n110  2105  04 Feb 85
BC-ECON-MESSAGE
(Newhouse 022)
Embargoed against release before 12 noon EST Tuesday
By SUSAN B. GARLAND
Newhouse News Service
    WASHINGTON - The Council of Economic Advisers Tuesday warned that
reducing the deficit was urgent, and said it preferred spending cuts
over taxes to accomplish that goal.
    But Reagan's chief economic advisers also said in their annual
report that a tax increase could be necessary if federal spending
continues at its current share of the gross national product.
    ''The major item of unfinished business is the establishment of
long-run fiscal equilibrium, which requires a much lower budget
deficit and assurance that the government expenditure share of GNP
does not continue to increase,'' the report said.
    The report said that ''reducing federal borrowing is urgent,''
because borrowing increases future interest payments that must be
financed by either reducing noninterest spending or raising taxes.
    The council's report was sent to Congress Tuesday along with the
Economic Report of the President. Both documents were sent to Capitol
Hill the day after Reagan delivered his fiscal 1986 budget to
legislators.
    The council report did not say what it meant by a ''much lower''
deficit; Reagan's budget proposal calls for a $180 billion deficit in
1986, compared with an estimated $222 billion deficit in the current
fiscal year. Several private economists predicted this week that
Reagan's economic assumptions were too optimistic and that future
deficits would be larger than he predicted.
    The economic advisers - Acting Council Director William A. Niskanen
and William Poole - said they prefered spending cuts over taxes
because ''reducing the growth of federal expenditure is more likely
to contribute to sustained economic growth'' while tax increases
could constrain growth.
    But the advisers said tax increases may be necessary at some point.
    ''If the American people prefer that federal expenditures be
restrained to about 20 percent of GNP, no increase in taxes is
necessary,'' the report said. ''If they prefer the current share of
about 24 percent, a substantial increase in tax receipts is necessary
at some time.''
    Reagan's budget estimated federal spending as a share of GNP in
fiscal 1986 would be 23.2 percent, compared with 24.8 percent in the
current fiscal year. By 1990, the federal spending share of GNP would
decline to 20.9 percent.
    Niskanen and Poole said Reagan had set out a ''clear strategy'' to
restrain the growth of federal spending and reduce borrowing:
economic growth, reducing noninterest spending below the rate of
economic growth, broadening the tax base to permit further tax cuts
and increasing taxes ''only as a last resort.''
    Pointing to progress in inflation, interest rates, productivity and
business investment, the council reported that the nation has ''every
reason to look forward to continuing economic expansion.'' It
dismissed predictions by some private economists of a recession by
early next year.
    ''Many of those who predict another recession starting this year or
next seem to do so from the view that a business expansion has a
natural life, after which the economy will inevitably turn down,''
the report said. ''In fact, the evidence suggests that the
probability of the onset of a recession is only weakly related to the
age of the expansion.''
    In his economic report, Reagan reiterated his support of a measure
to authorize the president to veto individual line items of major
spending bills and of a proposed constitutional amendment that would
require a balanced federal budget.
    The council said approval of such as amendment ''would be a
recognition that each generation may need to bind itself to
responsible fiscal decisions in the interests of the current and
future American community.''
RW END GARLAND
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 0004est
n111  2117  04 Feb 85
BC-ADVISORY-newhouse-closer
    The Newhouse News Service can be reached at 202-383-7800.
    
    
NEWHOUSE NEWS SERVICE REPORT OF MONDAY, FEBRUARY 4, 1985
    
    
WASHINGTON
    
    BUDGET (Schwed - Newhouse) Congressional leaders of both parties say
they will approve less for defense and more for domestic programs
than President Reagan is asking in his $974 billion budget. 650.
(Newhouse 020).
    
    REGAN (Benson - Newhouse) Former Treasury Secretary Regan takes over
as White House chief of staff at a time when President Reagan needs
all the help he can get in persuading Congress to accept his new
budget and in achieving an arms control agreement with the Russians.
650. (Newhouse 021).
    
    OFFSHORE-OIL (Kahler - Newhouse) The nation's fledgling Atlantic and
Pacific offshore oil program falls victim to declining world oil
prices and a glut of crude which has made it uneconomical to drill in
the deep waters of the outer continental shelf. 800. (Newhouse 007).
    
    CONTACT-LENSES (Young - Newhouse) Gas-permeable lenses are the
fastest-growing segment of the competitive contact-lens business.
They are rapidly driving traditional hard lenses from the market.
Will gas perms or soft lenses dominate? 700. (Newhouse 001).
    
    ECON-MESSAGE (Garland - Newhouse) The president's Council of
Economic Advisers ignores the naysayers and predicts continued
economic expansion in the next few years. Embargoed against release
before 12 noon EST Tuesday. 600. (Newhouse 022).
    
    SCIENCE-BUDGET (Young, 2D story - Newhouse) President Reagan's new
budget treats federal research and development efforts well overall.
But whether Congress will go along with the White House's choices of
winners and losers remains an open question. 500. (Newhouse 016).
    
    
DOMESTIC
    
    RADIOACTIVE-WASTE (Morris - Newhouse) A visit to the nation's
largest burial ground for low-level radioactive waste. From Barnwell,
S.C. For weekend use. 1,200. (Newhouse 004, 005).
    
    RADIOACTIVE-CONTAM (Morris, 2D story - Newhouse) The nuclear
industry's track record for disposal of low-level radioactive waste:
three sites closed because of contamination problems; three sites
spared major problems so far. Undated. With ''RADIOACTIVE-WASTES,''
for weekend use. 450. (Newhouse 006).
    
    HOLLIDAY (Evans and Rutti - Newhouse) A lot of people considered
themselves friends of Cleveland School Superintendent Frederick
Holliday, who killed himself last week. This sharecropper's son lived
a life once described as a ''triumph over every kind of adversity.''
In the end, no one seems to have really known him. From Cleveland.
1,400. (Newhouse 017, 018).
    
    
COMMENTARY
    
    PIKE-BUDGET (Pike - Newhouse) After four years in office, it is a
bit late for President Reagan to blame Congress for the budget he is
presenting them. From Washington. Pike column, for Wednesday use.
750. (Newhouse 008).
    
    CITY-BUDGET (McLaughlin - Newhouse) President Reagan's budget
message to New Yorkers is that Washington is getting out of the
business of redistributing the money it collects among the states.
From New York. New York, New York - a column of commentary. 800.
(Newhouse 019).
    
    
ENTERTAINMENT
    
    HAMILTON (Wisehart - Newhouse) If living well is the best revenge,
then George Hamilton is one up on everybody. A bad actor? Yes, he
agrees - So what? From Los Angeles. Television column, for Wednesday
use. Embargoed in California. 800. (Newhouse 003).
    
    MOVIES-HURT (Freedman - Newhouse) British actor John Hurt, who
co-stars in the new film adaptation of ''1984,'' says the movie is a
serious and faithful rendition of the Orwell classic with an
excellent performance by the late Richard Burton. From New York. Film
column, for weekend use. 900. (Newhouse 011, 012).
    
    REVIEW-''TUFF'' (Freedman, 2D story - Newhouse) ''Tuff Turf'' is a
lurid, rock-laden melodrama about a Connecticut preppy battling
bullies in a Los Angeles school. Undated. Film review, for use when
''Tuff Turf'' opens at local theaters. 400. (Newhouse 013).
    
    MONROE (Carlton - Newhouse) Bill Monroe, the 73-year-old ''Father of
Bluegrass,'' says he is glad to be on the road again after cancer
surgery. Undated. 750. (Newhouse 014).
    
    
SPORTS
    
    WRESTLING (Lubrano - Newhouse) Pro wrestling fans are not typical
sport spectators. When the bell rings, they seem to lose vital parts
of their minds. From Cleveland. 750. (Newhouse 002).
    
    SPORTS-KNIGHT (Izenberg - Newhouse) Bobby Knight is in the worst
trouble of his career. Losing, it seems, is the biggest sin. Undated.
Sports column, for Izenberg subscribers only. 800. (Newhouse 009).
    
    SPORTS-FLUTIE (Izenberg, 2D story - Newhouse) The New Jersey
Generals are set to sign quarterback Doug Flutie Tuesday, but can he
play well enough to carry an entire league? From New York. Sports
column, for Izenberg subscribers only. 850. (Newhouse 015).
    
    
LIFESTYLE
    
    FASHION-NEWMEX (Gilmore - Newhouse) If Calvin Klein and Ralph Lauren
have rediscovered New Mexico, can the rest of the world be far
behind? From New York. 650. (Newhouse 010).
    
GOOD NIGHT FROM THE NEWHOUSE NEWS SERVICE
    
    
RW END
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 0016est
n112  2128  04 Feb 85
BC-TAX-VIII 2takes
(8th in a series of 12 on preparing 1984 tax returns)
By GARY KLOTT
c.1985 N.Y. Times News Service
    NEW YORK - For many Americans, finding ways to justify writing off
trips, meals, parties, a portion of the house and all sorts of other
expenditures as business expenses is a challenge.
    And indeed, business-related deductions can be quite lucrative. But
the rules are strict and the territory is a favorite stomping ground
for Internal Revenue Service auditors who look for business
write-offs that are, in reality, more personal in nature.
    But if a substantial business connection can be drawn, the cost of a
trip, a night on the town, lunch at the Four Seasons or even a room
in one's house may qualify for a deduction.
    People who run their own businesses or operate sideline businesses
have greater opportunities for business deductions than do employees.
But employees are entitled to deduct many types of out-of-pocket
expenses incurred for their job or while trying to land a better one.
    The list includes union dues, subscriptions to trade journals, dues
to professional associations, small tools, uniforms and business
phone calls made at home.
    Expenses incurred in finding a new job are deductible, but only if
it is a job in the same line of work. Similarly, the cost of night
school is deductible - but not if it leads to a different career. The
law stipulates that the courses be only to maintain or improve skills
or to keep a job because the employer or the law requires it.
    The tax law also allows deductions for what can often be the more
pleasurable accouterments of business life, such as travel and
entertainment.
    Business deductions, obviously, cannot be claimed by employees for
expenses for which they were reimbursed. Further, the IRS and the
courts have repeatedly disallowed deductions in cases where employees
failed to file for reimbursement for an expense usually reimbursed by
the employer.
    ''The IRS has taken the position that if it is a reimbursable
expenditure and you choose not to file for reimbursement, they're not
going to allow it,'' said James Avedesian, director of the personal
financial planning practice at the accounting firm of Coopers &
Lybrand.
    But for executives whose companies expect them to pay their own way,
and for the self-employed, travel and entertainment expenses may well
qualify for deductions if specific guidelines are met.
    One can even spend some time vacationing on a business trip and
still be able to deduct the travel costs as long as the primary
purpose of the trip was business. If the primary purpose was
personal, no travel costs are deductible - although expenses related
to business transacted at the destination may be deductible. Overseas
travel is subject to more stringent rules that may require
transportation costs to be allocated between the personal and
business purpose.
    The tax law also recognizes that entertaining clients is part of the
traditional courting process that can lead to increased business.
Whether the entertainment is a Broadway play or a hockey game, the
expense may qualify for a deduction if it is either ''directly
related to'' or ''associated with'' the active conduct of business.
    Even if it is merely associated with business and not a word of
business is spoken at the event, the expense may still be deductible
if a substantial and bona fide business discussion takes place
directly before or after the function.
    The rules are not as strict for business meals. While there has to
be a business purpose for the meal, no business has to be discussed
before, during or after it as long as the restaurant is conducive to
a business discussion, with no distractions such as a floor show.
    But the IRS and the courts have taken a dim view of associates
taking turns in picking up each other's luncheon checks, or attaching
a business purpose to meals too often - as Richard R. Hankenson, a
physician in Des Moines, found out.
    Hankenson tried to deduct 174 lunches he had with other doctors and
nurses for the purpose of handling office matters and generating
patient referrals. The Tax Court ruled that while an occasional
luncheon meeting with practicing physicians may be deductible,
''meals consumed three to four days a week, 52 weeks a year,
constitute non-deductible personal expenses.''
    ''With an IRS audit there seems to be a line called the 'too-much'
line,'' said Avedesian. ''Even though a taxpayer may satisfy all the
requirements, the IRS says: 'It's too much. We know everybody has to
eat lunch and we're not going to let you deduct that much of personal
lunches.' ''
    People with a sideline business are also entitled to business
deductions, but the amount that can be claimed depends on the profit
motive. If the activity is primarily a hobby, such as growing
orchids, expenses can be deducted only up to the amount of income
generated. To deduct more, the taxpayer has to show that the activity
is more than just a pleasurable diversion.
    The IRS will presume the activity is profit-motivated if a profit is
made in two out of five consecutive years, or two out of seven if the
business involves raising horses. But if a business does not meet
this test, said Eli Gerver, a tax partner at the accounting firm of
Touche Ross & Co., taxpayers will have to provide some other evidence
that the activity is engaged in for profit.
    (MORE) nn
    
nyt-02-05-85 0028est
n113  2134  04 Feb 85
BC-TAX-VIII 1stadd
NYT NEW YORK: for profit.
    For those who have set aside a room or space in their home that is
used ''regularly and exclusively'' for business, there may be a
chance to claim deductions for depreciation, utilities and other
operating expenses attributable to that part of the house. Renters
can deduct a proportionate amount of rent. But the guidelines are
strict.
    The rules require that the room - or a dedictated space in the room
- be either the ''principal place'' of a business or serve as a place
to ''meet or deal'' with clients or customers.
    Either test is extremely difficult for most employees to meet. And
even if that hurdle is passed, there is still another: that use of
the home-office be for the convenience of the employer. Using a room
to do paperwork brought home from the office - even if required by
the employer - will usually not pass the other tests.
    Someone who moonlights, for example a schoolteacher who runs a
mail-order business from home as a sideline, can have a principal
place of business for each job. But a retail store owner who works at
the shop during the day and does paperwork at home at night would not
be entitled to a home-office deduction because the shop is considered
the principal place of business.
    Some employees, however, have been successful in claiming their home
as a principal place of business. In the latest court test, a
philosophy professor at City College, a part of the City University
of New York, claimed deductions for a home-office even though he had
an office on campus, which the IRS contended was his principal place
of business.
    But last December, 2d U.S. Circuit Court of Appeals sided with the
professor, David J. Weissman. Noting that he spent 80 percent of his
work time researching and writing at home, the court said the
professor needed to work at home because the campus office he shared
with several other professors ''does not provide the privacy needed
to undertake sustained scholarly research and writing.''
    For employees who cannot meet the principal place of business test,
the ''meeting or dealing'' with clients requirement has also become a
difficult test to meet. The courts have held that reaching customers
and clients by telephone from the home-office is not sufficient.
Rather, the courts contend, clients have to physically visit the
office.
    
    (Next: The IRA and Keogh retirement plans.)
    
nyt-02-05-85 0033est
n114  2137  04 Feb 85
AM-ZEALAND Addatend
NYT WASHINGTON: officials said.
    In New Zealand, Lange's action has become the most important
political issue. Lange, in a statement Friday, said that New Zealand
intended to remain ''a committed member of ANZUS.''
    ''More fundamentally, as a small democracy, it is an integral party
of the Western alliance,'' he said. ''As such, New Zealand will
continue to play its full part in sustainining those values of
justice, equality and individual liberty which New Zealand shares
with the United States and other Western countries.''
    He said that he believed it would be possible for New Zealand and
the United States ''to find a practical solution which meets the
interests of both countries.''
    ''I say that because I believe that given the warmth of the feeling
New Zealanders have for the American people and the enormous range of
interests we share, it would be absurd for this one narrow issue to
put off balance a relationship which draws its strength from the
partnership of two peoples who have stood together in times of war
and peace,'' he said.
    Jim McLay, the leader of the opposition National Country Party said
ANZUS was imperiled by Lange's policy.
    ''It's an obvious indication that the sharing of military
intelligence, access to technical information, the exchange of
military personnel are all unlikely to continue, certainly not in
their present form,'' he said.
    McLay said that with the United States and the Soviet Union
beginning to negotiate again on nuclear arms, it was very important
for the Western alliance ''to speak with one voice on nuclear
issues.''
    
nyt-02-05-85 0037est
n115  2147  04 Feb 85
AM-MOTORS
(BizDay)
By JOHN HOLUSHA
c.1985 N.Y. Times News Service
    DETROIT - The General Motors Corp. reported on Monday that it earned
$877 million, or $2.71 a share, in the fourth quarter of 1984. The
results were in line with analysts' expectations, although they said
a lower-than-anticipated tax rate gave the final period an artificial
increase.
    The fourth-quarter earnings were 32.4 percent below the $1.297
billion, or $4.11 a share, earned in the fourth quarter of 1983, with
the decline attributed to union work stoppages and production delays
related to quality problems. Harvey Heinbach, an analyst with Merrill
Lynch, noted that GM paid $45 million in taxes during the 1984
period, compared with $1.015 billion in the 1983 quarter.
    Neverthless, the strong first half of the year was able to lift GM's
earnings for all of 1984 to a record $4.52 billion, or $14.22 a
share, easily surpassing the $3.73 billion, or $11.84 a share, earned
in 1983. When the Ford Motor Co. and the Chrysler Corp. report their
earnings next week, the Big Three are expected to have combined
profits of between $9 billion and $10 billion, well in excess of the
$6.15 billion earned in 1983.
    In a separate announcement, GM said it was involved in ''preliminary
discussions'' with the Norwest Corp., a big Minneapolis banking
company, about acquiring Norwest's mortgage-banking subsidiary. The
purchase would be another step in GM's drive to become more
diversified.
    Sales for the quarter at GM were up slightly, to $20.88 billion,
from $20.82 billion in the 1983 quarter.
    GM's sales for the year also set a record at $83.89 billion, an
increase of 12.5 percent from $74.58 billion in 1983. As has been the
case for most of the year, dollar sales increases exceeded unit sales
increases, as buyers have shifted to larger, more expensive cars.
GM's worldwide unit sales increased 6 percent during the year, to 8.3
million cars and trucks.
    The GM statement said that strikes in West Germany, Canada, and the
United States reduced net income for the year by about $450 million.
In addition, it said, the strikes would reduce the profit-sharing
payouts to American workers to an average of $515 apiece, down from
the $1,000 projected when contract negotiations began last summer and
the about $600 paid for 1983.
    GM reported that its foreign operations had returned to
profitability with the exception of those in Europe, which reported a
loss of $291.1 million. All European auto makers have been suffering
as a result of an excess of production capacity and stiff price
cutting undertaken to hold on to market share.
    According to GM, the company earned $3.87 billion in the United
States, $762.2 million in Canada, $94.4 million in Latin America, and
$61.5 million in the rest of the world for 1984. For the previous two
years the Latin and other regions had been reporting losses.
    Despite the record profits, GM held its dividend at $1.25 a share,
although there had been some speculation in the financial community
that it would be raised. The decision is a signal that GM's
management is determined to continue with the restructuring of the
company, Maryann N. Keller, an analyst at Vilas-Fisher Associates,
said. ''They're saying that they have better things to do with the
money than simply pay out 50 percent of earnings,'' she said.
    And, even though 1984 profits were at record levels, they were below
what many analysts had been expecting at the beginning of the year,
even after the effect of the strikes was taken into account. ''They
have had production problems all year and are still not up to full
potential,'' Heinbach said. ''These results are not indicative of
what this company can do.''
    Most analysts said they expect GM's earnings for 1985 to equal or
slightly exceed those of 1984, particularly if the company can
recapture the share of the market lost during the strikes and while
some of its plants were closed for renovation.
    Nevertheless, GM executives will do well as a result of the
company's 1984 earnings. The company said 5,804 executives would
share a bonus pool of $224.1 million, or an average of more than
$38,000 each. Last year several GM executives were paid more than $1
million in salary and bonuses.
    In addition, the company said, $33.2 million went into a long-term
bonus pool reserved for the top 500 executives of the company. This
is added to the $26.5 million paid in the last year. Some of the
long-term bonus payments will be made early this year, the company
said.
    
nyt-02-05-85 0047est
n116  2158  04 Feb 85
BC-BUDGET-SCITECH
By PHILIP M. BOFFEY
c.1985 N.Y. Times News Service
    WASHINGTON - Research and development would be among the few
activities allowed to grow rapidly under President Reagan's budget
for the fiscal year 1986.
    The budget calls for increasing overall federal financing in
research and development by 12 percent, well above the estimated
inflation rate of 4.3 percent.
    In a year when the White House and Congress are trying to reduce the
federal deficit, the increase in total federal financing for research
to $59.7 billion, a record amount, from $53.2 billion reflects the
administration's often-stated belief that research contributes
significantly to military power and economic growth.
    But the budget also proposes wide disparities in spending among
areas of research. Military research is slated for a 21 percent
increase while civilian research is scheduled to decline, with the
result that military projects will consume 72 percent of the
government's research and development budget, the highest proportion
in more than two decades.
    Basic research in physics and engineering, which is deemed important
for both military equipment and economic growth, would go up.
Research in the life sciences would go down.
    Meanwhile, some programs popular with Congress or elements of the
scientific community, including the Sea Grant program, which supports
oceanographic and fisheries research, and the programs for research
in building and fires at the National Bureau of Standards, would be
eliminated under Reagan's proposals.
    In keeping with the need to cut spending, the administration said,
no major construction for research and development facilities would
begin in 1986.
    This year as last, the driving force behind increases in research
and development spending will be military projects financed by the
Defense Department or the Energy Department's nuclear weapon programs.
    The increased funds would chiefly support advanced work on strategic
missiles; new tactical aircraft for the Air Force, Army and Marine
Corps; a new attack submarine; a tripling of research on Reagan's
proposed defense against intercontinental missiles and a 16 percent
increase in basic research in a wide range of fields, such as
microelectronics and materials science, that are considered critical
for the development of weapon and communication systems.
    In contrast, civilian research at a wide array of federal agencies
would decline by 3.6 percent. With inflation estimated at 4.3
percent, the budget in effect calls for a reduction of about 8
percent in civilian research.
    As recently as the 1979 fiscal year, the federal government provided
more money for civilian than for military research. In 1980, at the
end of the Carter administration, military projects forged a little
ahead, and the gap has widened rapidly since then.
    The continued acceleration of military research will probably face
opposition from some in the scientific community, who worry that the
nation's technical manpower is being too narrowly employed in
military projects.
    Congress is expected to reduce the imbalance slightly by cutting
military programs below the level requested by Reagan and, perhaps,
by increasing civilian research programs in some popular areas, such
as health.
    In contrast to previous budgets, there would be no major increase in
federal support for basic research, which is usually performed in
universities and seeks to increase the store of fundamental knowledge
with no particular application in mind.
    A ''special analysis'' of research and development by the
administration stresses that ''scientific knowledge in fields such as
mathematics, physics, chemistry, biology and the various engineering
disciplines provides the foundation'' for ''a strong defense,
continued economic growth and an enhanced quality of life.''
    But the budget proposes a 1 percent increase in funds for basic
research, less than the projected inflation rate. That increase is
entirely due to military research; civilian basic research would
decline.
    Within these totals, basic research in physics and engineering would
go up 7 percent, chiefly at the Defense Department and two civilian
agencies. Basic research related to life sciences would drop 5
percent.
    The National Aeronautics and Space Administration would get a budget
increase of less than 1 percent. The manned space station program
would get $50 million less than originally expected, but is still to
be in operation by 1993 or 1994. The budget provides for launching
the space telescope and a mission to Jupiter in mid-1986.
    The Energy Department's research programs would drop by 2 percent,
reflecting cuts in research on nuclear fusion, and on coal, oil and
gas, as well as on solar and renewable energy resources and
conservation. The appropriation for research on nuclear fission, used
in existing nuclear power plants, would increase, largely for studies
of how to clean up wastes from uranium mining and similar
contamination.
    The research budget of the National Institutes of Health, the chief
supporter of biomedical research, is to be cut by 6 percent; the
Agriculture Department's by 6 percent and the Commerce Department's
by 29 percent.
    
nyt-02-05-85 0058est
n117  2208  04 Feb 85
AM-PUERTORICO
By MANUEL SUAREZ
c.1985 N.Y. Times News Service
    SAN JUAN, Puerto Rico - Ten former police officers are to go on
trial here on Tuesday on charges stemming from the shooting deaths of
two radicals in a police stakeout more than six years ago.
    The case has become a key political issue on the island. The
indictments of the officers last year helped lead to the defeat of
Gov. Carlos Romero Barcelo in the November election. Romero Barcelo,
leader of the pro-statehood New Progressive Party, called the police
action ''heroic'' at the time of the shootings and continued to
defend the officers through two federal and two Puerto Rican
investigations.
    In the trial scheduled to begin in Federal District Court on
Tuesday, the 10 former officers are accused of lying to the two
federal grand juries that investigated the killings in 1979 and 1980.
    The officers have also been indicted in the Puerto Rican courts on
murder charges in the killings. A date for that trial has not been
set.
    Federal District Judge Carmen C. Vargas Cerezo last week issued a
public statement asking government officials and legislators to
voluntarily refrain from commenting publicly on the case while the
trial is in progress. She also established rules to keep jurors and
witnesses away from the public during the trial, which is expected to
last several months.
    The case involves the July 25, 1978, shooting of two activists
working for Puerto Rico's independence, Carlos Soto Arrivi, 18 years
old, and Arnaldo Dario Rosado, 24, by the police atop Cerro
Maravilla, a 4,000-foot peak that is the highest point in Puerto Rico.
    The police laid an elaborate trap for the two after an undercover
agent said that Soto and Rosado would go to the mountaintop to
sabotage a television station's relay transmission tower.
    For five years, and through two federal grand jury and two Puerto
Rican justice department investigations, the police officers involved
held firm to the contention that they acted in self-defense after the
two radicals fired on them. Many administration critics, however,
continued to doubt the official account.
    Romero Barcelo vigorously defended the police officers. He accused
members of the press and others who demanded the appointment of a
special prosecutor of seeking to harm him politically.
    All the inquiries ended without indictments, but, in mid-1983, an
investigation carried out by the Puerto Rican Senate presented new
evidence that Soto and Rosado had surrendered unhurt after a brief
exchange of gunfire.
    In televised hearings, two police officers who testified after
receiving immunity from prosecution, said that the two radicals were
on their knees pleading for mercy when they were shot by a police
firing squad.
    A third officer told how the police purportedly developed the plan
to ambush the two men. A fourth officer, who also received immunity,
is to testify, along with the three others, for the prosecution at
the federal trial.
    The five-year statute of limitations had expired on the federal
civil rights laws under which the 1979 and 1980 grand jury
investigations were carried out, so the 10 officers were indicted on
the perjury charges.
    In the six years since the killings, the case was a key point of
dispute between the two major political parties here. It was an
important issue in 1980 when Romero Barcelo was re-elected as
governor by a small margin and his party lost control of both houses
of the Puerto Rico Legislature.
    The new Senate president, Miguel Hernandez Agosto, of the opposition
Popular Democratic Party, ordered an investigation of the deaths at
Cerro Maravilla.
    The dramatic disclosures that came out of the Senate's public
hearings were an important factor when governor Romero Barcelo lost
his bid for a third term to Rafael Hernandez Colon in November 1984.
    Judge Vargas Cerezo refused a request by attorneys for the police
officers to suspend the start of the trial on the ground that the
amount of publicity the case had received made it impossible to
select an impartial jury.
    In addition to the murder trial pending in the Puerto Rico courts,
and a $6 million civil suit filed in the federal court, a special
prosecutor was named last week to investigate who else might have
been involved in the alleged coverup.
    As a result of the Senate hearings, four former district attorneys,
including a former undersecretary of justice and a former chief of
the Puerto Rico Department of Justice's criminal investigations
division, also face disbarment charges before the Commonweath Supreme
Court.
    
nyt-02-05-85 0108est
n118  2214  04 Feb 85
AM-KOREA
Exiled Opposition Leader Demands Amnesty
By CLYDE HABERMAN
c.1985 N.Y. Times News Service
    NEW YORK - Kim Dae-jung, the exiled South Korean opposition leader,
said Monday that the South Korean government had taken a ''reasonable
attitude'' by announcing he would not be imprisoned when he returns
home from the United States on Friday. But he insisted that the
promise was ''not enough.''
    ''Fundamentally, I have been an innocent victim,'' said Kim, who has
been living outside Washington for more than two years. ''It is time
for the Korean government to completely change its attitude and give
me amnesty, to give me my civil rights.''
    South Korean authorities, although saying earlier Monday that they
now had no intention of jailing Kim, have not said exactly what they
would do with him. Officials have expressed concern that his arrival,
four days before legislative elections, could set off anti-government
demonstrations.
    It was understood that Kim would probably be allowed to go back to
his house in Seoul and to receive some visitors, but with his
movements monitored to ''provide a sort of protective shield.'' One
person familiar with South Korea's plans said the government would
likely take the position that the opposition leader was not under
house arrest but rather under ''a minimum protective measure.''
     Kim, South Korea's most prominent opposition figure, has spent most
of the last 14 years in prison, under house arrest or in exile. In
December 1982, while he was serving a 20-year prison term for a
conviction on sedition charges, he was permitted to come to the
United States, ostensibly for medical treatment.
    For the last few weeks his decision to return home has created both
a political and a diplomatic dilemma for the government in Seoul. His
arrival will come not only just before national elections but also at
a time when the United States and South Korea are preparing for an
April visit to Washington by President Chun Doo-whan.
    In a telephone interview from Washington, the 59-year-old Kim said
he assumed that Chun's desire to meet with President Reagan was an
important factor in the government's decision not to arrest him.
    He also said he had learned that the government had stepped up
surveillance around his house in Seoul and had distributed thousands
of leaflets that ''falsely attack my character.'' He complained that
he still remained under political ban, and urged the Chun government
to remove this ''longstanding, unjustified punishment'' from him and
other blacklisted politicians.
    
nyt-02-05-85 0114est
n119  2226  04 Feb 85
AM-GIBRALTAR
By EDWARD SCHUMACHER
c.1985 N.Y. Times News Service
    GIBRALTAR - The border between Spain and the British crown colony of
Gibraltar, closed in anger by Francisco Franco 15 years ago, was
fully reopened just after midnight Tuesday morning.
    Thousands of people gathered on both sides of the border in the cool
darkness below the looming white limestone of the Rock of Gibraltar
to watch as the iron gates were thrown open. Cars and pedestrians
then pushed through in both directions.
    For the Spaniards, it was a uniformly joyous occasion uniting
families on both sides of the border. But among the Gibraltarians
reactions were mixed. Some were festive and others merely curious,
but almost all were apprehensive for what the reopening, which has
deeply divided them, might bring.
    The opening is the result of an agreement in November between the
governments of Prime Ministers Margaret Thatcher and Felipe Gonzalez
that officials from both countries say will most likely change
forever the character of this colony, which lords over the strategic
Strait of Gibraltar.
    Negotiations on sovereignty called for by the agreement are
scheduled to open in Geneva, Switzerland, on Tuesday, a change from
what had been a longstanding British insistence never to discuss the
matter.
    Perhaps of more subtle but equally great import, the agreement also
allows Spaniards to freely own property and to work in Gibraltar,
opening the way to social movement that many of the 25,000
Gibraltarians fear will lead in time to the colony's practical
absorption by Spain.
    ''We cease to be an island tonigh,'' Joe Bossano, a Gibraltarian
political leader opposed to the agreement, said at a news conference
Monday night before the opening. ''We now have to insure that the
result will not be an erosion of Gibraltarian identity.''
    Franco closed the border in a vain attempt to starve the British off
Gibraltar, a mere 2.5-square-mile peninsula seized by Britain in a
war in 1704.
    The colony has little water and grows no food. The siege has forced
it to live off its wits and a tenuous lifeline by sea. Its water, for
example, comes by ship, from desalinization plants and from rain that
runs off huge concrete slabs built on the slopes of the Rock.
    Gonzalez, in a gesture intended to improve relations with Britain,
opened the border to foot traffic nearly 18 months ago, but that did
little more than allow Gibraltarians to cross over to buy fresh
vegetables.
    The move Tuesday opened the border to cars, trucks, people and
goods. But many of the details of how Spain will support the
peninsula, including matters as minor as taxi service, remain to be
negotiated at the Geneva talks, which are expected to last years.
    By controlling the shipping in and out of the Mediterranean and
acting as a land bridge between Africa and Europe, Gibraltar has been
a key to European history, from the invasion of the Moors in the
eighth century to the pinching off of the German fleet in World War
II. Spanish and British officials say that the agreement grows out of
changed historical circumstances today in which Spain is democratic
and a member of the North Atlantic Treaty Organization and is
negotiating to join the European Common Market.
    Spanish officials say that by the agreement they have won British
approval of Spanish entry into the Common Market. Though the
Conservative government of Margaret Thatcher insists that it will
abide by the wishes of the Gibraltarians, British officials say
unofficially they are willing to give up sovereignty.
    Spain's Socialist government, while sharing in Spanish emotionalism
over recovery of the peninsula, is in no hurry. This is in large part
because they face the reverse predicament in Morocco, where King
Hassan has said he expects to get sovereignty over the Spanish
enclaves of Ceuta and Melilla once Spain gets sovereignty over
Gibraltar.
    Foreign Minister Fernando Moran of Spain, architect of what he calls
his government's ''softly, softly'' approach to Gibraltar, said Spain
would accept a lease-back arrangement similar to what the British
have in Hong Kong or some other form of condominium allowing
Gibraltar self-government under titular Spanish sovereignty.
    ''What should be absolutely clear is that we do not pretend the
Gibraltarians, their children or their grandchildren should become
Spanish nationals or forgo their institutions,'' he said in an
interview published Saturday in The Observer of London.
    But many Gibraltarians fear Spanish economic inroads and changing
political intentions. Bossano said nearly 10,000 had signed a
petition opposing the agreement. He has called for independence as a
possible option and two weeks ago led his opposition Gibraltar
Socialist Labor Party out of the local Parliament when the
government, which enjoys only an 8-to-7 majority, approved laws
allowing Spanish workers and property owners here.
    But many other Gibraltarians hope the border opening will bring a
rush of tourism to help the depressed peninsula economy. The head of
the local government, Sir Joshua Hassan, said the laws would benefit
Gibraltar economically. But to insure sovereignty remains British he
was in Geneva on Tuesday.
    
nyt-02-05-85 0125est
n120  2228  04 Feb 85
AM-ETHIOPIA
c.1985 N.Y. Times News Service
    ADDIS ABABA, Ethiopia - Sudanese rebels freed two Swiss journalists
Monday. The two were captured in the Sudan almost a year ago, but
were thought to have been held in Ethiopia.
    Their release follows by a week the freeing of four other hostages -
two Frenchmen, one Briton and one Kenyan - who had been held by the
same rebel group, the Sudanese People's Liberation Army.
    The Swiss journalists, identified as Till Lincke, 32 years old, and
Astrid Hollenstein, 29, flew to Addis Ababa early Monday evening,
where they met briefly with the Swiss ambassador.
    The ambassador, Franz Birrer, described Lincke as looking
''reasonably well,'' but said that Miss Hollenstein ''is certainly
ill'' with stomach ailments and other maladies.
    Both, he added, had contracted malaria in their long captivity. The
two were taken prisoner in February 1984 in the southern Sudan, where
they were trying to report on rebel activities.
    
nyt-02-05-85 0128est
n121  2238  04 Feb 85
BC-BUDGET-EDUC
By MARJORIE HUNTER
c.1985 N.Y. Times News Service
    WASHINGTON - President Reagan's budget calls for a $2.3 billion
reduction in financial aid for college students, largely through the
elimination of federally subsidized loans to students from families
whose gross income is more than $32,500 a year.The
proposal also calls for limits on other forms of assistance.
    Under the guarantee program, students obtain loans from banks and
other lenders. The federal government pays the interest while the
student is in school, partly subsidizes interest payments after the
student leaves school, and guarantees repayment in the event of a
default.
    The administration's budget would reduce these subsidies, making the
loans more expensive for students and less attractive to lenders.
    The plan would permit students from families whose gross income is
over $32,500 a year to obtain federally guaranteed loans, but they
would have no interest subsidy.
    Congressional aides have estimated that about 30 percent of
guaranteed, interest-subsidized loans now go to students from
families at or above the $32,500 income limit.
    University and college officials say that the new limit would be
felt most strongly at institutions in the Northeast, especially
private colleges.
    Gary L. Jones, acting secretary of education, said on Monday that
proposed cuts would affect about one million students, but he said he
did not believe they would reduce overall college enrollment.
    In seeking to reduce the federal higher education budget by $2.3
billion, from the $6.8 billion in this year's budget, the
administration has also proposed these steps:
    -Placing a $4,000 limit on the amount a student may receive each
year from all federal sources, such as direct grants, loans, and
subsidized jobs. Some students have received as much as $11,000 a
year from these combined sources. Graduate students would be
particuarly affected, because of generally higher costs of graduate
study.
    -Denying grants, direct loans, and subsidized jobs to students from
families with incomes above $25,000 a year. About 5 percent of the
direct grants and more than 20 percent of supplemental grants,
subsidized jobs, and direct loans now go to students from families
with incomes exceeding $25,000. The government pays direct grants to
students; it gives funds for supplemental grants to colleges and
universities, which distribute them.
    -Requiring all students to provide at least $800 a year toward their
education in order to qualify for federal assistance.
    -Changing the basic rate of interest on guaranteed loans. The rate
for new loans is now 8 percent, but some outstanding loans, made
earlier, have rates of 7 percent and 9 percent. The budget would set
the interest on new loans at the rate of 91-day Treasury bills, to
more closely reflect the cost of money.
    -Reducing subsidies paid to lenders of guaranteed loans. While loan
recipients are in school, the government pays the basic interest
rate, the difference between that rate and that of Treasury bills,
and 3.5 percent additional. The administration proposal would reduce
this additional payment to 1.5 percent while the student is in school
and 3 percent when the student leaves school.
    -Establishing new regulations to control defaults.
    -Tightening rules to eliminate what the government considers abuse
by students who assert that they are no longer dependant on their
parents' income. The proposed rules would stiffen requirements for
these students and require all of them to have high school diplomas
or the equivalent.
    Congressional advocates of these cuts are expected to defend them by
pointing out that Congress will be asked to approve a $700 million
supplemental appropriation to this year's budget to finance
outstanding loans.
    While college student aid is the primary target of the president's
cost-cutting in the education field, some elementary and secondary
school cutbacks are also proposed, an overall $300 million reduction
from this year's $7.5 billion. Most such programs, however, would be
frozen at existing levels.
    Reagan, as he and other presidents have tried in the past, seeks to
sharply reduce aid to school districts with large numbers of children
whose parents live or work on federal property or serve in the armed
forces.
    The budget would cut by one-third the grants for technical
assistance for desegregation. The cut would be the first step in a
three-year plan to end this program. The program is unnecessary,
budget documents say, because ''states and school districts are
improving and expanding their own capability.''
    There would be selective cuts, too, for education of immigrants and
migrant children and for training teachers of the handicapped.
    
nyt-02-05-85 0138est
n122  2249  04 Feb 85
AM-AT&T
(BizDay)
By ANDREW POLLACK
c.1985 N.Y. Times News Service
    SAN FRANCISCO - The American Telephone and Telegraph Co. is
preparing to enter the videotex business in a joint venture with
Chemical Bank, sources in the industry said Monday. The venture is
also expected to include Time Inc. and the Bank of America as smaller
participants.
    The venture would provide electronic information services, such as
home shopping, news and ticket reservations, to consumers with home
computers or special terminals.
    It is expected that Chemical Bank's Pronto home banking service
would be a major part, at least initially, of the services offered.
    The venture would pose a challenge to Trintex, a joint venture
formed by CBS Inc.; Sears, Roebuck & Co., and the International
Business Machines Corp. That venture is planning to start a service
in the next year or two. ''Chemical and AT&T feel they need a joint
venture because of Trintex,'' one source said.
    Another group, made up of the RCA Corp., Citicorp and the J.C.
Penney Co., has also said it is considering entering the field.
    The participants in the AT&T venture have not yet signed a final
agreement, sources said, partly because AT&T has not yet secured
regulatory approval. Any move by AT&T into electronic information
services is likely to bring opposition from newspaper publishers, who
have argued that AT&T has an unfair advantage in providing
information electronically because it controls the communications
lines.
    The consent decree with the Justice Department that led to AT&T's
breakup included a seven-year ban on the company's engaging in
electronic publishing using its own transmission facilities. But the
decree defines electronic publishing in such a way that AT&T might be
allowed to participate in the venture because its stake would be less
than 50 percent.
    One Justice Department lawyer, who asked not to be identified, said
he could not determine whether the arrangement would be legal without
seeing details.
    An AT&T spokesman said the company had not reached any agreements
concerning a videotex venture. He did say the company was holding
discussions, but he would not identify the parties involved. ''We're
talking to a lot of people about putting our expertise together,'' he
said.
    A spokesman for Chemical Bank said the bank would have no comment.
    Videotex has so far been a disappointment commercially and there are
questions about whether a market will ever develop.
    The drawbacks of existing systems are cited by industry executives
as major reasons for the disappointing consumer response. The
systems, such as Knight-Ridder's Viewtron offered in south Florida,
use a special videotex communications code, developed by AT&T, that
allows graphics to be displayed on the screen with text. That code
slows the transmission speed of the information and requires that
consumers buy expensive specialized terminals to receive the
information.
    The new venture would abandon AT&T's own standard in favor of a
simpler transmission method that would allow all home computer owners
to use the service, greatly expanding the number of potential
customers.
    Sources said the companies were still engaged in discussions about
the structure of the venture. But one source said the companies would
put in a total of about $150 million. Chemical Bank and AT&T would
each own somewhere between 35 percent and 40 percent of the venture.
    Time and Bank of America, which are said to be somewhat less firmly
committed to going ahead with the project, would each own 10 percent
to 15 percent, sources said.
    All the companies have been involved in videotex in the past. Time
Inc. tried to develop an information service known as Teletext but
abandoned the effort. Chemical Bank and Bank of America both offer
electronic home banking services for personal computer owners.
    Chemical's system, one of the nation's first, now has 20,000
customers in 16,000 households. That is less than the company
expected but successful enough that the company wants to try to
expand the service nationwide. The proposed linkup with AT&T would
allow that.
    AT&T has long been interested in electronic information services and
provides the terminals used in the Viewtron system. By linking with
Chemical, AT&T gets a partner that already has a system in operation.
    AT&T apparently hopes that the specialized terminals it would
provide could be so inexpensive that they might be given free to
anyone signing up for the service. Also, the company undoubtedly
would like to see its 3B minicomputers used as the host computers for
the service, replacing the Tandem computers now used by Chemical Bank.
    
nyt-02-05-85 0148est
n123  2251  04 Feb 85
AM-MILITARY ADDATEND
NYT WASHINGTON: he said.
    The defense secretary found an important ally in Barry Goldwater,
R-Ariz., who is chairman of the Armed Services Committee. He had
hinted earlier that he might support a freeze on military spending.
    But Monday he echoed Weinberger's defense of bigger military
budgets. ''Now is not the time to be talking about major defense
reductions'' with the Soviet Union returning to arms control talks.
Goldwater blamed Congress as causing ''overruns and extravagances''
by using the military budget ''to enhance their re-election
prospects.''
    ''In defense, the problems of cost overruns, program instability and
forces unfit for combat that greeted the new administration in 1981
have, to a great extent, been overcome,'' Goldwater said. ''They are
achievements we should build on, not use as an excuse to do less.''
    
nyt-02-05-85 0150est
n124  2255  04 Feb 85
AM-TORTURE
By ELAINE SCIOLINO
c.1985 N.Y. Times News Service
    UNITED NATIONS - Twenty countries signed a United Nations convention
on torture Monday.
    The document is titled ''Convention Against Torture and Other Cruel,
Inhuman or Degrading Treatment or Punishment.'' The United States
supports the pact, but its signature has been held up by legal review
of the contents.
    It will go into effect after ratification by 20 countries. The
United States cannot ratify it unless the Senate approves.
    In addition to an investigatory mechanism under the United Nations,
the treaty, seven years in preparation, also accepts the principle of
''universal jurisdiction,'' which requires that torturers must be
either prosecuted in whatever country they are found or extradited
for trial elsewhere.
    The convention, adopted unanimously by the General Assembly on Dec.
10, defines torture as any act ''by which severe pain or suffering,
whether physical or mental, is intentionally inflicted'' for a
purpose such as obtaining information or a confession.
    Civil rights groups and a number of countries, including the United
States, feel that compromises watered down the enforcement powers.
    One rights group, Amnesty International, voiced regret that the
definition of torture excluded suffering resulting from legal
punishment under national legislation, for example, floggings and
amputations under Islamic law.
    Those who signed Monday were Afghanistan, Argentina, Belgium,
Bolivia, Costa Rica, Denmark, Dominican Republic, Finland, France,
Greece, Iceland, Italy, Netherlands, Norway, Portugal, Senegal,
Spain, Sweden, Switzerland and Uruguay.
    
nyt-02-05-85 0154est
n125  2304  04 Feb 85
BC-HOLLIDAY 1stadd
(Newhouse 018)
Evans and Rutti - CLEVELAND X X X character.''
    Call had known Holliday for the better part of a decade. Not only
were they professional colleagues, but they shared a love of flying.
In fact they probably spent as much time together above ground as
they did on it.
    In 1971, Holliday left Philadelphia to become deputy school
superintendent of the Ann Arbor, Mich., public school system.
    ''I can remember in the halls when the black kids formed on one side
and the white kids on the other. Freddy drew a chalk line across the
hall and said, ''The first sonofabitch that crosses this line gets
arrested. The only person who did was a black parent and she was
arrested,'' recalled Ted Heusel, an Ann Arbor radio personality who
was then a school board member.
    ''He believed the greatest opportunity to get out of the ghetto and
get a fair share of the American economic dream was through
education. That was his gospel,'' said Carl Neu, president of the
York (Pa.) Area Chamber of Commerce where Holliday spent his most
successful stint as a school administrator.
    ''Toward the end of his tenure here he invited the Chamber of
Commerce to have breakfast at his school,'' Neu said. ''I want to
tell you we went through that so-called urban school and there wasn't
any graffiti, the place was shining; but the bottom line was these
kids were getting tender, loving care. And in the end isn't that what
schools are supposed to be?''
    In his last public interview, several hours before he shot himself,
Holliday commented about children in the Cleveland public school
system:
    ''If I were a kid in Cleveland I think I would be very, very upset
to have people constantly say the school system's no good, which
basically means that the kids are no good. ... It must be awfully
hard to be somebody, to feel like you're somebody, in a system where
everybody's kicking you.''
    ''York was his home,'' said Robert Iosue, president of York College.
''He had friends here, the kind of people he could sit down and talk
to. I tried to get him to stay, but he had made up his mind. He said,
'You should move when things are going well and not wait until you
have all kinds of problems.'''
    Before his death Holliday made several oblique references to his
emotional turmoil during the last few days. But by then it was too
late and nobody was picking up on them.
    Another friend Mayor Richard L. Taylor of Plainfield, N.J.,
telephoned Holliday the night before Holliday killed himself.
    ''He kept referring to 'mindless dumb stuff' and 'petty
bickering,''' Taylor said. ''He kept focusing on being a stabilizing
force. I kept reminding him there are no messianic saviors in public
education.''
    Taylor added that if anyone had told him Holliday was about to
commit suicide, he would never have believed it.
    In his last interview, which was broadcast on the radio, Holliday
was asked if he was having problems with certain members of the
Cleveland school board. Holliday, the man whom everyone described as
articulate seemed to go to pieces:
    '' ... I don't deal in being at odds with anybody and I just don't
know of anybody that I'm at odds against. Now I might disagree with
you bit in terms of being at odds or having ill feelings - I don't
have any at all. But the behavior of the other folks; you're going to
ask and ascertain that. But anybody who has observed my behavior
since I've been here, I don't think a person in this city can say
that I'm at odds or I have behaved in such a way that it appears that
I have been at odds. ... I wouldn't say there isn't a problem.''
    A fellow school board member Stanley E. Tolliver was listening to
Holliday on the radio.
    ''If I didn't know it was him, I wouldn't have said it was him,''
Tolliver said. ''He wasn't fluid. He was usually a fluid, polished
speaker.''
    ''It wasn't the tigers who got Fred Holliday, but the jackals,''
said close friend Richard Call. ''Not the movers and shakers of
Cleveland. That isn't where his problems came from.
    ''They came from the myriad of people in the community, each with
their own personal, self-interested grievances. It's nickel and dime,
but put together it's overwhelming.''
BJ END EVANS and RUTTI
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 0204est
n126  2314  04 Feb 85
AM-CREDIT
(BizDay)
By MICHAEL QUINT
c.1985 N.Y. Times News Service
    NEW YORK - Interest rates were little changed Monday in quiet
trading as traders and investors waited for large new offerings of
Treasury and tax-exempt bonds this week.
    In advance of this week's new offerings, yields have substantially
increased from the lowest levels set last week. Treasury bond yields
are still equal to the levels of July 1983 but are more than an
eighth of a percentage point higher than the lows set in last week's
trading. Yields on long-term municipal bonds are up by a similar
amount.
    ''Since both the Treasury and municipal markets are approaching the
expanded new issue volume very cautiously, pricing should be more
generous than investors have seen in recent weeks,'' said S.E.
Canaday Jr., a vice president at John Nuveen & Co. ''The higher
yields do not insure good reception, but the chances for success are
certainly far better than if the market had charged into this week
with the lowest interest rates of the year.''
    After the sharp drop in Treasury note and bond prices last Thursday
and Friday, securities dealers seemed satisfied that yields were
close to levels that would attract investors to this week's auctions
of Treasury issues due in 3, 10 and 30 years. However, investor
demand Monday was not strong for outstanding or forthcoming issues of
notes and bonds.
    In advance of Tuesday's auction of new Treasury notes due Feb. 15,
1988, government securities dealers offered the notes on a
when-issued basis with a yield of 10.44 percent, down from 10.45
percent late Friday. The 10-year notes to be auctioned Wednesday were
offered at 11.33 percent, up from 11.30 percent, while the 30-year
bonds scheduled for sale on Thursday were offered at 11.13 percent,
up from 11.11 percent.
    In the Treasury bill market, traditionally a haven for
safety-conscious investors or those who are waiting for more a more
favorable environment to make long-term investments, demand was
strong at the regular weekly auction of new bills. Rates were up
sharply from a week ago, reflecting the general rise in short-term
interest rates that many analysts attribute to a slight adjustment in
Federal Reserve monetary policy.
    The Fed's policy seems to have encouraged an overnight rate for bank
loans in the federal funds market of around 8 1/2 percent in the last 10
days, up from about 8 1/4 percent in the three weeks ended Jan. 23.
    The new three-month issue sold at an average rate of 8.16 percent,
up from 7.76 percent a week ago, while the six-month issue averaged
8.30 percent, up from 7.97 percent a week ago. It was the first time
the three-month rate was above 8 percent since Dec. 10.
    Results of the bidding showed that the only bids accepted for the
six-month issue were those submitted with an 8.30 percent rate. Such
an occurrence means that few large orders satisfied all of the
Treasury's borrowing needs, dealers said. The pattern was similar in
the three-month bill, where the average and low prices equaled a rate
of 8.16 percent, very near to the high price, which resulted in an
8.15 percent rate.
    In the municipal bond market, prices fell slightly in sympathy with
the recent declines in the Treasury bond market. The supply of new
tax-exempt issues has been light so far this year but has increased
recently so that more than $3 billion of new issues are expected for
sale in the next 30 days.
    This week's largest new issue - a $500 million offering by the
Intermountain Power Agency - is expected to carry a maximum yield of
slightly more than 10 percent. Although many outstanding tax-exempt
issues are selling with yields of 10 percent or slightly less, a
higher yield is expected on the Intermountain issue because of its
large size. The agency will use proceeds to refund more than $400
million of 14 percent bonds, the seventh-largest issue of tax-exempt
bonds outstanding.
    New bonds by various issuers based in New York State will be in
ample supply this month, according to securities dealers and state
officials. Offerings expected this month include $450 million for the
Columbia Presbyterian Hospital of New York, $250 million for New York
Power Authority, $40 million for the State Energy Research and
Development Authority, an issue of state general obligation bonds,
and small financings for the Dormitory Authority and Housing Finance
Agency. In March, large bond sales are expected by New York City and
the State of New York Mortgage Agency.
    
nyt-02-05-85 0213est
n127  2324  04 Feb 85
BC-BUDGET-BENEFITS 2takes
By ROBERT PEAR
c.1985 N.Y. Times News Service
    WASHINGTON - President Reagan's budget for the fiscal year 1986
proposes sweeping new restraints on Medicare and Medicaid, deep
reductions in government subsidies to business and numerous cuts in
federal aid to state and local governments.
    In the budget sent to Congress Monday, Reagan recommended
fundamental changes in programs that serve millions of middle-income
families, such as veterans' health benefits, guaranteed student loans
and pensions for retired federal employees.
    David A. Stockman, director of the Office of Management and Budget,
said the president was proposing ''only modest adjustments'' in
health, education, welfare and social service programs intended for
low-income people.
    Those programs, he said, were ''wildly out of control'' before 1981
but were put onto ''a stable and well-managed path'' by laws passed
at the request of Reagan. As a result, he said, the programs ''are no
longer threatening the budget'' as they once did.
    However, critics of the administration said Stockman had understated
the newly proposed cuts in social programs.
    Robert L. Greenstein, a former Carter administration official who
now serves as director of the Center on Budget and Policy Priorities,
a private research organization frequently critical of Reagan, said
that ''the actual reductions proposed in low-income programs are
nearly twice as large'' as Stockman estimated.
    Various interest groups issued a torrent of statements criticizing
Reagan's priorities.
    Michael R. Lemov, executive director of the Food Research and Action
Center, denounced the president's budget as ''a thoughtless attack on
our most vulnerable citizens - low-income children, the elderly and
pregnant women.'' The National Council on the Aging said the ''Reagan
budget targets older persons for unfair cuts.'' And the National
Education Association charged, ''The education of millions of poor
and middle-class children would be critically impaired'' under
Reagan's proposal to trim spending for education.
    Stockman said the cuts in social programs, taken together, would
save $4.1 billion in 1986 and a total of $18.3 billion in 1986-88.
Even with such cuts, he said, federal spending for social programs
would grow from $87.5 billion in 1986 to $93.5 billion in 1988.
    Stockman acknowledged what his critics have been saying for several
days: that the savings proposed in the 1986 budget were just as big
as the cuts approved by Congress in 1981-82.
    At a briefing, Stockman said, ''This budget decisively attacks the
deficit problem because it proposes the largest multiyear spending
reductions ever proposed in a president's budget.''
    Stockman said the cuts in Medicare and Medicaid, the health programs
for the elderly and poor, would mainly affect ''providers and
vendors'' of services, rather than beneficiaries.
    Reagan wants to freeze Medicare payment rates for hospitals in 1986
at the 1985 levels. He proposes to do this by issuing a rule, rather
than by requesting legislation. However, Congress could pass
legislation to override Reagan's proposed regulation, which,
according to the administration, would save $1.8 billion next year.
    Officials at the Department of Health and Human Services said the
freeze was justified by the increased productivity of hospital
workers, the development of cost-saving technology, reductions in the
average length of hospital stays for Medicare patients and the slower
rise if health-care costs.
    But J. Alexander McMahon, president of the American Hospital
Association, which is meeting here this week, criticized the
proposal. ''Why penalize the hospital industry and elderly people,
who are the beneficiaries of Medicare, to finance huge increases in
national defense?'' he asked. ''It is completely unfair.''
    The Medicaid proposal would set a limit on federal grants to the
states for treatment of poor people. The limit, $22.2 billion, is
$1.3 billion less than current spending projections for 1986. The
ceiling would be adjusted each year to reflect inflation, as measured
by the medical care component of the Consumer Price Index.
    Under current law, there is no such limit. The federal government
matches state Medicaid payments, according to a statutory formula,
for all people who meet eligibility criteria set by the states.
    Together, Medicare and Medicaid serve 50 million people. Reagan
estimated that the proposed ''freezes and reforms'' would save $4.2
billion in Medicare and $1.1 billion in Medicaid in the next fiscal
year, 1986, and a total of $25 billion in the two programs in 1986-88.
    Nevertheless, the combined cost of the programs would continue to
grow, from $95 billion this year to $115 billion in 1988, according
to the budget.
    (MORE) nn
    
nyt-02-05-85 0224est
n128  2330  04 Feb 85
BC-BUDGET-BENEFITS 1stadd
NYT WASHINGTON: the budget.
    Reagan also proposed many cutbacks in what he called ''business and
commercial subsidy programs.'' He wants to abolish the Small Business
Administration, he wants to end lending by the Export-Import Bank,
which finances exports of goods made in the United States, and he
wants to curtail federal subsidies for certain periodicals and other
types of mail carried at reduced rates.
    In addition, Reagan proposes to charge food processors a fee for
government inspection of meat and poultry products. He wants to
eliminate federal subsidies for airlines serving small communities.
And he wants to end the subsidy for hydroelectric power generated at
federal dams and sold at reduced rates by such agencies as the
Bonneville Power Administration in Oregon.
    Under Reagan's budget, federal aid to state and local governments
would be reduced 5.9 percent, from $107 billion in the current fiscal
year to $100.7 billion next year.
    One of the most politically popular forms of federal aid is the
revenue sharing program, which distributes $4.6 billion a year to
39,000 counties, cities and towns. It was previously reported that
Reagan would let the program expire at the end of the fiscal year
1986, but he is now asking Congress to eliminate it at the start of
1986.
    The administration contends that revenue sharing does not serve ''a
targeted national purpose.''
    Reagan proposes to end all activities of the Commerce Department's
Economic Development Administration, which makes public works grants
to state and local agencies. The budget office contends that these
programs have added $9.4 billion to the federal deficit in the last
eight years as a result of bad loans and grants to ''weak and
wasteful projects.''
     Reagan wants to eliminate the Appalachian commission, which
promotes economic development in a 13-state region. He would end some
activities of the Tennessee Valley Authority, such as operating parks
and protecting forests and wildlife.
    Reagan also proposes a major revision of health-care benefits for
veterans. He asked Congress to establish a test of financial need for
those seeking care at hospitals and nursing homes run by the Veterans
Administration.
    Under current law, veterans become eligible for care at no charge
when they reach the age of 65 if space is available at Veterans
Administration facilities. Under the proposal, a veteran with income
of more than $15,000 a year would have to pay a portion of his own
medical expenses at a private institution before he could receive
care at no charge in veterans' hospitals and nursing homes.
    
nyt-02-05-85 0230est
n129  2340  04 Feb 85
AM-NEWSSUMMARY Undated
c.1985 N.Y. Times News Service
    
    The New York Times news summary for Tuesday, Feb. 5, 1985.
    
INTERNATIONAL
    WASHINGTON - New Zealand rebuffed Washington by denying a request
for a port visit by a Navy destroyer. The Reagan administration said
Prime Minister David Lange had ''definitively turned down'' the
request because Washington would not say whether the ship carried
nuclear arms. American officials said New Zealand's action threatened
the future of the ANZUS alliance.
    NEW DELHI - A spy scandal widened in India as a businessman was
quoted as having told a closed hearing that he had passed government
secrets to diplomats from East Germany, Poland and France. The
statement attributed to the businessman, Coomar Narain, was the first
specific reference to link Soviet-bloc governments to the espionage
case.
    BELGRADE - Three Belgrade dissidents were convicted on charges of
disseminating ''hostile propaganda'' against the state in the most
significant political trial in post-Tito Yugoslavia. The three
intellectuals were sentenced to terms ranging from one to two years.
    JERUSALEM - Shimon Peres voiced disappointment with what he
described as Egypt's failure to respond to his efforts to improve
relations between their countries. The Israeli prime minister added
that if Egypt's cool attitude toward Israel continued, there was a
danger that Israelis seeking peace with Egypt would become
discouraged.
    
NATIONAL
    WASHINGTON - Major cuts in domestic programs were formally proposed
to Congress by President Reagan. Opening a drive for a $973.7 billion
budget for the next fiscal year, Reagan struck a note of urgency for
the need to reduce the deficit, and defended his proposed buildup of
the military and reductions in many programs benefiting middle-class
Americans.
    WASHINGTON - Wide new restraints on Medicare and Medicaid were
proposed in the budget submitted to Congress by President Reagan.
Various interest groups issued a torrent of statements assailing his
priorities.
    WASHINGTON - A $2.3 billion cut in financial aid for college
students was urged in President Reagan's budget. The plan called for
the elimination of federally-subsidized loans to students from
families whose gross income is more than $32,500 a year.
    WASHINGTON - Military research would rise 21 percent and civilian
research would decline under President Reagan's proposed budget for
the next fiscal year. Total federal financing for research and
development would increase to a record $59.7 billion from $53.2
billion this year.
    NEW YORK - The space-based defense plan envisioned by President
Reagan is set to be the biggest research project ever. The proposed
5-year, $26 billion effort is said by Pentagon officials to dwarf
research for both the Manhattan Project, which developed the atomic
bomb in World War II, and the Apollo moon program.
    LANCASTER, S.C. - Three black churches were burned to the ground
within a few miles of each other last July in a rural area in South
Carolina and, hours later, two white men were arrested in the
burnings. The authorities feared retaliation. But instead both blacks
and whites pressed a statewide campaign that, over the last seven
months, has raised nearly $200,000 in donations to help rebuild the
churches.
    NEW YORK - The indictment of a police officer on manslaughter
charges in the slaying of a woman in a Bronx eviction dispute
prompted all 250 officers in the Police Department's Emergency
Service Unit to demand transfers. The officers, all of whom are
volunteers in a special unit trained for rescue work and for subduing
emotionally disturbed people, called on New York City's 18,000 police
officers to refuse to replace them.
    NEW YORK - Dr. Elliot M. Gross was accused by a New Jersey coroner
of misstating the cause of the 1983 death of a man who died in police
custody. The coroner, Dr. Joan Obe, said Gross, New York City's chief
medical examiner, had told her originally that the death was a
''classic case'' of strangulation. She said she learned only last
week that he had described the death on an autopsy report without
mentioning strangulation.
    
nyt-02-05-85 0239est
n130  2349  04 Feb 85
AM-HEDGECOCK
Closing Arguments in San Diego Mayor's Case
By ROBERT LINDSEY
c.1985 N.Y. Times News Service
    SAN DIEGO - A county prosecutor depicted Mayor Roger Hedgecock
Monday as an ambitious and unethical politician who, in financial
difficulties, conspired to obtain a ''massive infusion of funds'' for
his election campaign from J. David Dominelli, who is accused of
cheating investors of tens of millions of dollars.
    After a 21-day trial, the prosecutor, Richard Huffman, an assistant
San Diego County district attorney, began closing arguments in the
politically charged case. The crowd of spectators was so large that
Judge William L. Todd of the Superior Court decided to move the
proceedings into a much larger courtroom than the one in which
testimony had been heard.
    In their closing arguments, defense lawyers said they would
establish that no evidence had been presented proving that Hedgecock
had knowingly violated any laws. They said they would also show that
the mayor was merely one of several clients of Thomas Shepard, a
local political consultant, and that Shepard's firm was not
subsidizing the mayor's campaign.
    If convicted, Hedgecock would be required by California law to step
down as mayor of the nation's eighth-largest city. He could also be
sentenced up to four years for conviction on each of 13 counts in the
indictment.
    He is accused of one count of conspiring to violate state and city
laws limiting campaign contributions and 12 counts of perjuring
himself when he filed reports detailing contributions he had
received. The case is expected to go to the jury Tuesday or early
Wednesday after Judge Todd delivers unusually long instructions to
the jurors regarding complexities in the campaign financing laws.
    To convict Hedgecock, the jury would have to agree that he
consciously conspired with the others to knowingly violate the laws
limiting political contributions and that he intended to lie when he
did not report certain contributions in reports filed with the state
campaign finance regulators.
    The 38-year-old mayor denies any improprieties and has attributed
the decision to prosecute him to a vendetta by District Attorney
Edwin Miller, an old political foe, and the two local newspapers, The
San Diego Union and The Tribune. He contended that they had made him
a target because he was not affiliated with the conservative
Republicans who have long been highly influential in governing San
Diego.
    Opening his final argument, Michael Pancer, Hedgecock's attorney,
argued that the prosecution's case had been ''created by the
manipulation of facts; innocent acts have been twisted to appear
evil.''
     Hedgecock, a Republican former county supervisor who rose to
political prominence as an environmentalist, was elected mayor in
June 1983 in a special election held to fill the unexpired term of
former Mayor Pete Wilson after his election to the United States
Senate.
    Despite his indictment, San Diegans re-elected Hedgecock by a margin
of 3 to 2 last November in a race against a little-known political
newcomer. Afterward, he called his victory a triumph for neighborhood
organizations and recent migrants to San Diego over the local
conservatives.
    Hedgecock's legal problems stem from his close ties to Dominelli,
who is accused of defrauding investors of more than $60 million, and
Nancy Hoover, a political ally of Hedgecock and a former mayor of
suburban Del Mar, who lived with Dominelli.
    For more than two years, ending last spring, Mrs. Hoover and
Dominelli poured millions of dollars into San Diego cultural and
political affairs. A year ago investors began complaining a year ago
that Dominelli's concern, the J. David Co., was no longer paying a
promised 30 percent or more on their money, and he was forced into
bankruptcy. Law-enforcement officials contended that the couple's
largesse had been financed by investors' money.
    Prosecutors allege that Dominelli, Mrs. Hoover, Hedgecock and
Shepard, the political consultant, conspired to violate state
campaign finance laws by funneling more than $360,000 in illegal
contributions into the mayor's 1983 campaign through a consulting
concern founded by Shepard but financed by Mrs. Hoover and Dominelli.
    Hedgecock is also accused of failing to report a $130,000 loan from
Mrs. Hoover that financed remodeling of his home and of committing
other technical violations of a state law regulating certain
financial affairs of political candidates. nn
    
nyt-02-05-85 0249est
n131  2352  04 Feb 85
AM-HEDGECOCK ADDATEND
NYT SAN DIEGO: political candidates.
    Hedgecock testified at the trial that he was merely one of several
clients of the political consulting company financed by Mrs. Hoover
and Dominelli and that he received no special subsidy from it.
    He acknowledged that he might have been remiss in not reporting
certain financial information to the state authorities but depicted
the omissions as minor and unintentional.
    His lawyers contend that to convict Hedgecock the jurors must decide
that he was engaged in a conscious conspiracy with Dominelli and Mrs.
Hoover to violate campaign laws, and they contend the prosecutors
have failed to prove such a conspiracy existed.
    In his closing statement Monday, Huffman asserted that in 1981 the
group began conspiring to take over the city, even before Wilson had
vacated his job. Once Wilson defeated former Gov. Edmund G. Brown Jr.
for the Senate seat the next year, Huffman asserted, ''the faucet
turned on and the J. David money began to flow like water,''
disguised as a capital investment in Shepard's firm.
    In reality, the prosecutor contended, the funds were hidden
contributions to Hedgecock meant to circumvent regulations that
prohibit corporate contributions to candidates and limit individual
contributions to $250.
    
nyt-02-05-85 0252est
n132  0002  05 Feb 85
BC-BUDGET-RESUBMIT
By DAVID E. ROSENBAUM
c.1985 N.Y. Times News Service
    WASHINGTON - Many of the proposals to cut or eliminate domestic
programs put forth in the budget President Reagan sent Congress
Monday were recommended in the President's first term and were
rejected by Congress.
    In February 1981, a month after taking office, Reagan unveiled 84
proposals to reduce or eliminate federal programs. About 60 percent
of them were adopted in one form or another, according to the Office
of Management and Budget and private budget analysts. They were the
basis of what came to be known as the ''Reagan revolution.''
    Anti-poverty programs, for example, were scaled back, grants to the
states and communities that would enable them to hire the jobless
were eliminated, and many middle-income college students became
ineligible for government-backed loans.
    But Reagan did not succeed in all he set out to do. According to one
study, for instance, cuts in welfare might have been twice as large
and those in food stamps might have been nearly four times as large
if Congress had passed everything the administration proposed.
    Moreover, most of Reagan's budget victories occurred in the first
two years of his presidency. The momentum slowed notably after a
larger Democratic majority was elected to the House of
Representatives in 1982.
    These are some examples of the proposals that were rejected before
and resubmitted Monday:
    School meals. In his initial budget, Reagan recommended ending
subsidies for school lunches to pupils from middle-income and
upper-income families. Congress cut the subsidy by about one-third,
but the president is again proposing to eliminate it. The budget
projects the saving at slightly more than $2 billion over the next
three years.
    Mass transit. Congress has refused to go along with the
administration's recommendation to end operating subsidies for urban
mass transit systems. In the new budget, the administration says the
saving would be more than $2 billion over three years.
    Legal services. Every year he has been in office president Reagan
has proposed abolishing the Legal Services Corp., but Congress has
been unwilling to do so. According to the budget, adoption of this
proposal would save about $300 million a year.
    Work requirement. Since taking office, Reagan has urged that welfare
recipients able to work be required to work as a condition for
receiving public assistance. Congress gave the states the option to
enforce such a requirement, but, except for small pilot projects, few
states have exercised the option. If the work requirement was made
mandatory nationwide, it would save more than $100 million over three
years, according to the administration.
    In addition to spending cuts, the budget calls for several other
legislative measures the president sought unsuccessfully in the past.
    Two special tax breaks in the new budget have been rejected
repeatedly by Congress. One would help offset tuition payments by
parents of students in private schools and the other is designed to
induce businesses to locate in selected neighborhoods.
    This year a new argument may arise against these tax preferences,
namely that they run counter to the principles of the
administration's plan to restructure the nation's tax system by
cutting tax rates and eliminating most deductions and credits.
    The administration is also proposing again to charge user fees to
pay for the construction and operation of inland waterways and
deep-water ports and to pay for such Coast Guard services as
licensing, inspections and search-and-rescue operations. Congress has
rejected such fees in the past, but this year the budget calls for
even more user fees. For example, the administration would like to
charge $100 every time an individual or company asks the Internal
Revenue Service for a private ruling on a tax matter.
    If all the proposed user fees were adopted, according to the budget,
they would add about $9 billion in revenue over the next three years.
    A few of Reagan's unsuccessful proposals from earlier years have
been abandoned, or at least they are not mentioned in the new budget.
The budget, for example, does not call for closing the departments of
Energy and Education. Nor does it recommend folding two programs,
federal aid for handicapped students and compensatory education for
poor children, into an over-all education block grant.
    Cuts in the special nutrition program for pregnant women and infants
are not so deep as the administration has proposed in the past.
    
nyt-02-05-85 0302est
n133  0011  05 Feb 85
AM-MOTORS-SATURN
(BizDay)
c.1985 N.Y. Times News Service
    DETROIT - William E. Hoglund, a financial executive who has
demonstrated a flair for automobile marketing, was chosen president
on Monday of the General Motors Corp.'s Saturn subsidiary.
    He succeeds Joseph J. Sanchez, who died of a heart attack on Jan.
26, after just a few weeks in the post as chief executive of GM's
newest operating unit. Sanchez was 54 years old.
    Hoglund's new job represents at least a nominal demotion, since he
will have to give up his title of group executive. He will remain a
vice president of the corporation, however, reporting to Lloyd Ruess,
the head of GM's Chevrolet, Pontiac, GM of Canada group.
    Since July, Hoglund, 50, has been in charge of GM's operating staffs
group. Before that, he was manager of the company's Pontiac division
for almost four years. He declined to be interviewed on Monday.
    The Saturn Corp., formed by GM early this year, is a wholly owned
subsidiary that will build a $5 billion integrated manufacturing
complex to produce small cars competing directly with imports. It
will also have its own network of franchised dealers.
    Auto industry analysts said that Hoglund had been unusually
successful in bridging the divisions that often exist between
financial specialists and product-oriented executives.
    ''He's very highly regarded'' by auto enthusiasts, said Leon Mandel,
the editor of Autoweek magazine. ''He's a real car guy who took
Pontiac and gave it some direction.''
    It was while Hoglund was in charge that Pontiac decided to focus on
wealthier, younger car buyers who have tended to prefer imports. The
two-seat, mid-engine Fiero sports car, introduced under his
direction, has been a notable sales success and has given Pontiac the
lowest average-aged buyer in the corporation.
    ''This is typical of what Roger Smith is doing,'' said Maryann N.
Keller, an analyst with Vilas-Fisher Associates, referring to GM's
chairman. ''He's not choosing the man at the top of the expected
list, but he's choosing the one with the right background.''
    She added: ''The demographic profile of Pontiac buyers is almost the
same as they want for Saturn - the 'Yuppie' market. And, as head of
the company's internal staffs, he's been in a position to see just
how the corporation is run.''
    One of the stated goals for Saturn is to streamline the way GM has
conducted its business in the past, with a major emphasis on reducing
paperwork. Meeting with reporters recently, H. Ross Perot, the head
of GM's Electronic Data Systems subsidiary, suggested that the Saturn
system might be fully computerized, with virtually no paper
communications.
    Hoglund, who brought a chair made from a racing car seat to his
office in the staid 14th-floor executive suite of GM when he was
promoted to group vice president, grew up in the automobile business.
    His father, Elis S. Hoglund, was a group vice president in charge of
GM's overseas operations until his retirement in 1963. His brother,
Peter K. Hoglund, is a vice president and manager of GM's
Electromotive division.
    Hoglund joined GM in 1948 after graduating from Princeton University
and the University of Michigan, where he earned a master's in
business administration. He held a series of increasingly responsible
financial positions and was named vice president for Pontiac in
August 1980.
    The Saturn job is probably the most visible new job in GM, since it
focuses on the small car market, where GM is weakest. Smith has said
he expects the Saturn division to be the prototype for GM's
organizational structure for the future.
    This opportunity probably accounts for Hoglund's willingness to take
a step down the corporate ladder, analysts say. ''If you're not
concerned about the next quarter, but have long-term career goals in
mind, it's the right place to be,'' observed Harvey Heinbach, an auto
analyst with Merrill Lynch.
    
nyt-02-05-85 0310est
n134  0023  05 Feb 85
BC-CHURCH
By WILLIAM E. SCHMIDT
c.1985 N.Y. Times News Service
    LANCASTER, S.C. - On a muggy night last July, three rural black
churches were burned to the ground near here by two white men who
were arrested that evening.
    As morning broke, there was anger and outrage among blacks, and the
police and state officials were afraid there might be retaliation and
violence.
    But trouble never came. Instead, blacks and whites in Lancaster
County alike focused their energy on a campaign to help rebuild the
churches. Over the last seven months nearly $200,000 in donations has
been raised.
    Sunday, in a brief ceremony beside the ruins of New Zion Missionary
Baptist Church, about 130 people gathered against a bleak winter sky
to break ground for rebuilding the first of the churches.
    ''Rather than respond in icy indifference, this community rose as
one and worked to put back what was lost,'' said Lt. Gov. Michael R.
Daniel, standing beneath a green canopy tent lent by a local funeral
parlor. ''Now this community is stronger at the broken places.''
     Daniel was one of those who, hours after the incident last summer,
helped organize a biracial coalition of political, business and
religious leaders, We Care, to run the fund drive.
    Among those huddled against a cold wind here Sunday was Emmagene
Wright, whose 25-year-old son Michael is one of two men serving time
in prison for burning down the churches.
    She came out, she said, because the people of New Zion and the other
black congregations in the rural areas of Lancaster County had shown
her and her family consideration rather than anger and bitterness.
They paid personal visits to offer sympathy and understanding, she
said.
    The Rev. Ezekiel Hampton, the pastor of New Zion, recalled Sunday:
''I was angry at first, very angry. I thought there could be a riot,
because others were angry, too.''
    But, he said, his anger soon gave way to pity. ''I can now forgive
those two men what they did and feel sorry for them,'' said Hampton,
who has been pastor at New Zion since 1981.
    Mrs. Wright's son, an electrician, was sentenced to 40 years after
he pleaded guilty to charges of arson, larceny and breaking and
entering. The other man, James Starnes, 18, was sentenced to 28
years. The sentences were the maximum that Judge Owens T. Cobb Jr. of
Lancaster County Circuit Court could impose.
    Law-enforcement officials said the two men apparently set fire to
the churches to cover up robberies. They were caught when, the night
of the fires, the Lancaster County sheriff dispatched patrolmen to
other black churches and discovered a car parked outside one. In the
car were choir robes, candlesticks, electrical equipment and a brass
cross, taken from the other sanctuaries.
    At the ground-breaking ceremony Sunday, Mary Barry, the chairman of
the Lancaster County Commission, who is white, said it was not
prejudice that burned the churches. It was, rather, ''another evil
that exists in our society,'' a reference, Mrs. Barry explained
later, to the fact that both young men were intoxicated by drugs and
alcohol when arrested.
    About 10 white churches in the same area were untouched, but Hampton
and others say there is no sense dwelling on implications of racism.
    ''We've had good race relations over the years here in Lancaster,''
said Hampton. ''We're all in this together.''
    Mayor Joe Shaw of Lancaster, who is white, also spoke at the ground
breaking. ''Most of us here are good people,'' he said. ''We just
hope and pray that something like this never happens again. Let's
just keep the faith.''
    The arson last summer jarred state officials and the law-enforcement
authorities, who said the county, where blacks make up about 25
percent of the population of 53,000, had no recent history of racial
animosity. Even so, they feared the burning of the three churches
would signal a revival of headlines like those from elsewhere in the
South in the 1960s.
    But although no one realized it at first, the crime had quite
another effect among people, both white and black, in other small
communities across the state, where churches have historically
occupied a special place in the lives of rural people.
    ''People are baptized there, they are married there and they are
buried there,'' Daniels said in an interview after the ceremony.
''When a church burns, it touches an awful lot of people. A whole
lifetime of religion is reduced to ashes.''
    Although the New Zion church building that burned was only 30 years
old, the congregation dates from 1871.
    So on the first Sunday in August, in reponse to an appeal for
donations to what Daniels and others called the Love Fund, churches
across the state took up money for the three Lancaster congregations.
Meawhile, donations began coming in from other states, from as far
away as California and Washington.
    Calvary Church in Charlotte, N.C., where Billy Graham's parents were
once members, gave $1,500. A black congregation in Charlotte gave
$1,000. Springs Industries Inc., the textile company that is the
county's largest employer, gave $15,000.
    All three of the burned churches were covered by some fire
insurance, and the money will be apportioned among them according to
need.
    ''Throughout our long history, we Southerners have known what is
best and what is worst in man,'' Daniel told the crowd gathered
alongside the rubble of the sanctuary and the headstones of the small
church cemetery beyond. ''But every generation frees us a little more
from the darker side of our nature.''
    
nyt-02-05-85 0322est
n135  0032  05 Feb 85
BC-BORDER
By WAYNE KING
c.1985 N.Y. Times News Service
    EL PASO, Texas - Two years ago, Joe Navarrette was commended for
braving the turbulent waters of a border canal here to save the lives
of a group of illegal aliens who had jumped in to avoid capture.
    Monday, Navarrette appeared before a U.S. magistrate here at a bond
hearing on charges that he had helped harbor, conceal and transport
three Colombians who were in this country illegally.
    Under questioning, he said that he had had financial problems, had
sold his family's home and had less than $100 in his bank account.
    Navarrette, in his late 30s, is a nine-year veteran of the Border
Patrol who has several letters of commendation for outstanding
performance. His salary is a little more than $20,000 a year.
    If convicted, he could face up to 10 years in prison on the
conspiracy charges. The government also said he threatened a fellow
officer not to testify against him. No charges have been made on that
allegation. But Navarrette could face another 10 years if the
government brought those charges and got a conviction. He is in
custody pending a ruling on bond.
    The 3,000 Border Patrol agents last year made more than 1 million
arrests of illegal aliens along the southern border.
    Most of the aliens flooding into the country are Mexicans fleeing
poverty; others are Central Americans fleeing civil war, and still
others are with contraband or criminal intent.
    In many cases, whatever their motives, they are willing to pay for
help. In this case, the government charges, they paid for the
assistance of a border patrol agent and a ''coyote,'' an alien
smuggler, or go-between, known as El Gato, the cat.
    ''We don't see a long-term thing here,'' Larry Richardson, the chief
Border Patrol agent in the El Paso sector, said in a telephone
interview Monday. ''We see a guy who saw a way to make some bucks.''
     Navarrette was arrested at El Paso International Airport Friday,
where the authorities say he was helping one of the three Colombians
make his way through the maze of up to 60 undercover Border Patrol
agents. The agents were trying to seal the airport against the
increasing flow of aliens who slip across the border and immediately
board planes or buses to big cities where detection is more difficult.
    One of the Colombians, surreptitiously accompanied an undercover
agent, boarded a plane and flew to Dallas. A few days earlier the two
other aliens had flown to Los Angeles, also with an undercover agent
keeping them under surveillance. All three were arrested as they left
the planes.
    According to the government indictment, the three were smuggled
across the border, stayed briefly at a motel used as a ''safe
house,'' then brought to the airport with tickets purchased by the
man identified at the time only as El Gato.
    The man was later apprehended, and Monday the government identified
him as Jose Rodolfo Terrio Carillo. Carillo, a slight, unkempt man,
sat quietly through the bond hearing. He is also charged with
conspiracy to harbor and transport illegal aliens.
    At the hearing, the government requested Navarrette be held without
bond, based on a tape recorded conversation with a fellow agent,
Frederick Capio. In the conversation, according to a government
attorney, Navarrette, while denying threatening Capio specifically,
described how a killer could be hired for as little as $400 and how
the victim ''could get it after he wasn't even looking for it.''
    Richardson acknowledged that the life of a Border Patrol agent is
frustrating and the potential temptations considerable.
    ''We have in the past several years been going through throes and
woes about corruption in the agency,'' he said. He noted the
institution and expansion of internal surveillance through the
agency's office of professional responsibility, which conducted the
undercover operation that led to Navarrette's arrest.
    ''The majority of the complaints wind up being unfounded,''
Richardson said. ''We've got a very high percentage of cadre that is
honest. The built-in frustrations are acknowledged, but low morale,
no.''
    
nyt-02-05-85 0332est
n136  0040  05 Feb 85
AM-WESTMORELAND 2takes
By M.A. FARBER
c.1985 N.Y. Times News Service
    NEW YORK - Two combat veterans of the Vietnam War took the stand on
Monday at Gen. William C. Westmoreland's libel trial against CBS and,
wielding a mock grenade and tripwire, demonstrated how the Vietcong's
self-defense forces rigged booby traps that, they said, caused
American casualties.
    The veterans - a twice-wounded private who served as an infantryman
and a captain who graduated from West Point in 1963 when Westmoreland
was superintendent there - were called as witnesses by CBS to counter
the general's testimony that the self-defense forces were ''basically
civilians'' who posed no offensive threat.
    Both veterans said in Federal District Court in Manhattan that the
part-time, hamlet-based forces inflicted numerous injuries, some
fatal.
    ''Those people were fighting us; we were trying to fight them,''
said Capt. Howard Embree, now a professor of English at Mississippi
State University. ''That's what we understood our job to be, and I'm
very surprised to discover that General Westmoreland did not know
that's what we were doing.''
    The reference to Westmoreland was stricken from the record by Judge
Pierre N. Leval.
    During a break between Embree's testimony and that of Pfc. Daniel A.
Friedman, the mock ''pineapple style'' fragmentation grenade rested
on the edge of Leval's bench.
    Eyeing it somewhat apprehensively, the judge turned to David Boies,
the principal lawyer for CBS.
    ''Mr. Boies,'' he said as courtroom spectators broke into laughter,
''you want to take back your grenade?''
    The role of the self-defense forces in the war has been an important
issue in the 17-week-old trial, and the subject of much conflicting
testimony.
    The 1982 documentary that prompted Westmoreland's suit - ''The
Uncounted Enemy: A Vietnam Deception'' - charged that, for political
and public-relations reasons, the general imposed an ''arbitrary
ceiling'' of 300,000 on reports of enemy size, mainly by removing the
self-defense forces from the official listing of enemy strength known
as the order of battle. That action in late 1967, the program said,
was part of a broader ''conspiracy'' by the general's command to show
progress in the war by understating the size and nature of the enemy.
    Westmoreland, who commanded U.S. forces in Vietnam from 1964 to
1968, testified that he never set such a ceiling and that he deleted
the self-defense forces because he believed they were insignificant
militarily and could not be counted accurately and because their
inclusion in the order of battle at a high figure would mislead
Washington and the press. The self-defense forces had been newly
estimated in the spring of 1967 at 120,000 - an increase, on paper if
not in the field, of 50,000.
    Embree served in Vietnam from May 1966 to May 1967, and was an
adviser to a South Vietnamese military unit in northern Quang Tri
province.
    Under questioning by Randy Mastro, a lawyer for CBS, Embree said he
had received a Bronze Star ''and a minor decoration for what the Army
was pleased to call 'valor,' but which I didn't believe in, so I
never wore.''
    Embree said that, in Vietnam, he saw combat ''almost continuously.
We were in the field, passing through villages, staying overnight,
going in another direction, often back the way we had come.''
    (MORE) nn
    
nyt-02-05-85 0339est
n137  0048  05 Feb 85
AM-WESTMORELAND 1stadd
NYT NEW YORK: had come.''
    He said he was able to distinguish between the self-defense forces
and the ''guerrillas'' - who remained in the order of battle -
because the latter were more mobile, more active, and better
organized. Both groups ''looked like civilians,'' he said, but the
self-defense forces were responsible for ''mining, booby-trapping,
and sniping in the proximity'' of their villages.
    Q. How difficult was it to construct a tripwire grenade?
    A. Extremely simple. I could teach anyone in this room to do it in
the next 10 minutes.
    Q. What would you need to do it?
    A. Piece of wire and a grenade.
    Whereupon, Mastro produced the elements. ''I just happen to have
those things here,'' he said.
    Hooking the wire on the microphone of the witness stand, Embree
proceeded to give a five-minute demonstration, showing how the
grenade would be hidden in the dust or secured by bamboo stakes and
the wire would be strung across a path or a paddy dike, ''anywhere
it's predictable'' that American or allied soldiers would pass.
    At one stage, the witness observed that the wire provided to him
''looks like picture wire, which the VC did not have, but they did
have fishing line or lots of very thin metallic wire, which was very
difficult to see.'' At another point, Embree complained that ''the
spring has been removed from this grenade, unfortunately.''
    ''Not so unfortunate, Mr. Embree,'' Mastro interjected, as the metal
spoon covering the grenade fell to the floor, echoing through the
courtroom.
    ''The first soldier coming by would, of course, pull the pin out,
and the spoon would fly off,'' the witness explained. ''The grenade
would catch him from behind and the next guy, even if he were spaced
out properly, would catch it in the front. So, typically, a grenade
might easily get two men and wound them severely or kill them.''
    Embree estimated that half the casualties he saw resulted from such
booby traps and mines.
    On cross-examination, David Dorsen, a lawyer for Westmoreland,
attempted to show that Embree was not responsible for overall
strength calculations in his province and that he may have attributed
activities to the self-defense forces actually carried out by
guerrillas. But the witness said there was ''an irreducible level of
violence'' in some villages that ''did not vary with the presence of
outside or mobile forces.''
    Embree said he agreed to testify after talking to Samuel A. Adams,
an individual defendant in this case, and to Col. Gains Hawkins, a
former Army intelligence colonel who appeared on the CBS broadcast.
    Friedman, now a veterans' counselor in Brooklyn, N.Y., came to
testify after learning that lawyers for CBS wanted to interview
Vietnam veterans.
    The former private, who was stationed in Vietnam for most of 1968,
said he ''saw too many of my buddies go down not to be concerned''
about mines and booby traps. He said that, after firefights, he
discovered that many of the enemy dead were the very same people who
had earlier been ''waving at'' American soldiers and taking C-rations
from them. Often, he said, those people used the food cans for
explosive devices.
    On cross-examination, Dorsen stressed that Friedman, who rose to the
rank of specialist 4, was not an intelligence officer.
    In other testimony, Joseph Fackovec, the film editor for the last
two segments of the five-act documentary, said he was unaware of
material having been ''distorted.''
    Fackovec said it was ''not the job'' of someone in his position to
read the full transcripts of interviews to see if the material being
excerpted was in context. Fackovec also said ''it was sort of common
knowledge'' that Ira Klein, the principal film editor for the
documentary, who testified for Westmoreland, did not ''get along too
well'' with George Crile. Crile was the producer of the documentary
and is now a defendant.
    
nyt-02-05-85 0348est
n138  0054  05 Feb 85
BC-FINBRIEFS Undated
(BizDay)
c.1985 N.Y. Times News Service
    NEW YORK - A group of investors that is trying to take control of
the Datapoint Corp. filed suit Monday in federal district court
seeking to block a change in Datapoint's bylaws that would make a
takeover more difficult.
    The group, led by Asher B. Edelman, a New York investor, also
proposed to replace Datapoint's directors with its own slate of
candidates.
    Datapoint's chairman, Harold E. O'Kelley, sent a letter to
shareholders on Jan. 29 saying that a takeover of Datapoint by the
group ''is likely to work to the detriment of all of our shareholders
because it is not likely to generate the best possible price.''
    The suit calls some of the information in the letter ''false and
misleading.'' It also seeks to overturn the new Datapoint bylaws, put
in place on Jan. 28, that can significantly delay the time it takes
shareholders to vote for changes in the company's board.
    A spokesman for Datapoint, a computer company based in San Antonio,
said Monday that the company had not received a copy of the suit but
that it considered the bylaw changes ''legal, well conceived and
appropriate.''
    Also Monday, the Edelman group told the company that it was seeking
to replace the current nine-member board with its own slate of six
directors. To do this, the group, which controls 10.3 percent of
Datapoint's stock, must obtain backing by shareholders representing a
simple majority of the company's shares.
    
    NEW YORK - National Intergroup, benefiting from cost-reduction
programs and a restructuring, reported Monday that it had net income
in the fourth quarter of 1984 of $12.8 million, or 44 cents a share.
    This contrasted to a deficit of $38 million in the quarter a year
earlier, which included a charge of $55.6 million for the liquidation
of the National Pipe and Tube Co. and the write-off or sale of
certain other steel-related assets.
    National Intergroup, holding company for the National Steel Corp.,
said that earnings in the latest three months included pretax gains
of $10 million from the retirement of long-term debt and the sale of
oil and gas properties in Canada and the United States. Sales in the
quarter plunged 77.5 percent, to $176.6 million, from $784.3 million.
    National Intergroup said that for all of 1984 it had net income of
$52.6 million, or $1.83 a share, contrasted to a loss of $154.3
million in 1983. Sales dropped 23.4 percent, to $2.29 billion, from
$2.99 billion.
    
nyt-02-05-85 0353est
n139  0101  05 Feb 85
BC-TV-REVIEW
By STEPHEN HOLDEN
c.1985 N.Y. Times News Service
    NEW YORK - A good adventure yarn, no matter how familiar or
far-fetched, carries a kind of visceral charge that makes it
perennially irresistible as popular entertainment. And ''The Corsican
Brothers,'' the famous swashbuckling tale of revenge and love, by
Alexandre Dumas pere, is just such a yarn.
    Packed with clanking duels, opulent romance, mystical curses and
much talk of ''honor,'' it has enough drive to satisfy the most
plot-famished fans of action and adventure. The two-hour,
made-for-television movie version of the story, which appears on CBS
Tuesday night (9 p.m. EST), may be giddy escapist hokum. But the
film, produced by David A. Rosemont and directed by Ian Sharp,
nevertheless skillfully recaptures the flavor and rhythm of old-time
Technicolor swords-and-daggers romps, with a seasoning of
contemporary elements such as a ''Godfather''-like score.
    Set in the early 19th century on the Mediterranean island where
superstition and revenge have been a way of life for centuries, ''The
Corsican Brothers'' tells the story of separated Siamese twins, Louis
and Lucien de Franchi, who get caught up in a centuries-long feud
with their provincial neighbors, the de Guidices. The brothers, both
played by Trevor Eve, grow up with very different aspirations. Louis,
a sensitive peacemaker, leaves the rough Corsican life for the salons
and fleshpots of Paris. There he meets with the chancellor (Donald
Pleasance) to discuss outlawing the concept of vendetta and also
falls in love with the bubble-headed young wife of a friend. Lucien,
who stays in Corsica, is a rugged traditionalist and defender of the
family honor. But despite their differences, the brothers share a
mystical bond. No matter how far apart they are, when one suffers
physical pain, the other feels it at the same moment. And with all
the swordplay, the pair get to experience a number of simultaneous
pangs.
    Written for television by Robin Miller, ''The Corsican Brothers''
revels in vintage movie cliches, and almost every sentence is an
oracular costume-drama pronouncement. ''You are a man of honor, and I
trust you,'' says Annamaria de Guidice (Olivia Hussey) to Lucien,
whom she is forbidden to love because of the feud. ''But I am a
man,'' he replies darkly. And on and on.
    Trevor Eve's Louis-Lucien does not exude the sheer physical delight
that Douglas Fairbanks (Sr. and Jr.) and Errol Flynn brought to the
swashbuckling genre. His tense, glowering presence is closer to the
mood of modern gangster movies. Uncharming as he is, however, Eve
gives the movie a psychological edge that helps hold together the
mounds of fluffy cliche. Geraldine Chaplin, as the twins' mother, and
Miss Hussey, as Lucien's secret flame, have little to do but
impersonate stereotypes. The most vivid supporting performances
belong to Simon Ward and Jennie Linden as evil Parisian voluptuaries
whose very presence signifies trouble in the next 30 seconds.
    
nyt-02-05-85 0400est
n140  0110  05 Feb 85
BC-RETAIL
(BizDay)
By ISADORE BARMASH
c.1985 N.Y. Times News Service
    NEW YORK - The difficult retail fiscal year, which ended Saturday,
and particularly the disappointing Christmas season, has caused Wall
Street analysts to predict earnings declines in the year for about
half of the nation's 12 largest retail chains.
    Declines from the 1983 year, according to a consensus of analysts,
are expected at the J.C. Penney Co., Federated Department Stores,
Carter Hawley Hale Stores Inc., the Associated Dry Goods Corp. and
Sears, Roebuck & Co.
    Earnings gains are expected for the K Mart Corp., the Dayton-Hudson
Corp., R.H. Macy & Co., the May Department Stores Co., Wal-Mart
Stores Inc. and the Zayre Corp.
    Earnings at the Allied Stores Corp. are expected to be flat.
    ''The problem with 1984 wasn't consumer spending, which was
generally satisfactory,'' Jeffrey B. Edelman, an analyst for Dean
Witter Reynolds Inc., said, ''but that retailers overanticipated
sales and overplanned their inventories.''
    The entire retail industry emerged from 1983 with strong sales
results, and therefore had high expectations for 1984, Edelman said.
''Many companies became greedy in terms of trying to increase their
market share and overstocked to do that,'' he added. ''And when sales
fell below expectations, they had to mark down considerable
merchandise, which hurt their profits.''
    Walter F. Loeb, an analyst for Morgan Stanley & Co., said that the
year's best performance was turned in by the discounters, such as K
Mart, Wal-Mart and Zayre. ''The department stores, due to the
competitive environment, were forced to operate on much lower profit
margins,'' he added. ''Weather problems several times during the year
caused havoc with sales, building inventories and causing higher
selling costs than expected.''
    But it was the final fiscal quarter, beginning Nov. 1 and including
the 32-day Christmas selling period, that hurt the year most,
analysts said. That holiday shopping season normally contributes as
much as 25 percent of the entire year's sales, and up to 50 percent
of profits.
    Thomas H. Tashjian, an analyst for Prudential-Bache Securities Inc.,
said, ''With the fourth quarter responsible for such a bulk of sales,
the buildup of inventories created a high level of clearances which
especially exerted downward pressure on profits.'' He added, ''In
fact, the last half of the year saw severely competitive price
pressures on retailers, bringing an erosion in their profit margins
in a less-than-expected sales environment.''
    Not all the analysts agree on earnings expectations for the various
companies. At Sears, where the Merchandise Group still accounts for
the majority of sales and profits, Tashjian expects 1984 earnings to
come in at $3.70 a share against the previous year's $3.80 a share.
But Loeb of Morgan Stanley predicts a small gain to $3.85 a share.
Similarly, for Associated Dry Goods, Tashjian sees earnings of $5.75
a share, compared with $5.95 a share, while Loeb says it will be $6 a
share.
    According to Edelman of Dean Witter, Federated Department Stores was
hurt by heavy inventories and less robust sales in the final quarter.
He said it was also ''hit by start-up expenses for the new Mainstreet
division and a shift in merchandising strategy to regain the
company's fashion edge of the 1970s.'' But the May stores ''did a
better job of running its business,'' he said, ''keeping inventories
in line while generating pretty good sales.''
    A big drop at Carter Hawley Hale is accounted for in part because it
sold its big Waldenbooks subsidiary to K Mart in the past year.
    Some analysts see an earnings recovery in the new retailing year,
which begins this month. ''While there will be a continuing
promotional environment lingering from 1984,'' Loeb said, ''I expect
average retail earnings will be up about 9 percent in 1985. This will
come from improved inventory controls, a better business climate and
an easier comparison with 1984 than that year had with 1983.''
    
nyt-02-05-85 0409est
n141  0119  05 Feb 85
AM-FOOTBALL
(Sports)
By MICHAEL JANOFSKY
c.1985 N.Y. Times News Service
    WASHINGTON - Pete Rozelle, the commissioner of the National Football
League, told the Senate Commerce Committee on Monday that the NFL
needs a ''limited'' antitrust exemption so that the league can
control the movement of its franchises to bring it ''stability.''
Only then, Rozelle said, could the 28-team league consider expanding.
    ''We will expand,'' Rozelle said at a hearing on two bills that
would establish guidelines for the movement of professional sports
franchises. ''But timing is the thing. We have to have a degree of
stability before the owners will expand.''
    Stability is not such a concern in baseball. Alexander Hadden, the
deputy commissioner of major league baseball, told the committee the
major leagues are prepared to add two teams by 1988. ''But I would be
surprised,'' he said, ''if it didn't come before that.''
    One of the bills under consideration, sponsored by Sen. Slade
Gorton, R-Wash., would mandate expansion in the NFL by four teams by
1990, including one in Baltimore and one in Oakland, and would create
an ad hoc three-member panel to review any decision by a league that
would permit a team to relocate. That bill would also encompass all
the major sports including baseball.
    The other bill, sponsored by the two senators from Missouri, John C.
Danforth, Republican, and Thomas F. Eagleton, Democrat, would include
all the major sports except baseball and would simply establish the
guidelines that would have to be followed before a move.
    Also testifying on the two bills was Harry Usher, the new
commissioner of the U.S. Football League. He urged that neither of
the bills be enacted because they would ''enshrine the monopolistic
position of the NFL.''
    Usher also said that the bills ''do not get to the root of the
problem,'' which he identified as an antitrust exemption the NFL won
more than 20 years ago, allowing it to negotiate television contracts
as a single entity. That legislation, he said, enabled the NFL to
sign contracts with all three major networks, thereby ''creating an
impossible entry position'' for any other professional football
league.
    Without such an exemption, Usher said, the NFL would be forced to
operate in a ''free and open market,'' which would enable another
league to survive. As a result, he said, more communities would have
football teams, and that would diminish the frequency of franchises'
relocating. Such conditions could exist, he said, if the NFL were
limited to negotiating with one or two networks, leaving an
opportunity for his league to fill the breech. The USFL made that
same point in the $1.32 billion antitrust suit filed against the NFL
late last year.
    Besides Rozelle, Usher, and Hadden, the others testifying were:
David Stern, commissioner of the National Basketball Association;
John A. Ziegler, the commissioner of the National Hockey League; Earl
Foreman, commissioner of the Major Indoor Soccer League; Gene Upshaw,
the executive director of the NFL Players Association; Dick
Berthelsen, general counsel to the NFLPA; and Doug Allen, the
executive director of the USFL Players Association.
    Of the two bills, Rozelle said he preferred the Danforth-Eagleton
bill, with certain amendments. The regulatory nature of the Gorton
bill, with its review board, Rozelle said, would be an example of
''further emasculating professional sports leagues in their efforts
to deal responsibly with team location issues.''
    Sen. Frank R. Lautenberg, D-N.J., and a member of the Commerce
Committee, asked those testifying whether the problem was perhaps not
one of a regulatory nature, but one of supply and demand for teams.
That, he suggested, creates situations in which team owners can
benefit from a bidding war between communities.
    ''The root cause of the problem,'' Lautenberg said, ''is that there
are not enough teams to go around. The demand is not met by the
supply. It is met by ransom and the higher price of franchises.''
    Another hearing on the two bills is scheduled for Feb. 20. A hearing
on two similar bills will also be held Wednesday before the Senate
Judiciary Committee.
    
nyt-02-05-85 0418est
n142  0129  05 Feb 85
BC-RECAP-BUDGET-2takes-(Balt.)
    
     This is the 11 P.M. summary of news stories which moved from The
Baltimore Sun News Service for the Evening and Morning papers of
Tuesday, February 5, 1985. The editor is James Keat. He can be
reached at 301 332 6188.
    
     INTERNATIONAL
    
     Pinochet - Santiago. Gen. Pinochet says he will keep the state of
seige on in Chile indefinitely, or until he decides things are
peaceful enough to lift it. Also, says that he will hold a plebiscite
in 1989 on the form of government Chile will have after that, which
leaves open his continuance. - (800) - By Henry Trewhitt - BC
    
     Barbie - Lyon. The Butcher of Lyon marks his second year in a
French jail, still awaiting what is expected to be a controversial
trial on his actions during World War II. - (1,050 in 2 takes) - By
Robert Ruby - BC
    
     Salvador - San Salvador. Two major right wing parties announce
formation of a coalition to oppose President Duarte's party in
upcoming legislative and municipal elections. - (350) - By James Bock
- BC
    
     Yalta - Moscow. Soviet Union marks the anniversary of the Yalta
meeting by stressing that East European borders are unalterable. - 
(350) - By Antero Pietila - BC
    
     NATIONAL
    
     Poor - Budget Director Stockman, in summary of proposed program
cuts that might have an impact on the poor, leaves off a number (such
as rural development) that affect both better-off and the poor. Asked
about it, he says he only lists programs that are exclusively or
primarily aimed at poor, a practice that shortens his list. - (550) -
 By Stephen Nordlinger - BC
    
     Broadcasters - President speaks to National Association of
Religious Broadcasters. - (500) - By Fred Barnes - BC
    
     Budget - The selling of the 1986 budget began early today, with
President Reagan meeting with several groups of congressmen and
business leaders. In budget briefing, Stockman says this budget
represents the bulk of what the Reagan administration plans to
propose in this term. There are no big surprises down the road, he
says. -  (700) - By Robert Timberg - BC
    
     Congress - House and Senate leaders hold a ''Budget Summit'' on
their own turf, after visit to White House. It's part of a day of
meetings and news conferences as the Hill gets ready to produce a
budget of its own. Mark Hatfield, chairman of Senate Appropriations
Committee, calls Mr. Reagan's effort ''a fantasy budget, conceived in
the Land of Never.'' - (700) - By Nancy Schwerzler - BC
    
     Defense - Caspar Weinberger, beginning budget defense before his
friendliest congressional audience--Senate Armed Services Committee,
is told there simply won't be funds for the long-range program he's
planning. Hears consensus forming for 3 to 4 per cent increase
instead of 5.9 he wants. Even Barry Goldwater, presiding as chairman
for first time, tells him he'll be cut and Sam Nunn says his
multi-year plan ''simply cannot be funded.'' - (650) - By Charles
Corddry - BC
    
     Asbestos - Efforts to remove asbestos from schools, homes,
hospitals, government buildings and factories may soon grind to a
halt across the nation because contractors can't get the liability
insurance they need. - (1,700 In 2 Takes) - By Sheridan Lyons - BC
    
     Reagan - President Reagan, in a symbolic effort to ease the sting
of the 5 percent pay cut he is asking federal workers to take, will
voluntarily give back the same percentage of his $200,000-a-year
salary, the White House announced yesterday. - (450) - By Robert
Timberg - BC
    
     EDITORIALS & COMMENTARY
    
     Editorial - Reagan - Reagan's Showdown Budget. - (450) - BC
    
     Editorial I - The escape artist. - (350) - The Baltimore Evening
Sun - BC
    
     Editorial II - Growing Wastelands. - (400) -  1984 The Baltimore
Sun - BC
    
     Jenkins - An interview with J. William Fulbright, who for 15 years
was chairman of the Senate Foreign Relations Committee. - (600) - By
Ray Jenkins - The Baltimore Evening Sun - BC
    
     Victim - No one can guarantee us absolute safety, but our legal
system must treat as serious those crimes that hurt some and threaten
us all. - (750) - By Thomas K. Carey Jr. - The Baltimore Evening Sun
-  BC
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC
    
     SPORTS
    
     MORE
    
    
nyt-02-05-85 0428est
n143  0134  05 Feb 85
BC-RECAP-BUDGET-1stadd-(Balt.)
    
     pickup xxx SPORTS
    
     Fusina - Will Chuck Fusina become the Baltimore Stars' ''Golden
Boy''? - (1,050 In 2 takes) - By Alan Goldstein - BC
    
     Cowherd - Apparently, the state of Indiana did not take all this
losing well. Alumni and IU students were reportedly up in arms.
Hoosier boosters were screaming for coach Bobby ''Call Me Bob''
Knight's scalp. - (900) - By Kevin Cowherd - The Baltimore Evening
Sun - BC
    
     Racing Part I - Life on the Grand National stock car circuit is
changing at breakneck speed, with drivers furiously switching teams
and loyalties, not to mention gears. In the garages, engineers and
mechanics are pushing the drivers' talents to the limits.
Sportswriter Sandra McKee, who has covered auto racing for eight
years, recently spent five days in North Carolina and Virginia at the
garages where this year's Daytona 500 dream cars have come to life.
The first of her five reports explains why two of the South's
fiercest rivals have made peace and racing history. - (1,100 In 2
Takes) - The Baltimore Evening Sun - BC
    
     ENTERTAINMENT & CULTURE
    
     Carter - The television industry loves February. The weather is
bleak, people huddle indoors and seek comfort and company from their
TV sets, Thus the fact that February is one of the three most
important television rating periods of the year. - (800) - By Bill
Carter - BC
    
     Hill-TV - ''The Corsican Brothers'' is a fine swashbuckler, not too
substantial, but good clean fun. - (600) - By Mike Hill - The
Baltimore Evening Sun - BC
    
     FEATURES
    
     ETC.- Did you hear about the mortuary that offered to send your
ashes into space for just $3,000? this may be a bargain with today's
expensive ''dying'' prices. - (350) - By Elise T. Chisolm - The
Baltimore Evening Sun - BC
    
     Lewis - Sauk Centre, Minn. boyhood hometown of author Sinclair
Lewis and the basis for Lewis's Nobel Prize winning book 'Main
Street' hasn't changed in the 100 years since Lewis's birth. - (2,600
in 3 Takes) - By John Schidlovsky - BC
    
     End Baltimore Sun's Recap Budget
    
    
nyt-02-05-85 0433est
n144  0144  05 Feb 85
BC-NYT-BUDGET-04 Afternoon Editors Note 2takes
    The following items selected from The New York Times News Service
report of Monday, Feb. 4, 1985, are called to your attention.
    
INTERNATIONAL
    Jerusalem-ISRAEL (Exclusive)-Prime Minister Shimon Peres expressed
disappointment on Monday with what he said had been Egypt's failure
to respond to his efforts to improve relations between the two
countries. By Thomas L. Friedman.
    Washington-ZEALAND-The United States said Monday that the prime
minister of New Zealand had ''definitely turned down'' an American
request for a port visit by a Navy destroyer because Washington would
not say if it carried nuclear arms. By Bernard Gwertzman.
    New Delhi-INDIA-A businessman described as a key figure in a
widening espionage scandal was quoted Monday as having said at a
closed hearing that he had passed government secrets to diplomats
from East Germany, Poland and France. By Sanjoy Hazarika.
ny
    Belgrade-YUGOSLAVIA-The most significant political trial in
post-Tito Yugoslavia ended Monday with the conviction of three
dissidents on charges of disseminating ''hostile propaganda'' against
the state. By James M. Markham.
    Moscow-SOVIET-A Hebrew teacher who had attracted a wide following
among Soviet Jews has been sentenced to an 18-month term in a labor
cmp on a charge of possessing a weapon, his friends say. By Seth
Mydans.
    Washington-SHULTZ-Secretary of State George P. Shultz announced
Monday that the State Department was forming a joint venture with
American corporations to deal with anti-American terrorism abroad.
    New York-KOREA-Kim Dae-jung, the exiled South Korean opposition
leader, said Monday that the South Korean government had taken a
''reasonable attitude'' by announcing he would not be imprisoned when
he returns home from the United States on Friday. But he insisted
that the promise was ''not enough.'' By Clyde Haberman.
    Gibraltar-GIBRALTAR-The border between Spain and the British crown
colony of Gibraltar, closed in anger by Francisco Franco 15 years
ago, was fully reopened just after midnight Tuesday morning. By
Edward Schumacher.
    Addis Ababa-ETHIOPIA-Sudanese rebels freed two Swiss journalists
Monday. The two were captured in the Sudan almost a year ago, but
were thought to have been held in Ethiopia.
nypt
NATIONAL-GENERAL
    Washington-BUDGET-President Reagan formally sent his proposal for
major cuts in domestic spending programs to Congress Monday, telling
legislators that enactment of the new budget would ''change the
course of our nation's history.'' by Bernard Weinraub.
    Washington-BUDGET-ASSESS (News Analysis)-Despite bipartisan
criticism of President Reagan's proposals for sweeping cuts in
domestic programs, his 1986 budget package is being treated more
seriously than his last two budgets as a framework for squeezing
government spending and curbing deficits. By Hedrick Smith.
ny
    Washington-MILITARY-Defense Secretary Caspar W. Weinberger told the
Senate Armed Services Committee Monday that the United States had
gained on the Soviet Union in ''virtually every'' military category
in the last four years, but not enough to warrant slackening the pace
of the arms buildup. By Bill Keller.
    New York-YORKPOLICE-All 250 officers in the Emergency Service unit
of the New York City Police Department demanded transfers Monday,
their union said, to protest the indictment of a fellow officer on a
charge of second-degree manslaughter. By Selwyn Raab.
    Washington-BUDGET-ARTS-The Reagan administration's budget for the
fiscal year 1986 proposes sharp cuts in most federal spending for
cultural activites. Advocates of a strong federal role have said they
will press for cultural funds at least at current levels, as they
have with previous Reagan budgets. By Irvin Molotsky.
    Washington-POLICY-Former Secretary of State Cyrus Vance, testifying
before the Senate Foreign Relations Committee, warned on Monday
against the deployment of new defensive weapons under the Reagan
administration's Strategic Defense Initiative. By Joel Brinkley.
    Washington-BUDGET-SCITECH-Research and development would be among
the few activities allowed to grow rapidly under President Reagan's
budget for the fiscal year 1986. By Phillip M. Boffey.
nypt
    (MORE)
    
nyt-02-05-85 0443est
n145  0150  05 Feb 85
BC-NYT-BUDGET-04 Afternoon Editors Note 1stadd
NYT UNDATED: Phillip M. Boffey.
SCIENCE TIMES
    New York-ASPARTAME-As sales of aspartame, the nation's newest
artificial sweetner, expand rapidly among millions of users,
scientific concern is also growing among some researchers about its
safety. By Jane E. Brody.
    New York-STARWARS-Defenders and detractors may fight over the
feasibility of President Reagan's ''star wars'' proposal, Congress
may blanch over its vast budgetary implications, and governments may
engage in wary diplomacy over its futuristic goals. But at
laboratories around the country there is little hesitancy as
thousands of scientists push technology to the limit in what is being
envisioned as the biggest research project of all time. By William J.
Broad.
ny
    New York-MOURN-Psychologists, using modern research methods, are
probing one of the perennial themes of human life, the inevitable
tragedy of loss. By Daniel Goleman.
    New York-SCHOOLREFORM-WHo should control the reform of the public
schools? A battle is shaping up between those who want the states to
impose new standards and those who view this as unwarranted
interference with local control. By Fred M. Hechinger.
    New York-TECHSCHOOL-Graduate engineering education has entered the
space age. Beginning this fall, the newly chartered National
Technological University will begin using satellite facilities to
beam educational courses to working engineers all over the country.
By Edward B. Fiske.
nypt
BIZDAY
    New York-MARKET-Stock prices shot up Monday, resuming their
four-week long rally after a one-day setback Friday. By Nicholas D.
Kristof.
    New York-TAX-VIII-For many Americans, finding ways to justify
writing off trips, meals, parties, a portion of the house and all
sorts of other expenditures as business expenses is a challenge. And
indeed, business-related deductions can be quite lucrative. But the
rules are strict and the territory is a favorite stomping ground for
Internal Revenue Service auditors who look for business write-offs
that are, in reality, more personal in nature. Eight in a series of
12 article. By Gary Klott.
ny
    New York-MARKETPLACE-Wall Street commentary by Vartanig G. Vartan.
    Detroit-MOTORS-The General Motors Corp. reported on Monday that it
earned $877 million, or $2.71 a share, in the fourth quarter of 1984.
The results were in line with analysts' expectations, although they
said a lower-than-anticipated tax rate gave the final period an
artificial increase.
nypt
SPORTS
    New York-ANDERSON-COLUMN-SPORTS OF THE TIMES: Mancini's Double Life.
By Dave Anderson.
CULTURE
    Undated-BOOK-REVIEW-John Gross reviews ''The True Confessions Of An
Albino Terrorist'' by Breyten Breytenbach.
COMMENTARY
    Undated-WICKER-COLUMN-IN THE NATION: The Budget Hysteria. By Tom
Wicker.
ADVANCES
    New York-BAKER-COLUMN.
    Undated-ON-LANGUAGE.
ny
    Undated-CLAIBORNE-CAPERS.
nypt
    
nyt-02-05-85 0450est
n146  0159  05 Feb 85
BC-ELMONT-I 2takes
Art available upon request
First of three articles
By MICHAEL WINERIP
c.1985 N.Y. Times News Service
    ELMONT, N.Y. - Not long ago, Lucille Giambalvo, president of the
Elmont Memorial High School PTA, got a phone call from a friend
selling a house.
    The friend said that when white buyers learned that their children
would attend Elmont Memorial High, they lost interest. They had heard
that the school had gone downhill.
    Mrs. Giambalvo told her friend it was not so. She bragged about the
Long Island school's ''incredible'' principal, who meets with
hundreds of parents a year, is a strict disciplinarian and a free
spirit, too. The man once dressed up as Michael Jackson.
    ''We don't have the problems people think we have,'' Mrs. Giambalvo
said. '
    When a school's enrollment has gone from 8 percent to 36 percent
minority in three years, it is difficult, no matter the number of pep
rallies.
    No one knows it better than the principal himself, David Kreutz.
''At some point a school tips,'' Kreutz said. ''You reach a certain
minority population, and people get a stereotyped view. It's very bad
for a school.''
    State education officials, concerned about the racial balance in
this suburban school district, have spent several months conducting a
civil-rights investigation, due out soon.
    The problems they have found, in one of the first sections of Long
Island to become densely populated after World War II, are expected
to be increasingly common as the nation's suburbs age. The first
postwar group of white newcomers is dying off or moving away, and
upwardly mobile minority families are pressing for a life in the
suburbs.
    If whites panic and leave in large numbers, the result can be
segregated schools in the suburbs.
    Elmont Memorial is a few blocks from the Nassau County border with
Queens. It has by far the highest percentage of minority groups in
the Sewanhaka Central High School District. Three of the suburban
district's schools are virtually all-white.
    Several real-estate companies have been fined by the state in recent
years for steering minorities into the Elmont area and whites away
from it. Elmont Memorial's minority enrollment will probably be 41
percent to 45 percent of its 1,500 students by next year, according
to various estimates.
    Because of the district's racial imbalance, the state Education
Department has withheld re-accrediting all of the five high schools
and one junior high school in the district until the schools correct
whatever problems are cited in the civil-rights inquiry. If the
district fails to comply, it could lose the authority to issue
diplomas.
    The investigation has caused tension and resentment here among white
and black parents.
    But civil-rights officials say the state must act soon, before
Elmont Memorial loses its white students.
    Kreutz, 46, knows well how much work it takes to run a school that
has changed so much in such a short time.
    He arrives at 7 a.m. and does not leave until after 5 p.m., comes
back several nights a week and at least once on most weekends.
    Two or three times a day, he will turn to his secretary, Lucy
Castellanos, and shout, ''Lucy, I'm going into the halls,'' and he is
gone, patrolling, picking up litter, checking hall passes. More than
anything else, he is being seen - the principal.
    Kreutz declared Jan. 14 to Jan. 18 Human Relations Week and planned
an extensive program. Everyone in the building - teachers, students,
secretaries and janitors - was required to go.
    So far, it appears to be working. People at the school generally
seem to get along. Nate Goldstein, the teachers union representative
in the building, said he looked forward to coming to work. ''When I
tell people the things that go on at our school, they can't believe
it,'' he said.
    In November, at the Faculty Follies, the principal went on stage as
Michael Jackson, and his building union representative was a tulip.
    (MORE)
nn
    
nyt-02-05-85 0458est
n147  0208  05 Feb 85
BC-ELMONT-I 1stadd
NYT NEW YORK: was a tulip.
    The change at Elmont Memorial angers Vincent Marinelli, the starting
quarterback on the school football team.
    ''Used to be when people heard you're from Elmont, they'd praise
you,'' he said. ''Now all the people are moving away. The black
people, they act like they own the school.''
    There are plenty of stories on both sides. One day two white boys
came up to a black girl, Avonnie Wiltshire - who has won state awards
for her original piano compositions - spat in her hair and ran away.
    A Hispanic boy shot a white boy at school two years ago. Until the
shooting, the drama club had planned a production of ''West Side
Story.'' They put on ''South Pacific'' instead.
    It is taken as a healthy sign by all involved that ''West Side
Story'' is on again for this year.
    Nationally, suspensions tend to increase at schools as their
minority population grows. Civil-rights leaders complain that
minorities are suspended at too high a rate.
    Yet at Elmont Memorial, during a time when the minority population
has more than quadrupled, suspensions dropped, from 500 in 1980, when
Kreutz first came, to 119 last year. The principal has created a
discipline system that keeps most students from missing school if
their parents come for a conference.
    Last year the principal and two assistant principals held 600 parent
conferences - before school, after school, at night and on weekends.
    Most of the minority families moving into this middle-class area are
upwardly mobile people buying their own homes.
    School officials give several reasons for why the growth of a
population that appears to be of the same economic class creates more
challenges for the school staff.
    First, Kreutz said, the incoming minority families are not really of
the same economic class. To make the mortgage payments, he said, two
and three minority families sometimes live in a home.
    Even in single-family households, there is a difference. Often, both
parents in the minority family must work to pay for the home they
have bought in Elmont. The whites they replaced tended to be
traditional ethnic families, in which the father was the family's
sole support.
    Of the four communities in the central district - Floral Park, New
Hyde Park, Franklin Square and Elmont - Elmont, the only integrated
community, has the highest number of two-paycheck families. In
two-paycheck families, there often is less parental supervision,
Kreutz said, which can increase student discipline and academic
problems.
    The second challenge in teaching these minority children, said
Kreutz, is that many at Elmont are foreign-born, frequently from the
Caribbean, South America and Asia. From an educational standpoint,
that has both a good and a bad side.
    The good is that these children are bilingual and do well in foreign
languages. Elmont Memorial is the only school in the district to
offer fifth-year French and Spanish.
    The bad is that their deficiencies in English hurt them on
traditional, standardized testing. Innovative work by teachers can
overcome some but not all of the problems with English.
    For example, an aggressive remedial program has helped a higher
percentage of Elmont Memorial 11th graders pass the Regents English
competency test in the last five years than at the neighboring high
school, Floral Park High, which is virtually all-white.
    Yet, in most standardized testing, Elmont's minority students do not
perform as well. Ten years ago, when Elmont Memorial was all-white,
50 percent of its graduates went on to four-year colleges. Today, it
is about 37 percent.
    Of the five high schools in the district, Elmont Memorial ranks last
in number of Regents scholarships and in the number of students
graduating with Regents diplomas.
    A third complicating factor for the school's staff is the extra time
and energy required to maintain calm at a school that is changing so
fast. Little can be taken for granted. Last year Kreutz let students
select a locker wher they pleased. That was a mistake. He wound up
with black corridors and white corridors, just like little segregated
neighborhoods. The white youths were nervous about walking through
the black corridors, and vice versa. nn
    
nyt-02-05-85 0508est
n148  0219  05 Feb 85
BC-ELMONT-I Addatend
NYT NEW YORK: vice versa.
    
