 's streets . just a week ago , mr . sadr felt confident enough to turn away a delegation that had traveled from baghdad to najaf to meet him and mediate an end to the standoff . since then , dr . allawi has authorized steadily increasing attacks by american_troops , drawing the ring tighter around mr . sadr 's insurgents and pushing closer to the shrine . now the insurgents appear weary and overmatched by american tanks , artillery and air power . some guerrillas have fled , and american commanders here say they believe that they are close to breaking the will of the remaining insurgents . in the past 10 days , the army battalion fighting in southern najaf has reported killing several hundred of mr . sadr 's forces while having only two soldiers seriously wounded and no one killed , said maj . tim karcher , the battalion 's operations officer . ''they know we 're coming , and they have to feel relatively incapable of stopping us , '' major karcher said . ''they see us coming every day . '' around the shrine , mr . sadr 's guerrillas seemed to be preparing for a final battle . overnight , supporters had erected a makeshift barricade of shelves , metal carts used by tea peddlers and oil barrels to protect themselves against american snipers a few hundred feet away . guerrillas ducked sniper fire as they ran to the shrine 's entrance . and a steady flow of wounded men entered the shrine 's makeshift hospital on long flatbed vegetable carts . two others were killed , their bodies wrapped in light colored sheets in preparation for burial . but ahmed al shaibani , a senior aide to mr . sadr , insisted that the rebels were winning . ''the war has developed and changed and the americans know that , '' he said . ''we have full control . '' iraq rejects iranian summit idea ( by the new york times ) , baghdad , iraq , aug . 24 mr . zebari , the iraqi foreign_minister , on tuesday rejected iran 's call last week for a regional summit meeting over the fighting in najaf . ''we regard this as an internal affair between the iraqi state and outlaws , '' he said at a news conference . ''we will not welcome any effort to internationalize or regionalize it . '' while ruling out any outside mediation or interference , mr . zebari sought to convey a conciliatory message to the government of iran . ''we are reaching out to iran , trying to engage them positively , '' he said . the government has decided to send a delegation to iran soon , he said , ''to explain our position and to encourage them to play a constructive role . '' the reach of war the insurgents.

the raytheon company , already basking in the success of its patriot_missiles , announced record sales and earnings today for the sixth straight year . employees of the 9 billion military contractor will have little time to celebrate though , because the government asked the company today to step up production of the anti missile missile system to support the war in the persian_gulf . col . bruce garnett , the army 's program manager for the patriot in huntsville , ala . , said that the military had a considerable number of the missiles but that " more is better than less in this kind of business . " colonel garnett insisted that the request did not indicate a crisis in the number of missile systems available and declined to say how many patriots were ready to be used . to comply with the army 's request , raytheon is postponing production of 300 patriot_missiles ordered by saudi_arabia on dec . 31 . colonel garnett said raytheon and subcontractors like martin_marietta would be running round the clock shifts to accommodate the increase in production . amid the euphoria about the patriot 's performance , raytheon announced profits of 557 . 3 million on sales of 9 . 3 billion , an increase on both counts of 5.4 percent over the previous year . although the military electronics business accounted for 5 . 5 billion of the company 's sales , raytheon has an extensive commercial side as well , selling , among other things , beech aircraft and amana refrigerators . on the new york stock_exchange today , raytheon 's shares rose 4 . 50 , to 74 . 625 . after its stunning performance over the weekend , the patriot is being lauded as the ultimate high technology weapon . the world 's only combat tested anti missile missile , it knocked out a single iraqi scud_missile aimed at dhahran , saudi_arabia , on friday morning , but that was only a preview of things to come . on sunday_night , patriot_missiles intercepted 9 of 10 approaching scuds , according to the united_states command , with the 10th falling harmlessly in the sea . in addition , the united_states military rushed several patriot systems to israel to protect that country from a repeat of iraqi missile attacks that struck in downtown tel_aviv and elsewhere last week . the arrival of the patriot_missiles , along with american military personnel to operate them , reportedly helped persuade israel not to begin an immediate counterattack against iraq . " the patriot is an amazing story , " said lawrence korb , a senior fellow at the brookings institution and a former raytheon executive . " everyone seems surprised because it is doing what it is supposed to do . " largest multiyear contract in fact , neither raytheon nor the army is surprised . colonel garnett said the defensive weapon , when tested against approaching tactical missiles like the scud , shot down 15 out of 15 . the military , in fact , is so convinced of the patriot 's potential in battle that it awarded an unprecedented five year , 4 billion contract for the system to raytheon in 1987 , the largest multiyear contract ever awarded by the government . colonel garnett said the patriot_missiles cost 600 , 000 each and that an entire system , including the launcher and other ground equipment , cost 50 million to 55 million , " the patriot_missile is going to become the new gold_standard of international defense , " said wolfgang demisch , an analyst with u.b.f . securities in new york . mr . korb estimated that the united_states should have about 4 , 000 patriot_missiles by 1992 and said the government was asking raytheon to speed up production of the existing contract , not ordering more . the patriot system did not have an easy birth . early work , based on raytheon 's expertise with the hawk anti aircraft missile system , began in the late 1960 's . by the mid 1970 's , the system was almost ready to go into production when then secretary of defense james schlesinger decided to cancel it . only intense lobbying by raytheon 's president at the time , d . brainerd holmes , and representative thomas p . o'neill jr . of massachusetts saved the project . antiaircraft capability according to colonel garnett , the patriot was originally designed to follow the hawk , intended to be an anti aircraft missile . in late 1986 , the system was modified to add an anti tactical ballistic missile capability . although it is not being used for anti_aircraft operations in the gulf , it still has that capability . for raytheon , the patriot_missile is the company 's biggest moneymaker , bringing in 1 . 5 billion in revenue in 1990 alone . orders have already come in from saudi_arabia , germany , italy and japan and with the prime time display of its accuracy , more orders can be expected . mr . demisch lauded the company for its diversity , saying this would serve raytheon well as military budgets tighten . " raytheon has been , in a real sense , the company with the longest vision in the defense industry , " he said .

following are excerpts from an interview on friday with john_kerry and john_edwards on mr . kerry 's campaign plane . a full transcript is online at nytimes . com campaign . q . in light of thursday 's senate_intelligence_committee report , knowing what you know now , would you have voted differently on the war ? mr . edwards i think what we know from the intelligence report , there are several things . one is that the al_qaeda hussein connection was not there . i did not believe there was a strong al_qaeda saddam_hussein connection i never believed that . my view is that what george_bush has done in iraq , both in the lead up to the war and more importantly his planning for winning the peace , has cost america dearly , and cost the possibility of success dearly . and i think that 's our focus , for purposes of the kerry edwards administration , is what we would do , given the situation that we 're now in . so trying to go back and re evaluate what we would have done , had we had , hypothetically , had this information or that information , is not useful to us now . q . how have your discussions with senator edwards since march changed or modified your positions ? mr . kerry they have n't changed or modified . the most important thing because i had exhaustive research done on a number of people , and i spent a long time reading through those issues of each person i was considering and evaluating , so we did n't need to spend a heck of a lot of time talking about how many forums did we do ? thirty one debates ? the conversations are really about a relationship , about a mutual understanding of the role of the presidency and how we can be a team , and about values , about what matters to us personally . it was more a question of coming together in that regard . mr . edwards and coming to the conclusion that we believe in each other . q . in a poll we did recently , we found that a majority of americans thought that because of the administration policy on iraq , the chance of a terrorist attack had grown . do you guys agree with that ? mr . kerry i believe that the overall conduct of this administration 's foreign_policy the war included , the management of afghanistan , the diversion from afghanistan , away from al_qaeda , the lack of cooperation with other countries , the lack of adequate attention on homeland_security , all together has not made america as safe as we ought to be given the options available to us in the aftermath of 9 11 . q . that 's too mushy . are we more or less vulnerable to a terrorist attack ? mr . kerry look , because i did n't answer your question the way you want me to does n't mean my answer is too mushy . what i said is very clear . that there are a whole series of events that have not made america safer . mr . edwards the way he answered that question , the way john just answered that question , is the way the question should be answered . because things do n't fit into boxes in this world . any more than the things that affect american families here at home fit in boxes . you know , it 's not health_care , and then in another box jobs , and then in another box tuition they all come together to affect the lives of americans . it 's also true that when you 're evaluating what the effect has been of this administration , you ca n't look at iraq in isolation , because iraq acts in concert with what 's happening in afghanistan , what 's happening with the war on terrorism in general , what 's happening with the deterioration of our relationships around the world , all those things go together in order to evaluate what the impact is . i do not believe we are as safe as we can be , that 's what i believe . mr . kerry can i tell you why ? the fact that what 's happened in iraq may have created more terrorists does n't mean they 've gotten to the united_states , does n't mean they have the ability to attack us . those are very that would require the briefing that i 'm waiting to get this weekend , for me to ask a lot of questions . the likelihood is , yes . it certainly has increased the recruitment of terrorists and the focus on the united_states as a target . q . do you think dick_cheney is too powerful a vice_president ? mr . edwards i 'm focused on what our relationship 's going to be . i 'm not interested in talking about theirs . q . who are your role models for vice_president ? or , tell us three vice_presidents and some aspect of how they did the job that you want to emulate . mr . edwards well , the most recent example is the relationship between president_clinton and vice_president gore . which from the beginning was a relationship where they were close , they talked often , they consulted on a whole range of issues that affected the country . and the vice_president was given responsibility , vice_president gore was given responsibility for particular areas . the reality is that both of us trust each other . q . ( to mr . edwards ) did you do a lot of reading about vice_presidents ? mr . kerry can i comment , just quickly , if i may ? the reason i 'm going to comment is because john and i talked about this , specifically , and the truth is that the vice_presidency prior to walter_mondale and jimmy_carter was almost , you know , nonexistent as a relationship . that was the first time the vice_president was moved into the west_wing . literally , every presidency since then , the vice_presidency has been evolving . john and i talked very specifically about our wanting it to evolve to a stronger and the most effective relationship that has existed to date . but i particularly find fault in the relationship between this vice_president and president , particularly , and that will not be our model . the 2004 campaign.

the great russian bear the investor variety has turned into a bull . the price of the most widely traded type of security here , the vouchers issued to all citizens for purchasing shares in state owned enterprises that are being privatized , has more than quadrupled on the two largest exchanges in the last several months . in the last week alone , the price has more than doubled , and today the vouchers traded as high as 32 , 000 rubles , or about 27 each , according to igor smolkin , the financial director of alfa kapital , one of the nation 's largest investment funds . rite of passage as russia 's first bull market , the sharp price rise is another rite of passage in the nation 's shift away from communism and an unusually optimistic one . it has been driven in part by a belief among traders and investors that russia 's ambitious but halting privatization program will move ahead forcefully after president boris n . yeltsin 's bloody victory last month over his opponents . it was also pushed by the start of a new phase of the privatization program , under which stakes in the largest state owned enterprises are being auctioned . last week , for example , saw the first sale of a stake in a big oil and gas producer , yuganskneftegaz , which offered 12 percent of its shares to the public . under the privatization program , a percentage of shares in each company is publicly auctioned , and they can only be bought with the vouchers . " many russian industrialists are beginning to sell the shares and the real_estate they hold in the west , so they can invest more in russia , " mr . smolkin said . " they 're buying vouchers so they can buy shares . " the scramble for vouchers among investors on the market has become particularly frantic because many of the 144 million vouchers issued to individual russians a year ago have already been redeemed to purchase shares in companies . by some estimates , only 30 percent to 40 percent of the vouchers remain in circulation . " the events of october have had a really big influence here , " said igor a . akifiev , the operations manager for the central russian universal exchange , one of the two big markets in moscow where vouchers are traded . " before , there was always a lot of uncertainty . now that it 's clear that privatization is going ahead , there is strong demand and a limited number of voucher checks are available . " as sharp as the price rise has been , it is in some ways misleading . the vouchers , one of which was issued to nearly all of russia 's 150 million citizens slightly more than a year ago , have a nominal face value of 10 , 000 rubles , which at the time the program was formally begun 13 months ago was equivalent to about 40 . the vouchers sank to as low as 4 , 000 rubles in trading soon after they were issued . until late summer this year they were selling for around 7 , 000 rubles . but , given the ravaging effects of inflation , the current value of the vouchers , measured in dollars , remains well below what it was at the time they were issued . still , in a country where pessimism often seems to be the national mood , the burst of optimism on the voucher market has been welcomed by mr . yeltsin 's government as a sign of confidence in its economic_reform . by june 30 , more than 60 , 000 of russia 's nearly 200 , 000 state owned enterprises had been privatized , though most of them were small or midsize operations . by july , 20 percent of all industrial workers were employed in privatized companies . while many enterprises have been technically removed from state control , there has been little change in management or business strategy . and relatively few companies have taken steps to prepare for the ruthlessness of the market_economy . moreover , it remains difficult for investors to get much meaningful information about the companies . last week , mr . yeltsin issued a decree directing managers to release more information about companies' financial condition . but with many managers seeking to entrench themselves often with the support of workers fearful of change it is unclear how effective the decree will be . at the central russian universal exchange this morning , there seemed to be little concern about privatization itself . instead , a throng of several hundred professional traders , bank and investment fund representatives and private individuals watched as an auctioneer sold one block of vouchers after another . the exchange , which is run by the plekhanov russian academy of economics , a leading economics institute , operates each morning in a cavernous hall and trades as many as 150 , 000 vouchers a day . anyone with the price of admission to the floor 800 rubles can buy or sell . another market , the russian raw_materials and commodities exchange , trades the vouchers each afternoon . as the voucher program runs its course , trading on the markets is expected to shift to trading in more traditional shares . they include shares in privatized companies and financial_institutions , and shares in investment funds that have used large holdings of vouchers to acquire stakes in promising companies .

lead drilling activity in western_canada has slowed , reflecting a lack of interest by the oil companies , the canadian association of oilwell drilling contractors , an industry group , said today . the group said that 130 rigs were active in the week ended today , down from 145 in the previous week . in the period last year , 236 rigs were working , the group said . drilling activity in western_canada has slowed , reflecting a lack of interest by the oil companies , the canadian association of oilwell drilling contractors , an industry group , said today . the group said that 130 rigs were active in the week ended today , down from 145 in the previous week . in the period last year , 236 rigs were working , the group said .

all nippon airways co . , tokyo , japan 's second largest airline , said it would start using non japanese pilots because it has too few pilots for a planned increase in flights and routes . the company said a total of 150 non japanese pilots would be provided by 1996 by ansett worldwide aviation services of australia . pacific nuclear systems inc . , federal way , wash . , said it settled a lawsuit in which westinghouse_electric corp . , pittsburgh , will pay it 1 . 375 million . the suit concerned shipping_containers that a pacific nuclear unit was contracted to design and build for the waste isolation pilot plant operated by westinghouse and the department of energy . psi energy inc . , plainfield , ind . , said a federal district court in indianapolis had ruled that the utility could terminate on dec . 31 a coal contract with exxon corp . , irving , tex . , due to expire in 2002 because of excess pricing .