    This year there was forced integration - students were assigned
lockers by homeroom. And the staff keeps checking to make sure no one
trades.
    Finally, no matter how great a school is, there is a societal
prejudice that a ''minority'' school will not be as good. Eventually,
Kreutz said, that can become a self-fulfilling prophecy, chasing away
prospective home buyers who can afford to live elsewhere.
    At a community meeting not long ago, for example, a white woman
announced that she would not send her children to Elmont Memorial -
everyone knew it was a zoo, she said.
    Kreutz believes that when prejudice is factored in with all the
other points, it adds up to this conclusion: The historic 1954 United
States Supreme Court civil-rights ruling - that racially separate
education is unlikely to be equal education - still holds true, even
in a middle-class suburb.
    Kreutz knows how important his staff's morale is, and he is
politically astute in keeping it high. In a time of shrinking
enrollments and job layoffs in education, he knows that one way to
hold on to teachers is to get students to take more courses. The more
courses offered, the more teachers needed.
    As part of this push, he holds an ''Electives Day,'' which is a way
of advertising the flashy aspects of courses being offered the next
semester. Older students show younger students how to dissect frogs
and other worthwhile skills. Pretty soon, students start thinking
that if they can cut things up, an extra biology course might not be
such a bad idea.
    ''The total credit load of our youngsters has increased
substantially in four years,'' Kreutz said.
    He encourages teachers to take days off to visit other schools on
Long Island. ''It's ...important to be exposed to different ways of
doing things,'' he said.
    To stretch his budget, he repairs whatever he can. ''This paper
folding machine, I found in the basement and fixed it,'' he said.
    ''I do a lot of gimmick stuff,'' he said. ''There's a big new
electric sign outside announcing school events.
    ''I march all the time in local parades - Pride in Elmont Day - I
was there. We run pep rallies in fall, winter, spring. People say,
'You can't hold a pep rally, all the kids will go home early.' I seal
off my building. No one leaves.''
    He imprints the school motto on pens and hands them out around town.
    ''Did I mention there are 90 members in the Future Business Leaders
of America? We've got a terrific program, terrific.''
    He ducked into a reading lab, where videotapes of old Flash Gordon
serials are used to teach new vocabulary words. ''Isn't that
something?'' he said, motioning toward the screen.
    There are, of course, all sorts of victories at a place like Elmont
Memorial that are not measurable by standardized tests. What value
should be assigned to the friendship between Lisa Herring and Patti
Heffernan?
    Lisa, black, and Patti, white, are two of the stars of the girls'
basketball team.
    They have no big reasons why they are friends. ''I get along with
everybody,'' Patti said. ''Some people don't get along with
anybody,'' Lisa said.
    The girls' basketball team is famous for getting along. ''We don't
know why,'' Lisa said, ''we just get along.''
    Joanna Commander, the coach, grew up in an integrated community and
was the only white person on her high school basketball team. After
games, the black girls walked her home to make sure she was safe.
    The bell rang, the halls were instantly packed and Kreutzsaid
''Hiya, how you doing?'' to about a hundred people. Suddenly he
stopped in a crowded spot and focused on two boys walking by casually.
    ''Boys, what are you doing?'' he said. ''Do you belong here?'' They
did not. They go to another school. ''Out,'' said the principal.
''Out.''
    One of the boys said that he had his rights. There was a tense
moment as students gathered. Suddenly, Kreutz's voice grew quiet and
precise. ''I will give you one warning,'' he said, ''and then we will
call the police.'' The boys forgot about their rights and left.
    In the chaos of crowded halls, in a school of 1,500, how had he
recognized two outsiders? ''I know my kids,'' Kreutz said.
    During the recent Human Relations Week, students at Elmont Memorial
often puzzled over whether people in general were getting along
better.
    An Italian-American boy named Lewis was hopeful. ''My parents are
prejudiced, and I'm just glad I'm not like that,'' he said. ''The
kids younger than us will be less prejudiced, and after that, the
other generations will have no prejudice altogether.''
    ''Why are you different than your parents?'' asked Susan Okun, the
social worker leading the group.
    ''Well, I just opened my eyes,'' Lewis said.
    (Next: A community resists previous patterns of racial change.)
    
nyt-02-05-85 0518est
n149  0231  05 Feb 85
BC-TV-TONIGHT ADV07
ATTENTION EDITORS: THE FOLLOWING MATERIAL MAY BE USED ONLY
BY SPECIAL ARRANGEMENT WITH SPECIAL FEATURES. FOR PURCHASE
INFORMATION SEE END OF COLUMN.
FOR RELEASE: THURS., FEB. 7, 1985
NOT FROM THE NEW YORK TIMES
Copyright 1985 Rick Sherwood
TV-TONIGHT COLUMN
By RICK SHERWOOD
(Editors: Please check local listings for time and channel. All times
listed are EST unless otherwise specified.)
    LOS ANGELES -- Barry Manilow will make his acting debut in a
made-for-TV musical for CBS, based on his hit song ''Copacabana.''
    The film, a period piece set in the 1950s, about a nightclub known
as the Copacabana, will feature 10 original songs by the singer.
    Dick Clark will produce. The project, slated to go before the
cameras on March 25, and to air by year's end, is believed to be the
first musical ever made for the small screen.
    HIGHLIGHTS BOX
    ''The Cosby Show,'' NBC at 8 p.m.: The Golden Globe award for best
actor and best new comedy went to Bill Cosby and ''The Cosby Show.''
Cosby did not attend the ceremony. In tonight's installment, Cliff
and Clair don't believe that the marijuana that falls out of one of
Theodore's schoolbooks isn't his. Malcolm-Jamal Warner stars.
    ''The Bad Seed,'' ABC at 8 p.m.: Film fans will remember the
wonderfully camp 1956 adaptation of this play featuring a chilling
performance by little Patricia McCormack. This new TV film plays
without the camp and with the mystery intact. Young Rachel Penmark
stars as the seemingly polite and terribly precocious kid who, much
to the dismay of her mother, seems to be made of evil. It's different
and very good. Blair Brown, Lynn Redgrave, David Ogden Stiers also
star.
    ''Mystery!,'' PBS at 9 p.m.: Agatha Christie mysteries continue with
''The Mystery of the Blue Jar.'' In it, a man hears a woman's cries
for help every morning on the golf course, but he's the only one who
hears anything. Michael Aldridge stars.
    ''Hill Street Blues,'' NBC at 10 p.m.: Ratings continue to sag
following the December rerun cycle, despite the fact that the show is
going through another one of its renewed lives. In tonight's
installment, the Blues continue their search for a brutal killer of
prostitutes; Furillo intervenes when the Chief and Mayo have a nasty
public scene that could cost Mayo her badge; LaRue pulls another one
of his practical jokes, but this one could prove tragic. Daniel J.
Travanti, Kiel Martin star.
    SERIES SAMPLINGS
    ''Magnum, P.I.,'' CBS at 8 p.m.: Conclusion of a two-parter in which
Magnum and T.C. are rescued by an underground Cambodian group and
finally discover why they were tricked into making the trip West. Tom
Selleck (who won the Golden Globe as best dramatic actor) stars.
    ''Family Ties,'' NBC at 8:30 p.m.: Jennifer is reacting badly to the
new addition in the Keaton family. No one knows how to handle her.
Tina Yothers stars.
    ''Simon & Simon,'' CBS at 9 p.m.: The boys get involved when a
teenager who has kicked a drug habit is framed in a bust and runs
away rather than deal with it. Claudia Wells guests.
    ''Cheers,'' NBC at 9 p.m.: Norm is busted for mail theft while
substituting for his sick buddy. George Wendt, John Ratzenberger star
    ''Night Court,'' NBC at 9:30 p.m.: When Bull has an identity crisis,
his friends try to discourage him from becoming a pro wrestler.
Richard Moll stars.
    ''Knots Landing,'' CBS at 10 p.m.: Gary fails to heed Abby's demand
that he give up all contact with Val; Abby worries that Galveston
will make good on his threat against her. Donna Mills stars.
    ''2020,'' ABC at 10 p.m.: A probe of the controversy surrounding a
new medical procedure said to cure nearsightedness.
    ''Night Heat,'' CBS at 11:30 p.m.: The boys shoot an ''armed''
robber whose gun can't be found in this first-run Canadian police
drama. Jeff Wincott stars.
    ''Late Night With David Letterman,'' NBC at 12:30 a.m.: Singer
Johnny Cash and boxer Leon Spinks guest.
    CABLE CALLS
    ''College Basketball,'' ESN at 8 p.m.: Virginia at North Carolina.
Live.
    ''College Basketball,'' USA at 8 p.m.: Kentucky at Vanderbilt. Live.
    ''NBA Basketball,'' TBS at 8:05 p.m.: Detroit at Washington. Live.
    ''Visions of Death,'' WOR at 9 p.m.: A bizarre 1972 TV drama about
the supernatural powers of a college professor suspected in a bombing
incident. Monte Markham, Telly Savalas star.
    ''Classically Cuban,'' A&E at 10:25 p.m.: A profile of
dancer-choreographer Alicia Alonso.
    ''NBA Basketball,'' WOR at 10:30 p.m.: New York at Portland. Live.
    ''College Basketball,'' ESN at 11 p.m.: UCLA at Washington State.
Live. (May not be seen in the Los Angeles area.)
    ''The Maggie'' (a.k.a. ''High and Dry''), WOR at 3 a.m.: The late
Paul Douglas turns in a strong performance in this entertaining
British comedy from 1953 about a Scottish sea captain who tries to
outwit an American businessman (Douglas).
-0-
Distributed by Special FeaturesSyndication Sales
For information concerning the above material contact Chuck Weiss at
Special Features (212) 972-1070. After 5 p.m. contact The New York
Times News Service (212) 556-1927.
Clients located west of the Mississippi call Paul Finch in Los
Angeles at (213) 852-1579.
 
    
nyt-02-05-85 0530est
n150  0242  05 Feb 85
BC-KING
By SAMUEL G. FREEDMAN
c.1985 N.Y. Times News Service
    NEW YORK - A New Yorker active in the theater industry went for a
haircut recently. He had gone to the same barber for 12 years and the
barber had rarely talked about theater. This time, however, he not
only brought up the subject but asked a favor. Could his customer
help him get tickets to ''The King and I''?
    That incident suggests why the revival of the Rodgers and
Hammerstein musical at the Broadway Theater has become the financial
phenomenon of the season. The show had sold $8.2 million worth of
tickets as of last Friday, largely by attracting an audience that
rarely attends theater and longs for the sort of classic musical
''The King and I'' typifies.
    Certainly, much of the appeal was inherent in the property: an
established play with its original star, Yul Brynner, in what is
billed as a farewell engagement. Beyond those factors, however, ''The
King and I'' reflects the success of a television marketing campaign
developed by Mitch Leigh, the producer and director of the revival,
during four years of road engagements with the show. That campaign
aimed for women and children living outside Manhattan and it seems to
have found them in abundance.
    ''We were trying to aim for a nontraditional theater audience,''
said Larry Miller, the president of Corinthian Communications, the
company that bought television advertising time for ''The King and
I.'' ''We wanted white-bread Middle America. Not necessarily
downscale, but not a person who goes to the theater four or five
times a year. We wanted people who went once a year - maybe - and we
wanted this show to be their one.''
    Leigh explained: ''It's a real family show, and we marketed it that
way. To say I did it would be ridiculous. When you have one of the
last great theater stars in one of the great musicals, you have a
gilt-edged beginning. But I did take the lay of the land.''
    A gilt-edged beginning, Leigh knew from experience, was not always
enough to sell a Broadway show. He produced a revival of ''Mame''
with its original star, Angela Lansbury, at the Gershwin Theater in
1983. It ran for 41 performances and lost ''a considerable amount of
money,'' Leigh said.
    The road tour of ''The King and I'' had convinced Leigh its audience
was strong on suburban families who did not normally attend theater,
and that such people were best reached through television. But in New
York, the theater capital of the nation, conventional wisdom holds
that a show should be promoted through print advertising because
there is a large, committed theater audience right in the city.
    In general, Leigh violated that rule. For the first month of
promotions for ''The King and I,'' he did advertise only in
newspapers, and primarily The New York Times. He repeated one
particular advertisement that had worked well on the road, a picture
of Brynner with the slogan ''Give Yul Brynner to someone you love for
Christmas.'' The month of advertisements brought in an advance sale
of $500,000 - respectable but nothing of hit proportions.
    Then, shortly before the show began previews last Dec. 26, Leigh and
Miller launched a television advertising campaign that cost up to
$175,000 a week, a figure three times higher than the usual
large-budget television push.
    Ticket sales boomed. The show sold $1,541,547 worth of tickets in
the week of Dec. 30-Jan. 6, when it was still in previews. On Jan. 9,
two days after opening to generally good reviews, it did $295,600
worth of business. And 80 percent of the ticket sales came from
outside Manhattan, according to telephone charge records.
    That statistic confirms the impression of theater experts. ''I have
no hard data, but my opinion is that it's a broader-than-normal
audience,'' said George Wachtel, the director of research for the New
York League of Theaters and Producers. ''You're getting past the
suburbs into the hinterlands. I don't know if you're bringing people
back to the theater from 20 or 30 years ago, but you are getting
people whose frequency of seeing theater has gone down in recent
years, people who are discriminating theatergoers in a sense.''
    Producers call this group the ''bridge and tunnel'' audience -
people with a taste for traditional Broadway fare, particularly
comedies and lavish musicals. ''When 'The King and I' was done at
first, it was thought to be an elitist play,'' said Bernard Jacobs,
the president of the Shubert Organization, in whose Broadway Theater
the revival is playing. ''This time, it's the common-denominator
play.''
    ''The King and I'' is to begin yet another spurt of television
advertising today, with $80,000 worth of advertising time in the next
two weeks. These commercials will be 10- and 30-second ''reminder''
spots, rather than the original 60-second commercials, Leigh said. It
is conceivable, he added, that ''The King and I'' will sell out the
remainder of its 19-week run, which ends on May 4.
    If so, those close to the marketing campaign maintain they will not
be surprised. ''The key phrase is 'media blitz,' '' said Miller of
Corinthian Communications. ''We did business out of town. We expected
to do it here, too.''
    
    
nyt-02-05-85 0542est
n151  0254  05 Feb 85
BC-STOCKMAN
(WashPage)
By BERNARD WEINRAUB
c.1985 N.Y. Times News Service
    WASHINGTON - It is evening and David A. Stockman sits in his office,
his tie loosened, his eyes weary, chain-smoking as he examines final
changes in the Reagan administration's budget.
    ''Making choices is the hardest part,'' he says. ''It's hard in the
sense that the budget is so big and the political system - the
administration, the leadership, the major elements in Congress - are
just like so many blind men circling around an elephant all grabbing
at a different part, thinking that's where the solution lies and
having a total lack of knowledge or comprehension about the remaining
anatomy.''
    After four years of directing the Office of Management and Budget,
the graying, 38-year-old architect of what has come to be known as
the Reagan Revolution seems reflective, a bit brooding and yet
somehow energized as he awaits reaction to the budget for the fiscal
year 1986.
    Each year at this time rumors circulate that Stockman will leave the
administration. ''A seasonal prediction,'' he said with a laugh. Yet
he added: ''You can't stay on indefinitely. It's a heavily taxing
job, not just in the hours or the intensity of the work but also in
what we might call the human relations dimension.
    ''It's the one institutionalized position in government where you're
supposed to say no to everybody,'' he said. ''Sometimes saying no
gets fairly tense, whether it's people on the Hill or Cabinet
departments. It's sort of relentless. Every time you think you've
sort of accomplished something, three weeks later they come back and
tell you the issue wasn't solved at all. You have to go back and have
another fight. Nothing is solved permanently.
    ''I won't mention anyone's name, but there's one Cabinet officer
I've had a fight with on the same issue, slightly varied, without
exception, every four months in the last two years,'' he said. ''His
bureaucracy keeps revising our decision, and mine gets into the
fight. Relentless.''
    Even his enemies concede that Stockman, a former congressman from
Michigan and one-time antiwar radical, is witty, energetic,
complicated and often brilliant and has a dazzling mastery of the
federal bureaucracy and budget process.
    The Wunderkind of the Reagan administration in early 1981, Stockman
nearly lost his job, and damaged his standing with the president,
after confessing in an Atlantic Monthly article by William Greider
his own private doubts about his own budget numbers and the ability
of the Administration to balance the budget while cutting taxes.
    He speaks uncomfortably now about that experience. ''You're looking
at two dimensions: what did I feel about it personally and what did
it do to me objectively in terms of function,'' he said. ''On the
second dimension it was obviously a problem because in this sort of
cockpit of Government you develop enemies no matter how nice a guy
you are. This became a kind of case to be used against me when people
were inclined to. It was always there.''
    On a personal level, he said: ''When it happened it was totally
unexpected and created a falderal that I've never experienced before.
It was kind of traumatic.''
    Stockman's foes on Capitol Hill and social welfare research
organizations say, essentially, that he ''cooks figures'' in denying
contentions that the administration's budget cutbacks have fueled
poverty. ''Anybody who disagrees with you always accuses you of
cooking numbers,'' Stockman said. ''It doesn't bother me, because I
know it's not true.''
    Beyond this, in the presidential election campaign against Walter F.
Mondale, Reagan and Stockman appeared to downgrade the importance of
the federal budget deficit. Yet days after the election, Stockman's
deficit figures began to grow and have kept on growing.
    ''That's a totally bad rap,'' the budget director said. ''At the
level of rhetoric - how much you're playing it, how much you're
publicly worried about it, how much you're talking about it - it was
downplayed in the campaign because the budget cycle starts after the
election.''
    Stockman concedes that his work habits - he rises at 4:30 a.m. to
work at home in Potomac, Md., before arriving at his office at 7:30 -
will change once his wife, Jennifer, has their first child in April.
    The former Harvard Divinity School student says he has little time
to think about his legacy as budget director.
    ''People who think about a legacy look at the forest from a distance
and have great visions about how they're going to reshape it,'' he
said. ''But once you get into this job you're caught in the trees,
twigs, branches. It's kind of hard to tell where you've been and
where you're going.''
    The major success of the past four years, he said, was that ''the
whole momentum of the '60s and '70s of new programs, new
interventions, new fixes, the expansion of the size and scope of
government, has been totally eliminated. Within the system, nobody's
being rewarded anymore because they came up with a great new
money-spending idea. That doesn't work anymore.''
    The next four years, he said, will focus on limiting the Federal
budget deficit and, specificially, driving Congress to reduce
spending without raising taxes and sharply cutting the rate of growth
in the military budget.
    
nyt-02-05-85 0553est
n152  0258  05 Feb 85
BC-STOCKMAN Aaddatend
NYT military budget.
    ''There aren't any other choices,'' he said. ''There'll be a little
bit of an argument about defense, but that's more sound and fury
rather than substance. So you get a couple of more billion dollars,
one way or another that's all that's going to happen. People think
there's a gold mine in cutting defense. Well there isn't. Once you
get to bearing down on defense, as the senators are doing now, they
aren't going to want to cut much more than we did.''
    -
    Discussing his student days, Stockman said he ''got rid'' of his
leftist views before graduating from Harvard. ''In terms of the
idealism of people who haven't been through the struggles of
political life, I had a good measure of that when I got here,'' he
said. ''After four years I don't have much idealism left.''
    Why? he was asked.
    ''Idealism ultimately is based on a certain presumption, even
arrogance, that you are possessed with a doctrine, a blueprint, that
will fundamentally reorganize the structures of a complicated
society, and millions of people will be better if your doctrine is
imposed,'' he said.
    ''But the longer you're in the daily meshing of the political gears
of this society, the more you realize that nobody's doctrine should
be turned loose on the system. Besides that, the forces of status quo
and continuity far overwhelm any doctrine that might mobilize,
energize.''
    -
    Stockman views his job as a ''combat field'' and is uncertain how
long he will remain.
    ''Once you get engaged in the combat field, you hang on for dear
life to keep your team moving forward,'' he said. ''That's where I am
now. I don't know how long it'll take.''
    ''You can't carry the combat metaphor too far,'' he said with a
smile. ''It's civil combat. But in this job, almost invariably your
next meeting is to tell somebody why you disagree with them or try to
persuade them to do what they don't want to do. So it is combat, it
is.''
    
    
nyt-02-05-85 0558est
n153  0310  05 Feb 85
BC-ASBESTOS-2Takes-(Balt.)
     By Sheridan Lyons
    c. 1985 The Baltimore Sun
    
     Efforts to remove asbestos from schools, homes, hospitals,
government buildings and factories may soon grind to a halt across
the nation because contractors can't get the liability insurance they
need.
     The $20 billion asbestos-removal industry is facing a mounting wave
of insurance cancellations because insurers simply don't want to have
anything to do with the insulation material that has been linked to
cancer.
     Some industry officials predict a crisis that eventually will throw
the issue into the lap of the federal government, and, ultimately,
the taxpayer.
     ''I've talked to literally hundreds of contractors and insurance
agents over the last four or five months, and no one has been able to
tell me of a single insurance company writing this business,'' said
Stewart M. Huey, executive director of the National Asbestos Council,
an industry trade group.
     ''Now, the word asbestos is enough to cause paralysis in . . .an
underwriter's pen,'' said Charles W. Havens, a partner in the firm of
LeBoeff, Lamb, Laiby and MacRae, general counsel in the United States
for Lloyd's of London.
     So, despite a surplus of work and a shortage of contractors, an
industry conservatively estimated at $20 billion and worth perhaps a
million jobs nationwide has contractors closing down and walking away
from multi-million dollar contracts.
     In Maryland, the state has filed at least $500 million in claims
against 48 manufacturers of asbestos to help pay for removal from
schools, hospitals and other public buildings. Similarly, county
governments have filed huge claims of their own to help pay for
removal in county-owned buildings.
     ''The state of Maryland is going to want to remove asbestos, is
going to have to get contractors, and the contractors are going to
have to be covered - and they're not going to be able to get
coverage,'' said John V. Quinn, executive assistant to Maryland's
insurance commissioner. ''It's a scarey thing.''
     Mr. Quinn said he knows of only five insurance cancellations
against Maryland contractors so far, ''but we all know it's not going
to stay small.''
     ''We haven't seen anything here of a huge nature, but I can see it
coming. I'm not deaf, dumb and blind. . . I'm not in a position to
say nobody can get insurance here; I suspect it, but I don't know
it.''
     Contractors in Maryland and elsewhere are scrambling to find
coverage wherever they can.
     Friday, as many as 100 asbestos removal contractors, gathered in
Shreveport, La., to create their own self-insurance plan, and - more
importantly, some say - to set up strict regulations for member
contractors, which they hope will give insurance companies more
confidence in the safety of the work they do.
     Asbestos is known to be deadly, causing scarring of lung tissue and
fatal cancers that don't occur until ten to 40 years after exposure
making the potential pay-outs by an insurer impossible to predict.
     Gerald T. McCarry, project director of safety and health for the
19,000 members of the International Association of Heat and Frost
Insulators and Asbestos Workers, cited studies showing a 40 percent
death rate in a sample of 670 workers exposed to asbestos from 1943
to 1963, and 45 percent from 1963 to 1973.
     ''There was no protection then,'' he said.
     But now, contractors say the health risk for workers is almost
non-existent with a responsible company. They say that removing
asbestos in a sealed area, with special equipment and workers
protected from head to toe, doesn't compare with the casual way the
insulation material was installed before it was found to be dangerous.
     But they also say they understand the basis for the insurers' fear.
Asbestos removal is a new and largely unregulated industry that
almost anyone can get into - set against a shifting legal climate in
which huge lawsuits are underway by those exposed to asbestos before
it was banned in the mid-1970s.
     The Johns-Manville Company, for example, once the nation's largest
asbestos producer, already faces claims in excess of $2 billion
against it from persons who have died or are dying from asbestos
related illnesses and from governments and industries seeking to have
the firm pay for its removal.
     From the perspective of the insurance companies, insuring that the
removal job is done well and doesn't endanger the health of those who
will continue to use the facilities is risky at best.
     Further, the insurers point out, it is difficult to determine what
to charge for insurance against a time bomb that may go off in an
unknown economy sometime in the future.
     ''There is still such a potential for huge losses, and we haven't
come to grips with the ones we know,'' said Mindy
el0 Pollack assistant general counsel for the Reinsurance Association
of America. The uncertainty of the risk involved has scared off both
the primary carriers and the reinsurers, she explained.
     ''What happened was we had this really big movement at the state
level to get the asbestos out, especially in the schools,'' said
Patricia A. Borowski, vice president for government and industry for
the National Association of Professional Insurance Agents.
     Suddenly, she continued, the insurance industry was confronted with
asbestos-removal contractors. ''Where did they come from and what had
they been doing all their lives? Taking shingles off roofs?''
    
     MORE
    
    
    
nyt-02-05-85 0609est
n154  0322  05 Feb 85
BC-ASBESTOS-1stadd-(Balt.)
    
     pickup xxx off roofs?''
    
     But she contends insurance only addresses a small portion of this
question. ''You can't expect the insurance industry to take on the
responsibility of this movement to get rid of asbestos,'' she said,
suggesting that the government has to become involved in the process.
     ''With no standards, no guidelines as to how this stuff should be
taken out. . It makes for a perilous situation. How can you provide
insurance for someone with no track record, without even a set of
guidelines?'' she continued.
     Maryland is the only state in the nation that requires both
certified training for workers and licenses for any removal company
doing work in the state, backed up by fines up to $10,000, according
to Dr. Katherine Farrell, chief of Environmental Diseases Control in
the state health department.
     Dr. Ferrell said the state's procedures are being evaluated by the
Enivronmental Protection Agency as it attempts to devise a federal
model, which may be ready at the end of this year.
     Despite efforts by contractors to come up with a self insurance
plan and tighter regulations, the asbestos workers may have to fall
back on the federal government, which they claim has been slow to
devise comprehensive regulations, and even slower to come to the aid
of the growing number of companies without insurance.
     The Senate's environment and public works committee plans hearings
on the insurance problem, but has been delayed by changes in
committee assignments, said Barabara Magnuson, legislative assistant
to Sen. James Abdnor (R., S.D.). The senator was the prime sponsor of
last year's Asbestos School Hazard Abatement Act, a $50 million
program to find asbestos in schools.
     The first signs of trouble involving liability coverage for the
asbestos-removal industry came last fall, according to Mr. Huey, of
the National Asbestos Council, Inc., when a few contractors around
the country began getting insurance cancellation notices.
     Mr. Huey said he thought at first these were isolated cancellations
aimed at shoddy contractors. Then, he said, more and more big,
reputable asbestos removal firms were dropped after years with the
same insurer.
     Friday's meeting of contractors in Shreveport was organized by
Larry Ledford, president of Emergency Response, Inc., and a member of
the National Association of Asbestos Abatement Contractors. A former
Louisianna state trooper with expertise in environmental emergencies
such as chemical spills, Mr. Ledford said a major client asked him to
get into the asbestos-removal business.
     His business was booming, Mr. Ledford said, until his insurance was
cancelled abruptly about a year ago. When he couldn't find new
insurance (''Lloyd's of London laughed us out of the office,'') he
suspended his business.
     ''I had to turn down three-quarters of a million in work just last
week,'' Mr. Ledford said. ''I can get insurance for handling
dynamite, but not for handling asbestos.''
     He said he's not alone: ''You want names? I can give you a list of
600 who've been cancelled. There just is no insurance for asbestos
contractors . . . that totally covers a contractor that I can find.''
     He said he's been working almost full time since October on the
insurance problem, bringing insurance representatives in on the pool
idea, hoping that their participation, with high deductible and
strong policing, will make it work.
     Thomas J. Major, president of Major Insulators, Inc., of Golden,
Colo. and head of the asbestos council's insurance committee, said a
proposal is pending with one large international broker, but even
with that, coverage wouldn't be available for a year - too late for
many contractors.
     Eventually, Mr. Major predicted, the federal government will have
to step in and agree to cover losses after some cutoff point, as it
did with flood insurance programs.
     ''That means the only people left to foot the bill are you and me,
the taxpayers,'' he said.
     In other parts of the country, most of those interviewed said the
insurance cancellation wave has already crested.
     ''We first started hearing about this in the fall,'' said Mr. Huey,
of the National Asbestos Council. ''My initial reaction was 'What's
the matter with you?' Then, reliable contractors started calling -
ones with excellent records, and they weren't arguing about the rates
- and they were still being cancelled.
     ''Then, I began to wake up to the fact that this is happening
around the country . . . We've looked all over and we can't find
anyone to write the kind of coverage for long-term effects of
asbestos released in fiber form,'' Mr. Huey continued.
     The work is safe when done properly, he said, but contractors must
have coverage to bid on public jobs.
     Several insurance industry representatives agreed that they will
not be the ones to solve the problem.
     Locally, Harry D. Raker and C. Marshall Williams, of Abestos
Engineering, Inc., in Jacksonville, still have insurance through
June, but expect to be cancelled. Mr. Raker was one of the Maryland
contractors at the hastily called meeting in Shreveport.
     Thus, the stalemate: while governments, health officials,
principals and parents clamor for immediate asbestos removal,
contractors are immobilized by the insurance industry's refusal to
budge on what it perceives as a prohibitive risk.
    
     End Asbestos
    
    
nyt-02-05-85 0621est
n155  0327  05 Feb 85
BC-EDITORIAL-I-(Balt.)
     Editorial I
    c. 1985 The Baltimore Evening Sun
    
     The escape artist
    
     As the President submits a near-trillion dollar federal budget, the
thought occurs that Ronald Reagan resembles Harry Houdini. Both were
entertainers, but they were more than that. Each was a great escape
artist.
     Houdini dazzled the world by allowing himself to be chained and
locked in ingenious restraints, but he always escaped.
     That's what Reagan has been doing for all of his life - escaping
from political traps of his own or his adversaries' making.
     Maybe John Anderson, the 1980 independent candidate, was the first
to notice the Houdini resemblance when he was asked how Reagan could
fulfill his campaign promise to cut taxes, increase defense spending,
and balance the budget all at once. You do it, Anderson deadpanned,
''with mirrors.''
     Well, the mirrors did the trick: Reagan cut taxes and increased
defense spending, and in 1984 no one seemed to notice - or at least
care - that these things were achieved only by borrowing on an
unimaginable scale.
     But in the process of getting reelected, Reagan placed himself in a
trap that will test his powers as an escape artist to the utmost. By
foreclosing tax increases as well as restraints on Social Security
and military spending, he has effectively precluded every device
necessary to halt the willy-nilly borrowing which has produced
interest obligations so high as to wipe out all of the domestic
budget cuts Reagan has achieved so far.
     Can he escape once more? Perhaps. But we'd best recall that Harry
Houdini, in a moment of inattention at the height of his career,
allowed himself to be seriously injured while performing. Showman
that he was, he went on with the show, making one last escape, but in
the end dying of complications of the injury.
     Houdini never pretended to have supernatural powers, or that he was
anything other than an entertainer. With Reagan, the stakes are far
higher; Congress must help him escape from the locks and chains in
which he foolishly bound himself in the 1984 campaign.
     After all, it's not just Ronald Reagan's political life which is at
stake; it is our nation's future.
    
     End Editorial I
    
    
nyt-02-05-85 0626est
n156  0332  05 Feb 85
BC-EDITORIAL-II-(Balt.)
     Editorial II
    c. 1984 The Baltimore Sun
    
     Growing Wastelands
    
     ''Desertification'' is a fancy word for turning semi-arid,
productive land into wasteland. A surprisingly large amount of the
world's total agriculture is on semi-arid lands. If properly used,
these lands can indefinitely support major grazing, grain growing or
forest industries.
     But proper use grows more difficult as population pressures lead to
overuse and misuse. The Ethiopian famine is in large part a product
of desertification. The disappearance of topsoil from many farms
through wind and water erosion in the U.S. Midwest is another.
Related problems include a sharp decline in the water level of
underground reservoirs that supply vital irrigation water to the
semi-arid U.S. Great Plains, and the poisoning of topsoil in
California's sun-baked Central Valley (and elsewhere) by minerals
leached from lower soil strata by irrigation water.
     The word ''desertification'' conjures up images of sand dunes
rolling southward from the Sahara Desert and covering fertile land in
their path. The reality is very different. In an age-old process,
overgrazing, deforestation or improper farming gradually render
semi-arid land uselessby destroying ground cover and topsoil. The
process is hastened by drought, and vice versa. Reversal of
desertification requires sophisticated human interventions -the cost
of which is rising sharply.
     One educated guess is that about 35 percent of the world's land
surface is threatened by desertification, and that an eighth of the
world's people already have been seriously harmed by it. It worsens
with population growth. Measures to ameliorate it sometimes backfire:
Wells drilled for water encouraged cattlemen in one African area to
add to their herds, which then trampled plants and brought on
erosion. Two key remedies would be to reduce population growth and
provide food for hungry people so they are not forced to overuse
marginal lands.
     Some of the U.S. problems might be solved by Israeli irrigation
techniques that are far more sparing of water than the usual U.S.
methods. The Israeli techniques might also be useful in Africa if
farmers there could be induced to use their new wells for irrigating
crops instead of increasing cattle herds. Whatever approaches are
taken, the poorer areas of the world where desertification is most
serious will continue to require major assistance from developed
nations.
    
     End Editorial II
    
    
nyt-02-05-85 0632est
n157  0341  05 Feb 85
BC-JENKINS-(Balt.)
     By Ray Jenkins
    c. 1985 The Baltimore Evening Sun
    
     Fulbright's View
    
     When the Senate Foreign Relations Committee opened hearings this
week seeking a consensus on American foreign policy, one who was
watching with more than a passing interest was J. William Fulbright.
     For 15 years, from 1959 to 1974, Fulbright was chairman of that
committee -the longest tenure of any man ever to hold that
prestigious yet politically perilous post, and surely the most
tumultuous tenure as well. His opposition to the Vietnam War and the
policies of his own president led to his defeat a decade ago.
     In an interview this week as the Senate inquiry began, Fulbright
said the hearings hold some promise if the senators can bring
themselves to seriously examine ''our obsession about the Russians.''
     ''As I read the interminable and often boring discussions by the
'experts' on arms control,'' he said, ''it infuriates me that no one
suggests that research or even attention should be devoted to
finding, what is the justification for the conviction held by so
many, that the Russians will take such an imprudent and irrational
action as to attack the West? Why do we believe they are so foolish?''
     Soon to turn 80, Arkansas Democrat Fulbright has warm words for
Richard Nixon.
     ''Aside from Nixon's promising -and then aborted -effort to
establish normal relations in 1972,'' he said, ''little attention has
been given to the idea of cooperating with the Russians in joint
non-military activities such as trade, research in medicine,
economics, pollution, cultural exchange, and other endeavors in which
confidence could be created.''
     In such words we catch an echo of the purpose he had in mind when,
in 1946, he sponsored the legislation creating the Fulbright scholar
program, which over four decades has enabled 50,000 American graduate
students to study abroad and has brought 100,000 foreign students to
America.
     ''Yet it is constantly reitereated that our interests and the
Soviet interests are so inherently opposed that there is no
possibility of normal, peaceful relations,'' he said. ''This is said
as a given, without reservation, with complete confidence that no
reasonable man should question.
     ''Well, as one unreasonable man, I question it. It seems clear to
me that our true interests are not served by the arms race, and that
if it continues, it will lead either to the gradual impoverishment of
both superpowers or to armed conflict.
     ''If instead of endless negotiations about all manner of exotic
arms, nuclear and conventional, we seriously considered the effects
of a well-designed program of joint ventures in all possible fields
of activity, we would recognize that nuclear weapons have made the
ancient game of trial-by-battle obsolete and dangerous and that the
competition must be transferred to a different arena, to a
non-military arena where the competition could be vigorous but not
fatal.''
     He is especially troubled over the injection of religion into
foreign policy, ''the sense that God wants us to destroy the
Russians.''
     Fulbright, a former college president, looks to history.
     ''We are mindlessly pursuing policies of a kind that led England
and Germany into World War II without considering that there is an
alternative approach,'' he said.
     ''The truth is, the real interests of both our countries are served
by abandonment of the arms race, stabilization temporarily at the
present level, and the vigorous development of trade and joint
endeavors.''
     Richard Lugar, the Indiana Republican who undertook the foreign
policy inquiry after becoming chairman of the Senate Foreign
Relations Committee this month, was still in knee-pants when
Fulbright went to Congress. They do, however, have one thing in
common: Both were Rhodes Scholars.
    
     End Jenkins
    
    
nyt-02-05-85 0640est
n158  0353  05 Feb 85
BC-VICTIM-(Balt.)
     By Thomas K. Carey, Jr.
    c. 1985 The Baltimore Evening Sun
    
     The experts tell us that certainty of punishment is more important
than severity in combatting crime. If you want to reduce the number
of thefts, you must catch more thieves and be sure to punish in some
way all you convict. This is more effective than punishing severely
the few you can both catch and convict. The idea behind this theory
is the logical if hardly profound assumption that criminals are
willing to risk severe punishment if they are likely to get away with
their crimes.
     I suspect that victims' minds work the same way. Vengeance demands
that the punishment fit the crime. But the punishment cannot fit the
crime. Victims of violent crimes cannot expect to emerge unchanged.
Victims of property crimes still feel a sense of violation that
insurance reimbursement cannot assuage. If justice can never be
perfect, how then can society punish the criminal and compensate the
victim?
     Three years ago, three men threatened and beat Bernard Goetz in New
York. Police caught one of them. The incident wa treated as a minor
crime and handled by a mediator. Goetz applied for permit to carry a
gun. His request for a permit denied by New York authorities, he
bought a gun in Florida. Goetz is on the front page page because he
emptied that gun into four youths who menaced him on the subway.
     Three and a half years ago, three men robbed me as I was getting
out of my car in front of my Ocean City,Md. apartment. They did not
beat me as did Goetz's assailants. One of them simply placed the
point of his knife against my back and threatened to kill me. Time
froze. The other two ran off and the knife-wielder let me go after an
eternity of about two minutes.
     I called the police, who arrived almost immediately, and told them
he had run towards the Boardwalk. Another group of policemen caught
him, still carrying the knife, in an alley near the Boardwalk. I
identified him, the police arrested him, and we searched
unsuccessfully for his partners. An officer then drove me to the
station, where I wrote a report and looked at pictures.
     Four hours after the robbery, I was home. The thieves had left the
pizza I had gone out to get before meeting them, but they had taken
the beer. My wife and I heated the pizza and ate it. I would have
appreciated the beer more.
     A year after the robbery, the man with the knife pleaded guilty to
armed robbery, and was sentenced to 10 years in prison. The following
spring at the Ocean City police station I picked up the money he had
stolen.
     Where Goetz felt as if the authorities regarded his mugging as
minor and did not respond as he thought they should, I felt as if the
police and later the prosecutor and judge genuinely cared about my
robbery. The message given Goetz was ''It's just routine;'' the
message given me was ''This is terrible and here's what we're going
to do about it.'' Obviously, there was not perfect resolution. Two
men got away, and I carry a little emotional scar tissue.
     The way communities respond to crime tells us how much antisocial
behavior is tolerated, and if we are astutue, we modify our behavior
accordingly. I consider what happened to me unlikely to occur again
in Ocean City. I may be more cautious than I used to be, but I do not
live in fear of another street robbery. Robberies are infrequent
there and they are treated as major crimes. On the other hand, I
would never keep a 10-speed bike outside no matter how strong the
chain, nor would I leave clothes on the line overnight in Ocean City
in the summer.
     Judging from the articles and letters about Goetz's subway
shooting, many believe that armed robbery is the New York equivalent
of bicycle theft: ubiquitous and tolerated as an inevitable irritant.
I have no sympathy for the four Goetz shot. I never again will be
able to react without thinking about the knife when a stranger asks
me for the time or change on a street corner or a bus. I resent the
loss of serenity, the need for suspicion where once there was none,
but I find it unacceptable that we must become a community of gunmen
to deter the most base among us.
     No one can guarantee us absolute safety, but our legal system must
treat as serious those crimes that hurt some and threaten us all. I
prefer a society based on the rule of law to one based on the rule of
the jungle. The responsible among us must repudiate street vengeance.
We cannot maintain order and freedom through cowboy justice.
     It is equally irresponsible, however, simply to brand Goetz a
troubled, self-proclaimed avenging angel. His case reflects an
amorphous rage that we ignore at our own peril.
    
     Thomas K. Carey Jr. is a counselor in the Baltimore County school
system and a free-lance writer.
    
     End Victim
    
    
nyt-02-05-85 0651est
n159  0406  05 Feb 85
BC-OTHER-HAND-(Balt.)
     By Dan Berger
    c. 1985 The Baltimore Evening Sun
    
     On the Other Hand
    
     Don't complain about Ron's budget. You probably voted for it.
    
     The way to save health, education and sewers is to label them
weapons in the war against communism.
    
     Congress will rely on convention weapons to shoot down the budget.
    
     The U. S. Army decided to adopt the Italian Beretta handgun that
the Mafia has always found effective.
    
     Mayor Koch's newest weapon to deter subway punks and goons is to
make them ride forever on the BMT.
    
     End Other Hand
    
    
nyt-02-05-85 0652est
n160  0406  05 Feb 85
BC-COWHERD-(Balt.)
     By Kevin Cowherd
    c. 1985 The Baltimore Evening Sun
    
     Every once in a while, college basketball gives us a weekend like
the one just past, a weekend where everything goes according to Hoyle
and people don't clutch their chests when the scores for the Top 20
teams flash on their TV screens.
     For 48 hours on the first weekend in February, everything ran
wonderfully true to form.
     No. 1 St. John's beat Connecticutt by 33. No. 2 Georgetown finally
played like Georgetown again, snapping a two-game losing streak with
a 56-39 victory over Arkansas. No. 3 Memphis State topped Virginia
Tech by nine as the nation's most underrated player, Keith Lee,
scored 25 points and pulled down 12 rebounds.
     On and on it went. No real surprises. No Marquette beating
Syracuse. No Rice upsetting SMU. The Chaminades and the Hawaii-Hilos
of this world would wait for another weekend to work their upset
magic.
     Why, things ran so true to form that Maryland even lost its first
game at Cole Field House to - hmmm, of all teams - Georgia Tech.
Yellow Jacket Coach Bobby Cremins now is 7-2 against Lefty Driesell
in four years.
     When things run to chalk, brother, they really run to chalk.
     Yet perhaps the most predictable news emanated from Bloomington,
Ind., home of the Indiana Hoosiers and their controversial coach,
Bobby ''Call Me Bob'' Knight.
     Saturday, Indiana defeated a outclassed Minnesota team, 89-66. This
would have been a mere two-paragraph blurb in your daily newspaper,
of course, except for one thing: Bob Knight had been playing musical
chairs with his starting lineup. Again.
     You all heard the story: Last week, Knight benched four of his
starters, replacing them with four freshmen. Junior center Uwe Blab
was the lone holdover. Knight said he was trying to shake his team
from a slump. The strategy did not work swimmingly. Last Thursday
against Iowa, Knight eased some of his veterans back in a loss to the
Hawkeyes. That defeat gave the Hoosiers a four-game Big Ten losing
streak - their longest in 13 years.
     Apparently, the state of Indiana did not take all this losing well.
Alumni and IU students were reportedly up in arms. Hoosier boosters
were screaming for Knight's scalp. The media was roasting Knight at
every turn. You had the feeling, from initial reports, that martial
law was just around the corner.
     But against the Golden Gophers, Knight was back to playing his
veterans and his little experiment seemed to be over.
     By halftime, Indiana led 57-24. Blab finished with 26 points and
nine rebounds. Steve Alford, the Olympian and state hero who rode the
bench last week, added 24 points. Indiana played its usual
mugger-in-the-park defense and Knight seemed pleased with himself -
at least pleased enough to trot out all the predictable quotes you
knew he had been practicing.
     ''Our defense was the second best we've played this year,'' he said.
     There was more. Despite the loss to Illinois last Sunday, in which
the freshmen played and his team scored but 12 points in the first
half, Knight said Saturday it was ''the best defense we've played in
two years. Our defense in these last two games is a carryover from
the Illinois game.''
     So there the matter probably will begin to ease from the public
eye. Bob Knight benched some upper classmen to teach them a lesson
about intensity, enthusiasm. With the lesson learned to his
satisfaction, he reinstated them to the starting lineup. In the
meantime, Knight kicked the Hoosier's leading rebounder, Mike Giomi,
off the team on Tuesday for cutting classes and failing to meet the
coach's strict eligibility requirements.
     A typical season for Knight, cry his defenders. The man has his
principles. He wanted to make a point. He made it, and that's that.
     Nonsense.
     The problem with this latest controversy dogging Knight - as it is
with most of the flaps he finds himself in - is not so much the point
he made, but the manner in which he made it.
     No one questions a coach's right to shake up his team. No one feels
Knight was wrong to cut Giomi for missing class and low grades, since
every player at Indiana knows what Knight demands academically.
     But, did Bob Knight really have to maintain his haughty posture of
silence at first, refusing to explain why the popular Alford and
three other starters were benched?
     Knight, with his ego running unchecked, still feels he owes no one
an explanation, not even the alumni and boosters who have unfailingly
supported his program all these years.
     Did he really have to leave Giomi and another player, Winston
Morgan, off the traveling team to the Ilinois game?
     The week before, what sense did it make to refuse Giomi and Morgan
a seat on the team's plane home after a loss at Ohio State? What
lesson did Giomi learn when Knight refused to allow him to ride with
the team to Purdue, forcing him to ride to the game in a car with the
team physician?
     Oh, yes, Knight made his point with this team. He wants to see
intensity on the court - all the time. He wants to see intensity in
the classroom - all the time. Fine. But isn't there a more graceful
way to make that point, especially for someone who professes to be a
teacher?
     Does an air of secrecy - Georgetown's Hoya Paranoya has nothing on
the Indiana program - have to surround everything Knight does? Do
players have to be thrown off team flights, forced to make their own
way to games when they fall out of his favor?
     Sorry. That kind of behavior teaches young players nothing. Nothing
good, anyway.
     So, again, on the first frozen weekend of February, everything ran
true to form in college basketball.
     And, in one corner of America's heartland, in the picturesque town
of Bloomington, Bob Knight was convincing himself once again that he
has never, ever, done anything wrong.
    
     End Cowherd
    
    
nyt-02-05-85 0705est
n161  0414  05 Feb 85
BC-RACING-I-2Takes-(Balt.)
     By Sandra McKee
    c. 1985 The Baltimore Evening Sun
    
     (Racing Part I of a 5 part series.)
    
     Stuart, Va. - The fall of the Roman Empire may have made more
history books, but the fall of the Wood Brothers and Petty
Enterprises in Grand National Stock Car Racing has been no less
startling to those who follow the sport.
     They were on top, the best for more than two decades in GN racing.
     Richard Petty, driving the Dodge for Petty Enterprises. David
Pearson, driving the Wood Brothers' Ford. The two of them dueling in
the sun.
     They were the drivers everyone emulated. Theirs were the teams
everyone wanted to drive for.
     They hounded each other. They competed with a fierceness seldom
found today.
     ''I remember one race at Pocono when I was just a kid,'' said Kyle
Petty, 24, who will drive for the Wood Brothers this season, in a
miraculous move of necessity. ''Daddy and Pearson were running
neck-and-neck, but Pearson's car was leaking oil - at least that's
what Daddy told Dale cousin and crew chief Dale Inman.
     ''Dale told NASCAR about it, but they wouldn't do anything to the
Wood Brothers, so Dale went to their pit and told them to make
Pearson come in, but they wouldn't and Pearson beat Daddy to the
finish. Boy, were they hot at the Woods. The next week, Daddy beat
Pearson by two inches at Talladega9Ala.0 and I think it was one of
the most satisfying moments they had, just because of the week
before.''
     They hounded each other and made each other better because of it.
They were rivals and, for years, what one didn't win, the other did.
The final, classic confrontation came at the Daytona 500 in 1976.
     Richard Petty and David Pearson screaming around Daytona
International Speedway, door-to-door, sheetmetal rubbing and grinding
on the last lap, coming blindly out of Turn Four - so close only one
shadow showed on the sweltering black asphalt. They became so
entangled they slipped out of control, both cars spinning onto the
infield grass.
     Peason kept his foot on the clutch and managed to keep his car's
engine running. He limped over the finish line at 10 mph, as Kyle
Petty ran to his Daddy's car and tried to help the rest of the crew
push it to the finish line.
     No one knew it was Glen and Lenord Wood's last great year. No one
knew Richard Petty would win just one more championship with Petty
Enterprises before the team would begin its downward spiral.
     The Wood Brothers, with Pearson and before him Cale Yarborough,
A.J. Foyt and Marvin Panch, won at least one superspeedway race for
21 consecutive years. They hold the NASCAR record for superspeedway
wins with 77, and most superspeedway victories in one season with 10.
They did it twice in 1972 and '76.
     The Pettys, with Richard driving, won seven Winston Cup GN
Championships and 198 races.
     They were the best - before the decline.
     Just how far they have fallen is illustrated by the current team
working out of the three-bay brick garage in this sleeply little
town, about a stone's throw from the mythical town of Mayberry, made
famous by Andy Griffith.
     ''What caused the crumbling of Petty Enterprises?'' Kyle Petty
repeats the question. ''Probably me driving, more than anything. And
Daddy deciding to switch from the Dodge to the Chevy. Nothing ever
went right after that.''
     Two-car teams have never worked in Grand National racing, but the
Petty's tried it. Father and son, side-by-side, sharing space,
sharing workmen. Sharing family.
    
     MORE
    
    
    
nyt-02-05-85 0713est
n162  0422  05 Feb 85
BC-RACING-I-1stadd-(Balt.)
    
     pickup xxx Sharing family.
    
     ''There was too much family going in too many different
directions,'' Kyle said. ''Daddy knew that. There was too much to be
done. They never got really caught up with the new car, and they
might have been able to, if my team hadn't been there. And then Dale
left over a family fight. He was such an effective organizer, when he
left, he took a lot away from Daddy's team.''
     So Richard Petty left Petty Enterprizes for Mike Curb Racing a year
ago, and won twice, hitting the magic 200-victory platue. This year,
he says, he is hopeful of running for another Grand National title.
     ''I think what happened to Petty Enterprises was money,'' said
Richard. ''Everything revolves around money. It was a situation where
from the time I was out of school everything we made went right back
into the business. Then we changed cars and that meant we needed more
money. We never recovered from that blow, before Kyle came of age and
started racing. 'Course, his coming of age when he did was bad timing
on my part. I guess I should have waited a little to have him.''
     Petty pauses a moment to let his joke sink in, before he continues.
     ''With two cars, we needed more money, but with the way Kyle was
running, he wasn't winning enough to be first class,'' Richard said.
''I hate to see it, all those years, go to waste, but everything
changes.''
     Kyle Petty stayed for another season, but a switch to Ford from
Chevy hurt so much he finished his fifth NASCAR season without a
victory.
     ''There has always been an excuse before for not winning,'' Kyle
said, standing near a workbench in what once was the competition's
garage. ''This year is a critical one for me. If I don't win now,
there are no excuses. This car is top 10 quality, it's up to me to
take it to first place. I'm going to win races. I know it. I've never
doubted me. Not once, even though last year our team could have won
an award for being the most disorganized.''
     While the Pettys were going through their family troubles, the Wood
brothers were suffering too, but their trouble came from beyond the
family.
     First, Pearson left for semi-retirement. Then Purolator, the team's
long-time sponsor moved out. On top of that, the Wood's loyalty to
Ford could not be shaken, even though Ford, at that point, was doing
very little developmental work and the Grand National rules favored
the better-designed Chevrolets.
     Neil Bonnett moved in for a four-year stint, with just nine
victories to show for it. Buddy Baker drove last year, but failed to
win.
     So the Wood brothers and the Pettys were ready to try something new.
     ''The Woods needed a sponsor and a driver and I needed a car to
drive,'' said Kyle for the coming together of the old competitors.
''This was the most competitive Ford I could get in and I'm very
lucky to be in it. You can look back at my career - if you want to
call it a career. You can look at my record, and you know you don't
go much further, or get as bad as I did and still go on.''
    
     NOTE: - The departure of Kyle from Randalman, N.C., has not closed
the doors on Petty Enterprises. Maurice Petty, Richard's brother, has
decided to field a team there. Dick Brooks, whose only victory came
in the 1973 Talladega 500, will be the driver. He will be the team's
first without the Petty name to operate as No. 1 since Lee Petty,
Kyle's grandfather, established the business more than 35 years ago.
    
     TOMORROW: After 26 years on the circuit, Buddy Baker finally is
fielding his own team.
    
     End Racing Part I
    
    
nyt-02-05-85 0721est
n163  0427  05 Feb 85
BC-QUIZ-ANSWERS Undated
(With BC-QUIZ, which moved earlier today)
c.1985 N.Y. Times News Service
    1. Sen. Carl T. Hayden, D-Ariz., whose combined service in the House
and Senate spanned more than 56 years. He first came to the House in
1912 as his state's first representative after Arizona was admitted
to the Union. He then won election to the Senate, serving from March
4, 1927, until retiring on Jan. 3, 1969. He died in 1972 at the age
of 94.
    2. Rep. Carl Vinson, D-Ga., who ranks No. 2 on the overall
congressional seniority list. He served in the House from Nov. 3,
1914, until retiring on Jan. 3, 1965, a span of 50 years and two
months. The Swamp Fox, as he was called because of his uncanny flair
for strategy, died in 1981 at 97.
    3. Rep. Emanuel Celler, D-N.Y., who served in the House from March
4, 1923, until Jan. 3, 1973, or 49 years and 10 months. He lost a bid
for re-election. He died in 1981 at age 92.
    4. Rep. Jamie Lloyd Whitten, 74, D-Miss., who came to the House Nov.
4, 1941.
    5. Rep. Charles Melvin Price, 80, D-Ill., who has served in the
House since Jan. 3, 1945, just over 40 years. Earlier, he was an aide
to Rep. Edwin M. Schaefer for 10 years.
    6. John C. Stennis, 83, DMiss., whose
service in the Senate dates from Nov. 5, 1947, slightly more than 37
years.
    7. Russell B. Long, 66, Democrat of Louisiana, who came to the
Senate Dec. 31, 1948, slightly more than 36 years ago. He now ranks
sixth on the Senate's all-time seniority list.
    8. Only six: Rep. Joseph Cannon of Illinois, who served 46 years;
Justin Morrill of Vermont, whose combined House and Senate service
was nearly 44 years; Sen. William Allison of Iowa, who served nearly
43 1/2 years; Rep. Joseph Martin of Massachusetts, who served nearly 42
years; William Frye of Maine, whose Senate and House service was just
over 40 years, and Carl Curtis of Nebraska, who served in the House
and Senate for 40 years.
    
nyt-02-05-85 0726est
n164  0434  05 Feb 85
BC-EDIT-BUDGET Undated
Eds. 4thgraf, boldface 'only' is italics; also 5thgraf 'added'.
c.1985 N.Y. Times News Service
    The New York Times said in an editorial Tuesday, Feb. 5:
    
    Budget Bluster
    President Reagan's fiscal plan for his second term is honest, but
not sound.
    The federal budget he presented Monday displays some courage and
some leadership. For instance, the president boldly wheels into
battle the mandate of his landslide re-election. He proposes big cuts
in programs that benefit the middle class, and in farm subsidies that
have risen sharply in his administration.
    But compared with the big job ahead, these initiatives are details.
Beyond them all, Reagan persists in his perilous priorities: Full
speed ahead on defense spending, and damn the consequences. Cut
non-defense programs instead, regardless of who's hurt. Leave taxes
alone, mostly. And forget about the deficit.
    ''Forget'' is not exactly right. Do it my way, he says, promising
that by 1988 the deficit will be only$144 billion.
Is there anyone in Washington who believes it will be that low?
    There are only two categories big enough to yield savings big enough
to contain the deficit - Social Security and defense spending. Taken
together, all the many cuts Reagan proposed Monday only offset his
proposedaddedspending for arms and
the growth of Social Security. Even his vaunted spending ''freeze''
is semantic, achievable only by ignoring increased interest payments
on the national debt, interest that results directly from Reagan-year
deficits.
    There are dramatic, and defensible, cuts in this budget, notably the
proposed one-third rollback in farm subsidies. Even with it, farm
outlays next year would be slightly higher than in President Carter's
final year.
    Reagan also deserves support when he applies a means test to
programs that are tailored to the needy, like student loans and
lifetime care for all veterans. Similarly, the administration
proposes to make further progress in its battle to come to grips with
the uncontrolled growth of Medicare.
    But the budget bravery is outweighed by bluster and baloney. Four
years ago, Reagan feigned horror as the national debt approached a
trillion dollars. Now he brags that he has managed to keep a single
year's spending under the trillion mark. What an achievement: He
estimates spending for fiscal 1986 at $974 billion, so close to $1
trillion that rounding errors could put it over the top.
    Moreover, the claim of $50 billion in savings is padded by such
assumptions as user charges, often proposed and never adopted, and by
Pentagon accounting. The fact remains that the current year's deficit
will be $60 billion higher, and next year's $15 billion higher, than
the rosier predictions the administration used during the campaign.
    Congress will surely trim the $314 billion of new Pentagon spending
authority that the president proposes, but it will be handicapped in
making any cuts. What it cannot do, and what the administration fails
to do, is manage this soaring military spending in a fashion that
guarantees the nation its money's worth. That's neither good defense
nor good budgeting.
    
nyt-02-05-85 0733est
n165  0443  05 Feb 85
BC-BUDGET-(Balt.)
     By Robert Timberg
    c. 1985 The Baltimore Sun
    
     Washington - President Reagan, cloaking his budget in a mantle of
urgency, warned congressional leaders yesterday that ''we can't wait
a moment longer'' to bring federal spending under control.
     ''If we lose the budget battle, if we allow all the lessons of all
the decades of unchecked government spending to go unheeded, then I
believe we'll consign ourselves and our children to the tyranny of a
government that respects no boundaries and knows no limits,'' he said.
     The president's urgent tone, brought on by estimated annual
deficits well over $200 billion through the end of the decade, was
echoed by top administration aides, notably Treasury Secretary James
A. Baker III, Budget Director David A. Stockman and William A.
Niskanen Jr, of the Council of Economic Advisers.
     Mr. Baker, in his first full day in office, delivered a prepared
statement at a budget briefing for the press in which he said,
''Immediate steps must be taken to narrow the deficit.'' He left
without taking questions.
     Mr. Stockman, at the same briefing, peppered his remarks with such
apocalyptic phrases as ''the day of reckoning has arrived.'' Mr.
Niskanen told reporters the deficit was on ''an explosive path.''
     Mr. Stockman also revealed that the massive domestic spending cuts
contained in the new budget effectively defined the second term
domestic agenda, saying they represented the bulk of what the
administration considers ''feasible, practical and justifiable to
do.''
     Speaking to senior lawmakers from both parties after formally
delivering the budget to Congress, the president ruled out fighting
the deficit with a tax hike, saying it would be ''an admission of
failure'' that would rob the economy of the incentives needed to fuel
continued growth.
     In addition, he defended his Pentagon spending request, which many
Republicans and Democrats in Congress want to cut, as necessary to
meet the ''unprecedented'' Soviet military build-up and critical to
arms control negotiations, which resume next month in Geneva.
     ''Ultimately,'' he said, ''our security and our hopes for success
at the arms reduction talks hinge on the dtermination that we show
here, to continue our program to rebuild and refortify our defenses.''
     Congress reacted warily to the the new budget as many lawmakers
said further defense cuts were needed. However, there was broad
agreeement that domestic programs must be scaled back though not
necessarily as much or in the same way as Mr. Reagan proposed.
     The president's allies in the business community praised his
proposal for a freeze of overall spending at current levels,
excluding debt service, but questioned military spending levels and
the decision to exclude Social Security from the long list of
domestic programs facing cuts.
     ''This particular 'freeze' approach has two glaring exceptions--it
includes neither defense nor Social Security,'' said Alexander B.
Trowbridge, president of the National Association of Manufacturers.
     The chorus of concern about the deficit threat rising from the
administration is a sharp contrast to the soothing words of Mr.
Reagan's re-election campaign when his Democratic opponent, Walter F.
Mondale, tried and failed to make the it a major issue.
     In discussing domestic cuts, the president and his aides alternated
between ideological explanations and what they suggested were nothing
less then the grim facts of life under the threat of burgeoning
deficits.
     Mr. Reagan, for example, coupled his warning about not waiting ''a
moment longer'' to attack spending with the statement that ''the
taxpayers should not be subsidizing'' the domestic programs he wants
to eliminate.
     Budget director Stockman, meanwhile, said, ''We have no choice but
to scale back the government in a fundamental and far-reaching way,''
and spoke of ''an acute threat'' to the economy posed by federal
deficits.
     He also insisted that a one-year freeze on programs the
administration wants to eliminate, as proposed by some members of
Congress, would have only a short-term effect on the deficit.
     ''The fact is, a one-year freeze, and then going back to business
as usual, simply will not solve the problem,'' he said.
     He also brushed aside as irresponsible reports that the president's
budget had no chance on Capitol Hill. ''I have no doubt the political
resistance will be strong...but the fact is, there isn't any
alternative.''
    
     End Budget
    
    
nyt-02-05-85 0743est
n166  0446  05 Feb 85
BC-REAGAN-(Balt.)
     By Robert Timberg
    c. 1985 The Baltimore Sun
    
     Washington - President Reagan, in a symbolic effort to ease the
sting of the 5 percent pay cut he is asking federal workers to take,
will voluntarily give back the same percentage of his $200,000-a-year
salary, the White House announced yesterday.
     Larry M. Speakes, the White House spokesman, said the president
would turn back 5 percent of his pay if Congress goes along with his
request for a federal pay cut, estimated to save $1.6 billion.
     He said the presidential pay cut was not included in the budget Mr.
Reagan sent to Capitol Hill yesterday because the Constitution does
not permit alterations to a president's salary while he is in office.
     Back in December, when word of the federal pay cut first surfaced
publicly, Mr. Speakes said the president ''would go along'' with a 10
percent salary cut then being discussed by Mr. Reagan and Republican
congressional leaders.
     Little has been heard about a congressional pay cut since December.
In addition to his salary, the president receives $50,000 in expenses
and lives in the White House rent-free. Members of Congress are paid
$75,100-a-year. The federal pay cut would apply to White House aides
and other presidential appointees, Mr. Speakes said.
    
     End Reagan
    
    
nyt-02-05-85 0746est
n167  0458  05 Feb 85
BC-CARTER-(Balt.)
     By Bill Carter
    c. 1985 The Baltimore Sun
    
     The television industry loves February. The weather is bleak,
people huddle indoors and seek comfort and company from their TV sets.
     Thus the fact that February is one of the three most important
television rating periods of the year is only appropriate. It is a
sweep month, one of those times of year when the ratings systems take
their widest measurements, and hence the times when the people who
really pay for television, namely the advertisers, are paying closest
heed.
     That special advertiser-attention has led to some memorable
excesses in the past, with monstrously expensive movies and
miniseries pitted against each other by networks eager to gain even
the slightest advantage.
     To be accurate, the networks don't care directly about February any
more than they do about, say, January. Networks get rated all the
time. It is because the sweep months are so vital to the financial
interests of the networks' TV partners, the stations around the
country, that they care enough to send out their very best during the
sweeps.
     Maybe ''best'' is not the most precise word. Maybe ''hottest'' is
more accurate. Certainly the show that looms as the blockbuster
(emphasis on the second syllable) of this February, ''Hollywood
Wives,'' is probably not what its network would identify as its best
work. (Yes, even ABC can recognize the good stuff it does from the
good-for-business stuff.)
     But no station is going to get snotty and say, ''Don't give me that
trash that gets huge audiences. Give me more of those three-hour
documentaries about education in America.''
     What February television is really about is business. Business this
time means three miniseries, one per network, a bunch of those new
ratings-grabbers, hot-line movies, a whole slew of special TV movies
that represent comebacks or remakes of familiar entertainments from
the past, and even some first network exposures of theatrical movies
- once the most sure-fire offerings of a sweep month, but since the
coming of home video and pay-cable, a much diminished attraction.
     The competition figures to be intense, but perhaps not quite so
intense as it was in Februarys past. Once reason for that is that the
network have shown a tendency to back off from monster confrontations
for fear one expensive show will surely waste its investment. The
best example of that this month was NBC's decision to postpone its
biggest miniseries of the year, ''A.D.,'' which depends far more on
prestige value than titillation value, when ABC moved ''Hollywood
Wives'' in as the major competition. ''A.D.'' will now play in April.
     Surely the most interesting competition this month will still
involve ABC and NBC on February 18, the second night of ''Hollywood
Wives.'' NBC has tried the essence of counter-programming against a
trash epic: ''The 30th Anniversary of Disneyland'' special.
     The confrontation with the most explosive potential will take place
on February 10 when CBS starts its miniseries of the month, and the
show with the highest controversy quotient, ''The Atlanta Child
Murders.'' The same night ABC will unleash its hottest hot-line
movie, ''Surviving,'' a three-hour cathartic epic on teenage suicide.
Both shows are loaded, cast wise, with Jason Robards, Martin Sheen
and James Earl Jones at the top of ''Child Murders'' and Ellen
Burstyn and Marsha Mason headlining ''Surviving.''
     NBC will again try something completely different, countering the
utter seriousness of those two with a frivolous teen tale called
''Poison Ivy,'' starring Michael J. Fox.
     Besides ''Hollywood Wives,'' which runs February 17, 18 and 19, and
''Atlanta Child Murders'' on February 10 and 12, the third miniseries
of the month is NBC's ''Evergreen,'' a family saga type, which will
run February 24, 25 and 26.
     The other issue movies, besides ''Surviving,'' will be ''Consenting
Adult'' (homosexuality) on ABC Monday night, ''Two Fathers'' (missing
children) on NBC February 11, and ''A Bunny's Tale'' (the story of
Gloria Steinem's infiltration of a Playboy Club, which qualifies as a
feminist issue) on ABC February 25.
     The remakes and comebacks department is headed by ''The Dirty
Dozen: The Next Mission,'' on NBC Monday night; ABC has a remake of
''The Bad Seed'' on next Thursday, and CBS has the one and only Kojak
back in ''The Belarus File,'' a new TV movie with Telly Salavas
February 16.
     The major theatrical movies getting on this month will be ''The
Verdict,'' on NBC Sunday night at 9; ''The World According to Garp,''
on CBS February 13; ''Rocky,'' (no extra numbers so it must be the
original), on CBS February 19,and ''Still of the Night'' on CBS
February 27.
     In the general category of wild specials and movies are:
     ''The Corsican Brothers,'' a Hallmark Hall of Fame on CBS Tuesday;
''Obsessed With a Married Woman,'' on ABC (where else, with a title
like that?) February 11; ''Challenge of a Lifetime,'' (Penny Marshall
as a triathlete - it's got to be a comedy) on ABC February 14;
''Hitler's SS,'' on NBC February 17; ''Murder with Mirrors,'' (Agatha
Christie lives!) on CBS February 20, and the big special of the
month, the Grammy Awards, on CBS February 26.
    
     End Carter
    
    
nyt-02-05-85 0758est
n168  0503  05 Feb 85
BC-ETC.-(Balt.)
     By Elise T. Chisolm
    c. 1985 The Baltimore Evening Sun
    
     Did you hear about the mortuary that offered to send your ashes
into space for just $3,000?
     Listen, earthlings, this may be a bargain with today's expensive
''dying'' prices.
     They will rocket your ashes so that you can orbit the earth and
look down on all your loved ones.
     Now the way I see it, there are many ways to look at this, that is,
from an earthly standpoint.
     From an economic standpoint, you have to admit graveyards are
getting crowded and burial prices are sky high.
     And there are many people, especially older folk, who like to
travel and have a sort of wanderlust. I have an aged aunt and uncle
who go to Cleveland and Newark at the drop of a hat. They would just
love the idea of perpetual motion. And they wouldn't have to buy any
new luggage.
     From a medical standpoint, it is a clean way to go. Cremation and
then flying though space. No messy embalming!
     From a spiritual standpoint it is just super. For those of you who
believe in a heaven this would be a celestial ascension. Right? An
eternal resting place for the soul.
     From an environmental point there maybe a snag. I want to talk to
NASA and other space people about the question of clogging up space
with a lot of stuff, excuse the slang. I mean, will it crowd the
friendly skies?
     Remember the idea that garbage should be orbited? Well, that never
got too much applause? And would beloved pets be eligible for outer
space burial? And where would we draw the crowd control line?
     Oh, I know what you are thinking, that you didn't like great Aunt
Hattie or your mother-in-law on earth, so you wouldn't like them
gazing down like a spy satellite from outer space.
     I decided to call a mortician in Pine Buff, Kansas. I wanted an
outside opinion.
     ''Why it's crazy,'' he said.
     ''I don't have launch pad facilities here. No siree, I am a fairly
small operation and don't want to get into anything weird, or off
track.
     ''Oh, I do think it would be fool hardy.
     ''I really think space ashes would be extremely bad taste. We need
down-to-earth people. We have enough spacy people here on earth,
already.''
    
     End ETC.
    
    
nyt-02-05-85 0803est
n169  0516  05 Feb 85
BC-LEWIS-3Takes-(Balt.)
     By John Schidlovsky
    c. 1985 The Baltimore Sun
    
     Sauk Centre, Minn. - He was born February 7, 1885, exactly 100
years ago this week, in this farmers' town on the edge of the great
Midwestern prairie. But Harry Sinclair Lewis never really belonged to
Sauk Centre.
     He was a strange boy, gangly and red-headed, never very popular.
The son of a doctor, Harry left town after high school to go to
college in the East, and no one here expected to hear much of him
again.
     They were wrong.
     In 1920, Sinclair Lewis published ''Main Street,'' a devastating
novel about Sauk Centre thinly disguised by the name ''Gopher
Prairie.'' The book was an instant world-wide success, portraying a
smug, self-righteous, Midwestern small town of gossips, petty
businessmen and sanctimonious preachers.
     Sauk Centre, wounded and proud at once, wasn't sure how to react to
its new fame. After ''Main Street,'' Lewis went on to be the first
American to win the Nobel Prize in literature. Sauk Centre went on to
be, well, Sauk Centre.
     Today, Sauk Centre has changed little from Lewis's day. Its
population is 3,709, not much greater than the 2,807 of a century
ago. It is still a small town on the edge of the great American
prairie, and its problems and joys are typical of those of many
Middle American communities.
     Life in Sauk Centre still revolves around a street called Main
street (which now intersects with Sinclair Lewis avenue, the old
Third street). The town has 10 churches, one movie house (the Main
Street Theater), one radio station and a small hospital.
     It also has one elementary school, one high school, one
long-distance bus line, one railroad line and 13 places to get a
drink. There is a new Hardee's near the Interstate 94 interchange,
not far from a small museum about Sinclair Lewis.
     A visitor on the trail of Sinclair Lewis is treated by the people
of Sauk Centre with friendliness, the kind of amiability the Midwest
prides itself on. Cups of coffee are always offered, and always
refilled. People here like to talk, and they invite a visitor to stay
for this week's Sinclair Lewis Centennial events -a cake-decorating
contest, a tour of the writer's boyhood home and other events.
     Sauk Centre is a small town -for good and for bad. There are warmth
and friendliness, but there are also insularity and boredom. Above
all, everyone knows everyone else and everyone else's business
-again, for good and for bad.
     Over endless cups of coffee, with side trimmings of breakfast,
lunch and dinner, the people of Sauk Centre reveal a lot about
small-town Middle America. The farms are dying, the kids are moving
to the big cities. They need new industries here, but none are
coming. They need better teachers, a college, but how are you going
to attract people here?
     What follows are some voices along Main Street today, a century
after it produced perhaps its greatest chronicler. Some of the voices
are ones Sinclair Lewis may have recognized.
     ''I think if he came back to Sauk Centre today, he'd be surprised
at how little it's changed,'' says Dave Jacobson, the head of the
Sinclair Lewis Foundation in Sauk Centre and a former English teacher
who taught ''Main Street'' in the school here for years.
     Lewis, by the way, did come back several times before his death in
Italy in 1951. And even then, too, he returned to Sauk Centre. On a
cold January day, his ashes were brought to Sauk Center's cemetery
for interment.
     ''It was about 35 below zero and windy that day,'' recalls Richard
Schwartz, a co-owner of Sauk Centre's main hotel. ''A gust of wind
came up and scattered some of his ashes to the winds. Somebody said
that, even in death, Sinclair Lewis couldn't be kept in Sauk Centre.''
     ''It's a glorious country; a land to be big in,'' she crooned.
     With those hopeful words, Carol Kennicott, the young,
soon-to-be-disillusioned heroine of ''Main Street,'' looked out her
train window at the Central Minnesota landscape near Gopher Prairie,
the home of her doctor-husband, Will Kennicott.
     A land to be big in. Carol was right; this is
raise-your-arms-and-reach-for-the-sky country, where the expansive
plains begin their 1,000-mile flat roll towards the Rockies. This is
where America begins to have elbow room.
     ''Our farms average about 240 acres,'' says Pat DuBois, retired
bank president, ex-state senator and, by almost everyone's reckoning,
the most powerful man in Sauk Centre.
     Pat DuBois was 5 when Sinclair Lewis took him fishing at Sauk Lake.
They used cane poles, hooks and worms, and Mr. DuBois thinks they
caught a couple of bass. It was a good life then, and it's not such a
bad life today, especially when you're the bank president and just
back from a trip to the Bahamas.
     ''We've become more sophisticated, broader in our vision,'' says
Mr. DuBois, whose late father (also the bank president) was born in
the same year as Sinclair Lewis.
     Talk to most people in Sauk Centre, and pretty soon they'll be
talking about their family, friends, neighbors and themselves. But
Pat DuBois, who is now chairman of the board of the local bank, keeps
the conversation to what he thinks is most important -the Midwest
farming crisis.
     ''It's a catastrophe in rural America today,'' he says. ''The debts
are so large on the farms, the farmer can't get a good price for his
products. ''There's no profit in farming any more.''
     Farmers, mostly dairy farmers, make up about 60 percent of Sauk
Centre's sources of economic livelihood, says Mr. DuBois, who is the
chairman of a state commission on farm problems appointed by Governor
Rudy Perpich.
    
     MORE
    
    
    
nyt-02-05-85 0815est
n170  0524  05 Feb 85
BC-BARBIE-2takes-(Balt.)
     By Robert Ruby
    c. 1985 The Baltimore Sun
    
     Paris - Klaus Barbie today reaches an anniversary that has
significance for his having to spend it like every other day, in
solitary confinement in a jail in Lyon.
     Mr. Barbie is known as the ''Butcher of Lyon'' for his work as a
Gestapo chief there from 1942 to 1944. Two years ago today, France
returned him to Lyon after extraditing him from Bolivia, and he is
waiting for what is expected to be a controversial trial, fought by
controversial lawyers.
     In recent weeks prosecutors have narrowed the charges against him
and predict that the trial will begin no later than November. He will
be the first World War II figure tried in France for ''crimes against
humanity,'' rather than crimes of war.
     Mr. Barbie was tried twice while he was in hiding, in 1952 and in
1954, for war crimes against members of the French Resistance. He was
found guilty for the death of about 4,000 people and deporting at
least 4,000 more and sentenced to death.
     He wasn't present for the trials because he had fled Europe. The
U.S. Army, which employed Mr. Barbie after the war as a spy in West
Germany, helped him reach Bolivia in 1951, and he stayed beyond the
reach of French law.
     Frances 20-year statute of limitations meant that the original
charges and the death sentences expired in 1964. As a result, he can
only be brought to trial on new charges. They have to be based, in
turn, on new evidence, testimony and documents collected more than 40
years after the Gestapo left lyons.
     Serge Klarsfeld is the lawyer, who with his wife, Beate, makes the
trial possible. The Klarsfelds helped trace Mr. Barbie to Bolivia and
interest the French government in negotiating with Bolivia for his
eventual explusion and arrest.
     They also exhaustively gathered much of the evidence on which the
prosecutor has based the new charges.
     The French parliament hurriedly added ''crimes against humanity''
to the law books in 1964, virtually on the night when the statute of
limitations expired for crimes of war. Crimes against humanity are
the only offenses for which there is no time limit for prosecution.
     Mr. Barbie can not be tried again for his actions against members
of the resistance and his prisoners. The new trial instead will focus
mainly on Mr. Barbie's responsiblity for acts against French Jews.
     ''The war against the Resistance was harsh, sometimes pitiless
against certain individuals, people who had done something to the
Germans,'' Mr. Klarsfeld said in an interview. ''against Jews who
didn't do anything against the Germans, the war was just as total.
     ''At the trial,'' he said, ''you will see that it was more
dangerous to be a Jewish child than a member of the resistance.''
     Mr. Barbie will plead not guilty.
     ''Barbie admits fighting the resistance,'' says Jacques Verges, his
lawyer. But as for actions against Jews, Mr. Verges says, ''he didn't
do anything with that. Barbie's position is that this wasn't his
work.''
     Mr. Verges is nearly as well known in the Paris legal community as
the Klarsfelds but their reputations could hardly be more different.
     Serge and Beate Klarsfeld are the single minded Nazi hunters and
scholars of the Holocaust. They have spent more than a decade
tracking Mr. Barbie and gathering evidence against him.
     When they are criticized, it is often for their determination to
reach their goals whatever the means. In 1972, Mr. Klarsfled flew to
Chile to encourage a team of guerrillas to kidnap Mr. Barbie, a plan
that failed: since then, members of the French establishment have
frowned on his willingness to go beyond the law.
    
     MORE
    
    
nyt-02-05-85 0823est
n171  0548  05 Feb 85
BC-BARBIE-1stadd-(Balt.)
    
     pickup xxx the law.
    
     Mr. Verges is criticized for keeping his goals -- and his life -- a
mystery.
     He came to prominence in the late 1950s when he represented
Algerians accused of terrorism during Algeria's war for independence
from France. To do so was, at that time of fierce debate over the
war, to take considerable personal risk.
     During the 1960s, Mr. Verges was an advisor to the Algerian and
Morroccan foreign ministries and edited a magazine that supported the
policies of China's Chairman Mao Tse-tung.
     In 1970 he disappeared.
     ''I traveled,'' Mr. Verges says. He has never explained where he
lived or the nature of his work between 1970 and 1978. The one
certain thing is that he was not working as a lawyer in France.
     ''In a democracy theres a right of silence,'' he says.
     Where he had been, and what he had done became a matter of much
interest because of his first clients when he reappeared in Paris.
They were the most sought-after suspects in France, members of the
Red Army Faction and Direct Action, the terrorist groups that led the
wave of left-wing violence at the end of the 1970s. In recent weeks
they have claimed responsibility for a new series bombings and
assasinations in West Germany and France.
     Both lawyers have credentials as anti-Nazis. Mr. Klarsfeld's father
died at Auschwitz; Mr. Verges joined the Resistance when he was 17.
     ''I was 19 when Barbie left Lyon,'' Mr. Verges says. ''Germany
represented the absolute, most overt form of racism. Barbie at that
time was the enemy.''
     Mr. Verges says he is defending Mr. Barbie ''for the professional
challenge.'' He says he is providing most of his services without
charge, but that Mr. Barbie's daughter is paying ''lightly.''
     His client faces charges in connection with three events:
     -- The arrest, allegedly by Mr. Barbie himself, of 86 people at the
Office of the Federation of Jewish Organizations in Lyon, in
Februrary, 1943. The 86 were deported to Auschwitz.
     -- The deportation of about 650 persons from Lyon to the Auschwitz
and Ravensbruck concentration camps on the last Nazi convoy from the
city, in August, 1944. About half of the people were Jews.
     -- The arrest and deportation of 44 Jewish children, ages three to
17, from their school in the town of Izieu. None survived.
     Over a period of years, the Klarsfelds placed ads in newspapers
around the world and searched for birth certificates in major cities
in Europe until they found surviving relatives of each of the Izieu
children, as well as witnesses to the arrests.
     The Izieu arrests are, as a result, better documented than 40 years
ago, and Mr. Klarsfeld will be the lawyer representing the relatives
at Mr. Barbies trial.
     Much of the case depends on the authenticity of a telex the
Klarsfelds discovered, a message sent over Mr. Barbies name to
Gestapo headquarters in Paris announcing the the arrest of the
children.
     If the telex is genuine, then there is proof of Mr. Barbie's
involvement in persecuting Jews.
    
     End Barbie
    
    
nyt-02-05-85 0830est
n001  0557  05 Feb 85
BC-NYT-BUDGET-05 Opening Sked
    The New York Times News Service schedule for Tuesday, Feb. 5, 1985.
For use by subscribers only. Unauthorized use is strictly prohibited.
    
    Patrick Vance is in the slot. If you have any questions about the
news report, please call him at (212) 556-1927.
    
    COLUMNS (For Wednesday release)
    James Reston, Russell Baker, both to come. Details later.
    
    NATIONAL-GENERAL
    Albuquerque, N.M. - PLAN - Past and future collide here in the
development downtown of a ''festival marketplace'' that would house
shops, restaurants and parks. By Iver Peterson.
    
    Bangor, Wash. - FLEET - Despite all the protests and lawsuits, the
Navy is bringing into full operation its base on Puget Sound for
submarines armed with Trident missiles. By Wallace Turner.
    
    WASHINGTON
    NUMBERS (WashPage) - For all its apparent precision, the federal
budget that was sent to Congress Monday is of relatively little use
to those who want to know how spending, revenue and the deficit will
actually rurn out. By Robert Hershey.
    
    INTERNATIONAL
    Shanghai - CHINA - A tour of the Shanghai Municipal Prison is a
sobering affair. More than 60 percent of the 3,700 inmates are under
35, men and women who belong to what Chinese call the ''lost
generation'' of youth whose education and family life were uprooted
when the Cultural Revolution closed schools, set children against
parents and licensed mayhem against anybody standing for the
established order. By John F. Burns.
    
    ENTERTAINMENT
    Hollywood - CLUE - Clue, a successful board game for 37 years, is
about to become an $8 million motion picture. By Aljean Harmetz.
    
    FINANCIAL
    New York - MARKET - The day's stock market activity. 700.
    
    New York - DEBT-II - Last year, the financial community worried
about what would happen if some Latin American country refused to pay
back its debt to foreign banks. But, in effect, that has happened -
with little apparent fuss. By Nicholas Kristof.
    
    Los Angeles - FRAUD - Kent B. Rogers responds to charged by Texas
insurance officials that he was part of a conspiracy to sell
mortgage-backed securities based on fraudulent loan transactions. By
Thomas Hayes.
     nn
    
nyt-02-05-85 0852est
n002  0602  05 Feb 85
BC-NYT-BUDGET-05 Opening Sked Addatend
    ADD N.Y. TIMES OPENING SCHEDULE
    
    INTERNATIONAL
    CROSSROADS, South Africa - SAFRICA - They came the other day, again,
the men with stern faces and tear-gas launchers and crowbars to
destroy some shanties on the fringes of this sprawling squatters'
camp outside Cape Town and leave some black people to complain that
the bush might again be home to them and their children. By Alan
Cowell.
    
    Mexico City - MEXICO - The population of the Mexico City
metropolitan area is currently believed to be 18 million, making it
one of the world's most populous cities. It is estimated to be
growing by about 100,000 people a month as peasants flee the poverty
of the Mexican countryside for what they believe will be greater
opportunity amid the urban bustle. As in many other third-world
countries, however, what they often find instead are only new
varieties of poverty. By Richard Meislin.
    
    WASHINGTON
    ASPIN (WashPage) - Rep. Les Aspin, long one of the leading Capitol
Hill critics of military policy, now finds himself in position to do
more than talk. He's the new head of the House Armed Services
Committee. By Steven Roberts.
    
    BRIEFING (WashPage) - Notes from the nation's capital. 700.
    
    SPORTS
    New York - TV-SPORTS - What's hot and what's not for winter viewing.
By Michael Katz.
    
    Undated - SCOUTING - Notes from the world of sports. 700.
    
    FINANCIAL
    New York - CREDIT - The day's activity in the credit markets. 600
    
    New York - MARKETPLACE - Stock market commentary. 700.
    
    New York - SAUDI - The natural gas the Saudi Arabians once
wastefully flared off as a byproduct of oil production is now being
harnessed and turned into petrochemicals. The Saudi dream of
industrialization is coming true. But some analysts are suggesting
that the dream may turn into a nightmare for petrochemical producers
elsewhere. By Daniel Cuff.
    
    Undated - BOLIVIA - Three bank accounts of the Bolivian Embassy in
Washington have been frozen by a U.S. District Court in a tangled
lawsuit by an American company that contends Bolivia owes it money.
The case demonstrates the difficulties that might face American banks
if they sought to attach assets of debtor countries
    
nyt-02-05-85 0901est
n003  0609  05 Feb 85
BC-NYT-BUDGET-05 Opening Sked
    The New York Times News Service schedule for Tuesday, Feb. 5, 1985.
For use by subscribers only. Unauthorized use is strictly prohibited.
    
    Patrick Vance is in the slot. If you have any questions about the
news report, please call him at (212) 556-1927.
    
    COLUMNS (For Wednesday release)
    James Reston, Russell Baker, both to come. Details later.
    
    INTERNATIONAL
    Shanghai - CHINA - A tour of the Shanghai Municipal Prison is a
sobering affair. More than 60 percent of the 3,700 inmates are under
35, men and women who belong to what Chinese call the ''lost
generation'' of youth whose education and family life were uprooted
when the Cultural Revolution closed schools, set children against
parents and licensed mayhem against anybody standing for the
established order. By John F. Burns.
    
    CROSSROADS, South Africa - SAFRICA - They came the other day, again,
the men with stern faces and tear-gas launchers and crowbars to
destroy some shanties on the fringes of this sprawling squatters'
camp outside Cape Town and leave some black people to complain that
the bush might again be home to them and their children. By Alan
Cowell.
    
    Mexico City - MEXICO - The population of the Mexico City
metropolitan area is currently believed to be 18 million, making it
one of the world's most populous cities. It is estimated to be
growing by about 100,000 people a month as peasants flee the poverty
of the Mexican countryside for what they believe will be greater
opportunity amid the urban bustle. As in many other third-world
countries, however, what they often find instead are only new
varieties of poverty. By Richard Meislin.
    
    ENTERTAINMENT
    Hollywood - CLUE - Clue, a successful board game for 37 years, is
about to become an $8 million motion picture. By Aljean Harmetz.
    
    FINANCIAL
    New York - MARKET - The day's stock market activity. 700.
    
    New York - DEBT-II - Last year, the financial community worried
about what would happen if some Latin American country refused to pay
back its debt to foreign banks. But, in effect, that has happened -
with little apparent fuss. By Nicholas Kristof.
    
    Los Angeles - FRAUD - Kent B. Rogers responds to charged by Texas
insurance officials that he was part of a conspiracy to sell
mortgage-backed securities based on fraudulent loan transactions. By
Thomas Hayes.
    
    New York - CREDIT - The day's activity in the credit markets. 600
    
    New York - MARKETPLACE - Stock market commentary. 700.
    
    New York - SAUDI - The natural gas the Saudi Arabians once
wastefully flared off as a byproduct of oil production is now being
harnessed and turned into petrochemicals. The Saudi dream of
industrialization is coming true. But some analysts are suggesting
that the dream may turn into a nightmare for petrochemical producers
elsewhere. By Daniel Cuff.
    
    Undated - BOLIVIA - Three bank accounts of the Bolivian Embassy in
Washington have been frozen by a U.S. District Court in a tangled
lawsuit by an American company that contends Bolivia owes it money.
The case demonstrates the difficulties that might face American banks
if they sought to attach assets of debtor countries
    
nyt-02-05-85 0908est
n004  0619  05 Feb 85
PM-POPE
By LYDIA CHAVEZ
c. 1985 N.Y. Times News Service
    LIMA, Peru - Peruvian rebels set off an explosion Monday night that
blacked out parts of Lima about 30 minutes after Pope John Paul II
arrived in the capital from northern Peru.
    In a speech on Sunday the Pope had severely attacked the violence of
the rebel movement, known as Shining Path.
    After the explosion, the rebels left a hill north of the city
emblazoned with a hammer and sickle emblem, a design which is
frequently used by the group, according to the police.
    Soon after the blackout, the pope said a few words to a crowd
gathered in front of the Vatican nunciature, its diplomatic
headquarters here.
    A police sergeant said the blackout began at 9 p.m. Shortly after,
he said, the police began getting reports that there was a hammer and
sickle burning on the hills of La Pampa de Amancaes, which is north
of the city.
    ''It was made of canvas and kerosene,'' Police Sgt. Portocarero
Casareto said. ''We sent a unit to put it out right away.'' Casareto
said there were no other incidents during the blackout.
    At first the police said the entire city had been affected by the
power outage, caused by dynamite explosions at one or more power
stations in the capital. But both Casareto and a police sergeant at
another station said that it had only affected some parts of the city.
    Power was restored quickly in many areas, and by early this morning
virtually all the city's power was back on.
    It was one of the most brazen actions by the guerrilla group in Lima
in several months. A similar incident occurred in the capital in 1982
when the rebels burned a hammer and sickle into a mountainside that
could be seen clearly from the center of town.
    The action by Shining Path appeared to be a response to the strong
words from the pope on Sunday in Ayacucho, the heart of the area
where the guerrilla movement is waging its campaign. The pope asked
the rebels ''in the name of God'' to end their campaign and ''seek
the roads of dialogue and not those of violence.''
    The pope's comments in Ayacucho were among the strongest of his
South American tour.
    Shining Path is a Maoist group that believes the current Communist
regime in China is corrupt and looks to Albania as a model.
    The group, viewed as Latin America's most peculiar revolutionary
movement by Peruvians across the political spectrum, has waged a
violent campaign in which 4,000 people have been killed. The movement
has blown up power stations in the past and has also slain peasants
and local officials, particularly in the Ayacucho area.
    -
    The pope's comments in Ayacucho were seen as significant not only
because of John Paul's unusually direct intervention in a political
situation, but also because the pontiff did not mention reports of
human rights violations by the Peruvian government in its fight
against Shining Path.
    Amnesty International recently charged that 1,005 civilians had
disappeared in Peru over the last two years.
    Peru's president, Fernando Belaunde Terry, has said that the missing
civilians were ''guerrilla suspects,'' and on Saturday he angrily
denounced Amnesty International's charges.
    The archbishop of Ayacucho, Federico Richter Fernandez-Prada, last
week criticized Amnesty International's report as presenting a
''distorted image of the situation.'' But some Roman Catholic human
rights organizations here helped Amnesty International to assemble
its report.
    The Peruvian government has been stung by the criticisms, since Peru
was one of the first in a wave of South American countries to turn
from military to democratic rule by civilians.
    Peruvian democracy is seen now as especially vulnerable, not only
because of the guerrilla movement, but also because of a failing
economy and a heavy foreign debt burden.
    Besides criticizing the government, the Amnesty International report
accused Shining Path of engaging in ''execution-style killings.''
    In his speech in Ayacucho, the pope was unambiguous in his comments
to the guerrillas.
    ''I beg you, with pain in my heart, and at the same time with
firmness and hope, that you reflect on the roads you have taken,''
the pope said.
    ''In the name of God, change roads!'' the pope shouted to cheers
from a crowd of 15,000. ''You still have time. The many tears of
innocent victims await your responses.''
    John Paul's trip to northern Peru came on the fourth day of a
five-day stay in the country. Peru is the third stop on a four-nation
papal tour that will end Wednesday in the Caribbean nation of
Trinidad and Tobago.
    
nyt-02-05-85 0919est
n005  0620  05 Feb 85
BC-NYT-BUDGET Advisory
    
    Editors: Please disregard the short version of the opening sked that
was moved inadvertently after the regular opening sked.
    
    N.Y. Times News Service
    
nyt-02-05-85 0919est
n006  0623  05 Feb 85
PM-MENGELE
c.1985 N.Y. Times News Service
    JERUSALEM - Victims of Josef Mengele, the Nazi doctor who conducted
experiments on humans at the Auschwitz-Birkenau death camp, began
telling their stories Monday in a public hearing at Yad Vashem, the
Holocaust memorial.
    A seven-member international panel is hearing the three-day
proceedings marking the 40th anniversary of the liberation of the
camp. The event's organizers have said they will make the material
gathered here available to any interested government. They hope the
hearing will encourage the capture and trial of the Nazi.
    One member of the panel, Zvi Terlo, a lawyer and the former head of
Israel's Ministry of Justice, spoke as if addressing the Nazi, who is
believed to be alive and in hiding, saying: ''Soon you will stand on
trial in some country. Humanity cannot allow scum like you to dirty
the soil of any country, except with a death sentence. Your day will
come. It has to come.''
    Some 30 survivers, many of them twins, are scheduled to speak.
    At the session Monday, survivors told the panel, which includes
Telford Taylor, chief American prosecutor at the Nuremberg trials,
and Simon Wiesenthal, the Nazi-hunter, about their experiences as
victims of Mengele's pseudomedical experiments, which included
amputation of sexual organs, blood transfusions, sterilization by
radiation and other practices.
    
nyt-02-05-85 0923est
n007  0628  05 Feb 85
BC-BOLIVIA
(BizDay)
c.1985 N.Y.Times News Service
    NEW YORK - Three bank accounts of the Bolivian Embassy in Washington
have been frozen by a United States district court in a tangled
lawsuit by an American company that contends Bolivia owes it money.
The case demonstrates the difficulties that might face American banks
if they sought to attach assets of debtor countries.
    Four years ago, a Washington consulting company called Practical
Concepts Inc. worked on a Bolivian project financed by the United
States Agency for International Development. There was a dispute, the
company was not paid as much as it said it should have been and it
sued in December 1982. Bolivia responded with a telegram, rather than
a lawyer, and Practical Concepts won $1.69 million in a default
judgment.
    Bolivia still did not respond, so the court issued orders enabling
Practical Concepts to freeze three Bolivian accounts in United States
banks. Neil I. Levy, a Washington attorney representing Practical
Concepts, which is now in bankruptcy proceedings, said that two of
the bank accounts contained a total of $207,000. The third held only
an overdraft.
    Since the accounts were frozen last October, Bolivia has retained
the Washington law firm of Vance, Joyce, Carbough, Huang & Fields and
has moved to set aside the original default judgment and quash the
attachment on its bank accounts. Thomas Huang, one of Bolivia's
lawyers on the case, said he could not comment because the suit was
pending.
    Under general international law and the Foreign Sovereign Immunities
Act of 1976, a country's sovereign property is not subject to
attachment. However, there is an exception where the property is used
for ''commercial activity.'' This is frequently interpreted as an
airline or state trading company, but Levy said he would argue that
it could include embassy bank accounts if normal expenses - such as
payments for stationery - were made from it.
    
nyt-02-05-85 0927est
n008  0640  05 Feb 85
BC-PLAN
(Art available on request)
By IVER PETERSON
c.1985 N.Y. Times News Service
    ALBUQUERQUE, N.M. - Jean Paul Sartre came away disappointed after
visiting this and other American cities with similarly exotic names
in World War II.
    ''It is disappointing,'' the French writer and philosopher wrote in
1945, ''to realize that, hidden beyond these magnificent and
promising names, is the same checkerboard city, the same red and
green traffic lights, and the same provincial look.''
    Albuquerque probably gave an existential shrug at such criticism in
1945, but today there is a strong effort being made here to find a
place among other Sun Belt cities whose glories of growth and
prosperity are such a part of the folklore of Western success.
    The core of this effort, being advanced by the city council and the
mayor's office, is the development downtown of a ''festival
marketplace'' that would house specialty shops, restaurants, parks
and entertainment.
    The idea has been advanced by an offshoot of the company that
developed the South Street Seaport in Manhattan, Baltimore's
Harborfront and Boston's Faneuil Hall marketplace, and the popularity
of those places has exerted a big-city pull on leaders in this town.
    Tom Hoover, president of the Albuquerque City Council and the
project's most ardent supporter, envisions the marketplace as the
centerpiece of a $100 million downtown expansion that would include a
hotel, parking lot, convention center and museum, and would help put
the city on the map for travelers.
    But Berent Groth, an architect and president of the Albuquerque
Conservation Association, contemptuously dismisses the proposed
marketplace as a place to go to ''watch someone make fudge.''
    City Councilor Steve Gallegos, in whose district the new development
would be situated, and who supports the plan, says he thinks there
will be political bloodshed but that it will pass.
    ''We'll take a political beating for it,'' he said, ''but it will go
through.''
    Both sides agree that the debate is not just over the addition of a
dash of color near downtown Albuquerque. The debate reflects, rather,
differences between some, like Groff, who want to preserve the city's
historic character, and others in the business and political
community who want to see Albuquerque adopt some of the style and
flash of other Sun Belt cities.
    ''Oh, I think it's definitely a philosophical argument,'' Hoover
said. ''I think there are a lot of folks here who still think we're
back where we were 10 or 15 years ago, who don't realize that we have
become a city and that we're going to be a lot larger. I know people
who feel nostalgic about when Albuquerque's population was still
100,000 and can't get used to it being 350,000 and growing.''
    He termed such views ''a little shortsighted and a little
provincial,'' and said that to match its rapid growth, the look of
the city would have to change.
    The city's convention center, Hoover said, is too small to handle
the kinds of meetings that Albuquerque, with its growing electronic
and technical economy, could draw. Others have said that while the
city's population grew by 30 percent between 1970 and 1980, it
remains little known to the rest of the country.
    And a recent national survey of businessmen by the Chamber of
Commerce revealed that the name Albuquerque conjured up no particular
image among the poll's respondents.
    The festival marketplace was proposed by the Enterprise Development
Corp. of Landover, Md., which was founded by Jim Rouse, whose Rouse
Corp., which he has since left, developed the bright urban
attractions in Manhattan, Baltimore and Boston.
    Enterprise's prospectus for the Albuquerque development calls for a
place that provides a ''nostalgic recall of 'fond' memories of the
old downtown'' to lure visitors into the city center after office
workers depart at 5. It is the emphasis on nostalgia that disturbs
critics like Groth.
    ''People here are asking for an urban statement and Enterprise wants
to give us Frontierland,'' he said. ''We're asking for a development
that works with the 1930s architectural vocabulary of downtown, and
Enterprise wants to give us an amusement park. Why someone would want
to go downtown and watch someone make fudge is beyond me.''
    Groth and other opponents of the marketplace idea instead favor a
plan, based on a survey by the American Institute of Architecture, to
develop Central Avenue, the old corridor that runs east-west through
the heart of downtown, into a strollers' world that would highlight
artistic and cultural attractions.
    The proposal, as yet only vaguely formulated, would link such city
treasures as the University of New Mexico campus to the east; the
1927 vintage KiMo theater downtown, with its dazzling Indian designs
now restored and protected; Old Town and its colonnaded plaza where
Indians still offer their jewelry for sale; the Botanical Gardens
and, farther west, the long green ribbon of parks along the Rio
Grande.
    Groth thinks the Central Avenue proposal should be acted on. ''The
festival marketplace idea lacks dignity,'' he said. ''People want
something a lot more urban and real.''
    Hoover disagrees. ''I think we can come up with a design that people
here can identify with,'' he said, ''and not just look like it was
imported from New Jersey or somewhere.''
    
nyt-02-05-85 0939est
n009  0640  05 Feb 85
BC-DEBT-II Slugchange
    
    Editors: Story slugged DEBT-II on the opening sked is upcoming as
LATIN-II to conform to the slug of the first article in the series.
    
    N.Y. Times News Service
    
nyt-02-05-85 0940est
n010  0646  05 Feb 85
BC-TREES
(Science Times)
By BAYARD WEBSTER
c.1985 N.Y. Times News Service
    NEW YORK - In most of the world's urban areas the major cause of
accidental deaths and injuries is the automobile. But in remote rural
communities where there are no cars or roads, another hazard causes
proportionately as many accidental deaths and injuries, according to
a study by medical researchers in Papua New Guinea.
    The hazard is trees.
    In a recent issue of the British Medical Journal, the researchers
report that falls from trees and other tree-related incidents are the
most common cause of injuries in several sections of Melanesia. Their
four-year study of admissions to the Provincial Hospital in Milne Bay
Province, Papua New Guinea, which serves 130,000 Melanesians, found
that tree-associated accidents accounted for 41 percent of admissions
for wounds and injuries.
    The types of accidents included falling off a tree while climbing,
being struck by a falling tree limb or by a falling coconut, tripping
over fallen tree limbs, and being struck by a crashing tree while
trying to cut it down.
    The victims ranged in age from 3 to 60 years, and the tree
implicated most often was the coconut palm.
    The researchers noted that most village tree climbers did not use
safety equipment and that some of the palm trees they climbed were 90
feet tall. The report also stated that a climber's fall from a mature
coconut palm would be the equivalent of a fall from a 10-story
building, and that falling coconuts could strike a person on the
ground with a force of almost 2,000 pounds.
    Because of incomplete statistics, the report did not include the
number of fatalities that received hospital care. But the researchers
noted that the majority of deaths occurred after falls from trees.
They also found that 28 people had died without reaching the hospital
after falling from trees.
    One village man expressed his view of the problem: ''If a man falls
from a tall coconut tree it's unnecessary to go along to check his
condition because surely he will be dead. If he has fallen from a
short coconut tree we will go to see if he can be helped.''
    The researchers concluded: ''A tropical islander is imagined as
reclining beneath his trees, languidly plucking the ever-present
harvest. The truth is that most villagers work hard planting their
gardens and often risk their lives climbing high to reap the produce
of their tallest trees.''
    
nyt-02-05-85 0945est
n011  0651  05 Feb 85
BC-TREES
(Science Times)
By BAYARD WEBSTER
c.1985 N.Y. Times News Service
    NEW YORK - In most of the world's urban areas the major cause of
accidental deaths and injuries is the automobile. But in remote rural
communities where there are no cars or roads, another hazard causes
proportionately as many accidental deaths and injuries, according to
a study by medical researchers in Papua New Guinea.
    The hazard is trees.
    In a recent issue of the British Medical Journal, the researchers
report that falls from trees and other tree-related incidents are the
most common cause of injuries in several sections of Melanesia. Their
four-year study of admissions to the Provincial Hospital in Milne Bay
Province, Papua New Guinea, which serves 130,000 Melanesians, found
that tree-associated accidents accounted for 41 percent of admissions
for wounds and injuries.
    The types of accidents included falling off a tree while climbing,
being struck by a falling tree limb or by a falling coconut, tripping
over fallen tree limbs, and being struck by a crashing tree while
trying to cut it down.
    The victims ranged in age from 3 to 60 years, and the tree
implicated most often was the coconut palm.
    The researchers noted that most village tree climbers did not use
safety equipment and that some of the palm trees they climbed were 90
feet tall. The report also stated that a climber's fall from a mature
coconut palm would be the equivalent of a fall from a 10-story
building, and that falling coconuts could strike a person on the
ground with a force of almost 2,000 pounds.
    Because of incomplete statistics, the report did not include the
number of fatalities that received hospital care. But the researchers
noted that the majority of deaths occurred after falls from trees.
They also found that 28 people had died without reaching the hospital
after falling from trees.
    One village man expressed his view of the problem: ''If a man falls
from a tall coconut tree it's unnecessary to go along to check his
condition because surely he will be dead. If he has fallen from a
short coconut tree we will go to see if he can be helped.''
    The researchers concluded: ''A tropical islander is imagined as
reclining beneath his trees, languidly plucking the ever-present
harvest. The truth is that most villagers work hard planting their
gardens and often risk their lives climbing high to reap the produce
of their tallest trees.''
    
nyt-02-05-85 0950est
n012  0702  05 Feb 85
BC-FLEET
By WALLACE TURNER
c.1985 N.Y. Times News Service
    BANGOR, Wash. - When the submarine USS Georgia pulled in here
recently for provisioning, maintenance and a fresh crew, the routine
was unhurried.
    It symbolized the fact that, despite all the protests, lawsuits,
fence-climbing into forbidden areas, attempts to stop trains and jail
for demonstrators, the Navy had built, equipped and was bringing to
full operation its base on Puget Sound for submarines armed with
Trident missiles.
    On Jan. 12, while the Georgia was at dock here, an event across the
continent underlined the protesters' failure to influence events. On
that day pickets in Groton, Conn., tried to harass the launching of
the USS Alaska, the sixth submarine in the Trident fleet. But she was
launched on schedule and is now being outfitted.
    With the identical submarines Ohio, Michigan and Florida on patrol
in the Pacific and the Henry M. Jackson now undergoing shakedown
tests in the Atlantic, the Trident fleet here has grown rapidly since
the base began operations in 1981.
    The Delta Pier, on whose south side the sleek, black hull of the
560-foot Georgia nestled for service, juts out from a fir-lined bank
into Hood Canal, a glacier-carved inlet of Puget Sound. The pier,
whose north side and drydock were not being used, is designed to
serve three Trident submarines simultaneously.
    Plans call for 10 Trident vessels to operate from the Bangor base
and for 10 more to operate in the Atlantic from a base now being
built at Kings Bay, Ga. The submarines now cost about $1.2 billion
each.
    The Trident weapon system is the Defense Department's replacement
for the Poseidon system, which supplanted the Polaris, the first of
the submarine-carried missile systems.
    Successive systems have gradually expanded the range of the rockets
to the 4,500 miles of the current Trident 1 missile. Later the
submarines are to be armed with Trident 2 missiles, which are not yet
perfected. These larger missiles may have a greater range, carry a
bigger load of nuclear bombs, or both.
    The Trident submarines leave Bangor for 70-day patrols in positions
from which they can fire their missiles if ordered. They return for
25 days of refitting and to get supplies and a new 160-man crew.
    ''The mission is to be undetected at sea for all that time,'' said
Comdr. J.P. Mitchell, spokesman for the Bangor base. ''We pass
messages to them constantly while they are out, but we never hear
from them after they submerge in the Strait of Juan de Fuca until
they surface there about 70 days later.''
    At a cost exceeding $1 billion, the Navy has created a major base in
the second-growth fir forest inland from the dock where the Georgia
was moored. In addition, business activity spurred by the base has
caused a construction boom in the surrounding countryside, which a
decade ago was taken up with dairy farming.
    The base employs about 8,900 people, of whom 2,215 are Civil Service
employees, 2,200 are contractors' employees and the rest Navy
personnel. Employment will rise to 10,500 when all 3,200 crew members
are present for the full 10-ship fleet.
    Outside contractors do such jobs as fabricating the 24 missiles that
each submarine carries. This is done in an area surrounded by double
fencing, with the 30-foot-wide strip between the fences covered with
raked gravel dotted with sensors. About 340 marines guard the
fabrication facility.
    Controversy over the Bangor base started with the announcement in
February 1973 that it would be built. Residents of the area opposed
the base as a threat to their rural way of living, and soon antiwar
groups mounted protests against it that included attempts to
interfere with the arrival of the USS Ohio, first of the fleet, on
Aug. 12, 1982.
    In 1977 James and Shelley Douglas, who have played leading roles in
the protests, acquired property just outside the fence alongside the
rail line that serves the base.
    Through the years this has been the site of Ground Zero Center for
Nonviolent Action. Several demonstrations have been organized from
it, including one last year that tried to block a Department of
Energy train shipment of warhead parts to the missile fabrication
center.
    Douglas was recently released from his latest jail term for
interfering with operation of the Bangor base. His several sentences
added up to more than 15 months.
    Over the years, sizable support grew here for the Ground Zero
demonstrations. One of the best known sympathizers is Archbishop
Raymond Hunthausen of the Roman Catholic Archidocese of Seattle.
    Hunthausen announced three years ago that he would withhold half his
income taxes because, he said, half the federal budget goes for
military costs that he opposes.
    He recently notified priests in his parish that the Internal Revenue
Service had garnisheed his wage payments from the church. He said the
IRS collected $813.53 in October and November for taxes and penalties
for 1982 and 1983 earnings.
    
nyt-02-05-85 1001est
n013  0713  05 Feb 85
BC-LATIN-II 2takes
(Skedded as DEBT-II)
(ART EN ROUTE TO PICTURE CLIENTS)
Second of two articles on Latin American debt.
By NICHOLAS D. KRISTOF
c. 1985 N.Y. Times News Service
    NEW YORK - Last year, the financial community worried about what
would happen if some Latin American country refused to pay back its
debt to foreign banks. But, in effect, that has happened - with
little apparent fuss.
    Bolivia, which last year had an inflation rate of more than 2,000
percent, declared in May that it would stop paying principal and
interest on its foreign debt. The moratorium was said to be
temporary, but it remains in effect, and bankers say they doubt much,
if anything, will be paid this year.
    Last July, Bolivia's creditor banks, led by the Bank of America,
gave the country a stern ultimatum: resume interest payments within
90 days, or else. But the deadline passed and nothing happened.
    ''It's not a case that we ignored the deadline; there was no one for
us to talk to,'' said a bank negotiator, noting that the nation's
Cabinet had just been replaced at the time. Talks were then set for
Jan. 22, but the Cabinet was replaced yet again - the latest is the
ninth Cabinet in less than two and a half years. Negotiations have
been postponed until later this month.
    The case of Bolivia illustrates the problems that American banks are
having with a number of relatively small Latin American debtors.
Although the most pressing problems have been ironed out with the
largest debtors, such as Argentina and Mexico, there remain some -
particularly Bolivia, Peru and possibly Chile - whose difficulties
seem intractable. Several Central American economies, such as Costa
Rica, Honduras, Guatemala and Nicaragua, also present problems.
    Their economies are among the most troubled in the world, and so are
their creditors. The saving grace, from the point of view of the
banks, is that these countries have borrowed relatively little, so
that a formal default by any of these countries would probably have
little impact on the banking system.
    ''Bolivia and Peru - they're basket cases,'' said Scott F. Grannis,
an economist of the Claremont Economics Institute in Claremont,
Cal.''There's nothing to hold them up.''
    Their economies in shambles, and shaken by political instability,
these countries seem to be playing a game of financial ''chicken''
with their creditors. Neither side wants a formal default, but each
is willing to risk confrontation to get what it wants.
    A common thread among these troubled debtors, according to William
R. Cline, a senior fellow of the Institute for International
Economics in Washington, is a dependency on commodities for exports,
especially metals. Copper, tin, silver and lead are typical exports,
together with agricultural products such as coffee. Such commodities
have suffered falling prices in the last few years.
    Almost everyone agrees that Bolivia is in a class by itself.
    ''The Bolivian economy is in such a chaotic state that it is very
close to collapse,'' said a State Department official who declined to
be named. ''It's really a question of how you define collapse.''
    Bolivia's industrial production has declined for four consecutive
years, and in 1984, the number of people with jobs fell by almost a
third. The unofficial exchange rate has jumped from 20,000 pesos to
the dollar in December to more than 50,000 now.
    Workers won a 640 percent wage increase in November, but had to wait
more than a month for the currency to pay them to arrive from
printing presses in Europe.
    Under pressure from powerful trade unions not to repay the $3.1
billion foreign debt, President Hernan Siles Zuazo agreed to the
moratorium on payments last May. Even so, he was roused from bed two
months later in an attempted coup and left bound hand and foot in a
warehouse in the center of the capital. Siles was rescued, but
experts doubt he will resume payments before the national elections
on June 16.
    However, Antonio Cabrera, an economics counselor for the Bolivian
Embassy in Washington, said that although the embassy lacked
information he believed his country might resume payments this year.
    ''Sure, why not?'' he said.
    Bankers say it is possible, though not probable, that a disgruntled
creditor might go to court to try to attach Bolivian assets. The
difficulty is that these assets by law normally would have to be
commercial ones, rather than an embassy or consulate, and they
generally would have to be shared with other creditors.
    Peru is also worried that its assets might be vulnerable, and
bankers say it is moving its deposits from American banks to which it
owes money.
    ''What they're telling us is that they're moving money out of U.S.
banks into French banks,'' said one American banker who sits on the
committee that deliberates on Peruvian debt. ''We're really burned
up.'' The galling thing, he said, was that the French banks were much
less helpful to Peru than the American institutions.
    But although bankers acknowledge the possibility that a creditor may
go after assets, they say it is not likely.
    (MORE) nn
    
nyt-02-05-85 1013est
n014  0721  05 Feb 85
BC-LATIN-II 1stadd
NYT NEW YORK: not likely.
    ''If there's a regional bank that's going to play foul, there'll be
a lot of pressure put on it,'' said Rimmer de Vries, senior vice
president of the Morgan Guaranty Trust Co.. ''It would be much better
to sell the loan.'' De Vries said other institutions might buy the
loan, although at a discount.
    Peru stopped making interest payments on its foreign debt last July.
But last month, it belatedly paid $52 million to prevent its account
from becoming six months overdue, which might have forced some
American banks - under pressure from American regulators - to set up
special reserves against such overdue loans. Had that happened, the
banks in question might have put more pressure on Peru.
    Peru is grappling not only with a depressed economy but also with a
guerrilla movement called the Shining Path. Moreover, President
Fernando Belaunde Terry is far behind the leftist opposition in
opinion polls for the April presidential elections. Paying debt,
election watchers say, would not be a move calculated to increase
Belaunde's chances.
    The candidate expected to win, Alan Garcia Perez, has not been
making the kind of noises that reassure bankers.
    ''We will pay,'' he said recently, ''but not at the time that they
want. First we'll pay off our debt to the people by providing food
and jobs.''
    Although Chile is sometimes lumped into the same category because of
its faltering economy, all bankers interviewed say they were far more
sympathetic toward it than to Bolivia and Peru.
    ''We're not frustrated with Chile, even though it has problems,''
said Terence C. Canavan, executive vice president of Chemical Bank.
''They've done everything they have been asked to do and more, and
they still need new money.''
    Chile is among the worst-off debtors, principally because it depends
on copper for almost half its exports, and copper prices have been
falling. Copper currently sells for only half its price of January
1980. Last year alone, the price dropped 10 cents a pound. That is a
catastrophe for a debtor that loses $29 million with each penny drop
in copper prices.
    Much of Central America is also considered precarious, both
financially and politically, by the banks.
    The possibility that the United States might provide financial
assistance to debtors such as El Salvador, Panama and Honduras
improves their position, but Nicaragua on the other hand seems even
more questionable because animosity toward the United States might
encourage it to repudiate its debt.
    Talks between Guatemala and the banks are stalled, and Guatemala is
paying some debt with ''stabilization bonds'' traded in the United
States at a 20 to 30 percent discount. Costa Rica, which like Bolivia
and Nicaragua, has higher debt per capita than gross domestic product
per capita, is also facing huge problems.
    Costa Rica last month reached preliminary agreement with its
creditor banks on a restructuring of debt maturing in 1985 and 1986.
As part of the package, the banks agreed to provide $75 million in
fresh loans. But some bankers doubt that the package will be enough.
    ''We go to these roundups and get to Costa Rica,'' one New York
banker said, ''and everybody starts laughing. It ruins your image of
a banker.''
    
nyt-02-05-85 1020est
n015  0726  05 Feb 85
PM-MORTGAGE
(BizDay)
By TODD S. PURDUM
c.1985 N.Y. Times News Service
    NEW YORK - Interest rates on home mortgages fell in January for the
sixth consecutive month, the Federal Home Loan Bank Board reported
Monday.
    But the drop was small and some economists said the trend was
slowing and predicted rates would soon begin climbing. They pointed
to indications that the Federal Reserve will not further ease
monetary policy.
    The average rate for conventional fixed-rate, long-term loans for
new homes was 13.67 percent in early January, down from 13.77 percent
in December and 14.09 percent in November.
    Rates on adjustable-rate mortgages, which now account for 49 percent
of total mortgage loans, also declined. Adjustable-rate mortgages
with limits on rate increases fell to an average of 11.89 percent,
from 12.09 percent a month earlier. Adjustable mortgages with no caps
fell to 11.8 percent, from 12.14 percent.
    But since rates on the long-term bonds that influence mortgage rates
rose last week, some economists said the mortgage market might soon
follow suit.
    ''I think that the decline is pretty well over,'' said Michael
Sumichrast, chief economist for the National Association of Home
Builders. ''When you look at what's happening in the economy and the
money markets, I think the Fed has eased up about all they're going
to.''
    But David Berson, chief financial economist at Wharton Econometrics,
said the rates would decline a full percentage point from the early
January figure before turning up. Much of that drop has already
occurred, he said, but will not be reported until the bank board
releases its February figures.
    Warren J. Dunn, senior vice president of the Mortgage Bankers
Association in Washington, said the decline in long-term fixed rates
was slowing, and would bottom out at around 12 percent in the second
quarter.
    Berson predicted the economy would grow slowly with no significant
increase in inflation this year, and he said mortgage rates would
rise by the end of the year by only about one-half of one percentage
point from their expected lows.
    Berson said housing starts and sales had been below the expectations
of many economists because buyers were waiting to see how low
mortgage rates would go. ''Once it becomes more clear that mortgage
rates have reached the bottom, housing activity in the first and
second quarters ought to be very strong,'' he said.
    
nyt-02-05-85 1026est
n016  0731  05 Feb 85
BC-SCIENCE-Q&A (UNDATED)
(Science Times)
c.1985 N.Y. Times News Service
    
    Q. What is the most accurate source for the correct time in my city?
I've found that the phone company's local time and temperature number
does not correspond to the time given by radio and television
stations. Who is correct?
    A. The Time Service Department of the United States Naval
Observatory in Washington keeps the most precise atomic clock in this
country. By dialing 900-410-TIME, one can hear an announcement
accurate to one-tenth of a second. But time is money, precisely 50
cents for the first minute and 35 cents a minute thereafter,
collected by the phone company. Clock watchers with a shortwave radio
can tune in to station WWV in Fort Collins, Colo., (2.5, 5, 10, 15
and 20 megahertz) for the Bureau of Standards time signal.
    Q. Why do we sneeze when we look into the sun?
    A. A sneeze is an involuntary spasm of chest and pharynx muscles
that is usually triggered by irritated nerves in the nasal lining,
caused by dust and other foreign particles, dry air or a sudden
chilling. The nearby eye nerves are closely connected to the nerves
in the nose; that is why eyes often itch or water when the nose is
irritated. But for some people the relationship goes the other way as
well, and bright sunlight irritates the eye nerves, which in turn
irritate the nose nerves, triggering a sneeze. Unlike a cough, which
sends a gust of air through the mouth, the sneeze always contracts
the muscles of the pharynx, causing the initial supersonic blast to
go through the nose. The eye nerves are affected at this point as
well, as the blinking muscles involuntarily contract.
    