following are excerpts from president_bush 's news conference yesterday in washington as transcribed by the federal news service . a complete transcript is at nytimes . com washington . q . do you agree with those in your party , including the vice_president , who said or implied democratic voters emboldened al_qaeda types by choosing ned_lamont over joe_lieberman , and it 's a message that how americans vote will send messages to terrorists abroad ? a . what all of us in this administration have been saying is that leaving iraq before the mission is complete will send the wrong message to the enemy and will create a more dangerous world . that 's what we 're saying . and it 's an honest debate and it 's an important debate for americans to listen to and to be engaged in . in our judgment , the consequences for defeat in iraq are unacceptable . i fully understand that some did n't think we ought to go in there in the first place . but defeat if you think it 's bad now , imagine what iraq would look like if the united_states leaves before this government can defend itself and sustain itself . chaos in iraq would be very unsettling in the region . leaving before the job would be done would send a message that america really is no longer engaged or cares about the form of governments in the middle_east . leaving before the job is done would send a signal to our troops that the sacrifices they made were not worth it . leaving before the job was done would be a disaster . and that 's what we 're saying . i will never question the patriotism of somebody who disagrees with me . this has nothing to do with patriotism it has everything to do with understanding the world in which we live . and there are a lot of people in the democrat party who believe that the best course of action is to leave iraq before the job is done , period , and they 're wrong . and the american people have got to understand the consequence of leaving iraq before the job is done . we 're not going to leave iraq before the job is done , and we 'll complete the mission in iraq . i ca n't tell you exactly when it 's going to be done . but i do know that it 's important for us to support the iraqi people , who have shown incredible courage in their desire to live in a free society . and if we ever give up the desire to help people who live in freedom , we will have lost our soul as a nation as far as i 'm concerned . i repeat what our leading general said in the region . he said if we withdraw before the job is done , the enemy will follow us here . i strongly agree with that .

if ever kyoko_ina finally and forever understood which culture she belonged to , as opposed to which one she did n't , it was six years ago when the figure_skater and friday night 's lighter of the olympic torch , midori_ito , let a gold_medal slip away and believed that finishing second meant having to say ''i 'm sorry'' to 120 million japanese . ''i did n't understand why she felt she had to do that , '' said ina , the united_states pairs skater . ''it was a bit confusing to me . '' for blowing a life altering corporate payoff , americans are more likely to apologize to their accountants and agents . ina may have been born 25 years ago in tokyo but within six months she was a child of manhattan 's upper west side , of rockefeller_center , of central_park . individuality , expression , with a healthy dash of all american conceit , was her way of life . by the time she returned to tokyo , 10 years later , about all ina had in common with her extended family was their mutual heritage , a love of sports and japanese food . she conversationally speaks the language that remains her parents' primary tongue , but in most life style ways , she is just another jet_lagged westerner , like the rest of us , never really sure whether to bow , extend a hand or hand over a card . the inevitable clash of cultures here the past week has been sometimes confusing , other times comical , never confrontational . the japanese have put on their happiest face and put up with their guests when we recoil from a raw snake delicacy or do n't remember to take our shoes off . they act embarrassed for uttering fractured english sentences to people who speak two words of japanese . they wear surgical_masks outside to make sure no one will catch their colds . what to make of a country where guns are legal but bullets are not ? when ina was 7 , living next door to the famous dakota overlooking central_park , her best friend used to tell her that john_lennon lived a few flights upstairs . ina did n't know lennon was famous until he was shot to death in front of the building . alarmed by what is exceedingly rare in japan , ina 's parents moved across the river to guttenberg , n.j . kyoko_ina 's cycle from a japanese birth to an american suburb was complete . ''coming here is like going to a foreign country , '' ina said , speaking for herself , and leaving no doubt she wants to be colored red , white and blue , as much as michelle_kwan , the chinese_american , and the apple of america 's nielsen rated eye . after performing the short_program here today , ina and her partner , jason dungjen , will skate their long program tuesday to music from appropriately enough for ina ''strangers in paradise . '' however bewildering japan can be , it remains for ina steeped in sentiment , ''the country of my heritage and birth . '' the truth is , this competition represents emotionally and opportunistically the summit of her skating career . the japanese news_media have zealously attended to ina , recalling the years when she regularly crossed a continent and an ocean in order to compete for japan , for them . to embellish the occasion , her extended family arrived yesterday from toyko to join her parents in the stands . ''at least i know that if i fall , there will be 100 people who still love me , '' she said . ''in norway , nobody cared . '' here , ina decided , she would experience ''the best of both worlds , '' an incredible confluence of events and luck . it is a blessing to be at an olympics in japan when she and dungjen , ninth in lillehammer four years ago , are , in their minds , serious medal_contenders . if that occurs , it will be made sweeter , she said , knowing that midori_ito was watching . ina was 13 when she first met ito , when ito was the star of the japanese national program and ina would literally drop in from the states to compete as a national junior champion , following a long family tradition of national athletic prominence . her grandfather was a runner in the 5 , 000 meters for japan at the 1924 olympics . her grandmother played at wimbledon . her mother , yoshika , was a swimmer in the asian_games . ito was a supporter , a friend , a role model , to an intrepid but lonely girl who missed her adopted cultural comforts , her parents and friends . she would eventually tire of the grueling trips , leaving the japanese umbrella for the united_states program in 1988 . memories of ito 's kindness were not forgotten , and the news that she would be the torch lighter , the answer to ali in atlanta , represented to ina the sweet and tender upside to the japanese order . the sense of disappointing her people has long dissipated to appreciation , devotion , after ito publicly acknowledged her shame . a decidedly un american touch . nancy_kerrigan finished second in 1994 , cashed in on her knee whacking victimization , and has become an afterthought , a fox_network foil . ito was second in 1992 to kristi_yamaguchi and was put before the world friday as a national treasure . ''i was so excited for her , '' ina said . ''i have known her a long time . '' she made herself watch ito 's moment and the rest of the opening ceremony from the comfort of her village room , though . a stomach virus she had brought from the states was finally vanquished after a couple of days with an i.v . in her arm , but ina was taking no chances with the crisp winter air , with her long awaited homecoming so far from home . no apology necessary for that .

a picture last sunday with an article about the defeat of a bond issue in the ridgewood school_district was published in error . it showed robert j . sommer , who voted against the bond issue , not thomas fredericks , a neighbor , who voted for it .

lead after a break of one month , the canadian government inquiry into the use of performance_enhancing_drugs by athletes resumed today with a prominent canadian drug expert denying that his reponsibilities with the international_olympic_committee created a conflict of interest . after a break of one month , the canadian government inquiry into the use of performance_enhancing_drugs by athletes resumed today with a prominent canadian drug expert denying that his reponsibilities with the international_olympic_committee created a conflict of interest . dr . robert dugal , the director of the only drug testing laboratory in canada fully accredited by the i.o.c. , testified he saw no problem serving as a member of the i.o.c . medical commission 's subcommission on doping and biochemistry , even though the subcommission certifies labs for meeting i.o.c . standards . ''i think the process is conducted in a fair , professional and equitable manner , '' dugal said . ''we have tried very hard , and i think we are succeeding in being fair . '' dugal 's lab , in montreal , has had two principal clients in the last four years , the sports_medicine council of canada , which provides major funding , and the national_collegiate_athletic_association in the united_states . dugal testified that the council paid his lab 400 , 000 in canadian money from 1985 through 1988 to cover the costs of analyzing a maximum of 1 , 200 urine samples each year from national and international events in canada . it could not be learned how much the lab is paid by the n.c.a.a . he said the actual number of tests the montreal lab conducted each year was about 1 , 000 . the perception of conflict of interests was suggested in questioning by robert armstrong , the chief counsel for the inquiry . but charles dubin , the ontario judge presiding over the inquiry called after the ben_johnson olympics scandal , brought it into clearer focus when he pointed out that the i.o.c . subcommission decertified a lab in calgary , alberta , earlier this year , thus eliminating one of dugal 's prime competitors . four other members of the i.o.c . subcommission have similar dual responsibilities . they are donald catlin in the united_states , claus clausnitzer in east_germany , vitaly semanov in the soviet_union and manfred donike in west_germany . arnold beckett of britain , the sixth member of the subcommission , is no longer director of the i.o.c . accredited lab in london .

two democratic presidential rivals of senator hillary_rodham_clinton applied more pressure on her over iraq on wednesday , extolling the virtue of admitting mistakes about the war which she has not done and comparing politicians who do not with president_bush . the toughest words , here at the first democratic candidate forum of the 2008 race , came from former senator john_edwards of north_carolina . he said americans needed ''a different kind of leadership'' than that provided by the current president who , mr . edwards said , had refused to admit error on iraq . mr . edwards has apologized for his 2002 vote to authorize military action in iraq mrs . clinton cast the same vote and has stood by it while also criticizing the war strategy . ''we need a leader who will be open and honest with you and with the american people who will tell the truth , who will tell the truth when they 've made a mistake , who will take responsibility when they 've made a mistake , '' mr . edwards said at a forum sponsored by the american federation of federal , state and municipal employees . ''if we want to live in a moral and just america and we want america to be able to lead in a moral and just world , we need a leader who is honest , open and decent , '' he added . asked by the forum 's moderator , george_stephanopoulos of abc_news , about mrs . clinton 's explanation that her vote was cast based on a sincere belief in military_intelligence provided at the time , mr . edwards replied ''whether it 's good enough i think is between her and her conscience . it 's not for me to judge . '' another candidate , senator christopher j . dodd of connecticut , who has also renounced his 2002 vote , said there was ''nothing wrong'' with admitting mistakes . ''there are two things that people in public life two responses people in public life never like to give , and i do n't understand why 'i made a mistake' and 'i do n't know , ' '' mr . dodd said . ''i 've made them in the past . i 'll make them in the future . '' because the forum rules prevented direct engagement among the candidates indeed , they appeared one at a time mrs . clinton could not respond immediately . once it was her turn , she reiterated her opposition to the war and outlined her new plan to cap troop_levels and start withdrawing some units from iraq within 90 days . if the president does not move in that direction , she added , ''i think we should require that he has to seek additional congressional authority , because it has run out on what george_bush has tried to do in iraq . '' of the major democratic candidates , only senator barack_obama of illinois was absent he was campaigning in iowa . yet he was here in spirit at times the focus of the forum , and of some reporters , drifted to the e mail attacks on wednesday between the campaign war rooms of mrs . clinton and mr . obama over an obama donor 's personal criticism of the clintons this week . david geffen , the entertainment executive , in an interview with a columnist for the new york times , described mrs . clinton as ''incredibly polarizing'' and ''ambitious , '' and said mr . clinton may make trouble for his wife by causing a new scandal in their lives . mrs . clinton pushed back at the forum , to applause from the audience of public employee union members , by saying candidates and their allies should not ''be engaging in the politics of personal destruction . '' not everyone seemed to agree with that . outside of the event here in the capital of nevada , which is scheduled to hold the second round of presidential_caucuses next january , leaflets calling mrs . clinton unelectable were tucked under the windshield wipers of cars . the leaflets , of unknown provenance , were titled ''why ca n't she win ? '' and cast her as unpopular with liberals over the war and with conservatives over just about everything . other than iraq , health_care insurance was the subject of greatest discussion , with most of the candidates promising to push for universal coverage . gov . bill richardson of new mexico promised that he would not increase taxes to expand health_care , but rather focus on preventative care , while mr . edwards repeated plans for a huge health_care program that would include higher taxes on wealthy americans . ''i think we have reached a place in american history where small baby steps , incremental steps , are not enough we need big , transformational change , '' mr . edwards said to some applause . mrs . clinton , who has been portrayed by edwards advisers and others as an incrementalist , said she wanted to develop a plan to provide universal care without spending billions of dollars more , given that the united_states already spends significantly more on health_care than any other nation . yet she also presented herself as a bold goal setter , recalling president john f . kennedy 's pledge to put a man on the moon in a decade . ''i want to have universal_health_care coverage by the end of my second term , and with everybody working on that , i think we can do it , '' she said to applause .

lead ministers of 24 industrial nations called on their governments today to reduce expensive farm support programs , and they also disclosed a new willingness by west_germany to stimulate its economy in response to sagging growth . ministers of 24 industrial nations called on their governments today to reduce expensive farm support programs , and they also disclosed a new willingness by west_germany to stimulate its economy in response to sagging growth . the ministers' communique , at the end of a two day meeting of the organization for economic cooperation and development , was the first time that there had been a consensus among the united_states , europe and japan that farm support programs need to be cut . the subsidies cost o.e.c.d . nations more than 100 billion a year and have produced enormous surpluses of farm products . while officials concede that slashing the farm aid is a formidable task , they maintained that they had taken a critical , and difficult , first step . 'the urgency of the problem' ''a few years ago it would have been impossible to have agreed on an issue as controversial as farm policy , '' said frans andriessen , agricultural commissioner for the european_community . ''our agreement says something about the urgency of the problem worldwide . '' while agricultural trade_barriers are already a subject of trade talks , this accord increases the scope of negotiations by asserting that farm subsidies are a form of protectionism that should be limited . reducing agricultural subsidies would almost certainly produce sweeping changes for farmers around the world . in another section , the communique , which also focused on efforts to stabilize the dollar and end trade imbalances , stated that west_germany would adjust its growth strategy if a ' 'serious risk'' to sustained expansion of domestic demand developed . a commitment by bonn american and european officials who have long called on bonn to stimulate domestic demand praised the commitment . west_germany , which reported weak economic_growth in the first quarter , said it would examine its growth statistics in june to determine whether its economy is in need of stimulation , a condition that german officials said would be reached if the growth rate were below 2 percent . several ministers said the stimulation could take the form of an interest rate cut or an accelerated tax_cut . on tuesday , west_germany ordered a reduction in a key rate that its central_bank charges some domestic borrowers . ''we were quite pleased that they acknowledged that they would take another look if growth does n't materialize in the way they hope , '' treasury_secretary james a . baker 3d of the united_states said . at a news conference earlier in the day , mr . baker noted , ''we 'd like to see them do as much as they can as soon as they can . '' mr . baker and many other economic ministers expressed confidence that progress was being made in coordinated international efforts to reduce trade imbalances , preserve growth and calm currency markets . ''what is needed is some patience , '' said jean_claude paye , the o.e.c.d . 's secretary general . ''economic actions need time to bear fruit . '' a shift in stances for years , the americans have struggled to put the issue of rapidly rising farm subsidies on the international agenda . american officials said they were delighted that the stalemate had been broken at this o.e.c.d . meeting as two strong advocates of subsidy programs , west_germany and japan , shifted their stances and decided to support a broadly worded communique that calls for market forces to play a larger role in determining farm production and prices . ''this is not just a financial and economic question , it 's a social and political question in every country , '' mr . baker said . ''it 's only when we move on a multilateral basis that any country , including the united_states , will find the political will to deal with this problem . '' ministers said the breakthrough agreement lays the groundwork for discussions of agricultural_policy at the economic summit meeting in venice june 8 10 . ''this is all about building political support around a bunch of principles , '' one senior united_states trade official said . agricultural experts said the hardest work would be to negotiate a detailed trade agreement as part of the uruguay_round of the general agreement on tariffs and trade that would limit both agricultural subsidies and protectionist measures against farm imports . a comparison by baker ''it will be a difficult process , just like dealing with third world debt , '' mr . baker said . ''just because these are difficult problems , though , does n't mean we should n't address them . '' many ministers said changes could face stiff opposition from farm groups in their countries . indeed , a german official vowed that his country would never agree to a cut in farm prices . to win german backing , the communique was worded to say that governments would have flexibility in the ways they reduce support to their farmers , with each tailoring its approach to meet its needs . one provision in the communique aims to limit overproduction by stating that ''farm income support should , as appropriate , be sought through direct income support'' rather than by providing price guarantees or other supports that encourage farmers to grow more . ''the key issue was how to reduce surplus production , '' said martin_bangemann , west_germany 's minister of economics and president of the o.e.c.d . meeting . ''we see we should concentrate our efforts on helping farmers , not the farms . ''

stephen elmont vice_president , national restaurant association our industry is consumed and concerned about health_care_reform . for the past few years , restaurateurs have struggled with staggering inflation and health_care premium costs , with cancellations , with denials of coverage , and now with the frightening prospect of mandates . we are not engaged in hyperbole when we say that mandated employer provided coverage or higher payroll taxes to pay for health benefits would literally sound the death knell for many restaurants and discourage other restaurants from ever opening . you have asked us to discuss the best ways to insure that employees of small businesses get health_care coverage . we believe the most essential element of health_care_reform is cost containment . we adamantly oppose employer mandates , price_controls and global budgets . instead , we support many of the concepts upon which build the strengths of our free_market system . . . . the concept of mandates is un american , the concept of mandates of anything . we 're in a free enterprise system where if one employer wants to do one thing that he or she feels is going to benefit either their customer and or their employees , they 're going to do it . and another employer may look at them with a jaundiced eye and say that 's not going to improve my bottom line . so that we all sitting here are successful because we make decisions every single day on what 's going to improve the customer experience , what 's going to improve the employee experience . and so we oppose mandates for that reason . . . . vice_president al_gore you have inspection of your food preparation facilities and your sanitation and health standards and so forth ? a . of course . . . . q . is that voluntary ? a . no . q . is it mandated ? a . yes . q . does it make sense ? a . does it make sense ? i think it makes sense , but there are n't enough resources to do a good job so we employ our own inspection agency . q . would you describe it as un american because it 's mandated ? a . no , that 's protecting the consumer . q . well , the point i 'm making is that some things when applied universally make sense , even if they 're mandated , such as the inspection i 'm talking about . you get a benefit from having this mandated health inspection because you do n't have to compete with some other restaurant that cuts corners and does n't provide the minimal standards , and your entire industry gets a reputation with the public of being safe . and you do n't have to run the extra risk of some bad actor in your industry cutting corners so much that it gives the whole industry a black_eye . so all that 's a benefit to your industry from that mandated approach , is n't it ? a . if you want to talk about wellness in that way as compared to catastrophic illness , yes . secretary donna e . shalala well , would you talk about social_security that way ? i mean , social_security clearly is a mandate for the public good . is there something fundamentally different between social_security and health_care ? a . it 's because if i give an inch , i am terribly , terribly concerned about the cost of that inch , and that 's why i 'm so paranoid in talking about mandate versus not mandate . selections by the new york times from transcripts recorded by news transcripts inc . and federal news service , private transcription companies . ( transcripts were provided for only the first five of the 11 panels of witnesses . )

lead when georgetown_university 's basketball coach , john thompson , walked off the court to protest a new n.c.a.a . rule as discriminatory against poor blacks , he drew attention not just to the rule but to georgetown and its effort to educate black students . when georgetown_university 's basketball coach , john thompson , walked off the court to protest a new n.c.a.a . rule as discriminatory against poor blacks , he drew attention not just to the rule but to georgetown and its effort to educate black students . the effort began seriously in 1968 when university officials went into district of columbia public schools to identify needy high_school students who might make it through georgetown with tutorial help and financial aid . a program established to help those students , community scholars , now aids up to 40 minority_group students a year from around the country . a recent study of the last seven years of the program shows that 89 percent either went on to graduate from georgetown or are earning averages of c plus or higher . the general graduation rate of all georgetown students is 87 percent . a fifth are from minorities one in ten georgetown students is black , and another 10 percent of students are from other minority groups . these numbers are slightly above the average for the nation 's universities , but they have not brought total harmony . many black students say there are too few faculty_members from minorities to look to as role models . some say the campus can make people from an impoverished background feel out of place . beyond the numbers , georgetown 's efforts to increase the minority presence on campus have been somewhat ahead of those of many other colleges and institutions . ''my sense is that georgetown has been very aggressive in trying to accommodate minority students , '' said arnold mitchem , executive director of the national council of educational opportunity associations , a nonprofit group dedicated to bringing more low income and minority students into higher_education . ''i would say philosophically , politically , in terms of dollars and in terms of people they have hired to work with the students in the trenches , georgetown gets very high marks , '' mr . mitchem said . beyond recruiting by the end of the 1960 's , many colleges and universities began recognizing that they had to seek out minority students if their actions were to meet their ideals . the colleges recruited widely to develop a pool of outstanding students . but by the early 1980 's , the schools with the highest admissions standards began to realize that they had to do more than identify bright students who might make it through ivy_league schools or other top colleges . colleges then began to follow the lead of georgetown and some other schools . more and more they reached into secondary and even elementary schools for students who could be helped through junior high_school and high_school . some colleges sent teachers and students into high_schools as tutors . others established summer programs for minority_group members on the campus . enrollment and progress from 1960 to 1985 , minority enrollment in higher_education increased nationally to 1.1 million students from 150 , 000 , but progress has slowed in the last three years , said reginald wilson , director of the office of minority concerns of the american council on education . in 1986 , the council said , blacks , who make up 12 percent of the general population , were 8 percent of the total student population . georgetown 's numbers are only slightly higher . blacks are 9 percent of the freshman class and hispanic people 5 percent , said charles deacon , georgetown 's dean of undergraduate admissions . some parts of campus life cannot be expressed in statistics . saladin malik ambar , president of the black student association , said ''if you come to georgetown from a substantially well off background , georgetown is a welcoming and warm place , socially and academically . if you are like me , you are often disturbed by this . '' s.a.t . scoring is questioned the school has 10 , 000 applicants for 1 , 300 places in next fall 's freshman class , with about 900 of the applications from black students . their scholastic_aptitude_test scores average about 1 , 100 out of a possible 1 , 600 points , while the average for the entire applicant pool is 1 , 230 , mr . deacon said . many educators say the multiple_choice questions on the s.a.t . are culturally biased against minorities and women and are therefore unfair to use as the main standard for admission or deciding who gets scholarship money . such criticisms are at the heart of the rule protested by mr , thompson . the rule , which is to go into effect next year , would prohibit colleges from giving athletic scholarships to students who have less than a c average in high_school and scored below 700 points on the test . mr . thompson said poor black athletes around the nation would be unfairly held back by such a standard . school officials said it would have little direct effect at georgetown . no minimum s.a.t . scores mr . deacon said georgetown did not have a minimum s.a.t . score for admission . he said one student who had been first in his high_school class of 700 students had a test score of just 760 . another student at georgetown was admitted with a score of 700 . georgetown sends applications of athletes seeking scholarships to be reviewed by three faculty_members , the director of minority affairs and the dean of admissions . ''the question our committee has to deal with is do we think the student can survive georgetown , '' mr . deacon said . a similar standard applies to the community scholars program , school officials said . the program is intended for students who typically have low test scores but show promise . ''we will actually pass by brighter students because we want to make certain that a number of kids who would otherwise never pass through the system on the basis of s.a.t . 's and other numbers are getting a chance at a competitive institution , '' mr . deacon said . answering financial need applicants with stronger academic credentials compete with the rest of the applicants . no student is refused admission because of financial need , the school said . sam harvey , vice_president for urban affairs , started the a center for minority student affairs at the university in 1976 to bolster the community scholars program . ''we needed to explore innovative ways to give kids academic and social support to make it comfortable here for them so that they could give it their best efforts , '' mr . harvey said . community scholars are given intensive reading , writing and mathematics courses the summer before their freshman year . the courses are taught by some of the best professors in the university . as freshmen , community scholars have upperclass students assigned to them to talk about any problems they might have . ''people are very open minded , '' said sara melendez , a community scholar in the school of business . ''i do n't see myself as clinging on to a small hispanic minority . people here are friendly . if you are an outgoing person , you have no trouble at all meeting people . '' the main complaint of a number of black students interviewed was too few black faculty_members . out of a full time teaching staff of 447 , there are 49 minority faculty_members and 9 are black . of 253 members of the administration , 38 are members of minority groups , of whom 12 are black . ''black people do not have role models , '' said tim king , a senior in the school of foreign service , who is black . ''you do n't have a lot of black administrators or black faculty_members and that leads to classes that do n't have a black point of view . '' he told of a history course about blacks in the united_states taught by a white professor ''who was constantly having to apologize for not being black . '' mr . king did say that he thought georgetown did ''an excellent job'' of recruiting black students . ''you might get a slightly different view from other others , but i like the school a lot , '' he said . ''i do n't think there is any serious racial problem . there are just little kinks that need to be worked out . '' ''we 've really worked at it very hard with faculty and students and staff , '' mr . harvey said of the effort to attract and retain members of minority groups . ''we are still tinkering and trying to make it better and more effective , but it 's working . ''

germany 's stubborn determination to place its fight against inflation before any concessions to spurring a european economic_recovery is causing increasing political tensions across the continent . indeed , a worrying question is now pressing with increasing insistence on europe 's governments could the high cost of unifying germany , which is fueling the country 's unfamiliar problem with inflation and leading it to impose high interest rates , cause such resentment elsewhere that europe 's drive for unity will stall ? the catalyst for the recent sharp falls in stock markets , as well as the weakness of the dollar , was the german bundesbank 's decision thursday to raise a key interest rate . the central_bank 's action was its latest attempt to stanch inflationary pressure stemming from the unexpectedly high costs of absorbing the economy of the former east_germany . but the decision also underscored europe 's fundamental economic paradox its biggest economy , germany , is taken up with fending off the specter of high inflation that unification has brought , while other nations like britain are looking to stimulate their recession hit economies through cuts in interest rates . tension is rising over this split just as europe is trying to move toward greater economic_union through ratification of the maastricht_treaty , which calls for a single european currency by 1999 . the threat , in the view of several economists and political analysts , is that maastricht and european_union could be the victims of the growing rancor that germany 's economic problems are causing . high interest rates attract investment money , and thus usually strengthen a nation 's currency . so the high german rates , which tend to bolster the mark , virtually compel other european_countries to raise their rates because the european monetary system obligates members to maintain their currencies within a narrow exchange_rate band . the german decision last week has thus convinced many that the stagnation in europe will continue because the current high cost of money discourages investment and spending . reckoning that corporate earnings will be hurt by the continued slowdown , a selloff on stock markets began . the dollar also suffered because united_states interest rates are at their lowest levels in 30 years while german rates are at their highest since world_war_ii . low interest rates in the united_states discourage people from buying dollars when they can get a much higher return on their money in europe . the popularity of the idea of european unity is being battered by these economic tensions just as france prepares for a crucial referendum on the maastricht_treaty on sept . 20 . the problem facing europe is that germany , with its particular phobia over inflation stemming from its experiences with hyperinflation earlier in this century , is unlikely to be budged from its present course in the near future . " we cannot accept that others push us around on interest rates , " said george grosche , a senior official at the german finance ministry . " we have a temporary problem right now with our huge transfers to the east , and we have to keep our belts tightened . " an estimated 180 billion_marks about 121 . 6 billion will be transferred to eastern_germany this year , increasing the german budget_deficit and stimulating inflationary pressure . a hangover from the 20 's " we do n't like inflation , " said klaus friedrich , the chief economist for dresdner_bank . " germans are still somewhat shaped by the hyperinflation of the 1920 's . " but as germany pursues its stubborn course , others are beginning to suggest that the current situation offers a foretaste of a european monetary_union , as laid out in the maastricht_treaty , that is neither desirable nor possible . if other european economies already feel burdened by the yoke of german policy , the argument goes , how much worse will it be when the envisioned single_currency creates an even tighter bond with the continent 's biggest economy ? already , several leading economists in britain have suggested in the last week that the country should leave the european monetary system so that britain will have the flexibility to cut interest rates by as much as two percentage_points to stimulate the economy . up to now , prime_minister john_major has firmly resisted such calls . in france , the current german policy is increasingly being portrayed as the harbinger of what life would be like under the european_central_bank envisioned by the maastricht_treaty . the treaty 's insistence on low inflation and low budget_deficits is being vociferously criticized as little more than a bundesbank dictated recipe for further deflation at a time when a slump already exists . attacking the treaty " the criteria of maastricht , imposed by the bundesbank , are contrary to all good sense , " a former socialist minister , jean_pierre chevenement , wrote in le_monde last week . " how many million more unemployed people will have to pay for the blindness of european technocrats in the service of financial_capital ? " already , the proportion of opponents of maastricht in france has surged in recent weeks to 42 percent from 35 percent , according to one survey . a french rejection of maastricht would kill the treaty and probably create turmoil as markets reassess the future of european_integration . a fear of such a fragmentation appears to many to lurk behind the current nervousness afflicting investors . optimists believe europe can keep on track while germany gets its domestic problems under control . but the camp of the pessimists is growing .

lead china 's jails brim with ''counterrevolutionaries , '' and its airwaves are full of calls for greater faith in communism . but so far the worst fears of the democracy campaigners of early june have not come to pass , and there seems to be somewhat greater hope among them these days . china 's jails brim with ''counterrevolutionaries , '' and its airwaves are full of calls for greater faith in communism . but so far the worst fears of the democracy campaigners of early june have not come to pass , and there seems to be somewhat greater hope among them these days . perhaps ''hope'' is the wrong term , given the bleak mood among many young people and intellectuals , but at least the despair is not so acute as it was in june . chinese who for two months avoided any contact with foreigners are slowly re emerging , and so far there has been no indication of purges on the scale that many had expected . what is still unclear is whether china 's leadership is genuinely moderating its policies to avoid international outrage or is simply adopting methods that are less obvious but no less repressive . most likely , it is a combination of both . some of the prospects of early to mid june have not been realized . chinese mobs have not demonstrated outside the united_states embassy , nor has beijing interrupted diplomatic relations with any foreign nations . there has been no purge of the central_committee , and the only newly appointed members of the cabinet are both considered moderates . long term persuasion sought ''those who just participated in the demonstrations , or signed petitions , wo n't get into trouble , '' the head of a communist_party publication said . he said that the party knew that many people were simply pretending to agree with the crackdown , but that the only solution was simply to let them be convinced over time . even in such bastions of the democracy movement as the chinese_academy_of_social_sciences and the institute of economic_reform , there have been no broad purges so far , although a few people have fled the country , gone into hiding or been arrested . some prominent figures who had been reported arrested , like du runsheng , the head of the rural development research center , have in fact not been seized . nor has mu qing , the head of the new china news_agency , been dismissed , as had been rumored . yet while the situation is not as bad as some feared , thousands of people have been arrested and at least a dozen have been executed . part of the reason for the uncertainty is that the chinese authorities have become much more shrewd and no longer parade those they have arrested or are about to execute on chinese television . ''china is waking up to its difficulties , '' an asian diplomat said . ''the leadership is coming to realize the seriousness of the problems it is in . '' arrest announcements halted as a result , the diplomat added , china is trying to show that life is normal and that business and tourism can resume . to encourage business and tourism , the authorities circulated an internal memorandum in june calling for a halt to the announcements of arrests , chinese officials say . by that time , the government had announced more than 2 , 000 arrests that were clearly related to the democracy movement . but it is certain that far more people have quietly been arrested . the beijing evening news has indicated that 3 , 580 ''counterrevolutionary'' arrests were processed in june alone , just in the capital , and a diplomat with a contact high in the security apparatus said the total reached 4 , 600 by mid july . some people have been arrested since then , so the total has certainly risen . the jails in beijing are full . a common criminal who was recently released said his cell , built for 7 or 8 inmates , had 22 occupants . he said those included ordinary criminals and dissident students and other political_prisoners . most of those arrested appear to be workers , although a considerable number are students and prominent intellectuals , including dai_qing , a pioneering environmentalist who had tried to mediate between the students and the government . some intellectuals who were arrested may have been questioned about their contacts with zhao_ziyang , the ousted party leader , and his deputy , bao_tong . evidence suggesting that mr . zhao or mr . bao helped incite unrest would discredit mr . zhao and reduce the risk that he could stage a political comeback after the death of china 's senior leader , deng_xiaoping . many more have been arrested elsewhere around the country , but even less is known about them . for instance , a newspaper in nanjing reported late last month that 3 , 182 people had been arrested in jiangsu_province , but a spokesman for the province said in a telephone interview that only a small number of them were connected with the democracy movement . few arrests in some areas in other areas , there have been virtually no arrests . chinese officials and foreign business executives interviewed on a trip to coastal fujian_province reported very few arrests there . most diplomats say they believe that 10 , 000 is as good an estimate as any for the number of arrests nationwide that are connected to the democracy movement , but they acknowledge that they could be far off . some estimates , particularly by those who have fled china , run in the tens of thousands , but such sources have in the past proved to be of very mixed reliability . even less is known of executions . the official news organizations reported 27 executions in just two days in june , although it was never certain whether more than 10 were related to the democracy movement , and the result was an international outcry . since then only two executions have been officially reported that were clearly related to the democracy movement , and a few other executions have been reported that may also be related to the movement . some chinese say many more democracy campaigners have been executed , but those interviewed did not have first hand information . in china , second and third hand accounts tend to be very unreliable .