    Readers are invited to submit questions about science to Questions,
Science Times, The New York Times, 229 West 43d Street, New York,
N.Y. 10036. Questions of general interest will be answered in this
column, but requests for medical advice cannot be honored and
unpublished letters cannot be answered individually.
    
nyt-02-05-85 1030est
n017  0734  05 Feb 85
BC-ADV-SPECFEAT
(FOR IMMEDIATE RELEASE)
FROM THE NEW YORK TIMES MAGAZINE
Copyright 1985 The New York Times
World rights. (1,000)
UNMASKING THE TRUTH ABOUT SKIN-CARE PRODUCTS
By DEBORAH BLUMENTHAL
    Do facial masks and astringents really improve your looks? Yes and
no, says beauty and fitness writer Deborah Blumenthal. Take
astringents for example. Even though they cleanse the skin, restore
its natural level of acidity and leave it feeling refreshed, the
results are short-lived. The same is true with masks. With such
short-term results, are these products worth the investment of time
and money? In this article from a recent New York Times Magazine,
Blumenthal, who often writes on health and beauty for the magazine,
tells how people with different skin types can use both kinds of
products to maximum benefit. The author also talks to skin and beauty
experts about the possible hazards of overdoing it. (slugged:
BC-MASK, priority code w, category code c)
To purchase the above material contact The New York Times Syndication
Sales Corp. Call Doris Richetti (714) 846-2877, or Dan Barber (212)
972- 1070. Overseas clients contact Paul Gendelman in Paris: 742-1711
or 742- 1411 (telex 842-230650).
This material will be transmitted to you on Tue., Feb. 5, the tav
selector code.
    
nyt-02-05-85 1033est
n018  0745  05 Feb 85
BC-TV-TONIGHT ADV08
ATTENTION EDITORS: THE FOLLOWING MATERIAL MAY BE USED ONLY
BY SPECIAL ARRANGEMENT WITH SPECIAL FEATURES. FOR PURCHASE
INFORMATION SEE END OF COLUMN.
FOR RELEASE: FRI., FEB. 8, 1985
NOT FROM THE NEW YORK TIMES
Copyright 1985 Rick Sherwood
TV-TONIGHT COLUMN
By RICK SHERWOOD
(Editors: Please check local listings for time and channel. All times
listed are EST unless otherwise specified.)
    LOS ANGELES -- Say goodbye to Bo and Luke, Boss Hogg, Daisy, Rosco
and the rest. ''The Dukes of Hazzard,'' the long-running
action-adventure series that gave new meaning to the term
''boob-tube,'' leaves the prime-time airwaves following tonight's
broadcast (8 p.m.).
    The show has been the staple of the CBS Friday lineup for seven and
a half years, longer than ''Dallas,'' and a lot longer than ''Falcon
Crest.''
    Until last year it was a consistent top-20 finisher, often in the
top five, but TV audience tastes seem to have matured in recent
years, and ''Dukes'' fell well below the halfway point in the Nielsen
rankings.
    It's a shame, in a way, because without the ''Dukes,'' critics like
me are going to have to find some other show to kick around.
    With the ''Dukes,'' it was so easy.
    HIGHLIGHTS BOX
    ''Code Name: Foxfire,'' NBC at 8 p.m.: This show did surprisingly
well with last week's Sunday-night debut, edging out CBS's popular
lineup and simply destroying Paul Newman and ''The Verdict'' to win
in the evening's ratings race. The new action-adventure series begins
in its regular slot tonight. Elizabeth Towne and her crew investigate
the kidnapping of five of New York's top bank presidents. Joanna
Cassidy stars.
    ''Webster,'' ABC at 8:30 p.m.: Katherine is pregnant, but not sure
she's ready for motherhood. Another good theme, with the focus on
unplanned parenthood. First of two parts. Susan Clark stars.
    ''V,'' NBC at 9 p.m.: An investigation into Charles's murder results
in a laser duel to the death between Diana and Lydia; Donovan sets
out to help settle the score in a futurist Boston Tea Party. Jane
Badler, Marc Singer star.
    ''Falcon Crest,'' CBS at 10 p.m.: No one will say for sure where the
script of this show will take us, but word is that Abby Dalton won't
be a part of it. There's no confirmation, but it's likely Julia will
be written out by season's end, perhaps as part of the cliff-hanger.
Watch for developments. Tonight, Angela and Julia have a reunion that
turns ugly; an unlikely trio comes to Angela's aid. Jane Wyman stars.
    SERIES SAMPLINGS
    ''Benson,'' ABC at 8 p.m.: Benson's remarks about the president's
proposed budget cuts reach Washington, and he and the Governor are
called to the White House. Robert Guillaume stars.
    ''Dallas,'' CBS at 9 p.m.: A judge issues a temporary injunction
after Cliff and Jamie sue for their shares in Ewing Oil; Jenna thinks
she may have committed a murder. Ken Kercheval, Priscilla Presley.
    ''Street Hawk,'' ABC at 9 pm.: Street Hawk is up against a batallion
of ultralight planes that are being used as part of an unusual
arson-extortion plot. Rex Smith.
    ''Matt Houston,'' ABC at 10 p.m.: Matt's old friend is murdered, and
he's off to New Orleans on the trail of a free-lance reporter and
some potentially deadly vigilantes. Ray Walston, Ellen Bry guest.
    ''ABC Rocks,'' ABC at midnight: Videos by Pat Benatar, Don Henley,
Billy Joel.
    ''Friday Night Videos,'' NBC at 12:30 a.m.: Videos by Joan Jett,
Tina Turner, Prince and Hall & Oates.
    CABLE CALLS
    ''Sportslook,'' ESN at 7:30 p.m.: An interview with former
heavyweight boxer Ken Norton.
    ''Island of the Blue Dolphins,'' TBS at 8:05 p.m.: Gather the kids
and watch this children's adventure story from 1964 about a young
girl's life on a deserted island. Celia Kaye stars.
    ''Boxing,'' ESPN at 9 p.m.: 10-round lightweight bout between Bret
Summers and Joey Olivera. Live from Atlantic City.
    ''Southern Comfort,'' WOR at 9 p.m.: Fair 1981 tale about a
confrontation between the National Guard and some Cajuns in the
Louisiana bayous. Powers Boothe, Keith Carradine star.
    ''Make Mine Mink,'' WOR at 3 a.m.: A crazy British comedy from 1960
about a dowager and an ex-army officer who team to commit larceny for
charity. It's a scream! Terry-Thomas, Athene Seyler star.
-0-
Distributed by Special FeaturesSyndication Sales
For information concerning the above material contact Chuck Weiss at
Special Features (212) 972-1070. After 5 p.m. contact The New York
Times News Service (212) 556-1927.
Clients located west of the Mississippi call Paul Finch in Los
Angeles at (213) 852-1579.
    
nyt-02-05-85 1044est
n019  0755  05 Feb 85
BC-CHINA
By JOHN F. BURNS
c.1985 N.Y.Times News Service
    SHANGHAI, China - He was seated at a table in the prison dispensary,
dressed in a white dustcoat. From the anguish in his eyes and the
awkward way he rose to his feet, it was plain he was no ordinary
doctor.
    What brought Zhao Guomin to the Shanghai Municipal Prison was not
medicine but murder. On Dec. 28, 1968, he and four other men beat to
death the 38-year-old scientist who was head of the Shanghai
Pharmacological Institute in a case that was swallowed up for a time
in the general tumult of the Cultural Revolution.
    Now 43 years old, Zhao has about 18 months of an eight-year prison
term still to serve, and he counts himself a lucky man. ''I could
have been executed,'' he told a visitor. Tears welled in his eyes as
he spoke of his victim's family and of the travails of his own wife
and son as they await his return.
    Zhao's story is one of many in the forbidding edifice at 147
Changyang Street in central Shanghai that have their origin in the
''10 years of calamity,'' as the Cultural Revolution is officially
known. When Mao Zedong set out in 1966 to turn Chinese society upside
down, he unleashed forces that shattered hundreds of thousands of
lives, and the legacy is still felt in every corner of the nation's
life.
    A tour of the Shanghai prison is a sobering affair. More than 60
percent of the 3,700 inmates are under 35, men and women who belong
to what Chinese call the ''lost generation'' of youth whose education
and family life were uprooted when the Cultural Revolution closed
schools, set children against parents and licensed mayhem against
anybody standing for the established order.
    ''What we have here in many respects are the victims of the Cultural
Revolution,'' said Wu Jichen, the prison's deputy governor, as he led
a visitor through workshops and classrooms that cluster around
granite cell blocks built by the British between 1903 and 1923.
''They belong to a generation that was told by the Gang of Four that
education was useless, so they grew up without culture, without any
sense of right and wrong.''
    ''What we try to do is to engage in a process of remolding, to try
and help the inmates distinguish what is right from what is wrong,
what is beautiful from what is ugly, what is lawful from what is
not.''
    Similar accounts have been offered for many years in Chinese jails,
but officials acknowledge now that much of what was said in the past
was false or at least exaggerated. The picture that has emerged since
the ascent of China's current leader, Deng Xiaoping, is one in which
the country's vast network of jails and labor camps, indeed the
entire legal system, was fatally prejudiced by arbitrariness and
brutality.
    Not all of this has changed. In two years, under a crackdown on
crime begun by Deng, thousands of people have been executed, some
within days of their offenses. The central authorities' insistence on
a broader use of the death sentence has led to thousands of
executions since the autumn of 1983, nine in Peking on one day in
January alone. Troubling questions remain about the fairness of court
procedures, including limited opportunities for defense.
    Nonetheless, a visit to the Shanghai prison suggests that greater
effort has been made under Deng to give substance to Mao's
instruction that prisons be turned into factories, farms and schools
where inmates can prepare for a better life. A visitor passing
through workshops where prisoners make clothing, electrical
components and ornaments has the impression of generally healthy men
and women unafraid to talk about their yearning for life outside.
    The prison sits off a busy street, shielded by a succession of three
steel doors, by guards with automatic rifles and by a 20-foot granite
wall topped by glass shards. According to Wu, the deputy governor,
sentences range from 20 years to six months, with ''seven or eight''
inmates under suspended death sentences that can be commuted for good
behavior after two years.
    The case of Zhao suggests that there is still much that is arbitrary
in the sentencing. As he told it, he was press-ganged into joining an
''investigation team'' that came to the pharmacological institute to
press charges of spying against the party secretary. Because torture
was to be involved, the team wanted a doctor present, but as things
progressed Zhao became an accomplice in the beating.
    Zhao said the death was covered up at the time, but the case was
reopened at the widow's instigation after the overthrow of the
so-called Gang of Four - Jiang Qing, who was Mao's wife, and her
associates - in 1976. Two of the five assailants were tried, and Zhao
received the stiffer sentence. After two years at hard labor and two
more in another prison, he was assigned to the dispensary. On his
release next year, he expects to be reassigned to medical work in
Shanghai.
    
     nn
    
nyt-02-05-85 1054est
n020  0800  05 Feb 85
BC-CHINA Addatend
NYT SHANGHAI: in Shanghai.
    Against this, other sentences seem relatively severe. Chen Jingcai,
conductor of the prison orchestra, is serving a 15-year term for
''molesting women'' while interviewing them for posts with a Shanghai
ensemble. Since there is a charge of rape under Chinese law, his
offense evidently was less severe. Now he spends his days teaching
prisoners the violin, flute and other instruments and rehearsing
lusty renditions of the ''Ode to Joy'' movement of Beethoven's Ninth
Symphony and American songs such as ''Oh! Susanna'' sung with Chinese
words.
    Even in the orchestra, prisoners are expected to work at remolding
attitudes. Zhao Derong, a former glassmaker serving a four-year term
for stealing bicycles, exercises his strong tenor in a prison ballad
he composed, ''Don't Worry About Me, Mother.'' In the refrain, he
sings of his wish to study hard, learn skills and ''make my
contribution to the motherland.''
    Work is the center of prison life. Inmates labor eight hours a day,
six days a week for three yuan, or $1.07, plus monthly bonuses of up
to 20 yuan. All are required to attend classes and to work toward at
least a junior middle school certificate, the equivalent of 10th
grade. Each block has a television set, a library and a Ping-Pong
table. A half-hour family visit once a month is permitted, and about
a fifth of the prisoners are allowed to go home for a couple of days
each year.
    At night, two inmates are locked into each of the cells, which
measure about 8 feet by 5 and have steel doors and a sliding peephole
that opens from the outside. Bedrolls stacked against the wall are
laid on concrete floors. Regulations pinned to the wall forbid
discussion of crimes and sentences between cellmates and command them
to ''seriously repent'' their wrongdoing.
    According to Wu, the deputy governor, the last time anybody escaped
was in 1975, clinging to the underside of a delivery truck, and he
was caught in hours. Although guards are unarmed, officials say none
have been attacked in memory. ''What we aim for is to achieve the
kind of relationship doctors have with patients,'' said Wu. ''You can
see for yourself, there is no hostility between wardens and
prisoners.''
    
nyt-02-05-85 1059est
n021  0812  05 Feb 85
BC-TV-SPORTS
By MICHAEL KATZ
c.1985 N.Y. Times News Service
    NEW YORK - The way to add excitement to televised wintersports is to
combine the luge and biathlon and let them shoot at moving targets.
But resisting the temptation of record Nielsens, ABC provided a more
traditional combination last weekend as a reminder that winter is
upon us.
    The network of snow and ice, the network of the Winter Olympics,
began its buildup for the 1988 Games at Calgary, Alberta, by
combining the two most glamorous events: women's figure skating and
men's downhill skiing.
    Figure skating, like gymnastics in the Summer Games, is the
television event with the most sex appeal. Women skiers, like women
hurdlers, are slower than their male counterparts and thus are
treated like second-class athletic citizens. But figure skaters and
gymnasts are the ''Charlie's Angels'' of the Olympics. Olga Korbut,
Nadia Comaneci and Mary Lou Retton were the female leads in the last
Summer Games this country has participated in (as far as we were
concerned, there were no stars at all in the boycotted 1980 Moscow
Games). Winters have been dominated by the Peggy Flemings, Dorothy
Hamills and Janet Lynns.
    And last weekend, as Jim McKay announced, there was ''a changing of
the guard'' at the U.S. figure-skating championships at the Kemper
Arena in Kansas City, Mo. Gone were such stalwarts as Rosalynn
Sumners and Elaine Zayak. In place now are Tiffany Chin, Debi
Thomas and Caryn Kadavy.
    ''A new day is dawning in American skating,'' said McKay.
    It happens every four years. Figure skating may not be any more of a
sport than, say, ballet dancing. Both combine athletic prowess,
strength, stamina and, most of all, grace. Take away the judges, and
figure-skating meets are no more strenuous, or competitive, than
tryouts for the New York City Ballet. And, in fact, Olympic figure
skating is a quadrennial audition for ''Ice Capades'' or ''Mickey
Mouse on Ice.'' It's show biz, an industry that television knows all
about.
    Show biz, with blue ice for a stage, apparently does not need
competition. Neither, apparently, does figure skating, at least the
way ABC shows it. Skater after skater, wearing outfits that Cyndi
Lauper would not be caught dead in, and with Kewpie doll smiles
pasted on their faces, take their turns independently. There is
little reference to the other competitors, or what kind of
performances second-place skaters might need in order to overtake No.
1.
    Dick Button, long one of the best ''expert'' commentators in sports
television, went so far as to explain that ''ice dancing can't hide
behind triple-jumps and spins,'' as if the only thing that really
mattered in all of skating was the musical interpretation. Button, in
an interview later, added that there was no reason why ballet could
not be considered a sport, either.
    Button seems to have backed off technical analysis, opting instead
to report on how nervous the skaters must be. Peggy Fleming, who was
conspicuously absent from the ABC booth during the men's competition
as Brian Boitano took over as champion from that recent graduate to
show biz, Scott Hamilton, at least pointed out during Miss Chin's
performance that ''she seems to be skating a very safe kind of
program.''
    But television ducked one story. Debi Thomas, who finished second to
Miss Chin, was the first black skater to win a medal at the national
championships. The obvious questions about why more blacks have not
gone into the winter sports were never asked.
    
    Ernie Kovacs did it much better than ABC. The comedian, almost 30
years ago anticipating the women's downhill ski race at Santa
Cristina, Italy, one week announced at the start of his show that the
fabulous Nairobi Trio would perform that night. At show's end, with
no appearance by the Nairobi Trio, Kovacs explained that the boys'
flight was delayed, but that they would be on next week.
    The following week, after again promising the Nairobi Trio at the
start of the show, Kovacs explained that the boys' car broke down,
but please try again next week. This time, the excuse was that the
elevator to the studio had broken down. Eventually, three men dressed
in gorilla costumes appeared and they were well worth the wait.
    ABC viewers got Frank Gifford and Bob Beattie. They had been
promised, on same-day tape-delay coverage Saturday, the women's
downhill at the world skiing championships. Hours before ''Wide World
of Sports'' went on the air, ABC knew that high winds in the Italian
Alps had forced the postponement of the race. Yet all day, even
during the figure-skating portion of the program, viewers were told
that the women's downhill was ''coming up.''
    The race actually started, with Gifford and Beattie mentioning that
the winds made the course dangerous (footage of a training accident
was shown, of course). After 12 skiers went down the mountain, race
officials called off the race, erasing the results of those early
starters. Only then did Beattie say, ''Now the question is whether
they should've started in the first place.''
    There was no excuse for ABC's leading on skiing fans who were
expecting a race. It is the same principle, and certainly ABC has no
monopoly on its use, of most anthology sports programs: ''Coming up
is the world championship fight, but right now, let's return to the
barrel lifting.''
    
nyt-02-05-85 1111est
n022  0824  05 Feb 85
BC-SAUDI
(BizDay)
By DANIEL F. CUFF
c. 1985 N.Y. Times News Service
    NEW YORK - The natural gas the Saudi Arabians once wastefully flared
off as a byproduct of oil production is now being harnessed and
turned into petrochemicals. The Saudi dream of industrialization is
coming true.
    But some analysts are suggesting that the dream may turn into a
nightmare for petrochemical producers elsewhere - with Dow Chemical,
Union Carbide, Du Pont and the European and Japanese chemical giants
all feeling the effects.
    In picture-book communities and gleaming plant complexes that did
not exist five years ago, Saudi Arabia this year is starting up much
of its output of products with such names as ethanol, methanol,
polyethylene and polyvinyl chloride.
    Petrochemical products, made from oil as well as natural gas, end up
as plastics and fibers in thousands of industrial and consumer uses,
from clothing to antifreeze to plastic bags. New plants in Saudi
Arabia, as well as in Mexico, Kuwait and Canada, are adding some 10
percent to world capacity. As a result, fears are being expressed
that many existing petrochemical plants will not be around in five
years as the extra output depresses prices.
    The Saudis, keenly aware of these fears, are trying to assuage them
even before production starts in full. They are dispatching
representatives and hiring public relations experts to get their
message out. ''Our intent,'' said a Saudi official, Abdulaziz S.
al-Jarbou, ''is to engage in commerce in a professional and an
orderly, not disruptive, manner to compete fairly, to cooperate and
to realize profits for our effort.''
    The Saudis stress that they are developing their petrochemical
industry on a 50-50 ownership basis with such companies as Celanese,
Exxon, Mobil, Shell and Texas Eastern as well as with Japanese and
other international companies. And they contend that at full
capacity, they will be adding only 5 percent to world petrochemical
output. But many Western analysts remain wary.
    ''There's the ancient tale about the camel out in the cold who put
his head in the tent,'' said John P. Henry, a chemical-industry
analyst for E.F. Hutton. ''He likes it, and eventually the guy inside
the tent is out in the cold.''
    Peter E. Butler, an analyst at Paine Webber Inc., thinks that many
Wall Street analysts who were unworried two years ago are now more
concerned about the effect of Saudi capacity on companies in the
United States. ''It's naive to expect that this stuff is just going
to be sold in Japan,'' he said. ''It's going to upset worldwide
markets.''
    And Anantha K.S. Raman, an industry analyst with his own firm in
Parsippany, N.J.,said the new Saudi products ''will
create disruptions in the marketplace for a couple of years without
any question.''
    But Raman thinks the Saudis may not succeed in the long term. The
cost of the new plants offsets the Saudi advantage on raw materials,
he believes, and in three to five years ''they're going to find out
that they are losing money,'' he said. ''My forecast is that some of
these facilities are going to be left to bake in the sun.''
    But the American petrochemical makers have been hurting even before
the new Saudi production.
    ''The U.S. is already going through problems because of the high
value of the dollar, declining profit margins and low prices,'' said
Joseph H. Posevina, a chemicals analyst at McGraw-Hill's Data
Resources Inc. ''There's been a whole shake-up over the last two or
three years, and a lot of high-cost capacity has already been shut
down.''
    But Posevina and others think the effect of the Saudi production on
American producers will be ''minimal,'' except for their export
markets. ''We don't see the Saudi stuff directly competing in United
States markets,'' Posevina said. ''It will be sold mainly in the
Pacific rim and some will be targeted toward Western Europe.''
    The onset of Saudi petrochemical production comes as no surprise,
since it has been eight years in the making. Still, some analysts
compare the American petrochemical industry to the steel industry as
it became engulfed in imports, and to the auto industry just before
the Japanese started to sell cars in large numbers in the United
States.
    Such companies as the Dow Chemical Co., which itself pulled out of a
$1.5 billion Saudi joint venture, do not share those concerns fully,
at least publicly. In a recent interview, Paul F. Oreffice, president
and chief executive, said the Saudi production would have ''some
effects, but I think it has been overdone.'' The added Saudi capacity
would be absorbed by growth in demand for petrochemicals, he said.
    But all the companies have recognized that, for whatever reason, the
petrochemical market has matured and is less profitable.
     Henry of Hutton said, however, that ''the chemical industry has the
ability to change its spots.'' For example, the American Cyanamid
Co., the Monsanto Co. and others have moved into biotechnology,
specialty chemicals, pharmaceuticals, herbicides and consumer
products. And Dow recently bought Morton Thiokol's Texize, which
makes Fantastic and other household products.
    Meanwhile, E.I. du Pont de Nemours & Co. has decided to stop selling
methanol, saying that the market is awash in the stuff. And the Union
Carbide Corp. plans to end production of synthetic ethanol at its
Texas City plant and instead process crude industrial ethanol that
the Shell Chemical Co. purchases from the Saudis. Ethanol and
methanol are used to make more sophisticated chemical products. nn
    
nyt-02-05-85 1124est
n023  0829  05 Feb 85
BC-SAUDI Addatend
NYT NEW YORK: chemical products.
    Although the Saudis are trying to minimize their impact, they
concede that their presence, along with new participants from other
energy-abundant countries, will alter the industry. ''Commodity
petrochemical production is shifting from traditional producers to
the energy-rich nations,'' al-Jarbou said in New York recently.
    Al-Jarbou, who received his doctorate in chemical and petroleum
refining engineering in 1976 from the Colorado School of Mines,
recently completed a visit to the United States to tell the Saudi
story to news representatives and other audiences. He is director
general of the projects implementation department of the Saudi Basic
Industries Corp., or Sabic, with headquarters in Riyadh.
    In a speech to the American-Arab Association for Commerce and
Industry, he said that since 1980 in Western Europe 3.5 million
metric tons of ethylene capacity has already shut down, along with
two million tons of polyolefins and almost a million tons of
polyvinyl chloride capacity, products used to make plastics and
fibers. In the United States, ethylene capacity is expected to drop
to some 16.9 million tons this year from 18.3 million in 1981.
    ''This is a harsh reality,'' he said. ''We are passing through the
twilight of one industrial era and entering the dawn of another.''
    The Saudis said they decided on the joint venture approach to
minimize what al-Jarbou called ''destructive conflict.'' Sabic also
benefits by being able to market its products through existing
networks.
    Sabic was formed in 1976 to develop petrochemical, metals and
fertilizer industries. Some 30 percent of the company is held by
private citizens and the goal is to make that 75 percent. In all,
some 16 plants will be built at al-Jubail on the Arabian gulf and
Yanbu on the Red Sea.
    
nyt-02-05-85 1128est
n024  0840  05 Feb 85
BC-MEXICO
By RICHARD J. MEISLIN
c.1985 N.Y. Times News Service
    MEXICO CITY - The letter, written by ''Pepe'' in a child's scrawl,
tugs at the heart. ''Mommy, it's better that we go back,'' it says.
''Couldn't daddy really make it in the pueblo, where he knows how
things work and everybody loves him? Where we could see him both in
the morning and at night?
    ''You tell him, because whenever I see him he's in a bad mood.''
    Pepe is the invention of Jorge Renner Creative, a Mexico advertising
company, but his words are probably repeated hundreds of times a day
here. His message was a winner in a public service advertising
competition held recently by a local newspaper and the Ministry of
Urban Development and Ecology. The contest is part of a growing
government effort to persuade people to leave Mexico's increasingly
crowded and unlivable capital.
    The population of the Mexico City metropolitan area is currently
believed to be 18 million, making it one of the world's most populous
cities. It is estimated to be growing by about 100,000 people a month
as peasants flee the poverty of the Mexican countryside for what they
believe will be greater opportunity amid the urban bustle.
    As in many other Third World countries, however, what they often
find instead are only new varieties of poverty. And all this places
growing strains on this city's already overburdened public service
system and scarce air and water.
    Ill-prepared for city life, the migrants join thousands of their
predecessors in squeezing out the most threadbare of livings by doing
odd jobs, selling whatever they can to drivers on Mexico's clogged
streets and living in the squalid ''lost cities'' that spring up,
seemingly overnight, on any vacant piece of land.
    Not only is there not sufficient space to live in the capital these
days, there is no longer even sufficient space to die. Local
officials announced some months back that they would not permit new
cemeteries to be built here because there was simply not enough space.
    The government has come up with any number of plans intended to hold
back the human tide, usually with as much success as King Canute. Now
it has decided to move parts of itself, in the hope that some of the
urban magnetism that comes from federal money and power can be
transferred somewhere else.
    Under a plan announced recently by President Miguel de la Madrid,
more than 50 government agencies and government-operated industries
will be moved into the countryside.
    The National Commission on Arid Zones, for example, will be
transferred to an arid zone, the northern state of Coahuila; the
management of Mexico's ferries will be relocated from the land-locked
capital to La Paz, Baja California South, where ferries actually
operate; the headquarters of various government forestry industries
will be moved to areas where they are more likely to encounter living
trees.
    Conscious of the limited effects of past government efforts, de la
Madrid warned that the results of the move, which will involve some
40,000 federal employees, will not be ''sudden or spectacular.'' But
he said the strong centralization of Mexico in its federal capital
had become ''one of the causes of inefficiency and low productivity
in our economic apparatus'' and had to be reversed.
    The federal government is offering a series of incentives - a share
of equipment replacement and relocation costs as well as tax breaks -
to private companies that wish to go someplace else. And Mexico City
officials are working with the governors of less populated states on
a plan to find jobs and a piece of land - outside the capital - for
jobless migrants willing to relocate.
    The secretary of Programs and Budgeting, Carlos Salinas de Gortari,
said the government recognized worker concerns over such issues as
moving costs as well as schooling, housing and health care in what
are commonly known here as ''the provinces,'' and that the government
would ''fully respect the rights of the workers.''
    Nevertheless, many workers are resisting a move away from what is
widely viewed as the bureaucratic fast track of the federal
government, not to mention a disruption of the traditionally strong,
extended family ties prevalent in Mexico. One report said that
three-quarters of the approximately 100 employees of the Arid Zones
Commission are threatening to resign rather than accept a transfer.
With Mexican labor laws requiring severance pay of several months'
salary, this could make the decentralization program an expensive
prospect.
    Perhaps one of the most effective aids to the government's efforts
is a growing perception - both here and in the countryside - that the
costs of living in Mexico City, with its pollution and stress and
crime, have begun to outweigh the traditional benefits.
    The city's air pollution has become so bad that the American State
Department last summer declared it an ''unhealthy post.'' Those who
work in the United States Embassy here, one of Washington's largest
outposts in the world, will now receive additional retirement credits
- one extra year for every two year's stay. A spokesman said it was
believed to be the only place where Foreign Service employees receive
extra benefits simply for having to breathe.
    
nyt-02-05-85 1139est
n025  0849  05 Feb 85
BC-SCOUTING Undated
By JOSEPH DURSO
c.1985 N.Y. Times News Service
    There is nothing unusual about the graduate who comes back to school
to watch the basketball team play, especially if his younger brother
is now the star of the team. But they still are primping for
something unusual out at Springs Valley High in French Lick, Ind. The
old grad is Larry Bird of the Boston Celtics, and he will return
Friday to watch his brother, Eddie, a junior who is leading the team
in scoring.
    Gary Holland, the basketball coach, said in a telephone interview
Monday that there are differences between the Bird brothers.
    ''Eddie is 6 feet 5 inches tall,'' he said, ''and Larry was a couple
of inches taller. This boy is softspoken and smooth, Larry was
grittier and tougher. Eddie is averaging 50 percent from the floor,
but Larry was a bit better as a shooter.''
    Another difference: Eddie's team lost four of its first five games,
revived, and now has a record of 8-7. In Larry's senior year, when
Holland moved up to head coach, they went 21 and 4.
    ''Larry got me started,'' the coach said. ''I used to think, if it's
going to be this easy, I'm going to like this.'
    
    Maricica Puica, the Romanian who captured the gold medal in the
women's 3,000-meter race in last summer's Olympics while Mary Decker
and Zola Budd captured the headlines, has ended her silence on the
collision controversy - though briefly.
    ''Her opinion is that it is Mary Decker's fault because we are not
permitted to go on the left side when you want to be first,'' Miss
Puica said through an interpreter Monday. ''You must take the right
side.''
    Miss Puica, who has sometimes resented the fact that two women who
lost the race received more attention than she did, said she believed
she would have won even if they had not collided. Miss Decker, who
suffered injuries to the hip and groin, and Miss Budd, who finished
seventh, have blamed each other.
    The Romanian runner, who is here for the Vitalis-United States
Olympic Invitational this Saturday at the Meadowlands, made her
comments in response to a question during an informal news conference
before the track writers' luncheon. When she was asked the same
question after the lunch, however, she listened to a few words from
her husband and coach, Ion, then offered a diplomatic ''no comment.''
    ''She is not interested in this,'' was the response of her
intepreter, Vali Ionescu, a silver medalist in the Olympic long jump.
''She only runs.''
    Miss Decker, who has since married and now competes under the name
Mary Slaney, will run in the 1,500-meter race this weekend. Miss
Puica will run the 3,000 meters.
    
    Mark May said he ''came down just to look around.'' But, like so
many others, he is curious - curious about Doug Flutie. And he will
linger at the Generals' training camp in Orlando, Fla., at least
until Wednesday when the highly publicized quarterback is scheduled
to make his first appearance in camp.
    May is the 6-foot-6-inch, 288-pound offensive lineman whose contract
with the Washington Redskins expired last Thursday. He received an
offer from the Generals, and accepted their invitation to visit the
training camp.
    ''I wanted to find out about the United States Football League,'' he
said. ''The only thing I knew about it was the Washington Federals,
and they didn't impress me.''
    The Federals, who won only 7 of 36 games in two improvident seasons,
were sold and moved to Orlando, where they are known as the Renegades.
    ''There's a big difference,'' May said, after a day with the
Generals. ''This is a first-class operation, just like the NFL.''
    Negotiations on the Generals' offer, reported to be $1.2 million for
three years, have paused because management's attention has been
focused on signing Flutie and getting him to camp. May has continued
to talk with the Redskins.
    
nyt-02-05-85 1148est
n026  0855  05 Feb 85
BC-ASPIN 2takes
(WashPage)
By STEVEN V. ROBERTS
c.1985 N.Y. Times News Service
    WASHINGTON - The first public meeting of the House Armed Services
Committee had just ended, and the new chairman, Rep. Les Aspin of
Wisconsin, was besieged by favor-seekers.
    Rep. Ronald V. Dellums, D-Calif., asked him to solve a personnel
problem and snapped, ''You're the new chairman - you change it.''
Rep. Roy Dyson, D-Md., pleaded: ''Can you sign that letter to the
Pentagon? The only way you get them to do something is to bug the
hell out of them.''
    Aspin, 46 years old, has been bugging the Pentagon since he was
first elected to Congress in 1970 and became a self-appointed
watchdog of military maneuvers and machinations. Today Aspin is no
longer an outsider pressing his nose against the windows of power on
Capitol Hill. Last month he engineered one of the most startling
coups in recent congressional memory by unseating the incumbent armed
services chairman, 80-year-old Melvin Price of Illinois, who is in
failing health.
    In his new post Aspin is in a key position to influence America's
military policy, and his impact is already visible. On Tuesday
morning Defense Secretary Caspar W. Weinberger is scheduled to
testify before the armed services panel, and in a letter to the
secretary last week Aspin included a statement outlining his basic
approach to the forthcoming battle over the Pentagon budget.
    ''In the boldest terms,'' Aspin wrote, ''what we must tell the
Defense Department is, 'Before we give you billions more, we want to
know what you've done with the trillion you've got.' ''
    ''What I would like the committee to do,'' he added, ''is step back
and take a broad look at the whole program - what we have
accomplished and what we have yet to do.''
    This is revolutionary talk for a committee that has earned a
reputation as a rubber stamp for the Pentagon and the Reagan
administration.
    In Aspin's view, the armed services committee has acted more like
the public works committee, playing pork barrel politics by
dispensing bases and contracts to favored districts. At a time when
budget deficits are forcing Congress to re-examine its spending
priorities, he says, the committee must look behind all the
technology and hardware and ask the Pentagon to justify its requests
in terms of long-range strategy and planning.
    Rep. Dave McCurdy, a young Democrat from Oklahoma who helped
organize Aspin's campaign for the chairmanship, said: ''We're less
willing to accept at face value what the Pentagon presents. We have
to challenge them, we have to question them, from a policy point of
view.''
    Perhaps more than any other committee in Congress, the armed
services panel is divided by a generation gap. The six senior
Democrats are all outspoken supporters of the Pentagon and of the
Reagan administration's efforts to build military might.
    
    (MORE)
     nn
    
nyt-02-05-85 1155est
n027  0903  05 Feb 85
BC-ASPIN 1stadd
NYT WASHINGTON: millitary might.
    One of the six, Samuel S. Stratton of upstate New York, who is a
Navy veteran of two wars, explained the gap this way: ''Those of us
who grew up before World War II, and saw what happened in Europe,
have a much different understanding about the need for a strong and
credible defense than those who grew up during the Vietnam War.''
    Aspin, the seventh-ranking Democrat in seniority, joined the
committee with an eye toward monitoring the Pentagon and not just
cheering for it. Since then, more than a half-dozen other Democrats
who trace their roots to the antiwar atmosphere of the Vietnam era
have joined the committee, and Aspin aims to involve these junior
members more directly in its deliberations.
    But the pro-Pentagon forces still maintain a majority among the 27
Democrats on the committee, and that limits Aspin's freedom. For
example, he had planned to form a subcommittee, that he would head,
to look into broad questions of military policy. This would have
opened up a subcommittee chairmanship for Rep. Patricia Schroeder of
Colorado, an Aspin ally.
    But the senior members put up their own candidate, Beverly Byron of
Maryland, to challenge Mrs. Schroeder. Faced with a possible ''civil
war,'' Aspin abandoned his plan for a new subcommittee.
    Aspin's decision to avoid a confrontation demonstrated his
determination to bandage the wounds caused by his rebellion against
Price. ''He's gone out of his way to be conciliatory to the members
who didn't support him,'' Stratton conceded.
    The new chairman is keenly aware that he does not have the votes to
win on many issues, but he can use his power in other ways. For
instance, in addition to the parade of military brass that testifies
on Capitol Hill every year, the new chairman intends to balance out
the witness list with independent critics of the Pentagon.
    ''We're going to have fun,'' he said one day recently as he strode
rapidly from one meeting to another.
    A committee chairman also controls who gets appointed to the staff,
what issues they study and which reports they publish for other
lawmakers. He decides which members get to go on trips and what bills
the committee will consider. He can help craft Democratic positions
on military issues and expound them on television interview shows.
    Moreover, when House members meet with their Senate counterparts to
put together the final version of the military authorization bill,
Aspin will head the House delegation. ''In the conferences before,
the conferees represented the Pentagon, not the House position,''
asserted Representative Schroeder. ''It took them all of 37 seconds
before they caved.''
    Aspin's first major legislative test will involve the MX missile. He
has supported the weapon for the last few years, but in his campaign
for the committee chairmanship several liberal lawmakers said he
promised to switch course and oppose the weapon when Congress
considers the issue again next month.
    Aspin is trying to avoid making enemies, so he says he has not
decided what to do. But one MX opponent is telling friends that if
Aspin backs the missile he will be a ''one-term chairman'' of the
panel.
    No matter how the MX fight comes out, the Aspin era at armed
services promises to be a turbulent time. ''We don't have all the
answers,'' said McCurdy, one of the chairman's chief lieutenants,
''but we have a hell of a lot of questions.''
    
nyt-02-05-85 1202est
n028  0915  05 Feb 85
BC-SAFRICA
By ALAN COWELL
c. 1985 N.Y. Times News Service
    CROSSROADS, South Africa - They came the other day, again, the men
with stern faces and tear-gas launchers and crowbars to destroy some
shanties on the fringes of this sprawling squatters' camp outside
Cape Town and leave some black people to complain that, as of that
night, the bush might again be home to them and their children.
    And so the sounds of life for some on the Cape of Good Hope seemed
to mix despite themselves: the wind rustled insistently in the blue
gum trees that stand like sentinels around the camp and its tens of
thousands of residents, while the thud of sledgehammers and axes
demolishing frail homes offered an equally insistent counterpoint.
    The husbands grumbled about their helplessness to defend their
homes, and the wives gathered at a prayer meeting, clapping and
asking Jesus in song to send his ''pure, holy air'' to embrace them.
A preacher from the Full Gospel Church, clad in orange overalls and a
navy blue blazer, gave them blessing, if not redemption, by caressing
their heads as they stood in line.
    The homes continued to fall, their modesties and intimacies
vulnerable to the perusal of outsiders: here, a wardrobe with a
mirror, standing upright amid the debris, bereft of its implied
vanity; there, a lone jogging shoe in sandy earth; everywhere, pots
and pans and bedsteads and children, freed from enclosure under roofs
of plastic or tin and walls of similar construction.
    A little way off, Timo Bezuidenhout, the white official in charge of
the destiny of many black people around Cape Town, seemed mildly
irritated. That day, he had brought with him a party of foreign
reporters to display to them the miseries of Crossroads, compared
with the relative luxuries of Khayelitsha, the new black city 10
miles away to which the authorities wish to move the entire black
population around the city that calls itself South Africa's most
liberal. With the demolition, the miseries seemed supplementary to
those the official had wished to portray.
    He was surprised, Bezuidenhout seemed to say, at the timing of the
destruction, which had not been on the agenda of a public relations
exercise supposed to offer an alternate vision of South Africa's
racial practices.
    But, no, he went on, he was not too surprised because the squatters
on the fringes of Crossroads, their small group led by a man called
Jerry Tutu, had built their shanties where they were not supposed to,
and so had courted the risk of demolition by presenting a hazard to
road traffic in the area.
    Tutu acknowledged ruefully to reporters that, indeed, they had
crossed the line set by the authorities when they built their homes.
''But you see,'' he said, ''we have too many people.'' All of them,
he said, live here in tolerated illegality.
    Then, Bezuidenhout and the reporters moved on to Khayelitsha, where
bright new homes sparkled under the sun, and maps and charts promised
a future for those from Crossroads.
    On the Cape Flats, thus, it was the best of times and the worst of
times - depending on who told the tale.
    For 10 years, the white authorities have puzzled and struggled with
the presence of squatters around Cape Town, battling with a conundrum
of their own creation. In the heyday of apartheid, the Cape was
supposed to be a ''colored labor preferential area'' - that is, a
place where people of mixed race would be favored to the exclusion of
black people.
    But that did not stop tens of thousands of black people from heading
for the city from the Xhosa tribal homelands of Ciskei and Transkei,
where jobs are few, drawn by visions of money and work.
    Crossroads, home to from 70,000 to 100,000 people, slowly became the
forlorn repository of their hopes, a place where a roof of tin
sandwiched among others seemed more of a prospect than life in the
homeland. With the building of Khayelitsha, the authorities accepted
what would once have been a heresy in apartheid's theology - that
black people were in the Cape to stay.
    ''This has got nothing to do with ideology,'' Bezuidenhout said,
when he and the reporters arrived at Khayelitsha, a place where the
dunes of the Cape have been flattened for the construction of row
upon row of two-room homes, painted in pastel shades that catch the
sun, like the beach cottages of a distant world. ''Here, we are
building a city in order to alleviate the living conditions of
people.''
    According to Al Rault, Khayelitsha's project engineer, the town will
eventually have a population of 250,000 and will take up to 15 years
to complete. There will be four separate towns within the city, and
there will be sports fields and other amenities, and a bus service
into Cape Town, 16 miles away, with heavily subsidized fares.
    To a casual inspection, the homes in Khayelitsha seem neater and
tidier than the sprawl of Crossroads. But other considerations seem
to intrude among the 632 families who have already been moved there.
    ''The squatter camp is better,'' said Crestin Nkosinathi, 23 years
old, a man without work whose two-room home is shared by seven
people. Its walls are adorned with his own paintings that show small
houses in neat rows, some made of tin, the inspirations of a life
ordered and directed by others.
    ''At the squatter camp, you can build more rooms if you want to,''
he said. ''And it is closer to town so you do not have to pay the bus
fares.''
     Rault said a person traveling to Cape Town might pay the equivalent
of $16 to $17 a month in transit fares, plus about $10 a month in
rent, a substantial proportion of some salaries. nn
    
nyt-02-05-85 1214est
n029  0916  05 Feb 85
BC-NYT-PICTURE-ADVISORY
    
    Editors: Art is en route to LASERPHOTO-II clients for use with
Undated SCOUTING sent earlier. (Hedshot of Maricica Puica, Romanian
runner.)
    
    N.Y. Times News Service
    
nyt-02-05-85 1215est
n030  0919  05 Feb 85
BC-NYT-ADVISORY-LASERPHOTO
    Attn Laserphoto 2 Subscribers:
    The following art is being transmitted today:
    
    Paris -- FASHIONS -- Wrapup of the couture collections. 2-4.
    
    Washington--BUDGET-ASSESS (News Analysis)--Despite bipartisan
criticism of President Reagan's proposals for sweeping cuts in
domestic programs, his 1986 budget package is being treated more
seriously than his last two budgets as a framework for squeezing
government spending and curbing deficits. Graphics. 2-4.
    
    Washington -- NUMBERS -- For all its apparent precision, the federal
budget that was sent to Congress Monday is of relatively little use
to those who want to know how spending, revenue and the deficit will
actually rurn out. Graphic. 2-5.
    
    New York -- DEBT-II -- Last year, the financial community worried
about what would happen if some Latin American country refused to pay
back its debt to foreign banks. But, in effect, that has happened --
with little apparent fuss. Graphic. 2-5.
    
    Los Angeles -- FRAUD -- Kent B. Rogers responds to charged by Texas
insurance officials that he was part of a conspiracy to sell
mortgage-backed securities based on fraudulent loan transactions. By
Thomas Hayes.
    
THE NEW YORK TIMES PICTURE SERVICE
    
nyt-02-05-85 1218est
n031  0922  05 Feb 85
BC-NYT-ADVISORY-PICTURES
    Editors-Picture Service Subscribers:
    The following art is en route by mail:
    
    Paris -- FASHIONS -- Wrapup of couture collections. 2-4. Photos.
     New York--STARWARS--Defenders and detractors may fight over the
feasibility of President Reagan's ''star wars'' proposal, Congress
may blanch over its vast budgetary implications, and governments may
engage in wary diplomacy over its futuristic goals. But at
laboratories around the country there is little hesitancy as
thousands of scientists push technology to the limit in what is being
envisioned as the biggest research project of all time.
Photo-graphics. 2-4.
    
    Los Angeles -- FRAUD -- Kent B. Rogers responds to charged by Texas
insurance officials that he was part of a conspiracy to sell
mortgage-backed securities based on fraudulent loan transactions.
Photo. 2-5.
    
THE NEW YORK TIMES PICTURE SERVICE
    
nyt-02-05-85 1221est
n032  0926  05 Feb 85
BC-SAFRICA Addatend
NYT CROSSROADS: some salaries.
    But the visit seemed also to show other intricacies and
considerations. To the eyes of Bezuidenhout, Khayelitsha is evidently
a vast improvement on Crossroads, despite the distance from town,
reflecting what some South African scholars say they believe is a
government strategy to create an elite of urbanized and contented
black people who will be incorporated into a system designed to
perpetuate white hegemony by ceding limited political and economic
rights to them.
    That, too, would once have been heresy in the canons of traditional
apartheid. But, since then, scholars and industrialists have argued,
the growth of the black population has outpaced that of the whites,
and the needs of the economy dictate the presence of a permanent
black work force in white South Africa that must be placated by some
privileges.
    Government officials say, however, that such modifications and fine
tunings of the notions of racial separation are not designed to lead
to the enfrachisement of the 23-million-strong black majority that
makes up 73 percent of the population.
    So, while Bezuidenhout says he sees Khayelitsha as a place to which
the people of Crossroads alone will be transplanted, possibly
starting on a big scale in March, officials say the government view
is that all black people around Cape Town, including those in settled
townships, should be moved there.
    In a way, Khayelitsha demonstrates the inexorable will to translate
policy into action that typifies other resettlement areas in South
Africa.
    A year ago, there were but 100 tin shacks on the flattened, shifting
sands of Khayelitsha. By March, Rault said, there will be 5,000
two-room homes, as well as schools, clinics, stores, football fields
and other amenities. So far, he said, 60 million to 70 million rand -
around $35 million - have been spent there.
    Ultimately, Bezuidenhout said, the cost could be 700 million rand by
the year 2,000 - a figure that displays as much the costs of
apartheid to a beleagured economy as the long range of official
planning and paternalism.
    ''We want,'' Bezuidenhout said, ''to give people the opportunity to
live worthwhile lives.''
    
nyt-02-05-85 1226est
n033  0934  05 Feb 85
BC-ADVISORY-newhouse-opener
    Good afternoon from the NEWHOUSE NEWS SERVICE.
    This is your opening schedule of stories. Others will follow,
including a complete wrapup.
    If you have any problems or questions, please contact the Newhouse
News Service at 202-383-7800.
    
    
TUESDAY, FEBRUARY 5, 1985
    
    
WASHINGTON
    
    REAGAN-SCRAMBLE (Benson - Newhouse) As President Reagan celebrates
his 74th birthday and delivers his State of the Union message to
Congress, White House aides are scrambling in three directions at
once: selling a controversial budget to a defiant Congress, mapping
strategy for arms talks with the Soviets, and reorganizing the
president's staff. From Washington. About 800.
    
    BURNOUT (Young - Newhouse) Job burnout isn't something that remains
at work. Burnouts bring their anger and frustrations home, with
unhappy and sometimes devastating results for their families. Is
burnout a contributor to teen suicides? From Washington. For weekend
use. About 1,000.
    
    DEFENSE-CUTS (Wood - Newhouse) The question facing Congress and
embattled Defense Secretary Weinberger this week is not whether
Congress can cut the Pentagon's budget, but whether it can do so
wisely. A growing number of defense officials and some congressmen
believe it cannot. From Washington. About 800.
    
    SPERMICIDE (Grande - Newhouse) Hundreds of thousands of women get
pregnant while using a contraceptive jelly that is supposed to kill
sperm. The case of one whose daughter was born with major birth
defects is sending shock waves through the scientific community. From
Washington. About 900.
    
    
DOMESTIC
    
    BERGMANN (Myers - Newhouse) Philosophy Professor Frithjof Bergmann
has what might seem a preposterous idea - reducing Americans'
workyear to only six months on the job. But auto company executives,
college presidents and union leaders have been listening to Bergmann
carefully of late. From Ann Arbor, Mich. About 900.
    
    PROFIT-SHARE (Espo - Newhouse) United Auto Workers union leaders say
General Motors employees are angry about lower-than-expected profit
sharing payments in the face of record earnings. From Flint, Mich.
About 500.
    
    
ENTERTAINMENT
    
    REVIEW-''WITNESS'' (Freedman - Newhouse) ''Witness,'' starring
Harrison Ford, is a beautifully observant, warmly felt tribute to a
simpler way of life by Australian director Peter Weir. Undated. Film
review, for use when ''Witness'' opens at local theaters. About 500.
    
    RHODEN ( Reeves - Newhouse) Sculptor John Rhoden, who has roamed the
world making art, returns to Birmingham, Ala., for the first
exhibition of his work in his home town. From Birmingham, Ala. About
900.
    
    
LIFESTYLE
    
    WORDS (unsigned - Newhouse) The ''gas goblin'' bread ... Whatever
happened to the Roman months Quintilis and Sextilus? ... The origins
of ''mediocre'' and ''Appalachians.'' Undated. Take Our Word for It
column. About 700.
    
    CONVERSATIONS (Wilson - Newhouse) The literary interview can get
rather rough, says Charles Ruas, author of ''Conversations With
American Writers'' - as when Truman Capote broke Humphrey Bogart's
elbow. Undated. About 600.
    
    
RB END
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1233est
n034  0943  05 Feb 85
BC-REVIEW-''WITNESS''
(Newhouse 001)
Film review, for use when ''Witness'' opens at local theaters
By RICHARD FREEDMAN
Newhouse News Service
    (UNDATED) Few things are as inherently dramatic as the clash of
divergent cultures, a fact successfully exploited by ''Witness,''
which pits the conservative Amish farmers of Lancaster County, Pa.,
against tough Philadelphia cop Harrison Ford.
    Not the least of the film's many pleasures is watching Ford playing
a real character, instead of the Han Solo of the ''Star Wars'' movies
or the Indiana Jones of the ''Raiders of the Lost Ark'' adventures.
    As narcotics detective John Book, who accidentally uncovers
corruption high in his own department and nearly gets killed for his
pains, Ford finally has a role that requires more of him than just
looking surly and talking tough.
    The accident comes when an eight-year-old Amish boy inadvertently
witnesses the brutal slaying of a cop in the men's room of a
Philadelpia railroad station. The boy is there with his recently
widowed mother, Rachel (Kelly McGillis of ''Reuben, Reuben'') en
route to Baltimore, when he sees a narcotics plainclothesman (Danny
Glover of ''Places in the Heart'') kill a fellow officer.
    As a material witness, the boy is obviously valuable to Capt. Book,
but Rachel doesn't want to become involved in any way with the
sinful, violent affairs of the outside world.
    After all the Amish, who are more comfortable speaking German than
English, and are sensible enough to disdain such modern
''conveniences'' as telephones, television and cars, are still trying
to live an 18th-century rural life just 60 or so miles from
20th-century Philadelpia.
    When the gravely wounded Book has to flee for his own life, he
returns Rachel and her son to her farm, deep in the countryside.
There he slowly recovers and falls in love with Rachel, who is being
shyly and decorously courted by an Amish farmer (former Bolshoi
Ballet star Alexander Godunov).
    In the course of time, Book learns to milk cows at 4:30 a.m., to
participate in a communal barn raising, to wear the austere,
buttonless Amish clothing, and not to look too surprised when grace
is said before eating a mere hot dog.
    While he has the proper reaction to his fellow ''English'' (really
American) tourists, who drive into Amish country in the forlorn hope
of recapturing their more innocent past, but merely succeed in making
vulgar nuisances of themselves, he also discovers that Rachel could
be ''shunned'' - socially quarantined - by the community if her
growing love for him is discovered.
    And when violence descends on them from the corrupt cops Book had
uncovered, he must somehow counter it with the dubious aid of the
deeply pacifist people he's trying to protect.
    All this makes for fascinating viewing under the direction of
Australian Peter Weir (''The Year of Living Dangerously''), whose
first American movie this is.
    Since most of ''Witness'' is set in the Amish country (it only lacks
a score by Aaron Copland to capture the feeling completely), it runs
the risk of bogging down into a sociological documentary.
    But viewers expecting an urban cop flick will be amply rewarded by
the violence framing this pastoral romance at beginning and end, and
the rest of us are treated to a good look at a unique way of life.
    X X X
    FILM CLIP:
    ''WITNESS.'' Tough Philadelphia narcotics cop Harrison Ford finds
himself deep in peaceful Amish country courting the beautiful Kelly
McGillis while recovering from wounds inflicted by corrupt fellow
officers. A beautifully observant, warmly felt tribute to a simpler
way of life by Australian director Peter Weir (''The Year of Living
Dangerously''). Rated R. Three stars.
JM END FREEDMAN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1242est
n035  0951  05 Feb 85
BC-ON-LANGUAGE ADV10 2takes
FOR RELEASE Sunday, Feb. 10
Eds. Boldface words are italics.
By WILLIAM SAFIRE
c.1985 N.Y. Times News Service
    
    Vigilante
    Is calling someone a vigilante an insult or a
compliment? Is the philosophy of the vigilante called vigilantism
or vigilante-ism?
    These questions are posed by the issue raised in the New York subway
shooting of four teen-agers by Bernhard H. Goetz, who felt menaced
when accosted by them. His act was hailed by many people who feel
threatened by hoodlums and was denounced by many who adhere to the
rule of law even when it falls short. Goetz was indicted by a grand
jury for criminal possession of a gun; only the linguistic case will
be considered in this space.
    Vigilante is a noun in English that comes from the
Spanish noun for watchman; the Spanish adjective vigilante
means ''watchful, wide-awake,'' same as the English adjective
vigilant.
The origin of the English noun is in the Vigilance Committees
organized in the South in the 1820s and 30s to intimidate blacks and
abolitionists. ''The slave States,'' said the abolition leader
William Lloyd Garrison in 1835, ''... have organized Vigilance
Committees and Lynch Clubs.'' The assumption of control of law by
citizens not empowered by law was applied more generally as well:
''The prevalence of crime in San Francisco,'' wrote The Whig Almanac
in 1851, ''led to the formation of a voluntary association ... called
the Vigilance Committee.''
    At first, these committees - their members were called vigilantes,
starting just after the Civil War -
were usually considered praiseworthy. Abolitionists called some of
their own Underground Railroad organizations by that name, refusing
to concede the word to their opponents; the Republican clubs formed
to support Lincoln were called ''Wide-Awakes.'' After the war, as the
nation expanded westward, ''vigilance committee'' was the name given
to the citizenry that combined to combat lawlessness before the law
arrived, or that took charge when the lawmen failed.
    But from the start, another meaning grew. ''We hate what are called
vigilant men; they are a set of suspicious, mean spirited mortals,
that dislike fun,'' wrote The Missouri Intelligencer in 1821.
Abolitionists equated vigilance with lynching: ''As gross a violation
of justice,'' wrote Horace Greeley's New York Tribune in 1858, ''as
vigilance committee or lynching mob was ever guilty of.''
    Thus, the word comes into modern times with competing senses: good
(providing law where there is none) and bad (taking the law into your
own hands). When used today in a historical sense, the word looks
back at the frontier's rough justice, rather than at the South's
repression of blacks, and is usually a compliment. But when applied
to modern-day activities, the word vigilante - and
especially the -ism that grows out of it - is usually
used to suggest that outdated and unnecessary methods are being
employed, and is pejorative.
    On National Public Radio, most newscasters say vigilantism,
though I've heard several say vigilante-ism; NBC and CBS
agree on vigilantism. Which is correct?
    I prefer vigilante-ism, pronouncing the final e
in vigilante.
This -ism does not refer merely to ''being vigilant'';
it has to do with ''being a vigilante.'' Because the -ism flows
from the noun vigilante
rather than the adjective vigilant, we should logically
say vigilante-
ism.
    You think it looks awkward with the hyphen and is hard to say? If
you prefer vigilantism, then maybe you would
like McCarthism. Of course not; it's McCarthyism
and vigilante-ism.
(Next time I hear an announcer drop the e, I'm gonna let
him have it.)
    (more)
    
nyt-02-05-85 1250est
n036  0958  05 Feb 85
BC-ON-LANGUAGE ADV10 1stadd
NYT UNDATED: have it.)
(For release Sunday, Feb. 10)
    
    Good Night, Irenic
    
    The Harvard Divinity School is searching for a scholar to fill an
endowed chair for the study of Judaism. The likeliest choice for the
post was Dr. Jacob Neusner, a Brown University professor and
co-director of its renowned Program in Judaic Studies.
    That was before Neusner saw that one of the qualifications specified
for the position was ''an irenic personality.'' Irenic means
''peaceful,'' with additional
connotations of ''calm, serene, undisturbed''; Irene was the Greek
goddess of peace, parallel to the Roman Pax.
    That adjective, as all who know him will attest, does not describe
the iconoclastic Jack Neusner. In a letter asking that his name be
removed from further consideration, he wrote: ''My hero has always
been Jeremiah and, alas, he too never turned out to be ... irenic.''
The prolific Talmudic scholar must also have been aware of the
theological sense of irenics, ''the doctrine of
promoting peace among contentious Christian churches.''
    In an era of arms-control talk, with peace-loving a
word the Communists have made their own, you might think we would see
more of irenic. Careful how you use it, though
- as they have learned at Harvard Divinity School, it can trigger a
jeremiad (which the dictionaries still define as ''a long tale of
woe,'' but has gained the sense of ''an irate blast of complaint'').
    
    Yes, the World Is Lit
    
    Students of oratory were interested in President Reagan's use of yes
in his Second Inaugural Address. Not
since Molly Bloom, in James Joyce's ''Ulysses,'' punctuated her
stream of consciousness with yes to register passion has this
technique been used so variously.
    When the president puts yes before a word, it can mean
''even,'' as in ''I remember a time when people of different race,
creed or ethnic origin found hatred and prejudice installed in social
custom and, yes, in law.''
    Or it can mean ''lastly,'' as after a series of ''when'' clauses, he
concluded with ''And, yes, the years when
America ... turned the tide of history. . . .''
    Or it can be ''the defiant yes,'' a characteristic of Reagan's
style, often accompanied by a tightening of the mouth and a ducking
of the head. It uses ''yes'' to mean ''and I know some of you won't
like this, but I'm going to say it anyway.'' Example: ''A society ...
where the old and infirm are cared for, the young and, yes,
the unborn protected. ...''
    Those who search for literary allusions in presidential speeches hit
pay dirt in his peroration: ''My friends, we live in a world that's
lit by lightning.''
    Henry Hanson of Chicago magazine promptly turned to his copy of
Tennessee Williams's 1944 play ''The Glass Menagerie'' and the
memorable ''I didn't go to the moon'' curtain speech, in which Tom
tells his crippled sister, Laura, who believes in the magic of
candlelight on little glass animals, that he has been searching for
''anything that can blow your candles out! ... for nowadays the world
is lit by lightning.''
    Did the president, or any of his writers, know of this allusion? Did
he mean, as Williams's character did, to contrast gentle candlelight
with fierce lightning? That is for the orator to know and for us to
guess.
    
nyt-02-05-85 1257est
n037  1003  05 Feb 85
BC-NYT-BUDGET-05-LIVING
Attention Lifestyle Editors:
    
    We will move the following items from The New York Times Living
Section of Wednesday, Feb. 6:
    
    New York -- ONEPOT -- For working people with time-pressed lives,
probably the most sensible meals to make are those that can be
prepared in an hour or so (excluding cooking time) on a weekend
afternoon. They also should be the kind of foods that keep well in
the refrigerator or freezer for later consumption and that require
the least number of pots and pans. Winter is the season that calls
for this kind of cooking. So-called ''one-pot'' meals fill all the
above criteria. By Bryan Miller.
    
    New York -- WINE-TALK -- Wine for the one-pot meal. By Frank Prial.
    
    New York -- PERSONAL-HEALTH -- American parents spend millions of
dollars a year on corrective shoes and orthopedic devices for their
children's feet. Most of these items are of little or no value,
according to medical experts, because the majority of the children
would naturally outgrow their problems. By Jane Brody.
    
    New York -- INTERMARRY -- Under a flower-bedecked wedding canopy one
sunny day last August, a rabbi wearing a yarmulke and a priest in a
clerical collar joined in marriage Jodi Daynard and Mark Polizzotti.
The ceremony was anything but traditional, even though it drew on
both Jewish and Roman Catholic traditions. Blessings were offered in
Hebrew and in English, and there was an exchange of rings and vows.
It ended with the bridegroom smashing a glass underfoot. The mixed
wedding ceremony is just one way in which people are coping with an
increasingly common occurrence: marriage to someone of another faith.
By Ari Goldman.
    
    New York -- 60-MINUTE-GOURMET -- Sauerkraut With Cider and Pork. By
Pierre Franey.
    
    New York -- KITCHEN-EQUIPMENT -- Kitchen shears, et al. By Pierre
Franey.
    
    Undated -- CLAIBORNE-Q&A -- Q&A from the world of food. By Craig
Claiborne.
    
nyt-02-05-85 1302est
n038  1014  05 Feb 85
BC-WORDS
(Newhouse 002)
Take Our Word for It column
(Note to editors: Take Our Word for It is prepared by the editors of
Merriam-Webster Inc., publishers of Webster's Ninth New Collegiate
Dictionary, based on questions received by Merriam-Webster. We
suggest that readers' questions be sent to your newspaper and then
forwarded to Ms. Pam Silva, Merriam-Webster Inc., 47 Federal St.,
P.O. Box 281, Springfield, Mass. 01101. A suggested shirttail is
appended below.)
Newhouse News Service
    (UNDATED) Dear Editor: I love pumpernickel bread. For a long time I
have repeated the joke that with today's food prices the bread should
be known as ''pumperdime.'' Anyway, how did pumpernickel bread get
its name? - S.G., Indiana.
    Dear S.G.: No one knows for certain how ''pumpernickel'' got its
name. According to our research, the most plausible explanation is
that the word was first used in Germany to describe a bread that was
reputed to be indigestible. ''Pumpernickel'' can be loosely
translated as ''gas goblin.''
    Another story of the origin of ''pumpernickel'' is from the French.
When a French soldier (often said to be Napoleon) who was in Germany
was offered a piece of local bread, he refused and gave it to his
horse Nicole, saying the bread was ''bon pour Nicole'' (good for
Nicole). This popular little story is false, but people like it
anyway.
    X X X
    Dear Editor: In a book I read recently, a character in the novel was
said to be ''castigated'' but wasn't actually present. How is that
possible? - H.Q., California.
    Dear H.Q.: The definition of ''castigate'' as it appears in
Webster's Ninth New Collegiate Dictionary reads ''to subject to
severe punishment, reproof or criticism.'' While someone can voice
criticism of another directly to that person, one can also express
criticism about another to a third party. It is common to be
criticized behind one's back. Therefore, one can castigate a person
who is not present. A check of our citation file shows that castigate
now most often applies to severe criticism.
    X X X
    Dear Editor: I studied Latin in school years ago, yet I can't figure
out how we got some of the names of the months. Can you help with the
origins of these names? - K.J., New York.
    Dear K.J.: The names of the months can be traced back to Roman
times. The early Romans had a 10-month calendar and named their
months: Martius (after the god of war, Mars), Aprilis (either after
the Greek goddess Aphrodite, or from ''aperire,'' Latin for ''to
open,'' referring to buds), Maius (from the goddess Maia), Junius
(possibly from the goddess Juno), Quintilis (the fifth month),
Sextilus (the sixth month), September (the seventh month), October
(the eighth month), November (the ninth month), and December (the
10th month).
    Later, the months Januarius (after the god Janus) and Februarius
(from the feast of sacrifices) were added to the year.
    During the reign of Julius Caesar in 45 B.C., a reform was
undertaken to have the calendar coincide with the seasons. In honor
of Julius Caesar's reform, the month of Quintilis was renamed July.
About 38 years later, the emperor Augustus, apparently not to be
outdone, changed the month of Sextilis to honor himself.
    X X X
    Dear Editor: ''Mediocre'' is a word that I use quite often. It seems
as though everything in my life is ''mediocre'' (my health, my job,
my finances). What is the origin and exact meaning of my favorite
word? - T.C., New Mexico.
    Dear T.C.: Something that is ''mediocre'' is of moderate or low
quality. It is more elevated than the base, or common, but it is
equally distant from the summit of quality. ''Mediocre,'' which came
into Middle English by way of Middle French, derives from the Latin
word ''mediocris.'' ''Mediocris'' literally means ''halfway up a
mountain'' and is a compound of ''medi'' (''half'') and ''ocris''
(''stony mountain''). The earliest recorded use of ''mediocre'' in
English, according to Webster's Ninth New Collegiate Dictionary,
occurred in 1586.
    X X X
    Dear Editor: I am planning my next vacation - hiking in the
Appalachian Mountains. In all the guide books and material I have
read on my next vacation, I have not found what ''Appalachian''
means. Can you help? - H.N., Maine.
    Dear H.N.: The Appalachian Mountains were named by Spanish explorers
under the leadership of Hernando de Soto. The name is probably
derived from ''Apalachee,'' the name of an Indian tribe that was
living in what is now Florida. The meaning of ''Apalachee'' is
uncertain, but some believe it to have meant either ''people on the
other side'' or ''helpers.''
    X X X
    (Editor's note: Take Our Word for It is prepared by the editors of
Merriam-Webster Inc., publishers of Webster's Ninth New Collegiate
Dictionary. Readers' questions are welcome and should be mailed to
Take Our Word for It, in care of this newspaper.)
RB END
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1314est
n039  1027  05 Feb 85
BC-FRAUD
(ART EN ROUTE TO PICTURE CLIENTS)
By THOMAS C. HAYES
c.1985 N.Y. Times News Service
    LOS ANGELES - ''I've never burned anybody,'' said Kent B. Rogers.
    Not everyone agrees. Texas insurance officials, in a suit brought
last month in Austin, named Rogers as one of a pair of leaders in a
conspiracy to sell mortgage-backed securities based on fraudulent
loan transactions that apparently ensnarled the BankAmerica Corp.
    Rogers, a broad-shouldered, heavyset Detroit native who has run into
trouble with the law before in southern California, is continuing to
operate his development company, the West Pac Corp., from a suburban,
green-carpeted office in Orange, Calif.
    In a 90-minute interview, he denied that he had ever played a role
in any fraud. ''It's funny, but if there's a bank being robbed down
the street, I always seem to be the one walking by on the outside,''
he said with a shrug.
    Rogers, now 46 years old, was convicted in 1982 of bankruptcy fraud
in his effort to hide his ownership of a 2,900-acre ranch in Orange
County from creditors of his Global Western Development Co.
    His appeal to the U.S. Supreme Court was rejected, and his complaint
that an assistant U.S. district attorney had withheld important
evidence in the case was disallowed by the Federal District Court in
Los Angeles. While the U.S. Court of Appeals for the Ninth Circuit,
in San Francisco, considers Rogers's appeal of that decision, his
six-month sentence remains in abeyance.
    David Feldman, the other man charged with Rogers in the
mortgage-securities conspiracy, was convicted of fraud in 1982 on a
different charge. He is in a federal prison in California and is
expected to be released in April.
    Rogers, speaking casually and often punctuating his remarks with
profanity, said he was a customer, not an owner,of
the Pacific American Insurance Co. when it ran into financial trouble
in 1982. Regulators say Pacific American, a Delaware company that
collapsed last year, is at the heart of the scheme.
    Rogers said he lent Pacific American $1 million, then $3 million,
before finding that the company had several million dollars in
unreported claims. ''They were paying us interest, but it was really
from our own money,'' he said with a laugh. ''You know, that kind of
thing.''
    Its financial statements had been altered, he said, and he blamed
the Delaware Insurance Department for not uncovering the fraud.
    ''The Delaware department is doing everything they can to cover
their tracks,'' he asserted. ''They should have known the condition
of Pacific American and shut it down years ago.'' Insurance
Commissioner David Levinson of Delaware could not be reached for
comment today, a state holiday.
    Pacific American issued financial-guarantee bonds between August
1983 and January 1984 on overvalued mortgages on low-income
apartments mainly in Texas, Utah and California, according to a
lawsuit filed by BankAmerica last August in Salt Lake City.
    The mortgages, in turn, were packaged for sale to more than 25
thrift institutions by the National Mortgage Equity Corp., based at
Palos Verdes Estates, a 45-minute drive south of downtown Los Angeles.
    A Bank of America branch in Inglewood, Calif., near Los Angeles
International Airport and 20 minutes north of Palos Verdes Estates,
served as escrow agent for the securities sale, according to the
Texas suit, filed last month in Austin.
    The Bank of America agreed to pay the thrift institutions the face
value of the bonds after Pacific American was declared insolvent last
summer, according to thrift executives.
    National Mortgage Equity is run by George Ash, former president of
the Western Pacific Financial Corp., a defunct mortgage-brokering
concern that operated from an office next door to Rogers's office in
the Towne and Country Business Plaza, in Orange.
    The office, now vacant, still bears the company name. The entrance
to West Pac next door is not identified.
    The two men are co-defendants in the Texas suit. Rogers said
National Mortgage took over the Oxford Court apartments in Houston in
1983 after West Pac refused to make loan payments. The companies
clashed over which was responsible for making improvements at the
apartments so they could be sold as condominiums, according to Rogers.
    That project as well as two others once owned by West Pac are
padlocked, run-down and deserted, according to Anthony Harris, a
Texas official in charge of liquidating Pacific American's assets in
his state.
    Rogers said he was not an owner of Western Pacific Financial but
lent money to Ash when that company was organized. Nevertheless, he
subsequently sued Ash when ''some money came up missing at Western
Financial,'' he said.
    Rogers asserted that it was Ash, at National Mortgage, who
coordinated the loan sales through the Bank of America. ''We've never
dealt with Bank of America,'' he said. ''I haven't seen or spoken
with George Ash in well over a year.''
    Ash has refused to speak with reporters since early last week, a
receptionist at the company said.
    The Texas lawsuit charged that a Bank of America employee at the
Inglewood branch, Mary Brown, was the contact for Ash and Rogers at
the bank. Mrs. Brown could not be reached for comment.
     Rogers denied ever having met Mrs. Brown. ''I only talked to her
once on the telephone,'' he said. ''We were just checking an escrow
account.'' nn
    
nyt-02-05-85 1326est
n040  1030  05 Feb 85
BC-FRAUD Addatend
NYT LOS ANGELES: escrow account.''
    Before he organized Global Western as an apartment construction and
condominium conversion company in the early 1970s, Rogers worked as a
salesman of building products in the West for the Westinghouse Corp.
and later for Eagle-Picher Industries, he said.
    After Global Western's bankruptcy, he said, he built some
condominiums on Hawaii's island of Maui and later organized a small
tuna-fishing concern, the Pacific Seiner Co., in the Marshall
Islands, about 2,000 miles west of Hawaii. ''I had to go do something
else,'' he said. ''The press did a number on me in the Global
bankruptcy.''
    He gave up tuna fishing in 1981, he said, when the tuna market
turned bad and he lost two of five fishing boats - one in a storm and
the other blown up by mistake by a Japanese company dynamiting a
coral reef.
    He said he was forced to cut West Pac's employment to 110 from 400
last year because of the losses related to Pacific American. Still,
he said the company has $10 million in assets and a net worth of
about $6 million.
    It is developing a mobile home park in Hemet, west of Palm Springs,
Calif., he said, and a 120-lot, single-family-home subdivision an
hour north of Los Angeles, near Lancaster, Calif.
    He characterized the new charges against him as ''outlandish'' but
declined to name any associates who could corroborate his accounts.
Although the press reports are troubling, they have not hurt his
business, he said.
    ''The people who know me'' could tell the accusations were nonsense,
he said.
    
nyt-02-05-85 1329est
n041  1036  05 Feb 85
BC-KITCHEN EQUIPMENT
(LIVING)
(Art available on request)
By PIERRE FRANEY
c.1985 N.Y. Times News Service
    NEW YORK - Sturdy kitchen shears are a valuable tool in any cook's
kitchen. They come in handy for cutting through the joints of poultry
and game, removing fish fins, cutting through kitchen twine and, in a
pinch, clipping recipes from newspapers or removing itchy labels from
new shirts. One should not use regular household scissors for food
preparation; after a while, they will become dull and begin to smell
like a butcher's shop.
    The strong, multipurpose shears described here, made by Imperial
Knife, may be the best-designed on the market. The heavy, razor-sharp
blades cut through poultry and other foods easily; vinyl-coated
handles provide a comfortable grip and maximum leverage. Moreover,
the shears come apart at the center joint for easy cleaning, so that
food does not lodge in the fulcrum.
    When the shears are in the closed position, the center section of
the stem forms a bottle opener; when opened, the section of the stem
closest to the hand functions as a jar opener, with small serrations
that grip jar lids for extra leverage. There are also two notched
blades on the inside of the grips for cutting bulky twine or wire.
    The other items described here, wood-handled stainless steel whisks,
come from Williams-Sonoma. Besides being better looking than most
whisks, they are easier to grasp: The wood handles are softer on the
hand and, when wet, they don't tend to slip as much those with steel
handles.
    These whisks come in three sizes: 26 centimeters, 30 centimeters and
35 centimeters (only the two smaller sizes are shown here). The size
of the whisk one should purchase depends on the type of job. Small
whisks are good for mixing sauces in a shallow pan; medium-size
whisks are used for deeper saucepans; and the longest is for mixing
whipped cream or egg whites in a large bowl.
    Good whisks should not be too stiff. They should snap back, creating
air holes in whatever is being mixed.
    When buying any kind of wire whisk, look for a sturdy connection at
the base where the wire meets the handle. Some of the inexpensive
models are so flimsy that the wires pop off after a few uses.
    The Imperial kitchen shears are available at Macy's Herald Square
and at all branches of Hahnes in New Jersey. The shears sell for $22.
    The wood-handled wire whisks are available at most Williams-Sonoma
stores across the country. In the Stamford, Conn., shop, located at
the Stamford Town Center, 100 Greyrock Place, the whisks cost $6.50
plus $1.95 postage and handling for the small one, $8.25 plus $1.95
postage and handling for the medium-size one and $11.50 plus $2.95
postage and handling for the large one. The stores accept American
Express, MasterCard and Visa.
    
nyt-02-05-85 1336est
n042  1044  05 Feb 85
BC-CLAIBORNE-Q&A (UNDATED)
(LIVING)
By CRAIG CLAIBORNE
c.1985 N.Y. Times News Service
    Q. In preparing a favorite cake I cut the ingredients in half and
the baking time in half as well. In the end, the cake was only half
cooked. How can one tell whether a cake is done or not?
    A. There is a time-tested and reliable method: Take a straw from a
broom, for example, or a very slender wooden skewer and insert it
into the center of the cake. If the straw or skewer comes out clean,
without batter adhering to its sides, the cake is done. In theory,
the cake also should come away from the sides of the pan and be
golden or even darker brown on top.
    
     Q. I have seen a recommendation that one serve 'common crackers'
with clam chowder. What are common crackers?
    A. One manufacturer says that common crackers were invented by a
baker named Charles Cross in Montpelier, Vt., and that they date from
the early 1830s. A cookbook says they were invented by Artemus
Kennedy of Massachusetts in the 1700s.
    These hard crackers, which are made of whole-wheat flour, are
difficult to find today; I have not seen a recipe for them. However,
I have seen recipes calling for their use: A few old recipes call for
breaking common crackers into chowder before eating, and in Imogene
Wolcott's ''The New England Yankee Cook Book'' (Coward-McCann, 1939),
a recipe for cracker pudding lists common crackers as an ingredient.
    
     Q. I often use peppercorns in cooking, sometimes in soups that call
for whole peppercorns. Is the peppercorn's full flavor released if it
is used whole?
    A. No, the full flavor of peppercorns is released when they are
crushed or ground. Some chefs believe that a soup is more refined and
subtly flavored if whole peppercorns are used; I prefer to crush the
seeds.
    Certain dishes, such as pepper steak, call for a pronounced pepper
flavor and thus for the use of crushed (coarsely crushed for the
steaks) or ground peppercorns.
    
     Q. How did the strawberry and raspberry get their names?
    A. The names may have to do with their cultivation and appearance.
It has been said, for example, that strawberries sometimes are
cultivated under a bed of straw. Others insist that the name derives
from the strawberry plant's slender runners, which trail along the
ground and resemble straw. Several authorities on food relate the
raspberry to the Middle English word raspis, which was a kind of wine.
    
     Q. Many recipes call for an anise-flavored drink, such as anisette,
Pernod, Ricard and ouzo. Are these interchangeable?
    A. All these drinks are similar in taste, but their viscosity,
strength and other characteristics differ slightly. The spirits you
mention are made with either anise or licorice, which taste very much
the same; they all turn milky white or opalescent when mixed with
water.
    As a rule of thumb, you may substitute one for the other in a
recipe, but it is best to be authentic and to use what the particular
recipe specifies. For example, in a Greek dish whose recipe lists
ouzo as an ingredient, use ouzo. In making a French fish soup, I
would recommend Pernod or Ricard. Italian recipes will often specify
anisette.
    
    Readers are invited to send questions about food and cooking
techniques to Craig Claiborne, Food Editor, The New York Times, 229
West 43d Street, New York, N.Y. 10036. Unfortunately, unpublished
questions cannot be answered individually.
    
nyt-02-05-85 1343est
n043  1051  05 Feb 85
BC-CLUE
By ALJEAN HARMETZ
c. 1985 N.Y. Times news Service
    HOLLYWOOD - Miss Scarlet is planning to hit Mr. Boddy over the head
with the candlestick in the billiard room; Colonel Mustard is
preparing to knife him in the conservatory. These characters, from
the mystery board game Clue, will be coming to neighborhood movie
theaters next year. Clue, a successful board game for 37 years, is
about to become an $8 million motion picture.
    The film will be financed by Paramount and directed by Jonathan Lynn
from his own script. It will be an American debut for Lynn, an
English stage director who is best known as the author of a satirical
television series about the British Cabinet, ''Yes, Minister.''
    Players of Clue must figure out which one of six suspects has used
which one of six weapons to kill Mr. Boddy in which of the nine rooms
in his mansion. A game of deduction invented in Britain, Clue has
been licensed by Parker Brothers in the United States since 1962.
According to Parker Brothers, approximately 750,000 game boards are
sold each year.
    Debra Hill, producer of ''Halloween,'' started trying to turn the
favorite mystery characters of her childhood into a film in 1979.
''The big problem was turning a good idea into a real story,'' she
says.
    A dozen writers - among them the British mystery novelists P.D.
Jamesand Simon Raven and the playwrights Tom Stoppard
and Alan Ayckbourn - were approached. ''We gave them the characters,
the weapons and the rooms where the story had to take place,'' Miss
Hill says. ''They had to create the motives and the story.''
    Most of the famous writers - including Stephen Sondheim and Anthony
Perkins, who had written a playful mystery movie, ''The Last of
Sheila'' - didn't like the restriction of not being able to create
their own characters. The film will have one new major character -
the butler.
    ''What's a mystery without a butler?'' asks Miss Hill.
    Mr. Boddy's mansion, which will be built on the Paramount lot, will
also differ from the game board because scenes will take place in the
attic, the basement and two bedrooms. However, the murder will be
committed in one of the original nine rooms on the game board.
    According to Miss Hill, the tone of the movie will be ''funny but
scary,'' the time 1954, the place United States. And the mystery will
be played out in the two-hour span of the film.
    ''We won't withhold information from the audience,'' Miss Hill says.
''The audience can solve the mystery by sitting in their seats.''
    Ironically, the idea of ''Clue'' started at Paramount six years ago.
When Paramount eventually turned the idea down, Miss Hill took the
project to Guber-Peters Productions, which helped get development
money from Ned Tanen at Universal. When Tanen left his job as
president of Universal Pictures in 1982, ''Clue'' went into limbo.
Four months ago, Tanen became president of Paramount's motion-picture
division, and ''Clue'' came home to roost.
    
nyt-02-05-85 1350est
n044  1056  05 Feb 85
BC-NYT-BUDGET-05 Addsked
    Add N.Y. Times News Service schedule for AM's of Wednesday, Feb. 6:
    
    WASHINGTON
    REAGAN - White House staff changes see columnists Patrick Buchanan
and two other veteran political operatives named for high-level jobs;
themes in President Reagan's state of the union address. By Bernard
Weinraub.
    
    MEESE - Senate Judiciary Committee votes, 12-6, to approve Edwin
Meese's nomination as attorney general; Hodel and Herrington also
approved for Cabinet jobs. By Leslie Maitland Werner.
    
    BUDGET - Senate budget committee hears David Stockman on 1986
budget. By Jonathan Fuerbringer.
    
    DEFENSE - Defense Secretary Weinberger briefs House Armed Services
Committee; Senate hears testimony on Army programs. By Bill Keller.
    
    ZEALAND - Developments in U.S. policy on New Zealand bar to nuclear
vessels. By Bernard Gwertzman.
    
    INTERNATIONAL
    London - LIBYA - As a gesture of good will to Church of England,
Libya frees four Britons held since last May. By R.W. Apple Jr.
    
    Warsaw - POLAND - Defense and prosecution in secret agents trial
make closing arguments. By Michael Kaufman.
    
    Iquitos, Peru - POPE - Pope visits Peru's slums, denounces the
''macho''' ethic. By E.J. Dionne.
    
    SPORTS
    New York - FLUTIE - Quarterback Doug Flutie signs
multimillion-dollar contract to play for the New Jersey Generals of
the USFL. (Editors FYI: George Vecsey's column will be on the Flutie
signing.)
    
    FINANCIAL
    Washington - ECON - President submits Economic Message to Congress.
By Peter Kilborn.
    
    Washington - VOLCKER - Fed's Volcker to testify at Joint Economic
Committee. By Clyde Farnsworth.
    
    New York - PHILLIPS - Icahn makes $4 billion bid for Phillips
Petroleum. By Robert Cole.
    
    New York - TAX-IX - Part nine of Your Taxes series; today:
retirement accounts. By Gary Klott.
    
nyt-02-05-85 1355est
n045  1108  05 Feb 85
BC-SCIENCE-WATCH Undated,
(ScienceTimes)
c.1985 N.Y. Times News Service
    Psoriasis is a mysterious, troubling and sometimes severe disease
best known for the thick, scaly plaques that often erupt on the skin.
Many different treatments have been tried for the skin lesions
including sunlight, steroid hormone preparations and all manner of
creams and salves, but the underlying cause of the eruptions is
unknown and the effects of treatment are often disappointing.
    It would seem almost outrageous to suggest that a patient try a
Band-Aid; at least it did until Dr. Ronald N. Shore of Johns Hopkins
made a remarkable chance observation.
    ''Because this disorder is so often resistent to therapy, it was
rather startling to observe that a lesion resolved and stayed clear
after simply being covered with a Band-Aid,'' he wrote in a recent
letter to the New England Journal of Medicine.
    The doctor made the observation three weeks after taking a small
skin sample from the center of one plaque on a patient's elbow and
covering the cut with a Band-Aid. The patient left the bandage on for
three weeks.
    ''When the Band-Aid was removed, it was noted that the part of the
psoriatic plaque that had been covered by the adhesive portions of
the Band-Aid had cleared totally,'' Shore wrote. ''The part of the
plaque that had been covered by the pad remained unchanged. Because
of this impressive response, adhesive tape was applied as a treatment
to the remaining plaques on both elbows, and these lesions cleared
also.''
    Prompted by this effect, the doctor did some systematic research on
the phenomenon, using different kinds of tape and other coverings and
trying them for short and long periods.
    ''Clinical improvement of psoriatic lesions after the prolonged
application of tape is an interesting phenomenon with obvious
therapeutic potential,'' the doctor said. ''It will probably prove
most beneficial when combined with other therapies, since lesions in
only a minority of patients clear totally when it is used alone.''
    
    Physicists and geochemists at the Los Alamos National Laboratory in
New Mexico are using a new technique called a nuclear probe to study
elements in meteorite samples that hold clues about the formation of
the solar system.
    The scientists are using a Van de Graaf accelerator, or atom
smasher, to generate a million-electron-volt beam of protons, or
positively charged nuclear particles. The beam is projected onto
specimens, and X-rays are produced that characterize the distribution
and quantity of material in the specimens.
    Carl Maggiore, the physicist who designed the Los Alamos device,
said the nuclear probe is 100 times more sensitive than standard
electron probes, which generate beams of electrons, or negatively
charged particles.
    Maggiore said the technique, first developed in Britain a decade
ago, has been improved at Los Alamos. The researchers can now use the
nuclear probe to study a group of elements in meteorites called
''rare earths,'' which may provide information about such conditions
as temperature and heating and cooling rates under which minerals
solidified to form the planets.
    Rare earths deposited in trace amounts could not be detected with
the electron probe.
    Tim Benjamin, a geochemist who is working with Maggiore and two
other geochemists, Dr. Clarence Duffy and Dr. Pamela Rogers, said the
nuclear probe had applications in all scientific fields. He is
seeking to establish a ''user group'' of scientists in fields from
archeology to biology.
    Benjamin said the nuclear probe can be used on terrestrial samples
to analyze small concentrations of such economically important ores
as gold, chrome and cobalt.
    
    One of nature's most unusual organisms, the lichen, is helping a
Brigham Young University professor keep tabs on air pollution in two
National Parks.
    Lichens, essentially dual plants composed of both a fungus and an
alga living in a unique symbiotic relationship, grow primarily as a
moldlike adhesions on rocks, tree bark and soil. They range in colr
from dull gray to bright reds and yellows.
    Lichens derive almost all of their nutrients from the atmosphere.
They are hypersensitive to toxic substances in the air, especially
nitrous oxides, sulphur dioxide, heavy metals and other products of
fossil-fuel combustion, which can cause them to change color, slow
their growth or die, depending on the severity of pollution.
    In a research program financed by the National Park Service and the
Federal Bureau of Land Management, Dr. Larry St. Clair, a botanist,
has set up lichen monitoring systems in Zion National Park in
southwestern Utah and at the Navajo National Monument in northeastern
Arizona. By keeping track of the health and abundance of lichens, and
by using a newly devised laboratory test, he is able to assess
changes in air quality.
    St. Clair noted that lichens exposed to air pollution develop
weakened cell membranes and lose vital electrolytes. By collecting
different lichens found under varying pollution conditions and
putting them in water, and then measuring the differences in the
electrical conductivity of the water, he was able to determine
physiological changes in the plants.
    ''With this information, we feel we can give the Park Service a real
handle on future pollution impacts in national parks,'' St. Clair
said. ''We can nail down specific causes and tie down the cause and
effect relationship very tightly.''
    
nyt-02-05-85 1407est
n046  1118  05 Feb 85
BC-NUMBERS
(WashPage)
By ROBERT D. HERSHEY Jr.
c.1985 N.Y. Times News Service
    WASHINGTON - For all its apparent precision, with neat columns of
numbers, some of them refined to the decimal point for years as far
distant as 1990, the federal budget for the fiscal year 1986 that was
officially sent to Congress Monday is of relatively little use to
those who want to know such basics as how spending, revenue and the
deficit will actually turn out.
    Frequently, in fact, an administration's figures will prove almost
grotesquely wrong. When President Reagan presented his first budget
in early 1981, for example, the deficit for the next fiscal year was
put at $24.1 billion. When the 1982 fiscal year ended, the actual
deficit was $110.6 billion.
    But that was not a isolated case. In only five years of the past 16
has the margin of error on the deficit been less than 50 percent.
    There now seems to be fairly broad recognition that budgets, above
all, are statements of a president's political goals, many of which
have no chance of being legislated in Congress. Politics apart,
budget outcomes also depend on forecasts of what will happen to the
nation's economy.
    ''Probably the bulk of the error over time is due to errors in
economic forecasting,'' Rudolph G. Penner, head of the Congressional
Budget Office, once observed. Even policy makers, he said, are not
sufficiently aware of the critical role of the underlying economic
assumptions, which have often gone awry.
    For example, few if any economists foresaw the depth of the 1982
recession, which was the main reason revenue fell 12.7 percent, or
$90.1 billion, short of the initial forecast for that year.
    In the past 16 years, the average error for revenue has been 4.4
percent, while the average for outlays has been 3 percent. Even
relatively small errors in these, however, can have a huge effect on
the deficit, particularly when receipts and outlays move in opposite
directions.
    The deficit itself, as one banker puts it, is really an intersection
of two guesses: the forecast for receipts and the forecast for
outlays.
    Although the president's budget makers acknowledge this problem, and
even offer tables showing the sensitivity of basic figures to
economic change, nobody really knows what the economy will do.
Forecasters as a group have had a particularly dismal record in
recent years, even as they have made rapid gains with the aid of
computers to manipulate data.
    Recessions have the effect of both reducing the government's revenue
and raising its spending. Those thrown out of work, for example, pay
little or no income tax and often begin to draw unemployment
compensation. Booms, on the other hand, have the opposite effect, a
fact crucial to Reagan's argument that the country can largely
''grow'' its way out of deficits.
    A meaningful reading of the budget starts with the realization that
it is not an accounting statement so much as the expression of
political goals.
    And it is always biased on the side of optimism. ''It has to be
optimistic because it has to show things getting better because of
what the president wants,'' says Stanley E. Collender, a former
congressional aide who is director of federal budget policy for
Touche Ross & Co., the accounting firm.
    The CBO tries to remove undue presidential optimism by recalculating
the budget on the basis of different, frequently more conservative,
economic assumptions. This effort, however, stops short of trying to
predict whether Congress will adopt policy changes.
    Then there are the many problems in calculation not directly related
to the economic forecast. How many of the unemployed, for example,
will be eligible for unemployment benefits or welfare, and how many
of these will actually claim benefits? How fast will a military
contractor build a new bomber and bill the government for payments?
Will there be a drought or other natural disaster that will require
increased payments to farmers?
    Of the economic assumptions, perhaps none 'ave been more crucial
than the inflation rate, which is notoriously hard to predict. Its
sharp rise in the 1970s had the effect of pushing people into
progressively higher tax brackets. This revenue bonanza was removed
Jan. 1 with automatic adjustment of tax brackets to offset wage
inflation.
    Nevertheless, inflation creates budget uncertainties because many
federal benefits, including Social Security, are keyed to it and
because it has a strong effect on interest rates and the government's
debt burden, the budget item now showing the fastest rate of growth.
    Moreover, the unreliability of nearly every budget number increases
dramatically as the forecasters try to peer further into the future.
    Thus, the budget, especially since Reagan came to office, says
Collender, is probably best regarded as little more than an ''opening
political salvo.''
    
nyt-02-05-85 1417est
n047  1119  05 Feb 85
BC-CREDIT Correction
    
    Editors: The following correction appears in Tuesday's editions of
The New York Times and refers to New York CREDIT, sent Sunday for
Monday release:
    
    An article in Business Day yesterday about the credit markets
incorrectly described Duff & Phelps. The firm remains independent;
plans for the Security Pacific Corporation to acquire it were
canceled last month.
    
    N.Y. Times News Service
    
nyt-02-05-85 1419est
n048  1128  05 Feb 85
BC-60-MINUTE-GOURMET
(LIVING)
By PIERRE FRANEY
c.1985 N.Y. Times News Service
    NEW YORK - When thinking of winter feasting, what comes to mind is a
dish from winters past - winters of a childhood spent in Burgundy,
although in France this dish is more closely associated with the
regions of Alsace and Lorraine. The dish is choucroute garnie, as the
French call it, or braised sauerkraut with sausage and pork.
    I know of many restaurants that specialize in this dish; indeed,
when visiting Paris during the cold months, I almost invariably book
a table at the Brasserie Lipp to enjoy the choucroute, which is its
specialty. But I still prefer to make it at home, since I can order
ingredients, mainly the sausages, to suit my taste.
    Many saukerkraut recipes call for cooking over a long period. I have
found, however, that a tasty platter can be prepared in about an
hour, using a generous amount of fresh apple cider and thinly sliced
apples. The sweetness of these two ingredients makes for a nice
balance with the acidity of the sour cabbage.
    Aficionados of sauerkraut disagree about whether the shredded
cabbage should be rinsed well before cooking. I prefer to rinse it,
and then, by squeezing, to extract most of the rinsing water. A
general rule is that if the sauerkraut is salty and not fresh from
the barrel, it should be rinsed; if it is fresh, rinsing is not
necessary.
    Juniper berries, which are used in many winter foods, including
game, are a traditional ingredient for cooking sauerkraut. They are
not essential, but they add a little character to the dish. My
favorite platter of sauerkraut is made with boulettes de porc, small
round pork meatballs that are easy to prepare.
    
Sauerkraut With Cider and Pork
    1 porkette (cooked smoked shoulder butt), 1  1/2 pounds
    2 green apples, about  3/4 pound
    3 Idaho potatoes, about 1  1/4 pounds
     1/4 cup lard or solid white shortening
    1  1/2 cups coarsely chopped onions
    1 teaspoon finely minced garlic
    1 teaspoon caraway seeds
    2 pounds sauerkraut
    6 juniper berries
    1 bay leaf
     3/4 cup apple cider
     3/4 cup chicken broth
    8 boulettes de porc (see recipe)
    1 link kielbasa or Polish sausage, about 1  1/4 pounds.
    1. Cut and pull away the cloth covering of the pork butt.
    2. Remove the stems from the apples. Peel and core the apples, and
cut them into quarters. Cut the quarters crosswise into thin pieces.
There should be about 2  1/2 cups.
    3. Peel the potatoes, and cut each in half crosswise. Let the
potatoes stand in water to cover until ready to be used.
    4. Heat the lard in a large, heavy casserole, and add the onions and
garlic. Cook, stirring, until the onions are wilted.
    5. Add the caraway seeds and cook briefly. Add the apples, stirring.
    6. Rinse and drain the sauerkraut. Squeeze it to extract excess
liquid. Add the sauerkraut and juniper berries to the casserole.
    7. Place the pork butt in the center of the sauerkraut. Add the bay
leaf, cider and broth. Cover closely. Bring to a boil, and cook 15
minutes.
    8. Arrange the boulettes of pork and kielbasa over the sauerkraut.
Drain the potatoes and add them. Cover closely and continue cooking
20 minutes.
    9. Slice the meats, and serve with the pork balls and sauerkraut.
    Yield: 6 to 8 servings.
    
Boulettes de Porc (Pork meatballs)
    1 pound lean ground pork
    1 slice white bread, broken into pieces
     1/4 cup milk
    one-third cup finely chopped onion
     1/2 teaspoon finely minced garlic
     1/4 cup finely chopped parsley
     1/2 teaspoon ground cumin
     1/2 teaspoon ground coriander
    Salt to taste if desired
    Freshly ground pepper to taste.
    1. Put pork in a mixing bowl and set aside.
    2. In another bowl, combine bread pieces and milk. Blend thoroughly
with the fingers, then add to the pork, along with the onion, garlic,
parsley, cumin, coriander, salt and pepper. Blend thoroughly with the
fingers.
    3. Shape the mixture into 6 to 8 meatballs of about the same size.
    Yield: 6 to 8 meatballs.
    
nyt-02-05-85 1427est
n049  1137  05 Feb 85
BC-NICKNAMES
By STEVE LOHR
c.1985 N.Y. Times News Service
    MANILA - Pepsi, Sarsi, Coca, Peaches and Cherry Pie. It may sound
like the recipe for a stomachache, but those are the names of
Filipino celebrities.
    Pepsi Paloma, Sarsi Emanuel and Coca Nicolas are known,
understandably, as the ''soft-drink beauties,'' and they star in some
of the steamier local films. Peaches, or Peachie, Sacasas is a former
beauty queen turned actress, and Cherry Pie Villongco is a former top
fashion model.
    Unusual names and nicknames here are not confined to those with
commercial motivations. Joker Rroyo is no comedian. He is a lawyer
who defends political detainees.
    The president's son, Ferdinand E. Marcos Jr., who is the governor of
Ilocos Norte province, is known to everyone here as Bong Bong. One of
the most senior members of the Supreme Court, Claudio Teehankee, is
called Ding Dong.
    Grandmothers sometimes answer to the name Baby, while a couple of
captains of industry would be offended if they were not addressed as
Boy.
    The distinctive monikers sometimes unintentionally extend to
surnames. Probably the most widely known example outside of the
country is Jaime Cardinal Sin, the Archbishop of Manila. He is fond
of jesting that given his name, the Roman Catholic Church displayed
remarkable tolerance in allowing him to rise to its top Philippines
post.
    It is the prevalence, diversity and outright zaniness of the
nicknames here that rank them as a distinguishing national
characteristic. Nearly everyone has a nickname in the Philippines.
And the way they are used and offered, especially by the powerful,
can be of considerable importance.
    Being able to hail a prominent politician or corporate magnate by
that person's nickname is a clear sign that you are somebody with
influence.
    There are only about a dozen people who call President Ferdinand E.
Marcos by his nickname, Andy, to his face, says Eleuterio (Adrian)
Cristobal, a presidential spokesman and speechwriter.
    The honored list includes the first lady, Imelda, and a few other
close family members; a handful of lifelong friends, and a couple of
trusted associates, such as Roberto Benedicto, who controls much of
the sugar industry, thanks to a presidential decree.
    The most common explanation for the Filipino penchant for nicknames
is that the the country is a mix of three nickname-loving cultures:
Spanish, American and Filipino.
    Others say there has been a trend in recent years toward more
extreme - some say ridiculous - nicknames like Blinks and Booby.
    But Alejandro (Anding) Roces, a former secretary of education, says
that odd names are nothing new. He cites a volume by Father Pedro
Chirino, a 16th-century Jesuit social historian, who wrote that in
the Philippines naming a child was a mother's prerogative and subject
to her whim.
    Surprisingly few Filipinos can explain how they were tagged with
unusual nicknames.
    ''I never questioned why I was called Boo, because I just always
was,'' said Pedro Chanco 3d, an official in the Ministry of Energy.
    Some are baby names that stuck, while others seem to be merely
fashionable nicknames given to people much like proper names.
    Agapito (Butz) Aquino, the brother of the slain opposition leader
Benigno S. Aquino Jr., got his nickname indirectly from Time
magazine. He was an actor before becoming a political activist after
his brother's death. In the early 1970s, his nickname was Butch, but
movie producers thought there were too many Butches around.
    ''They were looking for an unusual screen name for me,'' Aquino
recalled. He said someone was reading a copy of Time that had an
article on Earl Butz, the former secretary of Agriculture.
    Butz is similar to Butch and, Aquino noted, it is unusual.
    
nyt-02-05-85 1436est
n050  1140  05 Feb 85
BC-BURNOUT 1stadd
(Newhouse 004)
Young - WASHINGTON X X X TV.''
    Freudenberger believes that burnout may contribute to the sharply
rising teen-age suicide rate. ''The youngster that commits suicide
may be the one that the family doesn't pick up as depressed because
the family is not relating,'' he says.
    Few people seek help specifically for burnout.
    ''People who call us call because of the consequences of burnout,''
Levy says. ''Their job performance is down. They feel depressed.
Their marriage is going to hell. They don't identify burnout as the
culprit.''
    Frequently, it is not the burnout but a member of the family who
first seeks professional help.
    No single treatment technique works for all burnout cases. But
Freudenberger says focusing on the problems behind the burnout tends
to work best. And problems of depression, alcoholism or drug abuse
must be dealt with separately. John enrolled in Alcoholics Anonymous
in conjunction with his therapy for burnout.
    Family therapy can help reunite the burnout and his or her family.
But putting the pieces back together can be a long process. For John
and his family, it took a year of therapy to blur if not erase the
scars of his behavior.
    ''The impact of burnout on a family is profound - on every member of
the family,'' Freudenberger says.
JM END YOUNG
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1439est
n051  1150  05 Feb 85
BC-BRIEFING
(WashPage)
By PHIL GAILEY
c.1985 N.Y. Times News Service
    WASHINGTON - Vice President Bush, who is to leave later this month
on a visit to three African countries suffering from drought and
famine, has been frustrated in his effort to find a forum abroad for
a major speech concerning the administration's views on relief
efforts. The vice president is making the trip at the request of
President Reagan to observe operations in which food from the United
States is being distributed to some of the stricken nations.
    Originally Bush had hoped that the United Nations would convene a
conference on world hunger in Geneva to coincide with the completion
of his trip to Mali, Niger and the Sudan. That was his first choice
of a forum for the speech. But with no United Nations conference
scheduled, aides say Bush is likely to wait until he gets back to
Washington to make the speech.
    Ethiopia is not on Bush's itinerary, primarily because of the
difficulty in making arrangements with its Marxist government.
    
    On many a morning, just before sunrise, a man on a white horse can
be seen taking in the sights around Washington. He has been spotted
on Capitol Hill, along the Ellipse and even in Georgetown, a chic
enclave where the preferred morning exercise is jogging. This is no
masked man, but a homesick Californian, Interior Secretary William P.
Clark.
    Clark, who shares with Reagan a love of horse-back riding, made a
pleasant discovery when he left the White House, where he was
Reagan's national security adviser, to take the Interior post: His
new domain included not only bureaucrats but a few horses as well.
    Clark saddles up at the National Park Police stables in Rock Creek
Park. His horse of choice is the Lippizaner stallion that was a gift
to Reagan from the government of Austria. And he is usually
accompanied on his rides by a National Park Service policeman.
    Chatting about his horse-back adventures the other night at a
Washington party, Clark said his favorite site was the Supreme Court
and the Capitol as dawn breaks.
    After all these mornings of riding into a Washington sunrise, Clark,
who has announced his resignation and plans to resume life on his
California ranch, says he is looking forward to galloping off into
the sunset.
    
    Despite reports of its political demise, organized labor flexed its
muscle, or at least gave the appearance of doing so, in last week's
election of Democratic Party officers. Not only did it back a winner,
Paul G. Kirk Jr., in the race for chairman of the Democratic National
Committee, it also helped punish one of its political enemies.
    Labor allies on the national committee voted solidly to replace
Mayor Richard G. Hatcher of Gary, Ind., who had been endorsed for
re-election as deputy chairman by the party's black caucus, with
another black, Roland Burris, the state comptroller in Illinois. The
derailment of Hatcher provoked bitter feelings among blacks,
including Rep. Mickey Leland of Texas, who called Burris an ''Uncle
Tom.''
    Both Hatcher and Leland, according to one labor leader, made the
mistake of supporting an unsuccessful anti-Kirk move that challenged
the right of 25 at-large delegates to vote in the party election.
Organized labor representatives held 15 of the 25 seats, and when the
time came to vote on a vice chairman they threw their weight behind
Burris.
    
    Rep. Morris Udall of Arizona is still the sentimental favorite of
liberal Democrats who rallied behind his presidential bid in 1976. If
they had their way, Udall's likeness would be committed to bronze and
placed in the middle of Pennsylvania Avenue between the Capitol and
the White House.
    For now, anyway, his friends have settled for an oil portrait of the
tall, lanky lawmaker that is to be unveiled Wednesday at a ceremony
to be attended by congressional leaders and administration officials.
    Udall is chairman of the House Committee on Interior and Insular
Affairs, and his portrait, which was financed by private
contributions, will be hung in the committee's hearing room.
    The portrait was painted by Everett Raymond Kinstler, whose other
canvas subjects include former President Ford, John Wayne, James
Cagney and Katharine Hepburn.
    No doubt Udall, whose sense of humor is prized on both sides of the
political aisles in the House, will poke a little fun at the
portrait, the artist and himself.
    
nyt-02-05-85 1449est
n052  1201  05 Feb 85
BC-BURNOUT 2takes
(Newhouse 003)
For weekend use
By PATRICK YOUNG
Newhouse News Service
    WASHINGTON - John's job burnout began when the small computer
company where he worked in middle management was sold and his new
boss turned out to be cold, aloof and tyrannical. The close working
relationship he had enjoyed with senior executives ended, and he felt
angry and frustrated at being relegated to a job of no particular
importance.
    John became increasingly sullen and withdrawn at home. He began
drinking heavily and abused his wife and children. Then one day he
took a shotgun and threated to kill his entire family.
    Burnout, as experts have come to realize in recent years, isn't
something that remains in the workplace. It begins there, and may
remain confined there for a time. But most of its victims eventually
bring it home, with unhappy and sometimes devastating results for
themselves, their spouses and their children.
    Anthony, an aggressive, successful stockbroker, found himself
trapped by his high earnings and escalating demands for higher
production. He worked longer and longer hours, gained weight, smoked
more and began using cocaine to calm down. He demanded his wife put
their children to bed before he came home, and found constant fault
with her and his homelife. One night he went on a rampage, beat his
wife and destroyed furniture.
    ''Burnout is a process that impacts an individual on three levels:
behaviorally, physically and emotionally,'' says Herbert J.
Freudenberger, the New York psychologist who coined the term in 1970
and provided the examples used in this article. ''The process can
take weeks, months or years. In time, it is transmitted into the
home.''
    Based on his studies, Freudenberger estimates that 15 percent to 20
percent of white-collar workers suffer burnout at sometime, and that
it is a repetitive problem for 5 percent to 8 percent of them. Nor
are z4ue-collar workers and women immune. And with the growth of
two-career marriages, therapists are seeing two-burnout couples.
    A number of factors can contribute to job burnout. Among them: a
person's perception and reaction to stress that leads to a feeling of
frustration or being overburdened; no clear work role; poor
management policies; a company philosophy of ''survival of the
fittest''; no salary increase or the awareness that further
promotions are impossible; impending job transfer; and inadequate
direction and instructions from bosses.
    Sam was a banking executive who found his supervisor was lying to
him. But because he had less than a year before vesting in his
pension plan, Sam felt he could not immediately seek another job. The
frustration and rage he felt at work eventually went home with him.
    ''Burnout occurs when stress is not commensurate with
satisfaction,'' says psychologist Barry A. Farber of Columbia
University's Teachers College. ''The person feels unsuccessful. The
job doesn't seem worth the effort.''
    While the ill-effects of burnout on homelife are now well 5/8ltmented,
the reverse impact is not.
    ''We don't know enough about how the homelife affects job
attitudes,'' says Robert S. Levy of the Human Resources Group Inc., a
consulting firm that administers assistance programs for troubled
employees of 28 major corporations. ''Does a man develop burnout
syndrome if his homelife goes sour?''
    Job burnouts respond in two ways at home. A few become more devoted
to their families and look to home for the satisfaction missing in
their jobs. But what usually happens is that the anger and frustraton
of the job is carried home. Although burnout is different than
depresssion, depression may accompany burnout. Some burnouts become
alcoholics or drug abusers as well. They may verbally or physically
assault their families, or withdraw physically or psychologically.
    ''Their circuits are so overloaded they can't take another
concern,'' Freudenberger says. He cites the case of Helen, a
compulsive perfectionist who felt overwhelmed by her dual roles as
marketing executive and wife and mother, and continually raged at her
family; Al, who would come home each night and listen to music
through earphones; and Franklin, who spent every free minute fishing.
    ''Some people become exercise junkies as a means of avoidance,''
says Freudenberger.
    Families tend at first to deny or ignore the burnout's behavior.
Later they may vent their anger on the burnout, or some other family
member that the burnout victim has chosen as a particular scapegoat.
    Communication increasingly fails; family members may cease to relate
in any meaningful way.
    ''One of the signs is they stop eating together, or if they do, they
have the radio or TV on,'' Freudenberger says. ''In private homes,
people become isolated. Lots of doors are closed. The kids go to
their own rooms, or watch TV.''
JM (MORE)
    
nyt-02-05-85 1500est
n053  1210  05 Feb 85
BC-SUB-60-MINUTE-GOURMET
(LIVING)
EDITORS: KILL EARLIER SENT VERSION AND SUB FOLLOWING
By PIERRE FRANEY
c. 1985 N.Y. Times News Service
    NEW YORK - When thinking of winter feasting, what comes to mind is a
dish from winters past - winters of a childhood spent in Burgundy,
although in France this dish is more closely associated with the
regions of Alsace and Lorraine. The dish is choucroute garnie, as the
French call it, or braised sauerkraut with sausage and pork.
    I know of many restaurants that specialize in this dish; indeed,
when visiting Paris during the cold months, I almost invariably book
a table at the Brasserie Lipp to enjoy the choucroute, which is its
specialty. But I still prefer to make it at home, since I can order
ingredients, mainly the sausages, to suit my taste.
    Many saukerkraut recipes call for cooking over a long period. I have
found, however, that a tasty platter can be prepared in about an
hour, using a generous amount of fresh apple cider and thinly sliced
apples. The sweetness of these two ingredients makes for a nice
balance with the acidity of the sour cabbage.
    Aficionados of sauerkraut disagree about whether the shredded
cabbage should be rinsed well before cooking. I prefer to rinse it,
and then, by squeezing, to extract most of the rinsing water. A
general rule is that if the sauerkraut is salty and not fresh from
the barrel, it should be rinsed; if it is fresh, rinsing is not
necessary.
    Juniper berries, which are used in many winter foods, including
game, are a traditional ingredient for cooking sauerkraut. They are
not essential, but they add a little character to the dish. My
favorite platter of sauerkraut is made with boulettes de porc, small
round pork meatballs that are easy to prepare.
    
Sauerkraut With Cider and Pork
    1 porkette (cooked smoked shoulder butt), 1  1/2 pounds
    2 green apples, about  3/4 pound
    3 Idaho potatoes, about 1  1/4 pounds
     1/4 cup lard or solid white shortening
    1  1/2 cups coarsely chopped onions
    1 teaspoon finely minced garlic
    1 teaspoon caraway seeds
    2 pounds sauerkraut
    6 juniper berries
    1 bay leaf
     3/4 cup apple cider
     3/4 cup chicken broth
    6 to 8 boulettes de porc (see recipe)
    1 link kielbasa or Polish sausage, about 1  1/4 pounds.
    1. Cut and pull away the cloth covering of the pork butt.
    2. Remove the stems from the apples. Peel and core the apples, and
cut them into quarters. Cut the quarters crosswise into thin pieces.
There should be about 2  1/2 cups.
    3. Peel the potatoes, and cut each in half crosswise. Let the
potatoes stand in water to cover until ready to be used.
    4. Heat the lard in a large, heavy casserole, and add the onions and
garlic. Cook, stirring, until the onions are wilted.
    5. Add the caraway seeds and cook briefly. Add the apples, stirring.
    6. Rinse and drain the sauerkraut. Squeeze it to extract excess
liquid. Add the sauerkraut and juniper berries to the casserole.
    7. Place the pork butt in the center of the sauerkraut. Add the bay
leaf, cider and broth. Cover closely. Bring to a boil, and cook 15
minutes.
    8. Arrange the boulettes of pork and kielbasa over the sauerkraut.
Drain the potatoes and add them. Cover closely and continue cooking
20 minutes. Remove the bay leaf.
    9. Slice the meats. Serve with the pork balls, potatoes and
sauerkraut.
    Yield: 6 to 8 servings.
    
Boulettes de Porc (Pork meatballs)
    1 pound lean ground pork
    1 slice white bread, broken into pieces
     1/4 cup milk
    one-third cup finely chopped onion
     1/2 teaspoon finely minced garlic
     1/4 cup finely chopped parsley
     1/2 teaspoon ground cumin
     1/2 teaspoon ground coriander
    Salt to taste if desired
    Freshly ground pepper to taste.
    1. Put pork in a mixing bowl and set aside.
    2. In another bowl, combine bread pieces and milk. Blend thoroughly
with the fingers, then add to the pork, along with the onion, garlic,
parsley, cumin, coriander, salt and pepper. Blend thoroughly with the
fingers.
    3. Shape the mixture into 6 to 8 meatballs of about the same size.
    Yield: 6 to 8 meatballs.
    
nyt-02-05-85 1509est
n054  1222  05 Feb 85
BC-FASHIONS
(ART EN ROUTE TO PICTURE CLIENTS)
By BERNADINE MORRIS
c.1985 N.Y. Times News Service
    PARIS - The French couture designers can afford to relax. Their
spring and summer collections, shown this week to enthusiastic
crowds, were a triumph.
    As Jacques Chirac, mayor of Paris, observed at a reception honoring
Philippe Venet, head of one of the distinguished smaller couture
houses, the clothes represented the culmination of 200 years of
French fashion leadership. He appropriately praised the craftsmanship
as well as the design, for the glory of couture clothes rests on both.
    The clothes shown by 23 houses were beautifully made, with the kind
of embroidered detail that is rarely available in any other fashion
center. They were also sufficiently diversified in design to fit the
needs of women all over the world. The emphasis was on clothes shaped
to the body, but each designer has found his own way of expressing
this idea. It did not seem, as it has in some seasons past, that the
designers had called one another up before starting to work on their
collections and asked one another what they were going to make, like
women going to the same dinner party who want to know what their
friends will wear. There have been seasons when every designer seemed
to have stayed up late watching 1930s movies, so it was hard to tell
who was responsible for a specific style without peeking at the label.
    The clothes for spring are luxurious and expensive looking. Some of
the tautly draped styles would look trashy if they were not
individually fitted as, of course, they always are in couture. The
opulence, which is a keynote of the couture tradition, is not as
overwhelming as it has been as recently as last season.
    These are basically clothes for rich women, with the least expensive
priced at around $3,000 for a simple daytime style, though some
houses, such as Saint Laurent and Chanel, quote their starting prices
at around $5,000. Beaded evening dresses are available at houses like
Givenchy, which specializes in them, for around $10,000.
    Prices for Americans are particularly agreeable because of the
strength of the dollar, and the runways were lined with American
women, who usually had the best seats in the house. Seating is
assigned on the basis of purchases, except for celebrities, such as
Catherine Deneuve, Paloma Picasso or Princess Caroline, who are
always given prominent positions because they attract the
photographers. Members of the diplomatic world are also seated
prominently, in accordance with the French belief that Paris is the
world's fashion capital.
    Lynn Wyatt, Nan Kempner, Mercedes Kellogg, Betsy Bloomingdale and
Carroll Petrie were just some of the Americans who were indefatigable
in their search for the right clothes. The strongest American
contingents were seen at the houses that were generally acclaimed as
the best of the season, and the fitting rooms in the salons after the
shows were filled with American accents.
    The first of the shows to attract the American trade was that of
Marc Bohan for Christian Dior. Along with some of the more elaborate
evening dresses, the collection included some of the most casual
designs, such as shirts worn outside pants, suit jackets worn with
the sleeves pushed up and a great many trouser suits. It is the
designer's contention that just because a woman spends a considerable
amount of money on her clothes does not mean that she doesn't want to
feel comfortable in them.
    Emanuel Ungaro's designs were far more exotic. Most of them were for
evening, and they tended to wrap the body snugly, show a few inches
of thigh above the knees and feature colors such as acid green,
bright pink, yellow and blue, often used together. In other hands,
these color combinations would have been impossible. Many viewers
found them sexy and intriguing.
    In his third collection to revitalize the house of Chanel, Karl
Lagerfeld loosened the traditionally snug armholes and eased the fit
of the traditional cardigan jacket. He also introduced his own sense
of fun and games with Pierrot ruffles and Marie Antoinette milkmaid
dresses, which he said were inspired by an exhibition of Watteau
paintings. Chanel's fans, who are legion, didn't complain. They
seemed perfectly comfortable with Lagerfeld's interpretations, along
with his shattering of the Chanel attitude toward hemlines. Instead
of the 2-inches-below-the-knee, which has been a standard of the
house, he made hemlines either very short or very long.
    Yves Saint Laurent offered a kind of sleek modernity that seemed to
appeal to everybody. This was not one of his wildly theatrical
collections. He showed superbly tailored suits, often with boleros or
bloused battle jackets and trousers. The bolero suit continued into
evening, in black embellished with embroidery and sparkling colors in
the blouse. He showed sexy draped dresses and soigne tailored styles.
Colors were often muted pastels, especially in dresses he dedicated
to Christian Berard, the painter, who was his childhood idol. The
collection was satisfying on all counts.
    Later, everyone moved on to acclaim Hubert de Givenchy's collection,
with its balance between short jacket suits and glittery evening
dresses. In between there were the printed silk dresses that women
all over the world find useful for dressy daytime wear. There were
big puffed sleeves for evening and comfortably bare necklines for
day, but nothing was overdone. The clothes carried the kind of
assurance that many couture shoppers treasure. They are quietly
controlled non-aggressive styles that look as expensive as they are.
    
nyt-02-05-85 1521est
n055  1231  05 Feb 85
BC-SPERMICIDE 2takes
(Newhouse 005)
(Note to editors: Judy Grande is a staff writer for the Cleveland
Plain Dealer)
By JUDY GRANDE
Newhouse News Service
    WASHINGTON - Every year between 300,000 and 600,000 women get
pregnant while using a contraceptive jelly that is supposed to kill
sperm. One of those women, a Tennessee economics professor, has just
been awarded $5.1 million because her daughter was born with major
birth defects.
    The award by U.S. District Court Judge Marvin H. Shoob last week in
Atlanta - the first of its kind involving a spermicide - has sent
shock waves through the legal and scientific communities.
    But physicians and scientists, including some in the federal
government who have studied spermicide use, are puzzled at the
outcome of the case because the medical evidence is inconclusive, at
best.
    The highly emotional debate over whether the Ortho-Gynol
Contraceptive Jelly, manufactured by Ortho Pharmaceutical Corp. of
Raritan, N.J., actually left Mary Maihafer's daughter with one arm, a
cleft palate, a deformed hand and only 10 percent vision in one eye
is likely to continue for years. A large part of that debate
questions the duty of a manufacturer to warn women of a suspected
risk, no matter how small or unproven it may be.
    Caught in the middle are the women who used a spermicide and are now
pregnant anyway.
    Also caught are the millions of women who are not pregnant, but each
day have to choose which form of birth control is the best and safest
for them.
    These women have been told that of the most effective contraceptive
methods - the pill, the intrauterine device and diaphragm used with a
jelly - the latter is considered the safest. Now a federal judge
issues a ruling that instills a new fear - it may be safe for the
woman, but not the unplanned child.
    There are about five scientific studies that hint at a possible link
between spermicides and birth defects, particularly limb reduction,
Down's syndrome and hypospadias, an abnormality of the penis. But
they are far from conclusive, and even their authors suggest much
more study is needed.
    Dr. Hershel Jick, of the Boston Collaborative Drug Surveillance
Program, compared 763 infants of mothers who had received a
spermicide with 3,902 infants whose mothers had not. He found, in his
study published in 1981, that there were congenital malformations in
2.2 percent of the infants of mothers who had received a spermicide,
compared with 1 percent in the comparison group.
    But Jick himself has said the study is not conclusive, that more
research is needed. And some scientists say the statistically
insignificant defects that turned up in a few studies may be due to
chance.
    On the other side, there are studies, several done by Ortho, that
find no link between spermicides and major birth defects.
    Dr. Jose Cordero of the federal Centers for Disease Control in
Atlanta conducted one. He said he found nothing to suggest a problem
with spermicides.
    Even if the theory that a spermicide can cause fetal malformations
is accepted, it isn't clear whether they would stem from a damaged
sperm that fertilizes the ovum, or from absorption of the spermicide
during the first few weeks of pregnancy.
    There has been little comment on the case from government officials,
including those at the U.S. Food and Drug Administration which at one
time considered requiring warnings.
    In June 1983, Dr. Solomon Sobel, director of the FDA's division of
metabolic and endocrine drugs, wrote a memo to the director of
over-the-counter drugs concerning spermicides. It said: ''As you have
stated, the agency has not yet asked for a pregnancy warning.
However, I feel that we, perhaps, are now at the point where it would
be prudent to request such a warning in the labeling.''
    Five months later, however, an FDA advisory committee recommended
against that, concluding '' ... there was insufficient evidence to
warrant a special warning.''
BJ (MORE)
    
nyt-02-05-85 1530est
n056  1236  05 Feb 85
BC-SPERMICIDE 1stadd
(Newhouse 006)
Grande - WASHINGTON X X X warning.''
    Ortho, citing the FDA action, said: ''The overwhelming weight of
evidence is against the judge's finding. ... A warning on the product
is not only unjustified but counterproductive.''
    One of the eight members of the FDA committee was Dr. Robert L.
Brent, who later testified on behalf of Ortho at the Maihafer trial.
Brent, chairman of the Department of Pediatrics at Philadelphia's
Jefferson Medical College, says the scientific studies lead him to
believe there would be more risk from aspirin and some vitamins than
from a spermicide.
    The main ingredient is a detergent, he says. ''You probably absorb
more in your shampoo than in your spermicide,'' says Brent, adding
that the spermicide reaching the fetal area would be so diluted,
''it's like taking a grain of detergent to do a wash.''
    ''As drugs go, this is pretty safe,'' he says.
    Judge Shoob would not comment on his decision, which said the
company knew its product causes birth defects and should have put a
warning on the label.
    The judge's feeling was, if there is any doubt as to its safety, why
not add a warning label, says James C. Simmons, an Atlanta attorney
who repesented the mother.
    Simmons also says the judge was not swayed by the FDA opinion
because the FDA has been wrong before, and because it relied on so
many Ortho studies.
    ''The studies are not the evidence that my child was injured by
spermicide,'' Simmons concedes. ''But the studies did not disprove my
case either.
    ''We were able to prove within a reasonable degree of certainty that
the spermicide caused this child's birth defects.''
    The National Women's Health Network petitioned the FDA for a warning
on spermicides in 1982, telling women the effect of the drug on the
fetus is unknown.
    Sybil Shainwald of the network says, ''Women should choose with the
full knowledge of the consequences. They don't panic and stop buying.
Look at the sales of the sponge (the contraceptive sponge). Look at
the sales of the pill. Women have a right to make a choice.''
    The FDA says the warning issue is not closed, citing three more
studies on spermicides and birth defects, the results of which have
not been published.
BJ END GRANDE
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1536est
n057  1248  05 Feb 85
BC-TV-SPORTS
(Repeating to re-insert dropped copy)
By MICHAEL KATZ
c.1985 N.Y. Times News Service
    NEW YORK - The way to add excitement to televised wintersports is to
combine the luge and biathlon and let them shoot at moving targets.
But resisting the temptation of record Nielsens, ABC provided a more
traditional combination last weekend as a reminder that winter is
upon us.
    The network of snow and ice, the network of the Winter Olympics,
began its buildup for the 1988 Games at Calgary, Alberta, by
combining the two most glamorous events: women's figure skating and
men's downhill skiing.
    Figure skating, like gymnastics in the Summer Games, is the
television event with the most sex appeal. Women skiers, like women
hurdlers, are slower than their male counterparts and thus are
treated like second-class athletic citizens. But figure skaters and
gymnasts are the ''Charlie's Angels'' of the Olympics. Olga Korbut,
Nadia Comaneci and Mary Lou Retton were the female leads in the last
Summer Games this country has participated in (as far as we were
concerned, there were no stars at all in the boycotted 1980 Moscow
Games). Winters have been dominated by the Peggy Flemings, Dorothy
Hamills and Janet Lynns.
    And last weekend, as Jim McKay announced, there was ''a changing of
the guard'' at the U.S. figure-skating championships at the Kemper
Arena in Kansas City, Mo. Gone were such stalwarts as Rosalynn
Sumners and Elaine Zayak. In their place now are Tiffany Chin, Debi
Thomas and Caryn Kadavy.
    ''A new day is dawning in American skating,'' said McKay.
    It happens every four years. Figure skating may not be any more of a
sport than, say, ballet dancing. Both combine athletic prowess,
strength, stamina and, most of all, grace. Take away the judges, and
figure-skating meets are no more strenuous, or competitive, than
tryouts for the New York City Ballet. And, in fact, Olympic figure
skating is a quadrennial audition for ''Ice Capades'' or ''Mickey
Mouse on Ice.'' It's show biz, an industry that television knows all
about.
    -
    Show biz, with blue ice for a stage, apparently does not need
competition. Neither, apparently, does figure skating, at least the
way ABC shows it. Skater after skater, wearing outfits that Cyndi
Lauper would not be caught dead in, and with Kewpie doll smiles
pasted on their faces, take their turns independently. There is
little reference to the other competitors, or what kind of
performances second-place skaters might need in order to overtake No.
1.
    Dick Button, long one of the best ''expert'' commentators in sports
television, went so far as to explain that ''ice dancing can't hide
behind triple-jumps and spins,'' as if the only thing that really
mattered in all of skating was the musical interpretation. Button, in
an interview later, added that there was no reason why ballet could
not be considered a sport, either.
    Button seems to have backed off technical analysis, opting instead
to report on how nervous the skaters must be. Peggy Fleming, who was
conspicuously absent from the ABC booth during the men's competition
as Brian Boitano took over as champion from that recent graduate to
show biz, Scott Hamilton, at least pointed out during Miss Chin's
performance that ''she seems to be skating a very safe kind of
program.''
    But television ducked one story. Debi Thomas, who finished second to
Miss Chin, was the first black skater to win a medal at the national
championships. The obvious questions about why more blacks have not
gone into the winter sports were never asked.
    -
    Ernie Kovacs did it much better than ABC. The comedian, almost 30
years ago anticipating the women's downhill ski race at Santa
Cristina, Italy, one week announced at the start of his show that the
fabulous Nairobi Trio would perform that night. At show's end, with
no appearance by the Nairobi Trio, Kovacs explained that the boys'
flight was delayed, but that they would be on next week.
    The following week, after again promising the Nairobi Trio at the
start of the show, Kovacs explained that the boys' car broke down,
but please try again next week. This time, the excuse was that the
elevator to the studio had broken down. Eventually, three men dressed
in gorilla costumes appeared and they were well worth the wait.
    ABC viewers got Frank Gifford and Bob Beattie. They had been
promised, on same-day tape-delay coverage Saturday, the women's
downhill at the world skiing championships. Hours before ''Wide World
of Sports'' went on the air, ABC knew that high winds in the Italian
Alps had forced the postponement of the race. Yet all day, even
during the figure-skating portion of the program, viewers were told
that the women's downhill was ''coming up.''
    The race actually started, with Gifford and Beattie mentioning that
the winds made the course dangerous (footage of a training accident
was shown, of course). After 12 skiers went down the mountain, race
officials called off the race, erasing the results of those early
starters. Only then did Beattie say, ''Now the question is whether
they should've started in the first place.''
    There was no excuse for ABC's leading on skiing fans who were
expecting a race. It is the same principle, and certainly ABC has no
monopoly on its use, of most anthology sports programs: ''Coming up
is the world championship fight, but right now, let's return to the
barrel lifting.''
    
nyt-02-05-85 1548est
n058  1255  05 Feb 85
BC-PROFIT-SHARE
(Newhouse 007)
(Note to editors: Joseph B. Espo is a staff writer for the Flint
(Mich.) Journal)
By JOSEPH B. ESPO
Newhouse News Service
    FLINT, Mich. - United Auto Workers leaders in Flint say General
Motors Corp. is paying less in profit sharing this year than in 1984
despite record earnings, and the union may try to revert to the
traditional system of annual raises.
    GM said this week that hourly workers will receive a payout of $515
this year, compared with the 1984 average of $640. That is
substantially lower than the $1,000 the company was predicting
workers would get from profit sharing during last year's contract
talks.
    Flint-area union leaders say they expect the profit sharing figures
to renew debate over the wisdom of accepting profit sharing instead
of annual wage increases, and predict workers will be angry.
    ''There will be a lot of disappointed people,'' says regional UAW
director Stan Marshall, who favors returning to regular wage
increases. He says the profit sharing payout should teach the union
not to rely on management's figures.
    The $1,000 estimate was provided by GM during the negotiations, and
repeated by the UAW in literature explaining the contract settlement.
    ''It just doesn't seem like it would change around that much in that
length of time,'' Marshall says. ''That is why we should go back to a
percentage raise, and to hell with profit sharing. We will know what
we are getting.''
    GM says the reduction in profit sharing is more than accounted for
by the production lost in the United States before contracts were
reached here and in Canada.
    Since March 1984, more than $600 million in profits has been paid
out to GM's U.S. employees, according to the automaker.
    UAW Vice President Donald Ephlin says ''many factors'' contributed
to the low profit sharing payout.
    ''After an extremely brisk first half, the corporation's performance
fell off in the second half,'' Ephlin says. ''The company's estimates
of the profit sharing amount for 1984 were based on the first half
and the best available projections for the second half from many
sources.
    ''A second factor is that hourly employment at GM has risen
substantially as more than 100,000 workers have been recalled.
Consequently, the profit-sharing pie is being divided up among a much
larger number of UAW workers.''
    Profit sharing was negotiated at GM and Ford Motor Co. during 1982
negotiations. The first payout came in 1984, based on 1983 earnings.
    In the 1984 contract the profit sharing was retained, with GM
workers getting one up-front wage increase and two lump-sum payments
equal to 2.25 percent of each worker's previous year's earnings,
excluding overtime premiums.
JM END ESPO
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1554est
n059  1304  05 Feb 85
BC-BERGMANN 2takes
(Newhouse 008)
PHILOSOPHER SEES SIX-MONTH WORKYEAR
(Note to editors: Jane Myers is a reporter for the Ann Arbor (Mich.)
News)
By JANE MYERS
Newhouse News Service
    ANN ARBOR, Mich. - Philosophy Professor Frithjof Bergmann talks
almost incessantly. Hardly the typical introspective academic, he has
been talking this way, in the accent left over from his youth in
Austria, for more than seven years - and people are listening more
and more closely.
    Bergmann has an extraordinary idea for solving what he views as one
of the nation's most dangerous problems - an ongoing and precipitous
decrease in jobs in a culture where everything revolves around work.
    ''A job not only provides income,'' he says, ''it gives you dignity,
self-respect, identity, the respect of other people ... it actually
gives you a world. ... But we have a technology that is perpetually
taking it away from us. And the speed with which that technology is
now moving is so dizzying that it makes everything else we've done
seem silly.''
    Bergmann's answer is not to create more jobs.
    The University of Michigan professor has a different idea: six
months of work followed by six months of doing whatever you feel like
doing - an absolute decrease by half in your year's work time.
    At first it may seem preposterous - or wonderful but unworkable. But
people who talk to Bergmann long enough begin to see the sense of it.
    Auto company executives, college presidents and United Auto Workers
union leaders have been listening carefully to Bergmann of late, and
have given him modest sums of money to keep the conversation going.
    The establishment of what Bergmann is calling a New Work Center in
Flint, Mich., is moving slowly toward reality, with commitments of
financial backing from General Motors Corp., the University of
Michigan, the UAW and the Michigan Commerce Department. The center is
to be a place where labor, management and the public can learn how
the six-months-on, six-months-off job cycle could work.
    Bergmann thinks his idea must be made to work. The alternative, he
says, may be more terrible than many Americans can now comprehend - a
kind of ''South Americanization'' of the United States, with very
high unemployment, a small minority of rich people and millions
living in squalor in urban areas.
    Bergmann, unlike so many observers of the contemporary scene,
doesn't see automation as a bugaboo. Instead, he says, it is simply
the latest natural development in the history of technologically
fostered human liberation that began with the wheel.
    ''Fundamentally, we have created a technology that should now put us
in a position to have a society in which people work less rather than
fight over the jobs that are left (after automation),'' he says.
''What we do instead is nothing short of insane, grotesque. We're
running at a sprint to create more jobs at the same time that our
technology is making it possible for us to work less.''
    If you were permitted by your employer to work only six months a
year, retaining half your health and pension benefits, would your
standard of living decrease by half, too?
    Bergmann doesn't think so. Your clothing, commuting and restaurant
costs would go down. You wouldn't need a babysitter.
    You could do much more for yourself. You could build a garage or add
a new room to your house, or put in additional insulation or solar
heating panels to cut your utility bills. You could learn how to tune
your own car. You could plant a big garden.
    You could start your own business, or be a volunteer teacher.
    ''No part of my message is that people should be lazy,'' Bergmann
says. ''I am not advocating sloth.''
    Bergmann sees his plan as a way for people to gain self-sufficiency,
to lose that trapped feeling of being dependent on a paycheck.
    ''My idea is actually entrepreneurial,'' he says. ''Quite a few
people would probably want to start businesses of their own.
    ''Suppose you make something as simple, as practical as a baby's
crib,'' says Bergman, himself a new father. ''Suppose it is the
world's best baby crib and rocks a baby to sleep better than any crib
ever has. That's better than doing a job you hate for 50 hours a
week.''
RB (MORE)
    
nyt-02-05-85 1603est
n060  1308  05 Feb 85
BC-BERGMANN 1stadd
(Newhouse 009)
Myers - ANN ARBOR X X X week.''
    Nobody would have to think very hard to imagine some of the things
that could be done to make the world a better place, he says. ''An
awful lot of work does not get done.''
    Given the shrinking job market, Bergmann is furious with recent
developments in education.
    ''We have turned education into job education,'' he says, ''just
exactly at the point where there are fewer jobs and people will spend
a smaller percentage of time on their jobs than ever before, if only
because of increasing life span.
    ''We should prepare people for everything in life, for living life
without jobs, for doing many different kinds of things.''
    Reuben Burks, a United Auto Workers official, says Bergmann's ideas
have generated plenty of support and no opposition among the UAW
leadership. ''We have to make the workers and the community aware of
the impact of new technology and automation,'' he says.
    Though Bergmann's ideas may seem revolutionary, Burks says, ''We're
going to have to look at some things that are revolutionary.''
    Changing the attitude of management toward half-time work is
undoubtedly one of the biggest challenges associated with Bergmann's
plan. ''It would take some tough negotiating to get it going,'' says
the UAW's Burks.
    But Bergmann remains an undaunted optimist. He says, ''There should
be no confusion: We are in the beginning of a great scarcity of jobs
- but not of work.''
RB END MYERS
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1607est
n061  1317  05 Feb 85
BC-EARLY-BUDGET-(Balt.)
    
     Baltimore Sun's Early Budget for Wednesday February 6, 1985
    
     Good afternoon. Here's what The Baltimore Sun News Service has in
sight at this hour for tomorrow morning's papers. Regular features
that always move on this cycle are described at the end. A more
complete budget of spot stories will move at about 5 P.M. Eastern
time. Late developments will be budgeted as received. The editor is
James Keat. He can be reached at 301 332 6188.
    
     NATIONAL
    
     Meese - Senate Judiciary Committee approves his nomination for
attorney general by 12-6 vote (two Democrats backing Meese). - (600)
-  By Vernon Guidry - BC
    
     Economy - Reagan lashes out at Federal Reserve in toughest language
ever in economic report. - (800) - By Steve Nordlinger - BC
    
     Elderly - Council of Economic Advisers says elderly have become
economically strong, perhaps laying basis for Social Security cuts. -
 (600) - By Steve Nordlinger - BC
    
     Regan - White House staff chief announces new aides and answers
questions. -(Devlp.) - By Robert Timberg - BC
    
     Budget - Stockman carries on budget sales pitch in Congress. - 
(700) - By Nancy Schwerzler - BC
    
     USA - Kennedy and Falwell debate, amicably, before religious
broadcasters. - By Ernest B. Furgurson - BC
    
     Tax - Plans of new team at Treasury to push tax reform.
(Tentative.) - By Fred Barnes - BC
    
     EDITORIALS & COMMENTARY
    
     History - Throughout the United States and much of the world, Black
History Month will be observed during the month of February. Black
History Month affords an auspicious opportunity for 37 million black
Americans to take stock of ourselves and to give serious thought to
what is required in order to enhance and ensure our survival and
human dignity. - (650) - By Samuel L. Banks - The Baltimore Evening
Sun - BC
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC
    
     SPORTS
    
     Kreh - Women are breaking away from the old notions of what society
expected them to-and not to do. And, if you are a male sportsman,
count your blessings. - (750) - By Lefty Kreh - BC
    
     Racing - Part II of a V part Series, Today, After 26 years on the
circuit, Buddy Baker finally is fielding his own team. - (600) - By
Sandra McKee - The Baltimore Evening Sun - BC
    
     BUSINESS AND FINANCIAL
    
     Money - If the Small Business Administration is eliminated, as the
Reagan administration has proposed in its new budget, ''banks are
going to have to get serious about picking up the slack,'' according
to Eliot P. Hurd, who runs a consulting firm active in business
analysis and in finding loan funds. - (550) - Jesse Galsgow - BC
    
     ENTERTAINMENT & CULTURE
    
     Record - The Who are back, after two long years, only to bid
farewell once again, this time with a double album of material culled
from American and Canadian stops on the '82 tour. The package is
titled ''Who's Last'' - (550) - By Patrick Ercolano - The Baltimore
evening Sun - BC
    
     Cedrone - An interview in Washington with 19-year-old Kevin Dillon
touring to promote his new file ''Heaven Help Us''. - (1,100 In 2
Takes) - By Lou Cedrome - The Baltimore Evening Sun - BC
    
     LIVING & STYLE
    
     Drug - A new drug, the first in its class, promises to be an
effective treatment-with fewer side effects-for high blood pressure
in both blacks and whites. Blacks are hit the hardest by the disease
which affects 60 million Americans. - (950 In 2 Takes) - By Sue
Miller - The Baltimore Evening Sun - BC
    
     Computers - Getting your computer to talk to another computer. - 
(900) - By Michael Himowitz - The Baltimore Evening Sun - BC
    
     FEATURES
    
     Afterthoughts - A weekly Column, this week on Best Sellers and what
our reading habits tell us about ourselves. - (900) - By Linell Smith
- The Baltimore Evening Sun - BC
    
     End Baltimore Sun's Early Budget
    
    
nyt-02-05-85 1616est
n062  1328  05 Feb 85
BC-DEFENSE-CUTS
(Newhouse 011)
By DAVID WOOD
Newhouse News Service
    WASHINGTON - In an almost exact replay of the past four years,
Defense Secretary Caspar W. Weinberger has taken his budget to
Congress and faced a chorus of demands that Pentagon funding be
severely cut.
    Weinberger was told this week, as in past years, that the question
is not whether the Pentagon's $277.5 billion budget will be cut, but
how.
    The question is whether Congress can cut the budget wisely, and a
growing number of analysts - including some congressmen and senior
Pentagon officials - believe the answer is no.
    Last year, Congress never finished work on the defense budget, even
though its four main military committees spent 10 months examining
and debating the issue.
    Even so, there was insufficient time to examine the larger questions
of strategy and whether the armed forces and their equipment is
directed toward strategic goals, complains Rep. Jim Courter, R-N.J.,
a member of the House Armed Services Committee. ''Dissatisfaction
with the status quo is at an all-time high,'' he says.
    Deputy Defense Secretary William H. Taft IV, who supports reform of
the congressional budget process, notes that most Pentagon budget
programs suffer from ''incessant budget tampering.''
    At present, he said in an interview, Congress pays insufficient
attention to defense strategy, and too much attention to detail. Such
''micromanagement'' merely adds to the Pentagon's long-range costs,
defense officials believe.
    One difficulty is the sheer size and complexity of the Pentagon's
budget. In the past week, each congressmen received a 315-page
Pentagon annual report, a 166-page manual describing major planned
purchases, and ''congressional justification books'' whose thousands
of pages detail information contained in the other documents.
    The Pentagon budget contains more than 1,100 separate requests for
appropriations, including such items as the Air Force MJU-7B infrared
flare, the Navy Secretary's secretarial staff's wages, and temporary
lodging expenses for soldiers based in Europe.
    ''There's no way you can know everything that's in there,'' says one
of the 150 congressional staff aides responsible for examining the
Pentagon's annual budget requests. ''The best you can do is focus on
a few program areas,'' adds the aide.
    Looking for cuts, congressmen and their aides quickly come up
against a second problem - more than 80 percent of the Pentagon's
budget is ''untouchable'' because it already is legally committed.
    This year,  5/8 example, the Pentagon has requested $106.2 billion to
help pay for bombers, aircraft carriers and other big weapons systems
which Congress previously agreed to fund, and which are already in
production.
    Another $118.8 billion is slated to pay the wages and pensions of
the 1 million military and civilian personnel on active or reserve
duty, and the estimated 1.3 million receiving retirement pay and
benefits.
    Thus, the attention of budget-cutters is drawn to the two remaining
categories - $20 billion to operate the ships, aircraft, trucktanks,
bases and other facilities of the armed forces at their current
levels; and $33.1 billion ''investment'' in research, development and
purchase of new equipment.
    Reducing this number requires hard judgments about what the United
States' vital interests will be in the future, what the threats to
those interests will be, and how best they can be met.
    But Congress has shown little interest in examining such questions.
Last week, for instance, few senators bothered to attend an all-day
Senate Foreign Relations Committee hearing at which Secretary of
State George P. Shultz and Weinberger were called to discuss strategy.
    None of those present questioned the officials on U.S. foreign
commitments or on the adequacy of the strategies and forces to meet
them.
    ''I was a little ashamed of our political system at that point,'' a
senior administration official commented following the hearing.
    Edward N. Luttwak, a senior fellow at the Georgetown University
Center for Strategic and International Studies, and a consultant to
both the State and Defense Departments, faults Congress for its
''vapidly superficial'' focus on the Pentagon's weapons purchasing
programs.
    In a recent book, ''The Pentagon and the Art of War,'' Luttwak
writes that year after year, ''ten minutes of desultory chitchat
disposes of the entire question of strategy before all concerned
settle down to many weeks of scrutiny, in great detail, of every
single item of expenditure.''
    This year Courter and other congressmen, supported by the Pentagon,
are pressing for Congress to adopt a two-year Pentagon budget cycle.
That would reduce congressional ''micromanagement'' of the budget,
while increasing time for thoughtful analysis of strategy, Courter
argues. In previous years, the idea has made little headway.
BJ END WOOD
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1627est
n063  1337  05 Feb 85
BC-RHODEN 2takes
(Newhouse 012)
RENOWNED SCULPTOR REVISITS FIRST CLAY
(Note to editors: Garland Reeves is entertainment editor for the
Birmingham (Ala.) News)
By GARLAND REEVES
Newhouse News Service
    BIRMINGHAM, Ala. - The thought strikes me, as I approach him
standing among his scattered sculptures in a hall of the Birmingham
Museum of Art, that John Rhoden could have been a bricklayer, or a
railroad man like his father.
    There is a simple solidity about him - a rectitude that might be
called square, despite a seeming twist of the spine that cants one
shoulder ever so slightly higher than the other.
    His feet are wide and boxy, solid foundations in their simple shoes.
He doesn't look as tall as he is, because the shoulders are broad,
the chest a barrel. The jaw is chiseled, the smile sure. And the grip
of his square hand as we meet is firm almost to the point of pain,
despite his 67 years.
    When I worked for a furniture company in the poor, mostly black
sections of North Birmingham in the early 1960s, I came across many
men who looked like John Rhoden. The Civil Rights marches, the fire
hoses, the police dogs all still were in the future.
    The men who looked like John Rhoden were strong, moral men who paid
their bills a little at a time and worked for U.S. Pipe or Southern
Railway. A modest home, a good wife, children that did not dishonor
them, and some new furniture - they did not dream beyond that.
    I think of those solid men as I see Rhoden among his statues. Rhoden
dreamed of more. He didn't want to be a laborer, he wanted to be an
artist. So now he is a sculptor.
    Calling New York home, he has roamed the world making art.
    But it all started in the Smithfield section of Birmingham, where a
young boy liked to wet down a hillside until it was slick mud and
then slide down it.
    ''There was an old clay hillside,'' Rhoden recalls, ''and we'd get
old garbage can lids and go sliding down.'' But Rhoden began to be
more fascinated with the clay itself, fashioning little figures from
it. And then he'd bring his prizes home to his mother.
    ''And she never scolded me, even though I was covered in mud,'' he
chuckles.
    Is it any wonder, then, that when he returned to Birmingham for his
exhibition at the museum, among the first things Rhoden - who has
worked with marble in Rome, rich woods in Indonesia, bronze in New
York - did was to go dig up some Birmingham red clay and rub it
between his fingers?
    It isn't as though he abandoned the city, going off to live in New
York, even working in Russia. He returned with regularity to visit.
    In the meantime, his work was exhibited in New York's Brooklyn
Museum, Metropolitan Museum of Art and Whitney Museum of Art, and at
the National Gallery of Art in Washington. His large commissioned
bronzes are installed at the Harlem and Bellevue hospitals in New
York and the Afro-American Museum in Philadelphia.
    Now, at last, his art is on display in his home town for the first
time. The museum has put together a comprehensive retrospective of
his work.
    On this day, Rhoden's sculpture is sitting in the hallways of the
museum as workmen finish laying the wood parquet flooring in the
galleries where it will be exhibited. As we stand and talk, harassed
museum workers begin moving the pieces into the galleries.
    Noticing that a sculpture has been put down on the wrong side,
Rhoden instructs a worker that the figure is to be on her side. It is
the oldest work in the show, a reclining woman carved into French
limestone in 1947.
    Much of Rhoden's work is in metals and wood, but his favorite medium
is stone, particularly marble. Rather than trying to force the medium
to his will, he bends his approach to the material at hand. It's not
quite like the old sculptor's joke - asked how he creates a statue
out of a block of marble, the artist says, ''I just start chipping
away everything that's not statue'' - still, there is something
elemental to creating in stone. Rhoden takes a tactile, physical
approach to his work.
RB (MORE)
    
nyt-02-05-85 1636est
n064  1347  05 Feb 85
BC-RHODEN 1stadd
(Newhouse 013)
Reeves - BIRMINGHAM X X X work.
    ''When I'm working with marble,'' he says, ''I like to look and
study it. I feel to see which way its grain goes. Once I find the
grain, then I begin to work.
    ''I like the feeling of wood,'' he says, closing his eyes and
reaching those strong hands out as if to caress a piece about to be
begun. ''You have to know the feeling of red and blue.''
    Rhoden walks over to another piece, this an abstract made of copper
roughly welded together with colored glass soldered into the circular
cutouts like the jewels in a king's crown. Its title is
''Fireflies.'' He bends down and straightens one of the plates.
    ''Nobody but me would have noticed that,'' he says.
    Rhoden's wife, Richanda, approaches. Her straight black hair is
pulled severely back from her face and tied into a bun, accenting her
high cheekbones, her strong nose and mouth. Her complexion is the
color of sand. There is a feeling of the Dakota plains about her face
- a face to be carved in something more permanent than flesh. Rhoden
has returned to his wife again and again for inspiration, including
the elegant ''Portrait of Richanda'' carved from teakwood in 1961.
    An artist herself, she and Rhoden met at Columbia University in New
York. Or rather Rhoden saw her, a beautiful, full-blooded Indian
woman from Washington state. At Columbia, Rhoden kept winning
prestigious prizes, such as a Rosenwald Fellowship and first prizes
in sculpture in 1947, '48 and '50.
    A carefree, strapping young man from Alabama full of life and the
love of art, Rhoden spent his prize money on parties. ''I'd invite
the whole school,'' he laughs. It was at one of these that he spotted
Richanda - the daughter of a judge. He pursued her, but she remained
indifferent to his charms and talent.
    Then in 1951, he won a Fullbright Fellowship and left for Rome,
where he won the Prix de Rome Fellowship. He wrote to Richanda and
finally persuaded her to join him.
    ''The first time I saw you and your work, I knew you had
something,'' she finally admitted.
    While trying to maintain her own career, she has coddled Rhoden like
a rare egg. She laughs as he talks about how certain pieces came into
being.
    ''I remember better how they came about than he does,'' she says.
''The pieces he remembers best are the ones he hasn't done yet.
    ''He becomes so concentrated that he loses all sense of time and
place,'' she continues, smiling affectionately at him. ''If I didn't
just force him to stop, he wouldn't even eat anything.''
    Rhoden does remember, however, the two years they spent in Indonesia.
    ''The culture was so excitingly different from ours,'' Richanda
says. The experience generated a supernova of creativity for Rhoden,
who was sculpting pieces right and left.
    He guides me over to a big, darkly gleaming teak log out of which
figures primitive and archetypal are growing. On one side is the
frowning visage of a prince, on the other is a voluptuous woman being
engulfed by a fierce mythical animal. He calls it ''Blue Eyes,
Indonesian Legend.''
    ''The beast is chasing the beautiful young princess,'' Rhoden
explains. ''The prince always fights the beast and he always loses
and the beast catches the princess. But look, she's pleased and
happy.''
    He laughs at the deep truths captured in primitive myths. No matter
where it comes from, Rhoden's work has a mythical, primal quality. It
seems ancient.
    Even his abstract works often have a surprising correctness about
them. Some monumental sculptures twist and spin, like smoke frozen in
bronze.
    Now past the age when most people retire, Rhoden finds himself in a
particularly fertile period.
    He has been in a frenzy of creativity, and even a fire that
destroyed some work and heavily damaged the New York studio couldn't
stop him.
    ''Right now I feel terrific,'' he says. ''Birmingham is in a
renaissance and I would like to express that in sculpture somehow.''
    Once - not too long ago in time, but an eternity ago in what has
taken place since - Rhoden might have been allowed into the museum
only as a workman.
    Now he is honored artist.
RB END REEVES
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1646est
n065  1359  05 Feb 85
BC-INTERMARRY 2takes
(LIVING)
By ARI L. GOLDMAN
c. 1985 N.Y. Times News Service
    NEW YORK - Under a flower-bedecked wedding canopy one sunny day last
August, a rabbi wearing a yarmulke and a priest in a clerical collar
joined in marriage Jodi Daynard and Mark Polizzotti. The ceremony was
anything but traditional, even though it drew on both Jewish and
Roman Catholic traditions. Blessings were offered in Hebrew and in
English, and there was an exchange of rings and vows. It ended with
the bridegroom smashing a glass underfoot.
    ''Neither of us is consciously religious,'' said Miss Daynard, a
27-year-old freelance writer. ''But having a traditional wedding was
something we wanted. To me, there was something comforting about it.''
    The mixed wedding ceremony is just one way in which people are
coping with an increasingly common occurrence: marriage to someone of
another faith. In the Archdiocese of New York last year, 21 percent
of the Catholics who registered their weddings with the church
married Protestants or Jews. Among Jews who marry, nearly 40 percent
choose a Christian partner, according to a study by the American
Jewish Committee. That is why the subject is particularly sensitive
among Jewish leaders, many of whom see interfaith marriage as a
threat to the survival of the Jewish community.
    Despite its familiarity, interfaith marriage remains a highly
emotional issue for lay people. Several interfaith couples who were
asked about their weddings refused to discuss the matter, saying it
was intensely private. Even some members of the clergy, when asked
for comments, said they did not want made public the fact that they
perform interfaith marriages.
    There are many implications to an interreligious marriage that go
beyond the wedding day to include holiday observances, relationships
with in-laws and the faith decided on for the children. The way in
which a couple handles the wedding ceremony, family therapists say,
can be an indication of how they will resolve these other issues.
''It seems like they are talking about how they will get married, but
what is underneath is how these two people are going to arrive at a
variety of decisions,'' said Dr. Norman J. Levy, a Manhattan
psychiatrist who often counsels couples planning to marry. ''The
ceremony sets the tone.''
    Many interfaith couples avoid the question of religion altogether
and are married by a justice of the peace. Others defer to the
religion of one partner; Letitia Biddle, for example, an Episcopalian
who in December married Seth Blitzer in a Jewish ceremony. ''Everyone
in my family has had an Episcopalian wedding,'' Mrs. Blitzer said.
''Seth felt strongly that he wanted to be married by a rabbi.''
    ''Being Jewish is very important to me,'' explained her husband, who
is a dental student. Although when it came to the marriage, as
against the wedding, Blitzer said he had decided that love was more
important than religion. ''I've seen marriages between Jews and Jews
that were disasterous and marriages between Christians and Christians
that were disasterous,'' he said. ''Having the same faith is not
necessarily the successful formula.''
    Mrs. Blitzer said that once she decided to go along with the Jewish
ceremony, she met no opposition. ''My family felt it was my
wedding,'' she said. ''I got the location and Seth got the person who
performed the wedding.'' The Blitzers were married by Rabbi Emily
Korzenik in the bride's ancestral home in Andalusia, Pa., north of
Philadelphia.
    Other couples plan one wedding ceremony for each religion. An
increasing number of people, like Miss Daynard and Polizzotti, are
choosing a mixed wedding ceremony.
    Putting together such ceremonies is difficult: Parents and family
members often balk and threaten not to attend, or make a scene if
they do. Only a limited number of rabbis will perform these kinds of
weddings. Ministers and priests may perform them but only if the
Christian spouse accedes to certain demands - such as promising to
try to raise the children as Christians.
    Though the Roman Catholic Church still exacts such a promise, in
other ways its attitude toward interfaith marriage ceremonies has
changed significantly in recent years, according to Msgr. Otto
Garcia, chancellor of the Brooklyn Diocese and an expert on canon
law. Prior to a 1970 decree of Pope Paul VI called ''matrimonia
mixta,'' marriages between Catholics and non-Catholics were performed
in the rectory, the parish residence, rather than the church.
    Since matrimonia mixta, Monsignor Garcia said, the ceremony can be
in a church - or even in a synagogue - and still be recognized as
valid by the church. All that is required is a dispensation from the
local bishop, which is easily obtained if the Catholic spouse
promises, orally or in writing, ''to do all in my power'' to raise
the children as Catholics. A couple could marry without the
dispensation, but the marriage would not be recognized by the church.
    Many of the couples interviewed said that in planning their
weddings, they looked to the experiences of friends who had married
outside their faith. They also sought the counsel of the clergy who
had agreed to perform the ceremony.
    The Rev. James P. Lisante of St. Boniface Roman Catholic Church in
Elmont, N.Y., for example, offers interfaith couples a format
outlined in a book by the Rev. Ronald Luka, ''When a Christian and
Jew Marry'' (Paulist Press, 1973). The ceremony, Father Lisante said,
follows this general outline:
    The rabbi welcomes guests and reads a passage from the Old Testament
about the creation of man and woman, beginning with Genesis 2:18:
''And the Lord God said, it is not good that man should be alone.''
    (MORE)
    
nyt-02-05-85 1658est
n066  1410  05 Feb 85
BC-INTERMARRY 1stadd
NYT NEW YORK: be alone.''
    From the New Testament, the priest then reads about the meaning of
love, concluding with Corinthians 1, chapter 13: 7-8: ''There is no
limit to love's forebearance, to its trust, its hope, its power to
endure. Love never fails.'' (The language is from the New American
Bible).
    The priest delivers a homily on the sacredness of marriage, noting
that two religious traditions are being joined. The bride and the
bridegroom face each other and recite marital vows and exchange
wedding rings. The rabbi recites a blessing over the wine and hands
it to the bridegroom who drinks and gives it to the bride to drink.
    The rabbi recites Psalm 118: 2-6 in Hebrew and the priest says it in
English: ''Blessed be he that cometh in the name of the Lord: we have
blessed you out of the house of the Lord.'' The ceremony ends with
the groom smashing the glass underfoot.
    Too often, however, clerics and friends offer sketchy advice that is
of little help to an interreligious couple. Many of those interviewed
said that, in the end, they consulted their own needs and relied on
their own creativity in devising a ceremony.
    ''We had a really hard time because the clergy in the Armenian
church won't marry interfaith couples,'' said Esther Cohen, an author
and publisher who four years ago married Peter Odabashian. The pair
turned instead to a Protestant minister, the Rev. Paul Sherry of the
United Church of Christ, and to Rabbi A. Bruce Goldman, one of a
handful of Reform rabbis in the New York area who - against the
directions of the Reform, Conservative and Orthodox rabbinical bodies
- conduct interfaith weddings. The ceremony, which was performed at
Butler Hall at Columbia University, was influenced by the traditions
of both Miss Cohen and Odabashian: Under the chuppah, or Jewish
wedding canopy, the bridegroom placed an Armenian crown of flowers on
the head of his bride.
    Among some interfaith couples, there is praise for the mixed
wedding. ''Everyone came over afterward and said how much they loved
it,'' Miss Daynard said. ''The ceremony created a warm feeling and
brought the families together. It seemed to cross all the
boundaries.''
    ''Frankly we did it to appease the relatives,'' said Gary Epstein,
who was married in a joint Catholic-Jewish wedding two years ago,
''but in the end, everybody was satisfied - every base was covered.''
    For Mrs. Blitzer, the single-religion ceremony worked best. ''If
anyone had any doubts,'' she said, ''everything was resolved by the
time we said, 'I do.' ''
    But according to other couples, who asked that their names not be
used, no ceremonial arrangement suited them or their relatives. They
told of family battles before the wedding day and of hard feelings
that have lingered ever since. In one case, where two ceremonies were
held, each family lays claim to having had ''the real'' wedding. ''My
parents feel the Jewish ceremony was just for show,'' said the
Christian spouse. In another Jewish-Christian ceremony, which was
performed by a priest, the Jewish family did not attend. ''The
parents acknowledged that their son was married, but they did not
acknowledge the wedding,'' said a guest, who also asked for
anonymity. Some families have ceased contact with the child who
married a person of another faith.
    ''It is traumatic because the couple is doing something different
from what their families did,'' said Miss Cohen, noting that she
often gets calls from friends about how to handle the sensitive
points of an interfaith wedding ceremony. ''Parents like to have
their own values affirmed through duplication,'' she said. ''Many
interpret an interfaith marriage as a negation. I see it as a
positive way of bringing together two cultures - I'm not less of a
Jew because I married an Armenian.''
    Rabbi Simeon J. Maslin, who leads a Reform congregation in Elkins
Park, Pa., disagreed. ''What you're really saying is that all
religions are the same when they are not,'' he said. ''Christians,
for example, are married in Christ and Jews are married in accordance
with the covenant of Moses and Israel - and those things don't mix.''
Rabbi Maslin recently gathered the signatures of more than 100 Reform
rabbis from major congregations nationwide, endorsing a document
against performing interfaith marriages.
    A few rabbis and priests are willing to go ahead with interfaith
weddings anyway, without support from their religions' leadership; in
the case of Roman Catholics, even without a dispensation. ''These
couples are going to get married anyhow,'' said the Rev. Henry
Fehrenbacher, who co-officiates at many Catholic-Jewish marriages in
the New York area. ''If we don't help them, they just become bitter,
turned off. A lot of people won't put up with arbitrary regulations.''
    
nyt-02-05-85 1709est
n067  1421  05 Feb 85
BC-ARTS-TOMASSON
(Newhouse 014)
Arts column, for weekend use
By BYRON BELT
Newhouse News Service
    SAN FRANCISCO - In the age-old tradition of ''The King is Dead, Long
Live the King!'' one of this era's greatest male dancers, Iceland's
Helgi Tomasson, has retired at the peak of his career with the
incomprable New York City Ballet to assume the post of artistic
director of the San Francisco Ballet, America's oldest professional
dance organization.
    Following study in Iceland, Denmark and New York, Tomasson moved
from relative annonymity with the Joffrey Ballet to spectacular
stardom for four years with the late and sometimes lamented Harkness
Ballet to fourteen years with the New York City Ballet. It was with
the New York company that the late George Balanchine and Jerome
Robbins mounted important works that took particular advantage of the
classical purity and poetry of the slight (5-foot-7) dancer whose
elegance, immaculate technique and dependability set him apart from
flashier male stars.
    That Helgi Tomasson will be greatly missed as a dancer, there can be
no doubt whatsoever. That he is truly ''retired'' was confirmed when
he answered my anxious question by stating flatly: ''I will not dance
again. I planned the final performance to come exactly when it did,
while I was fully able to live up to my highest standards.''
    ''I am coming to San Francisco to assume direction of a fine company
with a great tradition,'' he said. ''It is time to move on to the
next plateau, and toward that end we just want to get on working with
the dancers.''
    The links between Helgi Tomasson and the San Francisco Ballet are
deeper than might be easily seen. Like Lew Christensen, co-director
with Michael Smuin until the Smuin's death, Tomasson is of Danish
extraction and both rose to dancing fame under the demanding
direction of Balanchine. Helgi couldn't resist telling a reporter
that the similarities went further, as each married an Italian and
each has a son named Chris.
    Christensen and brothers Harold and William played major roles in
the development of dance in the West, with companies in Utah and
California to their credit along with the popularization of dance in
general.
    Even before Christensen's death last autumn, soon after the San
Fransisco Ballet celebrated its 50th anniversary, there were
indications that the relationship between him and his protege,
Michael Smuin, had cooled. Possibly this was because Smuin's
choreography and management stressed rather chic, dramatic dance
drama at the expense of the classical traditions emphasized by
Christensen's own works.
    Smuin's main achievement during a decade with the ballet here was to
add a fresh vitality to the reportory and appeal to a new, younger
audience. The company Tomasson is taking over (Smuin is to remain as
a resident choreographer for at least two seasons) has the finest
ballet training and rehearsal plant in the country, and its fifty
dancers are under contract for the most weeks of any major company in
the land, forty-five.
    When the San Francisco Ballet board attempted to remove Smuin this
summer, the situation was handled with a lack of sensitivity in every
area, and the officials were stunned and surprised when the public
and press rose in righteous indignation at both the manner of the
removal and the act itself.
    As one who has observed the San Francisco Ballet regularly, but from
a distance, I can say with certainty that the current changes will be
for the better - if the board, dancers and press stop trying to run
things on their own and in full view of the media. Every sniffle has
been the reason for public agony these last few months.
    Tomasson is an idealist and a dedicated craftsman of rare skill and
integrity. He plans to spend much of his time where he is needed most
- teaching class, ''not daily, but often,'' and in the realms of
choreography, both by himself, company members and guests. To be
free, it is hoped that a more experienced arts administrator, like
fellow former New York City Ballet dancer Patricia Neary, can be
found to assist the new artistic director.
    Common sense should also determine that the unique aspects of the
San Francisco repertory - the works of Christensen, Smuin and
Balanchine - should remain a base, and that Smuin's special talents
in television production (seen recently in a memorable tribute
program to Lew Christensen that deserves to be seen nationally) be
used to the fullest. A lavish Christensen-Smuin ''Dinderella'' was
recently taped by PBS for later showing.
    The San Francisco Ballet has a proud past, a lively present, and an
assuredly exciting future. Helgi Tomasson is the man of the balletic
hour, not only here, but in the dance world at large.
RW END BELT
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1720est
n068  1430  05 Feb 85
BC-ADVISORY-newhouse-update
    This is an updated schedule of stories from the Newhouse News
Service. A complete wrapup will follow completion of today's report.
    The Newhouse News Service can be reached at 202-383-7800.
    
    
TUESDAY, FEBRUARY 5, 1985
    
    
WASHINGTON
    
    REAGAN-SCRAMBLE (Benson - Newhouse) As President Reagan celebrates
his 74th birthday and delivers his State of the Union message to
Congress, White House aides are scrambling in three directions at
once: selling a controversial budget to a defiant Congress, mapping
strategy for arms talks with the Soviets, and reorganizing the
president's staff. From Washington. About 800. (To be sent).
    
    BURNOUT (Young - Newhouse) Job burnout isn't something that remains
at work. Burnouts bring their anger and frustrations home, with
unhappy and sometimes devastating results for their families. Is
burnout a contributor to teen suicides? From Washington. For weekend
use. 1,000. (Transmitted as Newhouse 003, 004).
    
    DEFENSE-CUTS (Wood - Newhouse) The question facing Congress and
embattled Defense Secretary Weinberger this week is not whether
Congress can cut the Pentagon's budget, but whether it can so wisely.
A growing number of defense officials and some congressmen believe it
cannot. From Washington. 800. (Transmitted as Newhouse 011).
    
    BUDGET-QS (Gettlin - Newhouse) The Pentagon wouldn't be the only
beneficiary of increased funding under President Reagan's proposed
new federal budget - Congress, the federal courts and White House
agencies involved in national security matters all would get more
money. From Washington. About 700. (To be sent).
    
    BUDGET-TAXES (Garland - Newhouse) President Reagan's proposed new
budget forecasts $57 billion in new revenues next year - the result
of earlier tax changes, proposed new user fees and predicted economic
growth. From Washington. About 600. (To be sent).
    
    SPERMICIDE (Grande - Newhouse) Hundreds of thousands of women get
pregnant while using a contraceptive jelly that is supposed to kill
sperm. The case of one whose daughter was born with major birth
defects is sending shock waves through the scientific community. From
Washington. 1,000. (Transmitted as Newhouse 005, 006).
    
    
DOMESTIC
    
    BERGMANN (Myers - Newhouse) Philosophy Professor Frithjof Bergmann
has what might seem a preposterous idea - reducing Americans'
workyear to only six months on the job. But auto company executives,
college presidents and union leaders have been listening to Bergmann
carefully of late. From Ann Arbor, Mich. 900. (Transmitted as
Newhouse 008, 009).
    
    PROFIT-SHARE (Espo - Newhouse) United Auto Workers union leaders say
General Motors employees are angry about lower-than-expected profit
sharing payments in the face of record earnings. From Flint, Mich.
450. (Transmitted as Newhouse 007).
    
    
ENTERTAINMENT
    
    REVIEW-''WITNESS'' (Freedman - Newhouse) ''Witness,'' starring
Harrison Ford, is a beautifully observant, warmly felt tribute to a
simpler way of life by Australian director Peter Weir. Undated. Film
review, for use when ''Witness'' opens at local theaters. 600.
(Transmitted as Newhouse 001).
    
    RHODEN (Reeves - Newhouse) Sculptor John Rhoden, who has roamed the
world making art, returns to Birmingham, Ala., for the first
exhibition of his work in his home town. From Birmingham, Ala. 1,300.
(Transmitted as Newhouse 012, 013).
    
    
LIFESTYLE
    
    WORDS (unsigned - Newhouse) The ''gas goblin'' bread ... Whatever
happened to the Roman months Quintilis and Sextilus? ... The origins
of ''mediocre'' and ''Appalachians.'' Undated. Take Our Word for It
column. 700. (Transmitted as Newhouse 002).
    
    CONVERSATIONS (Wilson - Newhouse) The literary interview can get
rather rough, says Charles Ruas, author of ''Conversations With
American Writers'' - as when Truman Capote broke Humphrey Bogart's
elbow. Undated. 650. (Transmitted as Newhouse 010).
    
    
RB END
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1729est
n069  1431  05 Feb 85
BC-ARTS-TOMASSON-correction
    Editors: In ARTS-TOMMASON (Belt - Newhouse 014) 5th graf, fix 2nd
sentence to read: Like Lew Christensen, co-director with Michael
Smuin until Christensen's death, Tomasson is of, etc.
    (Christensen's death sted Smuin's)
RW END
    
nyt-02-05-85 1730est
n070  1442  05 Feb 85
BC-REAGAN-SCRAMBLE
(Newhouse 015)
By MILES BENSON
Newhouse News Service
    WASHINGTON - The White House is a dynamo as President Reagan
celebrates his 74th birthday Wednesday and delivers his State of the
Union message to Congress.
    Scrambling in three directions, top White House aides are trying to
sell a controversial budget to a defiant Congress, mapping strategy
for arms control talks with the Soviets, and coping with the shocks
of a major internal reorganization of the president's staff.
    Shortly, they are scheduled to launch a fourth project - shaping a
historic overhaul of the federal tax system to achieve the
simplification, fairness, and lower rates Reagan seeks. That package,
too, will have to be approved by a wary Congress.
    Reagan's insistence on big boosts in military spending and deep,
permanent cuts in federal programs that benefit middle-class
taxpayers have rattled both Republicans and Democrats alike on
Capitol Hill, and they are digging in for a long fight.
    In his nationally broadcast address to a joint session of Congress,
Reagan is expected to make a strong appeal for support for his
budget, his forthcoming tax simplification plan and his negotiating
position on arms control.
    To help him in his uphill drive to persuade Congress to shrink the
non-defense portion of the budget, Reagan has decided to bring back
to the White House Max Friedersdorf, who served as his chief of
congressional liaison with great success in 1981 when Reagan scored
his greatest legislative triumphs.
    Friedersdorf, vice president of Pepsico Inc., will rejoin the
administration as legislative strategy coordinator under Donald T.
Regan, the new White House chief of staff who announced the
appointment Tuesday.
    Two other experienced former White House operatives also will be
returning to the White House, Regan disclosed. Patrick J. Buchanan,
the Nixon administration speechwriter who drafted Spiro T. Agnew's
scorching attacks on the news media, will join the White House staff
as chief of communications, a position vacant since the departure of
David Gergen in 1983.
    And Edward J. Rollins, who was national director of Reagan's
re-election campaign last year, will return to the White House as
assistant to the president for political and governmental affairs.
Rollins previously served as a presidential assistant for political
affairs.
    Regan said John A. Svahn will remain as director of the White House
office of policy development, as will White House spokesman Larry
Speakes, who conducts daily press briefings.
    Robert C. McFarlane, the White House national security adviser, will
remain in his post, rounding out the senior staff.
    McFarlane has been coordinating preparations for the complex,
three-tiered arms talks with the Soviet Union which are scheduled to
resume March 10 in Geneva.
    Separate and simultaneous negotiations will be conducted on
strategic nuclear weapons systems, including intercontinental
ballistic missiles, intermediate range nuclear weapons and strategic
defense systems, including Reagan's proposed ''Star Wars'' missile
proposal.
    Reagan has directed U.S. negotiators to push for overall reductions
in nuclear weapons rather than merely a cap on future growth.
    Meanwhile, Speakes called the outbursts of criticism from lawmakers
over Reagan's budget proposals so much ''sound and fury,'' and
''snap-shots.''
    ''When the smoke clears,'' Speakes said, the president's plan will
be seen as a ''blueprint for economic success.''
    Later, at a briefing for newsmen on the report of the President's
Council of Economic Advisers, economist William Niskanen warned that
if Congress does not reduce federal spending as a percentage of the
gross national product, taxes ultimately will have to be raised.
    Niskanen described the growing federal deficit, expected to top $220
billion this year, as a ''slow-acting but potentially lethal cancer''
that could eventually reignite inflation and lead to a new recession.
    Meanwhile, Budget Director David Stockman sought to step up pressure
on the lawmakers to act swiftly on Reagan's proposals, calling the
budget ''a trillion-dollar monster.''
    ''We now have a budget that is a trillion dollars in its dimension
that is a blooming, buzzing mass of programs, projects, commitments
and purposes responsive to the needs of our society; that is
bolstered with a mountain of claims and counterclaims of every kind
that are most difficult to sort out and are obscured by accounting
complexities that defy comprehension,'' Stockman told the Senate
Budget Committee.
    But before he was finished, Stockman managed to punch a hole in
Reagan's argument on behalf of increased defense spending.
    If Congress wants to cut defense spending, Stockman said, it should
draw a bead on military retirement system benefits.
    Stockman said of the system: ''It's a scandal, it's an outrage ...
if push comes to shove they'll give up on security before they give
up on retirement.''
BJ END BENSON
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1741est
n071  1454  05 Feb 85
BC-PERSONAL-HEALTH 2takes
(LIVING)
By JANE E. BRODY
c. 1985 N.Y. Times News Service
    NEW YORK - American parents spend millions of dollars a year on
corrective shoes and orthopedic devices for their children's feet.
Most of these items are of little or no value, according to medical
experts, because the majority of the children would naturally outgrow
their problems.
    For the rest, doctors do not know whether the effects of treatment
persist after therapy is stopped; they do not even know whether early
corrective actions that do persist make a difference to an adult's
foot comfort and function.
    The orthopedic conditions parents are trying to change include flat
feet, a pigeon-toed or duck-footed gait, bowlegs and knock-knees.
Between 50 and 90 percent of children are born with one or more of
these ''problems,'' which suggests that they may be an aspect of
normal development, not a defect needing correction.
    Specialists in pediatric orthopedics say they prefer that treatment
be reserved for the relatively rare severe cases of foot and leg
deformities that usually do not improve dramatically with age and
could lead to functional and cosmetic problems. On average, this
would limit treatment to perhaps 1 to 2 percent of the children now
receiving it. For most orthopedic conditions, the experts say, a
wait-and-see attitude is safe. ''Most of the time the best course of
action is to do nothing and let nature takes its course,'' said Dr.
Lowell D. Lutter, an orthopedist at Gillette Children's Hospital in
St. Paul.
    If a problem has not resolved itself by a certain age (the age
varies with the condition), then treatment is warranted, doctors say.
They warn, however, that inordinate delays in necessary treatment
could result in permanent deformity.
    Most infants seem to lack arches, principally because the pads of
fat in their feet hide the arches. Toes that turn in and legs that
bow out, which also seem to characterize newborns, are believed to
result from the cramped fetal position before birth. As a child
starts standing and walking, arches usually become apparent and feet
and legs straighten.
    According to Dr. Lynn T. Staheli, chief of orthopedics at Children's
Orthopedic Hospital and Medical Center in Seattle, the use of special
shoes and devices to ''normalize'' these and other conditions arose
during the last century. At the time, Dr. Staheli said, ''minor
postural variations were viewed as the precursors of serious adult
disability, deformity and pain,'' and the natural course and
significance of these variations was poorly understood. Among the
correctives that were developed were wedges; special heels; bars;
splints; casts; arch supports; shoes without indentations that could
be worn on either foot, or with reverse indentations (as if the right
shoe were being worn on the left foot, and vice versa), and shoes
with rigid heel counters.
    While such devices have their place in treatment, recent studies
have raised serious doubts about their value for most children fitted
with them. Dr. Staheli, for example, concluded from a survey of
practitioners that ''corrective shoes are often prescribed when
regular shoes would be more appropriate and economical.'' Studies
have even questioned the orthopedic value of special high-top shoes
for infants and toddlers; their main - perhaps only - benefit is that
children are less likely to kick them off, or step out of them and
lose them.
    Following is a guide to care and footwear for young children.
    Normal feet.For infants with normal feet, most experts
recommend inexpensive soft shoes with flexible flat soles. For
children not walking, these shoes generally keep feet warm. For the
toddler, shoes also protect against injury. Infants' and toddlers'
shoes should be big enough to let the toes spread without cramping.
This may mean buying new shoes every one and a half to three months.
Toddlers' shoes should be flexible, flat and well-ventilated, with
upper parts that ''breathe.'' Tennis or ''jogging'' shoes meet these
criteria, Dr. Lutter says.
    Flat feet.For small children with ordinary,
''flexible'' flat feet, regular shoes are recommended. A child's feet
are suitably flexible if parents can see an arch when, for example,
the child is standing on the toes or lying down. Most children
develop something of an arch by age 6. If not, there still is no
reason to believe that the feet will cause pain or other orthopedic
problems later.
    Flat feet are considered rigid if there is no hint of an arch and
the foot is not supple and cannot be moved easily in all directions.
Children with rigid flat feet should be seen by an orthopedist.
    Pigeon toes.Three conditions commonly cause feet to
turn in. The hip joint may rotate in more than it rotates out. This
usually corrects itself as the child grows; if the deformity is
severe or causes children to trip repeatedly over their own feet,
corrective surgery may be needed.
    Toeing-in may be caused by a twist of the lower leg bone. If the
problem is severe or if it persists for six months after the child
starts walking, a splint can be used at night to tie the heels
together so that the toes are forced outward and are not allowed to
return to the fetal toe-in position. Dr. Staheli says night splints,
which should be used only on medical advice, are ineffective after
age 3.
    (MORE)
    
nyt-02-05-85 1753est
n072  1500  05 Feb 85
BC-PERSONAL-HEALTH 1stadd
NYT NEW YORK: age 3.
    Toeing-in also may be caused by an abnormal bend in the foot, the
probable result of pressure in the womb. An abnormal bend should be
brought to the attention of an orthopedist. If the foot can be bent
straight while the heel is held firm, it will usually straighten on
its own within the first few months of life. Parents can help by
manually stretching the feet into a normal position several times a
day. If the deformity persists to the age of 8 or 10 months, however,
Dr. Staheli recommends encasing the feet in casts. After removal of
the casts, shoes with reverse lasts may be used to force the front of
the foot outward. Children with this problem should not sit ''Indian
style'' with their feet tucked behind them.
    Out-toeing.This, too, is common among infants, the
result of a hip that rotates out more than in, or of an outward
twisting of the lower leg bone. Gentle stretching exercises can be
used, as can a night splint that holds the front of the feet together.
    Bowlegs and knock-knees.Bowlegs are normal in infants
and toddlers under age 2; knock-knees are normal in early childhood
until age 5 or 6. Most such children should wear ordinary shoes. An
orthopedist should be seen if the deformity is severe, if only one
leg is affected, if the child is abnormally small or if the family
has a history of the condition.
    Different leg lengths. Specialists vary on how much of
a difference in leg lengths they will ignore: some doctors treat
children with one leg half an inch shorter than the other; others
wait for a difference of an inch and a half or more. Dr. Staheli
prefers to use a shoe lift if the difference is one inch or greater,
because it will improve the child's gait. He says that even if
untreated, differences in leg length do not produce spinal
deformities as the child grows.
    The type of health practitioner parents choose will largely
determine the kind of advice they get. In a survey of
shoe-prescribing practices for children, for example, Dr. Staheli and
Laura Giffin, then a student and now a doctor in California, found
that pediatricians and pediatric orthopedists (who are most
experienced in dealing with children's foot problems) were less
likely than regular orthopedists and podiatrists to prescribe
corrective shoes and shoe modifications.
    Children's feet generally grow so fast that shoes must be replaced
every three months, on average, making high-quality, long-wearing
shoes unnecessary and uneconomical, Dr. Staheli says. The most
important consideration in buying shoes for infants and children,
then, is fit. A properly fitting shoe exerts no pressure on the sides
of the feet and has enough toe room that, when the child stands, the
foot can assume the same position as if the child were barefoot.
    
nyt-02-05-85 1759est
n073  1509  05 Feb 85
BC-CONVERSATIONS
(Newhouse 010)
By VICTOR WILSON
Newhouse News Service
    (UNDATED) ''The art of the literary interview,'' according to
professional interviewer Charles Ruas, ''is transforming a particular
interrogation into a universal dialogue.''
    Sometimes it can get rather rough, like the time when writer Truman
Capote was interviewing Humphrey Bogart, who was a arm-wrestling fan.
Bogart grabbed the writer's hand, which startled Capote.
    ''And I just put my leg behind his, turned around it, pushed him
back, and broke his elbow,'' Capote explained later. ''Which was
unfortunate, because it put (his) film out of commission for about
five days,'' Ruas relates in ''Conversations With American Writers''
(Knopf, $17.95, a Book of the Month selection).
    Ruas, born in China, educated at Princeton and the Sorbonne, and
winner of Fulbright and Danforth Fellowships, discusses several other
writers.
    - Eudora Welty: ''Mississippi is very conservative. Reagan carried
the state because he came down there and talked about, 'We'll be
having states' rights,' and a whole lot of things like that.''
    - Norman Mailer: ''...People would rather be wiped out by a nuclear
war ... than have the hideous experience of being killed on the
street by a mugger.''
    - Gore Vidal: ''I never wanted to be a writer. I mean, that's the
last thing I wanted. I expected to be a politician.''
    - Tennessee Williams: ''Success is such a false word, really. I
think Andy Warhol can define it: 'Success is what sells, isn't it?'''
    - Marguerite Young: ''I see much talent. But many of them will be
lawyers or bridge builders. Many of them will think they are going to
write, but will be turned aside by fate.''
    - William Burroughs: ''After the mid-fifties, when I published
'Lolita,' ... I had been harassed by the French administration to the
point where I was almost out of business.''
    - Joseph Heller, (First novel, ''Catch 22'' in 1961): ''When I get
to the last third (of a book), the speed with which I write increases
tremendously. ... It's not hard to explain - it's because I've used
up most of the material that I had in mind. So I don't have to decide
where I have to put anything. It's out of the way. That's a load off
my mind.''
    - Susan Sontag: ''In American letters, there is the notion that
writing is above all, an expression of unrestrained expansive self.
The temptations of egotism and commercialism are such that you have
to be very eccentric to be a good writer ... to love literature above
all, and not be mainly concerned with self-promotion. The writers who
are going to last are those who care about language.''
    - E.L. Doctorow: Asked whether he relies on the routine of work to
lead him to a book, his reply: ''Without question. What else could be
as reliable? And even after you have the book, even the illusion that
it's written itself, you work to keep having it. There are very few
pages in 'Ragtime' that I didn't write a half-dozen times or more.''
    - Toni Mirrison: ''I always know the ending, that's where I start.
... 'Sula' began with Shadrack, so I had to write the part that
precedes it.''
    - Paul Theroux: ''I never begin a book - or even a story, for that
matter - knowing how it's going to end. ... I set off, first in 'The
Great Railway Bazeer,' and then in 'The Old Patagonian Express,''
believing that I was going to find something out. I didn't have the
slightest idea of what I was getting myself into.''
    - Robert Stone: ''I started writing 'Hall of Mirrors' in New York in
'62. On the basis of it, I got a fellowship at Stanford. When I went
to California, it was like everything turned to Technicolor.
California in 1962 was a different world, of course. ... The worst
and strangest thing around was us.''
    - Scott Spencer (novelist, whose third was titled, ''Endless
Love''): He explained his move to Vermont in 1976 this way: ''I went
on unemployment compensation, which I felt was my version of the
National Endowment for the Arts grant.''
RW END WILSON
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1808est
n074  1520  05 Feb 85
BC-ONEPOT 3takes
(LIVING)
By BRYAN MILLER
c.1985 N.Y. Times News Service
    NEW YORK - For working people with time-pressed lives, probably the
most sensible meals to make are those that can be prepared in an hour
or so (excluding cooking time) on a weekend afternoon. They should
also be the kind of foods that keep well in the refrigerator or
freezer for later consumption and that require the least number of
pots and pans.
    Winter is the season that calls for this kind of cooking. So-called
one-pot meals fill all the above criteria, and besides, they can be
savory and nutritious. They also are ideal for entertaining because
they can be brought directly from stove to table, making for minimal
cleanup.
    The following recipes, devised with Pierre Franey, demonstrate that
one-pot cooking is not limited to the same old stews, soups and
casseroles that nurtured us through winters past. These variations,
which include poached capon, beer-braised beef and Oriental-style
veal shank, all illustrate a key point in cooking: A little
imagination in ingredient combinations, herbs and spices can dress up
almost any dish, so that it becomes memorable, something you would
proudly serve to guests.
    The poached capon, for example, is a delicious winter meal inspired
by the French dish poule au pot, in which a tough old barnyard hen is
simmered in chicken broth with vegetables for hours until the meat
falls off the bones. Such geriatric birds can be difficult to come by
in cities, so we have substituted a nine-pound capon, which works
just as well.
    The capon is first stuffed with seasoned bread crumbs, the gizzard
and liver (chopped well) and pistachio nuts (although any favorite
nuts would do). It is then trussed and poached in a large kettle with
an assortment of winter vegetables: leeks, carrots, celery and
brussels sprouts. The finished dish, steaming hot and packing enough
vegetable power to satisfy any doting mother, can be served two ways.
The rich broth and vegetables could be presented as a soup course
first with some good earthy bread, followed by the meat and dressing,
or some of the soup could be placed in a shallow bowl with slices of
capon and dressing arranged on top. All it needs is a full-bodied
chardonnay from California or Burgundy to round out the meal.
    Another example of jazzing up a familiar dish is beer-braised beef.
It is essentially a twist on a classic Flemish dish, boeuf en
carbonnade. In the traditional version beef cubes and bacon are
browned well, then braised in dark beer with onions and mixed herbs.
In the version that follows, a whole piece of well-trimmed beef is
browned, then braised in beer with a dash of saffron and cinnamon.
This small variation yields a completely different-tasting dish -
saffron lends a pungent Oriental edge to the sauce while cinnamon
imparts an inviting tinge of sweetness.
    Other modifications could just as easily be tried, perhaps a
teaspoon of curry powder for an Indian flavor or some cumin and hot
peppers for a fiery edge. The key is to think of natural food
affinities - beef and curry, chicken and tarragon (or garlic, sage,
thyme and so on), fish and dill - and experiment. The flavors of both
dishes described would intensify if stored in the refrigerator for a
few days.
    Dried bean dishes - roasted lamb with lentils, dried cod with
chickpeas, navy bean soup - lend themselves perfectly to one-pot
cooking. They are soul-warming, nutritious and remarkably inexpensive.
    Few home cooks have three days free to make an authentic cassoulet,
the traditional white bean stew with lamb, sausages and confit of
goose from southwestern France. However, another savory dish that
requires far less work is haricot de mouton. This lustily seasoned
casserole enhanced with garlic, thyme, salt, pepper, carrots, onions
and tomato can be put together in half an hour and placed in the oven
to cook for two hours.
    Mention veal shanks and thoughts inevitably turn to osso buco,
Italian-style braised veal shanks with vegetables. This is a superb
dish, but it is by no means the only way to prepare veal shanks. The
recipe here calls for an entire uncut veal shank that you can order
from a butcher. We attempted to give the shanks an Oriental
complexion. They are first pierced with slivers of fresh garlic and
then poached in chicken stock bolstered with light soy sauce along
with scallions, kale, Chinese cabbage and parsnips. Fresh coriander,
snow peas and bean sprouts are added minutes before serving to give
the dish extra texture and more of an Oriental appearance. The
natural gelatin in the veal bone and meat gives the broth a rich,
thick consistency. It is an opuent-looking and unusual dish with a
felicitous mixture of textures and flavors.
    Like the other dishes described here, veal shanks Oriental style
will improve if covered securely in the refrigerator for several days.
    
Beer-Braised Beef With Onions
     Beef, top chuck, 4-pound piece
     Salt and pepper to taste
     2 tablespoons vegetable oil
     1  1/2 pounds onions, quartered and sliced (about 6 cups)
     1 tablespoon minced garlic
     2 tablespoons flour
     24 ounces beer
      1/2 teaspoon loosely packed saffron
     1/8 teaspoon cinnamon
     4 cloves
     1 tablespoon tomato paste
     1 bay leaf
      1/2 teaspoon dried thyme
     1 cup chicken stock.
    (MORE)
    
nyt-02-05-85 1820est
n075  1526  05 Feb 85
BC-ONEPOT 1stadd
NYT NEW YORK: chicken stock.
    1. Preheat the oven to 350 degrees.
    2. Sprinkle the meat with salt and pepper. Heat the oil in a Dutch
oven over high flame and brown the meat on all sides. Remove the meat
from the pot. Add the onions and garlic and stir periodically until
the onions are brown. Season with salt and pepper to taste.
    3. Stir in the flour and the beer. Add the saffron, cinnamon and
cloves. Bring to a boil. Add the tomato paste, bay leaf, thyme and
chicken stock. Put the meat back in the pot, bring to a boil, cover
and simmer in the oven for about 2 hours and 15 minutes or until
done. To test this, pierce the meat with a carving fork. If the fork
comes out clean without effort the meat is done. Slice the beef and
serve in a deep dish with the cooking liquid.
    Yield: 6 to 8 servings.
    
Lamb and White Beans With Vegetables
     1 tablespoon vegetable oil
     4 pounds of lamb stew from the leg or shoulder, cubed
     Salt and pepper to taste
     2 cups coarsely chopped carrots
     2 cups coarsely chopped onions
     1 tablespoon chopped garlic
     2 bay leaves
     1 teaspoon dried thyme
     1 cup white wine
     1 cup crushed canned tomatoes
     1 tablespoon tomato paste
     3 cups chicken stock
     8 cups water
     1 pound white beans, soaked in water overnight
     1 carrot, peeled
     1 whole onion pierced with a clove
     1 garlic clove, peeled
     1 cup water
      1/2 cup chopped parsley.
    1. Preheat the oven to 350 degrees.
    2. Heat the oil in heavy cast iron skillet over high heat, add half
of the meat to the pot and brown on all sides. Season with salt and
pepper. Remove the browned meat cubes from the pot, set aside, and
brown the rest. When that is browned, add the the other half to the
pot along with the chopped carrots, onions and garlic. Season with
one bay leaf and thyme and cover with the white wine, tomatoes,
tomato paste, chicken stock and water. Bring to a boil, cover and
simmer in the oven for 1 hour.
    3. Meanwhile place the beans in a large pot, add the carrot, the
onion pierced with the clove, the remaining bay leaf and garlic
clove. Cover with water and season with salt. Bring to a boil, cover
and simmer for about 1 hour or until soft.
    4. Drain the beans and reserve 1 cup of the cooking liquid, the
carrot and the onion. Add the beans, carrot and onion to the lamb
with the reserved cooking liquid. Return the pot to the oven and cook
15 minutes longer. Remove the pot from the oven and check for salt
and pepper. Sprinkle with chopped parsley and serve.
    Yield: 8 to 10 servings.
    (MORE)
    
nyt-02-05-85 1825est
n076  1533  05 Feb 85
BC-ONEPOT 2dadd
NYT NEW YORK: 10 servings.
Poached Capon With Pistachio Stuffing
     1 nine-pound capon, including the gizzard, liver and heart
     4 cups coarsely chopped bread crumbs (about 8 slices)
      1/4 cup chopped shallots
     1  1/2 cups finely chopped onions
     2 teaspoons finely chopped garlic
      1/4 cup coarsely chopped Italian parsley
     2 teaspoons dried tarragon
     1 whole egg
      1/4 cup milk
      1/2 cup pistachio nuts
     Salt and pepper to taste
     4 cups chicken stock
     2 bay leaves
     1 teaspoon dried thyme
     2 onions, coarsely chopped
     10 black peppercorns
     2 garlic cloves, peeled and chopped
     4 sprigs parsley tied together
     3 leeks, cut lengthwise into half-inch strips
     2 cups chopped celery
     2 cups whole baby carrots, about 24
     10 ounces brussels sprouts
     1 cup orzo.
    1. Chop finely the gizzard, liver and heart of the capon. Combine
this in a mixing bowl with the bread crumbs, shallots, onions,
garlic, parsley, tarragon, egg, milk, pistachios, salt and pepper.
Mix well.
    2. Rinse the inside of the capon and pat it dry. Fill the cavity
with the stuffing and truss securely.
    3. Place the capon in a large kettle or stockpot. Cover with chicken
stock and enough water to cover. Add the bay leaves, thyme, onions,
peppercorns, salt, garlic cloves and parsley sprigs. Bring to a boil,
cover and simmer for 1 hour.
    4. Add the leeks, celery, carrots and brussels sprouts. Cook 30
minutes more. Add the orzo and cook 15 minutes more. The total
cooking time should be one and three-quarter hours. Turn off the
flame and let stand for 15 minutes. To serve, carve the capon and put
it on a platter with the vegetables, orzo and the stuffing. Degrease
the cooking liquid and serve it as a soup course. (Optional: Place
some cooking liquid and vegetables in a shallow bowl and lay slices
of capon on top.)
    Yield: 8 to 10 servings.
    
Veal Shanks With Oriental Vegetables
     1 veal shank, about 3 pounds
     4 garlic cloves, cut lengthwise into three strips
     Salt and pepper to taste
     2 tablespoons butter
     3 cups chicken stock
     2 cups water
     1 tablespoon light soy sauce
     1 cup white wine
     1  1/2 cups scallions, cut into 1-inch pieces
     5 cups kale, coarsely chopped, about 5 cups
      1/2 head Chinese cabbage, coarsely chopped, about 5 cups
     3 parsnips, cut lengthwise into 3 or 4 strips
      1/2 cup chopped fresh coriander
      1/2 pound snow peas
     1  1/2 cups bean sprouts.
    1. Make small incisions all over the veal shank and insert strips of
garlic. Sprinkle salt and pepper over the meat.
    2. Melt the butter in a large kettle over medium-high heat. Sear the
veal on all sides but do not brown. Add the chicken stock, water, soy
sauce and wine. Bring to a boil, cover and simmer for 1 hour and 15
minutes. Add the scallions, kale, Chinese cabbage and parsnips. Cook
for 15 minutes. Add the coriander, snow peas and bean sprouts and
cook for 5 more minutes. Serve.
    Yield: 6 servings.
    
nyt-02-05-85 1832est
n077  1541  05 Feb 85
AM-MARKET
(BizDay)
By NICHOLAS D. KRISTOF
c.1985 N.Y. Times News Service
    NEW YORK - Most stocks rose modestly Tuesday, and broad indexes of
the market's performance again set records.
    The Dow Jones industrial average, however, fell 4.85 points, to
1,285.23, in turbulent trading.
    The Dow was up to 1,296.27 in early trading before beginning its
retreat. ''The Dow is understating the strength of the market,'' said
John D. Connolly, chairman of the investment policy committee at Dean
Witter Reynolds. ''We're seeing the continuation of a very broad
market rally.''
    For their part, the New York Stock Exchange composite index and the
Standard & Poor's 500-stock index reached all-time highs for the 10th
time in 12 sessions. The exchange composite index was up 0.26 point,
to 104.42, while the 500-stock index gained 0.26, to 180.61.
    A reflection of the market strength was the heavy volume, of 143
million shares. It was the 19th consecutive trading session in which
volume exceeded 100 million shares. The previous record was 11
sessions, set almost exactly a year ago, according to William M.
LeFevre, a market analyst with Purcell, Graham & Co.
    The ebullience of the market is changing the pattern of the
best-performing equities, according to some experts.
    ''Last fall the best groups in the stock market were essentially
defensive stocks that are characteristically high-yield, such as the
utilities and telephone companies,'' Connolly said. ''Now the
best-acting groups are the growth stocks, like high technology. That
means the whole character of the market is changing from a defensive
market to an aggressive one. In a defensive market, you're trying to
lose less; in an offensive market you're trying to make more.''
    Technology offerings turned in a mixed record Tuesday. The
International Business Machines Corp. tumbled 1 1/8, from its all-time
high, to 136 1/2, and Texas Instruments fell 1 5/8, to 126 7/8. But the
Digital Equipment Corp. continued to shine, rising 2 1/4, to 124 1/8, as
did Data General, leaping 2 1/2, to 74 1/2.
    Phillips Petroleum, the most active stock on the New York Stock
Exchange, was one of the biggest gainers. It rose 3 1/8, to 50 1/4, with
5.1 million shares trading hands, after the investor Carl Icahn
announced an offer for the company.
    Unocal was the second-most-active and an even bigger gainer, also on
rumors of a takeover. It jumped 5 3/8, to 47 3/4, on a volume of almost 3
million shares.
    Brokerage houses were another group that did well, also in heavy
volume. Merrill Lynch rose  7/8, to 35 5/8, Phibro-Salomon jumped  3/4, to
41 1/4, and Paine Webber soared 1 1/2, to 42 1/2. Investors expect the
brokerages to benefit from the heavy trading volume.
    And most analysts seem to believe the rally will keep up its pace.
When there is a pause or modest dip, many say, investors will rush
into the market to take advantage of what they believe will amount to
a temporary lull.
    ''A lot of people are feeling pretty nervous about being left
behind,'' said Harold A. Mackinney, chairman of the investment policy
committee at Fleet National Bank in Providence, R.I. ''They're being
drawn out of reserves and into the stock market. So I think it feeds
itself. It doesn't have to stop at 1,300. I wouldn't be surprised if
it went to 1,500.''
     Mackinney bases his optimism on the price-earnings multiples, which
he says now average about 10. But after adjusting for inflation they
should rise to at least 11 or 12, he said, closer to their historical
levels.
    Stocks of some smaller, more speculative companies continued to
out-perform blue chip offerings Tuesday. The American Stock Exchange
jumped 1.17, to 226.72, while the Nasdaq index rose 1.95, to 282.72.
Analysts said these stocks, which had been depressed for most of last
year, were gaining steam. In January, over-the-counter and Amex
stocks rose more sharply than most of the better-known issues on the
New York exchange.
    
nyt-02-05-85 1841est
n078  1552  05 Feb 85
BC-WINE-TALK 2takes
(LIVING)
By FRANK J. PRIAL
c. 1985 N.Y. Times News Service
    NEW YORK - In principle, hearty dishes call for hearty wines. Paired
with a braised beef or a lamb stew, an older Bordeaux can easily lose
its nuances, while some of the lighter Burgundies will lose their
taste altogether, so overwhelming is the one-pot meal. What is
needed, then, are wines that are assertive and uncomplicated.
    To answer this need, Americans could choose among any number of
California wines, New York wines, Spanish wines or Italian wines. The
dishes offered here, however, are essentially French. Let the wines,
then, be French, too.
    Perhaps one of the best guides, unintentionally so, and one of the
most entertaining can be found in the annals of the fictional Chief
Inspector Jules Maigret of the Police Judiciare. In a hundred or more
of his novels, Georges Simenon made oblique references to Maigret's
meals, which, like the good bourgeois he was, M. Maigret invariably
took at home, from the kitchen of one of the most famous cooks in
French literature - Mme. Maigret. A few years ago, the French writer
and critic Robert Courtine extrapolated some 150 of these references
to meals and assembled a book of recipes as he thought Louise
Maigret, who came from Colmar in Alsace, would have prepared them.
    In the novel ''Madame Maigret's Own Case,'' for example, the chief
inspector comes home to their walk-up on the Boulevard Richard-Lenoir
after a trying day. ''The chicken,'' the reader is told, ''was on the
fire along with a beautiful red carrot, a big onion and a knob of
parsley with the stalks sticking out.'' A classic poule-au-pot -
chicken in the pot. After giving the recipe, Courtine suggests,
''With the poule-au-pot, Maigret drank Madiran.''
    Madiran is a wine from the southwest of France, not much seen in
this country. It rivals Cahors as the deepest-colored, longest-lived
wine from that region and is usually coupled with the cassoulets, the
white-bean stews, of Toulouse, the capital of that part of France.
Madiran can be drunk at two or three years of age. It is at its best,
however, when it is between five and 10 years old. Steven Spurrier,
who runs L'Academie du Vin in Paris, calls it ''a classic country
wine.'' He is right; it is perfect for this kind of dish.
    In ''Maigret and the Informer,'' the chief inspector takes his wife
to a local restaurant. They have coquilles St.-Jacques and cote de
boeuf braisee. With the beef, Courtine surmises, they drink Chateau
Leoville-Las-Cases, which is a second-growth Bordeaux. What could
Courtine have been thinking, recommending such an elegant wine? No
matter. A Leoville-Las-Cases from 1978, 1979 or 1981, to name a few
available and recent vintages, would have held up very nicely to the
braised beef. These three vintages sell in the $15 to $20 range. If I
was going to have a Bordeaux, however, I would have preferred a
Pomerol, such as Chateau Nenin, which is softer and less austere.
    In ''Maigret and the Headless Corpse,'' the chief inspector calls
home to say he has been detained but asks what he is missing. Says
Mme. Maigret, ''Haricot de mouton'' - in other words, a lamb stew.
     Courtine gives a recipe anyway and suggests that, had he been able,
Maigret would have accompanied this meal with a bottle of Chinon.
Chinon is a sturdy red wine from the Loire, made mostly from the
cabernet franc grape. It turns up in the United States from time to
time; if this is not one of those times, try substituting a Rhone. I
would
suggest a Gigondas, from the area near Chateauneuf-du-Pape. It is
full-bodied, rich, sometimes a bit peppery and never too expensive.
Most important, it will hold up with the strong lamb.
    In ''Maigret's Revolver,'' the inspector and his wife dine with old
friends, the Pardons. They have brandade de morue, a cod puree. With
it they drink Hermitage blanc, a wonderful choice. This big, powerful
white wine will have no trouble holding its own with the fish and
oil. White Hermitage is not cheap, however; a 1978 from Guigal is
about $25 in New York. A white '82 Chateauneuf-du-Pape from
Beaucastel, $14, or perhaps even a good white Cotes du Rhone - there
are several available in the $4 to $5 range - would be excellent and
less expensive alternatives.
    Maigret seems never to have enjoyed a fish stew, or matelote de
lotte. We can, however, and with it we should consider drinking
Burgundy, even though the twinning of red wine and fish seems out of
the ordinary. A red wine was used in the sauce, was it not? And since
that red wine was a Burgundy, it makes sense to complement the sauce
with another Burgundy in the glass.
    (MORE)
    
nyt-02-05-85 1851est
n079  1556  05 Feb 85
BC-NYT-BUDGET-05 Addsked
Add N.Y. Times News Service sked for papers of Wednesday, Feb. 6,
1985:
    
INTERNATIONAL
    Cairo - EGYPT - President Mubarak of Egypt criticized Israel Tuesday
for not withdrawing immediately from Lebanon and for failing to be
more ''flexible'' in the search for peace. By Judith Miller.
    
NATIONAL GENERAL
    Washington - CORPS - The secretaries of defense and interior have
rejected a proposal by the Office of Management and Budget to merge
the two federal agencies responsible for water projects, the Corps of
Engineers and Bureau of Reclamation. But the budget office indicated
Tuesday that it did not intend to take no for an answer. By Philip
Shabecoff.
    New York - COLUMBIA - Columbia University has agreed to sell the
11.7 acres of land it owns under Rockefeller Center to the
Rockefeller Group, the Rockefeller family's investment company, for
$400 million. By Maureen Dowd.
    Washington - STAFF - Donald Regan, the White House chief of staff,
on Tuesday announced a series of high-level staff appointments that
he said were designed to adjust the operations of the White House
more to his administrative sytle. By Gerald Boyd.
    Denver - SPEED - The 55 mph speed limit, which passed its first
decade in force last year, has often been called the most widely
broken national law since Prohibition. Yet the law has attracted
broad public support and attempts in some states to repeal it within
their borders have failed. By Iver Peterson, in Issue and Debate form.
    New York - WESTMORELAND - Developments in the general's suit against
CBS. By M.A. Farber.
    
    Gary E. McCardell is in the slot. Should you have questions about
the news report, you may reach him at (212) 556-1927.
    
nyt-02-05-85 1855est
n080  1601  05 Feb 85
BC-WINE-TALK 1stadd
NYT NEW YORK: the glass.
    I would prefer something from the Cote de Beaune, something with a
lot of flavor but less body than the bigger wines of the slopes
farther north - for example, a '79 Cote de Beaune Villages from
Pierre Ponnelle at about $10.
    As for veal, well, like any good Frenchman, Maigret ate veal in
every style: blanquette, fricandeau, veal birds, everything. He seems
never to have eaten veal with Oriental vegetables, however. My own
choice with that meat and vegetable dish would be gewurztraminer,
preferably of the great 1983 vintage, whose wines turned out to be as
big and rich and powerful as some California wines. Gewurztraminer is
often touted as an excellent match for Chinese food - more often, I
think, because there is nothing better. The classic French dish, veal
shank, with the unexpected Oriental overtones could be the one-pot
meal this wine has been waiting for.
    Thinking about wines to accompany that most familiar of one-pot
meals, the beef stew, I turn from notes on Georges Simenon's novels
to Georges Blanc's poultry judging last year at a local fair. The
setting was Bourg-en-Bresse in the eastern part of France, where
Blanc, the chef-owner of the three-star restaurant bearing his name,
was rating chickens. In the late afternoon, the officials and judges,
some of whom were as famous in the food world as Blanc, descended on
a local restaurant. It was an old-fashioned place where local
shoppers and shopkeepers dropped in for lunch.
    The owner served beef stew in huge bowls. Great chefs who, in a few
hours, would be preparing exquisite and comparatively delicate
cuisine for appreciative gastronomes, tucked away this homely fare
and washed it down with local wine served in thick tumblers.
    The wine was Bugey. It comes from the Ain department of France,
which is where Bourg-en-Bresse and Vonnas, Blanc's town, are
situated. Blanc would not dream of serving Bugey at his
establishment, but that afternoon, amid the laughter and warmth of an
unassuming restaurant, it seemed to rival the great wines of the Cote
d'Or.
    
nyt-02-05-85 1900est
n081  1610  05 Feb 85
BC-BUDGET-TAXES
(Newhouse 016)
By SUSAN B. GARLAND
Newhouse News Service
    WASHINGTON - President Reagan has kept a campaign promise by
proposing a fiscal 1986 federal budget without an income tax
increase, but the budget does forecast $57 billion in new revenues
through other new taxes, new user fees and projected economic growth.
    The budget sent to Congress this week also includes several
revenue-losing measures that the administration has supported in the
past. They include ''enterprise zone'' tax incentives to spur
economic development in depressed neighborhoods, tax credits for
parents who send their children to private schools, and tax-free
college savings accounts.
    The administration proposes a series of new or higher fees. They
include raising fees on mortgage loans from the Veterans
Administration and the Federal Housing Administration; imposing new
fees for using national parks and recreation areas; imposing fees on
harbors and inland waterways to cover the cost of operation; and
imposing fees on recreational and commercial mariners to recover some
Coast Guard costs.
    The administration would raise fees on coal production used to
finance black lung disability benefits and impose a $100 fee on
taxpayers and tax-exempt organizations seeking rulings on their tax
status.
    The proposed budget for the fiscal year beginning next Oct. 1
reaffirms the administration's support for limits on the amount of
employer-paid health insurance premiums that employees receive
tax-free; and for expanding limits on individual retirement accounts,
or IRAs, for married couples when only one spouse works outside the
home. These proposals will be part of a tax reform package that
Reagan says he will send to Capitol Hill, and were not included in
the budget's revenue projections.
    ''The (tax reform) proposals will not be a scheme to raise taxes -
only to distribute their burden more fairly and to simplify the
entire system,'' Reagan said in a message accompanying the budget.
''By broadening the base, we can lower rates.''
    The budget assumes receipts in fiscal 1986 of $793.7 billion,
compared with an estimated $736.8 billion in fiscal 1985. Individual
income tax are projected to rise by $29.2 billion to $358.9 billion;
corporate income taxes by $7.7 billion to $74.1 billion; and Social
Security taxes by $21 billion to $289.4 billion.
    The $57 billion in new receipts is far more than the $14 billion
increase in proposed spending increases, but total receipts under
Reagan's budget still would fall $180 billion short of total outlays
of $973.7 billion in fiscal 1986.
    Since Reagan took office in January 1981, several major tax laws
have been enacted, and his latest budget proposal calculates that the
combination of tax cuts and increases in these laws will account for
$131 billion in total tax reductions in fiscal 1986. By 1988, the
revenue loss will reach $167.2 billion; the deficit in that year is
expected to be $144 billion.
    The first tax law, the Economic Recovery Tax Act of 1981, provided
for individual income tax cuts and accelerated depreciation of
capital expenditures. The legislation accounts for a projected $210
billion in revenue loss in fiscal 1986 and a $283 billion loss in
fiscal 1988.
    The 1981 legislation carried out Reagan's campaign promises to cut
business taxes and spur investment by cutting corporate income taxes
$42.1 billion in fiscal 1986. But later tax changes increased
business taxes for an overall reduction of $9.3 billion in fiscal
1986.
    The latest tax legislation, the Deficit Reduction Act of 1984, will
raise $15.9 billion in revenue in fiscal 1986. The provisions include
raising the excise tax on distilled spirits, changing the
depreciation period for real property, revising income-averaging
methods, and restricting tax benefits of property leased to
tax-exempt organizations.
RB END GARLAND
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1909est
n082  1613  05 Feb 85
BC-NYT-ADVISORY FrontPage
    Editors, FYI, The N.Y. Times 1st edition PageOne dummy for
Wednesday, Feb. 6, 1985:
    
TOPS
    Washington - Fuerbringer - Stockman calls military retirment ''a
scandal''; other remarks on budget. BUDGET, priority.
    Washington - Weinraub - A preview of Reagan's State of the Union
address. REAGAN, exclusive, priority.
    3-col cut senators vote on Meese nomination; atop story.
    Washington - Gwertzman - U.S. threatens retaliation against New
Zealand refusal of U.S. Navy vessel. ZEALAND, in preparation.
    
FOLDS
    Washington - Werner - Judiciary panel, 12-6, approves Meese
nomination to be attorney general. MEESE, priority.
    New York - Doud - Columbia Universtiy to sell land under Rockefeller
for $400 million. COLUMBIA, priority.
    
BOTTOMS
    3-col layout symbolic signing of treaty in Tunisia, ending Punic
Wars between Rome and Carthage; no story.
    New York - Gottlieb - More on company accused of illegal demolition
of building in Times Square area. YORKDEMOLISH.
    Cairo - Miller - Mubarak, in response to Peres remarks, criticizes
pace of Israeli withdrawal from Lebanon. EGYPT, priority.
    
REEFERS
    New York - Cole - Icahn makes bid for Phillips Petroleum, amid
reports of other, friendly, takeover offers. PHILLIPS, priority.
    Denver - Peterson - Issue and Debate on the 55 mph speed limit.
SPEED, moved.
    
nyt-02-05-85 1912est
n083  1624  05 Feb 85
AM-LIBYA
Libya Releases Four Britons Held for Eight Months
By R.W. APPLE Jr.
c. 1985 N.Y. Times News Service
    LONDON - Libya Tuesday released four Britons who had been had held
for eight months in a diplomatic dispute arising out of the shooting
of an unarmed police constable in London last April.
    The four, two of whom had never been formally charged, were turned
over to the Archbishop of Canterbury's special envoy, Terry Waite,
after a news conference at the People's Palace in Tripoli. They had
to sit through a lengthy preamble by a government spokesman, Mohammed
Alhijazi, before learning that their ordeal was at an end.
    With the prisoners' families watching the news conference, which was
televised live in Britain, Alhijazi maintained the suspense until the
last moment. Speaking through an interpreter, he said that 80 per
cent of the Libyan People's Congresses, a kind of parliament, had
wanted to impose strict conditions on the men's release - including
the release of Libyans detained in Britain, a demand that Prime
Minister Margaret Thatcher would probably have refused to meet.
    But then, as the cameras focused on a portrait of Col. Moammar
Khadafy, the Libyan leader, giving a clenched-fist salute, the
spokesman declared: ''We can say that the decision is to release the
British prisoners. Henceforward they are free either to stay here or
to leave for any other country.''
    The four were taken by Waite to a Tripoli hotel to rest, recuperate
and talk to their families by telephone. They are expected to fly to
London on Thursday or by Friday at the latest, according to Hugh
Dunnachie, the British consul in Tripoli, but there have been hitches
in the negotiations before, and Thatcher pointedly urged the Libyans
in a statement in the House of Commons ''to complete the formalities
quickly'' so that the Britons could leave the country.
    ''There was always uncertainty,'' said one of the men, Robin
Plummer, a 33-year-old telephone engineer, ''but we felt we would be
released eventually. You have to find things to do. The most
important thing is to keep your mind occupied. We had puzzles - all
that sort of thing. Now all I want to do is disappear for a while.''
    The other three captives were Michael Berdinner, 52, an English
lecturer; Alan Russell, 49, also an English teacher, and Malcolm
Anderson, 27, an oil engineer. Only Russell, who was accused of
possessing state secrets and communicating with the British
Broadcasting Corp., and Anderson, who was accused of attempted
smuggling because he was carrying 15 letters from colleagues as he
attempted to board a plane, were ever formally charged.
    Their arrests came after Britain broke diplomatic relations with
Libya in the wake of the murder last April of Yvonne Fletcher, a
police constable on duty outside the Libyan Embassy in St. James's
Square. The shots that killed her were fired from within the embassy,
but the British police permitted all of the occupants of the building
to go free after a prolonged siege because of diplomatic immunity
rules.
    Waite, a 45-year-old Anglican layman, is an imposing figure, 6 feet
6 inches tall. He negotiated the release of three British
missionaries held in Iran last year and entered the Libyan case after
more conventional efforts had failed. Shy and by his own admission
sometimes naive, he nevertheless appears to have a special knack for
gaining the confidence of highly suspicious political leaders.
    After an initial meeting with Khadafy on Christmas Day, he returned
several times to Tripoli to negotiate. On Sunday, he was told that
the four Britons would be released on Monday, but the turnover was
delayed for 24 hours, apparently because Thatcher unveiled a plaque
in memory of Fletcher last week. Jana, the Libyan news agency,
accused the prime minister of an attempt to ''revive hatred.''
    Waite said that ''every promise made to me has been kept,'' and he
thanked Khadafy ''for the trust you have placed in me.''
    Some of the relatives of the four Britons expressed bitterness at
what they termed the inaction of their government. Anderson's wife,
Andrea, 27, said that ''if it hadn't been for the marvellous efforts
of Terry Waite and the church, Malcolm and the others would still be
in confinement.''
    In making his announcement, Alhijazi, secretary of the People's
Affairs Committee of the General People's Congress, ommitted all
mention of the conditions he had cited earlier. Nor did he offer any
explanation as to why his government had not complied with the wishes
of the 1,752 congresses - 83.16 per cent of the total -- that had
decided that the men should be released only on certain conditions.
The rest of the congresses either voted for unconditional release or
opposed release on any terms.
    
nyt-02-05-85 1923est
n084  1632  05 Feb 85
BC-BUDGET-HIKES
(Newhouse 017)
By ROBERT GETTLIN
Newhouse News Service
    WASHINGTON - Although President Reagan's new budget proposes an
array of domestic spending cuts and even would eliminate some
programs, the plan also details sizeable spending increases for
Congress, the federal courts, and some White House agencies.
    Under Reagan's $973.7 billion budget for fiscal 1986, which begins
Oct. 1, virtually every domestic program and federal agency faces
curtailed spending. And such programs as the Small Business
Administration, urban development grants, Amtrak subsidies, revenue
sharing, Job Corps training, and mass transit subsidies would be
ended altogether.
    While the budget has sparked criticism from both Republicans and
Democrats in Congress, nothing has been heard on proposed increases
in the legislature's own spending.
    According to figures in the president's 1986 budget, spending for
the legislative branch would rise to $1.93 billion, an increase of
8.3 percent from this year's level.
    Although the figures are detailed in the Reagan proposal, they
really are a restatement of spending figures drawn up by the House,
Senate, and their support agencies. Under law, the White House can't
review spending proposals of the legislative branch as it does of the
various departments and agencies.
    Any legislative spending cuts must be made by Congress itself as
part of its annual budget approval process.
    That process will be complicated somewhat by the president's plan
for an overall freeze on government spending in 1986. In making that
proposal, he is seeking an automatic 10 percent reduction in the
legislative branch spending detailed in the budget.
    ''We believe that our budget already is very lean,'' said Ray
Colley, deputy clerk of the House of Representatives. ''But the House
and the Senate will look carefully at how to cut further.''
    Colley noted that some of the increase is due to cost-of-living
raises for members and their staffs. Also, he noted that agencies
included in the legislative budget - such as the Library of Congress,
the Government Printing Office and the General Accounting Office -
are used by other parts of the government as well as the public.
    The printing office's spending would rise 12.6 percent to $121.6
million, while the budget for the accounting office would increase
12.8 percent to $328 million.
    Still, one of the biggest increases in Congress' budget is in
official mailing costs, a controversial item particularly in an
election year like 1986. Such spending would rise 68.4 percent to
$144.5 million.
    Postage costs, earmarked for members of the House and Senate to send
newsletters and other materials to constituents, will rise partly
because of an increase in U.S. postal rates. But congressional
officials have said they also expect an increase in volume of mail
because of next year's elections.
    For the White House and the Executive Office of the President, the
budget calls for a slight decrease in spending to $111 million from
$117 million this year.
    In the another branch of government, the judiciary, the budget for
the federal courts would rise $106 million or 10.3 percent over 1985,
according to the president's budget.
    The budget details spending of $1.13 billion, to operate a system
that includes magistrate offices, bankruptcy courts, U.S. district
courts, appeals courts and the Supreme Court, and various support
agencies of the judiciary.
    The relatively large increase is due in large part to 85 new federal
judges who are expected to be appointed by fiscal 1986, according to
the Administrative Office of the U.S. Courts.
    ''About 60 percent of the new spending is attributed to the big
increase in the filing of cases in the federal courts as well as
probation cases and related matters,'' said a spokesman for the
administrative office. ''The rest is for salaries for the new judges,
clerks and other personnel.'' BJ END GETTLIN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 1932est
n085  1640  05 Feb 85
AM-INDIA
East German and Polish Diplomats Accused in Government Secrets Case
By SANJOY HAZARIKA
c. 1985 N.Y. Times News Service
    NEW DELHI - The government said Tuesday that it was taking
''appropriate action'' action against two diplomats from Poland and
East Germany who were named as recipients of Government secrets by a
key suspect in a widening espionage case here.
    On Monday, a court spokesman said that the suspect, a businessman
named Coomar Narain, had told a magistrate that he spent 25 years
passing various industrial, military and political secrets. He said
that ''every kind of document'' involving government secrets had been
given to Poland, East Germany and France. His statement was the first
naming any Soviet bloc nations in the case, in which nearly a dozen
Indian officials have been implicated.
    They are suspected of handing over secret information regarding
India's military plans, the situation in the Punjab and sensitive
economic and industrial documents.
    An Indian commentator reported Tuesday that New Delhi had moved
against Narain's East German and Polish contacts by ordering them out
of the country. However, the commentator, G.K. Reddy did not identify
them as diplomats.
    Tuesday, an official spokesman refused to say whether the Pole and
the East German would be expelled from the country or recalled by
their governments. His only comment in response to questions was to
say that ''investigations are continuing, along with appropriate
action.''
    Reflecting a view that is widely shared here, Reddy added that much
of the secret information that Narain had passed may have been
funneled separately to Washington and Moscow through his contacts.
    Neither the East German nor the Polish diplomat has yet been named
by officials, although Narain was said to have identified them by
name. The French envoy cited by Narain was reported to be France's
former deputy military attache here, Col. Allain Bolley. The colonel
returned to Paris last month after he was identified as a key member
of the spy ring; the French ambassador has been recalled.
    Polish and East German spokesmen said here that no diplomat from
either country had been asked to leave. The East German official,
Rolf Lais, said that he had no further comment on the issue.
    ''We are very busy preparing for our prime minister's visit,'' said
the Polish spokesman, Ryszard Uniwersal. He said he knew nothing of
the case except what he had read in Indian newspapers. The Polish
leader, Gen. Wojciech Jaruzelski, is to arrive in India Feb. 11 on an
official visit to this country and the issue may figure in talks
between him and Prime Minister Rajiv Gandhi.
    Earlier this month, Gandhi was reported to have told intelligence
offiials not to hesitate to detain or move against any person, no
matter how highly-placed, in connection with the case's prosecution.
At least 15 arrests have been made in connection with the case,
including six members of the prime minister's secretriat, four
businessmen and five other junior government officials.
    More arrests are expected this week, based on the statements of
Narain and four others. Three other people have said they are
prepared to volunteer statements on their involvement in the
espionage ring, the biggest such scandal in India since independence.
    
nyt-02-05-85 1939est
n086  1756  05 Feb 85
BC-BAKER-COLUMN
Commentary)
OBSERVER: Spring Before Swine
By RUSSELL BAKER
c. 1985 N.Y. Times News Service
    NEW YORK - Because of all the morbid interest in the press these
days, I am often asked what is the most disagreeable aspect of the
journalist's trade. At one time my answer would have been ''covering
the Thanksgiving Day parade,'' a chore that can forever maim the
spirit of any person not easily moved to superlatives by vast
quantities of inflated rubber.
    Later I amended this judgment after being sent to work in
Washington. There the journalistic code required ''objectivity,''
which forbade a reporter to write of, say, Senator Blattis: ''Lying
as usual, Senator Blattis declared today ... ''
    This obligation to assist in dignifying inferior men was even more
dispiriting than the obligation to gush with enthusiasm for rubber
floats. It made you feel inhuman, as though you were nothing more
than a megaphone for the convenience of frauds.
    Last Saturday I again had occasion to revise my opinion of the
horrors of the journalist's life. That day, bedridden and near death
of a flu that left me too weak to resist, I was subjected by
insensitive kin to a day of television that my fevered brain was
powerless to block from its memory bank. It was Groundhog Day.
    All day long it was Groundhog Day. Far into the night - Groundhog
Day. No television news outlet had overlooked the great story. Time
and again, I heard it repeated: Groundhog Day had been among us.
Consequences would ensue.
    Here I become foggy about details. Somewhere in someone's otherwise
inoffensive town a groundhog had either cast a shadow or not - that
is, the sun was either shining or not - and as a result there would
or would not be six weeks of winter to be tolerated before spring
arrived.
    Even now with my fever down to a comparatively sensible 105 degrees,
I cannot remember how the groundhog's shadow influences
meteorological developments. Does shadow-casting sunlight mean
prolonged winter, or is it the other way around, and who cares
anyhow, except the American press? (you can't blame television for
this groundhog idiocy; our TV brethren are simply carrying on a story
created by the print business.)
    I was 6 years old when I first heard of Groundhog Day. An uncle who
was ill at ease with children, but was trying hard to be a good
fellow, told me about it. Even at the gullible age of 6, I could tell
the whole business was nonsense. I could tell that my uncle thought
it was nonsense, too.
    Why was this sensible man - a man sensible enough to be ill at ease
with children - telling me this nonsense? I wondered. I have since
concluded that he was telling me because he had read about it in a
newspaper and probably thought it was a piece of American folklore
that uncles ought to pass down to future generations, even if it was
nothing but rot.
    I conclude as much because years later I myself was tempted to tell
a nephew the same thing when he asked why they interrupted ''Howdy
Doody'' for a bulletin about a groundhog's shadow. ''This is American
folklore, and I ought to lay it on the kid,'' I said to myself, but
didn't since, being ill at ease with children, I didn't want him to
think I was also an imbecile.
    Also I couldn't remember whether the shadow meant instant spring or
six more weeks of winter, never having bothered to get it straight
since in my part of the world when it's February 2 anybody who
doesn't expect at least six more weeks of winter is automatically
defined as stupid.
    While suffering the Groundhog Day onslaught Saturday, I realized I
had finally discovered the most disagreeable aspect of the
journalist's trade: Groundhog Day. Every year, in blind obedience to
some antique creed about what constitutes news, poor wretched
journalists must trudge off to do the groundhog-shadow story and
miserable defeated editors must display it on their pages and tubes
in utter indifference to sensible suspicion that the world could not
care less.
    The groundhog story survives because the unthinking assumption that
makes it a cute and amusing story is rarely challenged by an editor
or reporter willing to say that the story is tiresome, foolish and
trite.
    Unfortunately, it is not only in tolerating the harmless foolishness
of the groundhog story that the press shows mental fatigue. A more
serious ''groundhog'' story is the annual Washington tale of the
making of the Pentagon budget, which is invariably reported as a
struggle among the Titans for the soul of the nation and thrWashington this wee-
k to prepar for
the visit.
    High on the list of topics to be discussed is economic and military
aid to Egypt. Asked whether he was satisfied with the $2.3 billion
aident with
the Soviets, and continued strong economic growth.''
    The White House also announced staff changes for Reagan's second
term in office, including a new communications director, Patrick J.
Buchanan, a former speechwriter for the Nixon administration.
    An underlying theme of the State of the Union Message, officials
said, will be an effort by the president to reach ''all Americans,''
including members of minority groups, some of whom have attacked the
administration's social welfare policies and budget cuts.
     Reagan, who asserted last month that some black leaders had
distorted his record, is expected to emphasize his endorsement of an
array of programs helping minority groups. These include fair
housing, employment training for minority youth and the creation of
jobs through the suspension of the minimum wage fery,'' said one administration
official, but will also raise the prospects of spurring a
comprehensive Western approach to agricultural programs in Africa in
order to make nations there self-sufficient and avert mass hunger and
famine.
    ''What the speech will stress is the idea that we are now able to
create a more safe world, a more a peaceful world, a world that's
more free,'' said the official. ''He wants that to be a legacy.''
    Specifically, Reagan will press for the administration's plan for $4
billion worth of new MX missiles and $3.7 billion in research on
defenses against overall nuclear missiles.
    Actual proposed spending for the military will increase 12.7
percent, or 8.3 percent after making up for inflation, under the
administration's $973.7 billion budget. On the other hand, Reagan,
seeking to reduce $50 billion from the deficit, wants to kill 26
subsidy programs and cut back and freeze most of the rest of the
domestic budget.
    White House aides said that although Reagan, in the foreign policy
portion of his remarks, would briefly discuss many areas of the
world, he would concentrate on Central America.
    According to an administration official, Reagan will seek national
support for his policy in Central America, including covert aid to
Nicaragua's rebels, by emphasizing, among other things, the region's
geographic proximity to the United States.
    ''The argument is, and the argument to be made in the speech is, we
need to defy Soviet-supported aggression,'' the official said. ''The
Sandanista government persecutes its people, the Church. We need to
aid those that are interested in freedom in Nicaragua.''
    ''This is essentially the choice Congress has to make,' the official
said. ''Either we support the democratic forces who struggle there as
tied to our own security, or we face the consequences at som...
(End missing.)
n999  1756  05 Feb 85
. . .e future
date.''
     Reagan is also expected to talk of the future in specific terms,
such as embarking on a space program that would open the way for
private investment and the development of medicines and computer
chips in space. The president also plans to discuss the development
of high-technology industries, and efforts to spur employment in
newer fields outside traditional or dying businesses.
    On the domestic side, officials said the dominant themes would be
Reagan's effort to shrink the size of the government, reduce the
deficit with cuts in domestic spending and an aggressive effort to
reform and simplify the tax code.
    ''The speech reflects Reagan's vision of America,'' said one White
House aide. ''It's filled with his optimism, his commitment to basic
values, his commitment to budget reduction and tax reform. He's going
to sound as optimistic as he always is. It's one of the hallmarks of
the man.''
    
nyt-02-05-85 2055est
n095  1807  05 Feb 85
AM-PHILLIPS
(BizDay)
By ROBERT J. COLE
c.1985 N.Y. Times News Service
    NEW YORK - Carl C. Icahn, the New York financier, offered Tuesday to
buy the Phillips Petroleum Co. for $8.1 billion. He valued the
leveraged buyout at $55 a share, half in cash and the other half in
notes. He also threatened that, if Phillips turned that offer down,
he would try to take over the company anyway.
    Icahn, who already owns 7.5 million shares of the company, gave
William C. Douce, Phillips's 65-year-old board chairman, until the
close of business Wednesday to accept or reject his buyout, a plan
using the company's own cash flow to pay off the debt incurred in the
offer.
    In a two-page letter to Douce, made public by Phillips, Icahn said
his source of financing, the Wall Street house of Drexel Burnham
Lambert, was ''highly confident'' it could raise the $4.05 billion in
cash he needed for the offer by Feb. 21 - if it could begin Wednesday
and if Phillips would be ''cooperative.''
    He asked Phillips, subject to his arranging financing by Feb. 21, to
postpone its stockholder meeting of Feb. 22 to vote on the
recapitalization and to call a new meeting ''at which shareholders
can choose between our offer and yours.''
    Icahn said, however, that he would ''gladly step aside'' if Phillips
sweetened its own plan to restructure the company and agreed to buy
all of the company's stock for a package of securities worth $55 a
share. He said his advisers, the Donaldson, Lufkin & Jenrette
Securities Corp., had valued a package of securities currently being
offered by Phillips at only $42 a share.
    By contrast Goldman, Sachs & Co., which is not known to have any
role in the situation, valued the package at slightly more than $46.
    If, on the other hand, Icahn said, Phillips did not change its
refinancing package, which it values at $53 a share, he would ask
stockholders to vote it down and ''promptly'' make a tender offer to
buy the company. Icahn said he would offer $55 a share in cash for 51
percent of the company's 154.6 million shares outstanding and seek
the rest for $55 in securities.
    In a letter to Icahn, which Phillips also made public, Drexel noted
that the Icahn tender offer would be conditioned on stockholders'
defeating the Phillips recapitalization. Under those circumstances,
Drexel said, it was also confident it could raise the money to
finance such a deal.
    Without using the word, Icahn said he would not accept greenmail,
that is, would not sell his stock to the company unless the same
offer was made to all shareholders.
    Phillips was believed to be hastily convening a directors meeting by
telephone to consider what it called the ''unilateral action'' amid
indications that the company was skeptical that Icahn would be able
to raise the money. It is expected to fight Icahn tenaciously.
    Nevertheless, with Wall Street professionals convinced that Icahn
would force some sort of action by Phillips or that some other big
buyer would step in and outbid him, Phillips surged $3.125, to
$50.25, with 5.1 million shares changing hands.
    At least five oil giants, meanwhile - Exxon, Standard Oil of
Indiana, Atlantic Richfield, Royal Dutch-Shell and British Petroleum
- are thought to be waiting for an invitation from Phillips, the
nation's 11th-largest oil company, to make a friendly takeover bid.
Wall Street sources said that an unidentified ''foreign
conglomerate'' was also ''looking for a mandate'' to bid for
Phillips, which it would take to be the case if the Phillips
recapitalization were defeated.
    The Icahn proposal came a month and a half after Phillips spread
gloom in Wall Street by making peace with T. Boone Pickens, the Texas
oilman, who tried to take over the company.
    In a surprise settlement that caused Phillips stock to plunge nearly
$10 the day before Christmas, Phillips agreed to pay Pickens $53 a
share in cash for his group's stock in the company in exchange for a
15-year truce.
    Phillips said it would then sell a controlling interest in the
company to employees. And to placate investors, Phillips announced a
recapitalization plan to buy back 38 of each 100 remaining shares for
bonds it valued at $60.
    Analysts said, however, that while the value of the remaining shares
would be critical to assessing the overall worth of the Phillips
package, it was difficult to put a price on Phillips stock so far
into the future.
    Icahn said he had ''absolutely no objection'' to the employees'
buying the company but, underlining the word ''all,'' he said he was
''strenuously'' opposed to ''the board not allowing shareholders to
receive a fair price for all their shares.''
    He maintained that ''If I can do a leveraged buyout for Phillips at
$55 per share, a group which has the tax advantage of an employee
incentive stock ownership plan should easily do as well. If you raise
your offer so that you acquire all the outstanding Phillips shares
for a package worth $55 per share, I will gladly step aside.''
Explaining Icahn's reference to tax advantages, analysts said that
lenders do not have to pay taxes on half the income from loans to
employee stock plans, thus enabling such plans to borrow at
subsidized interest rates.
    
nyt-02-05-85 2107est
n096  1816  05 Feb 85
BC-FINDIGEST Undated
(BizDay)
c.1984 N.Y. Times News Service
    A digest of business and financial news for Wednesday, Feb. 6, 1985:
    
The Economy
    President Reagan urged Congress to press on toward less government
and sustained growth by enacting his new budget. He faulted the
Federal Rerserve, saying it contributed to the severity of the
1981-82 recession and last month's slowdown in the economy. On
specific programs, the president espoused the further deregulation of
industry. The president, in Wednesday's State of the Union message.
is expected to emphasize deficit reduction and tax simplification.
    
    Lower interest rates will accompany cuts in the deficit, Paul A.
Volcker told Congress. The Fed chairman also warned that the trade
imbalance is causing financial pressures worldwide.
    
    Detroit, with big inventories of small cars, is offering incentives
to lure buyers. Companies are also giving incentives on pickup trucks
to try to keep their market share. Sales of new American-made
automobiles were strong in late January.
    
Companies
    Carl C. Icahn offered to buy Phillips Petroleum for $8.1 billion. He
valued the offer at $55 a share, half in cash and half in notes and
said he would still try to take over the company if Phillips turned
the offer down. The investor gave Phillips until the close of
business today to respond. But he said he would ''gladly step aside''
if Phillips sweetened its plan to restructure the company.
    
    Another surge in travel to Europe is in the making, and the airlines
are scrambling to add flights for summer.
    
    Asarco recorded a $236.3 million deficit in the fourth quarter,
after a previously announced charge of $216 million. It earned $11.7
million in the 1983 quarter. Tenneco profits plunged 46.1 percent
after a writedown, to $130 million from $241 million.
    
    Eastern Air plans to resume pay cuts of 18 percent to 20 percent
because of a lack of progress in negotiations with its largest union.
That union said it may go back to court to press a suit against the
carrier for earlier extending the concessions.
    
    IBM introduced two disk drive models that it said improved on the
performance of older models by about 15 percent.
    
    Columbia University agreed to sell Rockefeller Center land to the
Rockefeller family for $400 million.
    
Markets
    Stocks continued to march higher Tuesday. The Dow Jones industrial
average fell 4.85 points, to 1,285.23, but broader measures set
record highs for the 10th time in 12 days. Volume, which was 143.9
million shares, exceeded 100 million for the 19th consecutive
session, by far the longest stretch of nine-digit share turnover.
Advances outnumbered declines on the Big Board by 1,005 to 627.
    
    The dollar hit more records but fell back in late trading. It
achieved highs against the Italian lira, French franc and Spanish
peseta. Aggressive intervention by Japan's central bank curbed the
dollar's advance against the yen. Paul A. Volcker, chairman of the
Federal Reserve Board, told a congressional committee in Washington
that intervention runs counter to fundamental market forces and will
not succeed in the long run. Gold was listless, closing unchanged in
New York at $302 an ounce.
    
    Interest rates fell slightly as the first leg of the Treasury's
three-part note and bond financing was well received by investors.
Late in the day, the Treasury announced that it sold $7.25 billion of
new 10 3/8 percent three-year notes at an average yield of 10.40
percent, down from 11.01 percent at an auction in November.
    
    Frozen pork belly prices soared in hectic trading. Corn and soybeans
gained; wheat fell.
    
nyt-02-05-85 2115est
n097  1827  05 Feb 85
AM-BUDGET
Some 'Woodshed' Talk on Service Pensions, Farm Aid
By JONATHAN FUERBRINGER
c.1985 N.Y. Times News Service
    WASHINGTON - David A. Stockman, the budget director, Tuesday called
the military pension system a ''scandal,'' and he said that the
military would put its pensions ahead of national security.
    ''Institutional forces in the military,'' he said, ''are more
concerned about protecting their retirement benefits than they are
about protecting the security of the American people. When push comes
to shove, they'll give up on security before they'll give up on
retirement.''
    Stockman told the Senate Budget Committee that rather than slowing
the president's proposed military budget to reduce the deficit,
Congress should move to curtail the military pension program, which
is projected to cost $17.8 billion in 1986, up from $7.3 billion in
1976.
    Opening the administration's defense of President Reagan's 1986
budget on Capitol Hill, Stockman, head of the Office of Management
and Budget, also made combative remarks about farm price supports. He
said that the current credit squeeze on farmers was much their own
doing and he did not see why taxpayers should bail them out, but that
''blackmail'' by their supporters in Congress would probably force
the administration to produce a relief package.
    The president himself, in an optimistic report on the economy's
performance over the last four years, urged Congress Tuesday to press
on with his goals of smaller government and sustained growth by
enacting his new budget.
    In three hours of give-and-take with the senators, Stockman made his
most spirited appearance before Congress since 1981. The senators
were occasionally stunned into silence by his bluntness.
    ''We now have a budget that is a trillion dollars in its
dimension,'' Stockman said in one extemporaneous answer, ''that is a
blooming, buzzing mass of programs, projects, commitments and
purposes responsive to the needs of our society.''
    Acknowledging that the choices before Congress were complicated,
Stockman, a former Republican representative from Michigan, said the
budget was ''bolstered with a mountain of claims and counterclaims of
every kind that are most difficult to sort out.''
    Of the military retirement program, Stockman said, ''It's a scandal,
it's an outrage.''
    ''I've been unable to get anything done on military retirement
downtown,'' he said. He urged the committee to ''call in the Joint
Chiefs of Staff and ask them what they're going to put into the kitty
by supporting a reasonable, moderate military retirement reform
plan.''
    Stockman was apparently venting his frustration with the Pentagon's
resistance to consider any changes in the military pension system,
which covers about 1.33 million people. Although the quadrennial
review of military compensation was completed last year, Defense
Secretary Caspar W. Weinberger has yet to forward any recommendations
to the president.
    ''I''ll probably be in hot water for saying it,'' Stockman added,
''but I'm going to say it because it's about time it was said.''
    Asked later if the president shared his opinion, Stockman said, ''I
don't think so. I only stated a personal opinion.''
    The Pentagon made no direct response to Stockman's comments about
the military pension system, but a spokesman, Maj. Pete Wyro, said it
had argued that the current system was ''essential for retaining high
quality individuals in the miltary.'' Critics argue that the system
is too generous, noting that it allows a member of the military to
retire after 20 years with a pension equal to 50 percent of his or
her salary.
    A lieutenant colonel retiring after 20 years would get a pension of
$1,706.70 a month, according to Wyro. The pension for a master
sergeant would be $909.
    The $17.8 billion projected cost for the pension program in 1986
assumes there will be no cost of living increase. As part of his
budget cuts, the president has proposed eliminating the increase for
one year, with a projected savings of $491 million.
    With the administration preparing to ask Congress to scale back farm
income stabilization, Stockman took on farmers, farm programs and
their supporters in Congress. He said they had the ''least claim'' on
the budget but had ''the greatest budget excess in the last five
years.''
    He upstaged the attack on the president's budget by Sen. Howard M.
Metzenbaum, D-Ohio, by taking the senator's props and using them to
rebut the senator's criticisms.
     Stockman likened advocates of a military budget freeze to Rip Van
Winkle. ''After five years of voting for nearly all of the program
elements which drive the 1986 budget cost, they now shout, 'The
number is too big,''' he said. He challenged the committee and
members of Congress to stop talking about figures and produce an
alternative military budget, to show where they would make cuts in
weapons and other programs that Congress approved in the last four
years.
    Stockman conceded that the president's military budget would likely
be trimmed by Congress. But he called proposals to freeze the
military budget ''unrealistic'' in light of the commitments Congress
has approved in the last four years. Referring to the president's
request for a $314 billion military appropriation in 1986, Stockman
said, ''You may not need the $314, I'll grant that.'' nn
    
nyt-02-05-85 2126est
n098  1834  05 Feb 85
AM-BUDGET ADDATEND
NYT WASHINGTON: grant that.''
    The committee chairman, Pete V. Domenici of New Mexico, said, ''We
cannot give the president the defense request that he recommends.''
    Stockman's comments about the farm situation came in response to a
question from Sen. Robert W. Kasten, R-Wis., a major dairy state.
Kasten asked when the administration would come forth with a credit
relief package for farmers.
    ''For the life of me,'' Stockman said, ''I can not figure out why
the taxpayers of this country have the responsiblity to go in and
refinance bad debt that was willingly incurred by consenting adults.''
    ''I don't see why we have the responsibility to step in,'' he added.
''Why it is any different from small businesses, hundreds of
thousands of them go out of busineess every year; the 1,000 savings
and loans that have closed since 1980, the hundreds of thousands of
people who lost ther jobs in the auto industry when it had to shrink
down in order to become competitive again. I don't see the
difference.''
    But he conceded that something will be done. ''We'll probably going
to have to do something because the drumbeat, the political demand is
so great,'' he said.
    ''Because basically we're threatened with a kind of blackmail
situation. Do something for us now, refinance all this bad debt or
we're not going to allow the farm program to be reformed. I think
it's a sad day that those kinds of threats are being made.
    ''But it's sure a bad way to start the process of trying to get our
fiscal house in order where the one group that has the least claim on
the budget - farming is a business, it doesn't need subsidies any
more than any other business - the one group that has had the
greatest budget execess in the last five years, $60 billion of farm
subsidies in the last five years, starts the logrolling by demanding
more.''
     Kasten countered by arguing that the administration supported
assistance for the International Monetary Fund, while being
''unwilling to come to any kind of rescue to small and medium sized
farmers.'' Then he insisted that Stockman say when the credit relief
plan would be agreed to.
    Stockman said the agreement would come when we ''get some help when
it comes time to biting the bullet on dairy price supports.''
    ''They're clearly too high,'' he said, ''we can't afford to spend $2
billion stockpiling cheese.'' He said the administration also needs
help ''in getting getting the wheat price supports down.''
    ''We are going to bite the bullet on this farm program,'' Stockman
said, ''and protect in the transition, Senator, the small producer
with a direct income payment of $20,000 a year. That is more than we
give anybody on welfare. That is more than we give many old people
who don't have anything else. Twenty thousand dollars a year for the
transition. And when we get some support, some encouragement on that
proposition we'll move forward on the credit bailout.''
    
nyt-02-05-85 2133est
n099  1835  05 Feb 85
AM-REAGAN Sub6thgraf
NYT: WASHINGTON:
    Sub for 6th graf: Reagan is xxx to businesses. (Subs word 'in' for
'to buy'.)
    