mitsubishi tokyo financial group , one of the four leading banking groups in japan , announced that it planned to report an extensive loss for the year ending march 2001 , reflecting a decision to write off bad_loans and paper losses from its stock portfolio . the banking group said that bank of tokyo mitsubishi , the leading institution within the group , was due to report a loss of 150 billion_yen ( 1 . 2 billion ) instead of a profit of 90 billion_yen . miki_tanikawa ( nyt ) world business briefing asia.

talks for a new contract with state workers begin a week 's recess on monday with gov . christine_todd_whitman 's administration and its biggest union separated as much by anger as by differences on wages and benefits . the administration settled last week with two small unions , but negotiations with the communications_workers_of_america , which represents 38 , 000 of 65 , 000 workers in state government service , have foundered on the governor 's demands that workers in traditional health plans begin to contribute part of the cost . in addition , the union wants annual wage_increases , not the lump_sum 1 , 000 bonuses that the two smaller unions have accepted , and an end to mrs . whitman 's efforts to turn some state functions over to private contractors . contracts with most unions expired june 30 , and after recessing on thursday , negotiations will resume on july 17 . " this governor seems to think it 's got to be her way all the way , " elisa riordan , one of the c.w.a . negotiators , said in an interview . " there were plenty of legislators from her own party who certainly did n't think she was doing the right thing with privatizing , and i do n't think it 's too late for her to change her mind . " jerold glassman , the administration 's chief negotiator , said he believed that the medical coverage issue was the toughest one . " the objective of the state is to provide free health_care for its employees who are enrolled in managed_care , " mr . glassman said . " anyone else who wants any different plan will have to pay the difference in cost . " the privatization of the motor_vehicles offices is not going to be negotiated , mr . glassman added , but he said the state would talk about future plans to use private management . " we are willing to discuss the impact of privatization with them , " he said . nothing captures the gulf between the union and the administration better than a tilting motor home parked outside the state house with a banner , in the form of a giant new jersey license_plate , reading " not4sale " across the back . in it , two c.w.a . members are conducting a hunger_strike to protest the governor 's transfer , on monday , of 23 division of motor_vehicles field offices to private management firms . the hunger_strike , the c.w.a . 's radio commercials attacking governor whitman , and the unions' failed attempt to block privatization with budget amendments have only added to the gulf between them and state negotiators . " i think the c.w.a . came into these negotiations with the feeling that they could out lobby the governor in the political sense , " one of mrs . whitman 's labor advisers said , speaking on the condition of anonymity . " they 've wasted a lot of time trying to make it political , while to us , this is simply a collective_bargaining process between a trade_union and an employer . " besides restraining contract settlements that in the past have raised public worker salaries in new jersey faster than private salaries , the whitman administration is relying on layoffs to keep its budget in balance . friday was the last day at work for 865 workers , including about 700 who lost their jobs to privatization moves . the c.w.a . has rejected four year contract settlements accepted last week by the 7 , 000 member international federation of professional and technical engineers and the 9 , 000 member american federation of state , county and municipal employees . the contract provides for a two year wage freeze and annual cash bonuses of about 1 , 000 per worker for each of the third and fourth years , chosen by the state to avoid locking in percentage increases . more important for a state government that has tried for years to control the costs of medical benefits , only state employees who agree to enroll in managed_care systems will continue to receive medical benefits free . the 30 percent or so of workers who remain in traditional indemnity programs will have to start paying the additional cost of such programs , which is about 20 per month for most workers . the pay increases are 7.4 percent over four years for workers earning about 30 , 000 annually . however , the settlement does not touch one expensive feature of new jersey 's public payroll system , the annual step increase awarded workers for each additional year of service , amounting to between 2 percent and 4 percent of a worker 's salary . although the last contract , negotiated in 1993 by gov . jim_florio , allowed for about an 11 percent wage increase over three years , many state workers saw their pay increase by more than 20 percent , thanks to step increases , at a time when private_sector jobs were being lost and wages were stagnating .

the german economics ministry said today that the nation 's seasonally_adjusted gross_domestic_product fell slightly in the fourth_quarter of 1995 from the previous quarter , and was only slightly higher than for the comparable period in 1994 . it essentially attributed the slowdown to a " noticeable weakening " in manufacturing in the quarter . new orders , it said , were down throughout germany . building activity , especially in eastern_germany , has fallen since early in 1995 , ending a nationwide boom of the last several years , the report said . the federal statistics office reported in january that the gross_domestic_product , after inflation , grew 1.9 percent for 1995 as a whole , but did not provide details about the fourth_quarter . in the third quarter , the g.d.p . increased 1.5 percent , compared with the similar period a year before , and was unchanged from the second quarter . despite the current slowdown , the ministry said that conditions for growth had recently improved . the mark has weakened against the dollar , making it easier for german companies to compete abroad , and businesses have taken more steps to guard against future currency rate swings . " this suggests that german exports will be able to climb in harmony with an expected increase in world trade , " the report said . it also said there was reason to hope that wage_increases this year would be lower than those last year . many economists say that german companies were hurt in 1995 by wage costs that made it hard to compete abroad and left them reluctant to hire workers . the ministry further noted that prices had been stable and that interest rates had noticeably declined . " there are good chances that the economy this year will gradually pick up , " its report said . international business.

americans are growing impatient with the united_nations and say they would support military action against iraq even if the security_council refuses to support an invasion , according to the latest new york times_cbs_news_poll . the poll found that 58 percent of americans said the united_nations was doing a poor job in managing the iraqi crisis , a jump of 10 points from a month ago . and 55 percent of respondents in the latest poll would support an american invasion of iraq , even if it was in defiance of a vote of the security_council . but a majority of respondents , 52 percent , say inspectors should be given more time to search for evidence of nuclear , biological or chemical_weapons on the ground in iraq . still , that number has dropped over the past month , and there has been an increase in the number of americans who say the united_states has done enough to find a diplomatic solution in iraq . taken together , the times cbs_news findings suggest that president_bush has made progress , at least at home , in portraying saddam_hussein as a threat to peace while rallying support for a war over rising objections in the international_community . they also signal that the nation may be moving toward the traditional wartime rallying around the president that the white_house and mr . bush 's democratic opponents have anticipated . at the same time , there was evidence that many americans remain perplexed about what mr . bush is doing and why he is doing it . while mr . bush says his main goal is disarming iraq , americans are more likely to say he is motivated by a desire to oust mr . hussein from power . a majority of americans say the white_house has failed to tell them what they need to know about the justification for a pre_emptive attack . respondents were nearly evenly_divided when asked if mr . bush was being guided by the memory of his father 's dealings with mr . hussein in prosecuting what would be the nation 's second war against iraq in 12 years . nearly half said mr . bush was driven by the personal desire to accomplish what his father did not when he cut off his invasion of iraq in 1991 without ousting mr . hussein . younger men in the poll were more apt to see a familial motivation for the president . there is clear concern among americans that the united_states is paying a price internationally for mr . bush 's aggressive posture . the number of americans who believe that their president enjoys the respect of world leaders has dropped to 45 percent from 67 percent in the space of a year . and for all of mr . bush 's focus on iraq , there is growing evidence of concern among americans about the dangers posed by north_korea . the number of americans who disapprove of how mr . bush is handing the situation with north_korea jumped to 35 percent from 25 percent in a month . the nationwide telephone poll of 1 , 010 adults was conducted from friday night through sunday_night . it had a margin of sampling_error of three percentage_points . the poll began the day after mr . bush pressed his views on iraq in a nationally_televised news conference from the east_room of the white_house , and after hans_blix , the chief inspector for chemical and biological_weapons , delivered a report on iraqi compliance to the united_nations on friday . the poll found that the economy continues to be a concern , with 35 percent of the respondents saying it is the most important problem facing the nation , compared with 23 percent who pointed to iraq . but with mr . bush continuing to enjoy a relatively high approval rating in this poll 56 percent it is clear that his presidency is being judged largely by his conduct of foreign_affairs and the potential war . by many measures , the poll found that the nation is behind mr . bush on iraq . and for all the signs of dissent and protest around the nation , it would appear that support for war is on the rise . in the poll , 44 percent of respondents said the united_states should take military action against iraq soon , compared with 36 percent just two weeks ago . although a majority of respondents still support giving weapons inspectors more time , that number has decreased to 52 percent from 62 percent two weeks ago . over all , americans support using military force to remove mr . hussein by 66 percent to 30 percent . but that sentiment breaks down sharply along partisan lines that could have ramifications for next year 's presidential_election , depending on the outcome of a war . the poll found that 86 percent of republicans and 64 percent of independents supported military action to oust mr . hussein , while 51 percent of democrats said they supported it . ''we should act now because by waiting we give them more time to prepare , and there will be loss of life , '' said john nicholas , 53 , a republican who is a sales manager in gentryville , ind . , in a follow up interview . ''are we going to wait until we have another 9 11 ? '' sue kiesau , 58 , a republican from neenah , wis . , said ''we have the evidence and i do n't think having the troops over there twiddling their thumbs is good psychologically . we need to go in and do it , and we do n't need u.n . approval to do it . '' that just 51 percent of democrats said they supported military action to remove mr . hussein is potentially worrisome , if not surprising , for the democratic presidential_contenders , many of whom have in recent days been pressed while campaigning in early democratic primary states to speak out against mr . bush . ''as far as the united_nations goes , i feel it is the last hope of our humanity , our last hope of order , '' said allan gold , 81 , of lynbrook , n.y. , a democrat . ''i think they have to be in charge of our decisions . if the weapons inspectors have more time , they may uncover something dangerous . '' and lawrence stanecker , 72 , a democrat from goode , va . , said ''there are too many inconsistencies . we contained saddam_hussein for 12 years . we contained the soviet_union for lots of years during the cold_war and we did n't go to war . '' mr . stanecker , reflecting the reservations some expressed about mr . bush 's motivation , suggested that the president was trying ''to finish what his father did n't do in the persian_gulf_war and to retaliate for saddam 's assassination attempt on george_bush sr . 's life . '' the poll found concern about repercussions from mr . bush 's policies . for example , 43 percent said that ousting mr . hussein was not worth ''the potential loss of american life and other costs , '' compared with 50 percent who said it was . and by 49 percent to 29 percent , americans said the white_house had failed to develop a clear plan about how it would manage a postwar iraq . nearly two thirds of respondents said mr . bush should take into account the views of antiwar_protesters who have been demonstrating with increasing vigor across the nation in recent weeks . at his news conference on thursday , mr . bush said the protests would not affect his thinking on a war . in a finding that could prove to be of concern to congress if a war does not go well , 48 percent said the senate and house of representatives had not been aggressive enough in challenging mr . bush on his war policies . among democrats , that figure was 66 percent . the findings are nevertheless not a green_light for mr . bush , who wants to set a deadline of march 17 for mr . hussein to comply with the united_nations . the poll found that 60 percent of respondents wanted the administration to take the views of allies into account . ''i think the united_states should n't go it alone if the allies do n't join us , '' said catherine renfroe , a republican and retired elementary_school teacher from amarillo , tex . ''the inspectors are doing their job . '' although mr . bush 's statements at his news conference last week appear to have increased the nation 's support for a war , he apparently did not succeed with one argument convincing more americans that mr . hussein had a role in the attacks on the world trade center and the pentagon . the poll found that 45 percent of americans said mr . hussein was ''personally involved'' in the attacks , a number essentially unchanged from a month ago . how the survey was conducted the latest new york times_cbs_news_poll is based on telephone interviews conducted friday through sunday with 1 , 010 adults throughout the united_states . the sample of telephone exchanges called was randomly_selected by a computer from a complete list of more than 42 , 000 active residential exchanges across the country . within each exchange , random_digits were added to form a complete telephone_number , thus permitting access to listed and unlisted numbers alike . within each household , one adult was designated by a random procedure to be the respondent for the survey . the results have been weighted to take account of household size and number of telephone lines into the residence and to adjust for variation in the sample relating to geographic region , sex , race , age and education . in theory , in 19 cases out of 20 , the results based on such samples will differ by no more than three percentage_points in either direction from what would have been obtained by seeking out all american adults . for smaller subgroups the margin of sampling_error is larger . in addition to sampling_error , the practical difficulties of conducting any survey of public opinion may introduce other sources of error into the poll . variation in the wording and order of questions , for example , may lead to somewhat different results . complete poll results are online at nytimes . com washington . threats and responses the poll.

refco inc . has agreed to pay a 925 , 000 civil fine as part of a settlement of charges that the firm failed to properly segregate funds in five german commodity pools , the commodity futures trading commission said today . refco , a huge futures broker based in chicago , settled without admitting or denying the c.f.t.c . 's allegations . the federal commission also said that the firm had failed to diligently supervise its employees and charged that it ignored previous instructions to halt further supervisory violations . refco agreed to make changes in its lines of reporting and internal procedures about the establishment of multiple accounts . the commodity futures trading commission found that in april 1992 , refco consolidated the balances of five commodity pools formed in germany to hold money from german investors and trade commodity futures and other instruments . at the time of the consolidation , four of the pools owed refco about 3 . 8 million because of their losses .