    Reagan is also expected to endorse for the first time programs
enabling low-income tenants in public housing projects to purchase
their units. At the same time Reagan plans to press his proposal to
revive blighted urban areas by providing federal tax and regulatory
relief to businesses.
    ''He's etc. picking up 7thgraf.
    
nyt-02-05-85 2134est
n100  1846  05 Feb 85
AM-ZEALAND
U.S. to Retaliate for Barring of Destroyer
By BERNARD GWERTZMAN
c.1985 N.Y. Times News Service
    WASHINGTON - The United States said Tuesday that it was considering
a range of retaliatory actions against New Zealand for its refusal to
allow a Navy destroyer to make a port visit next month.
    The warship's visit was to have occurred at the conclusion of joint
Australian, New Zealand and American naval exercises, which the State
Department announced Monday had been canceled.
    A firm American response was needed, beyond calling off the
maneuvers, the Reagan administration said, to demonstrate that allies
could not impose limits on the movements of American military forces
and get off ''cost-free.''
    A senior official said that the United States, to deter any other
allied countries from following New Zealand's example, was examining
the following areas: a suspension of sharing of intelligence and
other security information with New Zealand, an end to New Zealand's
preferential treatment on exports of lamb, wool and casein, and
release for sale on the world market of surplus American butter and
other dairy products to compete with those produced by New Zealand.
    After announcing that as a result of the New Zealand action, the
naval maneuvers, known as Sea Eagle, had been canceled, the
administration said it was weighing ''the overall implications'' for
future relations with New Zealand.
    Prime Minister David Lange rejected an American request for a visit
by the destroyer Buchanan because the United States would not
guarantee that the ship did not carry nuclear weapons. Lange's
seven-month old government has barred from its waters any ships
carrying nuclear weapons or propelled by nuclear power.
    Larry Speakes, the White House spokesman, described the cancellation
of the Sea Eagle exercises as only ''the first step.'' He said: ''We
are considering other actions we might take.''
    Prime Minister Bob Hawke of Australia, who arrived Tuesday afternoon
on a previously scheduled visit, will discuss with President Reagan
whether the United States and Australia will hold a substitute naval
exercise, Speakes said.
    Bernard Kalb, the State Department spokesman, said that the
consideration of further actions would be ''broad-ranging'' and would
include ''our overall cooperation'' with New Zealand.
    The sharp words used by the administration were in startling
contrast to the usual expressions of close relations between the two
nations. This has been particularly true since World War II, when
American troops were stationed in New Zealand and forces from the two
countries fought together, under American command, against the
Japanese. New Zealand also contributed a small unit to the
anti-Communist forces in the Vietnam War.
    Lange, in his recent statements, has maintained that his
government's policy of seeking a nuclear free zone was not
anti-American.
    One senior State Department official said that part of the reason
for the unhappiness with the Lange government was that the New
Zealanders had informally assured Washington that a way would be
found to allow continued visits by U.S. ships, but then did not do so.
    Lange and other New Zealand officials have said they want their
country to remain a member of the South Pacific alliance, known as
ANZUS. But Kalb, in seeking to explain why the United States was
considering retaliatory action, said:
    ''We believe that alliances require interaction of military forces
and equitable burden sharing. Some Western countries have
anti-nuclear and other movements which seek to diminish defense
cooperation among the allied states. We would hope that our response
to New Zealand would signal that the course these movements advocate
would not be cost-free in terms of security relationships with the
United States.''
    He was alluding to the anti-nuclear movements in Japan and Western
Europe, which have pressed their governments to bar American nuclear
forces. Japan officially bans nuclear weapons, but under an ambiguous
relationship with the United States does not demand to know if a
particular ship carries nuclear weapons.
    Norway and Denmark, members of NATO, do not permit the deployment of
nuclear weapons on their territory in peace time, but like Japan they
do not raise problems for American Navy ships in their waters, State
Department officials said.
    The sense of crisis over the ANZUS alliance was unique because
through the years, this security pact has been virtually unnoticed in
Washington.
    Unlike NATO, the ANZUS nations have no integrated defense structure,
or forces specifically dedicated to their defense. Foreign ministers
meet every summer to consider matters of general interest, and there
are periodic consultations among military commanders and regular
military exercises.
    
nyt-02-05-85 2145est
n101  1857  05 Feb 85
AM-FLUTIE
(Sports)
By MICHAEL MARTINEZ
c.1985 N.Y. Times News Service
    NEW YORK - The security guards looked like offensive linemen. They
were broad-shouldered and formidable, packing walkie-talkies and
casually brushing aside photographers and reporters who blocked their
path to the podium. Hidden behind their massive bodies, partially
obscured from view but nicely protected in the pocket, strolled Doug
Flutie, the hottest property to hit New York since Trump Tower.
    The formal signing of Flutie's contract with the New Jersey Generals
had come Monday night in New Jersey, so this was simply his gala
presentation to the news media. A head of state couldn't have
attracted a larger crowd. The garden level of Trump Tower was filled
to capacity - included were members of Flutie's family; the Generals'
owner, Donald Trump; the coach, Walt Michaels, and the new U.S.
Football League commissioner, Harry Usher - and above, leaning over
the railings that overlooked the proceedings, stood several dozen
passers-by.
    Flutie, the celebrated 5-foot-9 3/4-inch quarterback from Boston
College, smiled broadly throughout the 50-minute news conference
Tuesday. He happily opened a gift-wrapped copy of the team's
playbook, presented by Michaels, and later performed the obligatory
task of holding up a team jersey with the No.22 he wore in college.
    Flutie saved his best moves for later, when questioning turned to
his possible promotion to the role of starter ahead of the veteran
Brian Sipe.
    ''How can I talk about playing or starting when I don't even know
how to call a play in the huddle?'' he asked. ''I'm going to be on
the bench as long as I deserve to be. There's no reason to forfeit a
game by putting in someone who doesn't know the plays. It's going to
take me quite a while to get adjusted to the offense.''
    Michaels took a similar stance, saying: ''We have to give him time.
You can't put anyone under the gun too soon or you'll be in trouble.
But as soon as he's ready to pull the trigger, we'll know.''
    At the same time, the General coach stopped short of handing the job
to the rookie - once Flutie becomes familiar with the offense.
''We'll have to see which one moves the team,'' Michaels said. ''A
player can have a kind of magic when he's on the field, and if he's
getting the results - if the team is winning - he'll be the one who
plays.''
     Flutie has already missed two weeks of twice-daily practice
sessions and will not play Saturday in an exhibition game at Tampa.
His earliest projected playing time would come in the Generals' final
exhibition game, Feb. 15 at home against Orlando.
    Although neither Michaels nor Trump would say that Flutie would
eventually become the team's starter, thereby putting Sipe on the
bench, the Generals' marketing department is already attempting to
capitalize on his value. A radio commercial that began airing on
several New York stations early Tuesday morning calls Flutie a
''miracle man'' who became ''the most prolific passer in college
history.'' The commercial is aimed at potential season-ticket buyers.
It does not mention Sipe.
    -
    ''He's a marketing director's dream come true,'' said Abe Goren, the
club's marketing director. ''He can make a lot of things happen, and
he makes a marketing staff's job a lot easier. He's like having a
cleanup hitter in there.''
    Season-ticket sales have picked up briskly since Flutie agreed to
the multiyear contract, valued between $5 million and $7 million, on
Jan. 25. According to Sy Eckstein, the team's vice president of
business, the Generals have sold 4,000 season-tickets, giving them a
total of 32,000, since Flutie committed himself to the contract. A
year ago at this time, Eckstein said, the team had sold 26,000 season
tickets on its way to a total of 35,000.
    Eckstein said he expected to reach a total of between 45,000 and
50,000 season tickets this season. The Generals play their home games
at Giants Stadium in East Rutherford, N.J., which has a capacity of
more than 76,000.
    -
    Pressure? Flutie said he felt none, that his only real concern was
the ''reaction of the players on the team. They're at the end of
double sessions and I'm just arriving in camp as a highly touted
rookie. But I'm going to have to go down there, and things are going
to have to work out.'' Flutie was to fly to Orlando, Fla., Tuesday
night and join the team in training. The season opener is Feb. 24 at
Birmingham, Ala., in a nationally televised game.
    Flutie just completed a 14-game college schedule and could now play
in 19 games with the Generals if he plays in the last exhibition game
and all 18 regular-season games. That would be 33 games in a 10-month
period. ''It'll be a long season,'' he said. ''It's already been
long. The question is, can I get up emotionally for it? I think I
can.''
    There were no regrets, he said, over choosing the USFL over the more
established National Football League. ''I didn't just take the money
and go to the USFL,'' he said. ''I evaluated the situation. I'd
rather be in New Jersey than Buffalo; I'd rather be in New Jersey
than Cleveland.''
    
nyt-02-05-85 2156est
n102  1910  05 Feb 85
BC-VECSEY-COLUMN
SPORTS OF THE TIMES
Tap-Dancing Between The Land Mines
By GEORGE VECSEY
c.1985 N.Y. Times News Service
    NEW YORK - In the gaudy gold atrium of the modestly named Trump
Tower, Walt Michaels was a linebacker in a high-roller's paradise -
as out of place as a coal shovel would have been in the Cartier shop
on the next floor.
    Michaels does his best work in dimly lit film rooms in the bunkers
of football stockades, yet he was called up for a command performance
in Donald Trump's gilded palace Tuesday. In that glittery public
setting, the gruff old football coach began his perilous skate on
thin ice, emitting a stream of consciousness on the subject of Doug
Flutie.
    Michaels has been handed the most attractive entity to join the U.S.
Football League in its two years of unnecessary but persistent
existence. Trump has signed the Little Fella from Natick for a mere
$5 to $7 million for five years.
    Even though his team is known as the New Jersey Generals, for some
unspecified reason Donald Trump chose to foresake the fabled towers
of East Rutherford, N.J., for the fading Borough of Manhattan
Tuesday. Did Trump expect Flutie to immediately begin throwing
64-yard game-winning touchdown passes? Trump batted his open,
innocent blue eyes and said, ''That's up to Walt.''
    Those words may some day join ''The check is in the mail,'' in the
lexicon of English-language verbal kisses of death. The funny thing
was, Walt Michaels thought it was up to him in the first place. He is
the coach, and he did, as he reminded people once or 13 times
Tuesday, ''win 14 games last year.''
    He won them with Brian Sipe, a professional quarterback who is even
now in good health and in residence at the Generals' camp in Orlando,
Fla. In Michaels's 34 years of football, to which he made consistent
reference Tuesday, that tenure makes Sipe the regular quarterback
unless proven otherwise.
    But how could Michaels say so, without being hauled off the podium
and given the bum's rush into Fifth Avenue by the assorted security
men in dark suits squiring Flutie through the rabble Tuesday?
    Michaels is not known as an articulate man. In his last months as
coach of the New York Jets in the closing days of the 1982 season, he
was often obscure to team and public alike. But on Tuesday he
responded to Trump's call with a monologue that was almost Stengelian
in its clarity and vision.
    Tap-dancing between the land mines, Michaels began by comparing
Flutie to Joe Namath, whose coming 19 years ago legitimized the New
York Jets and the American Football League more than any other event.
    ''Not once but twice in my life I have seen a conference like
this,'' Michaels began. ''Almost 20 years ago, we had all these stars
coming out of college and, fortunately, we got the right one. He
created new jobs, new identity, for many people. Again, we have a new
star. Again, we have a new league. The question is, can we give the
public what they're looking for? That's our job as coaches.''
    Having done the noted pirouette for Donald, Michaels then performed
the ever-touching ''To Thine Own Self Be True'' adagio. With a
child-like smile on his face, Michaels told the multitude, ''I want
to tell you about football. Doug missed two weeks of two-a-days. An
old pro would say, 'Ideal,' but for a young man, it's not so easy.''
    This ballet had props. The old linebacker had brought a copy of the
Generals' playbook, which he called ''The Bible,'' and he presented
it to the Little Fella. Still smiling, Michaels said: ''By the time
you get to the plane, you'll have it memorized. If you do, you'll be
all right. By the way, it's a $1,000 fine if you lose one.''
    Flutie handled the issue of his becoming a regular with the same
nimblefootedness he displayed in four delightful seasons for Boston
College. He took the cue from Michaels and professed all the proper
respect for Brian Sipe's position, for the advantages of experience.
    ''My first day in camp, I've got to learn how to call a play in the
huddle,'' he said.
    After the glitzy part of the unveiling, Michaels continued his dance
surrounded by a pack of journalists. He insisted he had not altered
his playbook, designed for an elderly, nonmobile quarterback, in
anticipation of Flittering Flutie.
    Michaels was reminded that there were reports last week that he
preferred Steve Calabria of Colgate, a larger, more orthodox
quarterback, to the Little Fella. ''Truthfully,'' Michaels began,
''we'd have liked five of the best quarterbacks, to have control of
them all. I checked 'em right down the line. Everybody made
announcements.''
    Yes, but had he really preferred Calabria to Flutie? Standing in the
maw of Trump Tower, surrounded by a million dollars' worth of network
hair spray, Trumpian gold paint and the caterers' fresh croissants,
Michaels didn't say yes and he didn't say no.
    ''Aw, there was a lot of jockeying for position,'' Michaels said.
    Asked if he wasn't afraid there will be screaming from the New
Jersey stands in case Flutie does not see action early in the season,
Michaels said, ''They won't have to be screaming unless we're losing.
The only reason they scream is if the other fellow's not doing well.''
    Not exactly, somebody said. Because Flutie is so attractive, and now
so expensive, the fans will want to see him early and often. But only
one fan will really count - the fan with the gilded checkbook.
    ''With the investment he has, we would play him because it's his
investment,'' Michaels said, referring to Trump, Flutie and Trump
again.
    But it won't be easy for Walt Michaels to bend that way if his
football judgment says otherwise. He is a refugee from coal country,
who says things like, ''When I worked on the farm, we used to say:
the cream rises to the top.''
    
nyt-02-05-85 2209est
n103  1918  05 Feb 85
AM-CHILE
U.S. to Abstain on Bank Loan to Chile
By JOEL BRINKLEY
c.1985 N.Y. Times News Service
    WASHINGTON - The United States intends to abstain when the
Inter-American Development Bank votes this week on a $130 million
loan to Chile, partly in protest of Chilean human rights violations,
Reagan administration and congressional officials said Tuesday.
    The vote would be the first time the Reagan administration has acted
in protest of the human rights situation in Chile, where on Saturday
a military state of siege was extended for another three months.
    An administration official said, ''We felt it was time to send a
signal,'' adding that the extension of the state of seige was ''the
main catalyst.''
    A congressional aide who was informed of the decision said: ''A lot
of members up here were putting on pressure to make a stand, and this
was one of the few forums where we could send a signal.'' Chile
receives no U.S. aid.
    At the same time, a State Department official said human rights
considerations were not the only factor in the decision to abstain on
the vote, which could take place Wednesday.
    ''There were economic considerations, too,'' he said, ''including
whether they could make good use of the loan.''
    The money is to be used to help Chilean industry recover from the
effects of the recent recession, and it is expected to be approved
despite the U.S. abstension.
    Administraton and congressional officials have expressed increasing
concern over the measures President Augusto Pinochet has taken
against his civilian opponents. In addition to the state of siege,
the government has censored the press, arrested numerous civilian
opponents and sent others into internal exile.
    In December the administration said it was concerned that Chile
could turn into ''another Nicaragua'' if the situation worsened to
the point that it helped Chile's radical left, including the
Moscow-aligned Communist Party.
    Under the Carter administration, the United States voted against
eight loans to Chile, in protest of human rights violations. But as
recently as November, after the state of siege was imposed, the
Reagan administration said it would not oppose several pending loans
to Chile. However, at that time, one official said that ''a hard
look'' was being taken at Chile because of the ''recent
deterioration'' of human rights.
    -
    The congressional aide said that the Chilean government was informed
of the decision to abstain last weekend, and that Chile's
representative to the bank said Chile would proceed with the loan
request anyway.
    Also Tuesday, a State Department official said the human rights
situation has improved sufficiently in Guatemala in the last year
that the administration has renewed its request to Congress to
approve about $10 million in military aid.
    Last year, the administration asked for $10.3 million in military
assistance to Guatemala, but Congress approved only about $300,000,
citing human rights problems.
    The Guatemalan government has been accused of arresting, torturing
and killing members of the nation's Indian population. In 1983, the
United States protested when several Guatemalans associated with the
U.S. Agency for International Development were killed. American
officials said at the time that government forces were involved.
     A State Department official said Tuesday that ''the situation seems
to be getting better, especially with elections coming up.''
    
nyt-02-05-85 2217est
n104  1927  05 Feb 85
BC-ADVISORY-newhouse-closer
    The Newhouse News Service can be reached at 202-383-7800.
    
    
NEWHOUSE NEWS SERVICE REPORT OF TUESDAY, FEBRUARY 5, 1985
    
    
WASHINGTON
    
    REAGAN-SCRAMBLE (Benson - Newhouse) As President Reagan celebrates
his 74th birthday and delivers his State of the Union message to
Congress, White House aides are scrambling in three directions at
once: selling a controversial budget to a defiant Congress, mapping
strategy for arms talks with the Soviets, and reorganizing the
president's staff. From Washington. 800. (Newhouse 015).
    
    BURNOUT (Young - Newhouse) Job burnout isn't something that remains
at work. Burnouts bring their anger and frustrations home, with
unhappy and sometimes devastating results for their families. Is
burnout a contributor to teen suicides? From Washington. For weekend
use. 1,000. (Newhouse 003, 004).
    
    DEFENSE-CUTS (Wood - Newhouse) The question facing Congress and
embattled Defense Secretary Weinberger this week is not whether
Congress can cut the Pentagon's budget, but whether it can do so
wisely. A growing number of defense officials and some congressmen
believe it cannot. From Washington. 800. (Newhouse 011).
    
    BUDGET-HIKES (Gettlin - Newhouse) The Pentagon wouldn't be the only
beneficiary of increased funding under President Reagan's proposed
new federal budget - Congress, the federal courts and White House
agencies involved in national security matters all would get more
money. From Washington. 650. (Newhouse 017).
    
    BUDGET-TAXES (Garland - Newhouse) President Reagan's proposed new
budget forecasts $57 billion in new revenues next year - the result
of earlier tax changes, proposed new user fees and predicted economic
growth. From Washington. 650. (Newhouse 016).
    
    SPERMICIDE (Grande - Newhouse) Hundreds of thousands of women get
pregnant while using a contraceptive jelly that is supposed to kill
sperm. The case of one whose daughter was born with major birth
defects is sending shock waves through the scientific community. From
Washington. 1,000. (Newhouse 005, 006).
    
    
DOMESTIC
    
    BERGMANN (Myers - Newhouse) Philosophy Professor Frithjof Bergmann
has what might seem a preposterous idea - reducing Americans'
workyear to only six months on the job. But auto company executives,
college presidents and union leaders have been listening to Bergmann
carefully of late. From Ann Arbor, Mich. 900. (Newhouse 008, 009).
    
    PROFIT-SHARE (Espo - Newhouse) United Auto Workers union leaders say
General Motors employees are angry about lower-than-expected profit
sharing payments in the face of record earnings. From Flint, Mich.
450. (Newhouse 007).
    
    
ENTERTAINMENT
    
    REVIEW-''WITNESS'' (Freedman - Newhouse) ''Witness,'' starring
Harrison Ford, is a beautifully observant, warmly felt tribute to a
simpler way of life by Australian director Peter Weir. Undated. Film
review, for use when ''Witness'' opens at local theaters. 600.
(Newhouse 001).
    
    RHODEN (Reeves - Newhouse) Sculptor John Rhoden, who has roamed the
world making art, returns to Birmingham, Ala., for the first
exhibition of his work in his home town. From Birmingham, Ala. 1,300.
(Newhouse 012, 013).
    
    ARTS-TOMASSON (Belt - Newhouse) Iceland's Helgi Tomasson has retired
as a dancer from the New York City Ballet to become artistic director
of the San Francisco Ballet. From San Francisco. Arts column, for
weekend use. 750. (Newhouse 014).
    
    
LIFESTYLE
    
    WORDS (unsigned - Newhouse) The ''gas goblin'' bread ... Whatever
happened to the Roman months Quintilis and Sextilus? ... The origins
of ''mediocre'' and ''Appalachians.'' Undated. Take Our Word for It
column. 700. (Newhouse 002).
    
    CONVERSATIONS (Wilson - Newhouse) The literary interview can get
rather rough, says Charles Ruas, author of ''Conversations With
American Writers'' - as when Truman Capote broke Humphrey Bogart's
elbow. Undated. 650. (Newhouse 010).
    
    
GOOD NIGHT FROM THE NEWHOUSE NEWS SERVICE
    
    
RW END
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-05-85 2226est
n105  1937  05 Feb 85
BC-TAX-IX 2takes
(Ninth in a series of 12 on preparing '84 tax returns)
By GARY KLOTT
c.1985 N.Y. Times News Service
    NEW YORK - The already attractive features of Individual Retirement
Accounts and the Keogh retirement plans for self-employed workers
have been enhanced this year. For Americans putting money aside for
their retirement, the changes will provide opportunities for even
bigger tax deductions on 1984 returns.
    Taxpayers will find that custodial fees charged by financial
institutions to manage IRA and Keogh plans are now eligible for a tax
deduction. And self-employed workers will find the contribution
limits on Keogh plans have been sharply increased.
    But along with the new benefits has come a tighter deadline for IRA
contributions to qualify for a deduction on 1984 returns, and a new
filing requirement for self-employed individuals with Keogh plans.
All workers now have only until April 15 to set up IRA's, to deposit
money into the accounts and to claim a deduction for that
contribution on 1984 tax returns.
    Last year, taxpayers were permitted to make deposits after the April
15 deadline as long as they requested an automatic extension to file
their return. This enabled many to claim an IRA deduction on their
tax return, leisurely wait for a refund check, and then use it to
make an IRA deposit.
    This year people can still claim a deduction on the return before
the contribution is made, but it must be made no later than April 15
- even if a filing extension is requested. Thus, only those filing
quite early can count on getting a refund check in time to make an
IRA deposit.
    The new restriction, enacted by Congress last summer, does not
affect contributions to Keogh plans, which can still be made up to
the due date of the return - which can be later than April 15 for
those with an extension to file. But in contrast to IRA's, Keogh
plans must have been established by last Dec. 31 for a 1985
contribution to qualify for a deduction on a 1984 return.
    Any worker can make a tax-deductible contribution of up to $2,000 a
year into an IRA. Working spouses can each contribute up to $2,000 in
earnings, for a combined $4,000 maximum contribution. One-income
couples can contribute $2,250.
    Beginning with the 1985 tax year, Congress authorized alimony
payments to be treated as compensation eligible for a contribution to
an IRA. Thus, divorced spouses can contribute up to $2,000 to an IRA
this year and claim a deduction on their 1985 returns.
    Furthermore, the Internal Revenue Service recently ruled that in
addition to the deduction for IRA deposits, investors could deduct
the custodial fees for those accounts. The IRS said that if the fees
are separately billed and paid for, the amount can be deducted as an
investment expense. The same applies to Keogh plans. But accountants
say that commissions do not qualify under either account.
    Money in an IRA or Keogh plan is allowed to grow tax-free. As a
result, earnings grow and compound at a much faster pace than do
those from comparable investments that are taxable.
    Only when funds are withdrawn from the account does the money become
taxable. But withdrawals would presumably take place when the
individual is retired and typically in a lower tax bracket.
Withdrawals before age 59  1/2 carry a 10 percent penalty on top of the
regular tax, unless the individual is disabled.
    Self-employed individuals, including employees who have income from
a sideline business, will find that the limits on tax-deductible
contributions to Keogh plans have been increased to $30,000, or 20
percent of earnings, whichever is less, from $15,000, or 15 percent
of earnings.
    But the new 20 percent limit does not apply to everyone. To be able
to contribute and deduct the full 20 percent, the taxpayer must have
what is called a ''money-purchase'' Keogh plan, which requires the
individual to contribute a fixed percent of income earned each year.
    For those who have ''profit-sharing'' Keogh plans - where the size
of contributions can vary each year - only a contribution of 13.043
percent of earned income can be deducted - less than the 15 percent
allowed under prior law.
    Thus, someone with net earnings of $100,000 could make a
tax-deductible contribution of up to $20,000 to a money-purchase
plan, but only a deductible $13,043 to a profit-sharing plan.
    While it is too late to help 1984 returns, tax accountants say that
those with profit-sharing plans may want to consider amending them to
take full advantage of the higher deductible contribution limits on
1985 returns.
    (MORE)
     nn
    
nyt-02-05-85 2236est
n106  1943  05 Feb 85
BC-TAX-IX 1stadd
NYT NEW YORK: 1985 returns.
    ''Those who want the maximum 20 percent deduction would have to
consider establishing a money-purchase plan in lieu of or in addition
to their profit-sharing plan,'' said Richard Stricof, a tax partner
at the accounting firm of Seidman & Seidman.
    Peter Elinsky, a tax partner at the accounting firm of Peat Marwick,
said he recommends that individuals have both types of plans. The
combination, he said, provides the most flexibility in deciding how
much to contribute each year, as well as the maximum tax deduction
possible. Most financial institutions offer both types of plans.
    The new limitations have created considerable confusion, even among
tax professionals, partly because of the way the new law is worded.
The law stipulates a limitation on deductible contributions of 25
percent of self-employment income on money-purchase plans and 15
percent on profit-sharing plans. Those figures appear in some tax
preparation guides. But the numbers are misleading because the
definition of self-employment income was changed to mean
self-employment earnings minus the Keogh contribution.
    Previously, the definition did not require subtracting the Keogh
contribution. Thus, the new formula requires a working knowledge of
algebra to come up with the maximum tax-deductible contribution an
individual can actually make.
    But tax accountants say the short-cut is simply to use the 20
percent figure of net earnings to determine the maximum deduction on
money-purchase plans and the 13.043 percent figure on profit-sharing
plans.
    For instance, someone with $100,000 in net income could contribute
up to 20 percent, or $20,000, into a money-purchase plan. (The
$20,000 represents 25 percent of self-employment income - $100,000 -
minus the $20,000 contribution.) The deduction would be $13,043 for a
profit-sharing plan.
    The Tax Equity and Fiscal Responsibility Act of 1982, which changed
these Keogh limits, also eliminated for 1984 tax returns a special
rule that had allowed those with self-employment earnings under
$5,000 to ignore the regular percentage limitations and contribute
100 percent of income, up to a maximum of $750, to a Keogh.
    In another change, individuals with Keogh plans covering only
themselves will now have to file a special annual report with the
I.R.S. just as larger plans have been required to do in the past.
Individuals have until July 31 to file Form 5500-C.
    
    Next: Tax shelters and vacation homes.
    
nyt-02-05-85 2242est
n107  1952  05 Feb 85
BC-CORPS
By PHILIP SHABECOFF
c.1985 N.Y. Times News Service
    WASHINGTON - The Secretaries of Defense and Interior have rejected a
proposal to merge the Army Corps of Engineers and the Interior
Department's Bureau of Reclamation, the two federal agencies
responsible for building dams and other water projects.
    However, the Office of Management and Budget, which made the
proposal, is apparently not willing to accept no as an answer. Edwin
L. Dale Jr., the spokesman for the budget office, said Tuesday that
''the matter is still open'' despite the position taken by Defense
Secretary Caspar W. Weinberger and Interior Secretary William P.
Clark.
    In a memorandum sent Friday to Edwin Meese 3d, the White House
counselor, Weinberger and Clark recommended that ''no action'' be
taken in response to a directiveby President
Reagan last month to consider consolidating the corps and the bureau.
Among the reasons cited by the two department heads in opposing a
consolidation were that there was ''little overlap'' between the
programs and that a merger would not save enough money to justify
such a move.
    The budget office proposed that the Reclamation Bureau be merged
into the Corps of Engineers's civil works program to eliminate
duplicate functions and facilities. Such a consolidation, the budget
office said, would lead to a savings of some $50 million a year.
    Several conservation groups have expressed support for the merger of
the two agencies in the belief that it would reduce the budget and
scope of federal programs to build what conservationists regard as
environmentally destructive water projects.
    Brent Blackwelder of the Environmental Policy Institute, a private
organization, said it hoped that funds freed by consolidating the two
agencies would be diverted to ''needy areas such as the protection of
groundwater and away from the big development mentality.''
    ''The Bureau of Reclamation has ceased to have a rationale as an
independent entity,'' Blackwelder asserted. ''Its mandate was to
settle and develop the West, but it would be difficult to argue now
that the federal government should subsidize growth in California and
Arizona.''
    Weinberger and Clark said in their memorandum that their evaluation
of the two agencies indicated ''little overlap between the programs
and jurisdiction of the bureau and corps,'' and that in only one
city, Sacramento, Calif., was there a substantial presence of both
agencies.
    The two department heads said their analysis showed that savings
projected by the budget office would not be realized and that the
''startup costs'' for consolidating the two agencies would be $40
million in the first year.
    The memorandum also said that ''major legislative action'' would be
necessary to consolidate the two agencies. ''Recognizing the far more
significant legislative agenda facing us over the next several
years,'' the two secretaries said, ''consolidation at this time will
significantly slow other, more pressing initiatives.''
    They concluded that, in view of their recommendation, there would be
no need for further review of the issue by the Cabinet Council on
Management and Administration.
    Richard Atwater, special assistant in the Interior Department's
Bureau of Reclamation, said that while ''superficially the two
agencies look alike because we both do water projects,'' they perform
mostly different functions.
    The main difference between the two agencies, Atwater said, is that
the corps' primary missions include flood control, erosion and
navigation projects, while the bureau is engaged primarily in
irrigation and hydropower activities.
    The Bureau of Reclamation, formed in 1902 under Theodore Roosevelt's
Administration to reclaim arid regions of the West, operates entirely
in 17 Western states. The Corps of Engineers, established 100 years
earlier to build fortifications, bridges and perform other
engineering services for the Army, operates throughout the country,
with more than half of its budget spent on projects in the East.
    In the current fiscal year, the bureau has a budget of $1.05 billion
and 8,200 employees, while the corps has a budget of $3.6 billion and
37,000 employees. Reagan's budget for the fiscal year 1986 calls for
$994 million for the bureau and $2.5 billion for the corps.
    
nyt-02-05-85 2251est
n108  1957  05 Feb 85
AM-CONTRAS
Nicaraguan Exile Rejects Role as Conduit for Arms Aid
By JAMES BROOKE
c.1985 N.Y. Times News Service
    NEW YORK - A Nicaraguan exile working to forge an umbrella
organization of opposition groups said Tuesday that the main civilian
group did not want the organization to serve as a conduit for United
States aid to anti-Sandinista guerrillas.
    Reagan administration officials were reported last week to be
considering whether to encourage the rebels to form an umbrella
organization that could openly receive military aid from the United
States.
    The United States gave almost $80 million in covert aid to the
guerrillas from 1981 until last year, when Congress cut off further
aid. Congress is to vote later this year on a $14 million
appropriation to the guerrillas.
    The Nicaraguan exile said he had taken part in four recent meetings
in Central America and in Miami between leaders of guerrilla groups
and leaders of political groups advocating peaceful change. He said
the leader of the largest civilian group, Arturo Jose Cruz, had taken
part in the meetings, with the goal of forming a loose coalition for
formulate political strategy.
    ''We do not want to serve as a political face for the armed
opposition,'' the exile said. ''We do not want to have anything to do
with money from Congress.''
    The exile said the most recent round of meetings, held in Miami last
weekend, included Cruz, Adolfo Calero, head of the most powerful
guerrilla group, the Nicaraguan Democratic Force, and Eden Pastora
Gomez, head of a rival group, the Democratic Revolutionary Alliance.
    Cruz was nominated by a three-party alliance to run for the
presidency in Nicaragua's elections last November, but he later
refused to register, saying that the elections were unfair.
     Calero directs 10,000 to 15,000 guerrillas operating from bases in
Honduras into northern Nicaragua. Pastora directs fewer than 5,000
guerrillas on a southern front in Nicargua's border area with Costa
Rica. Pastora's group divided last year and one of his principal
aides joined Calero's group.
    According to the Nicaraguan exile, the three opposition leaders were
unable to overcome their personal and political differences to reach
a power-sharing formula for an umbrella organization. He said
meetings would resume later this month.
    
nyt-02-05-85 2257est
n109  2007  05 Feb 85
AM-WESTMORELAND 2takes
By M.A. FARBER
c.1985 N.Y. Times News Service
    NEW YORK - Col. Donald W. Blascak, an Army intelligence officer who
is still on active duty, testified Tuesday that he believed Gen.
William C. Westmoreland imposed a ceiling on enemy strength estimates
in Vietnam in 1967 that led to a ''corrupt'' report for President
Johnson.
    Blascak testified at Westmoreland's libel trial against CBS in
Federal District Court in Manhattan that the 25-page report should
have put enemy strength at 500,000 to 600,000, twice what it
reported, and should have included the Vietcong's self-defense forces.
    David Boies, a lawyer for CBS, read the colonel a sentence from the
report that said ''current evidence does not enable us to estimate
the present size'' of self-defense forces.
    Q. Is that a true statement, sir?
    A. No, it is not. It's a very carefully packaged lie.
    David M. Dorsen, a lawyer for Westmoreland, leaped to his feet,
objecting. The answer was ordered stricken by Judge Pierre N. Leval.
    Blascak was only the second military officer on active duty to
testify in the 17-week-old trial, In 1967, the colonel was on
temporary assignment to the Vietnamese affairs staff of the Central
Intelligence Agency, where he met Samuel A. Adams, a CIA analyst who
is now a defendant in the case.
    Tuesday, Boies asked the colonel - a lean, bespectacled figure with
an iron-gray crewcut - whether, at the time, he had discussed with
Adams his feelings about the estimate for the White House of
Communist troop strength.
    ''I do not relish the answer to this question, but I must give it,''
said Blascak as an impassive Westmoreland studied him from a few feet
away.
    Blascak said he told Adams that ''at the very highest level'' of the
military command in Saigon ''there had to have been a ceiling placed
on the numbers.''
    Q. Did you tell Mr. Adams who was responsible at the highest levels?
    A. I find this very difficult.
    Q. I know you do, sir, but I must ask the question.
    A. I believe and I told Sam Adams that I felt General Westmoreland
had placed a ceiling on the figures and would not allow his analysts
to raise the estimate higher than that figure.
    Westmoreland was commander of U.S. forces in Vietnam from 1964 to
1968. His $120 million suit was prompted by a 1982 CBS Reports
documentary, ''The Uncounted Enemy: A Vietnam Deception,'' for which
Adams, who left the CIA in 1973, was a paid consultant.
    The documentary charged that, for political and public relations
reasons intended to show that the Vietnam War was being won, the
general's command engaged in a ''conspiracy'' in 1967 to understate
the size and nature of the North Vietnamese and Vietcong forces.
    Over the objections of the CIA, the program said, Westmoreland had
set an ''arbitrary ceiling'' of 300,000 on reports of enemy size,
mainly by removing the Vietcong's self-defense forces from the
official listing of enemy strength known as the order of battle and
insisting that a current number for them not be included in the
report for the president.
    Westmoreland testified last November that he deleted the Vietcong's
self-defense forces because he believed they posed no offensive
threat and could not be counted accurately and because their
inclusion in the order of battle at a high number would mislead
Washington and the press about the real might of the enemy. Those
forces had been newly estimated in 1967 at 120,000 - an increase on
paper, if not in the field, of 50,000.
    The only previous military witness at this trial who is not retired
was Col. John F. Stewart, who testified for Westmoreland. Stewart,
who served in Vietnam in 1967, is now the head of an intelligence
unit at Fort Bragg, N.C.
    Blascak, who has served 28 years in the Army, is now the senior
intelligence officer for V Corps, stationed in Frankfurt. He served
twice in Vietnam, in 1962 and 1965, and, during his duty at CIA
headquarters in Langley, Va. between 1966 and 1968, made a half-dozen
visits to the war zone.
    For three years following that assignment, while Westmoreland was
Army chief of staff, Blascak was an executive assistant in
intelligence management to Maj. Gen. Joseph A. McChristian, then the
Army's chief of intelligence. McChristian - who was Westmoreland's
intelligence chief in Saigon from July 1965 to June 1967 - is
scheduled to testify for CBS Wednesday.
    (MORE)
    
nyt-02-05-85 2307est
n110  2013  05 Feb 85
AM-WESTMORELAND 1stadd
NYT NEW YORK: CBS Wednesday.
    Blascak told the jury Tuesday that intelligence estimates of enemy
strength demanded ''total integrity'' and should be completely free
of ''political considerations.''
    During 1967, he said, he contributed to the preparation of the
special report for Johnson, working closely with Adams and George W.
Allen, who was then deputy chief of Vietnamese affairs for the CIA
and who recently testified for CBS.
    ''It was a very small office in terms of real estate, and it was
difficult to avoid anybody even if you might have wanted to,''
Blascak said. ''We were tight.''
    The colonel described Adams as possessing ''integrity and honesty I
have seen in few men since.'' Allen, he said, ''had only slightly
less time in Vietnam than Ho Chi Minh.''
    Blascak said that, like Adams and Allen, he believed the part-time,
hamlet-based self-defense forces, who wore civilian clothes, caused
thousands of American casualties through mines, booby traps and
regular arms. Those forces, he said, ''were the absolute base of the
insurgent movement.''
    ''An insurgency is much like an iceberg,'' the colonel testified.
''Only the top of it protrudes from the top of the water. The rest of
it is not easily seen, but it's there and it's the element that gives
you the most contentious problem because it's everywhere.''
    Blascak said he knew of no intelligence that supported the removal
of the self-defense forces from the order of battle in 1967. ''To the
contrary,'' he said. He said the estimate for the president - which
was ultimately approved by Richard Helms, the director of central
intelligence - ''did not convey an honest, truthful meaning'' and
served ''a terribly disuseful function'' by failing to alert the
White House to enemy capabilities.
    During cross-examination by Dorsen, Blascak seemed combative and
impatient. When Dorsen asked him whether he recalled certain enemy
strength figures being advanced by Westmoreland's command, the
colonel said: ''I don't know what a recollection is. I'm telling you
that the bottom line was 298,000, and that was 200,000 too low.''
    Blascak conceded that a range of strength for enemy forces of 50,000
to 200,000 would be too broad to be ''a useful figure.'' Earlier in
the trial, Westmoreland's lawyers had introduced a 1967 analysis by
the CIA station in Saigon that said the military's new estimates for
the self-defense forces ''have a probability of error of minus 50
percent and plus 100 percent.''
    
nyt-02-05-85 2312est
n111  2021  05 Feb 85
BC-NELSON(COX)
IRS Charges Willie Nelson With Tax Fraud
By ANDREW ALEXANDER
c.1985 Cox News Service
    WASHINGTON - Self-styled ''country outlaw'' singer Willie Nelson has
run afoul of the Internal Revenue Service, which has accused him of
civil tax fraud and is seeking more than $2.2 million in unpaid taxes
and penalties.
    The agency claims that during the four years from 1975 through 1978,
Nelson significantly understated his taxable income through
under-reported earnings and improper deductions.
    According to an IRS ''Notice of Deficiency'' sent last October to
Nelson and his wife, Connie, ''all or part'' of the alleged
underpayment of taxes for 1975 through 1977 ''is due to fraud, which
is attributable to Willie H. Nelson.''
    As a consequence, the agency assessed a 50 percent penalty - a total
of $730,597 - for the alleged fraud.
    In addition, the IRS assessed another penalty of more than $23,000
for 1978, charging that part of the underpayment of tax for that
final year ''is due to negligence or intentional disregard'' of
federal tax rules and regulations.
    Meanwhile, the IRS says Nelson owes more than $1.5 million in taxes
for the four years.
    Nelson could not be reached and IRS officials declined to discuss
the case.
    Chuck Meadows, Nelson's Dallas attorney who is handling the case,
said ''our position is that the matter is in the courts and we'll let
it be resolved there.''
    Details of the tax case are contained in papers Nelson filed in U.S.
Tax Court in Washington last month to contest the Notice of
Deficiency.
    In those court papers, Nelson said that ''all of the ...
deficiencies and additions to tax are in controversy'' and that ''no
part of any deficiency ... is due to fraud.''
    He has requested a trial in Dallas.
    Specifically, the IRS claims Nelson understated his gross income for
the four years by more than $1 million in undeclared receipts from
''road shows, unexplained bank deposits, deposits to client exchange
accounts, fan club income and income from Frank Brothers.'' Meadows
identified ''Frank Brothers'' as two brothers in Austin, Texas, who
sell souvenirs bearing Nelson's name.
    In addition, the IRS asserts that Nelson's taxable income for the
four years should be increased by more than $1.4 million because he
claimed deductions yet could not show they were ''for ordinary and
necessary business expenses, or were expended for the purpose
designated.''
    The IRS also says Nelson improperly claimed losses for two July 4th
picnics he staged in 1975 and 1976. Therefore, the agency says, his
taxable income should be increased by another $95,479.
    The July 4th picnics have grown into heavily attended annual events,
but Meadows said in 1975 and 1976 Nelson was essentially ''putting
them on himself.''
    ''People come and pay to be part of it and back during those years
the procedures that were available to determine who paid and who
didn't pay weren't that great,'' Meadows said. ''And that's what the
dispute is about.''
    The 54-year-old Nelson, a resident of Austin, has recorded on the
Atlantic, Columbia and RCA labels.
    He has had a long string of hits, including ''Whiskey River,''
''Mammas Don't Let Your Babies Grow Up To Be Cowboys'' (with Waylon
Jennings), and ''Good Hearted Woman.''
    (Distributed by The New York Times News Service)
    
nyt-02-05-85 2320est
n112  2031  05 Feb 85
BC-RESTON-COLUMN
(Commentary)
WASHINGTON: Reagan at 74
By JAMES RESTON
c.1985 N.Y. Times News Service
    WASHINGTON - When a president of the United States, for the first
time in the history of the Republic, manages to stick around long
enough to make a State of the Union address on his 74th birthday, the
least you can do is to wish him well and sing out the old ''Happy
Birthday'' song.
    President Reagan has endured because even his critics agree that
he's ''a jolly good fellow,'' and this may be the secret of his
success. His critics don't agree that he has a jolly good or even
fair policy, but he has a grace and gaiety and optimism that appeal
to the American people.
    Also, he has a marvelous gift of tolerating fools, which is not only
invaluable but essential in Washington, where there are many. He
listens to the most preposterous nonsense with the utmost patience,
and sends his visitors away not with answers to their problems but
somehow with a feeling that they have been mysteriously improved in
his presence.
    On a man's 74th birthday, this is an achievement that shouldn't be
ignored. It was not his voodoo economics that won his spectacular
election victory last November but his personality.
    He convinced the voters that he could deliver on their dreams. Trust
me, he said: let's not tax and tax, spend and spend, like the
Democrats, but borrow and borrow, spend and spend for the Pentagon,
and hope that a growing economy would console the poor, the middle
class, the students and the farmers.
    Obviously, it's not fair to judge him at the beginning of his second
term by personality, publicity or theatrical techniques alone. He
came to Washington challenging the assumptions of the New Deal and
the welfare state.
    He is dead serious about this and he has had some important
successes in reducing inflation, unemployment and interest rates, but
he is left with the most alarming peacetime deficits in history, and
is now finding that his own leaders in the Senate and House are
insisting that he must cut the Pentagon budget in order to cut the
federal deficit, or raise taxes to make up the difference.
    The president is not in a mood to compromise. For the time being he
thinks he can go to the people, who supported him in the election,
and persuade them to convince Congress that the military budget
should not be cut heavily.
    But on Capitol Hill, even the Republican leaders are telling him he
is overplaying his hand, that if he wants to cut the social programs
he must cut the Pentagon budget. And the chances are that the
president will compromise on this as he usually does.
    That is his way. He hasn't lived 74 years for nothing. He vilifies
the Russians and says he won't talk to them unless they do this or
that, but then agrees to talk when they do neither this or that. He
backs Cappy Weinberger's defense budget increase, which amounts to
almost as much as the cut in social programs, but when Congress won't
buy it - and it certainly won't - he will no doubt abandon Cappy,
like the MX missile, as a bargaining chip.
    Ronald Reagan is a very practical guy. He tells people what they
like to hear and then does what he pleases, especially now that he
doesn't have to run again. He's an incurable hoper, believing
everything will come out all right, no matter what happens.
    Also, he's lucky. ''Shake, rattle and roll,'' he says, and let's go
where the dice fall. Change the Cabinet, let 'em go or stay as they
like but keep the powder dry, even if the deficits go up.
    It's a funny business. On his birthday you have to admire him after
his fashion, but the Congress isn't wishing him many happy returns.
It admires his boldness and particularly his success, but not his
judgment. And it's going to cut him back no matter how much it likes
him, on the ground that his deficits are outrunning his dreams.
    Something new is happening on Capitol Hill. The Democrats are in a
dreadful muddle. They are still stunned by their recent defeat in the
presidential election and while they know their old leaders are
going, they don't know who if anybody is coming.
    But on the Republican side, it's quite different. They are all
singing ''Hail to the Chief,'' but they regard Reagan as a man of the
past who doesn't really have a philosophy for the future and who
won't even be able to hold their control of the Senate in the midterm
elections of 1986.
    They don't want to run on Reagan's mounting deficits, the largest in
the history of the country. They like him personally, as most folk
around here do, but don't really believe in him or in his policies as
a model for the coming years.
    
nyt-02-05-85 2330est
n113  2041  05 Feb 85
AM-VOLCKER
(BizDay)
By CLYDE H. FARNSWORTH
c.1985 N.Y. Times News Service
    WASHINGTON - Paul A. Volcker, chairman of the Federal Reserve Board,
assured Congress Tuesday that lower interest rates would accompany
cuts in the federal budget deficit. He urged legislators to ''do as
much as you can as soon as you can - have no fear that you will do
too much'' to cut the deficit.
    The fed chief, more explicit than usual in commenting on interest
rates, said they would be one percentage point lower than they would
otherwise be if the president and Congress succeed in cutting the
deficit by $50 billion in the fiscal year beginning Oct. 1.
    Appearing before the Joint Economic Committee of Congress one day
after President Reagan submitted his budget, Volcker said interest
rates would decline even more if the deficit reductions were larger.
    However, he warned that if there was a smaller reduction, say of $30
billion instead of $50 billion, ''there could conceivably be an
adverse impact'' on rates ''to the extent that current expectations
are disappointed.''
    But even if the administration's target of a $50 billion cut was
reached, he cautioned, the deficit would still be ''extraordinarily
high'' late in the decade and a source of concern.
    The administration projects a progressively narrower deficit, saying
it would be $107.5 billion by 1989, or about 2 percent of the gross
national product. This is about half the $222.2 billion deficit
forecast in the budget document for the current fiscal year.
    Volcker warned that the budget and accompanying trade deficit, which
was recently reported at $123.3 billion for 1984, were
''unsustainable'' and a source of financial pressures and
dislocations throughout the world.
    To finance the budget and trade deficits, the Fed chairman said that
the ''largest and richest economy in the world has perforce been
required for the time being to draw on savings generated abroad.'' He
added, ''In that real sense we are living beyond our means.''
    Against these characteristically gloomy views, Volcker said he was
less worried than some others about the financial situation in rural
areas.
    He was asked specifically about the health of banks in agricultural
communities that have been hit by rising debt and farm foreclosures.
    ''Most of these banks are quite well capitalized,'' Volcker said.
''The best capitalized banks in this country are the agricultural
banks. Historically, they've been quite profitable, so they have a
cushion of financial liquidity and capital to draw upon.''
    He reported that about 30 rural banks failed last year, and said the
number will ''certainly'' be larger this year. But he characterized
the problem as local, as opposed to the kind of national problem that
arose when the big Chicago money center bank, the Continental
Illinois National Bank and Trust Co., had to be rescued last year.
    Volcker cautioned the legislators not to suppose that a bank failure
in a rural area would mean the end of local banking service.
    Usually, what it means, he said, is that the failed bank is taken
over by another bank. ''That's the preferred solution'' of federal
banking supervisors, he added.
    -
    Volcker said that ''the farmer who has managed to avoid building a
debt burden is in a quite satisfactory condition.'' He added, ''Those
who went out and borrowed a large amount of money on sharply inflated
land prices are the ones who are in difficulty.''
    Volcker provided figures to show the nation's growing dependence on
foreign savings, which he said was inhibiting expansion abroad and
thereby curbing demand for American products.
    In 1984, the Fed figures showed, foreign savings satisfied nearly
one-quarter of the total demand for savings in the United States,
compared with about 12 percent in 1983.
    Volcker declined to say whether he thought the dollar was
overvalued, although he did note that the latest advance in the
dollar's value was ''unfortunate.''
    The nation's monetary chief said current fiscal and trade imbalances
were leading to strong pressures for protectionism, a point that was
echoed today in a speech by Jacques de Larosiere, managing director
of the International Monetary Fund.
    In remarks prepared for delivery in Stockholm and released by his
office here, de Larosiere provided some new data on the extent to
which protectionism has already affected trade.
    He reported that in 1983 products subject to trade restriction
accounted for 30 percent of total consumption of manufactured goods
in the United States and the European Economic Community, up from 20
percent in 1980.
    Volcker warned that protectionism in the United States ''would be
matched, or more than matched, abroad, with devastating consequences
for world trade and growth.''
    
nyt-02-05-85 2340est
n114  2051  05 Feb 85
AM-CREDIT
(BizDay)
By MICHAEL QUINT
c.1985 N.Y. Times News Service
    NEW YORK - Interest rates fell slightly Tuesday as the first leg of
the Treasury's three-part note and bond financing was well received
by investors.
    Late in the day, the Treasury announced that it had sold $7.25
billion of new 10 3/8 percent three-year notes at an average yield of
10.40 percent, down from 11.01 percent at a similar auction in early
November. The Treasury's auction attracted more than $28 billion of
bids - a record amount for a note or bond sale - up from $18 billion
at the previous three-year auction.
    ''We saw very good interest in the three-year issue from investment
portfolios of large and regional banks, and insurance companies,''
said the head of the government securities department at a large New
York City bank.
    Other government securities dealers agreed, adding that the 10.40
percent yield on the three-year notes was attractively high compared
with the returns available on short-term issues. Three-month Treasury
bills, for example, were bid late Tuesday at 8.15 percent, down from
8.16 percent at Monday's auction. Commercial bank buyers of the issue
were attracted to the three-year issue, they said, because its 10.40
percent yield is roughly two percentage points higher than the recent
cost to large banks of borrowing overnight money in the federal funds
market or of selling large negotiable certificates of deposit due in
one to three months.
    A decline in the overnight funds rate Tuesday to as low as 8 1/4
percent and an estimated average of about 8.31 percent helped spur a
modest rise in prices and drop in yields for Treasury issues of all
maturities. The closely watched overnight rate, which is a benchmark
for other short-term interest rates, averaged 8.61 percent Monday,
8.74 percent Friday, 8.73 percent Thursday and about 8.45 percent in
the week ended Jan. 31.
    Tuesday's decline in the funds rate was a reminder to market
participants that the overnight federal funds rate has a history of
fluctuating without any change in the Federal Reserve's monetary
policy.
    ''There are a lot of fluctuations in the funds rate that are not Fed
induced,'' said Alan C. Lerner, senior vice president at Bankers
Trust Co. who estimated that the Fed's current policy would be
consistent with a funds rate between 8 1/8 percent and 8 5/8 percent. ''The
Fed does not want rates to fall further,'' he said, ''but does not
yet have enough conviction to embark on a tighening of policy.''
    The central bank is reluctant to tighten monetary policy and raise
short-term rates, the Bankers Trust economist said, because the
economy is healthy but not robust, inflation remains low and higher
interest rates would encourage undesired strength in the dollar.
    In advance of Wednesday's auction of $6 billion of 10-year Treasury
notes, government securities dealers offered the issue with a yield
of 11.30 percent, down from 11.33 percent a day earlier. The $5.75
billion of new 30-year bonds were offered at 11.10 percent, down from
11.13 percent. Government securities dealers said both issues might
not attract as much institutional demand initially as the three-year
issue, but added that securities firms were expected to be sizeable
buyers.
    Demand from securities dealers for the 10- and 30-year issues will
be strong, analsyts said, because they are the first issues whose
interest payments may be traded on the Federal Reserve's book-entry
system separately from the principal amount. When coupons and
principal are separated they can be sold as zero coupon securities.
    The zero coupon securities created from the new Treasury issues are
expected to trade with slightly lower yields than outstanding zero
coupon securities created by various securities dealers. The
outstanding issues are backed by Treasury securities, but cannot be
purchased by some investors because they are not technically pure
Treasury issues. In addition, the outstanding issues are more
difficult to trade because they are not eligible for the Fed's
book-entry system.
    In the tax-exempt market, prices were little changed on the day. A
$140 million offering of Florida bonds was well received, with a
maximum yield of 9 3/8 percent for bonds due in 2015, and underwriters
led by Citibank said all but about $39 million of the issue was sold
by late afternoon.
    Yields of more than 10 percent are expected to be announced
Wednesday morning for long-term bonds included in this week's largest
new tax-exempt issue - $500 million of refunding bonds of the
Intermountain Power Agency.
    
nyt-02-05-85 2350est
n115  2059  05 Feb 85
AM-POLAND
By MICHAEL T. KAUFMAN
c.1985 N.Y. Times News Service
    TORUN, Poland - The key defendant in the trial of four state
security men made his final statement Tuesday, stressing his
Communist ideals while accepting qualified guilt for the slaying of a
pro-Solidarity priest.
    The defendant, Grzegorz Piotrowski, who is the only one of the four
facing a possible death penalty, asked clemency for two others,
Waldemar Chmielewski and Leszek Pekala, when sentence is pronounced
Thursday.
    Earlier, the two wept as they made short statements of their own,
declaring their guilt and asking leniency.
    The fourth defendant, Adam Pietruszka, has proclaimed his innocence
to charges of abetting and covering up the crime. In his statement,
he said he expected the court to absolve him.
    Piotrowski, addressing the five judges and two alternates in a firm
voice, reviewed the 24 days of testimony, often striking a proud tone.
    He linked his admission of responsibility for the death of the Rev.
Jerzy Popieluszko with condemnations of politically active churchmen.
    ''I do not feel so paralyzed by guilt that I will quietly accept any
charge and false accusation,'' he said. ''I am not the sort of man
who, even in the shadow of the gallows, will say it is raining when
someone spits.''
    He repeated assertions that there had been no murderous intent and
that the original plan had called for kidnapping and intimidation of
the priest.
    ''I admit causing his death but I did not admit to murder because,
to my mind, murder involves premeditation, and there was none,'' he
said.
    Piotrowski recalled that he had refused to answer questions put to
him by the so-called auxiliary prosecutors, lawyers with ties to the
church who represented the interests of Popieluszko family. He said
he was aware of their attitudes from their appearances as defence
counsel for people associated with the Solidarity movement.
    ''I did not think that there should be an opportunity to cynically
exploit a death for political capital,'' he said.
    He indicated awareness of the political consequences of the slaying.
    ''There is no price,'' he said, ''for which I would have helped
those who seek to weaken Poland, and yet, though it is difficult to
acknowledge, unwillingly I helped them.''
    He conceded that while the attack on the priest had not been
intended as a political provocation, he now saw by its results that
it had undermined the authority of the Polish government.
    His remarks echoed statements made earlier Tuesday by Leszek
Pietrasinski, the chief prosecutor. Pietrasinski criticized a
statement made last week by Jan Olszewski, one of the church lawyers,
who hinted that only the Soviet Union might have had an interest in
weakening Poland by engineering the Popieluszko slaying.
    The prosecutor said Olszowski had been wrong in suggesting that
there were no other forces interested in weakening Poland.
    Pietrasinski said other such forces were the Solidarity movement and
other dissident groups and well as Western countries, which, he said,
were enduring the present period of calm in Poland in the hope that
there would soon be renewed conflict.
    The prosecutor also berated the church lawyers for lauding the role
of priests in Poland's history without noting that some clerics had
collaborated with Russia, Germany and Austria-Hungary after the three
nations partitioned Poland in the 18th century.
    Olszewski suggested that Pietrasinski was engaging in propaganda and
that, unlike the prosecutor, he did not ''speak to the foreign and
Polish journalists in the audience, but only to the Polish judges.''
    
nyt-02-05-85 2358est
n116  2111  05 Feb 85
AM-COLUMBIA
By MAUREEN DOWD
c.1985 N.Y. Times News Service
    NEW YORK - Columbia University has agreed to sell the 11.7 acres of
land under Rockefeller Center to the Rockefeller Group for $400
million, the two parties announced Tuesday. The Rockefeller family
has been renting the land for half a century.
    One of Manhattan's most valuable and fabled sites, the parcel
encompasses Radio City Music Hall, the skating rink, the RCA Building
and other towers in the original complex. City officials said the
transaction set a record for the largest price paid for a single
parcel of land in the city's history.
    The Rockefeller Group, the Rockefeller family's investment company,
owns the 13 buildings in the original complex that John D.
Rockefeller Jr. began constructing in 1931, in the midst of the
Depression. The center, sometimes described as New York's town
square, sits on a piece of land between 48th and 51st Streets, from
Fifth Avenue to the Avenue of the Americas.
    After dickering over the deal for two years, Michael I. Sovern, the
president of Columbia University, and Richard A. Voell, the president
of the Rockefeller Group, met Friday night in the Rainbow Room atop
Rockefeller Center. Sixty-five stories above the land under
negotiation, they outlined the final terms over drinks and decided,
in the words of Voell, ''to get it over with.''
    ''It seemed to us that this was the time, if there ever was a
time,'' Voell said.
    They announced the cash sale Tuesday after Columbia's board of
trustees approved it at their monthly meeting on Monday. All the
parties involved seemed delighted with the deal.
    ''It's a nice outcome,'' Sovern said, ''for a piece of land given to
Columbia as a consolation prize by the state.''
    Sovern said Columbia was given the land in 1814 by New York State
after the state held a lottery to benefit a number of colleges.
Although other colleges received money, Columbia did not.
    The school's trustees then loudly complained. To appease them, the
state gave Columbia the parcel of land in midtown Manhattan, which
was then considered a remote outpost on the far north edge of the
city. ''It was a white elephant until after the Civil War, when it
began to generate a little income,'' Sovern recalled.
    Columbia, which has long been interested in selling the property to
make its investment portfolio more liquid, is to receive the money at
a closing of the deal later this month. Sovern said it would permit
Columbia to increase substantially the value of its $863 million
endowment fund over the next decade.
    ''As David Rockefeller was saying, this brings to a happy ending 52
years of negotiation,'' Sovern said. ''It's one of those rare
agreements in which both sides are big winners. We gained the ability
to diversity our portfolio and increase its yield and they gained
tremendous flexibility in the management of their affairs.''
    David Rockefeller heartily agreed. ''Frankly, the fact of the dual
ownership of the land and the building has always been an awkward
situation in relations between us,'' he said. ''There have been
restrictive convenants and things we couldn't do. This gives us a
freedom of action now to decide what's the best thing to do with the
center.''
    The sale set off immediate speculation in real-estate circles about
the Rockefellers' plans for the complex.
    After the original 13 buildings, 6 other buildings were constructed
on an additional 11 acres owned by the Rockefellers and their
tenants, including the Time-Life Building and the Exxon Building.
That part of the development was not affected by the sale.
    But in the original complex, more than 1 million square feet of
undeveloped space remains, most of it on top of the smaller
buildings, such as Radio City Music Hall and the Eastern Air Lines
building. These could be topped with higher structures.
    Voell said a 1979 option to put a building on top of the music hall
was a strong possibility. But he said the Rockefeller Group would
move conservatively as far as other development. ''The original
design is an architectural masterpiece,'' he said. ''We wouldn't
defeat what has made it successful over the years.''
    But he said the sale would accelerate the company's strategy for
modernizing and upgrading the office and shopping complex, which he
calls ''the most exciting business address in the world.''
    Voell and Rockefeller stressed their ''sentimental'' attachment to
the center and said it was unlikely that they would sell outright the
entire parcel of buildings and land, which has an estimated value of
$1.2 billion or more.
    But Voell did not rule out what he termed ''refinancings'' or
''recapitalizings,'' leaving open the possibility of a partnership.
    ''The Rockefeller family has a long history of interest in the
center,'' he said. ''It will continue to go forward with the
Rockefeller name.''
    The Rockefeller Group and Columbia last negotiated a lease in 1973,
when there was a glut of Manhattan office space that depressed
prices. Columbia said it had been receiving an annual rent of $11.1
million a year, giving it a yield of about 2.8 percent. The lease ran
until 2069, with rent renegotiation every 21 years.
    ''So low a yield on so large a single illiquid asset could not be
justified,'' Sovern said.
    
nyt-02-06-85 0010est
n117  2118  05 Feb 85
AM-YORKPOLICE
By SELWYN RAAB
c.1985 N.Y. Times News Service
    NEW YORK - Some police officers in the Bronx and Brooklyn, as part
of a protest over the manslaughter indictment of a fellow officer,
sought Tuesday to have an assistant district attorney come to the
scene before they would make arrests or intervene in emergencies.
    The officers were following new guidelines issued by their union.
    A spokesman for the Police Department, Alice T. McGillion, said
however, that the prosecutors had not been summoned and that the
officers had complied with orders from sergeants on how to handle the
arrests and other police matters.
    Miss McGillion, the deputy commissioner for public information, said
there had been about a dozen calls from regularly assigned officers
in radio patrol cars to request that an assistant district attorney
advise them.
    The situations, Miss McGillion said, involved several arrests, the
restraining of emotionally disturbed people and family disputes.
    The calls for assistant district attorneys came after the union
representing 18,000 officers in the Police Department issued its own
directive Monday on how to arrest or restrain people in situations
not deemed by officers to be life-threatening.
    The union, the Patrolmen's Benevolent Association, said it had
issued its ''use of force doctrine'' in response to an indictment in
the Bronx last Thursday of an Emergency Service officer, Stephen
Sullivan.
    Sullivan, who is 43 years old, was indicted on a charge of
second-degree manslaughter for the death of Eleanor Bumpurs, 66. He
pleaded not guilty.
    Police officials said Sullivan fired two shotgun blasts at Mrs.
Bumpurs in her apartment on Oct. 29 after she slashed at another
officer with a 10-inch knife.
    Sullivan and other officers had been called by Housing Authority
officials who said Mrs. Bumpurs was emotionally distraught and
resisting eviction from her apartment for non-payment of rent.
    All 250 officers in the Emergency Service unit have also decided to
demand transfers to protest the indictment of Sullivan, according to
the union.
    The officers are specially trained for rescue work and other
assignments, including the removal of bombs and the restraining of
emotionally disturbed people.
    The union's guidelines call for a sergeant or a higher-ranking
supervisor to be called in circumstances that are not considered
life-threatening to the officer or anyone else.
    In Brooklyn and the Bronx, the directive recommends, officers should
wait for an assistant district attorney to approve an arrest or an
attempt to subdue a deranged person.
    Asked what would happen if an officer refused to comply with an
order from a higher-ranking officer to intervene immediately, Miss
McGillion said, ''If they refuse to go on the job there could be a
problem but we are not anticipating that.''
    Philip Caruso, the president of the officers' union, said the
union's arrest policies were not intended as ''work slowdowns or job
actions.''
    ''We consider these legal and proper steps,'' he said. ''We have
given our people a set of guidelines to protect their safety and
careers.''
    
nyt-02-06-85 0017est
n118  2120  05 Feb 85
AM-PHILLIPS Addatend
NYT NEW YORK: interest rates.
    Pickens, meanwhile, appeared to be in the most favorable position of
all participants. His contract with Phillips provides that it pay his
group $53 a share, already guaranteeing a profit of nearly $90
million. If, however, a better offer comes along, he can take it.
    Phillips, meanwhile, is understood to be suspicious of the Texan,
suspecting that he may have helped Icahn in the latest attack on
Phillips. Pickens said Tuesday that he had not talked with Icahn
since last March at a seminar in Minneapolis - arranged by Irwin L.
Jacobs, another leading dissident Phillips stockholder. He said he
talked to Jacobs 10 days ago after he heard about the Minneapolis
investor's purchase of Phillips stock.
    In what may be a conflict of interest, Icahn's adviser, Donaldson,
Lufkin & Jenrette, is owned by the Equitable Life Assurance Society
and Robert F. Froehlke, its chairman, is one of the Phillips
directors who unanimously approved the company's recapitalization.
    
nyt-02-06-85 0019est
n119  2129  05 Feb 85
AM-DEFENSE
By BILL KELLER
c.1985 N.Y. Times News Service
    WASHINGTON - Defense Secretary Caspar W. Weinberger said Tuesday
that major advances in the reinforcing of American missile silos
would make the MX missile less vulnerable to a Soviet attack than
many military experts have asserted.
    His remarks, made in testimony before the House Armed Services
Committee, appeared to be designed to win over conservative critics
who lost enthusiasm for the new, 10-warhead missile after the Reagan
administration abandoned a variety of basing schemes to conceal it
from Soviet attackers.
    A Pentagon official familiar with the MX program said later that the
advanced techniques for fortifying missile silos would not be
available until at least three years after the MX missiles were
deployed in 1986, but the official said Weinberger probably had in
mind steps that could be taken to protect the MX in the 1990s.
    Congress is approaching a test vote on the MX program in March or
April, and Weinberger's comments reflected political concerns raised
by conservatives as well as liberals.
    While liberals say the new missile would be too expensive and
provocative, conservatives say the missile would be vulnerable to a
first strike by extremely accurate Soviet intercontinental ballistic
missiles.
    Congress has approved production of 21 MXs, and last year approved
$1.5 billion for another 21, with the condition that the missiles may
not be deployed unless Congress votes a go-ahead this spring. The
administration, in the $313.7 billion Defense Department budget
Weinberger is explaining to Congress this week, has asked for $4
billion to produce 48 additional MX missiles.
    Weinberger has insisted that cutting the missiles would send a
signal of weakness to the Soviet Union just as it is about to sit
down with the United States in Geneva, Switzerland, for arms control
talks.
    He also argues that the MX, which is supposed to be able to hit
within a few hundred feet of enemy silos 6,000 miles away, is needed
to offset Soviet missiles.
    The MX, which presidents and Congress have debated for 12 years, was
originally designed to be invulnerable to increasingly accurate
Soviet missiles. But, after years of debating methods of moving or
hiding the missiles, the Reagan administration settled on its plan to
slip the MX into silos in place of old Minuteman missiles.
    Some critics have said the silo plan negates the original rationale
for the MX.
    Tuesday morning, Rep. Charles E. Bennett, D-Fla., read a comment the
defense secretary made in January 1981 in which he said putting the
MX in Minuteman silos was ''not the answer.''
    Weinberger conceded that he once believed that. But he added, ''I
misjudged at the time the ingenuity of American science, because now
we do have methods of hardening those silos vastly beyond what we
could at that time.''
    The Pentagon official, who spoke on the condition he not be named,
said military researchers believed they could build silos, concrete
reinforced with steel rods, that would withstand blasts 20 to 40
times as severe as those that would destroy a Minuteman silo. But the
official said this technology would not be ready until 1990.
    ''It certainly would not apply for the first three or so years of MX
deployment,'' the official said. ''It could possibly apply as the
next step. But no decision has been made to go ahead on this.''
    Rep. Les Aspin, D-Wis., the new chairman of the Armed Services
Committee, told reporters later that he was skeptical about the value
of silo-hardening because of its cost and unproven effectiveness. But
he said the prospect of harder silos might win the administration a
few conservative votes this spring.
    Aspin, who has supported the MX as a lever for promoting arms
control negotiations, is under pressure from fellow Democrats to
withdraw his backing. On Tuesday, he declined to commit himself on
the issue.
    He added, however, ''Just because the talks are going on doesn't
mean that we actually rubber stamp their whole program.''
    
nyt-02-06-85 0028est
n120  2139  05 Feb 85
AM-STAFF
By GERALD M. BOYD
c.1985 N.Y. Times News Service
    WASHINGTON - President Reagan's new chief of staff, Donald T. Regan,
announced a series of high-level staff appointments Tuesday that he
said were designed to adapt the operations of the White House more to
his administrative style.
    Those named to White House posts were Patrick J. Buchanan, to
oversee communications; Edward J. Rollins, to head political and
intergovernmental functions, and Max L. Friedersdorf, to direct
legislative strategy.
    Buchanan, who was a speechwriter for President Nixon, is a
syndicated columnist and broadcast commentator. Rollins was director
of Reagan-Bush '84, the president's re-election campaign
organization. Friedersdorf, most recently a vice president at Pepsico
Inc. in Purchase, N.Y., was a congressional lobbyist in Reagan's
first term and served as the congressional liaison in the Nixon and
Ford administrations.
    The three men, whose appointments were announced on Regan's second
day as White House chief of staff, are expected to serve with John A.
Svahn, the domestic policy adviser, and Alfred H. Kingon,
presidential assistant for Cabinet affairs, among a second tier of
four senior aides ranking in power directly below Regan. They will be
in charge of most of the major areas of responsibility at the White
House and will report directly to the chief of staff.
    That staff arrangement represents a departure from the
decision-making structure throughout Reagan's first term, when three
senior aides, James A. Baker 3d, Edwin Meese 3rd and Michael K.
Deaver, had essentially similar power and direct access to the
president.
    Regan replaced Baker, who has taken over Regan's post as secretary
of the Treasury. Meese has been nominated to be attorney general and
is awaiting Senate confirmation, while Deaver is leaving the White
House to take a job in public relations.
    At a White House news conference Tuesday announcing the
appointments, Regan said they reflected a difference in his
administrative style, but not disappointment with the previous White
House structure. None of the appointments require Senate approval.
    Buchanan, who is 46 years old, has been an outspoken critic of the
news media. But Regan said Tuesday that he did not think Buchanan
''sees the press as an enemy or the media as a whole as an enemy,''
and added: ''In fact, he's part of it, being a writer himself, and
also on radio and also on television.''
    Buchanan's position, which will entail the supervision of
speechwriting functions and media relations involving the White
House, is believed to have been offered first to Anne McLaughlin, an
under secretary of the interior, who declined the offer, sources said.
    Regan said James S. Brady, the White House press secretary, would
remain in that post, as would Larry Speakes, the principal White
House spokesman. Speakes has been the president's chief spokemsan
since March 30, 1981, when Brady was seriously wounded by a gunman
who tried to assassinate Reagan.
    Both Friedersdorf, 55, and Rollins, 41, will be returning to senior
White House roles like those they held in Reagan's first term, but
with a broader focus. Friedersdorf will direct long-range legislative
strategy, while M.B. Oglesby will handle the day-to-day lobbying of
Congress, Regan said.
    The appointment of Rollins, a political ally of Vice President
George Bush, is expected to keep in a major role the pragmatic group
of White House advisers, which has included such senior aides as
Baker.
    Regan said that at least two other senior appointments were still to
be made. One, a White House official said, would be Robert H. Tuttle
as the replacement for John S. Herrington, who has been nominated as
secretary of energy. Tuttle, the son of Holmes Tuttle, a longtime
Reagan friend and member of the president's ''kitchen cabinet,'' had
been under consideration for at least one other key post, that of
under secretary of housing and urban development.
    In another staff change, the President's wife, Nancy, announced
Monday that Jennefer Austin Hirshberg would replace Sheila Tate as
her press secretary. Mrs. Hirshberg, 42, had been director of the
office of public affairs for the Federal Trade Commission and had
worked as a reporter for The Washington Star, now defunct.
    
nyt-02-06-85 0038est
n121  2149  05 Feb 85
AM-ECON
(BizDay)
By PETER T. KILBORN
c.1985 N.Y. Times News Service
    WASHINGTON - In an optimistic assessment of the economy's
performance over the last four years, President Reagan urged Congress
Tuesday to press on with his goals of less government and sustained
growth by enacting his new budget and continuing the programs he
began in his first term.
    In the President's annual Economic Report, presented to Congress
Tuesday, Reagan wrote, ''With conviction in our principles, with
patience and hard work, we restored the economy to a a condition of
healthy growth without substantial inflation.''
    The document devoted special attention to Social Security benefits.
It said the elderly are now better off than the rest of the
population.
    ''Several significant problems remain to be addressed,'' the
president said, and he singled out the Federal Rerserve Board, which
he faulted as having contributed to the severity of the 1981-82
recession and the recent slowdown in the economy.
    On specific programs, the president asked Congress to recommit
itself to further deregulation of the banking system, trucking, the
railroads, natural gas prices and the licensing of nuclear power
plants.
    In the report, the president did not specify the changes he seeks in
policies of the Fed, an agency that prides itself on being
independent of the White House and political influence.
    But the ranking member of the President's Council of Economic
Advisers, William A. Niskanen, told a reporter that the
administration endorsed an important technical change in the way the
Fed manages the nation's money supply
    Other members of the administration, Niskanen said, would reinforce
the proposal in statements to come.
    The change concerns the way the Fed projects its desired target
range for growth of the money supply, and it would move the central
bank toward the monetarist doctrine that the money supply should
expand at a constant rate from year to year.
    The president's report, drafted by the Council of Economic Advisers
and edited at the White House, has two components: his own report,
which is seven pages long this year, and a 343-page analysis of
economic policies and problems, plus several pages of statistics,
prepared by the council.
    A chapter of the council's analysis devoted to the economic status
of the elderly raised questions about the president's exclusion of
Social Security benefits from the domestic spending freeze proposed
in the budget submitted to Congress Monday. This chapter argued that,
largely because of the increases in Social Security benefits in
recent years, Americans who are 65 and older are now better off than
the rest of the population. The report says the average elderly
couple receives as much income while paying lower taxes.
    ''The economic status of the elderly is likely to improve in the
future,'' the report adds.
    There were no indications that this assessment of the economic
status of the elderly had stirred any objections within the
administration. Marlin Fitzwater, a spokesman for the president,
said, ''As far as I know, we don't have any comment on it.''
    In last year's Economic Report, a chapter prepared by Martin S.
Feldstein, then the council's chairman, challenged the
administration's view that budget deficits contributed to high
interest rates. That so infuriated Donald T. Regan, then secretary of
the Treasury and now the president's chief of staff, that he told a
Senate committee it could ''throw away'' the entire document with the
exception of the president's own report.
    Partly as a result of such discord, the administration has since
de-emphasized the council's role. Feldstein has not been replaced as
chairman of the council since his departure last July, and the
council's membership, normally three, is down to just one member,
Niskanen. The third member, William Poole, resigned last month to
resume teaching at Brown University, and Niskanen plans to leave this
month. For a while last year, the administration considered
dismantling the council but later decided to keep it. But no new
members have been named yet.
    Niskanen said he had encountered no opposition to the report as it
was published Tuesday. ''It has been cleared by the administration,''
he told reporters during a briefing Monday night.
    The main body of the report also takes issue, although cautiously,
with the overhaul of the tax system that Regan proposed in November.
The report attributed much of the strength of the econpmy's recovery
to the accelerated depreciation provision and investment tax credit
provisions of the 1981 tax law, which the Treasury's plan would
dismantle.
    ''On closer examination,'' the analysis says, ''some changes in the
proposal may be desirable, but the Treasury Department proposal
should be the starting point for serious consideration of tax
reform.''
     nn
    
nyt-02-06-85 0049est
n122  2158  05 Feb 85
BC-NEWSSUMMARY Undated
c.1984 N.Y. Times News Service
    The N.Y. Times News Summary for Wednesday, Feb. 6, 1985:
    
International
    Washington - Retaliation against New Zealand for its refusal to
allow a U.S. Navy destroyer to make a port visit next month is being
considered by the Reagan administration. Officials said a firm
response was needed to show that allies could not impose limits on
the movements of American military forces and get off ''cost-free.''
    
    Cairo - Hosni Mubarak criticized Israel, saying in it had not been
flexible enough in the search for peace. The Egyptian president also
faulted the Israelis for not withdrawing their forces sooner from
Lebanon.
    
National
    Washington - Military pensions were assailed as a ''scandal'' by
David A. Stockman, the Federal budget director. Stockman, in
sometimes blunt testimony before the Senate Budget Committee, said
the military would ''give up on security before they'll give up on
retirement.'' He asked Congress to help curtail the spiraling cost of
the military retirement program.
    
    Washington - The nomination of Edwin Meese 3d to be attorney general
was approved, 12-6, by the Senate Judiciary Committee. All 10
Republican members voted for Meese and two of the committee's eight
Democrats also joined in referring the controversial nomination to
the Senate floor. Several panel members called the vote one of the
hardest and most troubling of their careers.
    
    Washington - An upbeat State of the Union Message tonight is planned
by President Reagan, according to White House officials. They said he
planned to set legislative priorities for his second term with an
address that reaches out to minority groups, emphasizes deficit
reduction and tax simplification and stresses his desire to ease the
threat of nuclear war.
    
    New York - President Reagan's use of Scripture to appeal for support
of his proposed increased military budget was criticized by several
theologians and biblical scholars. Among the criticisms were that
Reagan had taken a passage from the Gospel of Luke out of context and
had failed to grasp Jesus's teaching.
    
    Denver - The 55 mph speed limit has often been called the most
widely broken national law since Prohibition. Yet the 11-year-old law
has attracted broad public support, and attempts in some states to
repeal it within their borders have failed. Still, opponents are
expected to renew their efforts this year to get a 65-mile-an-hour
speed limit on rural parts of the Interstate system.
    
    Cambridge - A complaint of sexual harassment has led to the
resignation of a tenured professor at Harvard, the university
disclosed. Harvard officials said they believed that the resignation
of Douglas A. Hibbs Jr., a professor of government, marked the first
time in the university's 348-year history that a faculty member had
been ousted for such sexual misconduct.
    
    Washington - A plan to merge the two agencies responsible for water
development has been rejected by the secretaries of defense and
interior. However, David A. Stockman, the federal budget director, is
still pressing his proposal to consolidate the Pentagon's Army Corps
of Engineers and the Interior Department's Bureau of Reclamation.
    
    New York - The land beneath Rockefeller Center will be sold by
Columbia University to the Rockefeller Group for $400 million, the
two parties announced. The Rockefeller family has been renting the
11.7-acre site for half a century. The Rockefeller Group, the
Rockefeller family's investment company, owns the 13 buildings in the
original complex that John D. Rockefeller Jr. began constructing in
1931.
    
    Washington - Gen. William C. Westmoreland imposed a ceiling on enemy
strength estimates in Vietnam in 1967 that led to a ''corrupt''
report for President Johnson, according to Col. Donald W. Blascak, an
Army intelligence officer who is still on active duty. Blascak
testified at Westmoreland's libel trial against CBS in Manhattan that
the 25-page report should have put enemy strength at 500,000 to
600,000, twice what it reported.
    
nyt-02-06-85 0058est
n123  2211  05 Feb 85
AM-HARVARD
Professor Quits After Sexual Harassment Charges
By FOX BUTTERFIELD
c.1985 N.Y. Times News Service
    CAMBRIDGE, Mass. - A tenured professor at Harvard University has
resigned after a complaint of sexual harassment was made against him,
the school disclosed Tuesday.
    Harvard officials said they believed it was the first time in the
university's 348-year history that a professor had left the faculty
after charges of sexual misconduct were made.
    The resignation was by Douglas A. Hibbs Jr., a professor of
government with tenure appointment, which normally means a lifetime
job. The complaint involved a woman who was a student in a seminar
that Hibbs was teaching at the Massachusetts Institute of Technology,
according several Harvard professors and officials, who asked not to
be identified. Hibbs taught a seminar open to students from both
schools.
    The resignation is at a time when sexual harassment has become a
major issue at Harvard and other universities. Some women, both
students and faculty members, have charged that their schools have
tried to ignore it. Other professors have expressed concern that
sexual intimidation has been too vaguely defined and efforts to
combat it may interfere with academic freedom.
     Hibbs was the third tenured member of Harvard's government
department to be implicated in a sexual harassment complaint in the
last six years, though Harvard did not make its action public in the
previous two cases. The other professors were reprimanded and one
lost his job as the department chairman, school officials have said.
    The Harvard definition of sexual harassment, according to the
university's handbook for students, is: ''Unwanted sexual behavior,
such as physical contact or verbal comments or suggestions, which
adversely affects the working or learning environment of an
individual.''
    In a statement Tuesday, David M. Rosen, Harvard's spokesman, said
Hibbs had resigned ''following discussions and consultation'' after a
person, whose name was not given by the university, had filed a
complaint last December. The complaint ''contained an allegation of
sexual harassment in May 1983'' by Hibbs, the statement said.
    In keeping with its privacy regulations, Harvard declined to
disclose the identity of the person who lodged the charge. But
several members of the government department and school officials,
who asked that their names not be used, said it had been a woman who
was a student at MIT.
    In addition, these sources reported that a woman who had been a
junior member of Harvard's faculty and is now teaching at Columbia
University had lodged an informal complaint with university officials
of sexual harassment against Hibbs. Under Harvard's rules, students
and faculty members who feel they have been sexually harassed may
take their complaints to a variety of university officials and may
either pursue informal solutions or file a formal complaint.
    Hibbs, who specialized in statistical analysis of the links between
economic conditions and political development, could not be reached
for comment. His home telephone has been disconnected and no one was
at his house or office Tuesday.
    Hibbs, who is 40 years old, was made a professor at Harvard in 1978.
He graduated from Southern Connecticut State College and received his
Ph.D. from the University of Wisconsin. He taught at MIT for several
years before coming to Harvard.
     Rosen said Hibbs had been granted a medical leave of absence, but
he declined to say when it would be over or when Hibbs would
technically be off the faculty.
    Another Harvard official familiar with the case said it had been
settled by Hibbs' signing three agreements, covering the charges, two
with the women involved, the third with the university. The
agreements absolved Harvard of any legal responsibility for Hibbs'
conduct, the official said.
     Hibbs' resignation came as a surprise to other members of the
government department, several professors said. It was first
disclosed to them Monday night by Michael Spence, the dean of the
faculty of arts and sciences, but he declined to reveal anything
about the complaints against Hibbs, the professors said.
    One of the professors said there was widespread controversy in the
department over the sexual harassment problem. In 1983, then dean of
the faculty at that time, Henry Rosovsky, expressed concern about the
problem at a private meeting because of the two earlier cases, and he
ordered the department to come up with a plan to prevent further
incidents, the professor recalled. The department set up a system of
counselors to provide the students guidance on what constituted
sexual harassment and to make it easier for them to file complaints.
    But the professor said he was concerned that Harvard's definition of
sexual harassment might be too broad and that its requirements for
keeping names and facts secret in sexual harassment cases might be
too strict.
    ''Now you can get in trouble for a wink or a smile,'' he said,
though he noted that in the past several leading Harvard professors
married their undergraduate or graduate students.
    ''With all the secrecy now, it is like Harvard saying very
paternalistically, you have to trust us,'' he added. ''But lot's of
people, without knowing the facts, don't trust Harvard.''
    In 1983, amid controversy over sexual harassment reported in the
government department, Harvard published a 100-page study on the
problem, which found that 40 percent of women at the university
asserted that they had been sexually harassed at the university. That
high percentage raised further dispute, and last fall the Univesity
Health Services released another survey in which only 7 percent of
the respondents said they had experienced the problem at the
university
    
nyt-02-06-85 0110est
n124  2213  05 Feb 85
BC-REAGAN-TV Undated
c.1985 N.Y. Times News Service
    President Reagan's State of the Union Message Wednesday night will
be broadcast live at 9 p.m., EST, on the ABC, CBS and NBC television
networks, on the Cable News Network and on C-SPAN, the
Cable-Satellite Public Affairs Network.
    Live coverage with simultaneous Spanish translation will be provided
by the Spanish International Network, SIN.
    Some affiliates of the Public Broadcasting Service may carry the
address, either live or as a taped-delayed broadcast.
    The Democrats' 30-minute response to the president's message will be
carried Wednesday night by NBC and CBS, along with programs analyzing
the message, but ABC will not broadcast the response until Thursday
night.
    
nyt-02-06-85 0112est
n125  2222  05 Feb 85
AM-REAGAN-SCRIPTURE
Biblical Citation Draws Fire
By KENNETH A. BRIGGS
c.1985 N.Y. Times News Service
    NEW YORK - Several theologians and biblical scholars Tuesday
criticized President Reagan's use of Scripture to appeal for support
for the administration's proposal to increase the military budget.
    Among the criticisms were that Reagan had taken a passage from the
Gospel of Luke out of context and had failed to grasp the manner of
teaching employed by Jesus. Many said the point of the passage had
nothing to do with military strategy.
    The president referred to Luke 14:31-32 in remarks to a Monday
gathering of business leaders at the White House. Calling for a
continued military buildup, Reagan said the Bible story meant that
''the Scriptures are on our side.''
    In the account from Luke, as told by the president, Jesus tells of a
general who finds himself with 10,000 soldiers against an approaching
enemy force of 20,000. In the face of such odds, the general sues for
peace.
     Reagan then drew a lesson from the passage. ''Well, I don't think
we ever want to be in a position of only being half as strong and
having to send a delegation to negotiate, under those circumstances,
peace terms with the Soviet Union.''
    Reacting to Reagan's remarks, Dr. David Adams, professor of New
Testament at Princeton Theological Seminary, said: ''When the
president cites this verse as a prop for administration policy, he
misuses the Bible. It is not an answer book but a record of faith.''
    The Rev. Richard John Neuhaus, a conservative theologian who is
director of the Center of Religion and Society in New York, said, ''I
think the president would be well-advised to make the argument for
his military budget and strategies on the basis of public reasoning
rather than invoking dubious biblical authority.''
    Both liberal and conservative church scholars assailed the
president's effort to give scriptural warrant to his military policy.
Many warned against the practice of extracting single verses of the
Bible to buttress political policies.
    Most of the scholars said the use of a military example was intended
to serve a larger principle, the high personal cost of serving Jesus.
In other sections of the chapter Jesus emphasizes the same point by
drawing on other scenes from everyday life. Such parables, many of
them containing hidden meaning, were often utilized by Jesus to
instruct his followers.
    In the chapter from which Reagan drew his source, scriptural
scholars widely agree that the main teaching here is underscored in
the verse immediately following the passage cited by Reagan. ''So,
therefore,'' Jesus says as recorded in the Revised Standard Version,
''whoever of you does not renounce all that he has cannot be my
disciple.''
    The Rev. Arie Brouwer, general secretary of the National Council of
Churches, said Reagan had taken the passage ''completely out of
context.'' He added, ''Read in its context, it is not at all a
statement that could be used to confirm an emphasis on military
might. That would be completely in conflict with the whole tenor of
Jesus's teaching to suggest relying on military might.''
    ''It was a call to prudence rather than to power,'' he said. ''Jesus
was saying to the people coming to him in great numbers, 'Have you
considered carefully what it means to commit yourself in this way?'''
    The Rev. Robert P. Dugan Jr. of the National Association of
Evangelicals, said the passage stresses ''personal discipleship'' and
counsels preparation before taking on a total life decision.
    Dr. Donald Shriver, president of the Union Theological Seminary in
New York, said the verses dealt not with military strategy but with
''the need to be prepared for what you say you will do.''
     Adams said the passage ''advocates self-examination on the part of
Jesus' followers, not military parity as a condition for negotation.''
    
nyt-02-06-85 0121est
n126  2229  05 Feb 85
AM-FARM
By SETH S. KING
c.1985 N.Y. Times News Service
    WASHINGTON - The Independent Bankers Association said Tuesday that
many banks could not provide any more interest-rate relief to farmers
unless the government assumed part of the cost.
    Last week the Reagan administration agreed to ease access to a
federal loan guarantee program to help financially troubled farmers
reduce their debts. Details of that plan are to be announced
Wednesday.
    But the association, which represents smaller banks, said Tuesday
that the plan would not help very many heavily indebted farmers avoid
bankruptcy this spring or help those who are having trouble getting
new loans for spring planting.
    After two days of emergency meetings here, the association's
agricultural committee asked for a new federal credit relief program,
under which the banks would reduce interest rates on farm loans by
four percentage points if the government absorbed half the cost by
paying banks the equivalent of two percentage points.
    At a news conference Tuesday, the group, which lists about 3,000
rural banks among its 7,900 members, also called for elimination of
the ''forgiveness'' requirement in the administration's farm loan
guarantee plan.
    The bankers' matching plan would operate in addition to the loan
guarantees and would primarily benefit farmers who having difficulty
getting additional loans even though they are not facing bankruptcy.
    The loan guarantee plan requires a participating commercial bank to
reduce by at least 10 percent a farmer's debt service charges on an
endangered loan, either by reducing the interest rate or the
principal or both. In return, the government would guarantee up to 90
percent of the principal and interest due, paying the bank that
amount if the farmer defaulted. The Farmers Home Administration would
take title to the land and resell or rent it.
    Speaking for the bankers' committee, Thomas H. Olson, president of
the Lisco State Bank in Lisco, Neb., said the ''forgiveness''
requirement was preventing many rural banks from participating,
because they no longer had enough assets or reserves to reduce loans.
    He said the government should increase the funds now available to
finance the plan from $630 million to $3 billion.
    Bowing to demands of Republicans from farm states, the
administration agreed Friday to expand the loan guarantee program to
include reductions in interest as well as principal.
    Meanwhile, Federal Reserve Chairman Paul A. Volcker told Congress
today that many rural banks were well-capitalized and had ''pretty
good'' cushions.
    Testifying before the Joint Economic Committee, he said there were
about 30 bank failures last year in the rural areas and there would
''certainly be more'' this year. But Volcker argued that this was a
local and not a national problem.
    Earlier, Budget Director David A. Stockman told the Senate Banking
Committee he could not understand ''why the taxpayers of this country
should have the responsibility to go in and refinance bad debt that
was willingly incurred by consenting adults.''
    Olson said Tuesday that a government-aided interest reduction could
keep some farmers going another year, which would also help merchants
and manufacturers.
    
nyt-02-06-85 0128est
n127  2237  05 Feb 85
AM-POPE
John Paul Winds Up South American Visit
By E.J. DIONNE Jr.
c.1985 N.Y. Times News Service
    PORT OF SPAIN, Trinidad - Pope John Paul II closed his South
American tour Tuesday night after a day of hopscotching from the
slums of Lima, Peru, to an Amazon jungle town and finally to this
prosperous and temperate Caribbean island.
    The pope celebrated Mass here Tuesday night and was to give the 45th
and final address of his trip before flying back to Rome.
    The pope continued Tuesday to shift back and forth between messages
of consolation to the poor and calls for greater church discipline,
respect for church authority and avoidance of doctrines John Paul
sees as contrary to Roman Catholic teaching.
    Having spent much of his Peruvian journey calling on Catholics to
avoid theologies alien to the faith - a series of addresses seen as
critical of certain aspects of liberation theology - John Paul
returned Tuesday to the themes of the pope's special commitment to
the impoverished.
    In the morning, he visited the Lima slum of Villa el Salvador, the
scene of active organizing by Christian ''base communities,'' some of
them left-wing. There he reiterated his support for the church's role
as an advocate of the poor and praised the work of the base
communities, which have come under attack from some more conservative
Catholics. ''Never cease denouncing injustice,'' the pope declared to
the crowd.
    The pope also made a rare reference to feminism, asking the people
of Villa el Salvador to fight against ''the mentality of machismo''
that ''exploits women.''
    The statement brought immediate applause from the crowd, which at
times, as people waved their colored flags in unison, resembled a
field lof yellow and white flowers.
    In one of the more remarkable stops of his journey, the pope spent
about an hour later Tuesday in Iquitos, Peru, a town carved out of
the Amazon jungle.
    There, greeted by a bamboo carpet instead of a red one, the pope
gave his unequivocal support to the claims of Indians who he said had
been defrauded of their land.
    ''From time immemorial you were on these lands,'' the pope told a
crowd at the airport, ''but you were the victims of the greed of the
last arrivals who threatened your reserves, knowing that you did not
have written title to your lands.'' The pope urged that the Indians
be given the land titles he said they deserved.
    Speaking from a bamboo platform in sweltering heat, he also told the
Indians that they must not ''close themselves off from others.''
    ''Open the doors to those who come to you with a message of peace
and are disposed to help you,'' the pope said, urging the Indians to
accept Christian missionaries.
    The pope also urged the Peruvian authorities to do more on behalf of
the Indians. He asked the authorities to support ''more adequate''
legislation that would protect the Indians from ''the abuses'' they
had suffered.
    Then the pope flew to Trinidad, an island made rich by oil, but
troubled by the recent drop in oil prices.
    The Republic of Trinidad and Tobago is the one country the pope
visited on his trip that is not predominantly Roman Catholic. Its
population of about 1.8 million people is roughly 36 percent
Catholic, 23 percent Hindu, 13 percent Protestant and 6 percent
Moslem. Racially, the island is divided almost equally between East
Indians and blacks, with about 14 percent consisting of people of
mixed race.
    The pope used his arrival speech to praise the island's pluralism.
''I want to tell you of my admiration for the way in which people of
different races, religions and traditions live together in harmony in
your country,'' he told a crowd at the airport. suffer tragic
conflicts due to bigotry and prejudice, you are a sign of hope,'' he
declared. ''Your fraternal understanding makes possible fruitful
cooperation between greatly diverse groups, and this cooperation is
mutually enriching.''
    
nyt-02-06-85 0137est
n128  2242  05 Feb 85
BC-BUDGET-RETIRE
c.1985 N.Y. Times News Service
    WASHINGTON - The military pension program was designed as a lure for
military recruits, but as it has swelled to an $17.8 billion-a-year
budget item, it has become a cause of controversy, as well.
    The program permits military careerists to retire younger, with a
greater share of their basic pay and with better adjustments for
inflation than most private pension plans, according to private
studies.
    At least nine studies in the past 15 years, including five inside
the Pentagon, have called for changes in the system.
    Most recently, the 1983 report of the President's Private Sector
Survey on Cost Control, chaired by J. Peter Grace, estimated that the
military pension system costs ''six times as much as the better
private-sector plans.''
    Under the military retirement system, officers or enlisted personnel
may retire after 20 years at half their base pay. For a lieutenant
colonel with 20 years service, for example, the pay at retirement
would be $1,706.70 a month. For a sergeant first class, it would be
$702 a month.
    A typical Army, Marine or Air Force lieutenant colonel or Navy
commander who leaves the service will be 43 years old and will earn
almost $20,000 a year in retirement.
    A serviceman retiring after 30 years service draws 75 percent of the
basic pay, the maximum benefit.
    The pension benefits are taxed, and they increase along with active
military pay, by action of Congress.
    According to Pentagon officials, the military pension system is
expected to pay out $18 billion in fiscal year 1986, which begins
next Oct. 1. That is up from $7.3 billion paid in fiscal year 1976.
    The Pentagon estimates that by the year 2000, the cost will reach
$44.7 billion, including increases resulting from inflation.
    The cost is expected to continue upward as men and women who joined
the services in the Vietnam military boom of the 1960s become
eligible for retirement.
    
nyt-02-06-85 0141est
n129  2252  05 Feb 85
AM-AUTOS
(BizDay)
c.1985 N.Y. Times News Service
    DETROIT - Sales of new American-made automobiles slipped 4.1 percent
in late January from an extremely strong period last year on a daily
rate basis, the six major auto makers reported Tuesday. The daily
selling rate for the Jan. 21-31 period was 26,850 this year, compared
with 28,002 in 1984.
    For all of January, sales were up 3.5 percent. The daily sales rate
of 24,155 was the best for January since 1979.
    There were 10 selling days in the late January period this year and
nine last year. In the full month, there were 26 selling days this
year, up from 25.
    The annual selling rate, adjusted for seasonal variation, decreased
late in the month, to 8.3 million units, from 8.9 million last year,
but the annual rate edged up in the full month, to 8.4 million, from
8.3 million in January 1984.
    Scott Merlis, an analyst with Shearson Lehman Brothers Inc., said:
''We were expecting a rebound from October and November but not quite
this strong. We were looking for a 7.8 to 8 million annual rate for
January.''
    In the month, imported car sales totaled 206,829, including some
estimated sales, or 7,955 daily, up 2 percent from last January, when
194,997 new imports were delivered. The annual rate was set at 2.6
million units and the importers took a 22.6 percent share of the
American car market.
    Light-truck sales, with domestic and imported vehicles combined,
were extremely strong in January, totaling 339,885, for a 4.5 million
annual rate, a record for trucks, according to Michael Luckey, an
auto analyst at Merrill Lynch Econometrics.
    The six companies - the General Motors Corp., the Ford Motor Co.,
the Chrysler Corp., the American Motors Corp., Volkswagen of America
Inc. and the American Honda Motor Co. - had combined new-car sales of
268,500 in the Jan. 21-31 period. Last year they sold 252,020.
    In the same period, domestic sales of light trucks totaled 109,960,
or 10,996 daily, down 0.3 percent on a daily rate basis.
    G.M. car sales of 151,859, or 15,186 daily, were down 8 percent from
last year's 148,646, or 16,516 daily. Light-truck sales by G.M. fell
12.1 percent on deliveries of 47,192 units, or 4,719 daily this year,
compared with 49,037, or 5,449, in the late January period last year.
    Sales of Ford cars slipped 2.2 percent in the period on deliveries
of 64,388, or 6,438 daily, against 59,255, or 6,584 a day, in 1984.
Light-truck sales of 39,142, or 3,914 a day, were up 9.2 percent,
from 32,246, or 3,583.
    Chrysler dealers delivered 38,859 new cars, a daily rate of 3,886,
for the late January period this year, compared with 30,883, or
3,431, last year, a 13.3 percent increase. Truck sales by Chrysler
for the period also showed a healthy improvement, 26.3 percent, on
deliveries of 18,344, or 1,834, versus 13,073, or 1,452.
    American Motors said its sales fell 47.3 percent, from 6,146 units,
or 683 daily, to 3,592, or 359 a day, this year. Jeep sales also
slipped, by 4.3 percent, on deliveries of 5,282 units, or 528, versus
4,969, or 552, last year.
    Volkswagen of America also reported declining sales. Deliveries of
3,414 cars, or 341 daily, were down 17.8 percent from 3,739, or 415 a
day.
    Sales of U.S.-built Hondas soared 71.8 percent, from 3,351, or 372
daily, to 6,388, or 639 a day.
    For the entire month, Honda's domestic car sales were up 48.6
percent on deliveries of 13,366 units, or 514 daily, up from 8,647,
or 346 a day. Sales of the small truck produced by Hondawere even
more impressive. Deliveries of 13,553, or 521, were up 167.2 percent
from 4,864, or 195 a day.
    Also in the month, G.M. auto sales of 362,780, or 13,953 daily,
edged up 1.2 percent from 344,679, or 13,787, last year. Truck sales
of 121,064, or 4,656 daily, rose 10.2 percent from 105,650, or 4,226
daily.
    Ford car sales of 150,762, or 5,799, were up 4.1 per cent from
139,222, or 5,569, last year. Light-truck sales of 92,042, or 3,540
daily, gained 17.4 percent from 75,334, or 3,013, in January 1984.
    Chrysler sold 85,260 cars in the month, 3,279 a day, up 18.1 percent
from 69,391, or 2,776. Light-truck sales, including mini-vans,
totaled 40,981, or 1,576, up 4.3 percent from 28,785, or 1,511.
    In the month, American Motors car sales fell 32.7 percent on
deliveries of 9,987 units, or 384 daily, from 14,271, or 571 a day.
Jeep sales in the month rose 16.6 percent, with 13,182 new vehicles
sold this year, 507 per day, compared with 10,869, or 435 daily, last
year.
    Volkswagen sales of 5,882, or 226 daily, were down 21.8 percent from
7,219, or 289, a year ago.
    
nyt-02-06-85 0151est
n130  2300  05 Feb 85
BC-SMALLCARS
(BizDay)
By JOHN HOLUSHA
c.1985 N.Y. Times News Service
    DETROIT - As buyers continue to switch to larger and expensive cars,
the auto makers are turning to a variety of incentives to promote
slower-selling small models.
    Since the first of the year, they have introduced incentives ranging
from cut-rate financing to optional equipment thrown in at no extra
charge. There are also incentives for light pickup trucks, where the
market is competitive and the companies are fighting to maintain
market share.
    Analysts said that some small car models have been piling up on
dealers' lots, and that it was generally more economical for the
companies to offer price incentives than to cut production. ''Sales
over all are still strong, but not in all segments,'' said David
Healy, an analyst with Drexel Burnham Lambert Inc.
    The Chrysler Corp., which frequently leads the industry in offering
rebates and other price-trimming actions, is offering cut-rate loans
on its smallest cars and trucks, and free equipment on its slightly
larger K-body models.
    Chrysler said it would offer financing loans at an 8.8 percent
annual rate on its subcompact Omni, Horizon, Charger and Turismo
models. The loans will be offered for an indefinite period. It is
offering a similar rate on its Mitsubishi-made Ram 50 and Power Ram
50 small pickup trucks until March 30.
    The incentive for buyers of the K-cars, the Aries and Reliant, is
the inclusion, at no extra price, of an automatic transmission that
Chrysler said was usually a $439 option.
    According to Ward's Automotive Reports, an industry newsletter, the
supply of Horizon models at the end of 1984 totaled 106 days at
current selling rates, with the companion Omni not far behind at a
99-day supply. A 60-day supply is considered optimal.
    At the American Motors Corp., the subcompact Alliance and Encore
models are even more plentiful, at a 147- and 129-day supply,
respectively. The company is offering 8.5 percent financing through
the end of this month. It compared that to a standard rate of about
13 percent. The 8.5 percent rate will apply to loans of 36 months,
with the rate rising for longer-term borrowings.
    AMC sales have slumped sharply in recent weeks; the only
domestically made models it sells are subcompacts. In the last 10
days of January, the company's sales declined 47 percent from the
1984 period; for the month, they were off 33 percent.
    The Ford Motor Co. and the General Motors Corp. have no public sales
incentives in effect but, like the other companies, they make
nonpublicized offers to dealers pressing them to put extra sales
efforts on slow-selling models.
    The light pickup truck market is probably the most competitive in
the auto industry, because the Japanese producers are unhindered by
quotas that limit their car shipments. In addition, analysts say, the
small pickups that G.M. and Ford have introduced in the last two
years are being well received by buyers.
    The Nissan Corp. has been offering an 8.8 percent financing program
that is scheduled to continue until March 4. The Toyota Motor Corp.
has countered with a plan that will pay dealers as much as $400 for
each pickup sold, if certain sales levels are reached.
    ''We would rather give the money to the dealers and let them figure
out how to use it,'' a Toyota spokesman said. ''Some might do an 8.8
percent program on their own, or lower the price. We let them tailor
it to their own market.''
    The approach seems to be working. Both Toyota and Nissan had record
sales of pickups in January. Executives of the companies say many
families are buying pickups as second vehicles because of the
shortage of low-priced Japanese cars. Some of the pickups sell for
less than $6,000.
    Both Chevrolet and Dodge have responded with their own 8.8 percent
financing programs.
    
nyt-02-06-85 0159est
n131  2306  05 Feb 85
AM-PROFITS
(BizDay)
By PHILLIP H. WIGGINS
c.1985 N.Y. Times News Service
    NEW YORK - Citing a substantial write-down and weak prices for its
major products, Asarco Inc. Tuesday reported a loss of $236.3 million
in the fourth quarter of 1984, contrasted to earnings of $11.7
million, or 27 cents a share, in the corresponding quarter of 1983.
    The company said last week that it would take an extraordinary
charge of $216 million in the quarter, reflecting the suspension or
permanent closing of some of its plants and mines.
    Revenues in the quarter dropped 28.1 percent, to $282.2 million,
from $392.5 million.
    Asarco, a leading producer of silver, copper, lead, zinc and other
nonferrous metals, said that equity earnings in associated companies
in Peru, Mexico, and Australia amounted to $4.8 million in the fourth
quarter, compared with $10.8 million in the period a year earlier.
The company also said that results in the latest three months
included a gain from foreign currency translations of $16.8 million,
compared with $2.7 million in the quarter a year earlier.
    Asarco said that during the latest quarter producer prices of silver
averaged only $7.17 an ounce, compared with $9.27 an ounce a year
earlier. Copper producer prices, the company said, dropped to 63.7
cents a pound, from 68.2 cents; lead, to 23.2 cents a pound, from 25
cents, and zinc, to 43.8 cents a pound, from 47.5 cents.
    The company said that for the full year it had a loss of $306.1
million, contrasted to a net income of $58.3 million, or $1.54 a
share, in 1983. Revenues for the year slipped 11.9 percent, to $1.33
billion, from $1.51 billion.
    Tenneco Inc., suffering from the depressed market conditions in
petroleum refining and in the agricultural and construction equipment
industries, reported Tuesday that earnings in the fourth quarter of
1984 plunged 46.1 percent.
    Results for the latest quarter include a pretax write-down of $95
million for certain pertrochemical operations.
    Tenneco, a Houston-based company that derives about two-thirds of
its profits from oil and natural gas pipeline operations, said that
net income in the latest three months slid to $130 million, or 80
cents a share, from $241 million, or $1.63 a share, in the
corresponding three months a year earlier. Revenues remained level at
$3.8 billion.
    ''The results were no surprise,'' said David F. Bartlett, oil
analyst at Ladenburg, Thalmann & Co. ''They took the write-downs they
had to take and it appears the company is facing up to the realities
of the marketplace.''
    There were 144.7 million shares outstanding in the latest three
months, compared with 138.8 million shares in the 1983 quarter.
    
nyt-02-06-85 0205est
n132  2319  05 Feb 85
BC-RECAP-BUDGET-(Balt.)
    
     This is the 11 P.M. summary of news stories which moved from The
Baltimore Sun News Service for the Evening and Morning papers of
Wednesday, February 6, 1985. The editor is James Keat. He can be
reached at 301 332 6188.
    
     INTERNATIONAL
    
     AID - Washington. Administration holds back $46 million from United
Nations in family planning money because of prospect that some of it
might fund infanticide in China. Chinese official snubbed when he
tries to tell administration that money won't go for that. - (750) -
By Ernest P. Furgurson - BC
    
     Religion - Moscow. Alarmed by reports of worshipping and baptisms
among party members, Communist authorites are showing rising concern
for religious interest among Soviet youth. - (700) - By Antero
Pietila - BC
    
     NATIONAL
    
     Meese - Senate Judiciary Committee votes 12-6 to recommend Meese to
Senate with the nominee picking up Democrats DeConcini and Heflin.
Senate committee approval given to Hodel at Interior and Herrington
at Energy. - (600) - By Vernon Guidry,Jr. - BC
    
     Stockman - In some of the best budget theater ever seen on Capitol
Hill, David Stockman takes on Pentagon excesses, farm state senators
worried about re-election and those now complaining defense budget is
too high after having given Reagan 95 percent of the defense systems
he wanted. An unusually feisty Stockman attacks military for
preferring to fund ''scandalous'' retirement system instead of
protecting national security, and blasts bailouts for farmers,
including program being planned by administration, which he says is
being extracted through 'political blackmail'. - (800) - By Nancy
Schwerzler - BC
    
     Economy - Reagan, in economic report, bashed the Federal Reserve as
never before, blaming it for 1981-82 recession and for economic
slowdown last year. Fed chief Volcker appears in Congress, saying
that administration should not have voice on key Fed committee. -
(800) - By Stephen Nordlinger - BC
    
     Elderly - Council of Economic Advisers paints glowing picture of
economic wellbeing of elderly, noting they reap ''growing benefits.''
This appears to be laying basis for cuts in Social Security. - (600)
-  By Stephen Nordlinger - BC
    
     Regan - New White House chief of staff appears before press,
announces three top aides, defends one choice (Pat Buchanan) stoutly.
The Buchanan choice as communications chief is mildly controversial,
given his background as Nixon White House press basher. - (700) - By
Robert Timberg - BC
    
     USA -- Furgurson column on Falwell-Kennedy debate. - (900) - BC
    
     EDITORIALS & COMMENTARY
    
     Editorial - Arms - For God and Pentagon. - (450) - BC
    
     History - Throughout the United States and much of the world, Black
History Month will be observed during the month of February. Black
History Month affords an auspicious opportunity for 37 million black
Americans to take stock of ourselves and to give serious thought to
what is required in order to enhance and ensure our survival and
human dignity. - (650) - By Samuel L. Banks - The Baltimore Evening
Sun - BC
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC
    
     SPORTS
    
     Flutie - Doug Flutie signs a $5.6 million contract with the New
Jersey Generals of the USFL. - (850) - By Vito Stellino - BC
    
     Bogues - Tyrone Bogues of Wake Forest has brought the little
basketball guard back into the game. - (1,075 in 2 takes) - By Kent
Baker - BC
    
     Kreh - Women are breaking away from the old notions of what society
expected them to-and not to do. And, if you are a male sportsman,
count your blessings. - (750) - By Lefty Kreh - BC
    
     Racing - Part II of a V part Series, Today, After 26 years on the
circuit, Buddy Baker finally is fielding his own team. - (600) - By
Sandra McKee - The Baltimore Evening Sun - BC
    
     BUSINESS AND FINANCIAL
    
     Ladder - The decision for Esskay to move its operations to
Indianapolis could be a valuable learning experince for us all. - 
(1,150 in 2 takes) - By Philip Moeller - BC
    
     Money - If the Small Business Administration is eliminated, as the
Reagan administration has proposed in its new budget, ''banks are
going to have to get serious about picking up the slack,'' according
to Eliot P. Hurd, who runs a consulting firm active in business
analysis and in finding loan funds. - (550) - Jesse Glasgow - BC
    
     ENTERTAINMENT & CULTURE
    
     Record - The Who are back, after two long years, only to bid
farewell once again, this time with a double album of material culled
from American and Canadian stops on the '82 tour. The package is
titled ''Who's Last'' - (550) - By Patrick Ercolano - The Baltimore
Evening Sun - BC
    
     Cedrone - An interview in Washington with 19-year-old Kevin Dillon
touring to promote his new file ''Heaven Help Us''. - (1,100 In 2
Takes) - By Lou Cedrome - The Baltimore Evening Sun - BC
    
     Hill-TV - Reviews of two shows on Public Television , ''Gold
Lust'', and a new science show, ''Discover''. - (800) - By Michael
Hill - The Baltimore Evening Sun - BC
    
     LIVING & STYLE
    
     Drug - A new drug, the first in its class, promises to be an
effective treatment-with fewer side effects-for high blood pressure
in both blacks and whites. Blacks are hit the hardest by the disease
which affects 60 million Americans. - (950 In 2 Takes) - By Sue
Miller - The Baltimore Evening Sun - BC
    
     Computers - Getting your computer to talk to another computer. - 
(900) - By Michael Himowitz - The Baltimore Evening Sun - BC
    
     FEATURES
    
     Afterthoughts - A weekly Column, this week on Best Sellers and what
our reading habits tell us about ourselves. - (900) - By Linell Smith
- The Baltimore Evening Sun - BC
    
     End Baltimore Sun's Recap Budget
    
    
nyt-02-06-85 0219est
n133  2330  05 Feb 85
PM-NYT-BUDGET-05 for 06
    Editors, attention pony wire points, the following items from the
N.Y. Times New Service file of Tuesday, Feb. 5, are called to your
attention.
    
INTERNATIONAL
    !Washington - ZEALAND - U.S. plans retaliation for New Zealand's
rebuff. By Bernard Gwertzman.
NY
    London - LIBYA - In gesture of good will to Church of England, Libya
frees four Britons held since last May. By R.W. Apple Jr.
    Warsaw - POLAND - Defense and prosecution in security police trial
make closing arguments. By Michael Kaufman.
    New Delhi - INDIA - India taking 'appropriate action' against 2
Soviet bloc diplomats. By By Sanjoy Hazarika.
    Portofspain - POPE - Pope visits Trinidad at Latin trip's end. By
E.J. Dionne.
    Washington - CHILE - U.S. to abstain on loan to Chile to protest
human rights abuses. By Joel Brinkley.
    New York - CONTRAS - Nicaraguan exile says umbrella organization
shouldn't serve as conduit for money to guerrillas. By James Brooke.
NYPT
    
COLUMNS
    !New York - BAKER-COLUMN - Russell Baker writes on Groundhog Day.
    !Washington - RESTON-COLUMN - James Reston writes on Reagan at 74.
    
WASHINGTON
    !BUDGET - Stockman assails military pensions in Senate hearing. By
Jonathan Fuerbringer.
    !REAGAN - Reagan plans upbeat speech on U.S. future. By Bernard
Weinraub.
    !MEESE - Senate Judiciary Committee votes, 12-6, to approve Edwin
Meese's nomination as attorney general. By Leslie Maitland Werner.
NY
    DEFENSE - Defense Secretary Weinberger forcasts better MX
protection. By Bill Keller.
    FARM - Bank group wants government to share cost of relief for
farms. By Seth King.
    STAFF - Donald Regan announces a series of high-level staff
appointments designed to adjust operations of the White House more to
his administrative sytle. By Gerald Boyd.
    BUDGET-RETIRE - Troop pensions lure recruits and critics.
    
NATIONAL-GENERAL
    New York - REAGAN-SCRIPTURE - Theologians fault Reagan on bible arms
lesson. By Kenneth Briggs.
     Washington - CORPS - The secretaries of defense and interior have
rejected a proposal by OMB to merge the two federal agencies
responsible for water projects, the Corps of Engineers and Bureau of
Reclamation. By Philip Shabecoff.
    New York - COLUMBIA - Columbia University has agreed to sell the
11.7 acres of land it owns under Rockefeller Center to the
Rockefeller Group for $400 million. By Maureen Dowd.
    Denver - SPEED - Raising the speed limit: issue and debate. By Iver
Peterson.
    Cambridge - HARVARD - Professor quits on sex complaint. By Fox
Butterfield.
NYPT
    
FINANCIAL
    !New York - TAX-IX - Part nine of Your Taxes series; today:
retirement accounts. By Gary Klott.
NY
    Washington - ECON - President submits Economic Message to Congress.
By Peter Kilborn.
    Washington - VOLCKER - Fed's Volcker says rates will reflect cuts in
deficits. By Clyde Farnsworth.
    New York - PHILLIPS - Icahn makes $4 billion bid for Phillips
Petroleum. By Robert Cole.
    New York - MARKETPLACE - Wall Street commentary. By Vartanig G.
Vartan.
    Detroit - SMALLCARS - Incentives used to sell small cars. By John
Holusha.
    Detroit - AUTOS - Jan. 21-31 car sales off 4.1 percent.
NYPT
    
SPORTSNY
    New York - FLUTIE - Quarterback Doug Flutie signs
multimillion-dollar contract to play for the New Jersey Generals of
the USFL.
NYPT
    !New York - VECSEY-COLUMN - George Vecsey writes on the Flutie
signing.
    
CULTURE-LIVING
    !New York - ONEPOT - Stirring up new one-pot meals. By Bryan Miller.
    !New York - INTERMARRY - The mixed wedding ceremony is just one way
in which people are coping with an increasingly common occurrence:
marriage to someone of another faith. By Ari Goldman.
    !New York - 60-MINUTE-GOURMET - Sauerkraut with cider and pork. By
Pierre Franey.
    !New York - WINE-TALK - Wine for the one-pot meal. By Frank Prial.
    !New York - PERSONAL-HEALTH - Experts question the value of
corrective shoes and orthopedic devices for children's feet. By Jane
Brody.
    !New York - TV-REVIEW - John Corry reviews ''Sexual Abuse of
Children'' on HBO.
    !Undated - BOOK-REVIEW - Michiko Kakutani reviews ''Wilt on High''
by Tom Sharpe.
NY
    New York - ATLANTA - Atlanta murder film to get CBS advisory. By
Sally Bedell Smith.
    New York - KITCHEN-EQUIPMENT - Kitchen shears, et al. By Pierre
Franey.
    Undated - CLAIBORNE-Q&A - Q&A from the world of food. By Craig
Claiborne.
    
nyt-02-06-85 0229est
n134  2340  05 Feb 85
BC-NYT-CLOSER
This concludes the N.Y.Times News Service report for Tuesday,
Feb. 5, 1985.
    Good night all points.
    
nyt-02-06-85 0230est
n135  2340  05 Feb 85
BC-CLAIBORNE-CAPERS ADV10 2takes
For release Sunday, Feb. 10
By CRAIG CLAIBORNE with PIERRE FRANEY
c.1985 N.Y. Times News Service
    Once, I saw a family menu book that had been handwritten - in the
form of a musical score - by the great Brazilian composer Heitor
Villa-Lobos. The ''score'' related to his country's national dish
known as feijoada. It had various sections: one marked meat, one
rice, another black beans, and so on, each a component of the dish.
    Over the years, I have compared various dishes to musical
compositions. Some may be downright symphonic. A classically composed
and harmonious blend of flavors with sea tones, for example, such as
one will find in a great bouillabaisse made in Marseilles. Or perhaps
a simple and majestic composition for solo instrument, which might
describe a slab of perfect foie gras with a well-chilled glass of
Sauternes on the side. Even a raucous and sassy piece suggestive of
sauerkraut with sausages and beer.
    And then there are the foods that I would label grace notes,
appealing little things that add a small surprise here and there:
cornichons, say, to go with boiled beef; a somewhat capricious
crystallized violet to enhance the center of a pumpkin pie; a
scattering of pink peppercorns to give color and flavor to fish in a
light cream sauce. But if I were to name my favorite, or at least
most widely used, grace note, it would be the common caper, pickled,
bottled and widely available in supermarkets and grocery stores.
Capers may be scattered on any number of sauces to accompany fish,
beef, chicken or veal.
    Caper bushes have grown wild in the Mediterranean basin for
thousands of years, and their buds are harvested in France, Spain,
Italy and Algeria. They are even produced to a limited degree in this
country, notably in California.
    Pierre and I have selected a few of our favorite uses for capers.
One is in a tartar sauce for crab cakes; this crab-cake recipe is the
creation of Chris French, a friend who owns a company called the
Traveling Gourmets in Newark, Del., and is one of the finest we've
ever encountered. Curiously enough, the cakes are bound with finely
crushed cornflakes.
    A second use is as a core for first-rate meatballs that are easily
made with veal and a touch of marjoram. A third one is in a fine
caper sauce to go with poached salmon or other poached fish. The
sauce is made with fish broth and a modest amount of cream.
    
    CHRIS FRENCH'S EASTERN SHORE CRAB CAKES
    
    1 pound crab meat, preferably backfin lump
    2 cups cornflakes
    2 teaspoons homemade mustard, English-style (see recipe)
    1 large egg, slightly beaten
    Salt to taste, if desired
    Freshly ground pepper to taste
    1 tablespoon mayonnaise
      1/4 cup finely chopped parsley
    1  1/2 cups corn, peanut or vegetable oil
    Tartar sauce (see recipe).
    1. Pick over the crab to remove any tough pieces of shell or
cartilage. Leave the crab meat in as large lumps as possible. Put the
crab meat in a mixing bowl.
    2. Put the cornflakes in the container of a food processor or
electric blender and blend to make the flakes as fine as possible.
    3. Blend the mustard, egg, salt, pepper, mayonnaise and parsley.
Spoon and scrape this over the crab. Sprinkle with the crumbs and
blend gently but thoroughly. Divide the mixture into six portions of
equal size.
    4. Lay out six squares or rectangles of plastic wrap, one at a time
on a flat surface. Put one portion of crab mixture in the center.
Fold the sides of the plastic wrap over to neatly and compactly
enclose the crab mixture. Flatten each portion to make six crab
cakes, each about an inch thick or slightly less. Refrigerate until
ready to use.
    5. Heat the oil in a skillet to a depth of about half an inch. If
necessary, add more oil. Heat to a temperature of 350 degrees. It may
be best to cook the crab cakes in two batches. Cook each batch for
two and one-half minutes, total cooking time, turning the cakes once.
They should be golden brown on both sides. Drain on absorbent
toweling. Serve with tartar sauce on the side.
    Yield: Six servings.
    
    HOMEMADE MUSTARD, ENGLISH-STYLE
    
    Put two tablespoons of powdered mustard in a mixing bowl and blend
with two teaspoons of water or enough to make a paste. Let stand 20
minutes to develop flavor.
    Yield: About one tablespoon.
    (more) nn
    
nyt-02-06-85 0239est
n136  2348  05 Feb 85
BC-CLAIBORNE-CAPERS ADV11 1stadd
NYT UNDATED: one tablespoon.
For release Sunday, Feb. 10
    
    TARTAR SAUCE
    
      1/2 cup mayonnaise
    1 hard-cooked egg
    1 tablespoon finely chopped shallots
    2 tablespoons finely chopped parsley
    2 tablespoons finely chopped chives
    2 tablespoons capers, drained and pressed to extract excess liquid
    1 teaspoon lemon juice
      1/4 teaspoon Tabasco sauce.
    1. Put the mayonnaise in a mixing bowl.
    2. Put the egg through a fine sieve and add it. Add the shallots,
parsley, chives and capers. Add the lemon juice and Tabasco sauce and
blend.
    Yield: About three-quarters of a cup.
    
    ITALIAN MEATBALLS WITH CAPERS (Polpettine ai capperi)
    
    1 pound finely ground lean veal
    1 tablespoon butter
    One-third cup finely minced onions
      1/4 cup fine fresh bread crumbs
    2 tablespoons milk
    1 small egg, lightly beaten
    Salt to taste, if desired
    Freshly ground pepper to taste
    1 teaspoon dried marjoram, crushed
    2 tablespoons finely chopped parsley
      1/4 cup drained capers
      1/4 cup flour
    1 tablespoon corn, peanut or vegetable oil
      1/4 cup dry white wine.
    1. Put the meat in a mixing bowl.
    2. Heat the butter in a saucepan and add the onions. Cook, stirring,
until the onions are wilted. Set aside and let cool briefly.
    3. Soak the bread crumbs in the milk and add this to the meat. Add
the egg, cooked onions, salt and pepper. Add the marjoram and parsley
and blend well.
    4. Divide the mixture into 14 portions and flatten each. Make a
slight depression in the center of each meatball. Add an equal
portion of the capers in the center of each. Bring up the edges and
shape into balls, enclosing the capers in the center.
    5. Dredge each ball in flour and shake off excess.
    6. Heat the oil in a heavy, non-stick skillet and add the meatballs
without crowding. Cook, turning carefully, until the meatballs are
browned on all sides, about 8 to 10 minutes. Add the wine and cover
closely. Let simmer 12 minutes. Serve with a little of the hot pan
liquid spooned over.
    Yield: Fourteen meatballs.
    
    POACHED SALMON STEAKS
    
    4 salmon steaks, each about  1/2 pound and 1  1/2 inches thick
    4 sprigs fresh thyme or  1/2 teaspoon dried
    4 sprigs fresh parsley
    6 peppercorns
    1 bay leaf
    Salt to taste, if desired
    2 tablespoons white-wine vinegar
    5 cups water, approximately
    Caper sauce (see recipe).
    1. Put the salmon pieces in one layer in a skillet or casserole and
add the remaining ingredients except the caper sauce. There should be
enough water to barely cover.
    2. Bring to the simmer and cover closely. Let simmer about seven
minutes. Drain and serve with caper sauce spooned over.
    Yield: Four servings.
    
    CAPER SAUCE
    
    1 tablespoon butter
    2 tablespoons flour
      1/8 teaspoon paprika, preferably imported
      3/4 cup fish broth or bottled clam juice
    Salt to taste, if desired
    Freshly ground pepper to taste
    1 egg yolk
      3/4 cup heavy cream
    3 tablespoons drained capers, squeezed to extract excess liquid.
    1. Melt the butter in a saucepan and add the flour and paprika,
stirring with a wire whisk. When blended, add the fish broth,
stirring rapidly with the whisk. Add salt and pepper.
    2. Beat the egg in a small bowl and add the cream, stirring to
blend. Add this to the sauce. Bring to the simmer, stirring
constantly, until slightly thickened. Do not boil or the sauce may
curdle. Add the capers, stir and remove from the heat.
    Yield: About one and one-half cups.
    
nyt-02-06-85 0247est
n137  2357  05 Feb 85
BC-HISTORY-(Balt.)
     By Samuel L. Banks
    c. 1985 The Baltimore Evening Sun
    
     Throughout the United States and much of the world, Black History
Month will be observed during the month of February. Carter Godwin
Woodson, the venerable founder in 1915 of the Association for the
Study of Afro-American Life and History, provided national leadership
in fostering and sustaining research and study of black life and
history until his death in 1950. Woodson, too, was the second black
Ph.D. recipient from Harvard University; William E. B. DuBois was the
first.
     Were he alive he would be tremendously pleased with the national
and international emphasis on Afro-American life and history. He
would also be immensely saddened by the national retreat on human and
civil rights by the Reagan administration and the majority white
society.
     The national theme adopted by the national Association for the
Study of Afro-American Life and History for the 1985 observance of
Black History Month is ''The Afro-American Family: Historical
Strengths for the New Century.'' It is very encouraging that a wide
variety of activities in support of the national theme has been
planned in the nation's 16,000 school districts, in more than 3,000
institutions of higher education, ASALH's 175 branches and civic and
community organizations. What must be borne in mind as Black History
Month is observed is that it is not simply a month long observance,
but a year-in and year-out effort.
     Black History Month affords an auspicious opportunity for 37
million black Americans to take stock of ourselves and to give
serious thought to what is required in order to enhance and ensure
our survival and human dignity.
     A significant starting point is to believe in ourselves and to
maintain pride in ourselves. Most of you over 21 will remember the
popular James Brown line, ''Say it loud, I'm black and I'm proud.''
     However, it is not enough to say it, you must exemplify the concept
in your daily living. If you believe that you are unworthy or
inferior because of your color, then you are not going to believe in
yourself or possess racial pride.
     You also have an obligation to make certain that you have an
understanding of the contributions of our people to American and
world history. A comment of Woodson in his classic ''Mis-Education of
the Negro,'' ASALH's world renowned founder and universally regarded
''Father of Black History,'' is instructive:
     It is true that many Negroes do not desire to hear anything about
their race, and few whites of today will listen to the story of woe.
With most of them the race question has been settled. The Negro has
been assigned to the lowest drudgery as the sphere in which the
masses must toil to make a living; and socially and politically the
race has been generally proscribed. Inasmuch as the traducers of thy
race have ''settled'' the matter in this fashion, they naturally
oppose any effort to change this status.
     Each of us has an opportunity to make a positive and effective
difference wherever we are located. What is needed is a summoning of
will not to be a part of a placid and stultifying status quo.
     As we observe the 59th observance of Black History Month, the
''fierce urgency of now,'' serves as a beacon for us to know and
understand ourselves better. Steve Biko, a martyr for freedom in the
racist and oppressive regime of South Africa, offers an inspirational
and steadying challenge:
     We have to set out on a quest for true humanity, and somewhere on
the distant horizon we can see the glittering prize. Let us march
forth with courage and determination, drawing strength from our
common plight and our brotherhood. In time we shall be in a position
to bestow upon South Africa the greatest gift possible-a more human
face.
     I challenge you on the 59th Black History month observance, through
careful study, involvement and pride in our heritage to acquire ''a
more human face.'' The time is now at hand.
    
     Samuel L. Banks is supervisor of social studies in the Baltimore
City Public Schools and national president of the Association for the
Study of Afro-American Life and History.
    
     End History
    
    
nyt-02-06-85 0256est
n138  2358  05 Feb 85
BC-OTHER-HAND-(Balt.)
     By Dan Berger
    c. 1985 The Baltimore Evening Sun
    
     On the Other Hand
    
     Budget robbers are casing the defense bank. That's where the money
is.
    
     The old Democratic coalition of the poor and middle classes fell to
pieces. Stockman is putting it back together.
    
     Have they trimmed the fat out of Management and Budget?
    
     Washington no longer tries to panic the Vietnamese on the Communist
China danger. Hanoi does.
    
     End Other-Hand
    
    
nyt-02-06-85 0257est
n139  0008  06 Feb 85
BC-KREH-(Balt.)
     By Lefty Kreh
    c. 1985 The Baltimore Sun
    
     Women are breaking away from the old notions of what society
expected them to--and not to do. And, if you are a male sportsman,
count your blessings.
     Most husbands want to get away from it all now and then when they
go hunting, fishing, camping, hiking, boating or enjoy one of the
outdoor-oriented sports. But deep down, most of us really would like
to spend much of that time with our wife or girlfriend, the person we
care the most about in this world.
     In the past women who participated in what were considered ''male
sports'' were sometimes looked upon with suspicion, or not considered
feminine. The girl who climbed cliffs, waded the rivers fishing with
her husband, or shot her own game and paddled her own canoe was often
not considered a proper lady.
     There is still a female segment of our society that feels this way;
but, among the younger women, the idea that they can enjoy just about
any sport a man can, is rapidly gaining force. I know a young lady,
who is like a daughter to my wife and me and she can throw 100 feet
of fly line, wade any stream that's not too deep and catch just as
many fish as her husband--who is as proud of her as we are.
     In the Baltimore area is an organization, four years old, that is
dedicated to women having fun outdoors. Women in Nature (WIN). It is
similar to a number of other organization: Pennsylvania Women
Outdoors, Washington Women Outdoors, and is big in other areas of the
country, including Boston and Minnesota.
     I recently talked to Susan Koerber, Treasure of WIN. ''The
organization got started when Rita Yerkes, from Towson State, and a
friend, began getting together women to have fun outdoors. Finally,
WIN was organized and we're really enjoying ourselves,'' Susan
explained.
     WIN has 60 paid members (dues are $7.50 a year) and there are no
scheduled regular meetings,(they do have a steering committee that
meets monthly). But, they do hold a fall and spring official
''gathering''. My impression of WIN is that it's not a regulated
organization with meetings that discuss changes in the constitution
and the bylaws. Rather, it's an action group. The fall and winter
gatherings may be in the form of an outdoor picnic or other outdoor
oriented activities.
     WIN holds a number of programs each year, which are conducted by
qualified instructors. They range over the outdoor spectrum. Bike
trips are taken throughout the area. Backpacking and hiking are two
favorite activities. Club members also enjoy cross country and
downhill skiing. They take raft and white water trips.
     Last year rock climbing was enjoyed by a number of the group, who
climbed with experts at the sport. Bird watching trips and even
crabbing and fishing adventures are enjoyed.
     There are educational activities, too--but they're for fun. Next
week an afternoon class in basic outdoor photography will be offered
members at the Towson State University. Other classes are held to
teach or improve the members' skills in the outdoors.
     ''We need more qualified instructors, who will help us improve our
outdoor skills, and we do want to hold more classroom-type programs,
which our members find enjoyable and enlightening,'' said Susan.
     Members also share the skills. If someone goes on an especially
interesting trip, she may show slides, or impart information that
will be of value to others comtemplating the same trip.
     The organization is made of women of all ages. ''We don't accept
very young women, we like them to about the age of a college
graduate, or older. We have a few women past 60 that are having that
time of their lives,'' explained Susan.
     You don't have to be a member to particpate in the activites. There
is usually a very small fee for each event, and non-members simply
pay a little more. If you would like to join WIN, you can write:
Susan Koerber, 1427 Jeffers Rd., Baltimore, Md. 21204.
     A paragraph on the first page of an activites schedule clearly
states the intentions of those who enjoy WIN: Society has built up
many walls and escape routes for all its members. ''The Women In
Nature experiences center on women breaking down these walls and
avoiding escape routes. The natural environment does not know what
women as a group can or cannot do. It has not been told of their
supposed frailty or their inability to think and do for themselves.
Our group provides a unique opportunity to explore, discover and
experience themselves and other women as capable people. A sharing of
excitement, fear, challenge and accomplishment can lead to greater
understanding of self, the group and our environment.''
    
     End Kreh
    
    
nyt-02-06-85 0308est
n140  0017  06 Feb 85
BC-RACING-2-(Balt.)
     By Sandra McKee
    c. 1985 The Baltimore Evening Sun
    
     (Racing part II of a V part series)
    
     ENOCHVILLE, N.C. - The look was quizzical, the smile genuine. Buddy
Baker, all 6-feet, 6-inches of him, stood in his race shop,
surrounded by the trappings of his sport.
     Despite 26 years in the business, it was the strangest sight Baker
has seen in a long time.
     ''I can't believe after all these years I'm still learning about my
sport,'' he said, as final touches were being administered to his
Oldsmobile. ''I've always been a driver, but now this car is more
than sheet metal. Let me tell you, the first time you see a bill for
engine parts, whew! You can build a four-room condo a lot cheaper.''
     See a bill?
     Lead-footed Buddy Baker has wrecked more than his share of race
cars while winning 19 races during his career. In fact, he is
notorious for smashing race cars - but no one has ever presented
Baker with a bill.
     That, however, was before Buddy Baker decided to look to the future
and establish himself as a race car owner. ''So when I get tired of
all the driving, someone else can step in and I'll still be a part of
the sport,'' he says.
     He drove for the Wood Brothers last season and failed to win a
race. He hasn't won a race since the 1983 Firecracker 400, and that
victory ended a two-year drought.
     When Danny Schiff, owner of Bull Frog Knitts (a manufacturer of
children's clothes), suggested they go into a partnership and start
their own team, Baker jumped in with both feet.
     The team now has five Oldsmobiles in the works, including the one
Baker is taking south this week for the Daytona 500 Grand National
race.
     But from the moment Baker's feet touched the concrete floor of his
own garage, the shock waves have been something to see.
     ''I've got to tell this one on Buddy,'' said Baker's crew chief,
Robert ''Boobie'' Harrington. ''He's been a barrel of fun. Watching
him write checks has been something. You know he's tight as bark on a
tree? Anyway - it was just a few weeks ago - I took Buddy to a
high-performance parts store to buy rods for the engine. The salesman
told us the price was twenty-eight-sixty-five. Well, Buddy brightened
and said, 'Hey, that's a good deal. We ought to take several of these
and stock up at this price.'
     ''The clerk chuckled. 'That's twenty-eight-sixty-five as in
$2,865,' he said. I thought Buddy was going to faint.''
     ''My face must have fell a foot,'' Baker admitted sheepishly. ''I
couldn't believe it. A price of $2,865 for some parts no bigger than
a box of Moon Pies. As we got ready to leave, Boobie started to put
'em in the trunk of our car, but I told him no way. At that price,
they were riding up front with us where I could keep an eye on them.''
     Yet Baker has no qualms about the new adventure. He believes being
this close to the production of the car will make him a better
driver. He says he'll be calmer and ''nothing will surprise me
anymore.''
     ''I wouldn't take anything for this,'' Baker said. ''I'm
understanding a lot more about my sport than I've ever known. And it
would be kind of bad to spend 25, 26 years in a sport and then walk
off and leave it. I'm looking down the road. Everyone is looking to
see what kind of car owner I'm going to be, and so am I.''
     The watchers may also be interested in finding out if being an
owner will make Baker a more thoughtful driver. There could be a
knee-jerk reaction between his checkbook and the gas pedal.
     ''What's around me won't just be metal anymore,'' Baker admitted.
''Now it's $25,000 I'm thrashing around in. I think I might mash the
clutch quicker - you can believe that.''
    
     WEDNESDAY: Two's company but three is sometimes trying when you get
a trio of racing's biggest names under one garage roof. That's the
way it is for Junior Johnson, Darrell Waltrip and Neil Bonnett.
    
     End Racing II
    
    
nyt-02-06-85 0316est
n141  0025  06 Feb 85
BC-MONEY-(Balt.)
     By Jesse Glasgow
    c. 1985 The Baltimore Sun
    
     If the Small Business Administration is eliminated, as the Reagan
administration has proposed in its new budget, ''banks are going to
have to get serious about picking up the slack,'' according to Eliot
P. Hurd, who runs a Baltimore consulting firm active in business
analysis and in finding loan funds.
     Mr. Hurd thinks the government has not given sufficient warning of
this move which would ''put a serious crimp on expansion'' by small
business. He said the effects would be evident later this year, first
in the form of mergers. In other cases, small firms will simply go
out of business.
     In the process of banks taking on some of the risks the SBA has
been assuming, Mr. Hurd said, ''they're going to have to develop
better lending officers.''
     This is not a disappointed loan applicant talking, because for nine
years Mr. Hurd was in banking. Some years before that, he established
Tidewater Industrial Leasing Corporation, which was active in
equipment leasing.
     In 1972 he sold the company to Union Trust Company and stayed on to
head what became Union-Tidewater Financial Company. Several years
ago, when the bank placed its secured lending operations in a new
assets management arm, Mr. Hurd left to form the present Tidewater
Funding Management Company.
     For at least two decades, his customers have been small business
firms, sometimes a machinery concern looking for $100,000 with which
to buy a new turret lathe or a printer who had to raise twice that
much for a new four-color press.
     ''They either borrowed money to buy the new technology or their
pricing schedules got completely out of whack,'' he said.
     For such borrowers, getting the SBA to guarantee 90 percent of a
loan being made by a commercial bank often was the difference in a
small business man's getting the loan or not.
     The SBA also makes direct loans, which in fiscal 1984 totaled $242
million. It had another $3.2 billion allocated last year for
guaranteed loans. The 1985 budget provides the same amount for direct
loans and $3.3 billion for guaranteed loans.
     Under the Reagan administration's budget proposal for 1986, an
agency of the Commerce Department would take over some of SBA's
programs, but SBA itself and direct lending would be totally
eliminated.
     The budget proposal also would end direct loans by the
Export-Import Bank, which assists small business firms trying to
promote sales aboard.
     At the Baltimore office of SBA, Raymond P. Handy said yesterday the
government's proposal to end Federal lending to small businss has not
brought any wave of loan applications. ''Activity usually is slow in
the weeks following Christmas,'' he said.
     Mr. Handy, who is the assistant director for finance, said the
local office usually has ten to twelve loan applications pending at
any one time. It takes about ten days to process a guaranteed loan
and perhaps a month to do all the paperwork for a direct loan.
     For the three-month period that ended December 31, the Baltimore
office processed 53 applications, 42 of which were for guaranteed
loans accounting for about $5 million of the $6.412 million quarterly
total.
     Along with its lending operations, SBA provides advice and
counseling and keeps a steady stream of information directed to small
business.
     Along with its workshops and seminars, SBA has a cadre of
experienced men and women available to give help to individual
companies on specific problems. The group is called SCORE, short for
Service Core of Retired Executives.
    
     End Money
    
    
nyt-02-06-85 0324est
n142  0033  06 Feb 85
BC-CEDRONE-2Takes-(Balt.)
     By Lou Cedrone
    c. 1985 The Baltimore Evening Sun
    
     Kevin Dillon knows what the first question will be, and he's
prepared.
     ''People are going to ask, and I'm ready for it, but I did it on my
own,'' he said. ''I don't tell anyone that I'm related to Matt. If
they ask, I tell them, but I don't offer that information.
     ''I was going to change my name. I was going to take my mother's
maiden name, Brady, but I decided not to. I like my name. Kevin Brady
doesn't sound like me.''
     Kevin and Matt are not the only Dillon offspring. ''I have an older
brother, Paul, a sister and two younger brothers,'' said Kevin. ''No,
they're not into acting. Paul is into art. He likes to draw.''
     We met at the Madison Hotel in Washington. Dillon was touring to
promote ''Heaven Help Us'' and he admitted that he had been treated
well on the tour. ''But,'' he said, ''I'll have no trouble getting
back to normal. I still like to go to McDonald's.''
     Dillon, 19, got the role in the film by auditioning for it. ''I had
four callbacks, did a screen test, they liked me, and I got the
part,'' he said.
     ''Heaven Help Us'' takes place at a Catholic school in 1965. It is
not exactly an endorsement of the Catholic school system. ''I went to
Catholic school,'' said Dillon. ''I had fun, and while it wasn't as
bad as it is in the film, I've talked to other guys who have had
those experiences. The movie doesn't make it look that bad, though.
There is only one bad brother. The others are pretty good.''
     He laughed. ''I've got to stick up for it or I'll be
excommunicated,'' he said.
     Acting, he said, was ''always in the back of my mind, but I never
thought it would happen. If I don't make, I can always go back to my
art. I like to draw.''
     He isn't sure he wants to go to college. ''I do and I don't,'' he
said. ''I enjoy my freedom, but I don't know. I'm only two years into
this business. I'm a newcomer, and I love it.''
     -0- Dillon's companion on the tour was Malcolm Danare, 22, who
plays the brainy wimp in the film. In person, he is most definitely
not a wimp. 'No way,'' he said. ''I'm not the nerd I play on the
screen.''
     Entrance into films was easy for him. His father, who owns a fleet
of limos, was driving along the highway when he was flagged down by
Franc Rodman, the director of ''The Lords of Discipline.'' Rodman's
car had died, and when he got into Danare's limo, Danare told him
about his son. ''He's an actor,'' he said.
     ''I wasn't,'' said Malcolm. ''I had done some things in school, but
I wasn't an actor.''
     Told to report to Paramount, he was cast on the spot, and shortly
after that, did ''Flashdance.''
     ''I got that one when I was looking for the 'Lords of Discipline'
set and wandered into someone's office. A few minutes later, a
security guard came after me. He said the lady I had talked to was
doing the casting for 'Flashdance' and thought I was perfect for the
role.''
     ''Christine'' followed. He looked menacing in that. ''I cut my hair
and wore boots with six-inch heels,'' he said. ''I was 6 feet tall.
     ''It's been so easy,'' he said. ''I have a good friend, Mark. He
wants to be an actor bad, but he can't make it. I've tried to help.''
     Danare realizes his appearance is working for him, but he thinks he
has avoided the typecasting trap. ''All my roles have been
different,'' he said.
    
     MORE
    
    
    
nyt-02-06-85 0332est
n143  0041  06 Feb 85
BC-CEDRONE-1stadd-(Balt.)
    
     pickup xxx he said.
    
     You might not suspect, but Danare played hockey for years. ''That's
what I wanted to do,'' he said. ''I wanted to be a pro hockey
player.''
     He is picked on in the movie, but he has never been picked on in
real life. ''Never,'' he said.
     ''I'm very happy,'' he said. ''I'm having fun.''
     He doesn't know what he would be doing if he weren't in show
business. ''I'm asked that all the time,'' he said. ''I don't know. I
hope to be in entertainment business all the time.''
     One thing he will not do is horror movies. ''I hate them,'' he
said. ''I will never do them. They exploit women. I walked out on
one, and I never walk out on movies. I will never, never do one.''
     Told there will be another ''Friday the 13th,'' (''A New
Beginning''), Danare said he won't see it. ''I don't have to,'' he
said.
     -0- Brent Huff was honest. Told that the trailer for ''The Perils
of Gwendoline'' looked as though it might be the best of the film, he
said ''Unfortunately, that's true.
     ''It's a French film, but they don't advertise that fact,'' he
said. ''It's all dubbed, and American audiences don't go for dubbed
movies.''
     Huff did his own dialogue but later, in the studio, where the
entire film was dubbed. ''Tawny Kitaen and I spoke for ourselves, but
all the others were dubbed by American actors,'' he said.
     Just Jaeckin, the director of the film, found Kitaen and Huff in
New York, where he was auditioning actors for the film.
''Fortunately, I hadn't seen his previous films,'' said Huff.
''People are assuming that this is the same kind of movie,'' he said.
     Jaeckin did ''Emmanuelle'' and ''The Story of O,'' soft-core porn
movies, and while ''Gwendoline'' is a bit to the side, it bears the
Jaeckin stamp.
     ''We filmed in Morocco and the Philippines,'' said Huff, who says
that this is his real name. ''My full name is Coral Brent Huff. My
parents must have had something against me. I don't know where they
got it because we didn't live near the water,'' he said.
     Huff did some acting in college and then became a model. It was
easy for him. ''I went into an office to inquire about employment,
and I was asked if I wanted to model a bathing suit. I did, got $250
for it and decided that from thereon, I would be a model.''
     He did very well at it, here and in Europe, then two years ago, at
the age of 29, decided he would go back to acting. ''It was then or
never,'' he said. ''Now, it's starting to pay off.''
     He is little more than a hunk in ''Gwendoline,'' and he realizes
this may be a trap. ''I want to get away from that,'' he said. ''I'm
more comfortable doing character parts. It scares me, but this was a
role that was too good to pass up.''
     Playgirl made an offer, but Huff is not interested. He knows this
can work against him.
     He's done two more films, ''American Ninja'' and ''Deadly
Passion.'' He is enthusiastic about the second. ''It's like 'Body
Heat','' he said.
     He is busy reading scripts. ''At this point in my career, all the
great parts are going to known actors,'' he said. ''I'll just wait
and take the best one that comes along.''
     TV, he says, is out. ''I might do a series if the idea is good, but
I would rather do low-budget films and hope that one turns out well.
     ''And no more 'Ninja' movies,'' he said.
     How about another ''Gwendoline?''
     ''Well, I promised Jaeckin I would do a sequel if one is made, and
if the film hits, I suppose I will,'' he said.
    
     End Cedrone
    
    
nyt-02-06-85 0340est
n144  0048  06 Feb 85
BC-RECORD-(Balt.)
     By Patrick Ercolano
    c. 1985 The Baltimore Evening Sun
    
     Some people find it difficult to say goodbye. Take the Who, the
once-great, now-defunct British rock band. In 1982 the quartet
planned a ''farewell'' tour of the world, calling it quits after
nearly two tumultuous decades together. Millions of Who fans went to
the shows to pay their last respects and say so long for good.
     Now the Who are back, two long years later, to bid farewell once
again, this time with a double album of material culled from American
and Canadian stops on the '82 tour. The package is titled ''Who's
Last'' (MCA, MCA2-8018).
     The temptation is strong to say ''Who Cares.''
     Perhaps the best thing that could be said about the Who was that it
was a band of nearly peerless passion. The electricity of the music
came across in the band's recordings but especially in its live
performances.
     That's why ''Who's Last'' is a sad final testament. Each of the 16
songs included here are played cleanly and with obvious skill, but
with virtually no fire. Great rock anthems such as ''My Generation,''
''Baba O'Riley,'' ''Won't Get Fooled Again,'' ''Pinball Wizard'' and
others become great yawns.
     A large part of the problem, of course-and a large part of the
reason the Who are no more-is that these guys, even three years ago,
were not spring chickens anymore.
     For evidence you need look no farther than the album photos of
vocalist Roger Daltrey, guitarist Pete Townshend, bassist John
Entwistle and drummer Kenney Jones. The band didn't quite die before
it got old.
     As for poor Kenney Jones . . . He's taken a lot of heat for not
being as powerful a drummer as the late Keith Moon, so it would seem
unfair to rap Jones further.
     Still, what the heck? Kenney may be a decent drummer, but these
songs are simply not the same without Moon's frenetic pounding. Then
again, by this stage, a lot of things about the Who weren't the same
as before.
     If you want to remember (or find out) what the Who were about,
listen to ''Who's Next,'' not ''Who's Last.'' Who's kidding whom?
     -0- Well, kids, life has meaning once again, for here are the
latest national record charts from Billboard magazine:
    
     TOP SINGLES: 1. ''I Want to Know What Love Is'' by Foreigner; 2.
''Easy Lover'' by Philip Bailey; 3. ''Careless Whisper'' by Wham; 4.
''Lover Boy'' by Billy Ocean; 5. ''The Boys of Summer'' by Don Henley.
     TOP ALBUMS: 1. ''Like A Virgin'' by Madonna (platinum-more than one
million units sold); 2. ''Born in the U.S.A'' by Bruce Springsteen
(platinum); 3. ''Make It Big'' by Wham (platinum); 4. ''Agent
Provocateur'' by Foreigner; 5. ''Purple Rain'' by Prince and the
Revolution (platinum).
     BLACK SINGLES: 1. ''Mr. Telephone Man'' by New Edition; 2. ''Beep A
Freak'' by the Gap Band; 3. ''Misled'' by Kool and the Gang; 4.
''Gotta Get You Home Tonight'' by Eugene Wilde; 5. ''Missing You'' by
Diana Ross.
     COUNTRY SINGLES: 1. ''Ain't She Something Else'' by Conway Twitty;
2. ''Something in My Heart'' by Ricky Skaggs; 3. ''Make My Life with
You'' by the Oak Ridge Boys; 4. ''One Owner Heart'' by T.G. Sheppard;
5. ''Baby's Got Her Blue Jeans On'' by Mel McDaniel.
     ADULT CONTEMPORARY SINGLES: 1. ''Careless Whisper'' by Wham; 2.
''Foolish Heart'' by Steve Perry; 3. ''I Want to Know What Love Is''
by Foreigner; 4. ''You're the Inspiration'' by Chicago; 5. ''All I
Need'' by Jack Wagner.
    
     End Record
    
    
nyt-02-06-85 0348est
n145  0101  06 Feb 85
BC-COMPUTERS-(Balt.)
     By Michael Himowitz
    c. 1985 The Baltimore Evening Sun
    
     There are few things more frustrating for the new user than getting
his computer to talk to another computer. It's particularly
bothersome because there has been so much hype lately about how easy
it is to access a burgeoning number of on-line telephone databases
that provide such services as stock and bond reports, the latest news
and weather, airline schedules, encyclopedias, programs and games.
     Communicating with other computers isn't really very hard. But it
helps to have some idea of what you're doing, and why you're doing it.
     To talk to other computers, you need two things. The first is a
physical channel of communication that will allow you to speak with
other machines over the phone. The second is a program, or set of
instructions, that tells your computer how to do the talking.
     The physical channel is commonly referred to as a serial port, and
sometimes as an RS-232. This is a circuit board that contains the
hardware necessary to communicate with other computers according to
an industry standard that allows computers of widely differing
designs to talk to one another.
     It's called a serial port because it sends and receives data one
bit at a time, using the kind of pulses that can travel over a single
telephone wire. Each of these bits represents a binary one or zero
(the language of computers), and it takes 10 bits to make up a single
typewritten character.
     The other kind of port commonly found in computers is a parallel
port, so called because it uses 10 wires to send all 10 bits
simultaneously. Parallel ports are generally used for printers. They
are not capable of communication over long distances or over
single-wire phone lines.
     Inexpensive home computers often have serial ports built in. This
saves money because the port can be used for phone communication or
to drive printers that have similar serial ports.
     More expensive home computers are likely to have parallel ports
standard. A serial port (sometimes referred to as a serial card) is
an extra-cost option. Most of them run $75 to $100. If your computer
does not have a serial port, you can have one installed by your
dealer. You can also do it yourself fairly easily. (I've done it, and
if I can do it, anyone can.)
     The second piece of equipment you will need is a modem. This stands
for modulator-demodulator. It's a gadget that plugs into the serial
port and turns the data the computer puts out into electrical pulses
that can be sent over phone lines. Modems also take incoming pulses
from the phone line and turn them into signals the computer can
understand.
     Modems come in a variety of shapes, sizes and prices. Accoustic
modems actually use the microphone and speaker in the handset of your
phone to transmit audible signals over the line.
     Direct-connect modems plug into the phone jack itself and form a
bridge between your computer and wall outlet. You can buy a
stand-alone modem that is separate from the computer, or in some
cases, buy a modem that plugs into one of the expansion slots inside
the machine.
     Generally speaking, direct-connect modems are more reliable, and
less subject to outside noise interference, but you have to have a
phone system with modular jacks to use them. If you are using a
computer in a place without modular jacks, you may want an accoustic
modem.
     There are other features that set modems apart in price and
performance. One is the speed at which they transmit and receive. The
less expensive modems will only communicate at 300 bits per second
(about 30 characters). More expensive modems will also talk at 1200
bits per second, or four times as fast.
     The higher speed is valuable if you're talking long distance or
searching a database with high charges for connection time.
     More expensive modems will also automatically dial pre-programmed
numbers and answer your phone, allowing you to dial up your home
computer from any other computer equipped with a modem. Not
surprisingly, these are called auto-dial, auto-answer modems. Their
features are nice but not strictly necessary.
     The least expensive direct-connect modems are available for as
little as $80. The most expensive, 1200-bits-per-second automatic
modems run anywhere between $250 and $500, although the price is
coming down every day. Since the circuitry in these modems is old-hat
stuff, even the cheapest modem will give you as good performance as
the most expensive model. The question to ask yourself is whether you
want the extra speed and automatic features of the high-priced
gadgets.
     Once you have the hardware, you will need a program that turns your
computer into a terminal that can communicate over the phone. These
are known as terminal or communications programs.
     At the very least, communications software should allow you to talk
interactively with other computers, load in your data files from disk
or tape, transmit and receive files, and store files you receive to
disk or tape.
     Good communications programs are available from $50 to $200. Unless
you have to talk to large mainframes that are not specifically
attuned to communicating with personal computers, the less expensive
ones will do the job.
     In fact, there are many public domain programs which are available
free for the asking from user clubs or computer bulleting boards. The
best-known of these are MODEM7, which is available for CPM and MSDOS
computers, and PC-TALK, which works on the IBM and compatibles.
     I used a variant of MODEM7 to transmit this column to the
newspaper, so I can attest that it works just fine. If you want extra
features, such as the ability to send data to a printer as it's being
received or edit files directly before sending them or storing them,
you may want a fancier program.
    
     End Computers
    
    
nyt-02-06-85 0400est
n146  0108  06 Feb 85
BC-DRUG-2Takes-(Balt.)
     By Sue Miller c. 1985 The Baltimore Evening Sun
    
     A new drug, the first in its class, promises to be an effective
treatment-with fewer side effects-for high blood pressure in both
blacks and whites.
     Blacks are hit the hardest by the disease which affects 60 million
Americans. Not only is high blood pressure more common in blacks but
they also suffer from the severest form of the disease.
     Until now, blacks have only responded to the therapy of diuretics.
Beta blocking drugs, which block adrenalin signals and alter blood
flow, have not worked for them.
     But, this new drug-labetalol-changes things.
     ''In contrast to the usual beta blockers, labetalol has been found
to be more effective in black patients,'' says Dr. John David Wallin
of Tulane University Medical School in New Orleans, who has conducted
extensive trials of the new drug.
     Labetalol, which has just been released on the market, does more
than other beta-blocking drugs because it has an effect on alpha
receptors as well as beta receptors for hormones at the blood vessel
level.
     As a result, there is an increased dilation of blood vessels
immediately and this has an additional effect in lowering blood
pressure.
     And, because labetalol lessens the drop in the heart rate and does
not reduce the cardiac output-the amount of blood the heart pumps
out-it prevents some of the side effects of other beta
blockers-fatigue, exercise intolerance and changes in kidney function.
     ''It seems that blood flow to muscles in arms and legs is a little
better during exercise so that the fatigue and cold extremities that
are sometime seen with beta blockers are not as big a problem with
this drug,'' says Wallin, a professor of medicine and chief of the
kidney diseases section at Tulane.
     Labetalol is unique because it can be taken orally. It can also be
given into the vein to a patient who has extremely high blood
pressure which needs to be lowered over a matter of hours rather than
days.
     For this type of patient, the drug is given in low and repeated
doses intraveneously initially to bring the pressure down in a smooth
way and then, orally, to keep the blood pressure under control.
     In this emergency situation a patient is in what is known as ''a
hypertension crisis''-he comes to a doctor with a stroke or heart
failure from hypertension or suffering from headache, weight loss and
vomiting from the high blood pressure's effects on the brain.
     A doctor wants to get the pressure down in these patients very
quickly because the mortality is 100 percent if they are not treated
effectively.
     ''This drug has significant advantages,'' says the specialist.
''It's not a quantum leap, but we'll see many of these combined
alpha-beta blockers in the next several years.''
     In most black patients, Wallin recommends using any drug in the
labetalol class in combination with a diuretic.
     Studies during the clinical trials at Tulane, headed by Wallin,
looked at the effects of labetalol on both blacks and whites.
    
     MORE
    
    
    
nyt-02-06-85 0407est
n147  0115  06 Feb 85
BC-DRUG-1stadd-(Balt.)
    
     pickup xxx and whites.
    
     One group, which did not have an emergency type hypertension, was
treated with labetalol. About a third of the patients were controlled
with this alone and these were patients who had been taking three or
four drugs and their blood pressure still was not well controlled.
     ''And, we found that some black patients whose blood pressure could
not be controlled with a combination of very potent drugs were
controlled with labetalol plus a diuretic,'' says Wallin.
     ''Labetalol is not a panacea, but it's a useful drug. It gives us
one more thing in our armamentarium to treat patients with mild,
moderate and even bad hypertension.''
     About 20 to 30 different drugs are now available to treat
hypertension and each drug has some side effects. Some patients
tolerate some drugs better than others, so if one doesn't work a
doctor will usually move to another in a different class.
     The side effects of labetalol are nausea and dizziness, which occur
when the drug is increased too rapidly, says Wallin.
     Labetalol, which has been in use in Europe and England since 1968,
is manufactured in this country by Glaxo, Inc., in North Carolina and
Schering-Plough in New Jersey. Before winning U.S. Food and Drug
Administration approval in September, the drug was under study in
this country for nine years.
     A symposium on labetalol is being planned at the Johns Hopkins
School of Medicine this spring by kidney disease specialists who
treat the worst forms of hypertension, according to Wallin.
     ''About 60 million people have high blood pressure, and the
alarming thing is that less than half of the people know that they
have it because they don't have their blood prerssure checked-and
that's a serious problem,'' says Wallin. ''There are no symptoms
associated with it so they don't know until they get the heart, brain
and kidney disease that they have it.''
     Men and women, once they reach 30, should make it a habit to get
their blood presures checked at least once a year and more often than
that if their blood pressure is in any way elevated.
     One-hundred and forty over 90 is clearly hypertension, he says, and
140 over 85 is considered borderline. So, if you are in the 85 or 90
range, you are abnormal but you probably don't require drug treatment
at that point.
     But, if you want to reduce the risks of cardiovascular disease, you
should cut down on salt in your diet, lose weight, stop smoking, cut
down on alcohol and start to exercise.
     You need treatment if you have a sustained blood pressure of over
90 on the lower number.
     Statistics from three different studies around the world in the
last five years have shown increased risk of heart disease deaths,
heart attacks and strokes in the group of patients with blood
pressures in the 90 to 105 range. That's never been shown before,
says Wallin.
     ''The best benefits were actually seen in the patients who are in
the lowest range of blood pressure-90 to 95,'' he says, ''so, these
studies have really convinced all of the medical profession that high
blood pressure even in these low ranges should be managed
rigorously.''
    
     End Miller
    
    
nyt-02-06-85 0414est
n148  0128  06 Feb 85
BC-AFTERTHOUGHTS-(Balt.)
     By Linell Smith
    c. 1985 The Baltimore Evening Sun
    
     If you spend any time in the literary salons you get the impression
that absolutely no one tolerates best sellers except the people who
write them, the people who sell them, the people who read them, and
the people who couldn't care less. This doesn't exactly strike me as
a small and insignificant group.
     However, each year when the best-seller lists appear, my literary
friends insist that most Americans used to read better books. Perhaps.
     The first year of the best-seller list a concept introduced by
Bookman's literary magazine-was 1895. It was a good year for Henry
James, Joseph Conrad, W.B. Yeats, and H. G. Wells. It was also the
year that America's A-Number-One book was ''Beside the Bonnie Brier
Bush,'' by Ian Maclaren.
     Until the mid-1960s, America's all-time best seller -excepting the
perennial best seller, the Bible-was the 1897 religious novel ''In
His Steps,'' by Charles Monroe Sheldon.
     In 1966, however, Mr. Sheldon fell to fifth place behind Dr. Spock,
The Better Homes and Garden Cook Book, (1930 edition), The Pocket
Atlas, and ''Peyton Place.'' Perhaps this is the erosion of standards
of which my friends complain.
     I find best-seller lists intriguing. One way to try to figure out
America is to study the hardcover best-seller lists and freely
interpret the psyches of those willing to pay hardback prices.
     ''If a student of taste wants to know the thoughts and feelings of
the majority who lived during Franklin Pierce's administration, he
will find more positive value in Maria Cummins's ''The Lamplighter''
or T.S. Arthur's ''Ten Nights in a Bar-Room,'' than he will in
Thoreau's ''Walden,'' all books published in 1854. . .'' writes James
Hart in his 1950 non-best seller, ''The Popular Book.''
     ''These volumes may gather dust on library shelves but they have
left lasting impressions on the American mind, etched deeply into a
national consciousness.''
     Perhaps they are so deeply etched that we have repressed them. My
literary friends, for instance, still talk about 1953 as if it were
the year of Arthur Miller's ''The Crucible'' instead of the year of
Tommy Armour's ''How to Play Your Best Game of Golf.''
     Alice Payne Hackett, who studied hard-cover best sellers for
Publishers Weekly, prepared the first comprehensive overview of what
Americans
sn9really
sn0 used to read.
     On the 1904 best-seller list, for instance, was ''Rebecca of
Sunnybrook Farm,'' by Kate Douglas Wiggin and ''The Little Shepherd
of Kingdom Come,'' by John Fox, Jr. In 1914, ''Pollyanna'' by Eleanor
Porter was a hit. So was Leona Dalrymple, author of ''Diane of the
Creen Van.'' Then there was Booth Tarkington's ''Penrod.''
     Hackett says that ''Pollyanna,'' ''Rebecca of Sunnybrook Farm'' and
''Penrod'' were considered adult books in Edwardian-era America; book
sellers did not market them as ''juvenile'' until later.
     However, this may say more about American reading skills than about
their taste. Census bureau figures of 1940, for instance, show that
only about a quarter of Americans aged 25 and older were high-school
graduates.
     I think one of the worst events in American publishing occurred in
1924. That was the year Simon and Schuster published its first, and
also its first best-selling, books: ''The Cross Word Puzzle Books.''
By introducing the game book genre, Simon and Schuster encouraged
people to neglect household chores, causing undue havoc in homes
across America. I agree with my friends that Simon and Schuster has a
lot to answer for.
     But I disagree that we suffer from a recent plague of ''how-to's.''
Americans have always enjoyed teaching themselves how to fish, strip
furniture, make a million in real estate, lose 15 pounds, and improve
their sexual performances.
     Throughout the 1920s, one of the biggest best sellers was Lulu Hunt
Peters's ''Diet and Health.'' And as soon as books about sex became
available, Americans bought them.
     In 1948, Dr. A.C. Kinsey's report on the sexual behavior of men
made the best-seller list, followed by his study on women in 1953. In
the 1960s, people read Masters and Johnson. In the 1970s, when sex
how-to's needed refurbishing, along came ''Joy'' and ''More Joy.''
These, you may remember, were the ''lovemaking companions'' with
explicit drawings of ''partners'' who looked as if they had spent
their entire adult lives eating yogurt but still hadn't worked things
out.
     My literary friends often compare the present decade to the 1950s.
I remain more optimistic. The '50s, after all, was the decade of Art
Linkletter's ''Kids Say the Darndest Things!'' Best-selling hardcover
non-fiction of 1955 included the ''The Power of Positive Thinking,''
by Norman Vincent Peale; The Better Homes and Gardens Diet Book;
''The Secret of Happiness,'' by Billy Graham; ''How to Live 365 Days
a Year,'' by John Schindler, and ''Why Johnny Can't Read,'' by Rudolf
Flesch.
     But the nation felt sufficiently improved by 1964. John Le Carre's
''The Spy Who Came In From the Cold'' was that year's hardcover
fiction bestseller, the first time a thriller led the market.
''Candy,'' the sex satire by Terry Southern and Mason Hoffenberg, was
runner-up.
     Bestsellers of the '60s created several important trends. I suspect
Norman Dacey's ''How To Avoid Probate,'' a 1966 hardcover best
seller, initiated our national craving to attend one-day investment
seminars in Beltway motels.
     It's hard to tell what conclusions to draw about Americans from the
1984 hardcover fiction best sellers, a list which ranges from Helen
Hooven Santmyer's three-generation saga ''. . . And Ladies of the
Club,'' to the nuclear disarmament mythology of Dr. Seuss's ''The
Butter Battle Book.''
     However, it's easy to interpret the meaning of the 1984 hardcover
non-fiction list. Lee Iacocca was easily America's second choice for
president. And the runners-up included Leo Buscaglia, Erma Bombeck,
Andy Rooney, and Ed Koch.
    
     End Afterthoughts
    
    
nyt-02-06-85 0428est
n149  0136  06 Feb 85
BC-LADDER-2takes-(Balt.)
     By Philip Moeller
    c. 1985 The Baltimore Sun
    
     The decision last week by the Esskay meat-products firm to try and
move the bulk of its operations from Baltimore to Indianapolis could
be part of a valuable learning experience for a lot of us.
     Esskay is hardly Baltimore's only struggling company. Another local
institution, the Eastern Stainless division of Eastmet Corporation,
went through another round of labor concessions last week. Employees
there accepted by narrow margin the creation of an employee stock
ownership plan that would give them a future stake in the company in
exchange for wage concessions now.
     And labor-management relations at Bethlehem Steel's sprawling
Sparrows Point facility are being shaken up as never before by the
recognition on both sides that they have more in common with one
another than either has with the Japanese and other foreign producers
who've been kicking the stuffings out of the American steel industry.
     Just yesterday, the plant said that it had made available to all
employees the findings of an outside consultants' study on how well
the company communicates with employees. The study found that
employees think the firm can do a better job of letting them know
what it's up to but they still have a high degree of loyalty to
Bethlehem and the steel industry. They think steel imports are a
threat but that improving the quality of the steel they make is an
even greater concern.
     As interesting as the results are, more noteworthy still is the
fact that Bethlehem paid money to gauge its employees' attitudes and
then shared these findings with its people. That just wasn't done in
the bygone days of the steel industry.
     In fact, many management-labor-government efforts to save or
improve Baltimore businesses are really experiments into a form of
mixed capitalism. And the answers on these ventures aren't in yet.
     For example, Esskay's announcement, coming after years of
substantial operating losses, hardly marks an end to the serious
challenges it faces. Before moving its production to the Midwest, the
company first must arrange acceptable financing and that's no assured
matter.
     Esskay was unable to attract private lenders in Baltimore even
though it was offering a financial package that entailed substantial
government loan guarantees. And while the plant site in Indianapolis
identified by the company would cut its labor costs by a third, it's
unknown if such savings are enough to put together viable financing
for the company.
     Even if the money or an equivalent financial guarantee appears,
Esskay would still be severely tested in its stated desire to
continue to distribute its products on the East Coast.
     Serving a market via long-distance is difficult to do in any case.
And Esskay, while perhaps keeping a couple hundred jobs here, might
also have to deal with an erosion of customer support following the
cessation of manufacturing and its layoff of more than 450 Baltimore
workers.
     It's the kind of situation that makes for a terrific business case
study, but one that managers and employees at other organizations are
just as happy not to face.
     The easiest answer to Esskay's dilemma - and perhaps to some of the
other local ''experiments'' - is provided by the classic model of
free enterprise and competition. This model gets wheeled around a lot
these days with a very predictable message: Let the market decide.
    
     MORE
    
    
nyt-02-06-85 0435est
n150  0144  06 Feb 85
BC-LADDER-1stadd-(Balt.)
    
     pickup xxx market decide
    
     Letting the market decide would have sent Esskay down the tubes a
long time ago. The company's plant is so old that efficiently
processing meat products is about as cumbersome as saying the full
Esskay name - the Schluderberg-Kurdle Co. Inc. (''S-K'' for short).
     Under a free-market approach, Esskay's workers should long ago have
refused to accept wage concessions and instead should have walked out
and found comparable jobs at an acceptable wage level.
     And once Esskay's employees refused to accept less than the market
rate for their labor, then Esskay management would have gone out of
business. The capital involved in the enterprise then would have been
invested in more ''productive'' ventures.
     The demise of Esskay would not have affected total consumer demand
for meat products but simply diverted it to other producers in what
obviously is a very competitive industry. If consumer demand for the
Esskay name was strong enough, it can be argued, then a more
efficient meat producer would have entered the market by buying
rights to the Esskay name.
     All in all, it's a very tidy solution. In fact, it's a lot like the
scenario that faced the Chrysler Corporation a few years ago. I
recall being one of the free-market purists that advocated no federal
help for Chrysler.
     My arguments were classically clean and elegant:
     The demand for automobiles can be filled by other companies. If we
reward Chrysler with federal support, we're just delaying the
inevitable adjustment that must be made to deal with more efficient
Japanese producers. Capitalism survives by purging the inefficient.
For the benefit of all, Chrysler must die.
     Chrysler did not die, of course. Its chairman, Lee Iacocca, has
helped breathe life into Chrysler and also into its competitors.
Judging by his hugely successful autobiography, he also has motivated
many others as well.
     It's quite possible, of course, that three years of import curbs on
Japanese cars have done much more to rejuvenate the American auto
industry than Lee's convertibles, mini-vans and other marketing moves.
     But it's also possible that the free-trade solution just doesn't
work ''best'' all of the time. The market, while an efficient and
impartial allocator of resources, is not perfect by definition. It
fails to account for the terrible transitional costs that afflict
people and institutions when industries and companies are in trouble.
     Esskay managers can perhaps be faulted for failing to act soon
enough. In a perfect world, they would have seen many years ago that
decreases in meat consumption would make their industry a much
tougher place to make a buck. They then would have started to
modernize. Or, it can be argued, they might have seen such trends and
decided to diversify out of the meat industry. In either event,
Esskay would be a healthier company today.
     Maybe Esskay hasn't been perfect. But it's in pretty classy company
with the Swifts and Armours and other meat firms that have either
gone under or been drastically revamped in the past decade.
     And maybe the efforts to sustain Esskay hardly paint a neat picture
of free-market economics at work. But they do outline a portrait of
management and labor striving to find a mutually effective solution
that can help both sides.
     The wisdom of such efforts, while arguable, does strongly suggest
that a marketplace of sorts is still very much at work here. It could
not make the numbers work for Esskay in Baltimore, although the
answer in other examples may be more favorable. And it may not be the
unfettered marketplace that's in vogue, but it's a realistic and
humane approach to business that deserves support.
    
     End Ladder
    
    
nyt-02-06-85 0443est
n151  0154  06 Feb 85
BC-RELIGION-(Balt.)
     By Antero Pietila
    c. 1985 The Baltimore Sun
    
     Moscow - Alarmed by reports of worshipping and baptisms among party
members, Communist authorites are showing rising concern for
religious interest among Soviet youth.
     They recently replaced the head of the government committee
regulating religious activities, putting in charge an ambassador who
earned his reputation as a crack Communist youth leader. When
Konstantin M. Kharchev left his embassy post in Guyana, he said he
was returning to Moscow as ''Ambassador to God.''
     Ambassador or not, Mr. Kharchev faces a twin challenge. Not only
will he have to discipline Communists who have strayed away from
official theism, but he also will have to coordinate the State's
counteroffensive against the Russian Orthodox Church's planned
celebrations in 1988 of the 1,000th anniversary of Chrtianity here.
     Those celebrations, even though they will be curtailed by a host of
anti-religious laws, are expected to increase common people's
curiosity about Christian traditions and history.
     ''it is imperative to carry out more active propaganda of
scientific-materialist opinions and pay more attention to atheist
education,'' Pravda exhorted recently.
     The Communist Party daily added, ''The party is particularly
concerned that young people should form firm atheistic convictions.''
     Another Pravda article warned that in the run-up to the 1988
anniversary ''church propaganda is trying to create interest in
religion as if it were the basis of Russian culture.''
     No reliable information exists about the extent of religious
activity among this country's 276 million people.
     The number of churches and other houses of worship operating under
official sanction is small and their congregations can legally
neither raise funds nor proselytize or hold prayer meetings in
private homes.
     At the same time, the number of churches permitted to open in
recent years has somewhat increased. Worship services appear well
attended, but the average age of the participants seems old.
     In their justifications for a stepped-up anti-religious drive
officials cite alarming figures of church activity.
     Last month, Komsomolskaya Pravda quoted the First Secretary of the
Moscow City Communist Youth Organization as saying that every year
some 1,000 Komsomol members break rules forbidding church attendance
and participate in religious rites.
     The paper also alleged that in two areas within a 60-mile radius of
Moscow, ''one in every three newborn babies is baptized.''
     ''The mothers and fathers of these babies are Komsomol members, but
that does not in the least embarrass them,'' the paper said.
     ''What is this--frivolity? A tribute to fashion?'' it queried, but
in the end blamed ''a low level of political consciousness'' for
which local authorities had been ''severely criticized.''
     Foreign observers familiar with the religious scene suspect the
baptismal figures cited by the paper are greatly overstated.
     At the same time, sporadic religious interest among young people
seems evident, although ''it might be sparked by the perpetual
identity crisis of the youth,'' as one observer put it.
     Such interest, according to a historian, may have been prompted by
the failure of Communism to create replacement rituals for
Christian-based Russian traditions.
     ''I think, by and large, they have acknowledged defeat,'' the
historian said.
     Symptomatically, the small village church near Moscow's writers
colony, Perdelkino, is jampacked during such traditional holidays as
Christmas and easter, which are not officially celebrated here.
     Meanwhile, school children are subjected to a variety of
antireligious lectures and demonstrations.
     While the lectures may be boring, authorities try liven up
atheistic education.
     When one Lithuanian mathematics teacher asked what his son had done
during an atheistic evening at the school, he replied:
     ''The tenth grade pupils read excerpts from 'The Funny Bible' (a
parody) and we killed ourselves laughing. Then the ninth-graders
acted some sketches about drunken monks, also a good laugh.
     ''After that,'' the boy added, ''there were some chemistry tricks
and then of course we had a dance with modern music.''
    
     End Religion
    
    
nyt-02-06-85 0453est
n152  0205  06 Feb 85
BC-MARKETPLACE
BizDay Commentary
By VARTANIG G. VARTAN
c.1985 N.Y. Times News Service
    NEW YORK - Technical analysts who watch over the stock market often
take a page from the book of economists. The essential technique here
is to forecast with some frequency and not be shy about changing
one's outlook. After all, no one is perfect when it comes to
predicting the course of the stock market.
    Alan R. Shaw, chief technical analyst at Smith Barney, Harris Upham
& Co., offers a case in point. Until recently, Shaw was projecting
''a choppy, erratic outlook'' for the equity market - a continuation
of the trend in the last four or five months of 1984.
    But by late January 1985, with stock prices surging, Shaw went on
record as noting that ''the main technical trend has turned clearly
positive.''
    ''Stock prices may rise until portfolios are structured at maximum
allowable aggressiveness,'' he continued. ''Then a long, slow period
of deterioration, churning and distribution will probably set in. But
we're by no means there yet. The trading-range breakouts and new
confidence are still too new and fresh. The Dow Jones industrials
could move above 1,300 in the weeks ahead.''
    Tuesday, the industrial average fell 4.85 points, to 1,285.23.
    Earlier this week, Shaw observed that ''the breadth of the market
has continued to amaze even the more bullish pundits.'' Meanwhile,
the chart work at Smith Barney pinpointed as ''buys'' these eight
groups: airlines, building materials, electrical equipment, major
electronics, forest products, household appliances, retail foods and
electric utilities.
    There were numerous changes in the list offered as a guide to
investors. The hospital management group, for example, was upgraded
to ''avoid'' from ''sell.'' Telephone utilities were downgraded to
''hold'' from ''buy.'' Elsewhere, soaps and tobaccos moved to
''avoid'' from ''hold.''
    In the last year, Smith Barney's overall investment policy has
advocated a relatively large commitment to fixed-income securities.
At present, the firm's suggested asset allocation is 50 percent
stocks, 35 percent bonds and 15 percent cash.
    ''Some observers have recently commented about the seemingly low
equity position and thus have felt that our policy is quite
cautious,'' Shaw said this week. ''It is our technical belief that
the bond proportion indeed represents an acknowledgment of positive
major underlying trends in the fixed-income markets, and the due
recognition represents a balanced-posture view of both markets.''
    Like many another money manager, David R. Geis, chairman and chief
investment officer of the Chicago-based Griffin Group, has been
commiting cash to the stock market lately. ''Our cash position is now
10 percent of assets under management - down from 22 percent in
December,'' he said in an interview.
    Established a year ago as a subsidiary of the Northern Trust Co.,
Griffin manages $2.5 billion. The mix is $1 billion in equities and
$1.5 billion in fixed-income securities.
    ''I think you'll see earnings growth of between 6 percent and 10
percent this year, but there should also be an increase in
price-earnings multiples for stocks, mainly because of lessening
fears of inflation,'' Geis said. ''Before the end of 1985, the Dow
Jones industrials ought to climb to somewhere between 1,350 and
1,400.''
    ''Our main areas of interest in equities are in consumer growth,
productivity-oriented capital goods, technology and restructured
companies,'' he continued. ''Conceptually, we're also trying to find
changes that will impact favorably upon companies. Such changes may
be brought about by new products or management or even legislation.''
    In the consumer growth sector, portfolios under Griffin's management
hold such stocks as Walgreen, Wal-Mart Stores, the Price Co., The
Limited Inc. and Jack Eckerd. The Eaton Corp. and the Square D. Co.
are among holdings in productivity-oriented companies. Other
commitments include the Intergraph Corp. and Daisy Systems, a company
that makes computer-aided engineering systems.
    ''In technology, we own International Business Machines, Data
General and Digital Equipment,'' Geis said. ''Elsewhere, we have only
one energy-related stock, basically, and that is Schlumberger, along
with a little bit of Exxon. In the past four or five months, we've
built positions in the insurance area and here our stocks include
Chubb Corp. and American Express.''
    Publishing issues in Griffin portfolios include Dun & Bradstreet and
Macmillan Inc., which Geis described as ''probably our
best-performing stock in 1984.''
    One recent purchase was in the ''E'' shares of General Motors that
were created by the automotive giant when it acquired Electronic Data
Systems. ''We're looking for a productivity play here,'' the money
manager said.
    On the subject of restructured companies, he said that, in contrast
to the trend toward conglomerates during the 1960s, companies now
must strive to trim down and maximize their returns, ''because debt
has become too expensive and competition is heating up on a worldwide
basis.''
    
nyt-02-06-85 0504est
n153  0218  06 Feb 85
BC-LATE-BUDGET-(Balt.)
    
     Here is the late Baltimore Sun News Service budget for morning
papers of Wednesday, February 6, 1985. Regular features that always
move on this cycle are described at the end. A summary of everything
moved on this cycle will move at 11 P.M. The editor is James Keat. He
can be reached at 301 332 6188.
    
     INTERNATIONAL
    
     Aid - Washington. Administration holds back $46 million from United
Nations in family planning money because of prospect that some of it
might fund infanticide in China. Chinese official snubbed when he
tries to tell administration that money won't go for that. - (700) -
By Ernest P. Furgurson - BC
    
     Religion - Moscow. Alarmed by reports of worshipping and baptisms
among party members, Communist authorites are showing rising concern
for religious interest among Soviet youth. - (700) - By Antero
Pietila - BC
    
     NATIONAL
    
     Meese - Senate Judiciary Committee votes 12-6 to recommend Meese to
Senate with the nominee picking up Democrats DeConcini and Heflin.
Senate committee approval given to Hodel at Interior and Herrington
at Energy. - (600) - By Vernon Guidry,Jr. - BC
    
     Stockman - In some of the best budget theater ever seen on Capitol
Hill, David Stockman takes on Pentagon excesses, farm state senators
worried about re-election and those now complaining defense budget is
too high after having given Reagan 95 percent of the defense systems
he wanted. An unusually feisty Stockman attacks military for
preferring to fund ''scandalous'' retirement system instead of
protecting national security, and blasts bailouts for farmers,
including program being planned by administration, which he says is
being extracted through 'political blackmail'. - (800) - By Nancy
Schwerzler - BC
    
     Economy - Reagan, in economic report, bashed the Federal Reserve as
never before, blaming it for 1981-82 recession and for economic
slowdown last year. Fed chief Volcker appears in Congress, saying
that administration should not have voice on key Fed committee. -
(800) - By Stephen Nordlinger - BC
    
     Elderly - Council of Economic Advisers paints glowing picture of
economic wellbeing of elderly, noting they reap ''growing benefits.''
This appears to be laying basis for cuts in Social Security. - (600)
-  By Stephen Nordlinger - BC
    
     Regan - New White House chief of staff appears before press,
announces three top aides, defends one choice (Pat Buchanan) stoutly.
The Buchanan choice as communications chief is mildly controversial,
given his background as Nixon White House press basher. - (600) - By
Robert Timberg - BC
    
     USA -- Furgurson column on Falwell-Kennedy debate. - BC
    
     Tax - Plans of administration to push for tax reform now that new
team at Treasury in place. Impasse looms, as administration wants to
endorse bipartisan compromise on Hill, but leading Democrat Bill
Bradley wants to deal with administration first. Tentative . - By
Fred Barnes - BC
    
     EDITORIALS & COMMENTARY
    
     History - Throughout the United States and much of the world, Black
History Month will be observed during the month of February. Black
History Month affords an auspicious opportunity for 37 million black
Americans to take stock of ourselves and to give serious thought to
what is required in order to enhance and ensure our survival and
human dignity. - (650) - By Samuel L. Banks - The Baltimore Evening
Sun - BC - (Moved Earlier)
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     SPORTS
    
     Kreh - Women are breaking away from the old notions of what society
expected them to-and not to do. And, if you are a male sportsman,
count your blessings. - (750) - By Lefty Kreh - BC - (Moved Earlier)
    
     Racing - Part II of a V part Series, Today, After 26 years on the
circuit, Buddy Baker finally is fielding his own team. - (600) - By
Sandra McKee - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     BUSINESS AND FINANCIAL
    
     Money - If the Small Business Administration is eliminated, as the
Reagan administration has proposed in its new budget, ''banks are
going to have to get serious about picking up the slack,'' according
to Eliot P. Hurd, who runs a consulting firm active in business
analysis and in finding loan funds. - (550) - Jesse Galsgow - BC -
(Moved Earlier)
    
     ENTERTAINMENT & CULTURE
    
     Record - The Who are back, after two long years, only to bid
farewell once again, this time with a double album of material culled
from American and Canadian stops on the '82 tour. The package is
titled ''Who's Last'' - (550) - By Patrick Ercolano - The Baltimore
Evening Sun - BC - (Moved Earlier)
    
     Cedrone - An interview in Washington with 19-year-old Kevin Dillon
touring to promote his new file ''Heaven Help Us''. - (1,100 In 2
Takes) - By Lou Cedrome - The Baltimore Evening Sun - BC - (Moved
Earlier)
    
     LIVING & STYLE
    
     Drug - A new drug, the first in its class, promises to be an
effective treatment-with fewer side effects-for high blood pressure
in both blacks and whites. Blacks are hit the hardest by the disease
which affects 60 million Americans. - (950 In 2 Takes) - By Sue
Miller - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     Computers - Getting your computer to talk to another computer. - 
(900) - By Michael Himowitz - The Baltimore Evening Sun - BC - (Moved
Earlier)
    
     FEATURES
    
     Afterthoughts - A weekly Column, this week on Best Sellers and what
our reading habits tell us about ourselves. - (900) - By Linell Smith
- The Baltimore Evening Sun - BC - (Moved Earlier)
    
     End Baltimore Sun's Late Budget
    
    
nyt-02-06-85 0517est
n154  0228  06 Feb 85
BC-BOOK REVIEW (UNDATED)
By MICHIKO KAKUTANI
c.1985 N.Y. Times News Service
WILT ON HIGH. By Tom Sharpe. 236 pages. Random House.
$13.95.
    
    Though Tom Sharpe's fiction has earned him comparisons with
Wodehouse and Waugh, as well as a solid place on the British
best-seller lists, he has yet to win more than a cult following in
the United States. Last year, Vintage Books reissued half a dozen
early Sharpe titles, and now, with Random House's publication of his
latest novel, ''Wilt on High,'' American readers have another chance
to discover the Rabelaisian humor of this gifted British farceur.
    Certainly Sharpe's comic sensibility will not be to everyone's
taste. His novels can be hysterically funny, but they are also nasty,
misanthropic and relentlessly vulgar - slapstick in tone,
outrageously wild in conception. Reading them is like watching a
Monty Python routine: besides bad taste and sophomoric sex jokes, one
can anticipate satiric jabs at every public institution and private
pretension imaginable and all manner of ridiculous high jinks -
murder cases involving inflatable dolls, dogs running amok on LSD,
antiterrorist assaults on golf courses, that kind of thing.
    Like Kingsley Amis, Sharpe wants to expose the absurdities of daily
life in dreary, postwar Britain, and he leaves virtually no aspect of
contemporary culture unscathed. In ''Wilt on High,'' the Welfare
State university emerges as a refuge for nitwits and second-rate
minds - disaffected professors who hold endless committee meetings
and use phrases like ''expressive attainment'' and ''post-natal
abortion.'' Women peace workers are portrayed as kooky housewives who
believe that ''the bomb is symbolic of the male orgasm,'' and
Americans as bumbling lunatics who assume ''that even the most
ineffectual liberal do-gooder must be a homicidal Stalinist.''
    No doubt Henry Wilt, the put-upon hero of this novel - who
previously appeared in ''Wilt'' and ''The Wilt Alternative'' - will
also remind readers of Amis's Lucky Jim. Both are wimps, beset with
insecurities and resentful of those blessed with money, good looks
and power. Both harbor Walter Mitty-type fantasies of transforming
their humdrum middle-class lives into something more compelling. And
both have an uncanny talent for getting themselves into preposterous
situations. ''In the modern world, in any world, it wasn't enough
just to be content and hope that everything would turn out for the
best,'' writes Sharpe. ''In Wilt's experience, they turned out for
the worst.''
    As ''Wilt on High'' opens, poor Henry already seems to have more
than his share of problems: as head of liberal studies at Fenland
College of Arts and Technology, he is having to cope with textbook
shortages and drug use among the students, and at home, his wife,
Eva, and his four beastly daughters are slowly driving him mad. The
four ''bints,'' as he calls them, have been wreaking havoc on the
neighborhood - they've electrified a fence and souped up a lawnmower
so that it does 80 miles per hour - and the sexually importunate Eva
has taken to drugging his beer with an aphrodisiac that produces
embarrassing side-effects. To make matters worse, Henry is having
money problems, and he's begun moonlighting to pay the bills: he
spends Tuesday evenings at a prison, teaching a gangster about E.M.
Forster, and Fridays at the American air base, giving lectures on
British culture.
    While Henry's plight may initially seem plausible enough, events
have a way of skidding out of control in Sharpe's novels, and his
hapless hero soon finds himself caught in a maelstrom of
misunderstanding. The daughter of a prominent lord has been found in
the school boiler-room, dead of a heroin overdose, and it seems that
the convict Henry has been tutoring has suddenly overdosed as well.
Henry, the cops figure, must be the missing link between the two
deaths, and they begin tailing him on his daily rounds.
    All the characters in ''Wilt on High'' - from the Keystone Kops
police to Henry's scheming colleagues - are so self-absorbed, so bent
on protecting their own interests, that they jump to increasingly
preposterous conclusions and they soon have the ineffectual professor
pegged as a drug trafficker, a sex pervert and an international spy.
By the end of the novel, Henry has inadvertently set off a prison
riot and a raid at the American air base.
    As usual, Sharpe demonstrates a remarkable inventiveness with plot,
though this time he never quite untangles the hodgepodge of hectic
events into a satisfying ending. There are episodes involving a
libidinous next-door neighbor and a foul-minded officer's wife that
seem to have been included simply for their salacious value, and
there are equally extraneous scenes featuring bad puns and
one-liners. If ''Wilt on High'' lacks a certain coherence, however,
it is still a lot of fun - and serves as a fitting introduction to
this outrageous writer's work.
    
nyt-02-06-85 0528est
n155  0238  06 Feb 85
BC-AID-(Balt.)
     By Ernest B. Furgurson
    c. 1985 The Baltimore Sun
    
     Washington - The Reagan administration is holding back $46 million
earmarked by Congress for the United Nations family planning agency
because of allegations that China is practicing forced abortion in
its birth control program, officials said yesterday.
     Vice Minister Zhou Boping, No. 2 administrator of the Chinese
program, said here that his government approved abortion but did not
advocate it. ''Infanticide is a crime, and anyone involved in it will
be punished,'' he said. But he conceded that in a country as big as
China, ''such an ugly social phenomenon'' does happen.
     Mr. Zhou reportedly was snubbed when he sought a meeting to discuss
the issue with the Agency for International Development. But Richard
Derham, head of AID's program and policy coordination bureau, said,
''If he's requested to speak to AID, I don't know about it.''
     An AID spokesman said later that the agecy had ''no formal
request'' for a meeting from Mr. Zhou. He said that the first $23
million of the U.S. contribution to the U.N. Fund for Population
Activities is being withheld pending review because of ''inquiries
about the program in China.'' That review may take two or three
months, he said.
     Others reported that Peter McPherson, AID administrator, ordered
the funds withheld to protect his agency against reaction from
''right-to-life'' advocates after recent reports about abuses in
China's program.
     But Representative Peter Kostmayer (D, Pa.), sponsor of the
enabling legislation, blamed the holdup on ''zealots in the White
House who are opposed to family planning and contraception.'' He said
relating the review to articles published last month by the
Washington Post was ''a smoke screen to destroy family planning in
the Third World.'' The U.S. commitment is a third of the UN fund.
     The congressman said the fifth month of the current fiscal year was
beginning, and none of the $46 million had been spent. ''If they say
the reason they haven't spent it is that the law says none shall go
for coerced or forced abortions, it seems to me they could cease
sending money to China, where the controversy is. But there's no need
to cut off all the money'' needed by other nations.
     ''They're lawbreakers, is what it amounts to,'' he asserted. ''We
went through this with Nixon on the impoundment fights.'' He said
that unless action was taken promptly, the House Foreign Affairs
Committee should call Mr. McPherson up to explain why.
     Last spring, allegations of coercion and infanticide in China
prompted a House debate on 1984 U.S. contributions to the UN fund,
which in turn funnels money to Peking. But AID reported then that
those allegations were unfounded.
     The administration demanded assurance from the UN that it would not
support coercive abortion in China, and under secretary general
Rafael Salas, executive director of the UN fund, complied in a letter
to Mr. McPherson. The AID administrator released that letter at the
International Population Conference in Mexico City last summer.
     After that, last fiscal year's U.S. funding was resumed. But
Congress added language providing that no funds would go to any
country or organization that includes involuntary abortion in its
population program.
     In July, Wang Wei, chairman of the Chinese program, told U.S.
legislators that his country did not use foreign funds for abortion.
''This is clearly stipulated in our agreement with the United
Nations,'' he said.
     Werner Fornos, president of the Population Institute, said his
organization ''maintains that there is no new evidence indicating
that China does not adhere to its international commitment...''
     The administration's current action ''threatens to become a replay
of the cutoff of U.S. funds to the International Planned Parenthood
Federation,'' largest non-government provider of family planning aid
to developing nations, he said.
     ''It is reasonable to ask why people in many poor countries should
be deprived of essential family planning services because of isolated
accusations against one country,'' he stated. He urged that the funds
be released with the provision that none go to China until after an
investigation.
    
     End AID
    
    
nyt-02-06-85 0537est
n156  0249  06 Feb 85
BC-STOCKMAN-(Balt.)
     By Nancy J. Schwerzler
    c. 1985 The Baltimore Sun
    
     Washington - David A. Stockman, the administration budget director,
lectured a Senate panel into stunned silence yesterday with a bitter
attack on the causes of the federal deficit as he sees it--from
pension-protecting Pentagon officials to a compliant Congress that
bails out farmers and gives the president most of his military
requests.
     Mr. Stockman, who had unsuccessfully urged President Reagan to
reduce his defense spending requests for fiscal 1986, told the Senate
Budget Committee that Congress must take responsibility for the
continued rise in the Pentagon budget, rather than blame the
president for submitting rising defense budgets.
     He said Congress has appropriated $1.2 trillion for defense over
the past five years--95 percent of the administration's requests--and
some of the bills for weapons systems Congress agreed to buy are just
now coming due.
     Congress cannot continue ''playing Rip van Winkle'' and say that
the defense budget is too large now, Mr. Stockman said. ''Stop this
futile debate over the defense number and get into the guts of it,''
he added, saying that Congress must decide now whether to kill the
military programs it supported in past years.
     While Senate Republicans have considered a budget freeze, including
defense, Mr. Stockman suggested that they ''are arguing with their
own records'' of defense support and now they must decide ''which
previously approved program or system...they would delete.''
     Mr. Stockman did not actually advocate that Congress kill any
weapons system. But his presentation clearly impressed many on the
committee, perhaps for the first time, with the magnitude of their
past spending decisions and the monumental choices that they may have
to make if they want to achieve significant cuts in the budget
deficit this year.
     ''You've enlightened this senator more than I've been enlightened
by the secretary of defense in all his appearances here,'' Senator
Pete V. Domenici (R, N.M), the committee chairman, said.
     Mr. Stockman, who has been the whipping boy in past years for
senators upset about cuts in domestic programs, went on the offensive
yesterday, telling off the Pentagon and farm-state senators who
complain about the deficit while seeking more spending for their own
benefit.
     ''I've never been able to get anything done about military
retirement...It's a scandal, it's an outrage,'' Mr. Stockman said.
     ''The institutional forces of the military are more concerned about
protecting their retirement benefits than they are about protecting
the security of the American people,'' Mr. Stockman said, to shocked
gasps in the committee room.
     ''If push comes to shove, they'll give up on security before they
give up on retirement'' benefits, he said, adding, ''I'll probably be
in hot water for saying it but...it's about time it was said.''
     (Spending for military retirement programs, excluding payments to
wounded veterans, is estimated at $17.8 billion in the president's
$313.7 billion defense budget request for fiscal 1986. And a new
trust fund for the military retirement system created last fall will
begin setting aside money in advance for expected future pension
benefits that the Pentagon is already obligated to pay current and
former employees, an amount estimated at a half-trillion dollars.)
     Then it was farmers' turn to feel Mr. Stockman's wrath when Senator
Robert Kasten (R, Wisc.) demanded aid for financially troubled
farmers. Mr. Kasten, a staunch supporter of Mr. Reagan's economic and
defense policies, is a candidate for re-election in 1986 from a state
with extensive farm and dairy interests.
     ''For the life of me I cannot figure out why the taxpayers of this
country have the responsibility to go in and re-finance bad debt that
was willingly incurred by consenting adults who went out and bought
farm land when the price was going up and they thought they could get
rich,'' Mr. Stockman declared.
     But, he said caustically, ''we're probably going to have to do
something because the drumbeat, the political demand, is so great,
because basically we're threatened with a kind of blackmail
situation.'' He said the administration is being pressured to produce
an emergency farm credit program or else farm-state lawmakers won't
allow any reforms in agriculture programs.
     Mr. Stockman so dominated the budget committee session, the first
in a series of budget hearings this year, that he even upstaged the
annual opening day performance of Senator Howard Metzenbaum (D, Ohio)
     Mr. Metzenbaum peered out from behind a stack of large white blocks
bearing names of domestic programs that he said were once again
targeted for ''the chopping block.'' Another stack of his blocks,
dubbed ''corporate welfare'' and ''defense,'' were not ''on the
table'' for budget compromises, the senator claimed.
     Mr. Stockman called the senator's performance ''agitprop in his
finest manner'' and then demanded that each block be stacked on the
witness table at which he sat while he disputed the senator's
contentions.
    
     End Stockman
    
    
nyt-02-06-85 0548est
n157  0300  06 Feb 85
BC-ECONOMY-(Balt.)
     By Stephen E. Nordlinger
    c. 1985 The Baltimore Sun
    
     Washington - President Reagan yesterday blamed overly restrictive
Federal Reserve monetary policy for adding to the ''length and
severity'' of the past recession and the slowdown late in 1984.
     In uncommonly harsh criticism of monetary policy, the President in
his annual Economic Report to Congress charged that volatile monetary
policy in general had contributed ''to instability in interest rates
and a decline in economic activity.''
     Meanwhile, Paul A. Volcker, the Fed chairman, defended Fed policy
in testifying before the congressional Joint Economic Committee.
While not replying directly to the President's message, he said the
money supply in the United States is ''more stable'' generally than
in other countries and was ''relatively smooth'' last year.
     The President, who basically had refrained from pointed criticism
of Fed policy in the past, appeared to suggest in his message that
the Administration might want more directly to affect the policy of
the independent central bank.
     ''We expect to cooperate closely with the Federal Reserve in
defining and carrying out a prudent and predictable monetary
policy,'' Mr. Reagan said.
     That comment followed a recent statement by Donald T. Regan, the
former Treasury Secretary and now White House chief of staff, that
the Treasury Department was studying whether the Fed should remain
independent.
     The President's message occurred a week before the Fed's
policymaking group, the Federal Open Market Committee, meets to
decide monetary policy for the coming year. His message also seemed
to reflect a larger voice of supply-side and monetarist economists in
the Administration since the departure last summer of Martin S.
Feldstein as chairman of the Council of Economic Advisers.
     In other remarks on economic policy, the President said that he
would submit to Congress ''my own proposal'' for overhauling the tax
system, a suggestion that the Administration's tax simplifcaton plan
may deviate substantially from the Treasury Department's proposal.
     The annual report of the President's Council of Economic Advisers,
which accompanied Mr. Reagan's message, indicated that the
President's tax plan would retain in some form the current tax
incentives for business investment, which the Treasury plan would
drop.
     President Reagan also called for eliminating the remaining federal
regulations of trucking and railroads, an overhaul of nuclear
licensing requirements, an end to natural gas price controls and a
''major reform'' of the deposit insurance system. The Administration
wants the cost of the system to banks to be more related to the level
of risk of bankruptcy at each bank.
     Discussing monetary policy in his congressional testimony, Mr.
Volcker strongly opposed placing the Treasury Secretary on the Fed's
policy-making Federal Open Market Committee, which is one avenue
often considered to allow the Administration to exert more influence
over monetary policy
     ''I am not enthusiastic about that'' kind of change, said Mr.
Volcker, who, after pausing, added, ''that puts my feeling rather
mildly.''
     ''The present situation has served us well,'' he said.
     The seven members of the Fed are appointed by the President subject
to Senate confirmation. The 12 members of the open-market committee
include the board and 5 presidents of regional banks. Unlike Cabinet
members or other political appointees, none serves at the pleasure of
the President.
     President Reagan's comments on monetary policy seemed to reflect
concern that a restrictive money supply in the coming year might
prevent the Administration from achieving its economic forecast,
announced in the budget this week, of uninterrupted growth and slowly
declining unemployment in coming years.
     The Administration's prediction of budget deficits dropping from
$180 billion in 1986 to $82 billion in 1990 is predicated on a
continued economic expansion without a recession, which would lower
revenues and raise outlays. Private economists predict the deficits
would exceed $300 billion if a lengthy recession occurred.
     In discussing the Administration's economic forecast, William A.
Niskanen, senior member of the President's Council of Economic
Advisers, told the Joint Economic Committee there does not appear
''to be any basis'' for widespread forecasts that the economic
recovery will end next year.
     ''Our reading of the evidence is that recoveries end as a
consequence of an accumulation of policy errors and unexpected
shocks, and are not subject to any regular pattern,'' he said.
     The council report on economic growth is replete with criticism of
the Fed policy for failing to achieve a stable money supply. It
suggests some technical changes to give more accurate control.
     But Mr. Volcker sharply dissented to criticism over last year's
policy. After the unexpectedly sharp growth in the first quarter that
threatened to reignite inflation, he said the Fed made a ''rather
moderate move'' to tighten the money supply.
    
     End Economy
    
    
nyt-02-06-85 0600est
n158  0309  06 Feb 85
BC-MEESE-(Balt.)
     By Vernon A. Guidry, Jr.
    c. 1985 The Baltimore Sun
    
     Washington - By a 12-6 vote, the Senate Judiciary Committee
yesterday approved Edwin Meese III as attorney general, sending his
nomination to all-but-assured approval on the Senate floor after a
year of delay and controversy.
     Two Democrats, Dennis DeConcini of Arizona and Howell Heflin of
Alabama, joined the committee's 10 Republicans to provide the margin.
     Opponents had challenged the nomination both on ideological grounds
and on the basis that Mr. Meese's conduct while counselor to the
president had failed to live up to the ethical standards required of
an attorney general.
     Committee chairman Strom Thurmond (R, S.C.) said yesterday that
extensive hearings and ''a thorough and exhaustive investigation'' by
a special prosecutor ''has firmly established . . . that, not only is
Mr. Meese qualified to be attorney general, but that he is also a man
of honesty, competency and dedication.''
     Senator Charles McC. Mathias (R, Md.) made plain in a previously
prepared statement that he was unhappy about the nomination.
     ''But there is no verdict of 'unhappy''' in Senate committee
decisions, said the statement by Mr. Mathias, who is on a trip to the
Soviet Union and voted by proxy.
     A staff aide to the senator said Mr. Mathias would have preferred
that the committee report out the nomination without recommendation.
     In his prepared statement, Mr. Mathias said that the Senate should
have a chance to act on the nomination. ''In order to give the full
Senate that opportunity I will vote to report the nomination of Edwin
Meese III to be attorney general of the United States,'' his
statement read.
     Mr. Meese was criticized and investigated for a string of
appointments to federal jobs that fell to those who had done him
financial favors. What troubled Mr. Mathias most, according to his
statement, was the case of John R. McKean, an accountant for Mr.
Meese who also lent him a total of $60,000 before receiving two
appointments to the part-time U.S. Postal Board of Governors.
     As a high White House aide, Mr. Meese endorsed those appointments.
     ''The record of the hearings last week suggests to me that Mr.
Meese now acknowledges that he should have handled the McKean matter
somewhat differently. It is unfortunate that this simple
acknowledgement has come only after a protracted and difficult
confirmation proceeding,'' read Mr. Mathias's statement.
     Two other presidential nominees, Donald P. Hodel as Interior
secretary and John S. Herrington to replace Mr. Hodel as Energy
secretary, were given 20-0 approval by the Senate Energy and Natural
Resources Committee. Their nominations were expected to reach the
Senate floor this week. Mr. Meese's nomination will be taken up
sometime after next week's recess, according to Senate Majority
Leader Robert Dole of Kansas.
     Senators DeConcini and Heflin each said they had reservations about
Mr. Meese but were willing, as Senator Heflin put it, to give him
''the benefit of the doubt.''
     In addition to Senators Thurmond, Mathias and the two Democrats,
Republicans voting for Mr. Meese were Paul Laxalt of Nevada, Orrin G.
Hatch of Utah, Mr. Dole, Alan K. Simpson of Wyoming, John P. East of
North Carolina, Jeremiah Denton of Alabama, Arlen Specter of
Pennsylvania and Charles Grassley of Iowa.
     Democrats voting against the nomination were Joseph Biden of
Delaware; Edward Kennedy of Massachusetts; Robert Byrd of West
Virginia, the minority leader; Howard M. Metzenbaum of Ohio; Patrick
Leahy of Vermont; and Max Baucus of Montana.
    
     End Meese
    
    
nyt-02-06-85 0608est
n159  0317  06 Feb 85
BC-ELDERLY-(Balt.)
     By Stephen E. Nordlinger
    c. 1985 The Baltimore Sun
    
     Washington - The President's Council of Economic Advisers said
yesterday the income of the nation's elderly has risen faster than
the rest of the population over the last two decades and the economic
status of the elderly is likely to continue to improve.
     A substantial increase in pensions from employers and new tax
incentives to save for retirement are going to help insure the
growing well being of the elderly, the annual council report said.
     The report appeared to lay an economic basis for eliminating or
reducing cost of living increases for Social Security beneficiaries,
one of the most controversial issues facing Congress in seeking ways
to reduce the budget deficits.
     President Reagan, in the 1986 fiscal budget sent to Congress this
week, recommended no change in Social Security benefits in keeping
with his campaign pledge.
     But at a news conference a month ago, the President, while saying
he was ''still resisting'' any lowering of benefits, indicated he
might accept the cut if ''faced with an overwhelming bipartisan
majority'' in Congress.
     House Republican and Democratic leaders oppose a cut in benefits,
but some Senate Republicans favor a one-year freeze that would save
about $6 billion in the the 1986 fiscal year starting Oct. 1.
     William A. Niskanen, senior member of the Council of Economic
Advisers, said the council report had been ''reviewed by other
agencies and cleared by the Administration.''
     When the council first considered addressing the economic well
being of the elderly, some Administration officials said this topic
would be discarded or the findings watered down. But the chapter on
this issue appears to present a complete report.
     These are some of the highlights in the chapter on the elderly,
written by Kathleen P. Utgoff:
     -- The average family income per capita of those 65 and older has
risen from $7,630 in 1970 to $9,080 in 1983. For the elderly living
alone, it went from $7,380 in 1970 to $10,040 in 1983.
     For the nonelderly, family income per capita went from $8,110 in
1970 to $8,960 in 1983. For the nonelderly living alone, it rose from
$15,820 to $16,900.
     -- Poverty rates for the elderly have fallen so rapidly over the
last 30 years that the 1983 rate was lower than the rate for the rest
of the population. It was 15.2 percent for the whole population in
1983, up from 15 percent in 1982. For those over 65, the rate was
14.1 percent, down from 15.7 percent in 1982.
     The report said that should food, housing and medical benefits be
included, the poverty rate for the elderly would be about 3.3 percent
and for the rest of the population it would be about 11.1 percent.
The government poverty rates are based on cash income only
     -- The average monthly Social Security benefit for retired workers
went up 69 percent from 1950 to 1960, 60 percent from 1960 to 1970
and 189 percent from 1970 to 1980. From 1970 to 1983, it rose 273
percent. These payments are adjusted for inflation.
     Over that period, annual wages and the Consumer Price Index went up
much less rapidly. The CPI rose 156 percent from 1970 to 1983,
slightly more than half the pace of Social Security benefits.
     However, the report noted that the elderly are not a homogeneous
group. Women living alone, the very old, and blacks, most of whom
depend almost solely on Social Security, have higher poverty rates.
The rate for women living alone was 28 percent in 1983, down from 50
percent in 1970 but still well above the overall rate for the elderly
of 14.1 percent.
    
     End Elderly
    
    
nyt-02-06-85 0616est
n160  0323  06 Feb 85
BC-ARMS-(Balt.)
     Editorial
    c. 1985 The Baltimore Sun
    
     For God and Pentagon
    
     President Reagan laments that defense critics overlook $30 billion
in cuts the Pentagon has suffered. Defense Secretary Caspar
Weinberger points out that during the past four years he has
extracted 96 percent of his military budget requests from a reluctant
Congress. Who's right? Both are. When you're tossing around almost a
trillion bucks, a 4 percent reduction produces something pretty close
to the president's figure.
     The fact is the Reagan administration has overseen the largest
peacetime military buildup in history. Mr. Weinberger, who came into
office alarmed over what he perceived as a Soviet tilt in the power
balance, now believes the United States has gained in ''virtually
every'' category.
     This being true, why has the administration presented the largest
single military spending boost - a cool $31.2 billion - since it took
office? The reasons are technical and judgmental. The technical
explanation is that past increases in spending authority approved by
Congress are being translated into actual outlays. The judgmental
reason is the administration's continuing fear of Soviet prowess and
its evident determination not only to seek parity but primacy.
     Webster defines primacy as ''the state of being first.'' After
overcoming the Soviet edge in offensive missiles, the administration
now wants to plunge ahead on military ventures in space lest the
Russians get there first. So we are reaching the point where the
SALT-era search for some sort of regulated equivalence is giving way
to a rush to achieve ''the state of being first.'' The new push is
for research, especially on the Strategic Defense Initiative
(otherwise known as Star Wars). The budget calls for a 165 percent
jump in R&D funds - from $1.2 billion to $3.7 billion - with the big
procurement bucks to come later.
     Will Congress cut back SDI? Perhaps, but not by enough to mean
much. Actually, congressional opposition to the Weinberger budget has
become ritualistic - and not very impressive. The same senators who
were futilely trying to make the defense secretary identify cuttable
parts of his budget two and three years ago are at it again. And, as
in the past, Mr. Weinberger insists he is asking for the bare
minimum. When it is all over, Congress will get reductions the
Pentagon has already anticipated.
     Then legislators will claim they have caged the generals, President
Reagan will complain of cuts in military spending and Secretary
Weinberger will brag of another 90-percent plus year. Before this
administration is finished, we will have our first $400 billion
defense budget; the Pentagon's share of federal spending will have
zoomed from one-fourth to one-third, and the president will keep
telling fundamentalist preachers that God is obviously an American
and an advocate of ever-higher military budgets.
    
     End Arms
    
    
nyt-02-06-85 0622est
n161  0334  06 Feb 85
BC-REGAN-(Balt.)
     By Robert Timberg
    c. 1985 The Baltimore Sun
    
     Washington--President Reagan yesterday tapped three well-known
Washington figures for key positions in the White House, including a
combative veteran of the Nixon administration to deal with a
Washington press corps whose fairness he has often ridiculed.
     Conservative columnist and commentator Patrick J. Buchanan, 46, the
new director of communications, also will be in charge of
presidential speechwriting. During the Nixon years, he wrote some of
then Vice President Spiro T. Agnew's most scathing attacks on the
press.
     A frequent Buchanan target is what he calls ''Big Media,'' by which
he seems to mean the television networks and the major eastern
newspapers.
     During last fall's campaign, he called Big Media the ''strategic
reserve of the Mondale campaign.''
     New Right conservatives, who have lobbied hard to have one of their
own in the senior echelon of the White House, praised the
appointment. ''I think this represents the first time we've had
somebody at that level who is an authentic representative of our
point of view,'' said Paul M. Weyrich, of the Committee for the
Survival of a Free Congress.
     Two veterans of Mr. Reagan's first term--Edward J. Rollins and Max
Friedersdorf--are returning to the fold in upgraded positions similar
to their previous posts as political affairs officer and
congressional lobbyist, respectively.
     Donald T. Regan, the new White House chief of staff, spent nearly
half of a 30-minute briefing announcing the appointments defending
his decision to recommend Mr. Buchanan to the president.
     ''I was looking for a communicator,'' Mr. Regan said of Mr.
Buchanan, whose targets also have included Mr. Regan's predecessor,
Treasury Secretary James A. Baker III, and Secretary of State George
P. Shultz.
     Mr. Regan said Mr. Buchanan, a man of strong ideological views,
would have a hand in policy making but would be expected to fall in
line behind the president once a decision is made.
     ''Once the president has made up his mind on a policy, or on how to
handle a particular situation, I've reminded Pat of the old phrase
that I think most of you will recall about accepting the king's
shilling,'' Mr. Regan said. ''When you accept the king's shilling,
you sign aboard.''
     Mr. Rollins, 41, is to be assistant to the president for political
and governmental affairs, an expansion of his previous job as chief
political officer in that he also will have responsiblity for liaison
with state and local officials.
     Currently a political consultant, he was national director of Mr.
Reagan's re-election campaign where he helped guide the president to
the largest electoral victory ever.
     Mr. Rollins is widely viewed as the man who will run Vice President
Bush's campaign in 1988 if he runs for the presidency, a factor that
has not endeared him to hardline conservatives who continue to regard
Mr. Bush as too moderate for their tastes.
     Mr. Friedersdorf, 55, was the president's chief congressional
lobbyist during his first year in office, 1981, when the major
elements of the Reagan economic program--massive budget cuts and a
three-year, across-the-board tax cut--were enacted.
     He left the administration after one year for health reasons and
was named consul general to Bermuda, a post he held for two years.
Most recently, he has been a vice president of Pepsico, Inc., in
Purchase, N.Y.
     As the president's new legislative strategy coordinator, Mr.
Friedersdorf will spend less time on Capitol Hill holding the hands
of shaky Reagan allies and more time in the White House plotting
broad strategy for pushing the president's second term agenda through
Congress.
     In a related announcement, Mr. Regan said that John A. Svahn, a
Severna Park resident who goes back with the president to his days as
California governor and now has a warm relationship with Mayor
Schaefer, would continue as chief domestic policy adviser.
     Mr. Regan also said that James S. Brady, who has not worked full
time since he was wounded in the March 1981 assassination attempt on
Mr. Reagan, would retain the title of press secretary. Following the
shooting, the president told him he would always have his job to come
back to.
     Larry M. Speakes, who has handled the press secretary's job since
Mr. Brady was injured, is to remain chief presidential spokesman with
responsibility for daily dealings with the press, Mr. Regan said, in
contrast to Mr. Buchanan who will be in charge of overall media
planning and strategy.
    
     End Regan
    
    
nyt-02-06-85 0633est
n162  0344  06 Feb 85
BC-HILL-TV-(Balt.)
     By Mike Hill
    c. 1985 The Baltimore Evening Sun
    
     It is certainly one of the most astonishing sights on the face of
the Earth today. Deep in the Amazon jungle, where there was once a
mountain, there is now a pit. In that pit, 60,000 men toil daily amid
mud and water, working in the most barbaric of conditions, making a
scene of such confused squalor that it looks out of place in the 20th
century.
     These men do this because, in addition to mud and water, that pit -
called Serra Pelada, Naked Mountain, after the hill that once was
this site - contains gold. Indeed Serra Pelada may be the single
richest gold find of the 20th century.
     Its existence is decently, if at times confusingly, documented in
''Gold Lust,'' an hour program that will be on PBS tonight
(Wednesday) at 9 o'clock,providing an interesting counterpoint, or
perhaps harmony, to the State of the Union address that will be on
the commercial networks.
     In these ultra computerized, mechanized times, we do not expect to
see thousands and thousands of mud-covered men with 100 pound bags of
dirt on their shoulders walking up rickety ladders and over slippery
trails, dumping that dirt and then returning for another load - 40
times a day.
     We expect a place like Serra Pelada to look like the nearby iron
ore mine that is shown - complete with big shovels and an orderly
work force, going about their business in a logical, efficient manner.
     But for some reason, one of many facts not well explained in this
nonetheless fascinating documentary, the government of Brazil did not
organize Serra Pelada in that fashion. Perhaps it was Serra Pelada
organized itself along typical gold rush lines as thousands of people
descended on this remote site when the first huge nugget was found a
few years ago.
     It might have been impossible to move them. It certainly is now as
the 60,000 (all men, no women allowed) have evolved their own crude
society that maintains the drainage pumps and uses many guns to
enforce a tough, though oft-violated, code of honor while supporting
a bevy of entrepreneurs who sell the basic staples of Serra Pelada
life - mining equipment, food and pornography.
     The claims that these men work are smaller than a child's bedroom
yet it takes 12 men to work each one. The owner of the claim
supervises as the diggers (toiling for 2 percent of the haul) and the
bearers, called ants, (working for one percent) go about their daily
work.
     The world's largest and second largest gold nuggets were found at
Serra Pelada, but most of the gold shows up in the form of powder,
found using the century-old techology of sluices. All told, some $1
billion worth of gold has been taken from here, sold to the
government right in the camp. As Orson Welles' overdramatic narration
points out, that $1 billion pays the interest on Brazil's foreign
debt for one month.
     The gold rush has taken its toll on the jungle as this immense rain
forest, that produces a huge amount of the Earth's oxygen, is being
attacked from all sides by those looking for minerals, many with much
more sophisticated equipment that these peasant miners.
     One reason for this is, of course, that Brazil is hoping the
mineral riches of the jungle will help pay its enormous bills. But
maybe the industrialized nations to whom that money is owed,
countries that have already cut down their forests, should consider
paying Brazil for some of that oxygen and help keep that jungle
intact.
     The men attracted to Serra Pelada are, of course, a sad sight, but
there is something in their eyes that you do not see in the films of
people in the slums of Buenos Aires. It is called hope. And though
these men may be slaves to the tiny grains that this muddy hole
produces, though few of them will see their dreams realized, that
hope is a precious human commodity, one usually found in the same
vicinity as gold.
     -0- Preceding ''Gold Lust'' on PBS at 8 o'clock is a new science
show called ''Discover,'' produced in association with the Time-Life
magazine of that name. Peter Graves hosts this rather breezy, though
informative hour that covers several separate science topics.
     Tonight's first of four monthly editions looks at weightlessness,
sea turtles, leukemia research, police training with laser weapons
and a contest at M.I.T. to design a crude robot that will compete
against other homemade devices in a simple, but complex, test of
speed and power.
     The hour passes quickly and, if deep understanding is not
communicated, a few facts are definitely committed to memory.
''Discover'' actually started a few years ago as a syndicated show
that had a couple of outings on commercial television before
retreating to look for funding for public broadcasting. The M.I.T.
piece is a repeat from one of those shows.
    
     End Hill-TV
    
    
nyt-02-06-85 0643est
n163  0356  06 Feb 85
BC-USA-(Balt.)
     By Ernest B. Furgurson
    c. 1985 The Baltimore Sun
    
     Washington--The Moral Majoritarian who introduced them called them
''the traveling road show of 'The Odd Couple.''' Then he suggested
that they were actually the 1988 presidential ticket--the only
question being who was No. 1 and who was No. 2.
     They were Ted Kennedy and Jerry Falwell, each of them often used as
a devil figure in the fund-raising literature of those who support
the other. And there they were, on stage together, being oh so civil.
     Again.
     This time it was before the convention of the National Religious
Broadcasters, of whom the Rev. Dr. Falwell may be king. Last time, it
was at Mr. Falwell's Liberty Baptist College, 16 months ago. That
time, the senator had dinner at the preacher's home. This time, vice
versa.
     Both times, as Mr. Falwell said, the senator has been like Daniel
in the lion's den.
     But something seemed to have gone out of the act yesterday.
     No one listening could doubt that they still face in opposite
directions on some of the most fundamental issues of their time. But
both of them have mellowed.
     After the assembled broadcasters were serenaded by a breakfast
violinist, then stirred by a former Lawrence Welk soloist's soft-rock
ditty about how she met God, they gave Mr. Kennedy a polite, modestly
enthusiastic welcome.
     The senator spoke of how he and the preacher ''have come to see
each other not merely as opponents, but as fellow human beings who
know the hopes, the tears and the laughter of life.''
     In the campaign just past, he said, the debate over religious
involvement in politics was intense and sometimes unfair, but
healthy. After it, ''virtually no one now maintains that religious
values have no place in public life.'' But there is a boundary
between religion and politics--for example, on abortion--where ''the
fiat of government cannot settle the issue as a matter of conscience
or conduct.''
     Mr. Kennedy said that ''at times, the proper role of religion is to
persuade the individual conscience, not to harness the coercive power
of the state.'' However deep religious feeling might be, ''The Bible
cannot be the balance wheel of our social compact...'' he told the
gathering. ''Simply because the New Testament or the Pope says
something does not mean that it can be written into the law of a free
and pluralistic nation...''
     Nevertheless, the opposing sides on these questions have come
closer, he said. He suggested areas in which they might ''take
another step together.''
     One that ''should transcend even the most angry divisions'' is aid
to the famine-stricken people of Ethiopia and the Sudan. The other,
he said, is the issue of human rights in South Africa: ''There is no
clearer pro-family issue in the world today than opposing the South
African law which brings a kind of death to family life.''
     To suffering people there, ''we must all try...to send the message
that America stands for freedom in that country,'' he said. That was
the only time he was interrupted by applause. It died before he asked
the broadcasters and their churches to refuse to invest in South
Africa and to support congressional pressure for change.
     As he ended, the senator said again that his prayer ''is that in
ways we did not even dream only a short while ago, we shall work
together'' for peace and justice.
     Mr. Falwell, at ease before his would-be peers, began congenially,
speaking of his evening with Mr. Kennedy and his son Teddy. Then he
urged support of Reagan administration policy on the federal deficit,
arms spending and Central America. They applauded it all.
     Then he got to abortion. ''We must continue to force the battle,''
he urged, and ''thanks to God, the momentum finally is moving in our
favor.'' Then, slightly defensive, he explained why he had changed
his position to accept the idea of a law to ban all abortions except
those involving rape or incest. ''I don't believe we'll have
legislation without that,'' he said, adding that ''99 percent of
abortions are convenience abortions,'' which would be outlawed.
     The preacher agreed that churches should help build ''mercy camps''
and other facilities to help the starving in Africa, although ''there
is no quick fix.''
     But on South Africa, after agreeing that ''apartheid is
abominable,'' he counseled against ''hypocritical condemnation.'' He
recalled how long it took this country to end segregation. As to the
demonstrations outside the South African embassy here, he asked why
there were none outside the Soviet, Cuban or ''Red Chinese''
embassies.
     South Africa, like Israel, is a strategic, anti-communist friend,
he said. Sometimes it is necessary to deal with unpopular regimes,
but ''if you must do business with skunks, I prefer the one spraying
in the opposite direction.''
     All of this brought him a standing ovation when he was done. Then
the master of ceremonies asked Mr. Falwell what he had learned in his
contacts with Mr. Kennedy. Thoughtfully, the preacher said, ''I've
learned nothing gets accomplished till you move out of the screaming
stage'' toward reasonable discussion.
     Asked what he would most like to change about Mr. Falwell, the
senator said, ''He works too hard. I suggest he take a sabbatical in
1988.'' Asked the same question, the preacher said, ''I think the
senator would make a great, great Baptist Republican.''
     When it was done, they parted like old friends. Both of them were
indeed older, thus gentler than they used to be. Both of them may
have learned something from their odd-couple relationship. Or it
could be simply that 1984 is over, and 1988 is still far away.
    
     End USA
    
    
nyt-02-06-85 0655est
n164  0403  06 Feb 85
AM-ECON Addatend
NYT WASHINGTON: tax reform.''
    In his own discussion of the Federal Reserve, President Reagan gave
the central bank much of the credit for reducing inflation over the
last three years, the rise in the value of the dollar and the recent
decline in interest rates.
    ''On occasion, however,'' the president added, ''the rate of money
growth has been quite volatile, contributing to instability in
interest rates and a decline in economic activity.'' He cited a sharp
decline in growth of the money supply until a few months before the
end of the 1981-82 recession and during the slowdown of the economy.
    ''We need to strengthen the commitment to a sound monetary policy
that never again retards economic growth or reacclerates inflation,''
the president said. And he added, ''We expect to cooperate closely
with the Federal Reserve in defining and carrying out a prudent and
predictable monetary policy.''
    He did not specify how he would change Fed policies, and Niskanen
said there was no effort at present to appoint the Secretary of the
Treasury - now James A. Baker 3d - to the board of the Fed, as Regan
has sometimes suggested.
    However, Niskanen said, the administration does support a proposal
contained in the longer Economic Report. Written by Poole, this
proposal would require the Fed to monitor only the basic M-1 measure
of the money supply (cash and checking accounts) rather than broader
measures as well (which include such additional funds as those in
money market and savings accounts).
    In addition, the report suggests that the Fed monitor M-1's
expansion by changing the shape of the range within which it tries to
guide its growth. The borders now take the shape of a wedge. The
lower line of the wedge represents the 4 percent bottom of the Fed's
target for M-1 growth and the top line represents the 7 percent
maximum. If the weekly report on growth of the money supply goes
above or below the bounadries of the wedge, the Fed intervenes in the
marketplace to slow or stimulate monetary growth.
    Poole writes that the shape of the wedge allows the Fed less room to
maneuver early in the year, so he would construct the boundaries of
money-supply growth in the shape of a band of two parallel lines. In
addition, he would require that the Fed base the starting point for
one year's money-supply growth at the average of the previous year's
growth.
    The Fed now bases its money-growth goals on the average of the
previous year's last quarter. Doing so, in the council's view, causes
''base drift.'' Inflation in the money supply that occurred earlier
in the year, it says, becomes incorporated in the new target, setting
the course for more inflation.
    The analysis reflects a pure ''monetarist'' view that is rejected by
many economists and the Fed itself, which uses more eclectic means of
dealing with the money supply. These skeptics believe that growth of
the money supply and the economy's behavior are not rigidly linked.
    Nevertheless, Niskanen said, the administration favors the new
approach. ''We have approval of the recommendations,'' he said.
    
nyt-02-06-85 0702est
n165  0409  06 Feb 85
BC-EDIT-POLICE Undated
c.1985 N.Y. Times News Service
    The New York Times said in an editorial Wednesday, Feb. 6:
    
When the Police Threaten Disorder
    When the New York City police threaten a work slowdown they threaten
disorder. When the mayor and police commissioner take such a threat
lying down, they invite insurrection.
    Though not even the object of the police union's grievance, Mayor
Koch can think of nothing bolder to say than ''there are no laws
being violated here.'' He is confident the police will ''do their job
on every occasion.'' Some response.
    A large number of police officers are disgruntled about an
indictment charging a fellow officer with second-degree manslaughter
in the shooting of Eleanor Bumpurs. The officer, Stephen Sullivan,
was part of an emergency service group called to deal with the
emotionally disturbed woman during an eviction proceeding.
    The union objects to a prosecution for an action that police
officials found within the established procedures - since changed. It
also objects to the way the Bronx district attorney, Mario Merola,
handled the case and contends that Sullivan is being made a scapegoat
for the failures of other city agencies.
    All that deserves plenty of discussion, but not under threats to
disrupt police work. The union's president, Phil Caruso, has
organized a work slowdown by asking patrol officers not to take any
physical action until a supervising officer or assistant district
attorney has been summoned to the scene. And all 250 members of the
Emergency Services Unit have requested transfer to other work. The
union will relent, Caruso suggests, if the indictment is dismissed or
the case is turned over to a special prosecutor.
    City Hall and police commanders apparently fear that a tougher
response would touch off a larger rebellion. The transfer requests,
they say, are only a gesture; most of the elite unit's members would
be chagrined if Ward actually accepted them. They also say that since
supervisory officers routinely visit the scenes of police action, the
slowdown may not amount to much either.
    But that still leaves the public declaration of defiance, and the
attempt to intimidate one branch of the criminal justice system by
striking at another. The police are not the only New Yorkers with
complaints about the system. No one's grievance, however, is a
license for disruption, least of all by the police. Even if only
symbolic, the union's threats are intolerable. Koch and Ward should
have said so, at once.
    
nyt-02-06-85 0708est
n166  0421  06 Feb 85
BC-FLUTIE-(Balt.)
     By Vito Stellino
    c. 1985 The Baltimore Sun
    
     New York - The money hasn't spoiled Doug Flutie yet.
     The wunderkind quarterback started earning that money yesterday,
but showed he hasn't lost any of his charm with a captivating
performance at the formal news conference at Trump Tower announcing
his $5.6 million, five-year contract with the New Jersey Generals.
     Once the affair started, the early speeches were filled with
hyperbole. Donald Trump, owner of the Generals, called Harry Usher,
the new United States Football League comissioner, the ''fabulous new
commissioner'' and said Walt Michaels was a ''fabulous coach.''
     Usher was so overcome with the significance of the occasion that he
said it was ''unspeakable.''
     He also said the USFL is ''clearly the league of the young
quarterbacks.'' He rattled off the names of Steve Young, Jim Kelly,
Rick Neuheisel, Ben Bennett, Walter Lewis and ''others.'' He said the
National Football League ''practically drools about those types of
players.''
     But Flutie managed to save the day for the USFL, and the league
hopes he can do the same thing on the field. He left after the
conference for the team's training camp in Florida and will begin
practicing today.
     He was poised, articulate and modest and spoke in complete
sentences. He is a delight for videotape editors because he doesn't
stumble around with a lot of ums and OKs. He even acted as if he were
enjoying himself. He may not be able to match the Dan Marinos, the
Joe Montanas and the John Elways on the field, but he already has
surpassed them with his polish off the field.
     If Doug Flutie didn't exist, the USFL might have had to invent him.
If he can't save the league, it's probably beyond saving. He said all
the right things. He tried to make it easy for coach Walt Michaels by
saying he doesn't expect to start the opener in two weeks.
     ''I don't intend to be the starter opening day,'' he said. ''I'll
work as hard as I can to get to that point, but I don't anticipate it
happening right away.''
     He also handled the issue of how he'll mesh with his teammates, who
may not be thrilled with his contract or his late arrival. ''It's a
slight concern of mine, the reaction to the players when I get down
there,'' he said. ''Here's a guy who comes in right at the end of
double sessions who is highly touted. Everyone is expecting a lot
from him while they've been down there working hard for two weeks.
It's just the situation. . . . I'm not the type to go in and be pushy
about anything. I'm going to try to go down and do my best.''
     Flutie said, ''I've got a long way to go, and I know that. I don't
feel the pressure because I know that I can only do as well as I can
do. I can't promise I'll be a starter. I can't promise anything. What
I can say is that I'm not going to let people down. I'm going to go
out and give it my best shot and see what happens.''
     Of course, it won't be long before he'll be the starter. The
Generals open the season with two road games, but they open their
home season March 10 against Steve Young and the Los Angeles Express.
It's a forgone conclusion that Flutie will start that game.
     Usher even said, ''We here in New York are going to be delighted to
have Los Angeles in here to watch Young against Flutie.''
     All this leaves Michaels in a ticklish situation. He has a veteran
quarterback in Brian Sipe, and Flutie has missed the heavy work in
training camp. He knows Flutie may not be ready by the third week,
but he'll live with the situation.
     When he was asked what he'd do if Trump ordered him to play Flutie,
he said he didn't think Trump would do that but added that it was
Trump's investment. The translation is that Flutie will play when
Trump wants him to and he won't want Flutie on the bench a long time.
     Michaels did say Flutie won't play in the Generals' exhibition game
this weekend, but will see some duty in their final exhibition game
the following week against Orlando.
     All this will add to the pressure on Flutie, but he made it sound
as if that won't be a problem.
     ''There's not a lot of pressure on me,'' he said. ''I'm a rookie
coming out. I'm just going after it the same way I was when I was a
freshman in college. I've got a man above me in Brian Sipe whom I can
learn from. There's a lot of high hopes, but you have to put that out
of your mind and get down to work. I don't like sitting on the bench,
but I know it's going to happen for a while. I've got to learn to
live with it. If it were up to me, I'd start tomorrow, but I may not
be ready for five to 10 weeks down the road. I'm going to be on the
bench as long as I deserve to be on the bench.''
     Flutie deflected talk about his contract, saying, ''That's not
important.''
     When Trump was asked what would happen to the contract if the
league folds, he said, ''The league is never going under. I guarantee
you.'' The reports are the first two years of the contract are
guaranteed.
     Flutie, though, claimed he didn't take the money and run. ''I
evaluated the situation,'' he said. ''I'd rather be in New Jersey
than Buffalo. I'd rather be in New Jersey than just about any other
place and have the opportunities in New York City.''
     Flutie is now off to prove whether or not he can do for the USFL
what Joe Namath did for the American Football League back when the
New York Jets had an assistant coach named Walt Michaels.
     ''I did talk to Joe, and he said just so he doesn't use the name
Broadway,'' Michaels said with a smile. ''Joe's got a patent9on that
name0.''
     Flutie even had Michaels smiling.
    
     End Flutie.
    
    
nyt-02-06-85 0721est
n167  0428  06 Feb 85
BC-BOGUES-2takes-(Balt.)
     By Kent Baker
    c. 1985 The Baltimore Sun
    
     Winston-Salem, N.C. - Tyrone Bogues has heard all the snide
references to his 5-foot-3 frame many times:
     ''Stand up, little fella.'' ''Step out of that hole.'' ''When are
you going to grow?'' Ad infinitum.
     Not to worry. Long ago, the Dunbar High product learned to cope
with the verbal abuse while demonstrating on the playground courts of
east Baltimore that he can play a big man's game - and flourish.
     This munchkin has spent an athletic lifetime staring squarely into
opponents' jersey numbers, winning games and influencing people.
     And after a scintillating 20-point, 10-assist, four-steal
performance in Wake Forest's 91-64 romp over North Carolina State
Saturday, no foe ever will look down on Tyrone Bogues again.
     Muggsy, the kid most of the big schools spurned because he was head
and shoulders below the rest, is now standing mighty tall.
     Former Marquette coach and NBC analyst Al McGuire still was raving
about Bogues the next day when the network carried Notre Dame and
UCLA, claiming Bogues's destruction of the Wolfpack was ''the
greatest I've seen in 40 years.''
     Hyperbole? May be, but not by much. From every direction, Bogues
seemed to terrorize the Wolfpack guards, feinting, then striking,
getting them to think about where he was rather than about what they
were doing.
     In one particular instance, he came up to crowd N.C. State's 5-7
Spud Webb, who promptly dribbled the ball off his foot and out of
bounds. Turnover. Muggsy had struck again.
     ''I've never worried about the size,'' Bogues said. ''And I'm not
surprised with myself because I always knew I was capable. I come
from a tough area with a lot of great athletes, and they were all
taller than I am. Once you feel you can compete with these guys, you
don't worry about it.
     ''Coach Wade (Dunbar's Bob Wade) kept me going because he never
worried about it either. He knew how helpful I am to a team and how
many problems I can create out there. He was very supportive and just
let me go out and play my game.''
     A sort of a no-stress factor. Once Muggsy proved himself, there was
no need to harp on how little he was.
     ''I was always telling people not to believe what they saw,'' Wade
said. ''And after they saw him play, they didn't; he had the last
laugh. I've seen him perform against bigger kids a lot.''
     Still, there were reservations when the time arrived for Bogues and
Dunbar to part. He couldn't avoid his height. Middle-line basketball
schools like Drake, UNC-Charlotte and Seton Hall expressed interest.
Virginia sent a letter, requesting that he agree to red-shirt, then
backed off when Bogues balked.
     Only Wake Forest would take the plunge, but coach Carl Tacy
cautioned Bogues that he would not start last year as a freshman
because Danny Young was the incumbent.
     ''He was totally honest with me,'' Bogues said. ''I knew I'd be
coming off the bench to give the team a lift.''
     After a season in which he shot only 30.4 percent and averaged less
than 10 minutes a game, the doubters were uttering ''I told you
sos.'' That would be the extent of it, they said.
    
     MORE
    
    
nyt-02-06-85 0728est
n168  0437  06 Feb 85
BC-BOGUES-1stadd-(Balt.)
    
     pickup xxx they said.
    
     But Young departed, and Muggsy began to rise above the crowd,
stalking men with the ball, dribbling under and around people to lead
the fast break and winning converts wherever the Deacons went.
    ''I think when he first came here, he thought he was going to steal
everything,'' said Delaney Rudd, his running mate in the backcourt.
''A lot of times he would gamble and leave his man wide open. Now, he
picks his spots to steal. As soon as he learned what we expected, we
knew he'd be better. He's got the whole thing down now and does a
great job of leading the team.''
     Now, Bogues is ultra-dangerous because Tacy has encouraged him to
take shots off the set offense whenever he is open. Against N.C.
State, he fired 11 and sank nine, four of them medium-range jumpers.
     ''Tyrone is a star now, simply because he is scoring more, which we
knew he could do,'' Tacy said after the big victory. ''I think this
game will certainly give him confidence in that part of his game.''
     But even if Bogues scores minimally, he is an integral part of a
Wake Forest team that must play a baseline-to-baseline game because
it lacks - you guessed it - overall height.
     He delights audiences with his all-out hustle and makes foes wish
he would pick on somebody his own size.
     ''He's so low to the ground that you have to get almost too low to
guard him,'' Clemson's Vince Hamilton said after a loss to the
Deacons. ''You stumble and trip a lot.''
     Opponents will be dribbling downcourt when all of a sudden they
will hear the pitter-patter of little footsteps. Glancing backward,
they will see nothing. That will mean Bogues was there. Then, all of
a sudden, this speck will be flying toward the other basket,
dribbling so low the ball almost seems never to leave the court.
     ''He's a waterbug, '' McGuire said after the game. ''He's like a
mosquito, always nicking at your legs. He creates holes. For what he
does, he's just as good as Patrick Ewing.''
     ''A lot of people just didn't understand the kind of impact he can
have in a basketball game,'' Deacons assistant coach Ernie Nestor
said. ''The barometer on which they judged him was how big he was,
and that's a poor barometer. If I remember my history right, Napoleon
wasn't much bigger, and he almost conquered the world.''
     As for Bogues, he shrugs off the size factor with a polite smile,
insisting he lets ''both the criticism and the compliments go in and
out.''
     Hard work and persistence are really his game, the understanding
that his size need not be a detriment, but an advantage. ''The game
is not meant for taller people,'' he said. ''It's meant for anyone
who can play.''
     This attitude, his awareness on the court and, according to Wade,
''an ability to control the tempo with or without the ball'' has made
this Lilliputian in a land of giants a darling of the Wake Forest
fans and to all the little people of the world.
     He has held Duke's Johnny Dawkins to eight points (breaking a
string of 52 straight double-figure games by Dawkins) and Georgia
Tech's Mark Price to 13. He specializes in the unexpected and never
talks about limitations.
     ''A little man has got to be tough, not physically but with his
heart. You're not going to survive if you aren't,'' Bogues said.
''I'd tell any little guy if he wants to compete he can. A lot of
people doubt us because of our size, so we have to believe in
ourselves.''
     In America, a nation inclined to embrace underdogs, Tyrone Bogues
is a natural.
     ''I heard a lot of 'ha, ha, ha, look at that little guy,' '' Bogues
said. ''But coach Wade never let me forget that we'd have the last
laugh. We usually did.''
    