in the aftermath of the financial debacle in orange_county , calif . , congress began asking today whether greater financial disclosure was needed in the municipal_bond market to prevent similar catastrophes . at a hearing before a house banking subcommittee , no consensus emerged , even though spokesmen for both the securities_and_exchange_commission and the nation 's two top credit_rating_agencies testified that they had investigated orange_county 's investment practices late last year and based on public information at that time found nothing amiss . testifying before the committee , which is headed by representative richard h . baker , a louisiana republican , top officials from california and orange_county said that while additional financial disclosure would have been helpful , it might not have prevented the 1 . 9 billion losses caused by a highly risky investment_strategy that went awry , leading to the county 's bankruptcy filing . municipal securities are not subject to the same financial disclosure_requirements as corporate securities . municipal issuers are not regulated by the s.e.c . and they do not have to file the same annual and quarterly financial reports as corporations . in the last year , the s.e.c . imposed new disclosure regulations on municipal_bond dealers , but not on issuers . today 's hearings focused on whether this was sufficient to inform investors of municipalities' risky investment practices . representative christopher_cox , a republican whose district includes orange_county , said it was not . " municipal securities have been exempt from disclosure rules that apply to virtually everyone else , " mr . cox said . " we are now reaping the whirlwind from the unjustified distinction . municipal disclosure rules are virtually free form . " william j . popejoy , the departing orange_county chief executive , also said that municipal market disclosure was insufficient . " the municipal market is based on trust , " he said . " it 's almost like a gentleman 's club . a corporation would not be allowed to issue casino bonds like orange_county did . " he was referring to 600 million in taxable notes that orange_county issued to bet on the direction of interest rates . but paul s . maco , director of the s.e.c . 's office of municipal securities , dismissed the need for further disclosure , saying that a combination of the antifraud provisions of existing federal securities laws and new market disclosure initiatives from the s.e.c . were sufficient . in some of the day 's most arresting testimony , mr . maco outlined a meeting between s.e.c . officers and the former orange_county treasurer , robert l . citron , and his staff in the months before mr . citron 's investment fund collapsed . " the s.e.c . had read articles about citron 's risky strategy , " mr . maco said . on may 2 , 1994 , seven months before the orange_county 's investment losses forced it to file for bankruptcy , s.e.c . officials in los_angeles met with mr . citron and his staff . " the county represented to us that the pool was in fixed rate instruments , " he said . " they showed us a list saying that there were no risky securities in the investment pool . they said the pool was within state law and that their actions were exempt from s.e.c . regulations . " " absent any indication of fraud , we cannot act , nor question the investment_strategy of a local government , " mr . maco added . asked later whether the s.e.c . was " lied to , " mr . maco declined comment , citing an s.e.c . investigation into the matter . mr . maco added that the s.e.c . believed that " matters of investment_strategy and what is permissible is the responsibility of the state and local_governments . it is not something for which there is an appropriate federal role . " top executives of the nation 's leading rating agencies both of which had given orange_county top investment grades explained their analysis of the county . " we relied on the county 's disclosures , " said daniel heimowitz , head of municipal securities at moody 's investors service , which is owned by dun_bradstreet . " we 're not auditors . between the time public attention was drawn to the investment pool and the bankruptcy filing , we rated orange_county bonds eight times . each one of those issues was secured by the county 's general resources and not the investment pool . " mr . heimowitz said that based on orange_county 's " wealth , low debt and good management , " along with a large position of liquid reserves in the investment pool , " we felt that nothing was out of the ordinary . " richard larkin , head of the municipal finance section of the standard_poor 's ratings group , a unit of mcgraw_hill , said , " we had lots of information from the county that the investment pool had 1 billion in liquid marketable securities and that the investors in the pool did not need their money immediately and could ride out any fluctuation in interest rates . " when pressed as to why his rating agency gave a high rating to the 600 million taxable note the so called casino bond mr . larkin responded that his agency felt comfortable because it was not only the investment pool 's earnings that backed the bond but also orange_county 's general obligation to repay its debts . mr . larkin said that from may to september 1994 , his agency had " several " meetings with orange_county officials to discuss their investment_strategy and felt that investors in those bonds had sufficient credit protections .

lead liverpool 's bid to set an english_league record by going unbeaten in its first 30 games of the season was ended today by a 1 0 loss to everton , liverpool 's longtime rival . liverpool 's bid to set an english_league record by going unbeaten in its first 30 games of the season was ended today by a 1 0 loss to everton , liverpool 's longtime rival . wayne clarke 's goal for everton after 14 minutes stood up , and liverpool had to settle for a share of the record with leeds united , which started the 1973 74 season with a 29 match unbeaten_streak . everton , the defending league champion and the only team to beat liverpool this season in a nonleague littlewoods cup game in october was forced to play defensively for most of the game . had it avoided defeat , liverpool would have equaled the english season unbeaten_streak record of 30 matches , set by burnley in 1920 21 . it was only the third time liverpool had failed to score in a_league game this season . both previous occasions , against norwich and west ham , ended in ties . but the result did little to jeopardize liverpool 's charge toward its ninth league title in 13 seasons .

lead the dollar rebounded modestly yesterday , but foreign exchange dealers predicted that the united_states currency would resume its downward course shortly . the dollar rebounded modestly yesterday , but foreign exchange dealers predicted that the united_states currency would resume its downward course shortly . gold prices were mixed , moving higher overseas but falling in later new york trading . the dollar picked up more than 2 cents against the british_pound and more than a pfennig against the west_german mark in new york trading . dealers attributed yesterday 's gains to profit taking as traders sold other currencies that had soared in recent weeks against the dollar . dealers cautioned that despite the dollar 's better showing it was still fundamentally weak against the yen , while high interest rates were still shoring up european currencies , including the pound . yen prices mixed in new york the dollar rose to 148 . 40 yen from late tuesday 's 148 . 225 . the united_states currency reached a four and a half month low against the japanese_yen in tokyo , slipping to 148 . 10 from late tuesday 's 149 . 60 and was quoted at 148 . 64 yen in late london trading . dealers said the pound should remain firm because of the government imposed 15 percent base interest rate on bank lending to curb inflation . the high interest rate continues to attract investor money to london . the pound slipped to 1 . 7995 in new york yesterday from late tuesday 's 1 . 8220 . earlier in london , the pound closed at 1 . 7980 , down 1 . 75 cents , from 1 . 8155 late tuesday . the dollar rose to 1 . 6540 marks in new york , compared with 1 . 64185 late tuesday . in earlier european trading , it closed at 1 . 6507 marks , up from 1 . 6465 . other late dollar rates in new york , compared with tuesday 's late rates , included 1 . 4020 swiss_francs , up from 1 . 3930 5 . 5515 french francs , up from 5 . 51225 1 , 211 . 25 italian lire , up from 1 , 203 . 00 , and 1 . 15885 canadian dollars , up from 1 . 15695 . other late rates in europe , compared with late tuesday 's prices , included 1 . 4030 swiss_francs , up from 1 . 3945 5 . 5285 french francs , up from 5 . 5270 1 . 8582 dutch guilders , up from 1 . 8555 1 , 207 . 04 italian lire , up from 1 , 207 . 00 , and 1 . 1586 canadian dollars , up from 1 . 1570 . gold prices up overseas gold bullion prices rose overseas after falling 4 an ounce tuesday on reports that between 10 and 15 tons of the metal had been unloaded by middle_east sellers . but gold was lower in domestic trading . currency markets.

an article yesterday about a kidnapped american soldier who apparently had married an iraqi woman and was visiting her at the time of the abduction in baghdad on oct . 23 misspelled the name of the university that the woman has been attending . it is mustansiriya , not mutsamsirya .

lead a sharp dispute has erupted between conde_nast publications inc . and leonardo mondadori , the italian publisher , over the appearance in italy of a magazine that strongly resembles vanity_fair , just as conde_nast is preparing to start an italian edition of its monthly . a sharp dispute has erupted between conde_nast publications inc . and leonardo mondadori , the italian publisher , over the appearance in italy of a magazine that strongly resembles vanity_fair , just as conde_nast is preparing to start an italian edition of its monthly . the first issue of chorus , published this month by mr . mondadori 's company , leonardo periodici , has outraged conde_nast executives . ''we have taken certain legal steps to warn them , to insure they do no not ape us so shamelessly , '' said daniel salem , chairman of conde_nast international . he declined to say what legal action the company had taken . but mr . mondadori said he had received what he called ''a quite arrogant legal warning suggesting we not go ahead with this formula'' from conde_nast 's lawyers . he said that he expected to go to court in italy on feb . 27 for a hearing to review the conflict , but that he had no plans to change chorus . 'homage' or 'rip off' ? mr . mondadori , who has invested 3 . 8 million in chorus , said the magazine 's format was different from vanity_fair 's . but he acknowledged that the magazine 's format was ''inspired'' by vanity_fair 's formula . tina brown , the editor of vanity_fair , said mr . mondadori had told her last year that he was planning a magazine that amounted to ''a homage'' to vanity_fair . ''but it 's a little more than a homage it 's the same thing , '' she said . ''i do n't know what the italian for a rip off is . '' the fight for this new niche in the italian magazine market illustrates the increasing competitiveness of the european magazine market . lured by predictions of faster advertising growth in the european_community than in the united_states , american publishers have recently begun such ventures as a german edition of life , an italian edition of time , german and italian editions of esquire , and a french edition of rolling_stone . a german edition of forbes is also planned . conde_nast 's european moves conde_nast , which also publishes house and garden as well as vogue , has recently started two magazines in spain , one in france and two in germany , mr . salem said . vanity_fair is a glossy magazine that has recently been publishing an increasing number of political and business articles along with its usual coverage of the film and fashion worlds . it has been growing steadily in circulation , to more than 700 , 000 today from about 200 , 000 six years ago . the italian edition of vanity_fair , which is due to come out in may , will be the first european edition of the magazine . paolo pietroni , its editor , said it involved an investment of more than 3 million . to complicate matters further , chorus has several contributors to vanity_fair under contract , including vanity_fair 's contributing editors , dominick dunne and john richardson , and its foreign correspondent , t . d . allman , mr . mondadori said . but , he said , although both magazines would have some of the same journalists , as well as themes and presentation , his magazine would be concentrate more on politics . 'chorus is quite different' ''in italy , '' he said , ''the only way you can stop a magazine being published is if the title or cover are the same as an existing one . in this respect , chorus is quite different from vanity_fair . '' while guarded about their litigation , conde_nast officials suggested it was not aimed at stopping chorus , but at insuring that the magazine distinguish itself more from vanity_fair . both mr . mondadori and conde_nast said their respective magazines would have a circulation in excess of 100 , 000 . mr . mondadori suggested that a joint_venture would be the best solution to the dispute . ''but i would want the majority and i know s . i . newhouse always wants 51 percent or nothing . '' mr . newhouse is the chairman of conde_nast and his family controls conde_nast 's corporate parent , advance publications inc . time warnerd ( time and life ) hearstd ( esquire ) straight arrow publicationsd ( rolling_stone ) the media business.

hazel hobbs was late for a hairdresser 's appointment when an elderly gentleman walked into the principal 's office at the hamilton avenue elementary_school here on may 24 . the man asked to look around . the children were long gone on that friday afternoon and the principal had a ton of work . but mrs . hobbs is friendly and proud of her school . so she canceled her hair appointment . that was a decision that changed her life and that of the entire neighborhood . mrs . hobbs gave the stranger a half hour tour of the 77 year old school building , its beloved but rusting play area and its worn grounds in a little known working_class corner of a community nationally known for its wealth and estates . when the man left , he was shaking his head . today , less than five months later , the school grounds have been transformed into a gorgeous park , an active neighborhood gathering place , and community members are shaking their heads over the generosity of that man . " he 's an angel , " said mrs . hobbs , " a true angel . " " some day , " said carmella roberto , a resident , " i 'm going to thank that man in person . " that man is rene anselmo , the son of a lawyer and a massachusetts postal_worker who grew up to become the multimillionaire owner of radio stations and an international satellite . he talks and acts with the candor that can accompany a personal wealth that will hardly miss the 350 , 000 he has spent so far beautifying the hamilton school . that works out to 2 , 333 per day since mrs . hobbs' long forgotten hair appointment , or 1 , 273 for each of the crayoned thank you notes that the school 's 275 pupils delivered at a surprise picnic the other afternoon . the 46 kindergartners gave their fellow greenwich resident a huge thank you drawing signed with 46 footprints in paint . the p.t.a . gave the former stranger a full color aerial photograph of the grassy new playground with the student body arranged to spell " thank you . " and then all the students and all the teachers and all the parents sang a new song to the businessman " mr . anselmo 's been so nice and he gave us all a slice of his big loving heart . " " all right , yes , " he said afterward . " i was crying . " the 65 year old mr . anselmo prefers to stay in the background in greenwich , unless he 's needling town authorities about ugly billboards , weak zoning enforcement or the appearance of their schools . " this town has a self_image as a beautiful place , " he says , standing by his office wall where 46 kindergartners' framed footprints will soon hang . " yet the schools were surrounded by chain link fences like reform schools . that 's not an attractive introduction to education . " mr . anselmo , in case you had n't guessed , does not like chain link fences . " chain link fences should be banned , " he says . " they 're forbidding . they destroy neighborhoods . they 're just some maintenance idiot 's idea of less work . " elsewhere in greenwich in recent years , mr . anselmo paid to replace similar school fences with stone or white wooden pickets and thousands of daffodils . and then , driving his green bentley , he passed by the hamilton avenue school . " those kids were playing in sand by a dumpster , " he said . " i grew up in a similar neighborhood . they deserve better . " but giving away money in an affluent community can be complicated . mrs . hobbs had to take mr . anselmo 's offer and his landscape_architect 's detailed plans before countless meetings of six separate zoning , school and town boards . a private citizen 's substantial offer to repair institutional neglect seemed to cause some embarrassment among officials . " good ! " says mr . anselmo . construction began in july . most of the new trees are in , as are the benches , gym sets , the baseball diamond and the winding quarter mile exercise path . the oak trees , picnic tables and brick walkways are under way . a white picket_fence hides the dumpster . where steel mesh once stood , dozens of green bushes flourish . but other things have taken root , too . at the fall 's first school assembly , mrs . hobbs told the youngsters they must keep off their new playground 's freshly seeded areas . amazingly , they did . teachers catch youngsters humming mr . anselmo 's song in class . several dozen parents have organized the chickahominy neighborhood association , which is compiling priority lists of other improvement projects for residents to undertake themselves . outdoors , grandparents mingle with children on the exercise path . rowdy youth packs are gone . instead of sitting in locked cars waiting in the lot , mothers chat on benches while toddlers shovel sand piles . there 's less litter blowing about . " this lovely little green place is bringing our whole community together , " said angie birdsell , who is 66 and takes five laps of the path every afternoon . about once a week now a green bentley quietly cruises by . everybody is too busy to notice except mrs . hobbs , who waves .