     End Bogues
    
    
nyt-02-06-85 0736est
n169  0454  06 Feb 85
BC-PRACTICAL-TRAVELER Adv10 2takes
(For release Sun., Feb. 10)
By PAUL GRIMES
c. 1985 N.Y. Times News Service
    NEW YORK - If trade predictions prove correct, more Americans will
visit Western Europe this year than ever before: close to six
million, says the European Travel Commission, a New York-based
intergovernmental tourism group, compared with 5.6 million in the
banner year of 1984. While such forecasts gladden the hearts of
travel agents and tour operators, they could also portend peak-season
problems, however, in finding accommodations, getting tickets to
festivals and bucking enormous crowds at popular sights.
    If you, the Europe-bound traveler, insist on waiting until the last
minute to make your hotel or pension reservations, or even decide to
take potluck once you get there, chances are you will findsomething.
But don't be
surprised if it is miles from anything you care to see or do, or if
you have to share a bathroom with 8 or 10 others. If you want to
avoid such risks, the time to book for June, July and August is right
now.
    To illustrate: The Cortell Group, a New York tour company that
pioneered in European fly-drive packages, used to encourage clients
to drop in without reservations at participating hotels. ''Now we are
telling people to reserve before you go'' said Bern Marcowitz, the
vice president for marketing. ''At least do so for your first night,
so you have some place to stay when you land, for your last night
before returning home and maybe at midpoint too.''
    Some of this country's largest operators of travel programs in
Europe concede that last year they had problems because they failed
to anticipate how many Americans would be attracted there by the
unusually strong dollar. ''It was not so much turning people away at
the inn as turning people away at the booking stage,'' said Carole S.
Goldsmith, director of corporate communications for the First Family
of Travel, a group of tour-operating companies. She and
representatives of other major tour operators said they could have
sold tens of thousands of more hotel packages in such cities as
London, Paris, Florence, Venice and Rome, as well as escorted tours
and fly-drive vacations, if only they had been able to obtain more
rooms.
    ''On the Globus side, we turned away more than 20,000 people,'' said
Jeffrey Joseph, executive vice president in the New York office of
Globus-Gateway and Cosmos Tourama, sister escorted-tour companies
based in Lugano, Switzerland. ''We just didn't have space. This never
happened before. People called and they were willing to take about
anything, but we hardly had anything to offer because we were all
sold out. On the Cosmos side we turned away thousands and thousands
of people. We had to incur all of the selling expenses, but we didn't
have enough room to accommodate all the people who responded.''
    Several operators spoke of difficulties in getting tickets to
festivals on tour itineraries, such as last year's performances of
the ''Passion Play'' at Oberammergau, West Germany. Others reported
problems in getting firm commitments from restaurants for group
meals, especially lunches near popular sights. If you didn't arrive
promptly, several said, your group might be turned away. Some
companies, such as Maupintour, give the manager who accompanies each
tour the authority to make minor changes in itineraries, such as to
switch city sightseeing from the morning to the afternoon, thereby
avoiding the heaviest crowds.
    ''Some of our tour escorts simply got overworked,'' said Nigel
Osborne, vice president for sales and marketing of Trafalgar Tours.
''The problem was that they were coming back from one tour and not
really getting a day off before going out on another.''
    This year, tour operators say, things will be different. The big
ones have increased their hotel allocations sharply, in some cases
beginning their season earlier and ending it later in order to gain
favor with hoteliers who do not like being ignored when traffic is
slack. Thomson Vacations of Chicago, which operates out of the Middle
and Far West, is planning on 18,000 customers, compared with 5,000 in
1984, said Liz Healey, director of public relations. Trans World
Airlines has increased the capacity of its most-popular Getaway
Europe tours by 31 percent, according to Jeff Broudy, the airline's
manager of tour marketing. Pamela Paul, vice president of American
Express Vacations, said the company's capacity was being increased 50
percent.
    In part, all this means that many tourists who prefer to travel
independently may be forced to buy some sort of hotel package if they
want comfortable accommodations in a major European city. Some
packagers, however, are actuallylowering prices this year
because the dollar has been stronger than when they made their
commitments for 1984. It is possible that you may be offered a better
hotel room at the same price you paid for a more modest one last
year. In some countries - such as West Germany under a Cortell
fly-drive program - car rental rates are lower this year.
    Clout with European hoteliers, however, is not necessarily in
proportion to a tour operator's size. Italia Adagio of Freeport,
N.Y., is minute compared with American Express or TWA Getaway, but
its tours in Italy promise top-drawer sophistication and luxury. ''In
the eight years that we've operated, only once did a hotel fail us,''
said Frieda Yamins, the artist who founded the company and
accompanies the longer tours. ''We never did business with that hotel
again.''
    (MORE)
    
nyt-02-06-85 0748est
n170  0456  06 Feb 85
BC-PRACTICAL-TRAVELER Adv10 1stadd
(For release Sun., Feb. 10)
NYT NEW YORK: hotel again.''
    Mrs. Yamins said she makes her plans early, establishes friendships
with hotel operators and sends firm deposits, which, she says, are
especially important ''because contracts are not signed in blood.''
''I personally will be going to Italy in a few weeks,'' she said,
''to have a cup of coffee at our hotels, to have a chat, and see how
things are going.''
    If you are determined to avoid tours and packages and to travel
independently, it is best to deal through a travel agent who is
familiar with the part of Europe you plan to visit. ''Get your agent
started on the hotels right now for June, July or August,'' advised
Dorothea Quinn of the Sarah Marquis Travel Service in Manhattan.
''Have your agent try at least three hotels in each city, so you will
be sure to get at least one you like.''
    Packages and escorted tours are usually sold through travel agents
rather than directly by the operators. If you are shopping for one,
asked your agent such questions as these:
    -Exactly what type of hotels will you stay at and where arethey
situated in each city? Rating systems can be vague
and, even if governmental, can vary widely from country to country.
Also, some operators increasingly use airport or suburban hotels,
which may or may not be convenient for sightseeing or shopping or
close to public transportation. Be cautious of such brochure
euphemisms as ''scenically located.''
    -Where does a tour officially start and end? If the answer is the
United States, then the tour operator will be responsible for your
lodgings on the first and last night in Europe. If it starts in
Europe, however, the responsibility may be yours, and you could have
trouble getting a satisfactory reservation. Osborne of Trafalgar
Tours said his company has been encouraging American clients to spend
the last night of their British travels at a hotel near Heathrow
airport, and will help them find rooms there. ''The hotels are just
as nice as in the heart of London,'' he said. ''The rates are decent
and you can wake up later in the morning to catch your flight home.''
Suppose you would like a festive dinner that last evening? ''The
Holiday Inn in Slough is close by,'' he said, ''or if you want to go
to London, the hotel has a shuttle bus to the tube.''
    -If a tour is oversubscribed, will the operator add extra sections?
If the answer is yes, be cautious. An extra section could mean that
you will stay at a ''comparable'' or ''similar'' hotel, because there
is no room where the first section stays. This may be acceptable to
you; with each operator be sure that you agree on definitions of
''comparable'' and ''similar.''
    Similarly, if a tour packager plans, for example, weekly departures
for visits to London, he or she may not use the same hotel throughout
the season. Before putting down a deposit, ask your agent to
determine which hotel the group will stay at the week you would like
to go.
    
nyt-02-06-85 0755est
n171  0506  06 Feb 85
BC-TRAVEL-NOTES Adv10 2takes (UNDATED)
(For release Sun., Feb. 10)
By LAWRENCE VAN GELDER
c. 1985 N.Y. Times News Service
Celebrating Key West Revival
    Back in 1960, a group of women in Key West, Fla., held a small party
to honor Col. Mitchell Wolfson, a native son and local businessman.
Two years before, he had bought the early 19th-century Geiger mansion
to save it from the bulldozer, then had restored it and named it
Audubon house after the painter who once stayed there for two weeks
while painting the abundant bird life of the Keys.
    The dinner was followed by a tour of other historic houses, and from
that grew the movement to save the architectural heritage of the
eight-square-mile island at the end of the Overseas Highway (U.S. 1).
The Conch Renaissance - named after the early settlers - was born,
and so was Old Island Days, a two-and-a-half month succession of
literary activities, house and garden tours, beauty pageants, pancake
breakfasts, art exhibits and competitions that include a
conch-shell-blowing contest on March 30.
    The hoopla reaches its climax on March 31, with the Blessing of the
Shrimp Fleet, when gaily-decorated trawlers will sail past Mallory
Dock, seeking the blessing of a Roman Catholic priest in their
endeavors. Afterward, at moderate prices there is a chance to devour
steamed shrimp in assorted sauces and such Key West delicacies as
conch chowder and Key lime pie.
    Among the highlights of Old Island Days, now in its 25th year, are
three house and garden tours. Featuring five homes each and sponsored
by the Old Island Restoration Foundation, the tours are scheduled
from 5 to 9 p.m. on Feb. 15 and 16 and March 15 and 16 and from 10
a.m. to 4 p.m. on March 1 and 2. Tickets, priced at $8, are available
at the Hospitality House on Mallory Square.
    Proceeds of the tours are used to preserve Key West's architectural
heritage.
    A complete listing of events during Old Island Days is available, if
you send a stamped, self-addressed, business-size envelope, from Old
Island Days (Post Office Box 689, Key West, Fla. 33041; 305-294-9501).
    
Houston Plans Arts Festival
     With classical, folk, jazz, Latin, country and pop music - not to
mention dance, theater, art, crafts, antiques, flowers and food - the
city of Houston plans to usher out winter and get a flying start on
spring.
    The frame for all this is the Houston Festival, beginning March 19
and ending March 31. It will take place indoors and out - everywhere
from a stage at City Hall (noontime concerts) to the Alley Theater
(opening ceremonies, including music, sculpture, video and a
performance of Tennessee Williams's ''Sweet Bird of Youth'') to Sam
Houston Park, Market Square and Tranquillity Park.
    Among the highlights are a New Music Festival, featuring multimedia
events at Diverse Works, March 22 and 23 and March 29 and 30; a
succession of Outdoor Festivals, including one on March 23, with
performances on seven stages and a arts and crafts exposition in Sam
Houston Park; a children's parade on March 25; a Bach 300th birthday
celebration with the Houston Symphony and the Texas Chamber Orchestra
on March 23, and an art auction in Sam Houston Park on March 31.
    Downtown in Market Square, handcrafted wares, plants, flowers,
antiqus and collectxb.info4mation and a brochure containing a schedule are
available from The Houston Festival (1964 West Gray, Suite 227,
Houston, Tex. 77019; 713-521-0993).
    
Remembering The Battle At Remagen
    On the seventh day of March, in the town of Remagen on the Rhine
River in West Germany, a ceremony of reconciliation will be held.
    The ceremony will commemorate the 40th anniversary of the battle for
the Ludendorff Bridge, whose capture - despite German efforts to
destroy it - paved the way for the Allied advance into Germany, saved
thousands of lives and shortened World War II.
    Participating in the ceremonies next month will be members of the
Ninth Armored Division, which seized the bridge; veterans of the 11th
Panzer division of the German Army that opposed them; the mayor and
townspeople of Remagen, representatives of the West German government
and the United States Embassy in Bonn; widows of three of the four
German officers executed for failing to demolish the bridge;
high-ranking U.S. military commanders in Western Europe; a British
army delegation; groups of Belgian Fusiliers, who fought with the
Americans; the band of the United States Army's First Armored
Division, stationed in Germany, and the German Army Band.
    (MORE)
    
nyt-02-06-85 0805est
n172  0517  06 Feb 85
BC-TRAVEL-NOTES Adv10 1stadd
(For release Sun., Feb. 10)
NYT UNDATED: Army Band.
    The tour, organized by veterans of the Ninth Armored Division, open
to veterans and nonveterans and led by officers involved in the
battle for the bridge, has been built around the ceremonies at
Remagen. Basically, it will retrace the division's wartime trail
through Belgium, Luxembourg and West and East Germany.
    While one delegation will leave Chicago on February 28, the main
group will leave New York on March 1. There are a 17-day and 10-day
option. Based on double occupancy, the 17-day itinerary is priced at
$1,775 and the 10-day trip is priced at $1,195. The shorter tour,
which ends after the ceremony at Remagen, does not include visits to
East Germany, Frankfurt, Nuremberg and areas occupied by the division
after the end of the war.
    Both tours include round-trip air fare, accommodations, daily
Continental breakfast and dinner, some lunches, sightseeing, hotel
taxes and tips, and the like.
    More information on Reconciliation at Remagen is available from
Travel & Tours Glendora (410 Black Horse Pike, Glendora, N.J. 08029;
609-939-3454).
    
15 Hotels In the Rockies Reflect History
    One of them was built by William F. (Buffalo Bill) Cody; another by
F.O. Stanley, the co-inventor of the Stanley Steamer. Still another
was the summer White House of Teddy Roosevelt. Taken all together,
their roster of guests has included such memorable figures as Bat
Masterson and Butch Cassidy.
    The subject here is a group of 15 hotels (many of them on the
National Register of Historic Places) - in South Dakota, Wyoming,
Colorado and New Mexico - that are the members of the Association of
Historic Hotels of the Rocky Mountain West.
    They range from such famous larger hotels as the 480-room Brown
Palace, founded in 1892 in Denver, to the 25-room Hearthstone Inn,
built in 1885 as a private mansion in Colorado Springs to the
smallest and oldest, Peck House, founded in Empire, Colo. in 1860.
Teddy Roosevelt favored the 100-room Hotel Colorado, opened in 1893
near the hot springs pool in Glenwood Springs, Colo., and not far
from the Aspen and Sunlight ski areas; and F.O.Stanley's name is
memorialized on the 132-room Stanley Hotel, established in 1909 in
Estes Park, Colo., at the gateway to Rocky Mountain National Park.
    Each hotel has a distinct character, from grand luxury to quaint
intimacy, and with d 5/8ecor from Victorian to Art Deco to Southwestern
Adobe. Based on double occupancy, accommodations range in price from
$30 a night to $125.
    More information on the Historic Hotels of the Rocky Mountain West,
as well as a brochure and reservations, are available from Historic
Hotel Reservations (1540 South Holly Street, Denver, Colo. 80222;
303-759-1918 within Denver; 800-228-4326 from elsewhere in Colorado;
and 800-626-4886 from elsewhere in the United States, except Alaska
and Hawaii).
    
Winter Escape For Golfers
    For those who measure winter by the calendar and not by the
groundhog, there is still a long way to go. And for golfers dreaming
of a chance to bask in sunshine and stride along green fairways,
impatience may be waxing. In the North, after all, even the official
arrival of spring in March may not mean an end to cold and snow.
    Which brings us to the Sunshine Classic, offering an opportunity to
play five rounds of golf in a handicap tournament and combine it with
a visit to Portugal. The classic is structured so that each day of
play is a separate tournament, and there are overall prizes as well.
March 24 to April 3 are the dates. The courses are the scenic Vale do
Lobo Club de Golf, where two rounds are played; the Penina Golf Club
with its unusually long holes (par 73) for one round and the tricky
Quinta do Lago for one; all are in the Algarve region, with its
orange and olive groves, its pines and mimosa and its beaches. The
fifth and final round is played at the famous and beautiful Estoril
Golf Club in Estoril, just outside Lisbon.
    In addition to the activities on the links, there are sightseeing in
Partimao and Lagos, two colorful fishing villages in the Algarve; a
cocktail party, a tour of Lisbon, where headquarters will be at the
Hotel Ritz, and an awards dinner, which will be accompanied by fado
entertainment.
    Based on double occupancy, the Sunshine Classic, leaving New York
March 24 and returning April 3, is priced at $1,279 a person. The
price includes round-trip air fare, accommodations, daily Continental
breakfast, tournament entry fee, greens fees, prizes, sightseeing,
transfers and the awards dinner.
    More information is available from Ridgewater Partners (116
Clapboard Ridge Road, Greenwich, Conn. 06830; 203-869-5164).
    
nyt-02-06-85 0816est
n173  0534  06 Feb 85
BC-INDIA-RAJ 3takes Adv10
(ARTS AND LEISURE)
William Borders, editor of The New York Times Week in Review,
was The New York Times correspondent in India from 1975 to 1979.
(For release Sun., Feb. 10)
By WILLIAM BORDERS
c. 1985 N.Y. Times News Service
    NEW YORK - On the last page of ''A Passage to India,'' the E.M.
Forster classic from which David Lean has made an epic film, the
Indian protagonist, Dr. Aziz, takes his final leave from Fielding,
his visiting English friend, with these furious words:
    ''India shall be a nation! No foreigners of any sort! Down with the
English anyhow. That's certain. Clear out, you fellows, double quick,
I say. We may hate one another, but we hate you most. We shall drive
every blasted Englishman into the sea, and then - you and I shall be
friends.''
    How vastly - though subtly - different that ending is from the
prettified ending of the movie, in which Fielding and Aziz part with
a warm, manly handshake, full of mutual respect and affection.
    The difference in those two concluding scenes reflects two different
visions of India, and of the Raj, the complex love-hate relationship
that existed - and still exists - between the English and the
Indians. And there are other visions of India around these days, too,
arousing strong feelings pro and con. India is much on our minds at
the moment, as America experiences what must be the most concentrated
cultural infusion of things Indian, at least since the days of
Mahatma Gandhi and independence nearly 40 years ago.
    Besides ''A Passage to India'' there is also also ''The Jewel in the
Crown,'' Granada TV's epic series, which has been dominating Sunday
evenings in many homes for nine weeks now. Both these views of India
follow closely on the 1982 film ''Gandhi,'' which won eight Oscars;
''Heat and Dust,'' the Merchant-Ivory film of l983, which starred
Julie Christie, and ''Far Pavilions,'' the unsuccessful but still
sumptuous HBO series of early last year.
    Later this year, the feast will become even richer, with the
''Festival of India,'' the largest concentration of Indian art and
culture ever assembled in the United States. It will include special
exhibitions of painting. sculpture and the performing arts in New
York, Washington and 40 other cities from coast to coast.
    At the same time, India has been on the front pages, too, first with
the appalling news of Indira Gandhi's assassination last October and
then, less than five weeks later, with the disaster in Bhopal, in
which poisonous gas killed more than 2,000 people. Like so many
Indian statistics, that number of fatalities in an industrial
disaster was the biggest ever, compelling us not to turn away.
    All of this puts India into the consciousness of a good many
Americans who have not paid much attention to the place before,
educating them, as Alistair Cooke is doing every Sunday night in his
introductions to ''The Jewel in the Crown.'' And for those of us who
have already known and loved India for years, the phenomenon is
gratifying; it is good, though curious, to see stacks of Paul Scott's
''Raj Quartet'' (from which the television series was drawn) piled up
in the bookstores beside the latest from Danielle Steel, Stephen King
and Mario Puzo.
    But at the same time, all the India adulation is also somehow
troubling to the people who are already India addicts, to use a term
that Alistair Cooke applies to Paul Scott. We love India and we are
distressed that the image of it that is being projected is so far
from complete.
    For some, this reaction translates into fury. Salman Rushdie, the
great novelist of post-Independence India, vehemently protests ''the
fantasy that the British Empire represented something noble or great
about Britain,'' and complains that the films create the impression
''that the end of the Empire was a sort of gentlemen's agreement
between old pals at the club, that the British weren't as bad as
people make out.''
    Others are more gentle in their protestations. K. Shankar Bajpai,
the Indian ambassador in Washington, referred to the Lean film and
the public television series being broadcast on Masterpiece Theater
as ''this Raj nonsense,'' and pointed out that both films are really
about the English, not the Indians, with India simply functioning as
an exotic backdrop for self-examination.
    In ''A Passage to India,'' Mrs. Moore and her prospective
daughter-in-law, the two women whose visit to India provides the
title, as well as the central focus of the story, both spend quite a
bit of effort searching for what they call ''the real India,'' but
what they find, ultimately, is themselves. Mrs. Moore (played by
Peggy Ashcroft, who also plays Barbie Batchelor, the kindly
ex-missionary in ''The Jewel in the Crown'') explains:
    ''India forces one to come face to face with oneself. It can be
rather disturbing.''
    Ambassador Bajpai, in an interview, said that the Lean film and the
public television series, which were both made mostly with British
talent, ''reflect an understandable nostalgia for Britain's lost
glories, but they do not have much to do with India.''
    Lost glories indeed. There can be little in history that was more
glorious than the Raj. And perhaps it is not surprising that this
rush of British nostalgia for the grand days of Empire comes at a
time when Britain's economy is in tatters, its role on the world
stage vastly diminished, and its currency so devalued that Harrods
and the Connaught Hotel have become bargain destinations for foreign
tourists.
    (MORE)
    
nyt-02-06-85 0828est
n001  0539  06 Feb 85
BC-NYT-BUDGET-06 Opening Sked
    The New York Times News Service schedule for Wednesday, Feb. 6,
1985. For use by subscribers only. Unauthorized use is strictly
prohibited.
    
    Patrick Vance is in the slot. If you have any questions about the
news report, please call him at (212) 556-1927.
    
    COLUMNS (For Thursday release)
    William Safire, Anthony Lewis, both to come. Details later.
    
    INTERNATIONAL
    Moscow - SOVIET - Standing in line persists as a scourge of Soviet
life. So common and pervasive are the lines that they have evolved
their own etiquette and even their own slang. By Serge Schmemann.
    
    NATIONAL-GENERAL
    New York - PARADE - Can a woman lead the St. Patrick's Day Parade?
Dorothy Hayden Cudahy aims to find out. By William Geist.
    
    WASHINGTON
    CHIEFS (WashPage) - Once again, Washington is gearing up for a fight
over the make-up and role of the Joint Chiefs of Staff. By Charles
Mohr.
    
    ABORTION - Abortion clinic bombings have caused disruption for many,
and have confronted authorities with a kind of radical violence
reminiscent of Vietnam-era protests. By Dudley Clendinen.
    
    FINANCIAL
    New York - MARKET - The day's stock market activity. 700.
    
    New York - ICAHN - Carl C. Icahn once confided to an acquaintance:
''Chess was one thing I was really good at. I could have been a
master or something, but there was no future in it.'' If the game
failed him on that score, the predatory skills he honed over a chess
board have served him well elsewhere. By James Sterngold.
    
    Paris - RADIO - Two European companies, one British and the other
French, are battling for a Pentagon plum. They make the kind of
sophisticated, mobile, secure communications network that American
commanders say they need on the high-technology battlefield of the
future. By Paul Lewis.
    
    Washington - ECOSCENE - Last fall, in the face of 12-digit budget
deficits, President Reagan found himself forced to promise that,
while almost everything else would be slashed, not a penny would be
cut from Social Security. It was a clear demonstration of the extent
to which elderly Americans have come to occupy a special place in the
national psyche. By Robert Hershey.
    
    
     nn
    
nyt-02-06-85 0839est
n002  0545  06 Feb 85
BC-NYT-BUDGET-06 Opening Sked Addatend
    ADD N.Y. TIMES OPENING SCHEDULE
    
    INTERNATIONAL
    Gibraltar - GIBRALTAR - Residents of this British colony say they
have a sense that they have been abandoned by Britain and are about
to be engulfed by Spain. The uncertain future has brought bitter
political divisions. By Edward Schumacher.
    
    Toronto - TORONTO - This city's besieged islanders are fighting to
turn the tide. The government is again seeking to evict them in order
to create parklands. By Douglas Martin.
    
    WASHINGTON
    IRAQ (WashPage) - With the improvement of relations with the U. S.,
Iraq is upgrading its Interest Section here to an embassy. That means
a change in life-style and operation for the soon-to-be ambassador,
Nizar Hamdoon. By Barbara Gamarekian.
    
    BRIEFING (WashPage) - Notes from the nation's capital. 700.
    
    ENTERTAINMENT
    New York - THEATER-REVIEW - Frank Rich reviews ''Three Guys Naked
Below The Waist.''
    
    SPORTS
    Seattle - WILKENS - Sonics Coach Lenny Wilkens stays calm amid a
storm of criticism over his NBA team's slow start.
    
    New York - SOCCER - In the face of severe financial problems, the
North American Soccer League is considering suspending its outdoor
season for a year to build a stronger organization. By Alex Yannis.
    
    Undated - SCOUTING - Notes from the world of sports. 700.
    
    FINANCIAL
    New York - CREDIT - The day's activity in the credit markets. 600
    
    New York - MARKETPLACE - Stock market commentary. 700.
    
    Budapest - COMPUTE - Computer Techniques, or Szki, a commercially
run software house with annual sales of about $20 million, is one
reason why Hungary is emerging as the Soviet bloc leader in software
exports. By John Tagliabue.
    
    New York - EUROTRAVEL - Fueled by the continued strength of the
dollar, another surge in travel to Europe is in the making, and the
major international airlines are already adding flights and
destinations for the peak summer season. By Agis Salpukas.
    
    Tokyo - INVEST - Japanese banks and securities houses, with
deregulation toppling the barriers that once stood between them, are
locked in a battle for turf. One of their fiercest fights involves
investment management. By Susan Chira.
    
nyt-02-06-85 0844est
n003  0556  06 Feb 85
BC-SOVIET 2takes
By SERGE SCHMEMANN
c.1985 N.Y. Times News Service
    MOSCOW - A group of Western reporters had gathered outside a
courthouse here one wintry morning to await the outcome of a
dissident's trial.
    Within minutes an old woman scurried up. ''What are they handing
out?'' she anxiously asked. ''Chto dayut?''
    ''Fifteen years,'' one of the reporters shot back with morbid humor.
Unamused, the woman bustled off.
    To her, the sight of a cluster of people had signaled goods, rare
goods, difficult-to-obtain goods, goods that could justify an arduous
day of dragging shopping bags around cold streets and crowded
streetcars.
    Her question, ''chto dayut,'' is the opening line in an exchange
that comprises probably the most common ritual of daily life in the
Soviet Union.
    ''Chto dayut?'' is followed by ''Comrades, who is last in line?,''
then, ''I am after you,'' and the newcomer takes his - or more often
her - place in another of the innumerable queues outside some dank,
slushy store.
    It may be for oranges, or shoes, or melons, jackets, fabric, Rubik's
cubes, theater tickets, buses, vodka or for any other of the luxuries
or necessities for which Russians still spend much of their time
foraging and waiting.
    So common and pervasive are the lines that they have evolved their
own etiquette, even their own slang. Shoppers in a busy store can
have their place held in one line while they stand in another. Women
with small children pass freely to the front. Other privileged
people, ranging from disabled war veterans to recipients of the title
''Hero of Socialist Labor,'' are also allowed to go to the head of
the line.
    Goods, in this world, are ''handed out,'' not sold, as if to
underline that the issue is not one of cost or choice, but simply one
of finding the stuff.
    No one walks the streets without some money, just in case, and a
string bag, called ''just-in-case'' or, in Russian, ''avoska.''
    Lifelong practice breeds keen instincts - long lines seem to
materialize in the most obscure locations if something decent is
being ''handed out,'' and anyone walking the streets with a string
bag full of, say, bananas, is likely to be asked by passers-by, ''Gde
vzyal?'' - ''Where did you get that?''
    The psychology of the line was described recently in the daily
Sovetskaya Rossiya by a reporter, L. Ivanova, who joined a line in
GUM, the department store.
    ''What's the line for,'' she asked.
    ''There was one, and I got in,'' replied one taciturn man.
    Others spoke of making neighbors green with envy at the velour
fabric beckoning from afar. Still others had no particular need for
velour, but they figured that, since it seemed to be worth waiting
for, they might as well get some.
    ''For shoppers like that, the line takes on its own magic
significance,'' Miss Ivanova reported. ''The mere existence of a
line, they reason, means that, at the end of it, there must be
something that is in short supply. Getting it becomes a goal in
itself, a kind of hunt, a game.
    ''We can be calm when the line is for something we are not
particularly interested in. But what happens when we see something we
have been dreaming about. One becomes transformed by excitement, an
unhealthy gleam flashes in the eyes ...''
    Yevdokiya G. Gladun, a retired worker from Rovno, may not have Miss
Ivanova's eloquence or philosophical bent. But the few hard facts she
addressed to Izvestia recently told a story every bit as poignant:
    ''I have been living here since 1963. The nearest vegetable store is
at 17 Prospekt Mira. On Sept. 1, I stood there for almost half a day
to buy tomatoes.''
    In response to the complaint, Izvestia turned to an expert on lines,
Vasily D. Patrushev, researcher in the Work and Leisure Time
Department of the Institute of Sociological Research.
    ''Don't be surprised that we study lines,'' he wrote. ''Lines not
only can be studied, they must be studied, like an enemy, to find
ways to get the better of them.''
    He said that the half-day spent by Mrs. Gladun in line for tomatoes
contributed to the 65 billion man-hours that Soviet citizens spend
shopping each year. That, he said, was the equivalent of full-time
employment of 35 million people. Eighty percent of that time, he
continued, is spent shopping for food, and that does not include the
time needed to find the store that stocks the needed product.
    The problem is one that Konstantin U. Chernenko, the Soviet leader,
brought to the attention of the ruling Politburo at a recent session.
    ''Comrades,'' he is reported to have said, ''it is not unusual for
one type of merchandise or another to disappear from shop counters,
goods that are often the easiest to make and the most needed on a
daily basis.''
     Chernenko focused on shoes, a perennial problem.
    ''Is there any explanation other than gross blunders for the obvious
lack of good-quality footwear, especially children's shoes?'' he said.
    Like a true politician, Chernenko had a commission looking into the
matter, and he promised that the panel, led by a first deputy prime
minister, Geidar A. Aliyev, would soon submit a ''comprehensive
program'' to expand consumer services and goods.
    (MORE)
    
nyt-02-06-85 0855est
n004  0603  06 Feb 85
BC-SOVIET 1stadd
NYT MOSCOW: and goods.
    According to Patrushev, the problem goes beyond ''gross blunders.''
In fact, he wrote, ''to think that lines are caused by shortages of
goods is a typical misconception.''
    The real problem, he said, is that the entire system of production
and distribution, from top to bottom, is stacked against the
consumer. The lines bemoaned by politicians and despised by consumers
are, in fact, a useful institution for all except those who stand in
them.
    ''The line that we all dislike does not look bad on the books of the
store. The line, in fact, represents a living, unbroken conveyor of
buyers, and insures that the store fulfills its sales plan,''
Patrushev wrote.
    One indication of the efficiency of lines, from the seller's
standpoint, is that while buyers spend 65 billion man-hours a year
shopping, sales clerks spent only 11.6 billion man-hours a year
selling.
    In a uniquely Soviet predicament, the consumer suffers not only from
the need of stores to fulfill their sales plans, but from their fear
of exceeding the plan.
    An economist writing to Izvestia in reply to Patrushev's comments
noted:
    ''If a store is 'closed for inventory' toward the end of the month,
it simply means that it has fulfilled its monthly plan early and has
no desire to overfulfill it, for fear that a higher plan will be
handed down in the future.''
    In a system where demand so deliberately exceeds supply, corruption
is inevitable.
    Arkady Raikin, the comedian, gets some of his best laughs with the
story of a naive shopper who keeps meeting people with full shopping
bags, but finds only empty stores. A passer-by finally takes pity and
advises the luckless shopper to ''enter from the back, take from
below and pay high above.''
    The recommended practice - of coming in through the back door,
getting the goods from a special supply in the cellar, and paying
above the official price - may not always be as amusing as Raikin
makes it. Yuri K. Sokolov, the director of Moscow's best food store,
was executed last summer after making millions as purveyor of fine
foods to the elite - from below.
    The obvious solution to the lines would be to reverse the chain of
incentives so that the consumer would call the tune - through sales
commissions, competition, profits and all the other mechanisms of a
consumer-oriented system.
    But such capitalist notions remain alien to the men in the Kremlin,
for whom the system of centralized control and distribution remains
an article of faith. Their preferred and time-tested response to
anguished cries from the lines is to find a scapegoat.
    ''The queue, I am deeply convinced, is most often someone's failure
to perform properly, someone's lack of conscientiousness,'' wrote the
minister of commerce for the Russian Republic, Vsevolod P. Shimansky.
     Chernenko, having established that ''gross blunders'' are to blame
for the shortage of shoes, scolded the ministry of light industry and
went on to exhort retailers ''to always uphold the interests of
consumers in everything in a principled way.''
    
nyt-02-06-85 0902est
n005  0615  06 Feb 85
BC-TORONTO 2takes
By DOUGLAS MARTIN
c.1985 N.Y. Times News Service
    TORONTO - The island has the feel of a remote outpost - accessible
only by boat, no automobiles, no stores, the residences of 600 people
at the eastern end a jumbled collection of storybook cottages.
    But three-and-a-half mile-long crescent-shaped Toronto Island is
smack in the middle of the city's harbor. It is just a mile from the
gleaming downtown skyscrapers, where many islanders work.
    ''You have to be slightly offbeat to live in a place like this,''
allowed a lifelong resident, Elizabeth Amer, 46 years old, her wood
stove crackling in the background.
    It also helps to be a bit feisty. For nearly three decades,
government officials have been trying to evict the islanders in order
to create more parkland for the 2.3 million people living in and
around Toronto. Now officials may raise rents high enough to
acomplish the same thing.
    The long, loud debate over the fate of the island represents a clash
between urban and suburban values in a city that has drawn worldwide
praise for its pro-neighborhood development. It pits the City of
Toronto, which supports the islanders, against the government of
Metropolitan Toronto, called Metro, which includes the sprawling
suburbs.
    ''Suburban values reject the world of the pedestrian, of streets not
dominated by cars,'' said John Sewell, former mayor of Toronto and a
strong backer of the islanders. ''They want everything orderly, with
lots of room between buildings and clear lines saying who owns what.''
    ''It's a form of anarchy,'' countered Robert Bundy, Metro parks
commissioner and a strong advocate of eviction. ''They're a world
unto themselves.''
    It is exactly this seeming anarchy, diversity and unexpectedness
that many city experts find delightful. ''It shouldn't be destroyed
because it's lovabl3,'' said Jane Jacobs, the urban authority, who
moved to Toronto in 1968.
    Its history is almost magical. Indians called the island - actually
a peninsula until an 1858 storm sliced a passage through a sandbar -
''the place of trees standing out of water.''
    Over the years it has been home to grand hotels, dance pavilions and
roller coasters. At the turn of the century, crowds thronged to see a
famous diving horse, and Canada's 50th birthday party in 1917
attracted 65,000 people. On a sultry August day in 1923, Babe Ruth
swatted a home run into the bay.
    By the mid-1950s, the magic had faded. The level of Lake Ontario was
rising as a result of the opening of the St. Lawrence Seaway, and
fears mounted that the island would be submerged. The 4,000
inhabitants lived in increasingly tattered dwellings, many along a
Wild West-looking avenue called the Main Drag.
    In 1956, the city was only too glad to sell the island to the newly
formed Metro government for $1, a position completely reversed by
later municipal administrations. Metro had produced a $14 million
plan to oust the residents and turn 612 acres - all but a small
airport that had been built at the western end of the island in the
late 1930's and three yacht clubs - into an elegant, multi-use park.
    Within a few days, wrecking crews moved in, homes fell and petunias
seemed to sprout by the acre. The idea was that with the surge in the
population of the area around Canada's largest city, parkland would
be increasingly needed.
    Most of the homes originally destroyed were on Centre Island, a name
reflecting a local penchant - an incorrect one according to
historians - for dividing the island into as many as 15 separate
islets.
    But two sets of islanders fought back. One occupied 100 houses on
Algonquin Island, homes originally floated from the west end of the
island when the airport was being built in 1938. The other lived in
150 smaller cottages on the extreme eastern tip of Toronto Island,
called Ward's Island.
    Ward's Island began as a tent city in the 1880s. Gradually people
began to make their tents more substantial, and by the 1930s the city
began offering formal leases. The square base of many of the
cottages, now tightly winterized, hint at the tents they once were.
    Two factors helped these two sets of houses survive, long after
others were bulldozed away. The first was that they were farthest
away from where the wreckers started.
    The second was that the leases on the two so-called islands, unlike
the leases on the other islets, did not mandate compensation in the
event of eviction. The islanders thus had a strong incentive to
protect their investment.
    The key to understanding the nearly 30 years' war over the
residents' fate is the nature of these leases. Traditionally,
islanders rented ground space from the city, owned the houses they
built over that space and paid taxes to the city for various
municipal services.
    But this changed when Metro wanted them out. In a tangled series of
legal and political battles costing both sides hundreds of thousands
of dollars, it has been determined that Metro owns both the leases
and the houses and has the right to collect a fair market rent.
    The islanders have fought as if they were at war. At one crucial
point, a bright yellow air-raid siren on the clubhouse roof was
poised to send an alarm, a flotilla of boats was ready to rush island
defenders working in the city home at a moment's notice and children
were trained to lie down in front of lawmen.
    
nyt-02-06-85 0914est
n006  0619  06 Feb 85
BC-TORONTO 1stadd
NYT TORONTO: of lawmen.
    The latest stage of the battle is an arbitration hearing that began
on Jan. 8 and is expected to last for six weeks. If Metro officials
cannot get rid of the islanders, they at least want them to pay their
share, something they assuredly do not think the islanders have been
doing.
    ''They're an elitist group of people paying practically nothing,''
Dennis Flynn, the Metro chairman, said.
    Residents - who seem to range from doctors and lawyers to indigent
hippies - thus face the prospect of seeing their rents jump from as
little as $150 a month to $900 or more, if some evaluators' views are
accepted. With back rent they have been withholding since December
1981, the ultimate bill could drive many to shore.
    Selling their houses, in which many have invested thousands of
dollars, is even problematical, given the decision of several courts
that they are owned by Metro. Residents and Metro officials agree
there is already a steady black market in island homes.
    The islanders point out that their homes occupy only 4 percent of
the island, that their presence makes the island safer for visitors,
and that they would be glad to pay more, provided the amount is
reasonable.
    Their strongest arguments seem to be human. The great-great-great-
grandchildren of the original Ward now live on Ward's Island.
Community events range from winter volleyball games to poetry
readings to a grand affair last summer to honor two islanders who won
Olympic medals.
    People delight in telling about the two tomcats reputed to be the
source of every cat on the island. They also laugh about the gaggle
of Canada geese that confine their migratory pattern to occasionally
forming a V and flying from one end of the island to the other.
    Even winds that rip off Lake Ontario like flying razor blades this
time of year do not deter residents.
    ''I hope to spend the remainder of my days here,'' said Alice
Aitken, an 80-year-old islander who has spent more than 40 winters on
the island. ''I'm optimistic.''
    
nyt-02-06-85 0919est
n007  0632  06 Feb 85
BC-INVEST
(BizDay)
By SUSAN CHIRA
c.1985 N.Y. Times News Service
    TOKYO - Japanese banks and securities houses, with deregulation
toppling the barriers that once stood between them, are locked in a
battle for turf.
    One of their fiercest fights involves investment management, a
fast-growing business that seeks as its eventual prize the
faster-growing pool of Japanese pension funds. Securities houses have
already established several such firms, and Japanese banks are trying
to get permission to do so.
    Meanwhile, foreign firms are close behind. Last month, Merrill Lynch
became the first foreign brokerage to establish a separate investment
advisory subsidiary and Jardine Fleming Securities Ltd. signed a
joint venture agreement to operate such a firm with Yasuda Trust, a
Japanese trust bank.
    The new foreign firms join 13 other investment management arms of
Japan's major securities companies - and hundreds of other, smaller
and often less scrupulous agencies that have sprung up to satisfy an
increasingly interest-conscious clientele.
    The Japanese were once content to deposit their savings in
low-interest deposits that in turn financed Japan's industrial
growth, but now they are seeking higher returns. One measure of their
new concern for returns was an autumn scandal here, in which as many
as 20,000 investors lost about $125 million by placing their money
with a small investors service called the Toshijournal.
    Japanese banks are eager to tap this enthusiasm. Now barred from
establishing investment management firms by an informal ruling of the
finance ministry, they are lobbying for change. A government
committee is studying the issue, and indications are that the
ministry will relent.
    Dai-Ichi Kangyo Bank and Sumitomo Bank are but two of the large city
banks that are looking into the investment management business. Some
banks are sending employees abroad to gain expertise in a new field
here, that of sophisticated assets management.
    Behind the jockeying lie broad economic and demographic changes -
the aging of Japanese society, the slowing of industrial growth and
the increase in private wealth, according to Shigeyoshi Genjida,
director of the securities companies division of the ministry of
finance.
    Perhaps the most important is the increase in elderly population,
which has created a pension fund of more than $50 billion, expected
to exceed $300 billion by the 1990s. Bankers and brokers alike name
pensions as the driving force behind their expansion into the
investment advisory business.
    Pension management is now limited to a small number of trust banks,
which are separate from Japan's large city banks. In the spring,
however, eight foreign banks will be allowed to enter the Japanese
trust banking business, even though most Japanese bankers and brokers
cannot. In the last two months, several major foreign banks,
including Manufacturers Hanover Trust, have discussed trust banking
joint ventures with Japanese banks.
    Pressure is therefore building to open the door to brokers and
non-trust bankers. The current investment management firms are in
essence training a new breed of financial manager to be ready when
that time comes.
    The field is relatively new in Japan - the first securities company
to establish an investment firm, Daiwa Securities, did so 13 years
ago. And because Japanese clients have generally preferred
conservative investments, for example in government securities, money
managers have not generally been exposed to the range of
sophisticated investment strategies used in the United States.
    ''Few people understand the relationship betweeen high risk and high
returns,'' said an economist for one large city bank who asked to
remain unidentified. ''Most people think - no risk, high returns.''
    That attitude complicates the entry of bankers into the field
because banks here have billed themselves as trustworthy guardians of
people's money, he said, and a loss for a client could shatter that
relationship.
    But banks are persevering, nonetheless. Yutaka Norisugi, deputy
general manager of the Dai-Ichi Kangyo Bank's Treasury and Securities
division, said the bank was considering several ways to enter the
investment management business.
    ''We are Japan's biggest institutional investor, with 100 years'
experience,'' he said. ''But we don't have experience managing our
customers' assets, so we're trying to set up that system in another
area.'' The bank is planning to buy out Bank of America's share in a
joint venture called Tokyo Investment Service as one possible vehicle.
    And securities firms, allowed to set up investment management firms,
are also try fund business. Merrill
Lynch formed its new subsidiary, in part, ''to let the Japanese
government know that Wall Street investment banking firms should not
be precluded from this potentially lucrative business,'' said
Tetsundo Iwakuni, chairman of Merrill Lynch Capital Markets in Japan.
    Barred at present from pension funds, however, investment management
firms are going after the assets created by other changes - the idle
funds of corporations and the growing pool of wealthy individuals.
    ''Most of Japan's private wealth was destroyed by the war,'' said
Yukio Aida, president of the Nomura Investment Management Co. ''But
we are now beginning to see some private individuals with enomrous
wealth - founders of companies, for example - who don't know how to
manage their wealth.''
    But according to Aida and Stephen E. Stonefield, a Morgan Stanley &
Co. vice president who oversees Morgan's investment management
business here, institutional investors are still by far the largest
clients.
    
nyt-02-06-85 0931est
n008  0641  06 Feb 85
BC-EUROTRAVEL
(BizDay)
By AGIS SALPUKAS
c.1985 N.Y. Times News Service
    NEW YORK - Fueled by the continued strength of the dollar, another
surge in travel to Europe is in the making, and the major
international airlines are already adding flights and destinations
for the peak summer season.
    Stewart G. Long, senior vice president for marketing at Trans World
Airlines, said in a news conference Tuesday that so far this quarter,
the carrier's bookings for international flights, including the
summer period, were up 122 percent over the pace of last year's
strong first quarter.
    ''We've never seen figures like that,'' Long said with obvious
pleasure. He predicted that the rise in overseas travel would mean
record profits for TWA for the year.
    Other major carriers, such as Pan American World Airways and British
Airways, are also registering high levels of bookings for
international flights, mostly for the summer, and plan to expand
capacity and add routes.
    To accommodate the expected exodus, TWA is planning to increase the
number of seats it will offer across the Atlantic during the summer
peak period by 18 percent. Last summer, the carrier increased
capacity 21 percent over the previous summer.
    It is scheduled to add service to Copenhagen and Geneva, as well as
to Bombay, in April.
    E.D. Kaufman, TWA's staff vice president for passenger marketing,
said that the carrier recently had to expand its hours at its
national tour reservation center in Philadelphia. The center, which
used to be open from 9 a.m. to 6 p.m., is now open from 7 a.m. to 10
p.m., he said, but at times it still cannot handle all the calls.
    Officials at major airlines warned that travelers not taking part in
a tour should book early for hotel rooms if they want to get rooms at
reasonable rates. Last year many travelers had trouble finding
inexpensive rooms in such countries as England, France, Germany and
Italy because most of those rooms had already been booked by the
airline and travel agent tour operators.
    ''It's going to be tough to get hotel space, particularly in the
low- to mid-range price,'' said John W. Lampl, manager of public
relations in New York for British Airways.
    John Krimsky Jr., senior vice president for marketing for Pan Am,
said that independent tour operators had booked huge numbers of rooms
in Europe in anticipation of high demand. He suggested that those who
do not want to book far in advance should travel in May and April,
before the rush begins, or in September and October, after it is over.
    He added, ''Strong advance bookings indicate that the United
Kingdom, France, Germany and Italy will draw record passenger
levels.''
     Lampl said that British Airways was planning to increase its
capacity by 17 percent this summer.
    As of April 1, he said, the carrier will add new service from
Kennedy International Airport to Manchester and start service twice a
week from Orlando, Fla., to London and five times a week from Tampa,
Fla., to London.
    He said that the carrier's advance sales in February, March and
April were up 62 percent over last year.
    Discount fares such as the Apex fare, under which tickets must be
purchased 21 days in advance with a minimum stay of 7 days and a
maximum stay of 60 days, will go up at all the major airlines from 4
to 5 percent during the peak season, according to John Heilner, staff
vice president for pricing at TWA.
    The Apex fare between New York and London from Monday through
Thursday during the summer peak, for example, will increase 4.1
percent, to $639 round trip, from $614.
     Krimsky of Pan Am said that although the carrier does not have
precise figures, its bookings are up significantly over last year. He
estimated that the carrier will increase its flights by 50 percent
for the summer season over the year before. The new flights will
begin April 28.
    He said that, due to the strong demand, Pan Am was adding direct
flights from New York to three cities - Hamburg, Vienna and Nice -
and from Detroit and Houston to London.
    ''From a marketing standpoint,'' he said, ''this is going to be the
best year in a long time.''
    
nyt-02-06-85 0940est
n009  0650  06 Feb 85
BC-COMPUTE
(BizDay9)
By JOHN TAGLIABUE
c.1985 N.Y. Times News Service
    BUDAPEST - The sleek, white offices of the Institute for
Coordination of Computer Techniques tower over a group of aging
tenements that are still pocked from World War II shellings. The
contrast neatly reflects the soaring position that the computer
software industry holds in Hungary's otherwise pedestrian economy.
    Computer Techniques, or Szki, a commercially run software house with
annual sales of about $20 million, is one reason why Hungary is
emerging as the Soviet bloc leader in software exports.
    Hungary's industry has carved a niche in Western Europe for its
products, which range from computer games like the Chinese Juggler
and Caesar the Cat to sophisticated software control programs.
    The size of Hungary's software exports is unknown, but Balint
Domolki, laboratory head at Szki (pronounced ski), said his group's
hardware and software deliveries to the West generated about $3
million in revenues last year, 15 percent of total sales.
    Now, buoyed by their European triumphs, Hungary's software houses
are casting about for partners in the United States and Canada. They
even envision selling programs there for machines that the United
States Government bars them from buying.
    Nonetheless, despite the country's software successes, computer
production in Hungary continues to suffer from shoddy quality, high
costs and limited access to Western components and manufacturing
machinery, a result of technology embargoes.
    The United States and its allies ban shipments of certain types of
high-technology equipment, like powerful computers of the
International Business Machines Corp. and the Digital Equipment
Corp., to Soviet bloc states. The idea is to keep them from using the
technology for military purposes.
    Visitors to Szki's antiseptic hallways are shown a large mainframe
processor that engineers here improvised after Western export curbs
barred the purchase of a big IBM 370 computer.
    Some Hungarian experts maintain that the country's antique hardware
is responsible for its inventiveness in software, forcing programmers
to squeeze every drop of capacity out of creaky old computers.
    They concede, however, that it also forces them to ship incomplete
software to the West, where it must be refined, causing delays and
increased costs.
    In part, the rapid development of the software industry is also a
result of Hungary's efforts to broaden its private-sector economy.
Miklos Havass, director of the Computer Applications and Service Co.,
or Szamalk, another large software house, estimates that one-third of
Hungary's software output comes from small, privately owned companies
that often consist of one or two computer buffs and an outdated
machine.
    Western analysts give the Hungarians high marks. ''Just the fact
that software is developed in Hungary opens doors and gets the
attention of people in the industry who know,'' said Robert
Lefkowits, a software industry analyst at Infocorp, a Cupertino,
Calif., market research firm.
    Analysts agree that Hungary's greatest breakthrough has been a
remarkable programming language called Prolog, for programming in
logic. This is gaining wide favor in the field of artificial
intelligence, the process by which computers are programmed to solve
problems by choosing among various courses of action.
    Though its origins date to the 1960s, Prolog led a sheltered
existence for years, taking a back seat to an American-born product
called Lisp that dominated the field. In the 1970s, however,
Hungarian software experts studying in Italy brought home a Prolog
version that they adapted for particular problems, such as matching
drugs to illnesses and solving design problems in architecture.
    The real triumph came in late 1981, when Japan's Ministry for
International Trade and Industry selected Prolog as the basis of that
country's program to develop by 1990 so-called fifth-generation
computers capable of artificial intelligence.
    Last January Szki closed a deal with Logicware Inc., a newly formed
Canadian software company, to market a product called MProlog, for
Modular Prolog, in North America.
    
nyt-02-06-85 0949est
n010  0703  06 Feb 85
BC-RADIO
(BizDay)
(Art to Laserphoto 2 Subscribers)
By PAUL LEWIS
c.1985 N.Y. Times News Service
    PARIS - The scene is a European battlefield sometime in the future:
A reconnaissance officer sketches enemy positions on his map and
slips it into a green metal box in his jeep.
    Within seconds, his drawing is flashed in code through half a dozen
mobile radiotelephone exchanges and then printed out on a facsimile
machine in the commander's headquarters, miles away. At the same
time, the exchanges are handling thousands of direct-dial calls and
teleprinter messages from other officers, with each call graded
according to military priority.
    Vast quantities of battlefield information are also being collected
and processed in the system, enabling a commander to know at the
touch of button how much fuel his tanks have, or how much ammunition.
    This is the kind of sophisticated, mobile, secure communications
network that American commanders say they need on the high-technology
battlefield of the future. There is only one problem: No American
company has ever built anything like it.
    Two European companies, however, one British and the other French,
say they have just what the United States Army is looking for.
    And they are now vying for what promises to be one of the largest
single military orders the Pentagon has ever placed with a foreign
company - a $4.3 billion contract to equip five Army corps,
consisting of 25 divisions, with what the military calls Mobile
Subscriber Equipment, or MSE for short.
    The Plessey Co., a leading British electronics concern, is offering
a battlefield communications system known as Ptarmigan, in
partnership with the Collins radio division of Rockwell International
of Pittsburgh.
    Ptarmigan, which is named for an Alpine grouse, cost more than $200
million to develop. It is now being deployed by Britain's First Army
in West Germany, under a $750 million contract.
    Pitted against Plessey is France's nationalized electronics giant,
Thomson, which has joined forces with GTE's Sylvania division in the
United States to sell the Pentagon a rival communications network
known as Rita, an acronym for Reseau Integree des Transmissions
Automatique. Rita is already in service with sections of the French
and Belgian armies.
    Plessey demonstrated Ptarmigan for the American Army in trials with
British forces last year, and the French plan to show off Rita this
spring. The Pentagon is expected to choose the winner later this year.
    More than jobs and money are at stake in the competition.
Traditionally, American arms manufacturers and the armed forces have
worked together to keep foreign military equipment out of the United
States, despite pressure to buy more abroad from defense secretaries
and from NATO allies. The allies spend $10 billion annually on
American weaponry but sell little to the United States in return.
    Now the communications contract is raising hope in Europe that
American attitudes may be changing.
    Last year James R. Ambrose, under secretary of the Army, with the
backing of Defense Secretary Caspar W. Weinberger, overrode American
electronics companies eager to build a new communications system for
the Pentagon. They decided it would be quicker and cheaper to buy
developed technology ''off the shelf'' from Europe.
    This decision followed two others - the Marine Corps agreement to
buy Britain's vertical takeoff Harrier fighter and the British Hawk
trainer rather than try to build such planes.
    ''The Pentagon may finally realize it's cheaper to buy somebody
else's wheel than continually reinvent it yourself,'' said a senior
Thomson executive who asked to remain anonymous.
    But former Defense Secretary James A. Schlesinger, who campaigned
for more American purchases of foreign weaponry when he directed the
Pentagon between 1973 and 1975, warns that old ways die hard. ''It's
certainly good news if the radio contract opens up a real two-way
street in arms procurement,'' he said in a telephone interview from
Washington. ''But one must be aware of an inclination in the services
to tinker with or sabotage such agreements so they come to nought.''
    Plessey and Thomson are both wary about disclosing details of their
bids, each of which included more than 50,000 pages of classified
docments and had to be delivered to the Pentagon in a truck. But in
both projects there is a stress on American jobs.
    As with all big foreign orders, the Reagan Administration wants the
winning contractor to create as many American jobs as possible by
building much of the equipment in the United States.
    That is why both European contestants have joined with a major
American military contractor, which will be building much of the
equipment under license. Thomson is said to have made the most
generous initial offer, saying that if it wins, American companies
can expect to get 60 percent of the work involved.
    As the Thomson executive put it, ''We can take a map and show them
exactly which factories and towns will get the jobs.''
    Plessey said that American equipment normally makes up 15 to 20
percent of its Ptarmigan system. But British military officials say
that the company would provide as much work and jobs for American
military contractors as Thomson offers.
    Plessey also asserts that Ptarmigan is larger, more powerful and
more flexible than Rita. In particular, the company stresses that
Ptarmigan uses packet switching facilities, which automatically
transmit packets of data by the fastest route and are fully digital,
thus giving the system better security against jamming and
eavesdropping.
    
nyt-02-06-85 1002est
n011  0713  06 Feb 85
BC-ICAHN
(BizDay)
By JAMES STERNGOLD
c. 1985 N.Y. Times News Service
    NEW YORK - Carl C. Icahn once confided to an acquaintance: ''Chess
was one thing I was really good at. I could have been a master or
something, but there was no future in it.''
    If the game failed him on that score, the predatory skills he honed
over a chess board have served him well elsewhere. Icahn, who is 48
years old, has scored more corporate checkmates than just about any
other takeover specialist. With his bid Tuesday for Phillips
Petroleum, he is now stalking his first multibillion-dollar prey.
    The move reflects a growing boldness among takeover specialists, who
are encouraged by the increasing successes of their bids. For Icahn,
it also reflects a steep increase in risk: Phillips is about 20 times
larger than his biggest previous target, and he will have to borrow
huge sums to pull the deal off.
    If the size of the target has grown - the Phillips bid totals $8.1
billion - the plan looks familiar. Icahn is picking on a company he
believes is poorly managed, and is thus worth far more than the value
of its stock. His bid is an attempt to capture that unrealized value.
    The likely result, if the past is any guide, is that the company
will offer to buy back the Phillips stock he holds at a price
significantly above what he paid, or Phillips will be driven into the
arms of a friendly buyer, again for a price above what Icahn has paid
for his 7.5 million shares.
    Yet another possibility is that Phillips could elect to go private -
buying up all the shares outstanding, as some of Icahn's other target
companies have - to evade him.
    This time, the chips are stacked higher, but the strategy is similar
to that used by Icahn to deal his way into becoming one of the
wealthiest men in the country. Although he refuses to divulge his net
worth, those close to him say that, at the minimum, his fortune
totals $150 million, and is probably much higher.
    His success as a corporate raider has made his name one of the most
feared in corporate board rooms, along with such other takeover
specialists as Ivan F. Boesky, Irwin L. Jacobs and T. Boone Pickens -
all of whom have taken strategic investments in Phillips since
Pickens began a takeover effort last year and then had his shares
bought back by the company for a profit estimated at $90 million.
    A corporate hunter, Icahn's trophies - framed on his office wall -
are the covers of the annual reports of companies with which he has
tangled. They include Tappan, Marshall Field, Gulf and Western, Dan
River and Anchor Hocking, to name some of the more prominent.
    After he bid for Marshall Field & Co., in 1982, it eventually agreed
to be taken over by Batus Inc., winning Icahn and his investment
partners a profit of about $33 million on a four-month investment.
The Tappan Co. was driven into the hands of A.B. Electrolux of
Sweden. In one of his most bitter contests, Dan River Inc. went
private in an employee buyout.
    In his most recent venture, he bought ACF Industries, a maker of
railcars and oilfield equipment, for more than $400 million last
summer. It was only the second time he had actually acquired a
company he was pursuing.
    Although takeover specialists are sometimes viewed as being little
more than financial muggers, Icahn is regarded by investment
professionals as a master technician and tactician, with an excellent
eye for spotting undervalued stocks. In fact, Richard Tappan, who was
chairman of the company bearing his family name when Icahn made his
bid, and who resisted it, has since become an investor in Icahn's
deals.
     Icahn sharpened his investment skills in the early 1960's at
Gruntal & Co., a Wall Street brokerage, where he ran the options
department. Howard Silverman, a former colleague of Icahn's and now
president of Gruntal, recalled: ''He was quite bright, and very
aggressive, which isn't a bad combination in this business.''
     Icahn decided to move out on his own in 1968, and formed Icahn &
Co.. Since then, his principal business has been risk arbitrage -
buying into takeover situations started by others - or instigating
his own bids.
    Such a career seemed an unlikely choice to some of Icahn's older
friends. For example, Dr. Peter S. Liebert, a pediatric surgeon who
was Icahn's undergraduate roommate at Princeton University for two
years, remembers Icahn as generally very easygoing.
    ''Except when he focused on something, then he could become totally
absorbed,'' Liebert, who remains a good friend, and has participated
in some of Icahn's deals, said. ''In chess, he would analyze very,
very carefully before he moved. There was nothing reckless.''
    A philosophy major in college, Icahn attended medical school for two
years, then dropped out. Liebert said that the direction Icahn chose
surprised him. ''I would have thought he would have gone on to
graduate school in philosophy or economics,'' he said. ''He was much
more comfortable in intellectual matters.''
    
nyt-02-06-85 1013est
n012  0718  06 Feb 85
BC-ICAHN addatend
NYT NEW YORK: intellectual matters.''
    Intellect as well as dogged persistence are said to distinguish
Icahn now. And while in his dealings Icahn often cloaks himself in
the rhetoric of being a defender of shareholder rights against an
entrenched, inefficient management, one acquaintance recalled Icahn
saying: ''I'm no Robin Hood. I'm out to make money.''
     Icahn, nonetheless, feels strongly that he is working for all
shareholders when he makes his bids, and forces a buyout at a higher
price. He says he only pursues companies where management is not
maximizing the value of the company's stock.
     Icahn's fast-paced dealing has led to brushes with regulatory
authorities.
    In late 1981, Icahn and companies he controlled signed a consent
decree with the Securities and Exchange Commission over what the SEC
said were failures to make proper disclosures in his bids for Saxon
Industries and the Hammermill Paper Co..
    Later, in 1983, one of his units again signed a consent decree with
the SEC over allegations of wrongdoing in his effort to take over the
Simplicity Pattern Co. and Marshall Field. In the decrees, he neither
admitted nor denied the charges.
     Icahn is not well known on the cocktail or social circuits, largely
because he spends much of his time working. He does not take many
vacations - he owns a second home in Florida, in addition to an
estate with a tennis court in Westchester County (N.Y.). But even
when he does take a holiday, the telephone is never far away, and
never quiet for long, say those who know him.
    A keen tennis player and music lover, Icahn has been married for
eight years and has two children.
    In spite of his wealth, Icahn is said to most contented when in hot
pursuit of corporate prey.
    ''I like the game,'' he told a friend. ''But I like to win more.''
    
nyt-02-06-85 1017est
n013  0721  06 Feb 85
BC-NYT-ADVISORY-LASERPHOTO
    Attn Laserphoto 2 Subscribers:
    The following art is being transmitted today:
    
    New York -- PARADE -- Can a woman lead the St. Patrick's Day Parade?
Dorothy Hayden Cudahy aims to find out. Photo. 2-6.
    
    New York -- ICAHN -- Carl C. Icahn once confided to an acquaintance:
''Chess was one thing I was really good at. I could have been a
master or something, but there was no future in it.'' If the game
failed him on that score, the predatory skills he honed over a chess
board have served him well elsewhere. Photo. 2-6.
    
    New York -- FLUTIE -- Quarterback Doug Flutie signs
multimillion-dollar contract to play for the New Jersey Generals of
the USFL. Photo of Flutie with Generals' owner Donald Trump can stand
by itself.
    
    Paris - RADIO - Two European companies, one British and the other
French, are battling for a Pentagon plum. They make the kind of
sophisticated, mobile, secure communications network that American
commanders say they need on the high-technology battlefield of the
future. Photo. 2-6.
    
THE NEW YORK TIMES PICTURE SERVICE
    
nyt-02-06-85 1020est
n014  0727  06 Feb 85
PM-SEAT
By WAYNE BIDDLE
c.1985 N.Y. Times News Service
    WASHINGTON - A senator succeeded Tuesday in getting a major Pentagon
contractor to lower the cost of an aircraft toilet seat to $200 from
$640. But the Navy went one step further by late afternoon, obtaining
a final price of $100.
    The senator, William V. Roth Jr., a Delaware Republican who is
chairman of the Governmental Affairs Committee, said he learned of
the humble seat and its fancy price at the end of January from a
manufacturer who was interested in competing for the toilet contract.
    The part is used on Navy's P3-C Orions, submarine-hunter airplanes
used along the nation's coastlines.
    Built by the Lockheed-California Co., the plastic and fiberglass
''toilet cover assembly No. 941673-101,'' as the Pentagon refers to
it, fits over the lavatory holding tank.
    It was ''designed to be of light weight, corrosive resistant,
thermo-formed, polycarbonate material, seamless, and sufficiently
durable to withstand repeated usage and aircraft landings,''
according to a Lockheed description. The Navy bought 54 of them last
year.
    In a letter Friday to Navy Secretary John F. Lehman Jr., the
president of Lockheed, Lawrence O. Kitchen, said that a company
review had determined that its actual cost of labor and overhead
costs as well as ''handling charges, material and pretax 13.4 percent
profit rate should have resulted in an actual unit price of $554.78
versus the average of $640.09 charged to the government.''
    ''This could lead one to believe that all spares are overpriced, but
such is not the case,'' Kitchen added, noting that Lockheed would
soon send the government a check for $4,606.74 to refund the
difference.
    Roth said that Lockheed informed him today that the company would
''policy price'' the toilet seat at $200 and refund $23,760 for the
order.
    But by late afternoon Kitchen sent Lehman a telegram lowering the
cost of the deal to a ''token price'' of $100 each ''in order to put
the thing to rest,'' according to a Lockheed spokesman, Jim Ragsdale.
    ''To prevent this becoming an unnecessary diversion during
congressional discussions of the national defense budget,'' the
telegram said, Lockheed would absorb its actual costs and refund the
Government $29,165.
    ''We are pleased that Lockheed has agreed to reduce the price,''
said Lawrence J. Korb, the assistant secretary of defense for
logistics. ''We are serious in our efforts to obtain favorable and
reasonable prices whenever we discover a potential out-of-line
pricing situation.''
    A Pentagon spokesman said the Defense Logistics Agency put the
toilet part up for competitive bidding in January but called the
contest off after determining that the quoted price was too high. An
aide to Roth said the postponement came only after queries by the
senator on behalf of a small manufacturer who was having difficulties
entering the bidding process.
    
nyt-02-06-85 1026est
n015  0738  06 Feb 85
BC-IRAQ
(WashPage)
By BARBARA GAMAREKIAN
c. 1985 N.Y. Times News Service
    WASHINGTON - In the Diplomatic List, a State Department publication
that catalogues the names and duties of foreign diplomats who are
posted here, the title ''Iraqi Interests Section'' is printed in
smaller type than its neighboring alphabetized embassies. And Nizar
Hamdoon is identified as ''minister'' rather than ''his excellency,''
the ambassador.
    But all that is about to change.
    After 17 years of nonrecognition, at least diplomatically, the
governments of Iraq and the United States are restoring full
diplomatic ties. And Hamdoon, who arrived in Washington in the fall
of 1983, will soon be presenting his ambassadorial credentials to
President Reagan.
    Once again the imposing diplomatic mansion on P Street will be
called the Embassy of Iraq and, accordingly, the pace and nature of
Hamdoon's life will change.
    Iraq and a number of other Arab countries broke diplomatic relations
with the United States at the time of the 1967 war in the Middle
East, and Iraq is the last of that group to resume normal relations.
In the interim, most of those nations maintained interests sections
in Washington.
    Such sections are usually smaller operations linked to full
embassies. Of the three countries that now have interests sections
here, the Iraqis' is an adjunct to the Indian Embassy, the Cubans' is
part of the Czechoslovak Embassy, and the Iranians' is part of the
Algerian Embassy. But, more to the point, they have no diplomatic
standing.
    ''The climate just wasn't right until the late 1970s,'' Hamdoon said
in discussing the resumption of United States-Iraq relations. ''Then
came the war with Iran. If we had gone to America then and asked to
resume ties, it could have been interpreted as a matter of Iraq being
scared. The resumption of diplomatic ties must come out of principle,
not out of fear or need.''
    ''This is a promotion,'' he said with a broad smile. ''But in many
ways I have really been a de facto ambassador from the first day I
arrived, and most people at the State Department and in the
diplomatic community have dealt with me as they would an ambassador.''
    The most dramatic change that his new status will bring, he feels,
will be in his relations with Congress.
    ''When you go to a congressman and tell him you are head of an
interests section,'' he said, ''you end up spending more time on a
discussion of this matter of why we don't have normal relations than
the subject you go to talk about. I have made some good contacts, but
being an ambassador will mean I can have a better dialogue and I will
be able to arrrange some congressional visits to Iraq.''
    His new title of ambassador will also mean an upgrading in social
status. But even as the head of a lowly interests section, Hamdoon
has entertained royally. Last July he invited 600 guests to an Iraqi
National Day celebration at an elegant hotel here.
    This is the 40-year-old ambassador's first diplomatic post, and he
calls his young daughter Ula, who was born here four months ago, ''a
Washingtonian.'' He says he has found the city ''very open,'' despite
the past tension between the government of Iraq and the U.S.
government.
    ''It is easy to be received well here,'' he said. ''It is very
important to be informal with Americans.''
    His hospitality and relaxed observations about the openness of
American society contrast vividly with the impression visitors
receive upon entering the Iraqi Embassy. It bristles with almost
siegelike security.
    Windows and doors are barred. Video monitors scrutinize rooms and
halls. A conversation that was taped was marred by a high-frequency
signal when played back.
    ''In these days of terrorism, more and more embassies have to do
this,'' Hamdoon said of the security measures.
    In recent years Iraq has sought to improve its image by curtailing
its rhetoric and expelling several terrorist groups. Iraq was
subsequently removed from the U.S. list of countries deemed to
provide haven for international terrorists.
    The thaw in Iraqi-U.S. relations over the last few years has brought
about the extension of $1.6 billion in credits to Iraq for American
agricultural goods and the welcoming of American business in Iraq. A
number of American companies participted in Baghdad's International
Trade Fair in 1983 and 1984, and Hamdoon anticipates the addition of
a commercial attache and a military attache to his staff.
    ''We are also interested in inviting American tourists to our
country,'' he said, pointing to Iraq's rich history and archeological
treasures.
    Called the ''cradle of civilization'' by some historians, Iraq has
been the site of a number of flourishing cultures, including the
Sumerian, Babylonian and Parthian. ''We are the sons of that
heritage,'' Hamdoon said. ''We want the world to know that we have
the depth to deal with technology and the West.''
    
nyt-02-06-85 1037est
n016  0750  06 Feb 85
BC-CHIEFS
(WashPage)
(Art available on request)
By CHARLES MOHR
c. 1985 N.Y. Times News Service
    WASHINGTON - For 40 years some generals and concerned civilians have
been seeking to change and improve the way in which United States
armed services are commanded, only to have their more far-reaching
recommendations torpedoed by Navy admirals and powerful or lethargic
members of Congress.
    A modest effort to change the organization of the Department of
Defense was smothered in Congress last year under the weight of other
unfinished business and for want of strong leadership on the issue.
    Proponents of such reorganization have always seen the prevailing
system as ''parochial,'' one in which the chiefs of the four services
wear dual hats in their role as members of the Joint Chiefs of Staff
and as heads of the individual services. And so, the argument goes,
they are unable, or unwilling, to give useful military advice from a
''national perspective'' if it threatens their own service's budgets
or military roles and missions.
    Another attempt at reorganization is likely in Congress this year.
But the outlook is cloudy.
    ''I am confident that Congress will take a careful look at the
issue,'' said William J. Lynn, an expert on military organization at
the Georgetown University Center for Strategic and International
Studies.
     Lynn is staff director for a steering committee on the subject that
includes such figures as Representatives Les Aspin and Samuel S.
Stratton and Sens. William S. Cohen, Nancy Landon Kassebaum and Sam
Nunn, all spokesmen on military issues. The panel also includes Gen.
David C. Jones, the previous chairman of the Joint Chiefs of Staff,
Gen. Andrew Goodpaster, retired, and other former officials.
    For most of the past four decades, ever since Gen. George C.
Marshall, the World War II Army Chief of Staff, initiated efforts to
redesign a committee-directed system of more or less autonomous
services, it has been the executive branch of Government that has
sought and supported such changes. But, in a reversal, the current
Secretary of Defense, Caspar W. Weinberger, and his subordinate
civilian staff have become a center of opposition to change, while
Congress has become at least somewhat more sympathetic to such
proposals.
    ''I don't think Weinberger's opposition is a deep, philosophical
one,'' said a military affairs analyst who asked not to be named.
''He is essentially uninterested in organization, believing that it
is 'the people in the boxes and not the boxes' that count.''
    Thus, although half a dozen presidential study groups over the years
and such officers as Jones and former Army Chief of Staff, Gen.
Edward C. Meyer, have all purported to see glaring faults in the
current system, Weinberger's press spokesman, Michael Burch, said
last month that the Defense Department thought it worked well.
    The most stubborn center of resistance remains the Navy, including
the current Secretary of the Navy, John F. Lehman Jr., a civilian.
Why?
    Jones, who served in the Air Force, has noted that the Navy is the
most self-sufficient of the services, having its own air force in
naval aviation and its own army in the Marine Corps. On the other
hand, Jones has said, the Army, which is the main proponent of
change, is the most dependent of the services, getting some of its
firepower from Air Force close-support missions and requiring airlift
and sealift from the other services to fight abroad.
    The problems in the system, however, are deeper and more numerous.
    They include the quality and objectivity of military advice given to
the president and the other civilian authorities, the workability of
the chain of command if war should come, the priority given to the
''readiness'' of the armed forces to engage in combat and the
question of how to allocate money among weapon programs and services.
    Four reorganizations of the Department of Defense have taken place
since 1947. But on each occasion Congress severely limited the scope
of the changes.
    A result has been the retention of what scholars call a
''services-dominated architecture'' in which the basic autonomy of
each branch has been protected and better integration of the branches
has been stunted. Congress has specifically prohibited the creation
of a general staff system, or even a single Chief of Staff for the
entire armed forces.
    That concept conjurs up images of the Prussian, Imperial German and
Nazi organizations in the minds of some members of Congress. Other
legislators genuinely believe in protecting service autonomy. Still
others oppose change because with it might come change in their
committee responsibilities.
    Because of such strong resistance, advocates of change since General
Marshall have limited their proposals to ones that would strengthen
the authority of the chairman of the Joint Chiefs of Staff. Some,
such as Meyers, have urged the creation of a national military
advisory council in which the members of the Joint Chiefs of Staff
would surrender their day-to-day command of their services and render
''more objective'' national military advice.
    Trying to be politically practical, Jones made a determined effort
to encourage change to a strong chairman model in 1982. He also
sought to strengthen the nine U.S. military commands, such as the
Strategic Air Command or the Pacific Command, that would actually be
responsible for fighting a new war but have almost no role in
designing and training the force structure and weapons it would
require.
    
nyt-02-06-85 1049est
n017  0753  06 Feb 85
BC-CHIEFS addatend
NYT WASHINGTON: would require.
    Technically, the present Joint Chiefs are not in the operational
chain of command. It bypasses them by running from the president
through the Secretary of Defense to the various military commands.
However, because in peacetime the service chiefs control
administration of their individual branches, the heads of the various
military commands have limited power, being unable even to dictate
the training and readiness schedules of units.
    Advocates of Jones's model believe it would create a
''constituency'' for the unglamorous but militarily vital fields of
training and readiness. It might also limit the chiefs' acknowledged
tendency to rely more on their own service staffs than the 400-person
staff of the Joint Chiefs for advice and support on national issues.
It might also help deal with the fact that strategic and contingency
planning today often does not match goals to military resources
because to do so would require setting painful priorities and
eliminating some items from the budget wish lists of individual
services.
    ''We are getting less capability than we should from our increased
defense budgets,'' Jones has written. So far, however, that
apparently powerful argument has had little effect with his former
civilian masters and little impact on Congress.
    
nyt-02-06-85 1052est
n018  0803  06 Feb 85
BC-BRIEFING
(WashPage)
By PHIL GAILEY and WARREN WEAVER Jr.
c. 1985 N.Y. Times News Service
    WASHINGTON - When Gen. Paul F. Gorman, commander of U.S. forces in
Latin America, announced his retirement from the Army in December,
colleagues speculated that something must have happened, that he had
been told he had little chance of becoming Army chief of staff, a
career-long dream. But administration officials say the White House
and top Reagan advisers elsewhere are eager not to lose his services.
They want to keep Gorman in the government by offering him a choice
between director of the National Security Agency and deputy director
of the Central Intelligence Agency.
    
    President Reagan told a group of religious broadcasters Monday that
living in the White House gave him ''a special vantage point'' last
December from which he could see to the north in Lafayette Park ''the
huge menorah celebrating the Passover season'' and south in the
Ellipse ''the cr 1/4eche symbolizing the birth of Christ.'' But the
giant candlestick actually celebrated Hanukkah, the Feast of Lights,
not the Passover, which comes several months later in the Jewish
religious calendar. In the ''as delivered'' text of Reagan's remarks,
the White House press office left ''Passover'' uncorrected but put
two small five-pointed stars beside the word and two at the end of
the speech with the word ''Hanukkah.''
    
    Just before President Reagan delivers his State of the Union address
to a joint session of Congress Wednesday night, a small band of
Republicans bold enough to describe themselves as ''moderate or
progressive'' will hold a reception. Beneficiary of the $35-a-person
affair is Modrn-Pac, a group founded by Rep. Bill Green of New York
that raises money for Republican candidates of the kind that used to
be called ''liberal.'' The reception is only four blocks from the
Capitol, so any of those attending can hustle over for the Reagan
speech if they want to balance out the evening politically.
    
    The Congressional Military Reform Caucus is getting just enough size
(80 members) and working record (four years) so that internal rivalry
has developed for a leadership role. Founded by Sen. Gary Hart,
D-Colo., and Rep. G. William Whitehurst, R-Va., the group has tried
to assure nonpartisan scrutiny of Pentagon spending and policy beyond
the often friendly oversight of the Armed Services and Appropriations
Committees.
    In the new Congress, the Senate co-chairmanship of the caucus is
being rotated after two years, passing without debate from Nancy
Landon Kassebaum, R-Kan., to David Pryor, D-Ark. In the House,
however, Jim Courter, R-N.J., said Tuesday that he had not decided
whether to step aside in favor of a new co-chairman; that subject is
likely to come up in a caucus meeting Wednesday afternoon.
    Hart has written House Democratic members of the caucus that it
would be ''better to uphold the principle of the two-year term'' for
co-chairmen. He stepped down at the end of 1982, saying he wanted to
dissociate the caucus from his Democratic presidential campaign. The
senator also said that ''no one is more qualified'' for the House
co-chairmanship than Denny Smith, R-Ore., who is described by
associates as willing to serve but not eager to challenge Courter.
    
    It has been three years now since the James Joyce Society of
Washington hid a case of Irish whisky somewhere in the city and began
passing out clues of surpassing obscurity, even for the likes of
Joyceans. Anyone solving the puzzle and unearthing the whisky will
also receive a pair of round-trip Aer Lingus tickets to Dublin from
Kennedy (where else?) Airport in New York and a horsedrawn tour of
Dublin that will follow the fictional wanderings of Leopold Bloom and
Stephen Dedalus.
    The latest clue, in its entirety, is: ''A royal one 1097?'' It was
made public at a Society meeting last Saturday, on Joyce's birthday,
as has been customary. Further clues are sometimes given on June 16,
which is Bloomsday, or the day on which all the events of ''Ulysses''
are supposed to have taken place in 1904. Treasure-seekers may obtain
the clues by sending a self-addressed envelope to the Joyce Society
at P.O. Box 2212, Hoya Station, Georgetown University, Washington,
D.C. 20057. All are eligible, irrespective of residence or ethnicity.
    
nyt-02-06-85 1102est
n019  0806  06 Feb 85
BC-ADV-SPECFEAT-CORRECTION
(FOR IMMEDIATE RELEASE)
FROM THE NEW YORK TIMES MAGAZINE
Copyright 1985 The New York Times
World rights. (1,000)
AGAINST ALL ODDS: OVERCOMING DISCRIMINATION
By LEON LEWIS
    ''I can't deny that prejudice and discrimination play a big part in
our lives,'' says Leon Lewis, a veteran radio talk-show host and
free-lance writer. But Lewis, a black man, decided not to be
victimized by the debilitating force of discrimination. In 1947 he
was determined to have his own radio show, despite the fact that such
a thing was unheard of at that time in Albany, N.Y. In this About Men
column from a recent New York Times Magazine, Lewis describes how
racism ''causes some to build their own cages and become their own
oppressors,'' and how he succeeded in escaping that trap. (slugged:
BC-ODDS, priority code w, category code c)
To purchase the above material contact The New York Times Syndication
Sales Corp. Call Doris Richetti (714) 846-2877, or Dan Barber (212)
972- 1070. Overseas clients contact Paul Gendelman in Paris: 742-1711
or 742- 1411 (telex 842-230650).
This material will be transmitted to you on Wed., Feb. 6, on the tav
selector code.
    
nyt-02-06-85 1105est
n020  0816  06 Feb 85
BC-TRAVEL-Q&A Adv10 (UNDATED)
(For release Sun., Feb. 10)
c. 1985 N.Y. Times News Service
    Question: Do you know any outfitters who are running oar-powered
river trips through the Grand Canyon this year? We would like to go
in the spring.
    Answer: Several companies offer both motorized and rowing trips
through the Grand Canyon, but one that does rowing exclusively (from
Lee's Ferry to Diamond Creek) is Wilderness World, Post Office Box
310, Flagstaff, Ariz. 86002 (602-774-6468). Its first this year will
be a 14-day run starting April 16. There will be 19 trips altogether
through Oct. 10, including 3 others of 14 days, all of them costing
$1,175 a person, and 15 of 12 days, each at $1,095. The prices
include transportation from Flagstaff to the Colorado River and back
and all meals and equipment, although participants should take their
own sleeping bag, ground pad and cloth and tent.
    Each outing is limited to about 21 people riding in four or five
inflatable rafts, each with a guide who does the rowing. Equipment is
stored on a couple of other boats. Hiking excursions are organized
along the route. On the 12-day run starting June 12 a string quartet
will accompany the party and give concerts in caverns and natural
amphitheaters.
    Canyoneers, Post Office Box 2997, Flagstaff, Ariz. 86003 (602- 
526-0924), has some rowing trips along with its motorized program
from early May to the end of September. Its oar-powerd journeys last
12 days and cost $1,300, with transportation, all meals and
equipment, except camping gear.
    The National Park Service has ruled that only rowing trips are
allowed through the canyon between Sept. 15 to Dec. 15, but the
season winds down in early October.
    A complete list of river runners licensed to operate in the canyon
is available free from the Arizona Office of Tourism, 1480 East
Bethany Home Road, Phoenix, Ariz. 85014.
    
    Question: Please supply information about windjammer cruises in the
Bahamas and the Virgin Islands in the summer.
    Answer: Cruises aboard tall ships are run the year round in the
Bahamas and the British Virgin Islands by Windjammer Barefoot
Cruises. The company's Bahamas trips, which start in Nassau, are
aboard the 282-foot-long Fantome, the largest four-masted schooner in
the world. The Fantome once belonged to Aristotle Onassis. She
carries 126 pasengers and has a crew of 45. The Virgin Islands
cruises, beginning from Tortola, are on the three-masted Flying
Cloud, a 208-foot-long ship that carries 80 passengers, with a crew
of about 25. All the trips are of six days and all cost from $475 to
$650 a person, depending on cabin. The price includes all meals, wine
with dinner and fruit drinks.
    For the Bahamas, sailings for an Out Islands cruise are on the first
and third Monday of the month, ending on Saturday in Freeport. The
ship visits Abaco, Eleuthera, Chub Cay and Gorda Cay. A Bahama Banks
trip leaves every second and fourth Monday from Freeport and ends on
the Saturday in Nassau. The route includes Bimini, Great Harbour Cay
and Gun Cay.
    The Flying Cloud's Drake's Passage cruise to the British Virgin
Islands is on the first and third Monday of the month, beginning and
ending (on Saturday) in Tortola. Cooper Island, Drake's Anchorage and
Jost Van Dyke are on the route. The Treasure Isles tour on the Flying
Cloud leaves Tortola on the second and fourth Monday, returning to
the island on Saturday. It goes to Norman Island, Salt Island and
Virgin Gorda.
    Windjammer Barefoot Cruises also operates cruises under sail to the
West Indies. Its address is Post Office Box 120, Miami Beach, Fla.
33119 (305-373-2090 and 800-327-2600).
    Another company that runs windjammer cruises, but only in the United
States and British Virgin Islands and only from November through the
end of April, is Dirigo Cruises, 39 Waterside Lane, Clinton, Conn.
06413 (203-669-7068). Its six-night trips are aboard the Harvey
Gamage (30 passengers) and the Rachael & Ebenezer (21), which both
depart from Charlotte Amalie, St. Thomas, every Sunday. The fare is
$535 a person, all meals included.
    
     Readers are invited to send written questions about travel to Q&A,
Travel Section, The New York Times, 229 West 43d Street, New York,
N.Y. 10036. Questions may be answered only through the column, not by
mail or telephone.
    
nyt-02-06-85 1115est
n021  0828  06 Feb 85
BC-THEATER-REVIEW
('3 Guys Naked from the Waist Down')
By FRANK RICH
c.1985 N.Y. Times News Service
    NEW YORK - The three guys in ''3 Guys Naked from the Waist Down,''
the new musical at the Minetta Lane, never go naked - but they often
do seem to be jumping out of their skins. In this portrait of three
stand-up comics, the performers are forever clowning, running and
singing at the highest imaginable pitch; such is the show's voltage
level that a fast descent down a fire pole can almost qualify as an
introspective moment. But the riotous activity, while dizzying, is
rarely aimless. When we catch our breath, we realize that the young
talents behind ''3 Guys'' are trying to bring fresh forms of
stylistic vitality to the musical.
    While that attempt proves quixotic, there's exhiliration to be found
in the wild, go-for-broke risks taken and the sporadic battles won.
This is a show in which nearly every scene is either a rhymed rap
recitation or a mock-burlesque sketch, in which realistic events
dissolve suddenly into phantasmagoric comic japes, in which the cast
gets about by stylized, leapfrogging movement rather than by
conventional means of walking or dancing. The show's creators - the
composer Michael Rupert, the librettist-lyricist Jerry Colker, the
director Andrew Cadiff, the choreographer Don Bondi - are bursting
with daring ideas about how to do musicals even when the musical
they've actually done settles for the banal.
    At first ''3 Guys'' promises sophisticated content as well as style.
Much like Trevor Griffiths' play ''Comedians,'' it begins as an
exploration of the sado-masochistic psychodynamics of comedy and its
practitioners. The title (and only) characters, whom we meet at
various Manhattan comedy clubs, are battle-scarred alumni of the
1960s who want to channel their personal alienation into a new,
dangerous comic vision that will prick both the ''establishment'' and
the ''kids in video bliss.'' While the comics are lonely and hostile
misfits, they are paradoxically driven to confront and entertain the
very audiences they despise.
    The smoothest of the trio is Ted, a mock hipster of the David
Letterman school, played with brash charm by Scott Bakula. Phil
(Colker) is a law-school dropout and self-described ''angry guy''
who, in a particularly unnerving song, remakes his sour offstage
existence into palatably nasty shtick for public consumption. Kenny
is a beatific-looking mime fond of loony gags about death and
dismemberment: as embodied by John Kassir, an endlessly gifted clown
who could be Harpo Marx's ghoulish kid cousin, he is a dark,
subverbal genius whose anomic, untethered personality is
frighteningly indistinguishable from his surreal stage persona.
    Act I is so hard-driving that we feel as disoriented as Kenny. The
boundary that separates the comics' neurotic behavior from their
savage routines blurs kaleidoscopically - an effect heightened by
both the jittery stream-of-consciousness structure and by the
projections that define Clarke Dunham's all-purpose nightclub set. At
any given moment, we can't be sure whether the characters are trying
to kill an audience or themselves. But for all the comics' rebellious
mockery of showbiz superstardom, they soon unite to form a ''Marx
Brothers-Ritz Brothers-Three Stooges type of team'' suitable for
prime time. Softening their language and making their work
''accessible,'' they travel to Hollywood hoping to ''conquer the
world.'' Instead, they sell out to a moronic situation comedy about
undercover detectives in drag.
    As the three guys are corrupted, so is ''3 Guys.'' In the moribund
second act, we no longer see the characters' conflicts from within:
the comics become pawns in a kneejerk morality play about the evils
of fame and homogenized mass culture. Each character's fate, happy or
tragic, is announced rather than dramatized - with embarrassing
results. The angry Phil is suddenly transformed into a well-adjusted
family man by means of a single, treacly song. In a painfully
overreaching finale, the career disillusionments of bold comics
everywhere are glibly attributed to the national calamities that
followed the Kennedy assassination.
    It's Colker who most lets the evening down. Besides being the least
interesting of the performers, he is an erratic writer. If his lyrics
are proficient and sometimes clever, they too often stumble into the
cryptic or homilitic. His book not only reduces initially specific
characters to generic archetypes, but also muffs the essential task
of making the comics' pre-Hollywood material as funny and ''over the
edge'' as claimed. The comics' unexpurgated routines recall the likes
of an Albert Brooks or Andy Kaufman only when Kassir, an experienced
new-wave comic, gives full vent to his grotesque fantasies.
     Rupert, who has previously been known as a musical-comedy
performer, shows strong promise as a theater composer. His music can
be melodic and rhythmically surprising; it receives an added surge of
vitality from Harvey Aronson's on-stage band and the rock-jazz
arrangements of Michael Starobin (who orchestrated the last musical
in which Rupert appeared, ''March of the Falsettos''). Like the
whirlygig staging, the score manages to metamorphose stand-up comedy
into other, unexpected forms of theatrical energy - so much so that
the show's imaginative pulse keeps throbbing well after the show
itself has expired. One leaves ''3 Guys'' exhausted and disappointed,
but dying to see what its inventive creators will be up to next time.
    
nyt-02-06-85 1127est
n999  0929  06 Feb 85
. . .to the anxiety of all.
    ''It's very troubling, isn't it?'' said Glynis Figueredo, a
35-year-old receptionist. ''We don't know what's going to happen. I
always have the feeling something is being held from us.''
    Tuesday morning, as on every Tuesday morning, the band of the First
Battalion, the Queen's Regiment, reassuringly played ''The Great
Little Army March'' as residents gathered to watch the snappy
changing of the guard in front of the Convent, the offices of the
military governor here.
    Around them were the trappings of a society that at times seems more
British than Britain itself. There is a main street called Main
Street, as well as Horse Barrack Lane and Eliott's Way. There is a
Garrison Theater are maintained by the 2,000-man garrison under orders from
Winston Churchill in fulfillment of a legend that the British will
stay as long as the apes do.
    But perk up an ear on the streets, listen to families and even the
black-helmeted bobbies and blue-suited businessmen speak among
themselves, and the words are not English at all. The language that
many Gibraltarians, who overwhelmingly profess revulsion at becoming
Spanish, use to speak among themselves is ... well, Spanish.
    The architecture here is mostly Spanish-inspired, with wrought iron
balconies, and Tuesday morning a minicar backed up the honking
traffic down the town's remarkably narrow streets as a family stuffed
a huge suitcase into the trunk, a typical Spanish scene. Four-fifths
of the people are Roman Catholic, the government reports.
    It is a hybrid culture largely founded by the Moors, built by the
Spaniards, conquered by the English in 1704 and fleshed out by the
Genovese and the Jews. But Spanish culture remains pervasive because
of intermarriage and economic ties with the fronting Spanish town of
La Linea until Franco shut the border in 1969 in the last, vain siege.
    A young political activist, asked over capuccino in an Italian
gelato shop if he favored integration with Britain, responded
indignantly: ''We are not British. We are Latin by temperament. Why
should we be subject to British laws and morality, like permitting
divorce?''
    Behind that sentiment is a frustrating recognition here that
Gibraltar's interests are not Britain's. But at the same time, many
Gibraltarians feel they have little say in the crucial negotiations
with Spain.
    At four minutes past midnight Tuesday morning, their world changed
when the governor of Cadiz, Mariano Baquedano Ortega, unlocked the
big iron gates at the border and thousands of people joyfully shoved
through both ways. The border had been open to limited foot traffic
for nearly 18 months.
    ''It only goes to show on a human level how the people of Gibraltar
and La Linea get along well together,'' said Freddie Vasquez, a
27-year-old Gibraltarian who was the seventh to cross, driving with
champagne-drinking friends in a car draped with a Gibraltarian flag
and posters saying the likes of ''Hello, Mum.''
    The only incident was the burning of five parked cars in La Linea,
but it was a black reminder. The agreement opening the border also
calls for the negotiations on sovereignty and gives Spaniards such
European Common Market rights as buying property here, even though
Spain is just negotiating to enter the market.
    The British governor, Adm. Sir David William, repeated in a
statement what he called his government's ''solemn and unequivocal
undertaking'' to follow Gibraltarian wishes, but trust here in the
British runs thin. In the last three months, the government of Prime
Minister Margaret Thatcher has dealt an economic blow by
denationalizing the shipyards that are the main private source of
jobs and has reversed itself by agreeing to even talk on sovereignty.
    ''We all know in our heart of hearts that the negotiations are a big
manipulation,'' said J.E. Triay, a 53-year-old barrister. nn
    
nyt-02-06-85 1228est
n027  0931  06 Feb 85
BC-GIBRALTAR Addatend
NYT GIBRALTAR: 53-year-old barrister.
    A politician who has risen on public fears is Joe Bossano, the
leader of the 6,000-member General Trade Workers Union and the
Gibraltar Socialist Labor Party. In elections last year, Bossano led
the party from one seat to seven seats in the local Parliament,
challenging the eight seats and nearly unbroken leadership since
World War II of Chief Minister Sir Joshua Hassan and his Gibraltar
Labor Party and Association for the Advancement of Human Rights.
    Bossano, who says he is fighting to preserve the character of the
peninsula and the jobs of his members, opposes giving Spaniards any
rights at all and has threatened to lead an independence movement.
    Opponents of Bossano accuse him of being a leftist opportunist. Sir
Joshua counterattacked last week, saying, ''You haven't got
experience, and I hope you will not have it in a long time.''
    
nyt-02-06-85 1230est
n028  0940  06 Feb 85
BC-CRACKDOWN-WASTE
(Newhouse 001)
By KATHRYN KAHLER
Newhouse News Service
    WASHINGTON - Concerned about widespread violations of the nation's
hazardous waste law, federal environmental officials are cracking
down on companies that dispose of their toxic waste at their own
facilities.
    In the next six weeks, the Environmental Protection Agency will
target 10 to 15 of the largest companies that dispose of waste
on-site and mount an ''aggressive investigation'' to determine how
closely they are abiding by the Resource Conservation and Recovery
Act.
    The law was passed by Congress in 1976 to prevent future abandoned
dumps like those being cleaned up under the Superfund program.
    EPA's senior enforcement counsel, Richard Mays, says the agency is
expanding its hazardous waste enforcement efforts to on-site
disposers because ''it's not their principal business. The incentive
for non-compliance is greater in this type of operation. ... We
expect to see significant problems.''
    Previously, EPA enforcement efforts have been concentrated on the
large commercial firms that store and dispose of other companies'
hazardous waste. These commercial firms were more visible, and EPA
decided to focus on them after the law was enacted, officials says.
    But those commercial waste firms represent only 7 percent of the
4,800 facilities across the country that treat, store, or dispose of
toxic waste, according to a recent EPA study. A full 85 percent of
the companies are privately owned. Public facilities, such as
landfills owned by municipalities, account for about 8 percent of the
disposal facilities.
    According to the EPA study, 2,320 companies dispose of all their
waste at their facilities, while an additional 3,074 combine on-site
disposal with some shipments to commercial operations.
    EPA estimates that the country generates 290 million tons of
hazardous waste each year, with more than 70 percent of it coming
from the chemical industry.
    In selecting the on-site disposers, EPA will look at the kind of
waste the company generates and the volume. EPA officials say they
are particularly concerned about the potential for groundwater
contamination and will make that a factor in singling out companies.
    If serious violations are found, EPA will require the company not
only to correct the violations, but establish a long-term monitoring
program to be sure they do not recur.
    Two months ago, EPA officials negotiated a precedent-setting cleanup
agreeement at the country's largest commercial hazardous waste
disposal company.
    In addition to requiring quick cleanup of chemicals, the agreement
also forced the company, Chemical Waste Management Inc., to hire an
outside consultant to evaluate the company's waste management
practices at its Emelle, Ala., plant. Findings from the independent
review will be forwarded directly to EPA and the company's
headquarters in Oak Brook, Ill.
    That agreement will be a model for forcing other large industrial
polluters and waste management companies - including the on-site
disposers - to comply with federal hazardous waste laws, Mays says.
    ''We want to look behind the violation and address the cause of the
problem,'' he says. ''They will have to address the way they are
doing business. I think there's a good chance they will be forced to
hire outside consultants much like one hires a (certified public
accountant) to get an objective review of financial accountability.''
    Mays says the companies should be selected within a month. After
that, a series of inspections will be made.
    ''If we can make companies focus on environmental compliance not
just as a necessary evil that they must spend money on, but as a
socially and economically beneficial activity on their parts, we will
go a long way toward achieving a desireable and highly effective
result,'' Mays says.
BJ END KAHLER
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1239est
n029  0941  06 Feb 85
BC-NYT-BUDGET-06-HOME
    Attn Lifestyle Editors:
    We will move the following items from The New York Times Home
Section of Thursday, Fe. 7:
    
    New York -- SERIAL -- Serial marriage, the growing tendency of
people to marry two, three or more times, can create legal, financial
and psychological problems for couples and their children. By Andree
Brooks.
    
    New York -- DESIGN -- John Russell assesses Authentic Decors, a book
of historic interiors.
    
nyt-02-06-85 1240est
n030  0950  06 Feb 85
PM-SOCCER
(Sports)
By ALEX YANNIS
c.1985 N.Y. Times News Service
    NEW YORK - While the Cosmos are struggling to finish the indoor
season and prepare for the North American Soccer League outdoor
season this summer, the NASL is trying to make certain there is an
outdoor season.
    Ted Howard, the league's director of operations, acknowledged
Tuesday that the league was contemplating not playing for a year to
build a stronger organization.
    ''It's an outside possibility,'' Howard said. ''The people in the
league are looking at it as the last alternative.''
    ''We'll try to keep a base with a few teams,'' he said, ''and keep
it alive.''
    Howard said the league would be willing to stage a season this
summer if it could get six teams.
    Clive Toye, the president of the NASL, refused Tuesday to disclose
how many franchises had made a firm commitment to the NASL for this
summer, saying he wanted to talk to all the owners first. But other
sources familiar with the league's situation say only four teams -
the Cosmos, the Minnesota Strikers, the Toronto Blizzard and the
Tulsa Roughnecks - are considered likely to play.
    When asked about the possibility of taking a year off, Toye would
say only that he would meet with the owners ''to discuss the future
of professional soccer.''
    ''If it means structuring a new league,'' Toye said, ''we wouldn't
exclude that possibility.''
    However, Giorgio Chinaglia, the president of the Cosmos, said he
believed it would be a mistake to take a year off, ''because if you
go dormant, you're finished.''
    ''I want an NASL this season,'' Chinaglia said.
    But he added, ''I'm really not concerned what everybody else does,
I'm only concerned about the survival of the Cosmos.''
    Chinaglia was quick to point out that if the NASL failed to play a
season this summer, the Cosmos would continue to play matches against
foreign teams, which have attracted the largest crowds to Giants
Stadium in recent years. Chinaglia said he had a minimum of 15 dates
- from the end of May until September - already set for games at the
stadium.
    Chinaglia contradicted Toye by saying that the future of the NASL
would be decided by himself and Joe Robbie, owner of the Minnesota
Strikers. Chinaglia said he would meet ''later this week'' with
Robbie, who also owns the Miami Dolphins of the National Football
League, and try to make a decision on the fate of the league.
    Chinaglia, Robbie and Karsten Von Wersebe, the chairman of the
Toronto Blizzard, form the league's executive committe.
    There is no love lost between Toye and Chinaglia. In 1977, Chinaglia
used his influence with Steve Ross, chairman of Warner
Communications, which owned the team, to have Toye dismissed as
president of the Cosmos.
    Toye showed his irritation toward Chinaglia Tuesday when he said:
''What happens to the Cosmos will be decided by the sensible owners
who are in good standing.''
    Toye also said the Cosmos were not one of the teams that had posted
$150,000 as a performance bond for the outdoor season. The Cosmos are
currently struggling financially in the Major Indoor Soccer League,
and have had to draw from a $250,000 letter of credit deposited with
the league to pay their players.
    The Cosmos are trying to generate income by selling their most
valuable commodity, Roberto Cabanas, to America of Cali, one of the
top teams in Colombia. That sale could be completed Wednesday, and it
is expected to bring the Cosmos anywhere from $500,000 to $1 million,
funds that will constitute the bulk of their budget for the outdoor
season.
    ''I'm flying to Cali tomorrow to finalize the deal,'' said Peppe
Pinton, the managing director of the Cosmos. Last Saturday, he said
he and Chinaglia were flying to Colombia the next day, but they did
not.
    Pinton said that they decided at the last minute not to go to
Colombia because they needed to work out their financial problems
with the MISL.
    
nyt-02-06-85 1249est
n031  1000  06 Feb 85
BC-BEATRICE 2takes
(Newhouse 002)
(Note to editors: Christopher Jensen is the automotive writer for the
Cleveland Plain Dealer)
By CHRISTOPHER JENSEN
Newhouse News Service
    CHICAGO - When Mario Andretti's bright-red racing car makes its
appearance later this year at the Indianapolis 500 and other events,
the name ''Beatrice'' will be splashed across its flanks.
    Beatrice is neither Andretti's wife nor mother. Beatrice is not
anyone's beloved lady, but a hungry, multinational conglomerate with
assets of about $10 billion that is beginning what is thought to be
the most expensive auto racing sponsorship by any U.S. corporation.
It is one of a series of calculated corporate moves which company
officials hope will result in making Chicago-based Beatrice Cos. Inc.
a world-class competitor in food and consumer products.
    While Beatrice officials balk at disclosing their financial
commitment, other sources have estimated the company will spend about
$80 million on racing promotions over the next several years. That
money will go for a 3-year Indy sponsorship for the team owned by
actor Paul Newman and Chicago businessman Carl Haas and a 5-year
sponsorship in Formula One racing with former World Driving Champion
Alan Jones of Australia.
    While that sounds like a lot of money to be spending on racing,
James L. Dutt, Beatrice chairman and chief executive officer, thinks
it is a good deal. He says a careful evaluation shows the Indy
arrangement is an extraordinarily cost-effective way of promoting the
company, particularly when one considers that ABC charged $1 million
a minute for advertising during last month's Super Bowl.
    In the fiscal year ending Feb. 28, Beatrice expects to spend about
$760 million on advertising, according to a corporate spokesman. It
is all part of an enormous international program Dutt started about
two years ago to reform Beatrice, a formerly low-profile, sprawling
conglomerate, which then owned about 400 companies scattered
throughout the country.
    Its products included Swiss Miss cocoa, La Choy oriental foods,
Ekrich sausage and lunch meats, and Tropicana fruit juices.
    The old Beatrice had operated in a decentralized fashion, allowing
its various companies to do business largely on their own, competing
mostly on a regional basis. Critics say it was an inefficient
operation in which different Beatrice companies sometimes competed
with each other.
    Dutt, 59, said recently that the basic problem was that Beatrice,
with so many companies in many different industries, was difficult to
manage and not organized for national growth.
    ''Beatrice over the years has primarily been a regional company with
very strong regional brands,'' he said. ''What we are doing is
putting them together and giving them a national or international
image, so they can compete with anybody.
    ''My goal for the new Beatrice is to make it the premier marketer of
food and consumer products on a worldwide basis,'' making it
competitive with such giants as General Foods.
    Dutt started with Beatrice in 1947, working part time. He made his
way up through its dairy and soft-drink operation, including being
the manager of the Dayton, Ohio, dairy plant in 1961. After he became
chairman in 1979, he began a lengthy analysis of Beatrice and
concluded that there had to be drastic changes.
    ''We recognized the fact that the markets were changing our ability
as a decentralized company to respond to various needs in the
marketplace,'' Dutt told financial analysts in New York earlier this
year. ''Our inability to respond to the needs and to react
competitively to other national companies caused us great concern.''
    Beatrice, named for Beatrice, Neb., where the company got its start
in 1894, has gotten leaner in the past two years: It has sold more
than 30 companies, has reorganized from 430 total business units to
28, and has reduced its advertising agencies from 140 to 10.
    Dutt feels Beatrice took a major step forward last year when it
spent about $2.8 billion to acquire Esmark Inc., which includes Avis,
Swift and Co., Hunt-Wesson, International Playtex Inc., Max Factor
and Co. and Halston Enterprises.
    The publicity campaign is the second general part of forming the new
Beatrice.
    ''Over the years, Beatrice has been better known by its brands than
by its corporate identity,'' said Dutt. ''A year ago, we were
virtually unknown.''
    New television ads, which feature the tagline ''Beatrice: You've
known us all along,'' are aimed at getting consumers to recognize the
Beatrice name as what Dutt refers to as ''a stamp of quality.''
    The motor sports campaign with Andretti and Jones will continue that
advertising function. Millions of Americans will see the ''Beatrice''
name on Andretti's car at the Indianapolis 500 and other racing
events.
JM (MORE)
    
nyt-02-06-85 1300est
n032  1004  06 Feb 85
BC-BEATRICE 1stadd
(Newhouse 003)
Jensen - CHICAGO X X X events.
    Dutt said of equal importance is the value of the racing program for
promotional activities with customers and for generally building a
company spirit among all Beatrice employees.
    Last year, Andretti was sponsored by Budweiser, which sources say
paid a then-record $2 million to the Newman-Haas team. This year,
Beatrice is reportedly paying $4.5 million to have the
Andretti-Newman-Haas combination. About $9 million is being spent in
1985 on starting the Formula One team. And those figures will grow in
future years of the promotion contract.
    Will Dutt's ambitious program work?
    ''It is going to be two or three years before you really know for
sure,'' says Roger Spencer, a Chicago-based analyst with the
investment firm of Paine, Webber, Jackson and Curtis. ''The test will
be will they be able to build market share, will they be able to roll
out new products? Will they have good market shares in their major
lines when all this is done?
    ''This is going to evolve. This is like monkeys coming down from a
tree and turning into humans.''
    The process will also test the patience of Beatrice stockholders,
says Spencer. ''This is going to take a while ... but they are on the
right track and they are putting a lot of bucks behind it and they
have hired a lot of very capable people.''
JM END JENSEN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1303est
n033  1009  06 Feb 85
BC-CORNELIA-WALLACE
(Newhouse 004)
(Note to editors: Bill Sellers is a staff writer for the Mobile
(Ala.) Press-Register)
By BILL SELLERS
Newhouse News Service
    ELBA, Ala. - Former Alabama first lady Cornelia Wallace is ''ready
to get my life back on the high road again'' after being released
from a state mental hospital where she had spent six weeks for
treatment.
    Relaxing at the home of a relative here, the 44-year-old former wife
of Gov. George C. Wallace says she still is unsure of the diagnosis
of her problem, ''but I've been under a tremendous amount of
emotional stress for several years.''
    She says that ''stress precipitates of lot of these things, but I
don't think you would understand (the problem) if I could tell you.''
    Mrs. Wallace was committed to Searcy Hospital in Mount Vernon, Ala.,
Dec. 14 by Coffee County Probate Judge Marion B. Brunson, who was
acting on a petition filed by Cornelia Wallace's mother, Mrs. Ruby
Folsom Austin, and her brother, Charles Ellis Jr., both of Elba. She
was released last Friday.
    Mrs. Wallace says her hospital stay was ''not a pleasant
experience'' but that ''the people there were real nice to me.''
    She says doctors have assured her that she can ''stay well as long
as I take my medicine - which I certainly intend to do. I will be
going to the University of Alabama Hospital in Birmingham in a few
days to have my medicine checked and then start planning to get back
down to Florida.'' She has been living in Florida since she and the
governor were divorced in 1978.
    Mrs. Wallace was at her former husband's side when he was the target
of an assassination attempt in Laurel, Md., in 1972 while he was
running for president. Mrs. Wallace qualified to run for governor in
1978, but later withdrew, citing a lack of financial support as well
as Wallace's refusal to endorse her.
    Mrs. Wallace was arrested in 1981 in Opp, Ala., while driving a
truck that had been reported stolen in Elba. No charges were ever
filed and her uncle, former Gov. James ''Big Jim'' Folsom, said at
the time that his niece had ''a nervous spell.''
    Just over a year ago, Mrs. Wallace spent four days in a Fairhope,
Ala., hospital for treatment of intense headaches.
BJ END SELLERS
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1309est
n034  1019  06 Feb 85
BC-SCOUTING Undated
(Sports)
c. 1985 N.Y. Times News Service
    For years, the Minnesota Twins have been scorned as an anachronism
in the world of big-business baseball. They were the last team in the
big leagues owned and operated by one family without fortune or
outside means of support. A team that developed young stars, but
could not keep them from leaving as free agents. A team on the verge
of collapsing or moving.
    But, in the last few months, the Twins have revived mightily. Calvin
Griffith and his family sold them to Carl Pohlad, a Minneapolis
businessman who will keep them there. The Twins, fifth in the
American League West in 1983, rose to second place in 1984,
contending for the division title until the final week. Then they
sold 4,500 season tickets for 1985, breaking the club record set 17
years ago. And now, the surest sign of success, they have hired an
advertising agency.
    ''We haven't had an agency in six years,'' Don Shields, the team's
vice president for marketing, said in a telephone interview. ''But we
are a young, aggressive, exciting baseball team, and we want
everything to reflect that fact.
    ''Do we need a new logo? New stationery? New brochures? We haven't
developed an overall corporate strategy or decided on an advertising
budget yet. But I wanted an ad agency to take a look at everything we
have been doing in- house. So, we signed Campbell-Mithun, the largest
agency headquartered in Minneapolis.''
    ''The fans understand the problems Calvin had,'' Shields said. ''He
built a great farm system, but the family couldn't afford to keep the
players who came from it. Now, there are new resources and new life,
and the fans are tremendously excited.''
    
    If Adolfo Medel seems fearless in a boxing ring, his background
helps explain it. From the age of 6 until he was 10, Medel flew
through the air 50 feet above the ground as part of his parents'
aerial act.
    Now 20 years old, Medel has been fighting professionally for a
little more than three years, winning 22 of 23 fights, 14 of them by
knockout. On Sunday, he will take a 21-bout winning streak against
Robin Blake in Midland, Tex., in a fight to be televised nationally
by CBS.
    Larry Kent, who trained such ring champions as Sugar Ray Robinson
and George Price in the 1940s and 1950s, came out of a 24-year
retirement at age 72 to handle Medel.
    Medel, who was born in Managua, Nicaragua, became part of his
parents' aerial act, the Flying Medels, when he was 6 and toured with
them through Central and South America. The act broke up when his
father, Raul, the catcher, developed back problems.
    ''When you are that young, nothing scares you and, besides, I didn't
know anything else,'' Medel said Tuesday from his home in Sunrise,
Fla. ''I would probably be terrified if I tried it today. But there's
not much chance I'll ever go up into the air again.''
    ''He'd better not,'' said Kent. ''If he ever starts climbing a
ladder, I'll break his head.''
    
    It's more than a subway ride from the Lower East Side to Down East
Maine. But for Derek Counts, a 17-year-old New York City youth who
has been attending boarding school in Maine for the last three years,
it has been well worth the trip.
    ''I like it here,'' he said in a telephone interview recently,
noting that the Oak Grove-Coburn School with its 120 students had a
much more intimate atmosphere than his old school, the Corlears
Junior High on Henry Street, with 4,000 students.
    Counts, an honor-roll student, seems to have thrived in the
atmosphere, and not just in the classroom. Last Wednesday night, in a
basketball game against Gould Academy, he scored the 2,000th point of
his high school career, equaling a mark reached by only two other
Maine high school players.
    Counts, a point guard, learned to play basketball on the asphalt
playgrounds of the Lower East Side, then honed his game at the Pitt
Street Boys Club. He is one of three New York City youths attending
Oak Grove on scholarships provided by the Boys Club of New York.
    The 5-foot-10-inch Counts has led Oak Grove to the finals of the
state championship for small schools two seasons in a row. He also
has touched off a stampede of sorts among college recruiters in the
Northeast. And he isn't worried about his modest height. He is the
youngest of eight children and, he reports, ''We grow late.''
    
    
nyt-02-06-85 1318est
n035  1020  06 Feb 85
BC-NYT-ADVISORY-PICTURES
    Editors-Picture Service Subscribers:
    The following art is en route by mail:
    New York -- PARADE -- Can a woman lead the St. Patrick's Day Parade?
Dorothy Hayden Cudahy aims to find out. Photo. 2-6.
    New York -- STARWARS -- ''Star Wars'' research forges ahead.
Photo-drawing combo. 2-4. THE NEW YORK TIMES PICTURE SERVICE o
    
nyt-02-06-85 1319est
n036  1032  06 Feb 85
BC-ECOSCENE
(BizDay Commentary)
The Economic Scene
By ROBERT D. HERSHEY Jr.
c. 1985 N.Y. Times News Service
    WASHINGTON - If anything is as powerful as an idea whose time has
come, it is probably the mythology encrusting an idea that is passe.
Last fall, in the face of 12-digit budget deficits, President Reagan
found himself forced to promise that, while almost everything else
would be slashed, not a penny would be cut from Social Security - not
even from future benefits. It was a clear demonstration of the extent
to which elderly Americans have come to occupy a special place in the
national psyche.
    There was a time, 20 or 30 years ago, when the elderly were, in
fact, worse off as a group than younger people and were the subject
of legitimate, solicitous concern.
    Since then, however, various benefits for the elderly have increased
so much that their poverty rate is now actually lower than that of
the rest of the population. Their incomes have more than kept up with
inflation over the last 15 years, while those of people who live on
wages and salaries have fallen behind it.
    Yet the notion persists that the typical older American is someone
to be pitied. He or she, according to the stereotype, is likely to be
not only suffering from loneliness and expensive illness but also
living on a ''fixed'' income, invariably deemed inadquate for a
decent standard of living.
    Of course, many elderly people are still poor, but familiar tales of
old women existing on cat food appear to have been greatly
exaggerated. On the whole, figures show, people over 65 no longer
have a bum deal.
    The annual report of the President's Council of Economic Advisers,
just issued, makes a major effort to dispel some of the myths.
Although it amounts to a defense of the administration's plans to
save money on such programs as Medicare, Medicaid, Federal pensions
and subsidized housing of particular benefit to the elderly, it is
also a serious and important piece of analysis. Policy makers need to
consider the prospect that in 35 years the entire country is expected
to have the same percentage of people over 65 as Florida has today.
    Although there is unceasing debate over how to carve up the national
economic pie, there is no doubt whatever that the elderly have made
huge gains.
    Between 1950 and 1983, for example, median annual wages and salaries
rose 451 percent, while the average monthly Social Security benefit
jumped 905 percent, more than twice as much. The Consumer Price Index
during this period rose 312 percent.
    Since 1970, income levels of the elderly climbed relative to the
rest of the population because Social Security benefits rose 46
percent, after adjustment for inflation, while the buying power of
people earning wages and salaries fell 7 percent. ''Younger families
have had to work more to keep up with inflation,'' the report says.
''Older families have not.''
    The error of equating old age with a low standard of living becomes
still more evident when factors other than cash income are
considered. About two-thirds of the elderly, for example, pay no
income tax. The poorest receive a 15 percent credit against tax
liability, while people over 65 get a $1,000 exemption and those over
55 get preferential tax treatment on the capital gain from a sale of
one principal residence.
    Nearly three-quarters of elderly householders own their own home,
half of them without a mortgage. And in spite of lower poverty rates,
the elderly are more likely to get at least one type of means-tested
benefits than other people. When the market value of food stamps,
housing aid and medical benefits is counted, the 1983 poverty rate
was found to be only 3.3 percent.
    The report from the Council of Economic Advisers also rebuts the
notion that the elderly suffer more from inflation than the rest of
us. This ''common perception,'' it says, ''is not supported by recent
evidence.''
    Nor have most of the elderly been forced to retire because of poor
health or mandatory retirement laws.
    Nonetheless, the relative prosperity of the aged - many of them
continue to save and accumulate more assets - is far from uniform.
Blacks and the very old are more likely than others to be poor.
    Over all, financial hardship among the aged is less a matter of
growing old than a result of the factors that lead to low incomes at
any age - education, for example, or work history. The main exception
to this is elderly women who are widowed or divorced and who have a
remarriage rate only one-seventh as high as elderly men.
    But the Social Security system is a great leveler. Some people
complain that Social Security taxes are regressive and unfair because
the poor pay a higher proportion of their incomes than the rich. But
the benefits are highly progressive, with the poor getting a better
return on their investment than the rich.
    Activists for the elderly, quick to denounce the budget cuts being
proposed this week, seem to recognize that some myths are being
challenged. ''There is the perception among a growing number of
Washington policy makers that older Americans are well off,'' the
American Association of Retired Persons said in a statement last
month. ''This,'' it insisted, ''simply is not the case.''
    The battle has now been joined.
    
nyt-02-06-85 1331est
n037  1041  06 Feb 85
BC-LANGUAGE 2takes
(Newhouse 005)
(Note to editors: Kathy Hulik is a reporter for the Ann Arbor (Mich.)
News)
By KATHY HULIK
Newhouse News Service
    ANN ARBOR, Mich. - W.T. ''Bill'' Rabe is a leader of the Unicorn
Hunters of Lake Superior State College, the worldwide membership of
which each year issues its ''Dishonour List of Words Banished From
the Queen's English for Mis-, Mal- or Overuse as Well as General
Uselessness.''
    ''It started out as a gag,'' Rabe explains. ''Then it became a
crusade. Most of our examples should be corrected.''
    This year's list leads off with ''mandate.'' One reason: Politicians
use ''mandate'' to overstate justification for their actions or
proposals. ''Mandate'' could mean ''I've had two long phone calls on
this subject.''
    Under a special edict, the Unicorn Hunters also ordered repossession
of the apostrophe, which has been ''misemployed to indicate
unauthorized plurals. ... If we allow this desecration of the
apostrophe, what can we expect of the colon, the hyphen, the bracket
or the dieresis?''
    Indeed.
    The Hunters didn't start out as word watchers. They were born, says
Rabe, who is director of college relations at Lake Superior State
College in Sault St. Marie, Mich., because he wanted a way to let
people know the four-year college was more than a technical school.
    Along with faculty member and poet-in-residence Peter Thomas, Rabe
came up with the idea of a poets' fortnight to commence on
Shakespeare's birthday. The sponsors adopted the whimsical name
Unicorn Hunters.
    At first the Hunters held the poets' fortnight, burned a snowman on
the first day of spring and engaged in other such projects benefiting
all mankind. Then, at a New Year's Eve party in 1975, a group of the
assembled Hunters began discussing words, particularly ''at this
point in time,'' a phrase much used by Watergate witnesses.
    The next morning, when Rabe awoke, he found on his nightstand a list
of words the Hunters had gathered. Being the good publicist he is, he
called the wire services and offered them a story based on the list
of banished words.
    The rest, as they say, is history.
    Now he has a poster printed each year with the current offenders, as
well as a summary poster of banishments from 1976 to 1985.
    Because he was getting so many suggestions - ''Everybody has a
word,'' he scoffs - he declared a nominating season which runs from
Nov. 15 through Dec. 15.
    This year's nominations, 3,000 in all, came from places as far away
as Japan and Saudi Arabia.
    Rabe has student assistants sort out the nominations and eliminate
the illegible or obscene. ''There are always several writers obsessed
with what homosexuals did to the word 'gay,''' he says. ''These are
automatically discarded. Then there are the nominations for phrases
like 'It's the pits,' nominated by a man because his name is Pittz.''
    Rabe wants nominations that are accompanied by reasons for
banishment. Just lists of words are no good.
    The Word Banishment Committee of the Unicorn Hunters meets on New
Year's Eve, the list Rabe has prepared is passed around and
discussed, and final selections are solemnly made.
    This year's list includes symbol banishments (the international
''prohibited'' road sign of a circle with a line through it, and
hearts meaning ''love'').
    Another category is labeled the ''Self-Contained Reversing Verb,''
such as off-load, up-tick and debrief.
    There was ''enclosed please find,'' on which the nominator
commented, ''If I can't find it myself, then I shouldn't be allowed
to receive letters.''
    The criteria for banishment are many.
    Misuse - ''The use of podium when the speaker means lectern,'' Rabe
explains. ''What they mean to say is someone is on the podium behind
the lectern.''
    Repetition - '''Have a nice day' has lost all its meaning,'' he
says. ''If you must use cliches, use Shakespearean ones.''
    Embellishment - ''Bureaucrats are especially susceptible to this,''
Rabe says. ''An elevator is called a 'vertical access device.'''
RB (MORE)
    
nyt-02-06-85 1340est
n038  1048  06 Feb 85
BC-REVIEW-''HEAVEN''
(Newhouse 007)
Film review, for use when ''Heaven Help Us'' opens at local theaters
By RICHARD FREEDMAN
Newhouse News Service
    (UNDATED) The few joys and many pains of growing up Catholic in
Brooklyn in 1965 are evoked in ''Heaven Help Us,'' about a handful of
boys at St. Basil's parochial school.
    This is the all-but-vanished world of bubblegum and baseball cards,
of demerits and ''David Copperfield,'' of tie clips, egg creams,
petty crimes and major punishments.
    It is more or less overseen by headmaster Brother Thadeus (Donald
Sutherland), in his droopy-eyed wisdom, who gives the impression of
having seen it all; sadistic classroom disciplinarian Brother
Constance (Jay Patterson); humane, regular-guy Brother Timothy (John
Heard); and bald, maniacal Father Abruzzi (Wallace Shawn), who gives
a pre-prom hellfire sermon designed to dampen the most ardent
adolescent libido before the band even starts playing.
    But mostly it's the handful of boys who count - and they are indeed
a handful.
    Pudgy class wimp Caesar (Malcolm Danare) is determined to get to
Harvard to study psychology, but meanwhile he must wear on his nose
the wad of gum he's been caught chewing in class (it doesn't help his
cause any that he corrects his teacher's grammar).
    Impudent Rooney (Kevin Dillon, Matt Dillon's younger brother),
fancies himself class wiseguy and stud, baiting Caesar for his
dubious sexuality, but winding up himself, after flunking Beauty
School, as a hairdresser's assistant.
    Most important, though, is Michael (Andrew McCarthy), designated for
the priesthood by his devout, chain-smoking grandmother.
    But Michael falls in love with the gravely beautiful, non-Catholic
Danni (Mary Stuart Masterson), who effectively runs the neighborhood
candy store because her father suffers from melancholia.
    And the candy store - where the student body of St. Basil's gathers
after hours to indulge in such forbidden fruits as drinking Cokes and
smoking cigarettes - is the special target of the Brothers' righteous
wrath.
    ''Heaven Help Us'' boasts the usual teenage escapades - a moment of
love snatched beneath the Coney Island boardwalk, a disastrous double
date, a heroic act of vandalism - as well as the peculiarly Catholic
offense of sneaking off to the movies during a papal visit to New
York.
    The first feature film of director Michael Dinner (who made Public
Television's ''Miss Lonelyhearts''), it originated as a New York
University Film School project called ''Catholic Boys,'' by writer
Charles Purpura, who certainly seems to know whereof he speaks.
    For there's nothing amateurish about this assured, often very funny
and occasionally ruefully moving account of boys being boys ... under
rather special circumstances. You don't have to be a parochial school
graduate - or dropout - to enjoy ''Heaven Help Us.''
    X X X
    FILM CLIP:
    ''HEAVEN HELP US.'' A funny, realistic account of what going to
parochial school in Brooklyn in the '60s must have been like,
starring Donald Sutherland as the headmaster, and a fine cast of
youngsters - including Matt Dillon's younger brother Kevin - as his
devout but mischievous charges. Rated R. Three stars.
JM END FREEDMAN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1347est
n039  1059  06 Feb 85
BC-CAREERS
(BizDay)
By ELIZABETH M. FOWLER
c.1985 N.Y. Times News Service
    NEW YORK - There is no bigger business in the world than the food
business, and nothing more basic.
    Gourmets think of it in terms of special cooking, manufacturers
concentrate on meeting consumer wishes and on competing with other
brands, nutritionists consider vitamins and other food values and
food science technologists work on improving food manufacturing
techniques, food chemistry and sanitation.
    A less well-known role in the food cycle is played by the food
marketer - the person who acts as the link between food producers and
manufacturers, on one hand, and the retailers who serve the consumer,
on the other.
    ''The food business has long been noted for low profit margins,''
Charles A. Mallowe said last week. He is administrator of the Academy
of Food Marketing at St. Joseph's University in Philadelphia.
    ''The food business has had little or no tradition of education,''
he continued. As a result, he said, many young people have never
thought of it as ''a unique business'' worth investigating for career
opportunities.
    St. Joseph's is not the nation's only center for a college-level
food marketing education, but there are fewer than a dozen. In fact,
Mallowe says he knows of only six other degree programs - at Michigan
State University, Western Michigan University, the University of
Southern California, the University of Massachusetts, Cornell
University and Northern Kentucky University.
    Mallowe does not worry about competition from other schools that
produce food marketing graduates, saying the nation needs even more.
''The more schools and the more knowledge of food marketing
education, the better off we are,'' he said.
    St. Joseph's University, Jesuit-operated, is a large urban
educational institution that is not very well known outside its area.
It has 2,400 students pursuing regular programs during the day and
2,000 studying at night, majoring in a variety of subjects in the
liberal arts and science division, the business administration
division, and the evening college.
    Of those totals, a relatively large number have chosen St. Joseph's
23-year-old food marketing program, with 225, mostly between the ages
of 18 and 21, in the day program and 100 attending at night. Many of
the night students hold jobs during the day.
    ''We will graduate 65 this year in the food marketing department,''
Mallowe said. ''Right now, more are signing up for the program than
ever before.'' One reason might be that the job outlook is good for
the graduates, who receive a bachelor of science degree with a food
marketing specialty.
    Perhaps the titles of the courses give a good indication of the
career aspects. Required courses include food distribution, marketing
research, principles of food marketing and marketing communication,
along with courses in accounting, management, finance, statistics and
economics. Electives include packaging, food marketing problems, food
product strategy, quantity food purchasing, food broker operations
and food service management.
    Certain liberal arts basics are required - several English
literature and writing courses, mathematics, history, philosophy and
theology, social science and a year of a foreign language.
    During the four years leading to the bachelor of science degree,
many students participate in a cooperative education program during
which they work for a company in a food marketing capacity and take
courses at the same time. Companies in the program include Thomas J.
Lipton Inc., the Pillsbury Co., the Seven-Up Co., Roy Rogers, Kraft
Dairy Group, Del Monte sales and Campbell Soup sales. There is also a
summer internship plan through which students can be employed full
time or part time by companies, and this can often lead to job offers
with the same companies upon graduation.
    Salaries offered the beginning food marketers with a B.S. degree
this spring will be $500 to $1,000 better than last year, Mallowe
estimated. In 1984, beginning salaries ranged from $12,000 to
$21,000, with the average at $18,000. This does not include benefits
such as automobiles and cash bonuses provided by some companies.
    Mallowe said that each year about 60 percent of the graduates take
jobs with food-making companies such as Kellogg, Procter & Gamble and
Campbell Soup, while 30 percent find jobs with retailers such as
A.&P., Grand Union, and Kings, a large chain with outlets in the East.
    An additional 10 percent take jobs in various other companies such
as research groups, hotel chains, airlines and advertising agencies
with food accounts. Even the wine maker E&J Gallo recruits on campus.
    
nyt-02-06-85 1358est
n040  1102  06 Feb 85
BC-NYT-BUDGET-06 Addsked
    Add N.Y. Times News Service schedule for AM's of Thursday, Jan. 7:
    
    WASHINGTON
    REAGAN - President Reagan delivers State of the Union Message at 9
p.m. (EST). By Bernard Weinraub.
    