romantic nationalism is how museum curators now characterize the idealization of folk culture in certain design movements that sprang up in britain and europe in the late 1800 's . architects and designers in countries like the new , unified germany were trying to forge a new national identity . others were trying to develop a style to establish a firm footing in a newly mechanized , unfamiliar world . in england , the arts and crafts movement , for example , was largely a reaction to the ills of the industrial_revolution , which was seen as exploiting workers and promoting poorly designed and shoddily manufactured products . it was a reform movement to revive english handicrafts and promote indigenous style . ''arts and crafts is basically a nationalistic movement , '' said john levitties , a philadelphia dealer who specializes in the period . according to wendy kaplan , a curator at the wolfsonian florida international university in miami_beach , ''the objective was the unity of manual labor and spiritual enlightenment , of work and leisure , of farming and making beautiful crafts from the bounty of the land using time honored methods . '' in england this translated into handmade furniture fashioned in native woods like oak , with wooden pegs substituted for nails , and designs in ''true english styles'' like gothic and tudor . seeing people reeling from the impact of rapid industrialization , late 19th_century designers in britain , germany , austria , parts of eastern_europe and scandinavia tried to incorporate traditional motifs and local styles into their new products . they believed in the importance of individual expression and that each nation should have its own style , based on tradition , climate and geography . ultimately , this was how ' 'modern'' could be made palatable . ''the definition of modern included using native , vernacular architecture and furnishings whose origins were hundreds of years old , '' ms . kaplan wrote in ''designing modernity'' ( thames and hudson , 1995 ) . in england , table stretchers braces holding the legs were modeled on hay rakes , and struts were carved in the shapes of plow handles . ''the vernacular was embraced in the belief that the essence of a culture could be encapsulated and maintained by the continuation of time honored visual traditions . '' ''the arts and crafts people thought they were being modern by looking backward , '' ms . kaplan said in an interview . ''in fact , they were both modern and antimodern . '' several design groups in britain could be called romantic nationalists , including the glasgow school , a group of architects and designers loosely affiliated with the glasgow school of art in scotland . members created a distinctly scottish art_nouveau style in the late 1890 's and participated in international exhibitions in venice in 1899 , vienna in 1900 and turin in 1902 . charles rennie mackintosh , its most famous member , evolved a style more delicate and colorful than the english arts and crafts style . the school had an international following , particularly in germany and austria . ''you have to remember glasgow is a port town , '' ms . kaplan said . ''they were more in contact with the continent and much more open to the outside . the glasgow school was an unusual mix of influences of european symbolism and a unique scottish expression . '' mr . levitties , who owns the philadelphia gallery john alexander ltd . , is one of the few dealers in the united_states specializing in furniture of this period made in britain . he will be showing glasgow school pieces at the international 20th_century arts fair in new york next weekend at the seventh regiment armory , park_avenue and 67th street . the fair opens on nov . 25 and runs through nov . 29 . ( information 212 642 8572 . ) among other pieces , he has a settle , a kind of bench made in england for farmhouses and taverns from the middle ages to the 19th_century . around 1900 the form was revived . this particular settle was designed by george logan , a scot who worked from 1882 to 1937 on the in house design team for wylie and lochhead , a top glasgow department_store . ''it was the store that popularized the glasgow style , '' mr . levitties said . ''logan was responsible for a library and bedroom in the wylie and lochhead pavilion at the glasgow international exhibition of 1901 . his interiors got such great reviews that they were then taken to budapest in an exhibition of the british arts and crafts movement . '' logan won the silver_medal at the scottish pavilion at the international turin exhibition of 1902 . mr . levitties 's settle , also from 1902 , can be used as a bench or , swung apart , as two separate seats joined at the back . the two parts can also be placed back to back . ''ostensibly , with a high back , a chair like this is normally meant to be brought up to the fire , '' mr . levitties said . ''but this settle was not meant to go against the wall because its back is so beautifully finished . '' it is made of mahogany and inlaid with pewter and light woods in stylized floral forms . a similar piece is in the collection of the wolfsonian florida international university collection in miami_beach . the price is 10 , 500 , which may seem steep , but as ms . kaplan said , ''you ca n't get mackintosh much anymore , so logan may be the next big thing . '' in scotland , the members of the glasgow school were city folks who had to earn a living to survive . by contrast , members of the cotswold school in england tended to be well to do gentlemen craftsmen who fled the city for the bucolic countryside because they could afford to . this school was founded in the early 1890 's by the architects ernest gimson and sidney barnsley . gimson was self taught . he apprenticed himself to a chair turner and learned to make furniture , but he was far more important as a designer . barnsley was a skilled craftsman . he was the one who had the idea to make a table stretcher in the form of a hay rake . ''it is the ethos of this handwork that defines the arts and crafts movement , '' mr . levitties said . ''the work can be seen as the antecedent to 20th_century craftsmen such as wendell castle and sam maloof . '' it has clean lines and shows appreciation of materials it particularly accentuates the grain of the wood . mr . levitties is selling a desk and chair designed and executed by sidney barnsley 's son , edward , in 1927 for a nephew of ernest gimson . ( edward barnsley eventually became one of england 's best known furniture designers . ) the walnut desk with ebony drawer pulls has slightly splayed , tapering legs with delicate stringing on the top and sides of the desk . ''the stringing inlay is so fine you almost do n't see it , '' mr . levitties said . the set 's price is 12 , 500 . ''i 'm steadily seeing more interest in british arts and crafts design , '' mr . levitties said . ''both seasoned collectors and new ones seem to be attracted to it , probably due to the recent exhibitions on macintosh and william morris . '' the 20th_century arts fair will be a test . antiques.

an american black hawk helicopter crashed thursday in this tiny village near the restive town of falluja , killing all nine soldiers aboard . less than a week ago , another american helicopter was shot down in the area . the united_states military said the cause of the crash was still under investigation , but witnesses near the mangled wreckage said the helicopter had been downed by a missile . the crash was the most deadly incident in a 24 hour span that clearly illustrated the continuing risk to american_soldiers and other foreigners in occupied iraq . one soldier died thursday of wounds sustained in a mortar attack on wednesday evening that wounded 30 other soldiers and a civilian at logistical base seitz , west of baghdad . a spokesman for the air mobility command , which oversees military transport , said a c_5 transport plane with 63 people on board was struck thursday by ground fire but returned safely to baghdad airport . six months from now , the american led occupation authority plans to hand political power to a transitional iraqi government , but the shape of that administration remains unclear and its ability to guarantee the safety of more than 100 , 000 american and other troops highly uncertain . since the capture of saddam_hussein on dec . 13 , attacks on iraqis and occupation soldiers have continued with deadly efficacy . the american military and civilian leadership maintains , however , that the arrest of mr . hussein has prompted larger numbers of iraqis to provide more accurate intelligence about the insurgency . in what the american led occupation is hoping will be seen by iraqis as a gesture of goodwill and a sign of success against the insurgency , about 500 iraqis detained in recent months for possible connections to the attacks are to be released . on thursday , near the gate to abu_ghraib_prison , west of baghdad , where thousands of suspected insurgents are held , about 60 men were brought out in american_army trucks and let out into a crowd of jubilant friends and relatives , but it was not clear if they were part of the release program . so far , little seems to have discouraged the stubborn insurgency , which is mainly concentrated in a swath of territory west and north of baghdad called the sunni_triangle , encompassing falluja . the black hawk helicopter that crashed was one of many that regularly fly over nuaymiya , ferrying soldiers from nearby habbaniya to baghdad , said ikab , a farmer who stood on the roof to his unfinished two story brick house about six hundred yards from the wreckage . he and other witnesses said the helicopter was painted with the distinctive red_cross of a medical aircraft , a detail the american military confirmed . about six miles southeast of falluja , nuaymiya is a scattering of houses dotting softly green potato fields and wide stands of reeds . by evening , american_soldiers had cordoned off the area with humvees . but the burnt husk of the helicopter could be seen behind a sparse screen of grass deep in the fields , and around 6 p.m. , another black hawk landed nearby as part of the clean up and investigation . witnesses said they saw the rear of the aircraft catch fire , and three people said they saw the helicopter struck by a projectile before it crashed . ''it was hit by a missile , '' said mahir abdul_hamid , a 27 year old student . ''there were women working in the fields when it flew by and was hit . '' no iraqis were hurt in the incident . just six days ago , an oh 58 kiowa helicopter was shot down in falluja as it circled over soldiers who were conducting a search to clamp down on attacks at a nearby intersection called death square . one soldier was killed and another wounded in that incident . roadside_bombs are the most frequent weapon used by the insurgents . but militants have exploited the vulnerability of american aircraft , beginning with a rash of attacks on helicopters in november . the most american_soldiers killed in one day since the war began 17 came in mid november when two black hawks crashed near mosul as they tried to avoid hostile fire from the ground . militants have also used surface_to_air_missiles to pursue the big planes that use baghdad airport , a trend that has delayed opening iraq to commercial flights . fox_news attributed thursday 's attack on the c_5 to a surface_to_air_missile but the military did not confirm this . in a sign of iraqis' frustration with the persistent violence , sayyed muhammad bahr_al_uloum , an influential shiite_cleric who is a member of the american appointed governing_council , said in kuwait that arab countries should press syria to police its borders to prevent foreign_fighters from crossing into iraq , al iraqiya television reported . iraqi and american authorities have said foreign militants intent on fighting the occupation have entered from neighboring states but it is not clear what role if any they have played . american military officials say they now hold about 9 , 800 people suspected of attacks on occupation soldiers and iraqis . under the current system , those arrested are generally held for 72 hours , after which they are released , sent to the iraqi_police if they have committed run of the mill crimes or held for further investigation if they are suspected of involvement in the insurgency . the 500 or so to be released under the program announced wednesday have been deemed to offer a low risk of getting involved in attacks . but they will still need guarantors , ideally a respected elder or cleric , to vouch for them . such guarantors would not be punished if those they have sponsored take part in future attacks , american military officials said . anxious iraqi families and the media waited at abu_ghraib until late afternoon , when about 60 men were released . but some american officials cautioned that these detainees were among those let out after the 72 hour wait , not those who have been scrutinized under the new program . according to these officials , about 100 men now have guarantors , who are gradually coming forward . the struggle for iraq insurgents.

five members of a private security detail protecting an american convoy were killed tuesday when their helicopters came under attack , and one plummeted to the pavement through a tangle of electrical_wires in one of baghdad 's most dangerous neighborhoods . the four man crew in one helicopter was killed , and the gunner in a second helicopter apparently died when he was struck by gunfire , american officials said . the crash set off a chaotic five hour battle in which american attack helicopters crisscrossed the skies over baghdad and fired at least one hellfire missile into the streets below . it is unclear if the first helicopter , nicknamed a little bird because it is small and nimble , crashed as the result of gunfire , because it got tangled in the wires or as it was trying to land because a passenger was wounded . but an american military official said that at least four of the victims had suffered gunshot_wounds to the head , raising the prospect that some of them had been shot on the ground . american ground forces made their way to the crash site to retrieve the bodies and secure the area , american officials said . it was unclear what condition the bodies were in when they were recovered . the helicopters were operated by blackwater , the same private security firm that lost four contractors in march 2004 in an ambush in the desert town of falluja , their bodies mutilated , set on fire and hung from a bridge . that episode led to a three week siege of the city by american_marines . this time , the blackwater contractors were on a routine protection detail in baghdad , monitoring an official convoy traveling by road , american and iraqi officials said . the company has a major contract with the state_department to protect officials traveling outside the protected green_zone . a company statement said the men , all american citizens , ''were killed while working on behalf of the united_states_government . '' an iraqi military officer said that the convoy being escorted also came under attack , but american and iraqi officials said no one in the convoy was killed . lou fintor , a spokesman for the state_department , declined to comment on who was in the convoy . the attack was carried out as the helicopters swooped low over the fadhil neighborhood , an ancient warren of narrow , twisting streets that is home predominantly to sunni arabs and has been the site of numerous battles with insurgents in recent months . the crash took place near the shorja market in central baghdad , an military officer said . on the ground , fierce gun_battles lasting several hours could be heard from blocks away . american apache helicopters took to the sky soon after the attack and could be seen sweeping over the area , making sharp loops over the eastern banks of the tigris_river and then flying low over the neighborhoods . initially , according to an american military official , they were just searching for the downed helicopter . but at one point , they fired at least one hellfire missile , although military officials could not confirm that it was in response to the downed helicopter . other small helicopters like the one that carried the blackwater contractors darted repeatedly over the baghdad skyline , occasionally disappearing from view as they dipped close to the streets . other violence swept the city all day , with multiple bombings in shiite areas leaving at least seven people dead . security forces recovered 27 bodies around the city , killed execution style . the killings may have been part of a cycle of revenge following sustained attacks on shiite areas as they prepared for one of their most sacred holidays , ashura . in two other battles on tuesday , american_forces killed 16 insurgents , the military said . north of baghdad in haditha , the forces engaged in a hectic chase as a group of armed men tried to escape by boat across a lake . after those men met other insurgents across the lake , they were attacked by an american aircraft , killing seven . separately , insurgents fled across rooftops in baghdad before throwing grenades and firing at american_forces that were in pursuit . the americans returned fire and killed six of the insurgents . much about the helicopter attack remained unknown late tuesday . but american officials said that no diplomats or embassy employees were killed . a spokesman for the state_department refused to comment on specifics . ''a small civilian helicopter crashed in baghdad this afternoon , '' mr . fintor said . ''we are attempting to determine the facts . '' insurgents have carried out a series of other sophisticated attacks in recent days . on saturday , insurgents driving humvees and dressed in american military clothing killed five american_soldiers in an ambush in karbala . the same day , an american black hawk helicopter crashed near baghdad , killing all 12 people aboard . an american officer who spoke with a witness in a second helicopter said flares from the black hawk 's antimissile systems were activated before it exploded in the air , strongly suggesting that it was shot down . as its investigation continues , the american military has so far refused to confirm officially that the black hawk was shot down . the reach of war.

following are excerpts from the supreme_court 's 5 to 4 decision today in shaw v . reno , holding that an electoral district of a " bizarre " or " irrational " shape can amount to an unconstitutional racial gerrymander , even if its purpose is to increase black representation . justice sandra day o'connor 's majority opinion was joined by chief_justice william h . rehnquist and by justices antonin_scalia , anthony m . kennedy and clarence_thomas . justices byron r . white , harry a . blackmun , john_paul_stevens and david h . souter each filed a dissenting_opinion . from the decision by justice_o'connor this case involves two of the most complex and sensitive issues this court has faced in recent years the meaning of the constitutional " right " to vote , and the propriety of race based state legislation designed to benefit members of historically disadvantaged racial minority groups . . . . the first of the two majority black districts contained in the revised plan , district 1 , is somewhat hook shaped . centered in the northeast portion of the state , it moves southward until it tapers to a narrow band then , with finger like extensions , it reaches far into the southernmost part of the state near the south_carolina border . . . . the second majority black district , district 12 , is even more unusually shaped . it is approximately 160 miles long and , for much of its length , no wider than the i 85 corridor . it winds in snake like fashion through tobacco country , financial centers , and manufacturing areas " until it gobbles in enough enclaves of black neighborhoods . " . . . the attorney_general did not object to the general_assembly 's revised plan . but numerous north carolinians did . the north carolina republican party and individual voters brought suit in federal district court alleging that the plan constituted an unconstitutional political gerrymander under davis v . bandemer , ( 1986 ) . that claim was dismissed , see pope v . blue , ( wdnc 1992 ) , and this court summarily affirmed , ( 1992 ) . shortly after the complaint in pope v . blue was filed , appellants instituted the present action in the united_states_district_court for the eastern district of north_carolina . appellants alleged not that the revised plan constituted a political gerrymander , nor that it violated the " one person , one vote " principle , see reynolds v . sims , ( 1964 ) , but that the state had created an unconstitutional racial gerrymander . . . . the three judge district court granted the federal appellees' motion to dismiss . . . . the majority first took judicial notice of a fact omitted from appellants' complaint that appellants are white . it rejected the argument that race conscious redistricting to benefit minority voters is per se unconstitutional . the majority also rejected appellants' claim that north_carolina 's reapportionment plan was impermissible . . . . the purposes of favoring minority voters and complying with the voting_rights_act are not discriminatory in the constitutional sense , the court reasoned , and majority minority districts have an impermissibly discriminatory effect only when they unfairly dilute or cancel out white voting strength . because the state 's purpose here was to comply with the voting_rights_act , and because the general_assembly 's plan did not lead to proportional underrepresentation of white voters statewide , the majority concluded that appellants had failed to state an equal_protection claim . . . . it is unsettling how closely the north_carolina plan resembles the most egregious racial gerrymanders of the past . an understanding of the nature of appellants' claim is critical to our resolution of the case . in their complaint , appellants did not claim that the general_assembly 's reapportionment plan unconstitutionally " diluted " white voting strength . they did not even claim to be white . rather , appellants' complaint alleged that the deliberate segregation of voters into separate districts on the basis of race violated their constitutional right to participate in a " color blind " electoral process . despite their invocation of the ideal of a " color blind " constitution , see plessy v . ferguson , ( 1896 ) ( harlan , j. , dissenting ) , appellants appear to concede that race conscious redistricting is not always unconstitutional . that concession is wise this court never has held that race conscious state decision making is impermissible in all circumstances . what appellants object to is redistricting legislation that is so extremely irregular on its face that it rationally can be viewed only as an effort to segregate the races for purposes of voting , without regard for traditional districting principles and without sufficiently compelling justification . for the reasons that follow , we conclude that appellants have stated a claim upon which relief can be granted under the equal_protection_clause . the equal_protection_clause provides that " ( n ) o state shall . . . deny to any person within its jurisdiction the equal_protection of the laws . " u.s . const . , amdt . 14 , sections 1 . its central purpose is to prevent the states from purposefully discriminating between individuals on the basis of race . laws that explicitly distinguish between individuals on racial grounds fall within the core of that prohibition . . . . classifications of citizens solely on the basis of race " are by their very nature odious to a free people whose institutions are founded upon the doctrine of equality . " they threaten to stigmatize individuals by reason of their membership in a racial group and to incite racial hostility . . . . accordingly , we have held that the fourteenth amendment requires state legislation that expressly distinguishes among citizens because of their race to be narrowly tailored to further a compelling governmental interest . . . . at issue in wright ( v . rockefeller , 1964 ) were four districts contained in a new york apportionment statute . the plaintiffs alleged that the statute excluded nonwhites from one district and concentrated them in the other three . every member of the court assumed that the plaintiffs' allegation that the statute " segregate ( d ) eligible voters by race and place of origin " stated a constitutional claim . the justices disagreed only as to whether the plaintiffs had carried their burden of proof at trial . the dissenters thought the unusual shape of the district lines could " be explained only in racial terms . " the majority , however , accepted the district court 's finding that the plaintiffs had failed to establish that the districts were in fact drawn on racial lines . although the boundary lines were somewhat irregular , the majority reasoned , they were not so bizarre as to permit of no other conclusion . indeed , because most of the nonwhite voters lived together in one area , it would have been difficult to construct voting districts without concentrations of nonwhite voters . wright illustrates the difficulty of determining from the face of a single member districting plan that it purposefully distinguishes between voters on the basis of race . a reapportionment statute typically does not classify persons at all it classifies tracts of land , or addresses . moreover , redistricting differs from other kinds of state decision making in that the legislature always is aware of race when it draws district lines , just as it is aware of age , economic status , religious and political persuasion , and a variety of other demographic factors . that sort of race consciousness does not lead inevitably to impermissible race discrimination . the difficulty of proof , of course , does not mean that a racial gerrymander , once established , should receive less scrutiny under the equal_protection_clause than other state legislation classifying citizens by race . moreover , it seems clear to us that proof sometimes will not be difficult at all . in some exceptional cases , a reapportionment plan may be so highly irregular that , on its face , it rationally cannot be understood as anything other than an effort to " segregat ( e ) . . . voters " on the basis of race . so , too , would be a case in which a state concentrated a dispersed minority population in a single district by disregarding traditional districting principles such as compactness , contiguity , and respect for political subdivisions . we emphasize that these criteria are important not because they are constitutionally required ( they are not ) , but because they are objective factors that may serve to defeat a claim that a district has been gerrymandered on racial lines . . . . put differently , we believe that reapportionment is one area in which appearances do matter . a reapportionment plan that includes in one district individuals who belong to the same race , but who are otherwise widely separated by geographical and political boundaries , and who may have little in common with one another but the color of their skin , bears an uncomfortable resemblance to political apartheid . . . . for these reasons , we conclude that a plaintiff challenging a reapportionment statute under the equal_protection_clause may state a claim by alleging that the legislation , though race neutral on its face , rationally cannot be understood as anything other than an effort to separate voters into different districts on the basis of race , and that the separation lacks sufficient justification . it is unnecessary for us to decide whether or how a reapportionment plan that , on its face , can be explained in nonracial terms successfully could be challenged . thus , we express no view as to whether " the intentional creation of majority minority districts , without more " always gives rise to an equal_protection claim . we hold only that , on the facts of this case , plaintiffs have stated a claim sufficient to defeat the state appellees' motion to dismiss . . . . racial classifications of any sort pose the risk of lasting harm to our society . they reinforce the belief , held by too many for too much of our history , that individuals should be judged by the color of their skin . racial classifications with respect to voting carry particular dangers . racial gerrymandering , even for remedial purposes , may balkanize us into competing racial factions it threatens to carry us further from the goal of a political system in which race no longer matters . . . from the dissents by justice souter today , the court recognizes a new cause of action under which a state 's electoral redistricting plan that includes a configuration " so bizarre , " that it " rationally cannot be understood as anything other than an effort to separate voters into different districts on the basis of race ( without ) sufficient justification , " will be subjected to strict scrutiny . in my view there is no justification for the court 's determination to depart from our prior decisions . . . until today , the court has analyzed equal_protection claims involving race in electoral districting differently from equal_protection claims involving other forms of governmental conduct . . . as long as members of racial groups have the commonality of interest implicit in our ability to talk about concepts like " minority voting strength , " and " dilution of minority votes , " and as long as racial bloc voting takes place , legislators will have to take race into account in order to avoid dilution of minority voting strength in the districting plans they adopt . one need look no further than the voting_rights_act to understand that this may be required , and we have held that race may constitutionally be taken into account in order to comply with that act . a second distinction between districting and most other governmental decisions in which race has figured is that those other decisions using racial criteria characteristically occur in circumstances in which the use of race to the advantage of one person is necessarily at the obvious expense of a member of a different race . . . . in districting , by contrast , the mere placement of an individual in one district instead of another denies no one a right or benefit provided to others . . . . under our cases there is in general a requirement that in order to obtain relief under the fourteenth amendment , the purpose and effect of the districting must be to devalue the effectiveness of a voter compared to what , as a group member , he would otherwise be able to enjoy . . . . if a cognizable harm like dilution or the abridgment of the right to participate in the electoral process is shown , the districting plan violates the fourteenth amendment . if not , it does not . under this approach , in the absence of an allegation of such cognizable harm , there is no need for further scrutiny because a gerrymandering claim cannot be proven without the element of harm . . . . the court offers no adequate justification for treating the narrow category of bizarrely shaped district claims differently from other districting claims . by justice blackmun i join justice white 's dissenting_opinion . the conscious use of race in redistricting does not violate the equal_protection_clause unless the effect of the redistricting plan is to deny a particular group equal access to the political process or to minimize its voting strength unduly . it is particularly ironic that the case in which today 's majority chooses to abandon settled law and to recognize for the first time this " analytically distinct " constitutional claim , ante , at 21 , is a challenge by white voters to the plan under which north_carolina has sent black representatives to congress for the first time since reconstruction . by justice_stevens for the reasons stated by justice white , the decision of the district court should be affirmed . i add these comments to emphasize that the two critical facts in this case are undisputed first , the shape of district 12 is so bizarre that it must have been drawn for the purpose of either advantaging or disadvantaging a cognizable group of voters and , second , regardless of that shape , it was drawn for the purpose of facilitating the election of a second black representative from north_carolina . these unarguable facts , which the court devotes most of its opinion to proving , give rise to three constitutional questions does the constitution impose a requirement of contiguity or compactness on how the states may draw their electoral districts ? does the equal_protection_clause prevent a state from drawing district boundaries for the purpose of facilitating the election of a member of an identifiable group of voters ? and , finally , if the answer to the second question is generally " no , " should it be different when the favored group is defined by race ? the first question is easy . there is no independent constitutional requirement of compactness or contiguity , and the court 's opinion ( despite its many references to the shape of district 12 ) does not suggest otherwise .. . . . as for the second question , i believe that the equal_protection_clause is violated when the state creates the kind of uncouth district boundaries seen in karcher v . daggett , ( 1983 ) , gomillion v . lightfoot , ( 1960 ) , and this case , for the sole purpose of making it more difficult for members of a minority_group to win an election . the duty to govern impartially is abused when a group with power over the electoral process defines electoral boundaries solely to enhance its own political strength at the expense of any weaker group . that duty , however , is not violated when the majority acts to facilitate the election of a member of a group that lacks such power . . . the difference between constitutional and unconstitutional gerrymanders has nothing to do with whether they are based on assumptions about the groups they affect , but whether their purpose is to enhance the power of the group in control of the districting process at the expense of any minority_group , and thereby to strengthen the unequal distribution of electoral power . if it is permissible to draw boundaries to provide adequate representation for rural voters , for union members , for hasidic jews , for polish americans , or for republicans , it necessarily follows that it is permissible to do the same thing for members of the very minority_group whose history in the united_states gave birth to the equal_protection_clause . . . . by justice white the facts of this case mirror those presented in united jewish organizations of williamsburgh , inc . v . carey , ( 1977 ) ( ujo ) , where the court rejected a claim that creation of a majority minority district violated the constitution , either as a per se matter or in light of the circumstances leading to the creation of such a district . of particular relevance , five of the justices reasoned that members of the white majority could not plausibly argue that their influence over the political process had been unfairly cancelled , or that such had been the state 's intent . accordingly they held that plaintiffs were not entitled to relief under the constitution 's equal_protection_clause . on the same reasoning , i would affirm the district court 's dismissal of appellants' claim in this instance . the supreme_court.

the pentagon said yesterday that commercial airlines were flying more than double the number of troops overseas this month as they were a year ago , a reason the government expects to spend 15 percent more on such transports this quarter . the pentagon said yesterday that it expected commercial air carriers to move 83 , 000 troops overseas , compared with 40 , 000 in january 2004 . in addition , the pentagon expects to move 71 , 600 troops in february , and 75 , 300 in march . troop and equipment movements are expected to fall significantly after that , according to a memo from the pentagon that was circulated to program participants last week . the movements are a result of a third rotation of military personnel since the conflict in iraq began nearly two years ago and of the expansion of forces ahead of this week 's elections there , according to a spokesman at scott air force base in illinois . the rotation is expected to be completed by spring . the government expects to spend 315 million this quarter on the civil reserve air fleet , a group of two dozen passenger and cargo airlines that transport troops and equipment for the military . that is an increase from 275 million in the first quarter of 2004 . most of the troops will be transported to military bases in kuwait , qatar and afghanistan . some troops are also being transported on rest and relaxation leave , the spokesman said .

the bush_administration , in developing a potential approach for toppling president saddam_hussein of iraq , is concentrating its attention on a major air campaign and ground invasion , with initial estimates contemplating the use of 70 , 000 to 250 , 000 troops . the administration is turning to that approach after concluding that a coup in iraq would be unlikely to succeed and that a proxy battle using local forces there would be insufficient to bring a change in power . but senior officials now acknowledge that any offensive would probably be delayed until early next year , allowing time to create the right military , economic and diplomatic conditions . these include avoiding summer combat in bulky chemical suits , preparing for a global oil price shock , and waiting until there is progress toward ending the israeli palestinian conflict . until recently , the administration had contemplated a possible confrontation with mr . hussein this fall , after building a case at the united_nations that the iraqi leader is unwilling to allow the kind of highly intrusive_inspections needed to prove that he has no weapons_of_mass_destruction . now that schedule seems less realistic . conflict in the middle_east has widened a rift within the administration over whether military action can be undertaken without inflaming arab_states and prompting anti american violence throughout the region . in his public speeches , president_bush still sounds as intent as ever about ousting mr . hussein , making it clear that he will not let the middle_east crisis obscure his goal . but he has not issued any order for the pentagon to mobilize its forces , and today there is no official ''war plan . '' instead , policy_makers and operational commanders are trying to sketch out the broad outlines of the confrontation they expect . among the many questions they must address is where to base air and ground forces in the region . even before mr . bush 's tense meeting with crown_prince abdullah of saudi arabia on thursday , the pentagon was working on the assumption that it might have to carry out any military action without the use of bases in the kingdom . the planning now anticipates the possible extensive use of bases for american_forces in turkey and kuwait , with qatar as the replacement for the sophisticated air operations center in saudi_arabia , and with oman and bahrain playing important roles . as to any war plan itself , the military expects to be asked for a more traditional approach than the unconventional campaign in afghanistan . such an approach would resemble the persian_gulf_war in style if not in size and would be fought with even more modern weapons and more dynamic tactics . ''the president has not made any decisions , '' a senior defense_department official said . ''but any efforts against iraq will not look like what we did in afghanistan . '' vice_president dick_cheney , defense secretary donald h . rumsfeld and their senior aides contend that arab leaders would publicly protest but secretly celebrate mr . hussein 's downfall as long as the operation were decisive and that ousting him would actually ease the job of calming violence between israel and the palestinians . they believe that warnings of uprisings among arab populations are overblown and compare them to similar warnings before the gulf_war , which proved unfounded . ''it has been the consistent drumbeat from our friends in the region that if we are serious , they will be with us , '' said an administration official in this camp . but others at the state_department and the white_house argue that efforts to topple mr . hussein would be viewed by arabs as a confrontation with islam , destabilizing the region and complicating the broader campaign against osama_bin_laden and his network , al_qaeda . the reaction in saudi_arabia is already critical . the united_states would need permission to use saudi airspace adjacent to iraq , if not saudi air bases , officials said , but it is unclear whether mr . bush took up that subject with crown_prince abdullah when the topic of iraq came up . mr . rumsfeld , who met with the saudi leader a day ahead of mr . bush , said access to bases ''was not a topic at all'' of his discussions . turkish officials , for their part , said that no negotiations on basing american_troops for a new campaign against iraq had yet taken place american officials confirmed that , calling such talks premature . kuwait 's position , too , is uncertain . at an arab_league summit meeting in march , iraq agreed to recognize kuwait and pledged not to invade again in exchange for a declaration that an attack on iraq would be considered an attack against all arab_states . but american officials said they could rely on kuwait , whose very survival is owed to american military power after iraq invaded the country in 1990 . senior administration , pentagon and military officials say that consensus has emerged that there is little chance for a military_coup to unseat mr . hussein from within , even with the united_states exerting economic and military pressure and providing covert assistance . ''there have been at least six coup attempts in the 1990 's , and they consistently fail , '' an administration official said . in each instance , this official said , dissident iraqi military officers ' 'sent signals to us , 'we 're ready for a coup , ' and the next thing you know these guys are murdered or it fails or people have cold_feet at the end and leave the country . '' ''it 's a horrific police_state , '' the official said . ''nobody trusts anyone , so how can you pull off a coup ? '' similarly , officials say they do not believe that even an expanded version of the strategy used to oust the taliban from afghanistan would work . in that model , precision airstrikes combined with indigenous armed opposition under the leadership of american special_operations forces and c.i.a . officers did the job . the parallel strategy in iraq would involve the kurds in the north and the shiites in the south . but mr . hussein 's military , while only one third its strength from before the gulf_war , is strong enough to defeat any confrontation by proxy , officials said . officials said the nascent plans for a heavy air campaign and land assault already included rough numbers of troops , ranging from a minimum of about 70 , 000 to 100 , 000 one army corps or a reinforced corps to a top of 250 , 000 troops , which still would be only half the number used in the gulf_war . other than troops from britain , no significant contribution of allied forces is anticipated . the military requirements for changing the government in baghdad would be vastly different than the gulf_war mission , which was to drive an entrenched enemy from a large occupied area , senior military officers said . ''we would not need to hold territory and protect our flanks to the same extent , '' one officer said . ''you would see a higher level of maneuver and airborne assault , dropping in vertically and enveloping targets less slogging mile by mile through the desert . '' even so , officers said , moving tens of thousands of troops to a region with access more limited than in the gulf_war could be a logistical challenge . the modern american military has never fought the kind of dangerous and complicated urban battles that might be needed to oust the hussein government . dealing with mr . hussein 's suspected chemical and biological_weapons would require pre_emptive strikes by precision weapons , as well as an element of heavy deterrence . ''one of the things we would want to do is say that any iraqi officer or soldier who throws chemical or biological_weapons at us will be held personally responsible , '' said eliot a . cohen , a professor at johns_hopkins_university who directed the air_force 's definitive study of the persian_gulf_war . ''you say , 'you guys operating the missile batteries we will find you , and you will pay . ' saddam 's people have no desire to go down in a blaze of glory with him . '' while the pentagon has focused on how to remove mr . hussein , the white_house is also mindful of the effects of a war on oil supplies either because the fighting itself would disrupt the flow of oil , or because saudi_arabia and other arab producers would feel obliged because of political pressure at home to cut exports to the united_states . r . glenn hubbard , chairman of the white_house 's council_of_economic_advisers , said the administration had examined the possible effects of a spike in oil prices caused by spreading unrest in the middle_east or an invasion of iraq . he said a surge in oil prices would probably not by itself have a large effect on the american economy . but he said it was more difficult to assess the possible effects on consumer and business confidence . one of the lessons of the gulf_war , he said , was that consumer confidence recovered once the united_states made clear that it intended to expel iraqi forces from kuwait and guarantee the security of the saudi oilfields . in november , mr . bush ordered that the government 's strategic petroleum reserve be filled to capacity . a review of the reserve 's delivery schedule shows that many of the largest monthly deliveries are between september and january , another reason to put off any offensive against iraq to early next year . ''we want to be in a position to go into the markets if speculators begin bidding up the price of oil , and settle them down fast , '' one official said . a nation challenged the military.

lead the fixed_income securities market appears poised for another advance this week , as the prospects for a slower economy grow and fears of further weakness in the dollar wane , analysts say . the fixed_income securities market appears poised for another advance this week , as the prospects for a slower economy grow and fears of further weakness in the dollar wane , analysts say . indeed , the bond_market 's surge on friday strikingly indicated that credit market participants no longer see the softening dollar as their major concern . analysts viewed this development as the most significant factor in a rumor plagued week of volatile price swings . on thursday , the bond_market was momentarily unsettled by a rumor that president_bush had been shot . on friday , the talk was that the federal_reserve would cut its 7 percent discount_rate after the close , prompting banks to reduce their prime lending rates this week . rumors prompt markups the rumors , though baseless , prompted government securities dealers to mark up prices sharply and buy out of their short positions . as a result , the benchmark treasury long bonds , the 8 7 8 percent issue due 2019 , was up 1 18 32 on the week . in dollar terms the gain represents a rise of about 16 for each 1 , 000 of the bond 's face value . at the short end of the treasury market , the discount_rate on 90 day bills fell 7 basis_points , to 8 . 07 percent . ''leaving aside all the crazy rumors , prospects for the bond_market continue to be bright , despite the downturn in the dollar , '' said philip braverman , executive director and chief economist at irving securities inc . , during an interview on friday . no easing of rates expected mr . braverman said that friday 's report of a 4.2 percent drop in durable_goods_orders in may and thursday 's revised report on first quarter gross_national_product provided further evidence that the economy is weakening . he predicted that coming economic reports would confirm the trend . ''the may leading economic indicators , due out next wednesday , should show a decline of 1 percent , erasing the eight tenths of 1 percent rise in april and keeping this series essentially flat since the turn of the year , '' he said . but mr . braverman emphasized that he did not expect any aggressive easing of interest rates by the federal_reserve until it had still more economic data in hand . edward s . hyman jr . , vice chairman at c . j . lawrence , morgan_grenfell inc . , also doubts that the fed is about to ease . ''while we do n't believe the fed wants the dollar to rise too high , it does n't want it to become too weak , '' he said . ''thus we still believe the dollar is headed higher , partly because money growth has been slow . the fewer dollars there are in circulation , the better it is for the dollar . '' unemployment claims cited mr . hyman added ''there should be no doubt that the economy is slowing , and this fact will gain more definition over the next 12 months . aside from the more visible data , claims for unemployment_insurance jumped by 326 , 000 in the latest week , compared with the recent average increase of 290 , 000 . '' with the economy showing a downward bias and the inflation_rate declining with the economy , the stage is set for a firmer dollar and lower interest rates , he said . ''we ca n't predict when interest rates will turn sharply lower , but we would n't be surprised to see the yield on the long bond at 7 1 2 percent by next spring or even earlier , '' mr . hyman added . stephen d . slifer , senior vice_president at shearson_lehman government securities inc . , pointed out that even a passive stance by the fed might lead to falling interest rates , given the strong signs that the nation 's g.n.p . will continue to grow at a modest rate in the current and third quarters . worry about consumer shift ''what bothers me is that consumers may seize upon the lower interest rates to resume buying , '' mr . slifer said . ''our economy has been slowing largely because consumers have tightened the grip on their purses . '' despite the lagging demand for credit , the fed has not been able or willing to cut the federal funds rate , the basic cost of credit , which ranged last week between 9 1 2 percent and 9 3 4 percent , considerably higher than rates on bills and other short term instruments . but mr . slifer attributed the relatively high funds rate to heavy outflows of reserves from banks by corporate and individual taxpayers . the treasury 's total tax bite from corporate taxes and individual estimated tax payments in the latest week soared to 51 . 1 billion from 15 . 6 billion the week before . credit markets.

stocks traded higher here today . at the close , the nikkei index of 226 issues was up 135 . 61 points , or 0 . 76 percent , at 18 , 016 . 44 . on friday , the nikkei fell 90 . 57 points , or a half percent .

lead a secret document prepared after a high level meeting in beijing this spring says the chinese_communists intend to use the release of political_prisoners as one of their few available ''cards'' to influence american policy toward china . a secret document prepared after a high level meeting in beijing this spring says the chinese_communists intend to use the release of political_prisoners as one of their few available ''cards'' to influence american policy toward china . ''we do not have many cards in hand'' for pressuring the united_states , said the document , which was made available by xu lin , a chinese diplomat who defected from the embassy in washington last week . among these few bargaining chips , it said , are ''the release of political_prisoners , '' the resumption of the fulbright exchange program and the acceptance of peace_corps volunteers in china . the latter two steps were agreed to in april . ''we should not make our positions public too quickly so that the u.s . government will be kept in the dark , '' the document cautions . washington also has a major card in its hand , the document notes , with president_bush 's having to decide whether to renew china 's most favored nation status by june 3 . the reasoning behind the document may help explain china 's announcement yesterday that it has released 211 people jailed for taking part in the democracy movement last year , including several of the leaders . the document contains the conclusions of a special meeting called by the state education commission in beijing in march on how to deal with china 's 42 , 000 students in united_states , most of whom it acknowledges have turned against the communist government . the document says it was prepared by he dongchang , the deputy head of the commission , and was approved by prime_minister li_peng . among those taking part in the meeting were officials from the foreign ministry , the communist_party propaganda department , the ministry of public security and the ministry of national_security as well as chinese diplomats stationed in the united_states . the participants in the meeting paint a gloomy picture of the state of american chinese relations . ''at present , the sino american relationship has plunged almost to the bottom , as low as it was after the 'june 4 event , ' '' the document says , using a euphemism to refer to the killing of several hundred civilians by troops on june 4 in beijing . washington , it notes , ' 'did not respond strongly to the lifting of martial_law'' in beijing in january . moreover , the document says , the state_department 's harshly worded report about the condition of human_rights_in_china , released in february , ''brought new strains to bilateral_relations . '' ''we cannot expect that the relationship will improve in the near future , '' it said . although mr . bush has come under heavy criticism in the united_states for not pressing china harder after the military crackdown last year , the document says there is actually not that much difference between mr . bush and his opponents , who have called for tougher sanctions . ''the two sides share the same intention , and the difference lies in the assessment of the situation , '' the document says . but , it adds without elaboration , ''we can make use of the difference between the two sides . '' the document says the protests last spring were a ' 'disaster'' for china 's universities , with only a third of the country 's colleges not becoming involved in the democracy movement . another document also made available by mr . xu , the defecting diplomat , said the situation was even worse among chinese students in the united_states . according to this report , sent by the state education commission to the chinese embassy in washington , 10 percent of china 's students here ''actively participate in activities against our government'' and 70 to 80 percent plan not to return to china . in addition , the report says , ''there are about 100 core anti government activists'' who should not be allowed to return to china . the first document says the embassy should adopt a ''life and death'' struggle against dissident chinese students in the united_states . mr . xu , who is 33 years old , was a third secretary in the education section of the chinese embassy . he said at a news conference last week that he had defected after learning he was under suspicion and was to be sent home .

stocks on the tokyo_stock_exchange were off slightly in early afternoon trading today . the nikkei index of 225 issues was down 45 . 9 points , or 0 . 17 percent , to 27 , 146 . 91 .

on a club filled with veterans and professionals , they call midfielder tiffany roberts " the little one . " it 's an affectionate pet name for the 5 foot 3 inch high_school senior from san_ramon , calif . at 17 years of age , she has earned the right to suit up for the defending world champion united_states women 's soccer team , and she played all 90 minutes in tonight 's 1 0 victory against china . the triumph , before a sellout_crowd of 6 , 000 at yurchak field at rutgers_university , gave the united_states a 2 0 record in the chiquita cup tournament . roberts is a glimpse of the future on a team dominated by stars and determined to win the second fifa women 's world championship in sweden next spring . gaining notice " women 's soccer is gaining popularity , especially after the world_cup , " roberts said . " people are starting to realize what we did in 1991 and what that means . " what the united_states did four years ago was win the first ever world soccer championship . now the americans are tuning up to do it all over again . midfielder julie_foudy scored the game 's lone goal , on a corner_kick . the chinese goalie , zhong honglian , went airborne for the ball and missed . the ball was kicked toward the goal , but defender wen lirong stopped it right on the goal line . when she tried to clear it , she sent the ball into a wall of americans , and foudy kicked the ball in at the two minute mark . china , which beat the united_states by 2 1 at the world university games final last year in hamilton , ontario , had its best chance in the 42d minute on a breakaway by shi guihong that was smothered . international experience the chiquita cup , a four team , round_robin international tournament , provides the united_states with preparation for its trip later this month to montreal , where it will seek to qualify for the next world_championships . the united_states won its opening match , beating germany , 2 1 , on sunday . norway is the fourth country in the tournament , and it faces the united_states on sunday in worcester , mass . , for the final game of the tournament . tonight , the united_states botched a few prime scoring chances . " we 're happy with how we are playing , but we need to work on our chances up front , " said michelle_akers stahl , the team 's leading_scorer . " we should have finished those . " after the chiquita cup , the american squad will trim its roster and prepare for the concacaf qualifying championship aug . 13 21 in montreal . the united_states is considered to have an excellent chance at repeating as world champions . nine of the players on the 1991 championship team are on the current roster . since the national team was formed in 1985 , the united_states is 61 25 6 . an intriguing team but this year could still be intriguing . defender joy_fawcett gave birth to a girl in may . akers stahl has been fighting mononucleosis for a year now , and suffers from epstein barr syndrome , so she does n't even enter the game until late in the first half . anson dorrance , the legendary coach at north_carolina , will step down after concacaf , and tony_dicicco , the assistant coach , will take over . " this is the first tournament in a few years where we have had everyone together , " said foudy . " things are starting to finally come together , and this team always seems to peak at the right moments . " soccer.

the new york civil_liberties union plans to sue the police department today in an effort to bar officers from using certain tactics to control large protests . the group said yesterday that it planned to file three lawsuits challenging five tactics that it said the police had been using at_large demonstrations like the antiwar rally in manhattan last february . the suits are being filed in federal district court in manhattan in preparation for protests planned during the republican_national_convention , which will be held at madison_square_garden from aug . 30 to sept . 2 . in its suits , the civil_liberties group outlines its criticism of the tactics , which it says were used during the february rally , and claims that they violated protesters' legal rights . the tactics include the use of mounted police officers , who the group said charged at protesters trying to join the rally and injured them . the group also said the police used barricades to restrict access to demonstration sites while failing to provide information about alternative means of access . the suits will also cite the department 's use of interlocking metal barricades , or pens , in which protesters say they were trapped during the demonstration and widespread searches , which the group says were conducted without justification . the plaintiffs also say that the police detained demonstrators for many hours in vans without access to bathrooms or food after arresting them on minor charges . the police department has declined to comment on the suits until officials have a chance to review them . but in a recent interview , police officials defended their handling of large demonstrations and their plans for the protests against the republican convention . ''the vast majority of demonstrators here will be peaceful , '' commissioner raymond w . kelly said last week . ''they 'll want to make a statement . and we want to help them do that . there will be some , we believe , that will be here to cause problems . '' a spokeswoman from the city corporation_counsel 's office said that it had not seen the lawsuits , but would review them closely when it had . all three suits are being filed jointly by the civil_liberties group and individual plaintiffs . one lawsuit is being filed with an 80 year old protester , jeremiah gutman , who said the police had prevented him from joining the february demonstration and would not offer him information on how could reach the rallying point . the suit claims he was injured when mounted police rode into the crowd where he was standing . in the second suit , ann stauber , 60 , of manhattan , who uses a wheelchair , says she tried to join the demonstration but was directed into a pen and forced to stay there for hours , even though she explained that she is diabetic and needed to check her blood_sugar . in the third suit , jeremy conrad , 27 , a brooklyn law student , says that when he had complained to officers that the crowd could not move , he was beaten by officers and detained for seven and a half hours in the back of an unheated van without access to food , water or a bathroom . ''these are not unique stories , '' said chris dunn , a lawyer from the civil_liberties union , which plans a news conference on the suits today . ''tens of thousands of protesters were simply trying to attend a peaceful , lawful demonstration . ''

a public_high_school english teacher in the bronx had sex with several teen_age girls in sessions that included using alcohol and drugs , watching pornographic films and making videotapes of their encounters , the authorities said yesterday . the teacher , raymond farrell , 33 , was arrested in the principal 's office at evander childs high_school after having been summoned there when police officers from the 49th precinct arrived , according to a spokeswoman for edward f . stancik , the special commissioner of investigation for the new york city school_district . the spokeswoman said mr . farrell had taught at evander childs , 800 east gun hill road , for only three months . before that , he taught at william h . taft high_school at 240 east 172d street in the bronx for three years , the spokeswoman said . at least five girls , 13 to 16 , are believed to have been involved in the sexual activities , mr . stancik 's office said . at least some of the girls are believed to be students at taft high_school . the office of the bronx district_attorney , robert t . johnson , said last evening that it was drawing up charges that include rape , promoting a sexual performance by a child and endangering the welfare of a child . mr . farrell , who was being held last evening at the 49th precinct station house , may also face drug charges , the prosecutor 's office said . a board of education spokesman , dave begel , said mr . farrell had come under scrutiny last march . at that time , mr . begel said , the board 's office of special investigations investigated complaints that mr . farrell had made inappropriate remarks and gestures in class . the office found evidence supporting the accusations , which had been forwarded by mr . stancik , and a letter of reprimand was placed in mr . farrell 's file , mr . begel said . but the office could not substantiate an anonymous accusation that he had sexual_contact with a student , mr . begel said . the authorities said two videotapes were seized from mr . farrell 's home at 920 11 baychester avenue in the bronx , and that a search for more was under way . " we 're not assuming that there are only five students involved , " mr . stancik said . " we 're looking for other victims . " mr . stancik 's office said mr . farrell sometimes had sex with one girl while the others watched , and that he sometimes videotaped the sexual encounters so that he and the girls could watch them together . while the inquiry was still developing last evening , mr . stancik 's spokeswoman said , investigators believe mr . farrell may have had sex with four girls but stopped short of intercourse with the fifth . he reportedly refers to one of the five , who is now 18 , as his girlfriend , the spokeswoman said . mr . farrell 's arrest reportedly came about as a result of a robbery in late november in which he was the victim . although details were not clear , it appeared that he had been tied up and gagged in his apartment and robbed by male acquaintances of the girls he was seeing . a neighbor reportedly saw mr . farrell 's door open , looked in to see him tied up , then called the police . in the course of tracking down the robbers and the girls , the police reportedly heard accounts of sexual activities at mr . farrell 's apartment . school board officials said mr . farrell was hired in 1987 , had attained tenure and was paid 29 , 600 a year . he graduated from the bronx_high_school_of_science in 1980 and from the citadel , a military academy in charleston , s.c. , in 1984 , the officials said . he told his employers that he had once been a clerk for a prominent new york city law_firm .