    REAGAN-REACT - Congressional reaction and Democrats' response to
State of Union address. By Steven Roberts.
    
    AUSTRALIA - President Reagan confers with Australia's Prime Minister
Hawke. By Bernard Gwertzman.
    
    BUDGET - Rudolph Penner of Congressional Budget Office testifies
before Senate panel on budget; other budget developments. By Jonathan
Fuerbringer.
    
    FARM - Agriculture department announces emergency farm credit
program. By Seth King.
    
    ENVIRON - Senate environment panel hears testimony on nomination of
Lee Thomas as EPA administrator. By Philip Shabecoff.
    
    POLICY - Former Defense Secretary Schlesinger outlines his views on
American foreign policy goals. By Hedrick Smith.
    
    INTERNATIONAL
    Beirut - LEBANON - Twelve Israelis are wounded in two bombings in
southern Lebanon as violence rises against departing troops. By John
Kifner.
    
    Dateline to come - POPE - On plane back to Rome, pope says he sees
no need for papal diplomacy in Central America; other comments. By
E.J. Dionne.
    
    FINANCIAL
    New York - TAX-X - Part 10 of Your Taxes series; today: tax
shelters. By Gary Klott.
    
    
nyt-02-06-85 1401est
n041  1106  06 Feb 85
BC-LANGUAGE 1stadd
(Newhouse 006)
Hulik - ANN ARBOR X X X device.'''
    ''In 1982 we made Malcolm Baldrige, the U.S. Secretary of Commerce,
a 'knight sans pareil of the Unicorn Quest, with sword,' because he
wouldn't sign letters he couldn't understand that had been written in
bureaucratic phrases. He banished certain words from the department
and ordered his word processors to refuse to print them.''
    ''Experts'' - especially sociologists, psychologists and doctors -
create jargon ''so they will have to translate it for us,'' he says.
''A word like 'parenting' is so mechanical. I have no objection to
them using language like that with members of their own profession,
but they should not talk that way to real people.''
    The worst language torturers, Rabe says, are sports broadcasters and
writers (''fourth-down situation'' rather than simply ''fourth
down''), with weathermen right up there (''The current temperature
right now is ... '' and ''We have a wet-pavement situation'').
    Some new words, like ''word processor,'' he finds he likes, because
the phrase describes what the apparatus does.
    Others, like ''Reaganomics'' and ''Star Wars,'' offend his ears.
''The Star Wars proposal is not a war proposal, it's for avoiding
war,'' he says. Then his mind lurches off in a related direction, the
recent flight of the Discovery and launch of the secret spy satellite.
    ''If they wanted it to be a secret, they wouldn't have launched it
as they did,'' he says. ''What is really up there is a basketball
with a couple of waffle irons on the side, sending nothing. We're
driving the Russians crazy looking for signals. We should send up
many more of these.''
RB END HULIK
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1405est
n042  1110  06 Feb 85
BC-ADVISORY-weekend
    Editors:
    For weekend use from the Newhouse News Service:
    
    
TRANSMITTED MONDAY:
    
    RADIOACTIVE-WASTES by David Morris - John Zawacki says his nuclear
waste dump shouldn't be called a dump, but a ''nuclear waste
management facility.'' A look a the nation's largest burial ground
for low-level radioactive waste. From Barnwell, S.C. 1,200.
    
    RADIOACTIVE-CONTAM by David Morris - The industry's track record for
disposal of low-level radioactive waste: three sites closed because
of contamination problems; three sites spared major problems so far.
Undated. With ''RADIOACTIVE-WASTES.'' 450.
    
    
    TRANSMITTED TUESDAY:
    
    BURNOUT by Patrick Young - Job burnout isn't something that remains
at work. Burnouts bring their anger and frustrations home, with
unhappy and sometimes devastating results for their families. Is
burnout a contributor to teen suicides? From Washington. 1,000.
    
    
    TRANSMITTED WEDNESDAY:
    BEATRICE by Christopher Jensen - The Beatrice conglomerate's recent
establishment of what is thought to be the most expensive auto racing
sponsorship ever by a U.S. corporation is only one of a series of
calculated moves to make Beatrice Cos. Inc. a world-class competitor
in food and consumer products. From Cleveland. 1,000.
    
    
BJ END
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1409est
n043  1119  06 Feb 85
BC-TRAVEL-ISLANDS 2takes
(Newhouse 008)
Travel column, for weekend use
By JOEL SLEED
Newhouse News Service
    PROVIDENCIALES, Turks and Caicos Islands - A black ribbon of asphalt
threads 14 miles between a turquoise ocean and coral-hard flatlands
dotted with desert cactus and scrub. But this is no ordinary highway,
mind you.
    This highway spells the beginning of high times for this low-lying
and heretofore laid-back sickle-shaped speck of the British West
Indies, located in the Atlantic about 575 miles southeast of Miami.
    You see, Provo, as it is called by its 900 plus inhabitants, has
just hit the road in a big way as far as tourism is concerned with
its first paved road in the 470 years since being ''officially''
discovered by Ponce de Leon.
    The new two-lane blacktop is anchored several miles from the
northeast edge of the 80-square-mile island by the recently-opened
Club Med Turkoise. It then runs west along the coast, stopping
briefly 10 miles away at the new airport and then continues on
another few miles to Blue Hills, Provo's main village where many of
the Club's employees live.
    The reason the highway is new and the airport is new is because of
the new Club Med. In fact, they wouldn't be there if it wasn't for
the resort.
    The British government agreed to build the island's first paved road
and enlarge its lone dirt landing strip if the Club would set up
here. So Provo now has an international airport with a 9,000 foot
paved runway capable of handling medium sized passenger jets.
    After a year-and-a-half of construction, Club Med, which sprawls
over 70 acres, did put its show on the road and also on Grace Bay,
one of the prettiest pieces of blue-green water around.
    And with the opening of Club Med Turkoise, Provo, as well as the
other inhabited islands (Grand Turk, Salt Cay, South Caicos, Middle
Caicos, North Caicos, Pine Cay) making up most of the Turks and
Caicos group, have now moved into the fast lane as far as
tourism'n2;;lerned.
    According to Ariel Misick, chairman of the Turks and Caicos Tourist
Board, a 250-room Hyatt, complete with gambling casino, is just about
ready to break ground and Holiday Inn is also looking around on
Provo. While the Turks and Caicos do not now have gambling, casino
legislation has already been approved, he said, and there is also a
lot of talk by hotel groups about building on some of the other
islands.
    One of the reasons why Club Med Turkoise is having such an impact on
the islands is because with 492 beds it more than doubles the amount
of tourists all of the the Turks and Caicos presently can
accommodate. Last year, which was its best ever, the island chain
played host to 12,000 visitors, a number that Club Med alone will
probably pass by summer.
    While the Club has opened up the Turks and Caicos to tourists, the
Med hierarchy is also taking a long look at its newest facility here
- its most upscale in the Western Hemisphere and specifically aimed
at the American visitor. It is projected that 90 percent of its
guests will come from the states, 8 percent from Canada and 2 percent
from Europe.
    Built at a cost of $27 million, Club Med Turkoise ''is geared to
appeal to the pressured business person who wants to escape to a
barefoot kind of low-keyed elegance and relaxation but doesn't have
time to travel very far,'' said Serge Trigano, who is in charge of
the organization's operations on this side of the Atlantic.
    Among the features at the newest ''Americanized'' Club Med are such
things as live chamber music concerts; food-service available from
7:30 a.m. to 2 a.m.; two dining rooms, with one specializing in
seafood; a theater complex and a disco.
    All rooms are large and have double beds and ceiling fans.
    In addition there is a long and broad sandy beach, featuring all
water sports, a free-form fresh water swimming pool, two whirlpool
baths and eight tennis courts, four lit for night play. There is also
a small submarine with a picture-window bow for underwater
sightseeing.
    The sub, scuba diving and drinks from the bar have an extra charge,
while just about everything else, including unlimited wine at lunch
and dinner, and such things as tennis lessons, snorkeling and water
skiing are covered in the package.
BJ (MORE
    
nyt-02-06-85 1418est
n044  1127  06 Feb 85
BC-REVIEW-''ANTS''
(Newhouse 010)5N'ilm review, for use when ''Where the Green Ants
Dream'' opens at local theaters
By RICHARD FREEDMAN
Newhouse News Service
    (UNDATED) Having barely escaped the Amazon jungle with his life and
the film ''Fitzcarraldo,'' the indefatigable German director Werner
Herzog has ventured forth to the almost equally inhospitable desert
wastes of southern Australia to bring us - after a mere four weeks of
shooting - ''Where the Green Ants Dream.''
    Some day, one hopes, Herzog will be persuaded to make a movie in the
Luxembourg Gardens.
    For in this part of Australia, in what geologist Lance Hackett
(Bruce Spence) calls ''Purgatory South,'' the temperature regularly
hits 107 degrees, and nothing much grows except some forlorn, dusty
grass and creatures you'd rather not think about.
    But Hackett lives a lonely life in his melancholy, if
air-conditioned mobile home because he works for the Ayers Mining
Company, and they think there's heaps of uranium in them thar dust
bowls.
    Unfortunately, the aborigines prize the land, too. To them, it's
where the sacred green ants go to dream their mysterious dreams, from
which they are not to be disturbed by such diabolical modern
contraptions as bulldozers and airplanes.
    And the aborigines have been there 40,000 years; Europeans for only
200. Yet the aborigines have been dying out, and are a protected
species. The proposed mining site isn't exactly a reservation, but
the mining company must go to court to dislodge them from their vigil
over just that area where Hackett wants to dig.
    There they gravely cavort to the strains of a peculiarly repulsive
wind instrument, and gratuitously warn the thoughtful, humane Hackett
that he'll have to shoot them before they decamp. They're not so
primitive, though, that they don't covet an Air Force plane all for
themselves, although they don't quite understand what constitutes a
landing strip. When they get their plane, they use it more as a
stationary social center than for flight.
    But as an anthropologist who has been studying the aborigines with
increasing admiration tells Hackett: ''Your civilization destroys
everything, including itself.'' He neglects to mention that Hackett's
civilization also produced ''King Lear'' and the Bach B-Minor Mass.
    For like the wildly popular South African cult movie ''The Gods Must
Be Crazy,'' ''Where the Green Ants Dream'' takes a rather simplistic
Rousseauistic stance on the vexed and complex issue of
''civilization'' vs. ''primitivism.''
    And although it has its moments of mild humor - never a strong point
with Herzog, who also made ''Aguirre, the Wrath of God'' and
''Nosferatu'' - the overhwelming impression it leaves one with is a
combination of sophomoric hippie ideology that is hardly a feast for
the mind, and a visual barrenness appropriate to the landscape, but
even less a feast for the eyes.
    X X X
    FILM CLIP:
    ''WHERE THE GREEN ANTS DREAM.'' In barren southern Australia, a
geologist tries to mine for uranium in soil sacred to the aborigines.
An illustrated ecology lecture by German director Werner Herzog, who
favors primitivism over civilization. Rated R. Two stars.
JM END FREEDMAN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1426est
n045  1132  06 Feb 85
BC-TRAVEL-ISLANDS 1stadd
(Newhouse 009)
Sleed - PROVIDENCIALES X X X package.
    To ensure that guests get full benefit of the daylight, the resort
village also runs on its own time. The Club Med Tukoise clock ticks
away one hour later than the rest of the region which adheres to
Eastern Standard and Daylight Savings Time.
    While the 10,000 citizens of the Turks and Caicos, who call
themselves ''Belongers,'' look on the arrival of Club Med with
curiosity and anticipation on what the future may hold, first-time
visitors here also find the island group an enigma of sorts.
    Closer to the U.S. mainland than either Puerto Rico or the Virgin
Islands, except for divers, fishermen and some of the ''in'' crowd
aware of its splendid beaches, gin-clear water and year round
temperature ranging from the high 70s to high 80s, the Turks and
Caicos are virtually unknown to American holiday goers.
    Its name is also a puzzler. From what we gather, it was named Turks
by early settlers who likened the scarlet top on a local cactus to a
Turkish fez, and Caicos from the Spanish word for cay, cayos, an
island or reef of coral or sand.
    Making things even more international, is the fact that even though
it is one of the few remaining British Crown Colonies, with a
governor appointed by the Queen, the official legal and local tender
is U.S. currency.
    And now there is controversy over whether the explorer Ponce de Leon
really did sight the islands first in 1515, while searching for the
fountain of youth. Historians at the Smithsonian Institution and the
University of Florida suggest that one of the Caicos island probably
was Colombus' first sight of land in the New World back in 1492.
    And if you think that's confusing, what about Club Med?
    In its promotion and advertisements for its newest property, the
10th largest hotel chain in the world refers to the Turks and Caicos
''truly the secret of the Caribbean ... evoking more poetic imagery
than any other destination in the Caribbean.''
    Close, but no cigar. The Turks and Caicos can't be the Caribbeanb's
greatest secret because they're definitely in the Atlantic.
    For information on the Turks and Caicos by writing to Ariel Misick,
chairman, Turks and Caicos Tourist Board, P.O. Box 592617, Miami,
Fal. 33159.
BJ END SLEED
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1431est
n046  1145  06 Feb 85
BC-PARADE
Eds: The boldfaced words should be italicized.
By WILLIAM E. GEIST
c.1985 N.Y. Times News Service
    NEW YORK - Mrs. Cudahy's teacups are delicate, fine bone china in a
dainty floral pattern - a lot more durable than they look, she noted,
and just as Irish as could be, made in Ireland and sporting a pattern
called ''All the Flowers That Bloom in Ireland.''
    Dorothy Hayden Cudahy is a soft-spoken Irish grandmother from Queens
who wants to be grand marshal of the St. Patrick's Day Parade, and
she wants to be the grand marshal of the paradenow.
    Mrs. Cudahy would be the first female marshal in the 223-year
history of the parade, and she is meeting great resistance.
    ''She can't do it,'' the parade chairman, Frank Beirne, stated
flatly. ''Under the rules, only a man can lead the parade.''
    He saie that marshals had to be members of the Ancient Order of
Hibernians and that Mrs. Cudahy was only in the Ladies' Auxiliary.
    Beirne said he thought that Mrs. Cudahy should calm down, take it
easy and wait until next year, when, he said, the rules might be
changed.
    What is the rush, he reasons. Men have lead the parade for the last
223 years.
    ''Exactly,'' said Mrs. Cudahy, pleasantly.
    She literally squirms in her dining-room chair at the mention of
such terms as ''sexism,'' ''chauvinism'' and ''feminism.''
    ''I don't think these men are chauvinists,'' she said. ''They're
just old Irishmen set in their ways.
    ''I wouldn't call myself a feminist. I just think the most qualified
person should get the job. These men are being silly. Come to think
of it, I guess Iamgetting annoyed.
    ''I do not want to be pushy, but there is no reason to wait. It
seems to me one of our best traits as Irish people is speaking up
forcefully.''
    She will fight Beirne's interpretation of the parade rules, probably
with a floor fight at a meeting next Monday, of heads of Irish
groups, and Tuesday, of several hundred parade delegates, to nominate
and elect a grand marshal.
    ''Leading the parade is the greatest honor that could be bestowed on
any Irish person.'' said Beirne.
    Mrs. Cudahy imagines it to be a heavenly experience. ''People who
have done it,'' she said, dreamy-eyed, ''say that it is like walking
on air.''
    But she has found that all is not bagpipes, bands and balloons in
the realm of the St. Patrick's Day Parade, which is frequently called
the largest parade in the country, with 120,000 marchers.
    ''Selection of a grand marshal,'' a parade official said, ''has
become political hardball. This is the essence of the Old Boy
network. The man selected to lead gains celebrity, status and power
in the Irish community of New York and beyond.''
    The selection of the grand marshal changed from an appointment to an
election three years ago. Those wishing to be selected run
advertisements in Irish publications, hold fund-raising parties, send
out mailings to delegates and contact them by telephone, as well as
seek the endorsements of influential Irish people.
    One parade official said he had heard someone suggest that ''the
candidates debate, for God's sake.''
    ''This is democracy,'' Beirne said, ''the American way. But it is
getting carried away. Candidates are starting to spend a lot of
money.''
    ''I won't run ads,'' Mrs. Cudahy said. ''These people who are
delegates know me by now. I think the grand marshal should be very,
very knowledgeable in Irish music, sports, dance and literature. She
should be very knowledgeable about the political situation in Ireland
and be able to speak up on it. That's me.''
    John Thornton, editor of the Irish Echo newspaper, treats Mrs.
Cudahy as a legitimate candidate in his coverage of the race for
grand marshal for the parade, which will be on March 16 this year.
    ''I don't see anything in the rules to stop her,'' he said. ''I feel
she should be allowed to run.''
    She has been invited to a candidates' night to be held by the Grand
Council of United Emerald Societies Wednesday night.
    Even her opponents seem to agree that other than her failure to be a
man, her credentials for grand marshal are impeccable. Last year, the
62-year-old woman became the first female president of the County
Kilkenny Association and was named Irish Woman of the Year by the
Emerald Society.
    Mrs. Cudahy is called ''the First Lady of Irish Radio,'' for being
the host of a Sunday-night radio program on WEVD, ''Irish Memories,''
for 41 years. ''I'm an Irish disk jockey,'' she said.
    Everything in her brick row house in Middle Village is as Irish as
could be, she said.
    She pointed proudly to her vast record collection - the Irish
Warpipe Band of the city's transit police and the like - that she
uses on the radio program, to the painting of the cliffs of Moher in
County Clare, to the photographs of her daughter-in-law, Kathleen,
and her granddaughter, Mary Kate, to the end table with the books and
magazines on Ireland to the china closet containing all of the Irish
teacups.
    At Bridie's, a neighborhood bar with ''Irish Eyes'' playing on the
jukebox, men discussed the impending election.
    ''This is an unlikely neighborhood to find a militant feminist,''
said one at the bar.
    ''It's a fine idea for a woman to one day be grand marshal,'' said
an elderly man, ''but not this year, not yet.''
    ''Ah, well,'' said Dennis O'Connell, the bartender, ''a woman
leading our parade. Why not? They seem to be everywhere you look
nowadays - up in outer space and even in the Fire Department.''
    ''She's a grandmother,'' said another man, ''but they say she's a
lot tougher than she looks. A fighter. If you're true Irish, you've
got to like that.''
    
nyt-02-06-85 1444est
n047  1152  06 Feb 85
BC-POP-THOMPSON
(Newhouse 011)
Pop music column, for weekend use
By GEORGE KANZLER
Newhouse News Service
    NEW YORK - Richard and Linda Thompson made some of the most
innovative and intense folk-rock recordings of the last decade,
culminating in 1982's classic album, ''SKHOOT Out the Lights.'' About
the same time, the two ended their decade-long marriage, a breakup
alluded to on several of the songs on Richard Thompson's 1983 album,
''Hand of Kindness.''
    Now Linda Thompson has come along with ''One Clear Moment'' (Warner
Bros. Records), which doesn't just allude to the breakup but uses it
as the reference point for its songs. Not since Marvin Gaye's ''Here
My Dear'' has an album so intimately addressed the dissolution of a
marriage.
    Making the album, according to Linda Thompson, ''was a cathartic
act, something I had to do after such a major event in my life. If
you're a singer or if you write songs, sometimes you just have to use
it to express what's going on inside or you'll implode. In the end
it's a pretty painful way to reveal yourself, but I really didn't
have much choice.''
    Luckily for her listeners, Thompson is an exceptional artist who has
risen to the aesthetic as well as the emotional challenge of making
such a personal album, in the process transforming it into an
artistic statement, not just another dreary ''True Confessions'' or
self-pitying soap opera.
    Both sides of the album begin with songs that look forward with
resilient hope, thus acting as an optimistic present time frame for
the songs that follow, flashbacks to the bitterness and
disappointment of the actual breakup of the marriage.
    The opening song, ''Can't Stop the Girl,'' is not only upbeat,
emotionally, but borrows the jaunty Celtic-rock style of Richard
Thompson, as if Linda is flinging her new-found artistic independence
right back at him.
    The side continues with the title song, a description of how the
girl in the previous song found the strength to not be stopped. Then
come two songs that explore what went wrong with the marriage: the
accusatory ''Telling Me Lies'' and the much more ambivalent ''In Love
With the Flame,'' with the haunting lines: ''Our eyes were strangers;
They never would meet ... We were blind to each other; In love with
the flame.''
    Side Two begins with the erotically affirmative ''Take Me on the
Subway,'' followed by ''Best of Friends,'' an expressed wish that
didn't work out, judging from the song that follows: ''(It's been)
Hell, Highwater and Heartache (since you've come back to me).''
    Thompson seamlessly adds a former soul hit, ''Just Enough to Keep Me
Hanging On,'' followed by her own amplification, ''Lover Won't You
Throw Me a Line.'' The album ends with its most harrowing song,
''Only A Boy,'' about the impact the breakup has had on the couple's
child.
    ''One Clear Moment'' is an artistic triumph for Linda Thompson and
puts her in the first rank of contemporary singer-songwriters.
JM END KANZLER
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1450est
n048  1200  06 Feb 85
BC-WILKENS
(Sports)
By ROY S. JOHNSON
c. 1985 N.Y. Times News Service
    SEATTLE - During his first 12 seasons as a coach in the National
Basketball Association, Lenny Wilkens compiled an impressive resume.
He won more than 54 percent of his games, coached two all-star teams,
won two conference titles and led a team to the world championship.
But the credentials may not help him keep his job.
    The Brooklyn-born Wilkens, now in his eighth season with the Seattle
SuperSonics, has been saddled with much of the blame for his team's
poor 21-29 record this season. It has come from his players, many of
whom think he has not adequately prepared them for games. And it has
come from fans and the local media, who haven't forgiven him - and
General Manager Les Habegger - for releasing or trading such popular
players as Fred Brown and Gus Williams.
    Wilkens, 47, says he has tried to maintain the kind of composure he
was noted for during his 15-year career as one of the game's wiliest
point guards. ''I have this saying about myself,'' he says. ''I don't
worry about things I can't really control. The things I can, I work
at. Now I don't feel good all the time, but I can't let these things
get me down.''
    The troubles began before the season when Williams, perhaps the most
popular Sonic ever, was traded to Washington for Rickey Sobers and a
rookie center, Tim McCormick. Then management did not invite the
veteran guard Brown, who was also extremely admired, to training camp.
    The two were sorely missed, Williams for his skills, and Brown for
the respect he had earned from his teammates.
    Another factor was the new faces on the roster. Six of the players
were not with the team last year and four are rookies. The only
player remaining from the 1978-79 championship team is the center,
Jack Sikma, a seven-time all-star.
    What it all meant was that Wilkens expected the team to have a slow
start. It did, winning only 6 of its first 17 games. The Sonics
appeared to be making a recovery in December when they were 8-7. But
since then, they have been extremely erratic. Their longest winning
streak is three games.
    ''Look at all the new faces and it wasn't really surprising how we
played at the beginning,'' Sikma says. ''But it should have gotten
better by now. It's been frustrating. We might be the only team to
beat Boston in Boston and also lose twice at home to Golden State.''
    In one recent game against Phoenix, Wilkens became so frustrated
with the play of his regulars that he benched most of them for almost
an entire half, something he says he can't ever remember doing as a
coach before. He says he doesn't understand their lapses. ''I just
don't know the reason,'' he says. ''I can't put my finger on it
because there are so many new areas. I do know that we're just not
playing with a lot of confidence.''
    Therein lies the essence of the team's lack of success, says Sikma.
''Sometimes, we just haven't gone out there with the greatest of
feelings about what we're supposed to be doing,'' he says. ''I know
it's a two-way street, but sometimes the picture could be clearer.''
    Sikma also says he recognizes just how much of an adjustment it has
been for Wilkens to go from coaching a team of veterans to a team of
rookies and free agents who hardly know each other.
    ''Sometimes, guys just have to have things pounded into them and
pounded into them over and over,'' he says. ''They have to be
prepared and that's not Lenny's strongest suit as a coach. He's great
at seeing things during a game and making the right moves then, but
it's harder for players to make those quick adjustments.''
    For the remainder of the season, Wilkens says he will try to balance
his desire to give young players like Cory Blackwell and McCormick
more playing time. It is a tenuous move, since his team is holding
the eighth - and final - playoff spot, just one-and-a-half games
ahead of Portland. He knows that failing to make the playoffs might
cost him his job, but it is a risk he says he is willing to take.
    ''Our business is a risk,'' he says.
    
nyt-02-06-85 1500est
n049  1208  06 Feb 85
BC-RELIGION-SYNOD 2takes
Ethics and Religion column, for McManus subscribers only
By MICHAEL J. McMANUS
    (UNDATED) When Pope John Paul II came to Toronto last fall, I
visited the city to see his impact. One person I met was Mrs. Nellie
Pashkovsky, who is the daughter of a Ukranian Catholic priest! Having
never met the daughter of a Catholic priest, I was fascinated.
    ''What did your father think of the Holy Father's visit?'' I asked.
    ''The moment he asked Toronto's priests to make a new vow of
celibacy, he said 'I can't take that.' And he left the service,'' she
said.
    It is not widely known in America that a married man can be a
Catholic priest, if he is born in Eastern Europe and has been
ordained by an ''Eastern Rite'' bishop. Another exception:
Episcopalian priests who decide to convert to Roman Catholicism can
become married Catholic priests, if they are already married.
    What sense do such rules make?
    Either a priest should be celibate, or he should have the option to
marry. It is logically inconsistent to say some married men can be
priests, while others can't, in the opinion of this lay observer.
    It is as if the pope were to say that abortion is wrong for the U.S,
but OK for Europe.
    These thoughts ran through my mind as I read that Pope John Paul II
has summoned an extraordinary general assembly of Catholic bishops to
examine the results of the Second Vatican Council which ended two
decades ago. He said the synod, to be held Nov. 25 to Dec. 8 would
seek to ''relive, in some way, that extraordinary atmosphere of
ecclesiastical communion that characterized'' Vatican II.
    He also said the synod would reexamine the changes wrought by the
Council ''in the light of new needs.''
    Bishop James W. Malone of Youngstown, president of the National
Conference of Catholic Bishops (NCCB), told me the synod's
announcement ''took all of us by surprise.'' While the Pope has not
yet been specific about what will be discussed, Bishop Malone plans
to meet with American bishops to formulate suggestions for what the
American church might put on the agenda.
    One of the ''new needs'' of the church since Vatican II that Bishop
Malone thinks U.S. bishops would like addressed is the growing
shortage of priests. The problem is two-fold. First, thousands of
active priests left the ministry. In 1977 alone, 2,700 became laymen
and 2,100 did so in 1981. Most have since gotten married.
    Second, the numbers in seminary have declined from 7,855 in 1967 to
3,819 in 1982. They rose slightly last year to 4,244. One result:
two-fifths of priests are now over age 55. And the number of priests
is expected to drop from 57,891 in 1984 to only 17,000 by the year
2000!
    Meanwhile, the number of Catholics has risen steadily from 47
million in 1980 to 52 million in 1983. Most of the new Catholics are
Spanish-speaking, while few of the priests are.
    As I travel across the country, meeting local clergy, I am
constantly astonished that the average Catholic priest is trying to
serve 10 times as many people as the average Protestant church. In
Brooklyn, for example, there is one priest ministering to 2,083
church members: by 1988, he is expected to have to handle 2,681
parishoners.
    It is not quite that bad in Maine, Alabama or California, but I met
priests in those states dealing with 1,000 to 1,500 people. How can
one lead such numbers to spiritual maturity? It is almost impossible
to learn that many names.
RB (MORE)
    
nyt-02-06-85 1507est
n050  1213  06 Feb 85
BC-RELIGION-SYNOD 1stadd
McManus - (UNDATED) X X X names.
    Despite these problems, Bishop Malone does not think that there will
be discussion at the Vatican about changing the celibacy rule: ''The
pope has reaffirmed his opposition to changing it. So I see no
possibility of change in the forseeable future.''
    Instead, he expects the focus will be on how to expand the
involvement of lay Catholics in church ministry. Perhaps the most
significant post Vatican II development in the use of laity is the
emergence of what is called the ''Permanent Diaconate.''
    Some 7,000 men, many of whom are married, have taken many of the
same seminary courses as a priest, and have been ordained to a status
which permits them to assume many of the functions of a priest;
baptizing, preaching, teaching, marrying, administering a parish,
etc. They can not conduct Mass or hear confessions, but can
distribute communion.
    The need for such people is even more acute, when considering how
few women are becoming nuns these days. In a recent four year period,
there were only 2,767 women entering religious orders - a more than
10-fold drop from the 32,433 who became sisters between 1958 and 1962.
    U.S. Catholic, a monthly magazine, surveyed its readers and came up
with another suggestion worth considering: that the church allow
priests or nuns to enlist for a limited period - 5 or 10 years. Some
52 percent of readers favored a short-term commitment. Interestingly,
only 20 percent felt that the celibate lifestyle discouraged
vocations. How many priests or bishops would agree? Few will say.
    In any case, it seems to me that every possible way to relieve the
priest shortage ought to be discussed by the bishops - including a
change of the celibacy rule.
    St. Peter, revered as the first pope, was a married man.
RB END McMANUS
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1512est
n051  1216  06 Feb 85
BC-NYT-BUDGET-06 Addsked
(Repeating by Request)
     Add N.Y. Times News Service schedule for AM's of Thursday, Jan. 7:
    
     WASHINGTON
     REAGAN - President Reagan delivers State of the Union Message at 9
p.m. (EST). By Bernard Weinraub.
    
     REAGAN-REACT - Congressional reaction and Democrats' response to
State of Union address. By Steven Roberts.
    
     AUSTRALIA - President Reagan confers with Australia's Prime
Minister Hawke. By Bernard Gwertzman.
    
     BUDGET - Rudolph Penner of Congressional Budget Office testifies
before Senate panel on budget; other budget developments. By Jonathan
Fuerbringer.
    
     FARM - Agriculture department announces emergency farm credit
program. By Seth King.
    
     ENVIRON - Senate environment panel hears testimony on nomination of
Lee Thomas as EPA administrator. By Philip Shabecoff.
    
     POLICY - Former Defense Secretary Schlesinger outlines his views on
American foreign policy goals. By Hedrick Smith.
    
     INTERNATIONAL
     Beirut - LEBANON - Twelve Israelis are wounded in two bombings in
southern Lebanon as violence rises against departing troops. By John
Kifner.
    
     Dateline to come - POPE - On plane back to Rome, pope says he sees
no need for papal diplomacy in Central America; other comments. By
E.J. Dionne.
    
     FINANCIAL
     New York - TAX-X - Part 10 of Your Taxes series; today: tax
shelters. By Gary Klott.
    
nyt-02-06-85 1515est
n052  1227  06 Feb 85
BC-CENTRAM-ESCALATE
(Newhouse 013)
SUPERPOWERS UP ANTE IN CENTRAL AMERICA
By GEORGE HAGER
Newhouse News Service
    WASHINGTON - The stalemated guerrilla wars in El Salvador and
Nicaragua entered a risky new phase of escalation recently when the
governments' air forces acquired sophisticated gunships and attack
helicopters, according to military observers and congressional
sources in Washington.
    In the last three months, the United States and the Soviet Union
have reportedly given their respective Salvadoran and Nicaraguan
government allies the kind of aerial weaponry that analysts say could
tip the balance of the wars, or set off still more arms escalations.
    Until late last year, both superpowers had acted almost as though
there were a tacit arms agreement between them that limited the sort
of weapons they gave their allies in the region.
    Though the United States had supplied helicopters to the Salvadoran
armed forces and the Soviets had done the same for the Sandinista air
force in Nicaragua, neither side had given its ally advanced
helicopter gunships. And neither the U.S.-backed Nicaraguan contras,
nor the Salvadoran rebels who are believed to have indirect ties to
the Soviets through the neighboring Sandinistas and the Cubans, had
anything more than rudimentary air defense weapons.
    Because of these and other factors, both wars have ground on in a
form of stalemate, with neither the rebels nor the government in
either country able to deliver a decisive blow against their
adversaries.
    But late last year, the Soviets reportedly broke the arms symmetry
by giving the Sandinista government of Nicaragua from eight to 12
Mi-24 ''Hind'' attack helicopters, which a variety of sources claim
made a little-noticed arrival in Nicaragua at the time of the MiG
''crisis'' last November.
    The Hinds have been described as ''flying tanks'' because of their
enormous firepower and heavy armor. One military expert here says the
Soviets have used them with devastating effect against Afghan rebels,
who have had little luck bringing them down even with heat-seeking
missiles.
    ''When they kick in those Hinds and go offensive, all those
(contras) in the field have essentially had it,'' says a U.S. source
with ties to the contras. ''They won't be able to run back to
Honduras.''
    There have been conflicting claims about Hind sightings in
Nicaragua. One rebel group operating along the Costa Rican border
claims the machines already have appeared in combat. But Bosco
Matamoros, a spokesman here for the largest contra group, the
Nicaraguan Democratic Force, says the Hinds have not appeared in
battle yet against their troops. ''We are trying to get all the means
that will counter the Hinds' effectiveness,'' Matamoros says. ''I'm
not in a position to elaborate.''
    In El Salvador, the Salvadoran armed forces have begun using two
U.S.-supplied C-47 gunships, which are old DC-3-type aircraft fitted
with up to three .50-caliber machine guns and special sighting
devices. The aircraft are designed to loiter over a target area for
extended periods of time, pouring down heavy-caliber fire on
guerrilla troop concentrations or other targets at the rate of 2,700
rounds per minute.
    A U.S. State Department spokesman says there is also a plan under
consideration to give the Salvadorans four specially modified Hughes
500 helicopters. Salvadoran news reports indicate each of these would
be equipped with special machine guns capable of firing at a combined
rate of 5,000 rounds per minute.
    Retired U.S. Army Lt. Col. Edward King, a specialist in Central
American military affairs, said recently the new C-47 gunships give
the Salvadorans ''a lot more firepower than they've ever had
before,'' and can function at night, a capability the Salvadorans
haven't had until now.
    King warned a House subcommittee that the anti-government guerrillas
in El Salvador will be forced to counter the C-47s by obtaining more
sophisticated anti-aircraft weapons. ''That, in my estimation, will
escalate ... the intensity of the war,'' he said.
    Congressional observers here speculate that the Salvadoran
guerrillas do not now have heat-seeking missiles because that would
provide too obvious a link between them and the Nicaraguans, the
Cubans or the Soviets - a link the United States has repeatedly
alleged but has had trouble documenting.
    Says Sen. J. Bennett Johnston, D-La., ''I doubt they (the backers of
the Salvadoran guerrillas) would give them heat-seeking rockets,
because it would be irrefutable evidence of their involvement.''
    A congressional aide familiar with the situation says the new arms
buildup may represent a dangerous turning point.
    ''The introduction of sophisticated equipment is a destabilizing
factor,'' he says. ''You've reached the precipice, and (the question
is), what will it basically take to push everybody over?''
RB END HAGER
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1526est
n053  1239  06 Feb 85
BC-ABORTION 3takes
By DUDLEY CLENDINEN
c.1985 N.Y. Times News Service
    WASHINGTON - At 6 a.m., just when it was beginning to get light last
Nov. 19, the private security guard hired to protect the Metro
Medical and Women's Center because of bomb threats and demonstrations
went home.
    ''The bomb went off at 6:13 or 6:15,'' said Penny Smith, the
administrator of the abortion clinic in Wheaton, Md. ''According to
the detectives, it was thrown through the front window. No one told
me when I was in college preparing to be a registered nurse that I'd
be involved in guerrilla warfare.''
    The anti-abortion movement, which simmered in frustration for 11
years after the 1973 Supreme Court decision legalizing abortion,
exploded in violence last year. The greatest cluster of destruction,
nine bombings, occurred in and around the nation's capital.
Frequently keyed to patriotic and religious holidays, such as the
Fourth of July, Christmas Eve and New Year's Day, the bombings helped
heighten public awareness of the intense feelings on both sides of
the abortion issue.
    And, as an examination of the Washington area bombings shows, they
have also confronted the authorities with a kind of radical violence
reminiscent of Vietnam War protests, placed a legal institution under
siege, damaged parties with no connection to the dispute and won
strong sympathy from certain religious ranks.
    Paradoxically, the violence may also have led to more abortions.
    The Wheaton explosion, the largest of the anti-abortion bombings in
metropolitan Washington, destroyed the clinic and rendered unusable
three adjacent doctors' offices: those of a podiatrist, a
gastroenterologist and two optometrists. The building has still not
reopened, although the abortion clinic is operating elsewhere.
    The bombing wrecked the office of Dr. Jacalyn Ely, an optometrist
specializing in visual therapy for children and adults. ''It has put
us out of business,'' Dr. Ely said. ''I am still very angry. These
people don't realize that when they do this kind of thing they affect
other people's lives. There are a lot of people affected who have
nothing to do with the abortion issue.''
    On that same morning, 15 minutes after the explosion in Wheaton, two
more bombs went off in nearby Rockville, behind the building housing
the Planned Parenthood clinic, which provides counseling but no
abortions.5bltsts did more damage to the offices of an
obstetrician-gynecologist and a small computer concern than they did
to the clinic. And they blew out bedroom and bathroom windows in a
number of nearby houses.
    ''Someone certainly could have been up and about and gotten hurt,''
said Florence Seifert, director of the local Planned Parenthood
chapter.
    In the case of the Wheaton clinic, there has been personal hurt.
Some of the clients were teen-age girls needing contraceptive
instruction. Because of the bombing, according to Mrs. Smith, they
postponed those visits. ''They were fearful,'' she said. ''They
didn't know where else to go. When we saw them again, they were
pregnant.'' In two cases, she said, ''We have had them back as
abortions.''
    Three men, including the pastor of a small Lutheran congregation,
have been arrested and charged with conspiracy in eight of the
bombings, which damaged federal and state offices as well as homes,
blew a hole in the wall of a bank, destroyed a beauty parlor, damaged
the entrance of an office of the American Civil Liberties Union,
interrupted fertility treatments for childless couples and blew out
all the windows on one side of the First Baptist Church in Suitland,
Md., which has some anti-abortion activists among its evangelical
congregation.
    ''In fact, they didn't even get the clinic next door,'' said Glen
Niles, associate pastor of the church. Shocked from sleep in his
house several blocks away by the two explosions on Christmas Eve,
Niles and his pastor spent the rest of the night cleaning up debris
and boarding up the windows of the church so the congregation could
stay warm at Christmas services.
    ''They ought to at least apologize for the inconvenience they caused
the church,'' Niles said.
    The bombs were placed next door to the church, at the side of the
building housing the abortion clinic. But the clinic itself, on the
fifth floor, was untouched by the explosions. Dr. A. Gohari, who
delivers babies and performs abortions, does not know whether his
landlord will renew his lease this fall. But the bombing has left him
unshaken in his determination to perform abortions. ''I will continue
up to the last minute that it is legal,'' he said. ''They can kill me
to stop me.''
    Since the bombing of the Hillcrest Surgi Center on Pennsylvania
Avenue on New Year's Day, and the arrest of the three men by agents
of the Federal Bureau of Alcohol, Tobacco and Firearms, who seized a
large cache of weapons and explosives, there have been no further
bombings here. But both bomb victims and foes of abortion suggest
that the arson and bombings that have occurred around the nation are
the product of a frustration that continues to build.
    ''They're getting tired,'' said Thomas Herlihy, assistant
coordinator of the Pro-Life Nonviolent Action Project in suburban
Maryland, which is modeled on the protest methods of the civil rights
era. ''They're getting frustrated. The prolife movement is reaching
the pressure-cooker stage.''
    
    (MORE)
     nn
    
nyt-02-06-85 1538est
n054  1245  06 Feb 85
BC-ADVISORY Sunday sked
    The following articles for release Sunday, Feb. 10, are moving on
The N.Y. Times News Service wire:
    
CULTURE
    
    New York - INDIA-RAJ - India is on our minds, but whose India? By
William Borders. (Moved).
    New York - KISSELGOFF-DANCE - Great dancers made great musicals in
Hollywood. By Anna Kisselgoff. (To come).
    New York - CORRY-TV - 'The Atlanta child murders': a trial by TV. By
John Corry. (Moved).
    New York - HENAHAN-MUSIC - Postwar compositions have not enjoyed
great staying power. By Donal Henahan. (Moved).
    New York - GUSSOW-THEATER - Innaurato survives a period of
adjustment. By Mel Gussow. (Moved).
    New York - CANBY-MOVIES - 'Birdy' watching has its rewards. By
Vincent Canby. (Moved).
    London - RUSSELL-ART - In London, a fine home for a major
collection. By John Russell. (To come).
    Undated - HOMEVIDEO - Recent releases of video cassettes; reviews by
N.Y. Times Critics. (Moved).
    Undated - BESTSELLERS. (Moved).
    Undated - PAPERBACKS. (Moved).
    
TRAVEL
    
    New York - PRACTICAL-TRAVELER - Early alert on Europe's summer
crowds. By Paul Grimes. (Moved).
    Undated - TRAVEL-NOTES - Return to Germany, tournament in Portugal
and other notes. By Lawrence Van Gelder. (Moved).
    Undated - TRAVEL-Q&A - Questions and answers on travel topics.
(Moved).
    Munich - TRAVEL-CRUISE - In search of glamour on the sea. By Enid
Nemy. (Moved).
    
FOOD
    
    New York - CLAIBORNE-CAPERS - Grace Notes. By Craig Claiborne with
Pierre Franey. (Moved).
    
FINANCIAL
    
    Editors: The financial stories will be scheduled later.
    
    Undated - PROSPECTS - Prospects for business and the economy. (To
come).
    Undated - BIZWEEK - The week in business. (To come).
    Undated - CONSUMERRATES - The various consumer rates. (To come).
    Undated - DATABANK - Various Economic financial trends. (To come).
    
COLUMNS
    
    Undated - BAKER-COLUMN - The Processing Process. By Russell Baker.
(Moved).
    New York - ON-LANGUAGE - Vigilante. By William Safire. (Moved.)
    GLASS-COLUMN(COX) - By Anthony J. Glass. (To come).
    FAIN-COLUMN(COX) - By Jim Fain. (To come).
    FOREIGN-AFFAIRS - By Anthony Lewis. (To come).
    RESTON-COLUMN - By James Reston. (To come).
    SPORTS OF THE TIMES - (To come).
    
nyt-02-06-85 1544est
n055  1256  06 Feb 85
BC-''CHILD-MURDERS''
(Newhouse 012)
Television column, for weekend use
Embargoed in California
By BOB WISEHART
Newhouse News Service
    (UNDATED) One reason so many TV programs are flat, pat and
unattractive is that they lack the courage of opinion and
scrupulously avoid a point of view.
    The docudrama is the most popular example. While they're often
interesting and sometimes controversial, even the best docudramas are
just dramatic recreations enhanced by performance, without
interpretation or conclusion.
    But anyone who dismisses ''The Atlanta Child Murders'' as just
another docudrama is in for a surprise. This is advocacy movie-making
with a vengeance. It does not rewrite history as much as disagree
with it and challenge the official view of the murders of 29 black
youths in Atlanta from the summer of 1979 through the late spring of
1981.
    ''The Atlanta Child Murders'' does what a jury did not, and declares
convicted murderer Wayne Williams innocent - bluntly concluding he
was railroaded at his trial.
    The two-part, five-hour CBS miniseries starts Sunday at 8 p.m. EST
and concludes Tuesday at 8 p.m. It was co-produced by Gerald
Rafshoon, media adviser in the Carter administration, and
Oscar-winning writer-producer Abby Mann. The cast includes Jason
Robards, Martin Sheen, James Earl Jones, Rip Torn, Morgan Freeman,
Ruby Dee and Calvin Levels as Williams.
    In 1982, a jury of 12 men and women convicted Williams of the murder
of two adult black males. Atlanta authorities also linked Williams to
the killings of 22 children, all black males - but he never was
charged with these. Williams is serving two life sentences in the
Georgia State Prison.
    Fiber experts from the FBI and Georgia State Crime Laboratory
testified they found more than 700 fibers and dog hairs on the
victims' bodies that matched those in Williams' house or in the three
cars he drove during the period the killings took place. The
prosecution also produced blood stains in Williams' car consistent
with the blood of two victims who suffered stab wounds.
    The first night of the miniseries is devoted to the investigation by
Atlanta police, while the second night focuses on the trial.
    Mann claims he adhered to public records, interviews and court
transcripts whenever possible. Even so, much of the movie is seen
through the eyes of a fictional character, a black detective
(Freeman) dissatisfied with the official explanation who concludes
that Williams was ''a sacrifice on the altar of the good name of
Atlanta.''
    Jones also plays a fictional character, a police captain under
intense public pressure to solve the case who presses to have it
closed as quickly as possible.
    Ironically, the murders occurred during the first black
administration in Atlanta history. The miniseries shows city
officials who are so defensive that they're reluctant to admit that a
murder pattern exists.
    When Williams is arrested, in narration Freeman asks: ''Was this the
monster ... who plagued and tormented Atlanta? Or was it someone
caught in the net of hysteria and the need to bring an end to
Atlanta's nightmare.''
    The second night pits defense attorney Al Binder (Robards) against
prosecutor Lewis Slaton (Torn).
    Robards plays the Mississippi-born Binder as a sly Southern fox, a
good ol' boy Perry Mason who reduces witnesses to stammering
mincemeat. Ambivalent about his own case, prosecutor Torn isn't much
opposition. Even the victims' mothers don't think Williams is guilty.
    ''The Atlanta Child Murders'' is sober, cold and tough. Deliberate
but never slow, there's not a bad performance in it.
    Given the point of view, Williams' conviction is hard to swallow. It
seems preposterous in the face of what we've seen, which is exactly
what Mann intended.
    One of the nagging concerns about a TV show based on a real event is
that the medium is so powerful the drama becomes the real thing in
the minds of viewers. I don't buy this for a minute. People are
smarter.
    Instead of assuming Abby Mann is right and Wayne Williams is a
scapegoat, I suspect most viewers will come away feeling they missed
something on which the jury pegged his guilt.
    Finally, is TV the place for revisionist history?
    Why not? TV is the biggest soapbox the world has ever known. Abby
Mann simply climbed up and said his piece. Nobody has to agree with
him.
    If ''The Atlanta Child Murders'' was flagrantly callous and
exploitative, that would be cause for alarm. But it isn't.
    The mission of most TV is to deliver us to commercials in a state of
elated sedation. ''The Atlanta Child Murders'' defies that
traditional, lulling portrayal of the human condition. It commits the
heresy of raising questions that can't be answered by the end of the
show.
    Just because it doesn't happen very often doesn't mean it shouldn't
happen at all.
RB END WISEHART
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1555est
n056  1307  06 Feb 85
BC-ABORTION 1stadd
NYT WASHINGTON: cooker stage.''
    ''If people believe what we believe,'' Herlihy said, ''they might be
out there bombing clinics.'' He said that before he discovered there
was another way to release the tension, through civil disobedience
and arrest, he was close to violence himself.
    ''I would say a couple of years ago, I was about at that stage,''
Herlihy said. ''I could see myself resorting to that, going around
and bombing clinics.'' Now, at 37 years old, he has given up his job
in New York to devote himself to the protest movement here. The only
way to end the violence, he believes, is to spread the gospel of
nonviolent civil disobediance.
    ''After a sit-in or two, these people are changed - it's a
tremendous outlet for all that frustration,'' said Herlihy, who was
one of nearly 30 demonstrators arrested in front of the Supreme Court
Building on Jan. 22, the 12th anniversary of the decision that
legalized abortion.
    The first bombing in the Washington area, which occurred at the
Hillcrest Clinic in Norfolk, Va., the night of Feb. 17, 1984, gave
direct evidence that it was aimed at abortions and alerted the local
authorities to the reality of violence as an anti-abortion tactic.
    The clinic had received three telephoned bomb threats, the last just
two weeks before the bombing. But Bonita Collins, the clinic's
director, had discounted the threat. ''I was advised by the local
law-enforcement officials that there had not been a bombing in any of
Norfolk in over 20 years, that people derived satisfaction just from
making the threat,'' she said.
    Miss Collins accepted their advice even though the clinic was
thoroughly burned the previous May by a house painter named Joseph
Grace, who opposed abortion. ''He did an excellent job - $150,000
damage,'' Miss Collins said. ''He climbed a ladder, broke in through
a window, poured kerosene throughout all our offices, lit it, climbed
back down the ladder, and drove away in his van.'' Grace is now in a
Virginia state prison.
    ''I was so devastated by the fire,'' Miss Collins said. ''I was so
certain afterwards that our demonstrators would go low key, to give
our wounds time to heal.'' Instead, she said: ''The picketing
escalated. It became so aggressive, so unpredictable. It was just
chaotic.''
    Then came the bombing. The damage was confined mainly to the ground
floor office of the Sovran Bank, where the bomb was placed against
the outside wall. Bank officials declined to discuss the bombing, but
as Miss Collins walked across the glass-strewn parking lot toward the
bomb site that night, a policeman was picking up a piece of board
with messages on it.
    On one side, sprayed in red paint, were the words ''Hilcrest
Murders.''
    ''They misspelled 'Hillcrest,' '' Miss Collins said. On the other
side were the letters AOG. Miss Collins took that to mean Army of
God, the name used by some taking reponsibility for bombings around
the country.
    An explosion at the Pennsylvania Avenue legislative office of the
American Civil Liberties Union left a different message. A bomb taped
to the doorway exploded about 9 a.m. Saturday, Nov. 3, according to
Jerry Berman, the legislative counsel. A secretary working in a
distant room was unhurt.
    ''We were in the dark about who did it or why,'' because the message
left behind was enigmatic, Berman said. ''Someone wrote 'Wolverines'
on the wall.'' Apparently, the reference was to a particularly
violent motion picture released last summer, ''Red Dawn,'' about a
band of high school heroes who wage guerrilla war against an invader.
    The high school students in the movie called themselves
''Wolverines.'' But federal agents concluded that the ACLU bomb
strongly resembled those used in other explosions in the area. On
Saturday, Jan. 19, after two months of surveillance and searches of
two homes and a rented warehouse space, the Bureau of Alcohol,
Tobacco and Firearms arrested three Maryland men: Michael Donald
Bray, 32 years old, of Bowie, a former Naval Academy cadet turned lay
preacher; Thomas E. Spinks, 37, also of Bowie, and Kenneth William
Shields, of Laurel.
    All were charged with conspiring to bomb the clinics. They will not
have a chance to enter a plea unless grand jury indictments are made.
But Robert Muse, the Washington lawyer hired by Bray, said, ''He's
going to enter a plea of not guilty if the grand jury acts.''
    A secretary for Richard Bardos, the federal assistant public
defender appointed to represent Spinks, said that Bardos ''has no
comment at this time, at the request of Spinks.'' And Fred Sinclair,
the private lawyer representing Shields, did not return repeated
telephone calls.
    Bray and Shields have been released on bail. Spinks is being kept in
jail because a search of his house and rented storage space turned up
hundreds of pounds of explosive material, fuses and cylinder casings.
There were also heavy revolvers, rifles and shotguns, maps that
pinpointed the sites of aborion clinics that had been bombed and the
names and telephone numbers of Bray and Shields.
    
    (MORE)
     nn
    
nyt-02-06-85 1606est
n057  1313  06 Feb 85
BC-ABORTION 2ndadd
NYT WASHINGTON: and Shields.
    And among the papers, according to federal agents, was a copy of
''The Anarchist Cookbook,'' a bomb-making manual first published in
the early 1970s.
    Although federal prosecutors have described the three men as
fervently religious opponents of abortion, not much is known of
Spinks and Shields. They were unfamiliar both to Chip Ward, co-pastor
of the Covenant Live Christian Community, and to Herlihy of the Pro
Life Nonviolent Action Project, the two groups that regularly
picketed the Wheaton clinic before it was destroyed Nov. 19.
    Ward thinks the bombings, ''negative though they are, have actually
helped the anti-abortion cause by bringing attention to the issue.
    ''All of a sudden it's on the cover of Newsweek,'' he said. ''It's
on '20-20.' ''
    But Ward does know Bray, who has been active in the nonviolent
protest movement. He was one of the 46 people arrested at the Wheaton
clinic two days before it was bombed.
    A man who said he was jogging by the clinic the morning before it
was bombed called a television station afterward to say that he
recognized a man he had seen near the clinic. The face on the
newscast turned out to be Bray's.
    ''He's told us in private that he didn't do it,'' said Herlihy, who
knows Bray from repeated sit-ins and arrests with the Pro Life
Nonviolent Action Project. ''Now why would he say that if he had?''
    Married, with three children, Bray worked as a $14,000-a-year lay
assistant to Alan Ericksen, pastor of Grace Lutheran Church in Bowie,
Md., until the congregation dropped his position in a philosophical
dispute about a year ago. Bray then left, taking 20 or 30 of the more
conservative families with him, Ericksen said, and the splinter
congregation ordained him its pastor.
    ''We basically are pro-life here, but not to the degree that perhaps
Mike would like us to be,'' Ericksen said.
    Bray, who began college as a cadet at the Naval Academy in Annapolis
and then attended classes at the University of Maryland and Rockmont
College in Colorado, went to Grace Lutheran with a two-year degree
from the Denver Seminary, a Baptist post-graduate theological school
in Denver.
    There is no support for violence at the Denver Seminary, said the
academic dean there, Ralph Covell. ''I do not like the phrase
'helping the cause,' '' he said. ''It brings it more forcefully to
public attention, I suppose. But it accelerates the possibility of
the polarization of society, and in that way, it has helped nobody's
cause.''
    
nyt-02-06-85 1612est
n058  1323  06 Feb 85
BC-BROADWAY-ELIOT 2takes
(Newhouse 014)
Theater column, for weekend use
By WILLIAM A. RAIDY
Newhouse News Service
    NEW YORK - ''A poet,'' Keats once told a frien''is the most
unpoetical of anything in existence'' and the reason for this, he
added, is ''because he has no identity.''
    When we first meet St. Louis-born Thomas Stearns Eliot, who will
become the most praised English language poet of this century, in
Michael Hastings' powerful drama, ''Tom And Viv,'' he is a somber
young virgin in a dark suit and starched collar, who writes snips of
verse down on bits of paper and pieces of cigarette packages. The
time is 1915.
    ''I don't chatter very well,'' he explains to a rather overly
animated upper-middle class young Englishwoman by the name of Vivien
Haigh-Wood.
    He might add that he doesn't dance very well, is socially awkward,
has no money and no prospects, (Just that ''feeling for ditties which
rhyme'').
    Twenty-six-year-old Eliot is, however, earnestly in search of an
identity, part of which is to become an English gentleman and in the
Edwardian tradition. Vivien, one might say, sweeps him off his feet
and they soon marry, without parental presence, in a registry office.
And speaking of identities, Viv forgets to tell him about one thing
... her very tenuous mental condition.
    Michael Hastings' play, which will run through March 10 at the New
York Shakespeare Festival Public Theater and stars Edward Herrmann as
the Nobel Prize-winning poet and Julie Covington;Zs vastly troubled
wife whom he later abandons and packs off, with the help of her
family, to a series of mental institutions, caused a sensation last
winter when it was first presented at London's Royal Court Theatre
(with Covington originating the role of Viv). CF; 7/8Y;vT.S. Eliot
(including Stephen Spender who condemned the play without seEing it)
as well as his eternally ardent literary suppodGWnn were reluctant to
believe the portrait of the revered poet they saw on the stage.
    Not that Eliot is portrayed in any way as an out-and-out villain. He
is merely pictured as less saintly and less in control of his life
than many of his readers previously supposed. (The poet's will
instructed that no official biography was to be written after his
death and for many years his first wife received the ''Stalin
treatment'' - as if she almost hadn't existed.)
    Playwright Hastings has not only done a brilliant job of
documentation (the work included a long series of interviews with
Viv's younger brother, Maurice, who was 85 at the time), but has
written an extremely forceful drama which poignantly captures the
devastating sadness of an extra-ordinary misalliance. The fact that
one of the principals in this tragic, complex marriage happens to be
the world's most famous modern poet is almost coincidental.
    ''Tom And Viv,'' directed so splendidly by Max Stafford-Clark, could
never for a minute be considered muckraking in any sense of the word.
    ''Love is most nearly itself,'' Eliot poeticized, ''when here and
now cease to matter.'' And in the beginning with Viv, Eliot knew no
''here and now.'' But his surge of happiness lasted all too briefly
as Vivien began to suffer increased nervousness and poor health,
epitomized by constant severe headaches, cramps and overly frequent
menstrual cycles, all of which Eliot soon found ''hellish and
loathsome.'' A sexual relationship soon became almost out of the
question.
    Meanwhile ''eccentric'' Viv's mental condition, due to continuous
medication, including large doses of narcotics and alcohol, became
progressively worse. Her unsympathetic mother, who had stopped an
earlier proposed marriage and, had she known of Eliot's infatuation
might have warned him off, too, referred to her condition as ''moral
insanity.''
    Viv, said the philosopher and renowned mathemetician Bertrand
Russell, who had a most brief sexual liaison with her but remained A
loyal and generous friend, ''lives on a knife's edge. There is
something in her which will turn her into a saint or a criminal. If
you don't share your life with her, she will strike back in a most
extraordinary way.''
    And as Eliot became more acclaimed in literary circles and his wife
more eccentric and snubbed by friends who always took his part, Viv
became more paranoid and lockGd; 3/8t of her husband's life. Although as
brilliant as she was odd, Vivien Eliot was almost treated as a
non-0erskn in spite of the fact that she often helped the poet with
his literary efforts and served as his muse, albeit his troubled
muse).
BJ (MORE)
    
nyt-02-06-85 1622est
n059  1334  06 Feb 85
BC-EARLY-BUDGET-(Balt.)
    
     Baltimore Sun's Early Budget for Thursday February 7, 1985
    
     Good afternoon. Here's what The Baltimore Sun News Service has in
sight at this hour for tomorrow morning's papers. Regular features
that always move on this cycle are described at the end. A more
complete budget of spot stories will move at about 5 P.M. Eastern
time. Late developments will be budgeted as received. The editor is
James Keat. He can be reached at 301 332 6188.
    
     INTERNATIONAL
    
     Korea - ex-Seoul - On the eve of Kim Dae Jung's return, the
government prepares. - By Anthony Barbieri, Jr. - BC
    
     Australia - ex-Washington - The Australians back out of commitment
on MX missiles. This story will wrap in New Zealand resistance to
visits by nuclear ships. - By Gilbert Lewthwaite - BC
    
     Soviets - ex-Moscow - President Chernenko's river diversion plan,
which was approved by the central committee in October, comes under
criticism by scientists. - (600) - By Antero Pietila - BC
    
     NATIONAL
    
     Budget - Next step in battle over Reagan administration budget
occurs as Rudolph Penner, head of the Congressional Budget Office,
gives senators his opinion of the proposal. - (Dvpg.) - By Stephen
Nordlinger - BC
    
     Speech - Main story on President Reagan's state of the union
speech. - (1,400 in 2 Takes) - By Robert Timberg - BC
    
     Analysis - Of Reagan speech. - (800) - By Fred Barnes - BC
    
     Reaction - To Reagan speech. - (700) - By Nancy Schwerzler - BC
    
     Tax - (Tentative.) - What president's speech tells us about future
of tax reform proposal. - (700) - By Stephen Nordlinger - BC
    
     EDITORIALS & COMMENTARY
    
     Editorial - 'Marching as to. . .' - (300) - The Baltimore Evening
Sun - BC
    
     South - Before the close of the Civil War, even as in antebellum
days, the region was united commercially, if by no other ingredient
than slave trading. It was a distinct terror for blacks of the upper
South to be sold to Georgia-America's Gulag Archipelago in real and
imaginary terms. - (950) - By Leroy Graham - The Baltimore Evening
Sun - BC
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC
    
     SPORTS
    
     Bogues - The Detroit News and the New York Post called Monday, USA
Today was down to visit over the weekend and a reporter from Gannett
News Service dropped by yesterday. Take a number and wait your turn,
the national media has discovered Tyrone Bogues. Suddenly he's more
in demand than a new imported mustard at a Yuppie gourmet shop. -
(800) -  By Molly Dunham - The Baltimore Evening Sun - BC
    
     Racing - Part III of a five part series - Two's company but three
is sometimes trying when you get a trio of racing's biggest names
under one garage roof. That's the way it is for Junior Johnson,
Darrell Waltrip and Neil Bonnett. - (1,050 In 2 Takes) - By Sandra
McKee - The Baltimore Evening Sun - BC
    
     BUSINESS AND FINANCIAL
    
     Barge - With the launching this week of his new barge service, Hale
Container Line Inc., Edwin F. Hale hopes to capitalize on the move
toward ''load centers''-the emerging practice of large container
ships calling only a few ports. Cargo from other ports then is fed by
barge and truck to these load centers. - (700) - By Ross Hetrick -
The Baltimore Evening Sun - Bc
    
     ENTERTAINMENT & CULTURE
    
     Carter - The city of Atlanta suedfCBS over portrayal of Wayne
Williams investigation in Sunday's ''Atlanta Child Murders''
television movie. - (700) - By Bill Carter- BC
    
     Stamps - Picture post card collectors claimed the top awards at
last weekend's Chesapex '85, the annual winter stamp show sponsored
by Baltimore's Chesapeake Philatelic Society. - (650) - (ADVANCE FOR
SUNDAY FEBRUARY 10,) - By Jesse Glasgow - BC
    
     Cedrone - A review of Derek Jacobi, who minces through the Royal
Shakespeare Company's production of ''Much Ado About Nothing,'' does
a complete turnabout in ''Cyrano de Bergerac.'' Both plays are being
done in repertory at the Kennedy Center in Washington. - (550) - By
Lou Cedrone - The Baltimore Evening Sun - BC
    
     FEATURES
    
     Pets - The dog is a naturally curious, intelligent little fellow
who entertains the neighborhood by sitting up and begging for food or
attention. He'll shake hands with enthusiasm, and when asked to box,
Alfonzo simulates a bout of fisticuffs with his paws. - (400) - By
Ellen Hawks - The Baltimore Evening Sun - BC
    
     ETC. - I had lunch with my trendy friend Rhonda yesterday. She'd
just had her nails done with special designs that will last for a
week, if she's lucky, and eyeliner put on her eyelids that will last
for life.Have you heard of the permanent eyeliner procedure? - (450)
- By Elise T. Chisolm - The Baltimore Evening Sun - BC
    
     End Baltimore Sun's Early Budget
    
    
nyt-02-06-85 1633est
n060  1339  06 Feb 85
BC-BROADWAY-ELIOT 1stadd
(Newhouse 015)
Raidy - NEW YORK X X X muse.$Xwnqd,l was right! Viv did strike back,
often very effectively. When her husband rather cravenly filed papers
of separation in America, while he had a six months lectureship at
Harvard, she attended a performance of one of his early plays (in
1933), ''The Rock,'' carrying a placard which read: ''I Am The Wifexe
Has Deserted.''
    Although when young Eliot was warned shortly after his rushed-into
marriage that his wife was unstable, he insisted: ''Vivie is my life.
I owe her everything; I will look after her,'' playwright Hastings,
explicitly, lets his audience know otherwise.
    Vivien Eliot may have been his muse, as well as the creative
irritant that produced so many of his great poems that expressed the
isolation of the individual and the anguish and barrenness of modern
life. There is no doubt that she helped him with some of his most
famous poems such as ''The Waste Land'' and named the magazine he
edited (and in which her own poems appeared) ''The Criterion.'' We do
know, also, that the poe 5/8 3/4ho was a long time trustee of Vivien's
father's estate, conveniently left her to linger until her death in
1947 in a mental institution and that he also arranged to have his
dedication to her for his ''Ash Wednesday'' removed from the text in
the 1960s.
    Eliot was an orderly man, who loathed any visible fuss. I remember
the late theater critic, cultural historian and stage director Harold
Clurman describing how disappointed he was in attending one of the
poet's readings. He said: ''I was rather put off by T.S. Eliot when I
heard him read parts of 'The Waste Land' and others of his poems at
the New School for Social Research in the early 30s. He had fine,
regular features, he was tall and thin, wore a long black frock coat,
and was strikingly pale-faced. There was something condescending,
almost mocking, in his attitude toward the audience.
    ''He intoned the verse, a disagreeable mode of reading common among
poets and especially wrong for Eliot's poetry. He looked for all the
world like a highly bred Anglican cleric.''
    There was a lot more torment ... and, one hopes, guilt ... behind
that pale-faced visage of the ''Anglican cleric'' than people knew.
BJ END RAIDY
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1639est
n061  1343  06 Feb 85
BC-ADV-SPECFEAT
(FOR IMMEDIATE RELEASE)
FROM LADIES' HOME JOURNAL
Copyright 1985 Flora Davis
World rights, except United Kingdom and British Commonwealth. (2,000)
LIFE'S LITTLE HASSLES CAN BE YOUR BIGGEST PROBLEM
By FLORA DAVIS
    Can it really be true that life's molehills have a greater effect on
our lives than its mountains? Yes, says free-lance writer Flora
Davis. According to Dr. Richard Lazarus, Ph.D., of the University of
California at Berkeley, ''Daily hassles ... may have a greater effect
on our moods and our health than the major misfortunes of life.'' In
this article from the January issue of Ladies' Home Journal, Davis
presents 10 strategies to take the steam out of your everyday hassles
(like leaving your wallet at the store or having an argument with
someone at work), and help you cope with life's minor stresses so
they don't loom so large. (slugged: BC-STRESS, priority code w,
category code c)
To purchase the above material contact The New York Times Syndication
Sales Corp. Call Doris Richetti (714) 846-2877, or Dan Barber (212)
972- 1070. Overseas clients contact Paul Gendelman in Paris: 742-1711
or 742- 1411 (telex 842-230650).
This material will be transmitted to you on Wed., Feb. 6, on the tav
selector code.
    
nyt-02-06-85 1642est
n062  1354  06 Feb 85
BC-SPORTS-PLAGUE
(Newhouse 016)
Sports column, for Izenberg subscribers only
By JERRY IZENBERG
    NEW YORK - The fighter emerges from the hotel men's room during an
awards dinner and floats back into the banquet hall. He has become so
casual about it that he is either unaware or uncaring about the
sizeable residue of white powder around his nose and mouth.
    He leaves his meal untouched. An hour later, eyes filled with rage,
he picks a fight with an autograph-seeker.
    Everyone in the room knows the fighter. Everyone in the business
knows his problem.
    The pitcher snorted cocaine in the bullpen. He was more brazen than
the others.
    Another major league baseball player is tooling down a highway with
a joint in the ash tray. The manager is sitting next to him and
trying to talk sense. The player says somebody else left it there.
The manager knows he is lying.
    What the manager also knows but cannot prove is that the joint is
simply a hopeful device on the player's part to ease the pain (which
he doesn't recognize as pain) until he can make a cocaine buy later
in the day.
    The football player was an all-pro. During a Pro Bowl practice
session a few years back, he was higher than the Man in the Moon, his
mood alternating from openly belligerent to dreamy.
    The jockey was hooked on this drug which the apologists in their
self-serving ignorance say cannot hook you. He climbs aboard a ton of
horseflesh each time and rides four races that day. He has no depth
perception. Miraculously, the collision which could clearly kill
somehow doesn't happen.
    In every professional sport yet another dimension is clearly linked
to the problem in one way or another. Cops guard the door, managers
often close it to the press for long periods of time but a great many
strange faces don't seem to come under these rules. Any sportswriter
on the same beat for a serious amount of time can tell you about the
faces he does not recognize which flow through with easy access.
    All of the above cases are true but in numerical relation to the
problem, they are a tiny ripple on a very large cesspool. Cocaine has
become the status drug of the rich. In recent years, for the first
time in history, many of our professional athletes are richer than a
lot of the motion picture and music industry people.
    The widespread use of drugs among far too many of the sweat socks
set is an accepted fact. Now the desperate attempt at
self-justification by the users comes down to an old pushers' tale:
    ''Coccaine is non-addictive ... cocaine is simply a drug of social
choice.''
    It's a drug of choice, all right. Just like the other drugs, the
choice is made by the users with a 50,000-pound monkey's foot on
their psyches.
    Not long ago Dr. Larry Kirstein, the Clinical Director of New York's
Regent Hospital and Dr. Jane Karp, a psychiatrist affiliated with the
New York University Medical School, published the results of a
serious study on this drug which so many delude themselves into
believing is a social snort.
    Writing in a magazine called ''Sports Financial Network,'' they came
up with the following results based on research with a control group
of from 248 to 416 subjects. The athletes suffered from: Depression,
83 percent; anxiety, 83 percent; irritability, 82 percent; apathy, 66
percent; paranoia, 65 percent; sexual disinterest (contrary to
popular folk myth), 53 percent; panic attacks, 50 percent.
    Moreover, 82 percent couldn't sleep, 76 percent suffered from
chronic fatigue, 58 percent had nasal sores and bleeding (which may
account for a new operation, the relining of the nasal membranes
which has become so popular among the Hollywood set.
    Some social choices.
    There are those who might wonder why professional sports would be
expected to succeed in the battle against this plague among their
constituency where so many others have failed.
    The reasons are almost simplistic. But to understand them, then, you
have to return to the year immediately following Darrell Porter's
rehabilitation from one of the most extensive (in terms of variety of
useage) individual drug problems in baseball.
    He was sitting in his living room, explaining to a man the way it
was ... the paranoia ... the gun he put to his mouth ... the police
who caught him drugged up at the site of a highway auto crash and
thought they were helping him by letting him go.
    And then he said something which all the commissioners of all the
pro sports ought to think about when they pat themselves on the back
about the impact of their drug and alcohol lectures.
    ''I had been off it and under treatment by the next spring when the
people from the commissioner's office came through. I sat in the
locker room and heard the lecture. I looked around me. I knew people
in the room who had used drugs with me. I knew people in that room
who were still using drugs.
    ''All they did was laugh after the guy left.''
    But contractually professional sports managers have the right to
exert massive controls. It is more a matter of guts.
BJ END IZENBERG
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1653est
n063  1400  06 Feb 85
BC-REVIEW-''MOON''
(Newhouse 017)
Film review, for use when ''Favorites of the Moon'' opens at local
theaters
By RICHARD FREEDMAN
Newhouse News Service
    (UNDATED) To Shakespeare's Falstaff, lecturing young Prince Hal, the
thieves, bawds and cutpurses who hang out in Eastcheap are not
gallows bait, but ''gentlemen of the shade, minions of the moon.''
    In ''Favorites of the Moon,'' a most quirky French film by Soviet
Georgian director Otar Iosseliani, the contemporary Paris underworld
is similarly romanticized as they go about their business of stealing
an elegant 1781 Sevres dinner service and a pensive 19th-century
proto-Balthus nude - and whatever else they can lay their hands on.
    The plates keep getting broken, the painting slashed and stolen, and
the audience considerably puzzled - and annoyed - by the film's
blithe disregard of such bourgeois conventions as plot and
characterization.
    There isn't much dialogue, either, for like Ettore Scola's ''Le
Bal,'' ''Favorites of the Moon'' is so deliberately fragmented that
it has no time or patience for establishing any identities we can
empathize with.
    Instead, it provides an almost cubist rendition of Paris, filled
with brief, meaningless actions and sight gags that aren't as funny
as they're meant to be.
    There's a mad scrimmage for a taxi; a rich kid debonairly sneaking a
cigarette in the rear seat of the limo taking him to school; a
variety of unappetizing hookers; and a mechanic in a basement bomb
factory taking time off from his nefarious activities to repair the
handcuffs of a cop.
    A butcher carving meat is juxtaposed to a dinner-table argument
about vegetarianism; some inept terrorists blow themselves up, while
others destroy a fat, militaristic statue in a park; and two scruffy
beggars discuss the technique of their trade in a Metro station.
    And we see the dogs of Paris going about their doggy business,
unconcerned with what fools these mortals be.
    The sense of Paris, indeed, is the best thing about ''Favorites of
the Moon,'' and all the more remarkable considering the director's
home town is Tblisi, Georgia (he presumably got some help from French
screenwriter Gerard Brach, who also collaborated on ''Maria's
Lovers'').
    But the film's spirit is never quite antic enough to compensate for
its lack of forward thrust - one has the feeling its brief episodes
could be arranged in any random order, or none at all - leaving
''Favorites of the Moon'' a movie strictly for viewers who cherish
sheer eccentricity at almost any price.
    X X X
    FILM CLIP:
    ''FAVORITES OF THE MOON.'' Paris thieves go after an 18th-century
dinner service and a 19th-century nude in this highly eccentric,
plotless and characterless romp which soon outwears its welcome. No
rating. One and a half stars.
JM END FREEDMAN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1659est
n064  1413  06 Feb 85
BC-ADVISORY-newhouse-update
    This is an updated schedule of stories from the Newhouse News
Service. A complete wrapup will follow completion of today's report.
    The Newhouse News Service can be reached at 202-383-7800.
    
    
WEDNESDAY, FEBRUARY 6, 1985
    
    
WASHINGTON
    
    STATE-UNION (Benson - Newhouse) A conciliatory President Reagan,
seeking broad support for his budget, tax reform and arms control
initiatives, delivers his fifth State of the Union address to a joint
session of Congress at 9 p.m. EST. From Washington. Analysis. About
800. (To be sent).
    
    MILRETIRE (Wood - Newhouse) OMB Director David Stockman's
characterization of military retirement pay as a ''scandal'' has
opened one of the Pentagon's smelliest cans of worms: Retirement pay
now tops $18.3 billion a year (compared with $2 billion during
Vietnam), more than the Navy spends on ships or the Air Force on
planes. From Washington. About 800. (To be sent).
    
    CENTRAM-ESCALATE (Hager - Newhouse) The stalemated guerrilla wars in
Nicaragua and El Salvador enter a dangerous new phase of escalation
as government air forces acquire sophisticated gunships and attack
helicopters. From Washington. 800. (Transmitted as Newhouse 013).
    
    STOCKMAN (Benson, 2D story - Newhouse) With his latest attack on
farm programs and the military retirement system, brash and brilliant
OMB Director David Stockman demonstrates once again that he has no
respect for sacred cows. From Washington. Analysis. About 800. (To be
sent).
    
    CRACKDOWN-WASTE (Kahler - Newhouse) Concerned about widespread
violations of the nation's hazardous waste law, federal environmental
officials are cracking down on companies that dispose of their toxic
waste at their own facilities. From Washington. 650. (Transmitted as
Newhouse 001).
    
    THOMAS (Kahler, 2D story - Newhouse) Lee Thomas, President Reagan's
choice to head the Environmental Protection Agency, is unlikely to
make any sweeping changes in environmental policy during his term as
administrator of the once scandal-ridden agency. From Washington.
About 500. (To be sent).
    
    DEFICIT (Garland - Newhouse) Economists long have warned that big
budget deficits will play havoc with the economy - yet as their
warnings grow louder, the economy continues to move along at a rapid
clip. Do deficits matter? Congressional Budget Office Director
Rudolph Penner says there is still reason to worry. From Washington.
About 800. (To be sent).
    
    
DOMESTIC
    
    CORNELIA-WALLACE (Sellers - Newhouse) Former Alabama first lady
Cornelia Wallace is ready to ''get my life back on the high road
again'' after six weeks of treatment at a state mental hospital. The
former wife of Gov. George Wallace says she still is unsure of the
diagnosis of her problems, but ''I've been under a tremendous amount
of emotional stress for several years.'' From Elba, Ala. 350.
(Transmitted as Newhouse 004).
    
    BEATRICE (Jensen - Newhouse) The Beatrice conglomerate's recent
establishment of what is thought to be the most expensive auto racing
sponsorship ever by a U.S. corporation is only one of a series of
calculated moves to make Beatrice Cos. Inc. a world-class competitor
in food and consumer products. From Chicago. For weekend use. 1,000.
(Transmitted as Newhouse 002, 003).
    
    
ENTERTAINMENT
    
    ''CHILD-MURDERS'' (Wisehart - Newhouse) Anyone who dismises ''The
Atlanta Child Murders'' as just another docudrama is in for a
surprise. This is advocacy movie-making with a vengeance. Undated.
Television column, for weekend use. Embargoed in California. 800.
(Transmitted as Newhouse 012).
    
    REVIEW-''HEAVEN'' (Freedman - Newhouse) ''Heaven Help Us'' is a
funny account of what going to parochial school in Brooklyn in the
'60s must have been like, starring Donald Sutherland as the
headmaster. Undated. Film review, for use when ''Heaven Help Us''
opens at local theaters. 500. (Transmitted as Newhouse 007).
    
    REVIEW-''ANTS'' (Freedman, 2D story - Newhouse) ''Where the Green
Ants Dream'' is an illustrated ecology lecture by German director
Werner Herzog, who favors primitivism over civilization. Undated.
Film review, for use when ''Where the Green Ants Dream'' opens at
local theaters. 500. (Transmitted as Newhouse 010).
    
    REVIEW-''MOON'' (Freedman, 3D story - Newhouse) ''Favorites of the
Moon'' is a highly eccentric, plotless and characterless romp that
soon outwears its welcome. Undated. Film review, for use when
''Favorites of the Moon'' opens at local theaters. 450. (Transmitted
as Newhouse 017).
    
    BROADWAY-ELIOT (Raidy - Newhouse) Michael Hastings' powerful drama
about T.S. Eliot, ''Tom and Viv,'' stars Edward Herrmann as the great
poet and Julie Covington as his vastly troubled wife. From New York.
Theater column, for weekend use. 1,100. (Transmitted as Newhouse 014,
015).
    
    POP-THOMPSON (Kanzler - Newhouse) Linda Thompson's new album, ''One
Clear Moment,'' intimately addresses the breakup of her marriage.
From New York. Pop music column, for weekend use. 450. (Transmitted
as Newhouse 011).
    
    
TRAVEL
    
    TRAVEL-ISLANDS (Sleed - Newhouse) The islands of the Turks and
Caicos group are moving into the fast lane of tourism. From
Providenciales, Turks and Caicos Islands. Travel column, for weekend
use. 1,050. (Transmitted as Newhouse 008, 009).
    
    
LIFESTYLE
    
    BRIDAL-FASHION (Gilmore - Newhouse) Traditional is a key word for
the 1985 bride. But the definition of ''traditional'' ranges far and
wide. From New York. About 500. (To b sent).
    
    LANGUAGE (Hulik - Newhouse) Head Unicorn Hunter W.T. ''Bill'' Rabe
discusses his group's crusade to rid the Queen's English of words
that are misused, overused or generally useless. From Ann Arbor,
Mich. 900. (Transmitted as Newhouse 005, 006).
    
    
RB END FREEDMAN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1713est
n065  1420  06 Feb 85
BC-BRIDAL-FASHION
(Newhouse 018)
By BEVERLY GILMORE
Newhouse News Service
    NEW YORK - Traditional is a key word for the 1985 bride. But the
definition of ''traditional'' ranges far and wide.
    It definitely isn't the barefoot meadow wedding of the 1960s, with
the groom in denim overalls. So far, that wave of nostalgia hasn't
swept back in to shore.
    The wedding of a titled English lady who became a princess has
influenced '80s weddings, and so have the ordinary weddings of the
'40s and '50s. Young people have been taking a good look at the
wedding portraits of their parents and grandparents. These
photographs - of satin, lace and net wedding gowns with cathedral
trains - now grace mantels and are inspiring another generation in
search of elegance.
    Romance in bridal fashion, experts say, includes Victorian ruffles,
Southern belle versions of the off-the-shoulder gowns that roamed
Tara's lawn, and French Impressionist painters' soft haze.
    Michele Piccione, vice president of design for Alfred Angelo bridal
gowns, observes that the Impressionist color palette for bridesmaids
includes lavender, fuchsia, iris, mauve rose, apricot and peacock
blue. Tea-length gowns are growing in popularity along with bold
color choices, such as apple red satin for attendants.
    Grooms and attendants are choosing silver, sable, white and
candlelight to coordinate with the women's gowns.
    Barbara Quincy, designer for Murray Hamburger bridal gowns, says
ivory and candlelight tones are alternatives to a white wedding gown.
    Satin ribbon accents and cream lace trims also are popular with
current brides.
    Darlene Katz, bridal gown buyer for J.C. Penney, says
European-influenced, embroidered gowns are the strongest new look for
this spring's brides.
    Dramatic picture hats and tiny pillboxes are the extremes of the
variety in hats. Gloves, particularly lace, are an important
accessory for the bride and attendants.
    Those who are in the business of marketing weddings predict 2.5
million Americans will marry this year. Of these, two-thirds will
marry for the second time, according to the Diamond Information
Center.
    The annual number of marriages in the United States has increased 8
percent over the past five years.
    First-time brides are in their 20s.
    Second-time brides tend to be in their late 30s and 40s. These
executive and encore brides are women who buy what they like in a
wedding gown - without influence or pressures from friends or family.
    Butterick Pattern Co. reports that sales of bridal gown patterns
have increased, as more women (or their mothers) decide to make this
special-occasion dress. A bridal gown that sells for $1,000 in stores
can be sewn in similar fabrics for less than $300.
    The most popular silhouette, according to Joan Watkins, merchandise
director for Vogue patterns, is a defined waist; full, opulent skirt;
and full sleeves. The newest look is a lean line in front and a full,
flowing train behind. It usually features cap or short sleeves and a
boat or a scoop neckline.
RB END GILMORE
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1719est
n066  1428  06 Feb 85
BC-THOMAS
(Newhouse )
By KATHRYN KAHLER
Newhouse News Service
    WASHINGTON - Lee M. Thomas, President Reagan's choice to head the
federal Environmental Protection Agency, isn't likely to make any
sweeping changes in environmental policy during his term as
administrator of the once scandal-ridden agency.
    In his confirmation hearing Wednesday before the Senate Environment
and Public Workk 3/4Committee, Thomas articulated no new policy
directions, and instead pledged to maintain the status quo.
    ''I am committed to a continuation of strong environmenal
leadership,'' Thomas told the committee. ''And, above all else, I am
aware that I am working for the health and welfare of all Americans.''
    Thomas, a career civil servant who worked 21 months as EPA's
assistant administrator for solid waste and emergency response, is
credited with getting the nation's Superfund program to clean up
abandoned dumps back on track after his predecessor, Rita M.Lavelle,
was fired amid charges of political favoritism to industrial
polluters. She was later convicted of perjury and sentenced to six
months in jail.
    ''It will be a top priority of mine to carry out these laws the way
Congress intended ... ,'' he said. ''I am dedicated to fulfilling the
realistic expectations of the American people.''
    In his testimony, Thomas outlined five goals - including
continuation of a strong enforcement program and increased public
access to the agency - that would keep the EPA headed in the
direction set by his predecessor William D. Ruckelshaus, who resigned
in November.
    ''This agency will continue to operate in a fishbowl,'' Thomas said
Wednesday, referring to a statement made by Ruckelshaus shortly after
he returned to the agency in May 1983. ''Openness will be the
hallmark of our agency as long as I am here.''
    Both Democrats and Republicans praised Thomas as an able
administator and a man of integrity. His confirmation by the full
Senate seems assurred.
    ''The record you have established during your tenure at the
Environmental Protection Agency is an impressive one,'' said Maine
Democratic Sen. George J. Mitchell.
    ''We are fortunate to have a nominee of such high caliber for one of
the most important, and most difficult jobs, in the federal
government,'' he added.
    Environmentalists and some members of Congress have questioned
whether Thomas has the clout and political power base to go
head-to-head with policy and budget watchdogs in the Reagan
administration.
    But Committee Chairman Robert T. Stafford (R-Vt.) said in his
opening statement: ''Speaking only for myself, if Lee Thomas does not
have the political stature now, it is his job - indeed, it is his
legal obligation - to develop it. ... It is my intent to assure that
he has the power to make (decisions) according to the law.''
    The 40-year-old bureaucrat has had a meteoric career. He rose from
probation officer in South Carolina in 1968 to head of one of the
federal government's most controversial agencies.
JM END KAHLER
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 727est
n067  1436  06 Feb 85
BC-PHILANTHROPY
By KATHLEEN TELTSCH
c.1985 N.Y. Times News Service
    NEW YORK - David Rockefeller has proposed creating a ''Nobel Prize
in philanthropy'' as part of a nationwide campaign to pncrease
citizen awareness of the need for charitable giving.
    The award would honor ''outstanding examples of where private giving
has met public needs,'' he says. The goal would be to increase giving
and awareness of its importance ''at all levels,'' he adds,
explaining that children who collect money at Halloween for support
of UNICEF ''should be fully as deserving candidates as large
foundations or more fortunate individual philanthropists.''
    ''The potential of private giving is enormous,'' Rockefeller said in
a speech prepared for 400 business, civic and political leaders from
across Texas at a dinner Wednesday night in Fort Worth. ''If
Americans were only to increase their average giving from 2 percent
to 3 percent of income, this would produce $30 billion more each year
for philanthropic purposes.''
    He also deplored provisions in the Treasury Department's tax
simplification plan that would limit itemized deductions for
charitable contributions and disallow such deductions by nonitemizing
taxpayers. He said the proposals were ''sheer folly'' coming at a
time when the Reagan administration was urging an increase in private
giving to compensate for the federal government's budget cuts in
education and social welfare programs.
    He also opposed a proposal to limit deductions for gifts of
appreciated property, asserting that such gifts contributed
substantially to the support of universities, cultural and medical
institutions and that the tax law change would be a ''major
disincentive'' to donors.
    And he also attacked administration proposals to cut urban
development grants, saying this action would mean the death of
public-private initiatives in the low- and middle-income housing
field.
    Rockefeller, who is chairman of the Rockefeller Brothers Fund, one
of the country's wealthiest private philanthropies, acknowledged in
an interview earlier that he chose to speak about philanthropy to the
Texas group because he recognized its potential to contribute
significantly to the support of the country9s nonprofit organizations.
    While there has been increasing worry in philanthropic circles about
the declining rate of growth in new philanthropies nationally, Texas
and southern California are regarded as promising areas because of
prospering high-technology and energy-related industries.
    The idea bf an award in phlanthropy modeled on the Nobel Prizes in
science and literature is ''an interesting concept,'' said Valleau
Wilkie Jr., executive vice president of the Sid W. Richardson
Foundation of Fort Worth. The foundation, which sponsored the dinner,
is a major supporter of public education, health and the arts in its
area.
    Rockefeller said that he had discussed the idea of a philanthropy
prize withha number of individuals, including Rockefeller family
members, but that an award or awards would not be given before autumn
of 1986 at the earliest because the plan was still under
consideration.
    In 1957 Rockefeller and his brothers established the Ramon Magsaysay
Award, honoring a president of the Philippines, now dead. The prizes
of $20,000 continue to be given annually to five Asians for
outstanding service in the public interest and are frequently
referred to as the ''Nobel Prizes of Asia.''
    Rockefeller, whose inherited wealth from banking and real estate
interests ranks him among the country's billionaires, said he did not
subscribe to a school of thinking that looked on wealth as a burden.
    ''There is no doubt in my mind that having money is more desirable
than not having it,'' he said. ''On the other hand, my grandfather
and my parents always taught that the opportunities of possessing
wealth carry with them comparable responsibilities. Giving, if it is
well done, can be deeply rewarding and a lot of fun.''
    
nyt-02-06-85 1735est
n068  1442  06 Feb 85
BC-BROADWAY-ELIOT 1stadd
(REPEATING Newhouse 015 - Fixing garbles)
Raidy - NEW YORK X X X muse.
    Russell was right! Viv did strike back, often very effectively. When
her husband rather cravenly filed papers of separation in America,
while he had a six months lectureship at Harvard, she attended a
performance of one of his early plays (in 1933), ''The Rock,''
carrying a placard which read: ''I Am The Wife He Has Deserted.''
    Although when young Eliot was warned shortly after his rushed-into
marriage that his wife was unstable, he insisted: ''Vivie is my life.
I owe her everything; I will look after her,'' playwright Hastings,
explicitly, lets his audience know otherwise.
    Vivien Eliot may have been his muse, as well as the creative
irritant that produced so many of his great poems that expressed the
isolation of the individual and the anguish and barrenness of modern
life. There is no doubt that she helped him with some of his most
famous poems such as ''The Waste Land'' and named the magazine he
edited (and in which her own poems appeared) ''The Criterion.'' We do
know, also, that the poet, who was a long time trustee of Vivien's
father's estate, conveniently left her to linger until her death in
1947 in a mental institution and that he also arranged to have his
dedication to her for his ''Ash Wednesday'' removed from the text in
the 1960s.
    Eliot was an orderly man, who loathed any visible fuss. I remember
the late theater critic, cultural historian and stage director Harold
Clurman describing how disappointed he was in attending one of the
poet's readings. He said: ''I was rather put off by T.S. Eliot when I
heard him read parts of 'The Waste Land' and others of his poems at
the New School for Social Research in the early 30s. He had fine,
regular features, he was tall and thin, wore a long black frock coat,
and was strikingly pale-faced. There was something condescending,
almost mocking, in his attitude toward the audience.
    ''He intoned the verse, a disagreeable mode of reading common among
poets and especially wrong for Eliot's poetry. He looked for all the
world like a highly bred Anglican cleric.''
    There was a lot more torment ... and, one hopes, guilt ... behind
that pale-faced visage of the ''Anglican cleric'' than people knew.
BJ END RAIDY
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1741est
n069  1453  06 Feb 85
BC-MILRETIRE
(Newhouse 020)
MILITARY RETIREMENT ONE OF PENTAGON'S SMELLIEST CANS OF WORMS
Analysis
(Note to editors: Language in 5th graf may be offensive to some
readers)
By DAVID WOOD
Newhouse News Service
    WASHINGTON - The Pentagon is setting aside more money this year to
pay retirement benefits than it is for buying Navy ships or Air Force
fighter jets.
    The retirement cost, budgeted at more than $18 billion, is more than
it takes to operate the entire U.S. Army for a year, and could buy
all the Army's weapons and the Air Force's missiles with enough left
over to fund the MX missile and the ''star wars'' Strategic Defense
Initiative.
    The average serviceman who draws from this fund is retiring from a
non-combat job. He is 42 years old and will draw half-pay for more
years than he spent in the service - along with low-cost housing
loans, medical service and other benefits. In most cases his
second-career job will earn him a salary equivalent to that of those
who never served.
    That's one side of what is perhaps the most complex and emotional
issue in Washington - the side White House Office of Management and
Budget Director David Stockman has called ''a scandal.''
    The other side appears equally compelling. ''Goddamn it, if they
want to sit somewhere in a freaking field and have somebody shooting
at them, they can have my salary - if they survive,'' growls retired
Marine Corps Maj. Gen. Fred Haynes, who fought in World War II, Korea
and Vietnam. ''I fought for my country and I earned my retirement,
and I resent any criticism of what I believe I rightly earned.''
    Between the extremes, and almost forgotten in Washington's frenzy
over Stockman's comments, is yet another issue: How efficient is the
current retirement system in shaping an effective military force?
    Most analysts believe it isn't very efficient. With half-pay
available after 20 years of service, the system tends to encourage
servicemen to stay for 20 years and then retire, whether the military
needs them or not.
    More effective, most analysts believe, would be a system that
rewards all servicemen for their sacrifices, but at a lower level
than today. Additional compention should be given to specialists,
such as the combat officers and senior non-commissioned officers who
are the backbone of any fighting force, to stay in the service.
    Such reforms would chip away at the current military structure,
which is top-heavy with career officers who have little to do except
fill make-work slots in the military bureaucracy, says Edward
Luttwak, senior fellow at the Georgetown University Center for
Strategic and International Studies.
    ''Stockman is showing the frustration many people have about the
military's reluctance to throw people out,'' says Martin Binkin, a
military manpower expert at the Brookings Institution, a private
research organization.
    The Pentagon leadership has resisted changing the military
retirement system. There have been dozens of critical studies in the
past decade, many of them produced by lower-ranking military officers
in the Pentagon.
    In one typical study, the officers concluded there is ''no
compelling evidence that a military career is sufficiently unique to
justify the current system. We reject the notion that the current
system is a fundamental underpinning of the military way of life.''
    Like many retired officers, Haynes, whose pension provides half of
his income as a defense consultant, accepts the need for reform. ''I
don't think we can afford high pensions,'' he says. ''But we need to
be careful about tampering with the fabric of the system. Any reform
has to be phased.''
    Two years ago, the Pentagon commissioned yet another in-depth look
at the retirement system. After lengthy study, recommendations were
forwarded to Defense Secretary Caspar W. Weinberger - and never were
seen again.
    A statement issued Wednesday by Weinberger defended the current
retirement system, but made no reference to the recommendations for
reform.
    Lawrence J. Korb, the Pentagon's manpower chief and one of the
report's authors, says preliminary consultations with Congress
indicated little support dor the reforms. He concedes there was
''some'' opposition to it within the Pentagon as well.
    ''You just can't get a consensus'' on reforming the system, Korb
says. ''But the thing is, the system seems to be working well now,
and even if you change it, you won't save any money for 20 years.
There's no quick savings, unless you do something unethical or
unfair.''
    ''The military services didn't want anybody diddling with their
retirement system, and we haven't yet had a secretary of defense who
would push the services into it,'' Binkin says. ''The question is,
how much coddling does the military need?''
    One proposal with wide support in Congress this year would deny full
cost-of-living adjustments to military retirees until age 62. That
would save a cumulative $5 billion a year.
    Retirees normally receive a full cost-of-living adjustment to keep
pace with inflation. For fiscal 1986, the Pentagon has proposed no
cost-of-living adjustment.
RB END WOOD
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1752est
n070  1502  06 Feb 85
BC-LATE-BUDGET-(Balt.)
    
     Here is the late Baltimore Sun News Service budget for morning
papers of Thursday, February 7, 1985. Regular features that always
move on this cycle are described at the end. A summary of everything
moved on this cycle will move at 11 P.M. The editor is James Keat. He
can be reached at 301 332 6188.
    
     INTERNATIONAL
    
     ANZUS - Washington - The U.S. drops use of Australian support for
MX missile system, says it will have no impact on the two nations'
relations within ANZUS treaty. The story includes a discussion of the
New Zealand situation. - (700) - By Gilbert Lewthwaite - BC
    
     Korea - Seoul. - On the eve of Kim dae Jung's return, the
government prepares. It is trying to assure that Kim's return will
have a minimal impact on that nation's political life, and says it
intends to enforce its ban on Mr. Kim's participation in politics. -
(1,000 In 2 takes) - By Anthony Barbieri, Jr. - BC
    
     Soviets - Moscow. - President Chernenko's river diversion plan,
which was approved by the central committee in October, comes under
criticism by scientists. - (600) - By Antero Pietila - BC
    
     Hijack - London. - Reports from the Soviet Union say four young
people who tried to hijack a plane to the West have not been
executed, despite their condemnation. This is unusual in the Soviet
Union where retribution is usually swift and other reports say the
death sentences of the hijackers have been commuted. - By The Sun's
London Bureau Staff - BC
    
     Mathias - Moscow. - Senator Mathias meets with Foreign Minister
Gromyko. He recalls the war time alliance. - (200) - By Antero
Pietila - BC
    
     NATIONAL
    
     Speech - The President delivers State of Union, the first of his
second term, to joint session of Congress at 9 p.m. Main story will
move in advance of delivery. - (1,400 in 2 takes) - By Robert Timberg
-BC
    
     Analysis - What the speech tells about the second term of a Reagan
administration and the President himself - (800) - By Fred Barnes - BC
    
     Reaction - From supporters and the opposition, including the
Democrats' TV response - (800) - By Nancy J. Schwerzler - BC
    
     Tax - What the President does or does not say about the tax reform
proposal. Tentative - (700) - By Stephen E. Nordlinger - BC
    
     USA - A historical look at state of union speeches - (900) - By
Ernest B. Furguson - BC
    
     Stockman - Weinberger says Stockman's remarks yesterday about
military pensions defame the military. White House says Budget
Director spoke for himself when he lambasted military pensions and
farmer payments yesterday. Republican leadership supports him, but
other members of Congress are not so kind - (600) - By Nancy J.
Schwerzler -  BC
    
     Budget - Congressional Budget Office warns Congress of
''explosive'' growth of interest payments caused by rapid rise of
national debt. Rudolph Penner, CBO head, says it would be
''disastrous'' for Congress to fail to cut spending this year. For
every dollar cut today, he says, government would save 70 cents in
interest payments in 1990 - (700) - By Stephen E. Nordlinger - BC
    
     EDITORIALS & COMMENTARY
    
     Editorial - 'Marching as to. . .' - (300) - The Baltimore Evening
Sun - BC - (Moved Earlier)
    
     South - Before the close of the Civil War, even as in antebellum
days, the region was united commercially, if by no other ingredient
than slave trading. It was a distinct terror for blacks of the upper
South to be sold to Georgia-America's Gulag Archipelago in real and
imaginary terms. - (950) - By Leroy Graham - The Baltimore Evening
Sun - BC - (Moved Earlier)
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     SPORTS
    
     MORE
    
    
nyt-02-06-85 1801est
n071  1509  06 Feb 85
BC-LATE-BUDGET-1stadd-(Balt.)
    
     pickup xxx SPORTS
    
     Bogues - The Detroit News and the New York Post called Monday, USA
Today was down to visit over the weekend and a reporter from Gannett
News Service dropped by yesterday. Take a number and wait your turn,
the national media has discovered Tyrone Bogues. Suddenly he's more
in demand than a new imported mustard at a Yuppie gourmet shop. -
(800) -  By Molly Dunham - The Baltimore Evening Sun - BC - (Moved
Earlier)
    
     Racing - Part III of a five part series - Two's company but three
is sometimes trying when you get a trio of racing's biggest names
under one garage roof. That's the way it is for Junior Johnson,
Darrell Waltrip and Neil Bonnett. - (1,050 In 2 Takes) - By Sandra
McKee - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     BUSINESS AND FINANCIAL
    
     Barge - With the launching this week of his new barge service, Hale
Container Line Inc., Edwin F. Hale hopes to capitalize on the move
toward ''load centers''-the emerging practice of large container
ships calling only a few ports. Cargo from other ports then is fed by
barge and truck to these load centers. - (700) - By Ross Hetrick -
The Baltimore Evening Sun - BC - (Moved Earlier) - BC
    
     ENTERTAINMENT & CULTURE
    
     Hunter - Oscar nominations are announced - (1,350 in 2 takes)- By
Stephen Hunter - BC
    
     Carter - The city of Atlanta sued CBS over portrayal of Wayne
Williams investigation in Sunday's ''Atlanta Child Murders''
television movie. - (700) - By Bill Carter- BC - (Moved Earlier)
    
     Stamps - Picture post card collectors claimed the top awards at
last weekend's Chesapex '85, the annual winter stamp show sponsored
by Baltimore's Chesapeake Philatelic Society. - (650) - (ADVANCE FOR
SUNDAY FEBRUARY 10,) - By Jesse Glasgow - BC - (Moved Earlier)
    
     Cedrone - A review of Derek Jacobi, who minces through the Royal
Shakespeare Company's production of ''Much Ado About Nothing,'' does
a complete turnabout in ''Cyrano de Bergerac.'' Both plays are being
done in repertory at the Kennedy Center in Washington. - (550) - By
Lou Cedrone - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     FEATURES
    
     Pets - The dog is a naturally curious, intelligent little fellow
who entertains the neighborhood by sitting up and begging for food or
attention. He'll shake hands with enthusiasm, and when asked to box,
Alfonzo simulates a bout of fisticuffs with his paws. - (400) - By
Ellen Hawks - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     ETC. - I had lunch with my trendy friend Rhonda yesterday. She'd
just had her nails done with special designs that will last for a
week, if she's lucky, and eyeliner put on her eyelids that will last
for life.Have you heard of the permanent eyeliner procedure? - (450)
- By Elise T. Chisolm - The Baltimore Evening Sun - BC - (Moved
Earlier)
    
     End Baltimore Sun's Late Budget
      1/4
    
nyt-02-06-85 1808est
n072  1516  06 Feb 85
BC-THOMAS
(REPEATING Newhouse 019 to include committee confirmation)
By KATHRYN KAHLER
Newhouse News Service
    WASHINGTON - Lee M. Thomas, President Reagan's choice to head the
federal Environmental Protection Agency, isn't likely to make any
sweeping changes in environmental policy during his term as
administrator of the once scandal-ridden agency.
    In his confirmation hearing Wednesday before the Senate Environment
and Public Works Committee, Thomas articulated no new policy
directions, and instead pledged to maintain the status quo.
    ''I am committed to a continuation of strong environmenal
leadership,'' Thomas told the committee. ''And, above all else, I am
aware that I am working for the health and welfare of all Americans.''
    Thomas, a career civil servant who worked 21 months as EPA's
assistant administrator for solid waste and emergency response, is
credited with getting the nation's Superfund program to clean up
abandoned dumps back on track after his predecessor, Rita M.Lavelle,
was fired amid charges of political favoritism to industrial
polluters. She was later convicted of perjury and sentenced to six
months in jail.
    ''It will be a top priority of mine to carry out these laws the way
Congress intended ... ,'' he said. ''I am dedicated to fulfilling the
realistic expectations of the American people.''
    In his testimony, Thomas outlined five goals - including
continuation of a strong enforcement program and increased public
access to the agency - that would keep the EPA headed in the
direction set by his predecessor William D. Ruckelshaus, who resigned
in November.
    ''This agency will continue to operate in a fishbowl,'' Thomas said
Wednesday, referring to a statement made by Ruckelshaus shortly after
he returned to the agency in May 1983. ''Openness will be the
hallmark of our agency as long as I am here.''
    Both Democrats and Republicans praised Thomas as an able
administator and a man of integrity. The committee then unanimously
approved his nomination by a 16-0 vote. His confirmation by the full
Senate seems assurred and may come as early as Thursday.
    ''The record you have established during your tenure at the
Environmental Protection Agency is an impressive one,'' said Maine
Democratic Sen. George J. Mitchell.
    ''We are fortunate to have a nominee of such high caliber for one of
the most important, and most difficult jobs, in the federal
government,'' he added.
    Environmentalists and some members of Congress have questioned
whether Thomas has the clout and political power base to go
head-to-head with policy and budget watchdogs in the Reagan
administration.
    But Committee Chairman Robert T. Stafford (R-Vt.) said in his
opening statement: ''Speaking only for myself, if Lee Thomas does not
have the political stature now, it is his job - indeed, it is his
legal obligation - to develop it. ... It is my intent to assure that
he has the power to make (decisions) according to the law.''
    The 40-year-old bureaucrat has had a meteoric career. He rose from
probation officer in South Carolina in 1968 to head of one of the
federal government's most controversial agencies.
JM END KAHLER
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1815est
n073  1527  06 Feb 85
BC-MARKETPLACE
(BizDay Commentary)
By VARTANIG G. VARTAN
c.1985 N.Y. Times News Service
    NEW YORK - Last June, when most investors were worrying over the
stock market, Charles Allmon made his move. In the accounts that he
manages for clients, he went from a big cash position to 75 percent
invested.
    ''Right now we are about 95 percent invested,'' Allmon said this
week in Chevy Chase, Md., where he tends $165 million in managed
accounts, divided about equally between individual and institutional
clients. He also publishes two well-known investment advisory reports
- Growth Stock Outlook and Junior Growth Stocks.
    In June Allmon snapped up a host of stocks, including Wallace
Computer Services, Longs Drug Stores, Fort Howard Paper, J.M.
Smucker, Revco D.S. and Matrix Corp. He also added to holdings that
ranged from Noxell Corp. and Lin Broadcasting to Lamaur Inc. and
Laidlaw Industries.
    Generally these issues have performed well since that time. Revco,
which operates a chain of self-service discount drugstores, was an
exception. ''There was internal squabbling among some large
stockholders in the company,'' Allman said. ''We sold most of our
position in the stock and got out about even.''
    Portfolios under his management contain about 240 issues, many of
them stocks trading in the over-the-counter market. The 63-year-old
Allmon, a former illustrations editor at National Geographic, started
his advisory service in 1965.
    ''Over the years we have found that the big gainers are in the
over-the-counter market,'' he said. ''We generally don't own any
stocks that you find in the Dow Jones industrial average. But if new
accounts come in with some holdings of, say, IBM we will abide by the
client's wishes and retain the stock.''
    For every money manager, learning is a constant process in the
equity market. ''Patience sometimes is worth more than money,''
Allmon said. ''Some of my biggest mistakes were made in selling
stocks too soon, a decision often made because I don't like high
price-earnings multiples.''
    Liz Claiborne, a designer of women's apparel, is one stock that the
Chevy Chase portfolio manager acknowledges selling too soon.
    So what has he been buying in recent weeks?
    ''We've expanded our position in American Income Life Insurance,''
Allmon said. ''Within the last two weeks we've been buyers of such
varied stocks as Weldotron Corp. Worthington Industries, American
Stores, American President Companies, C.R. Gibson, Lawson Products,
Fortune Financial Group, RPM Inc., Greenman Brothers, the George
Banta Co., Software Publishing and Circuit City Stores, along with
Bindley Western Industries, an ethical drug wholesaler.''
    Managed accounts under his direction also have invested in a number
of regional bank stocks, some of which he believes might become
takeover candidates if nationwide banking arrives.
    Bank stocks in the various portfolios include State Street Boston
Corp., Bank of New England, First Tennessee National, Citizens and
Southern Georgia Corp., First Virginia Banks and Hibernia Corp.
    Obviously, with such a diversified list of holdings, there have been
some disappointing investments along the way. Allmon named two issues
that were purchased above current market prices - M. Kamenstein Inc.,
manufacturers of wood household products, and California Amplifier,
producers of microwave amplifiers.
    One of Allmon's longtime favorites that recently came under some
pressure in the market is Conwood Corp., a maker of smokeless tobacco
products. ''From time to time there are reports of health dangers in
snuff and chewing tobacco, but I am confident that in the long run
Conwood will prove a sound investment,'' he said. ''The company's
earnings have grown steadily, and its financial position is very
impressive.''
    The portfolios in recent years have benefited from takeovers and
management buyouts. In early February, for example, an investor group
made an offer intended to take Multimedia Inc. private. The newspaper
and broadcasting company is held in managed accounts. In January,
Duckwall-Alco Stores, another holding, was the recipient of a
leveraged buyout offer by management. Duckwall operates discount
department and variety stores.
    Allmon said the total return - market appreciation plus dividends -
has averaged about 19 percent annually over the last 10 years in
accounts under management. This compares with a gain of just under 15
percent annually for Standard & Poor's 500-stock index during the
same period.
    Although the Allmon portfolios tend to be dominated by small,
growth-oriented companies, about 20 percent of the assets under
management is kept in a selection of large, readily marketable
stocks. These include Abbott Laboratories, Bristol-Myers, Longs Drug
Stores, Capital Cities Communications and R.J. Reynolds Industries.
The object here, Allmon explained, is to provide ''instant
liquidity'' if the need arises.
    
nyt-02-06-85 1826est
n074  1536  06 Feb 85
BC-LATE-BUDGET-2takes-(Balt.)
    
     Here is the late Baltimore Sun News Service budget for morning
papers of Thursday, February 7, 1985. Regular features that always
move on this cycle are described at the end. A summary of everything
moved on this cycle will move at 11 P.M. The editor is James Keat. He
can be reached at 301 332 6188.
    
     INTERNATIONAL
    
     ANZUS - Washington - The U.S. drops use of Australian support for
MX missile system, says it will have no impact on the two nations'
relations within ANZUS treaty. The story includes a discussion of the
New Zealand situation. - (700) - By Gilbert Lewthwaite - BC
    
     Korea - Seoul. - On the eve of Kim dae Jung's return, the
government prepares. It is trying to assure that Kim's return will
have a minimal impact on that nation's political life, and says it
intends to enforce its ban on Mr. Kim's participation in politics. -
(1,000 In 2 takes) - By Anthony Barbieri, Jr. - BC
    
     Soviets - Moscow. - President Chernenko's river diversion plan,
which was approved by the central committee in October, comes under
criticism by scientists. - (600) - By Antero Pietila - BC
    
     Hijack - London. - Reports from the Soviet Union say four young
people who tried to hijack a plane to the West have not been
executed, despite their condemnation. This is unusual in the Soviet
Union where retribution is usually swift and other reports say the
death sentences of the hijackers have been commuted. - By The Sun's
London Bureau Staff - BC
    
     Mathias - Moscow. - Senator Mathias meets with Foreign Minister
Gromyko. He recalls the war time alliance. - (200) - By Antero
Pietila - BC
    
     NATIONAL
    
     Speech - The President delivers State of Union, the first of his
second term, to joint session of Congress at 9 p.m. Main story will
move in advance of delivery. - (1,400 in 2 takes) - By Robert Timberg
-BC
    
     Analysis - What the speech tells about the second term of a Reagan
administration and the President himself - (800) - By Fred Barnes - BC
    
     Reaction - From supporters and the opposition, including the
Democrats' TV response - (800) - By Nancy J. Schwerzler - BC
    
     Tax - What the President does or does not say about the tax reform
proposal. Tentative - (700) - By Stephen E. Nordlinger - BC
    
     USA - A historical look at state of union speeches - (900) - By
Ernest B. Furguson - BC
    
     Stockman - Weinberger says Stockman's remarks yesterday about
military pensions defame the military. White House says Budget
Director spoke for himself when he lambasted military pensions and
farmer payments yesterday. Republican leadership supports him, but
other members of Congress are not so kind - (600) - By Nancy J.
Schwerzler -  BC
    
     Budget - Congressional Budget Office warns Congress of
''explosive'' growth of interest payments caused by rapid rise of
national debt. Rudolph Penner, CBO head, says it would be
''disastrous'' for Congress to fail to cut spending this year. For
every dollar cut today, he says, government would save 70 cents in
interest payments in 1990 - (700) - By Stephen E. Nordlinger - BC
    
     EDITORIALS & COMMENTARY
    
     Editorial - 'Marching as to. . .' - (300) - The Baltimore Evening
Sun - BC - (Moved Earlier)
    
     South - Before the close of the Civil War, even as in antebellum
days, the region was united commercially, if by no other ingredient
than slave trading. It was a distinct terror for blacks of the upper
South to be sold to Georgia-America's Gulag Archipelago in real and
imaginary terms. - (950) - By Leroy Graham - The Baltimore Evening
Sun - BC - (Moved Earlier)
    
     Other-hand - Short comments on today's world. - (100) - By Dan
Berger - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     SPORTS
    
     MORE
    
    
nyt-02-06-85 1835est
n075  1543  06 Feb 85
BC-LATE-BUDGET-1stadd-(Balt.)
    
     pickup xxx SPORTS
    
     Bogues - The Detroit News and the New York Post called Monday, USA
Today was down to visit over the weekend and a reporter from Gannett
News Service dropped by yesterday. Take a number and wait your turn,
the national media has discovered Tyrone Bogues. Suddenly he's more
in demand than a new imported mustard at a Yuppie gourmet shop. -
(800) -  By Molly Dunham - The Baltimore Evening Sun - BC - (Moved
Earlier)
    
     Racing - Part III of a five part series - Two's company but three
is sometimes trying when you get a trio of racing's biggest names
under one garage roof. That's the way it is for Junior Johnson,
Darrell Waltrip and Neil Bonnett. - (1,050 In 2 Takes) - By Sandra
McKee - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     BUSINESS AND FINANCIAL
    
     Barge - With the launching this week of his new barge service, Hale
Container Line Inc., Edwin F. Hale hopes to capitalize on the move
toward ''load centers''-the emerging practice of large container
ships calling only a few ports. Cargo from other ports then is fed by
barge and truck to these load centers. - (700) - By Ross Hetrick -
The Baltimore Evening Sun - BC - (Moved Earlier) - BC
    
     ENTERTAINMENT & CULTURE
    
     Hunter - Oscar nominations are announced - (1,350 in 2 takes)- By
Stephen Hunter - BC
    
     Carter - The city of Atlanta sued CBS over portrayal of Wayne
Williams investigation in Sunday's ''Atlanta Child Murders''
television movie. - (700) - By Bill Carter- BC - (Moved Earlier)
    
     Stamps - Picture post card collectors claimed the top awards at
last weekend's Chesapex '85, the annual winter stamp show sponsored
by Baltimore's Chesapeake Philatelic Society. - (650) - (ADVANCE FOR
SUNDAY FEBRUARY 10,) - By Jesse Glasgow - BC - (Moved Earlier)
    
     Cedrone - A review of Derek Jacobi, who minces through the Royal
Shakespeare Company's production of ''Much Ado About Nothing,'' does
a complete turnabout in ''Cyrano de Bergerac.'' Both plays are being
done in repertory at the Kennedy Center in Washington. - (550) - By
Lou Cedrone - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     FEATURES
    
     Pets - The dog is a naturally curious, intelligent little fellow
who entertains the neighborhood by sitting up and begging for food or
attention. He'll shake hands with enthusiasm, and when asked to box,
Alfonzo simulates a bout of fisticuffs with his paws. - (400) - By
Ellen Hawks - The Baltimore Evening Sun - BC - (Moved Earlier)
    
     ETC. - I had lunch with my trendy friend Rhonda yesterday. She'd
just had her nails done with special designs that will last for a
week, if she's lucky, and eyeliner put on her eyelids that will last
for life.Have you heard of the permanent eyeliner procedure? - (450)
- By Elise T. Chisolm - The Baltimore Evening Sun - BC - (Moved
Earlier)
    
     End Baltimore Sun's Late Budget
      1/4
    
nyt-02-06-85 1842est
n076  1555  06 Feb 85
AM-POPE
Rules Out Papal Role in Central America
By E.J. DIONNE
c.1985 N.Y. Times News Service
    ROME - Pope John Paul II said Wednesday that he saw no need for
papal diplomacy in Central America now and that the efforts of
bishops in the region were sufficient.
    The 64-year-old pontiff spoke as he returned home after a grueling
12-day visit to South America and a brief stop in the Caribbean. He
said that any possible intervention by the Vatican in Central America
could not be compared to its successful mediation of the conflict
between Chile and Argentina over the Beagle Channel.
    ''That was a special situation,'' he said. ''The governments of both
Chile and Argentina had asked the Holy See for mediation.'' Of
Central America, he said, ''I don't know what kind of mediation there
could be.''
    In the case of Chile and Argentina, he went on, ''there was a danger
of a war,'' while in Central America, the situation was more
complicated. ''Here it is guerrilla,'' John Paul said. ''It's not
war, it's violence.''
    He noted that the bishops of El Salvador were active in promoting
mediation. ''It's not necessary to introduce the pope when the
bishops are sufficient,'' he said.
    The pope's comments came in a series of conversations with
individual reporters in a multiplicity of languages aboard the plane.
The occasions, which have come to be known as the pope's
''walk-around'' of the papal plane, are the closest thing to a papal
news conference.
    While the pope was in Venezuela, which is a member of the
four-nation Contadora group that is seeking a negotiated settlement
in Central America, both Venezuelan officials and leaders of the
Salvadoran Roman Catholic Church sought to encourage his involvement
in mediating the conflict in the region. However, Vatican officials
had said that the pope did not want to become involved in a fruitless
exercise.
    John Paul, discussing his trip to Peru, said he had spoken out
against the Shining Path guerrillas there in order to end the ''human
crime'' of banditry.
    He said he was not sure if the bombs set off Monday night by the
guerrillas were intended as a response to his dramatic call on them
to give up their violent struggle. The bombs blacked out large
sections of Lima.
    ''It seems to be, but it's not sure,'' the pope said. ''But I am
convinced that it was necessary to go there and to speak there and to
say all that.''
    ''That they will cease and change their attitude and their
comportment is another question,'' he said of the Shining Path.
    The pope's strong words against the guerrillas were not matched by
equally strong language against alleged human rights violations by
the Peruvian military in its war on Shining Path. The pope's
strongest comments to the government were a call on it to gain ''the
confidence of the people.''
    Asked if he had spoken out less strongly on human rights at the
request of Peru's bishops, the pontiff, traditionally a strong
advocate of human rights, replied: ''They are very, very satisfied
with the speech.''
    It has been suggested that the Peruvian bishops may have urged the
pope not to speak too strongly against the government. A
democratically elected leadership that replaced military rule, the
Peruvian government is seen as threatened by the guerrillas, a badly
faltering economy and the possibility of a new military takeover.
    The pope, speaking in English, said he thought it important to speak
out against ''human crime'' and what he called ''banditism.''
    John Paul also said he did not want to lay out an agenda for
November's Synod of Bishops on the results of the Second Vatican
Council.
    ''I would not want to say anything so I don't, in a manner of
speaking, block any roads,'' the pope said. ''It should be studied
collegially, with the help of the episcopates.''
    But he added: ''This must be a reconfirmation of the Second Vatican
Council, a very strong reaffirmation of it as the road of the church,
the road asked for by the Lord.''
    He said that the churches in various countries faced different
problems and that this should be taken into account in the synod.
''The church, in that sense, is always more pluralisctic.''
    The pope said that one of the positive aspects of his trip to Latin
America was his discovery of ''the vitality of the faith.''
    ''They are not a passive people,'' he said.
    But the pontiff added that he was moved by the ''unacceptable
poverty'' he saw. The poverty, he said, reached ''the point where one
asks, 'What do these people do to live?'''
    ''The hunger for God: This must remain,'' the pope said. ''The
hunger for bread must go away.''
    John Paul said it was ''very hard to judge'' the effect of his visit
on those in the church who favor a theology of liberation.
    He said he supported a theology of liberation, but that there were
''many currents'' within the movement. ''It's a delicate issue,'' he
said.
    Asked about statements in which Gustavo Gutierrez, the leading
Peruvian exponent of liberation theology, said he agreed with the
pope's comments, John Paul replied: ''It means that the pope tells
the truth.''
    Asked why he looked so fresh after his journey, which included 45
speeches in 17 cities, the pope said he was subject to ''a different
sort of management.''
    ''A management from above,'' he said with a smile.
    
nyt-02-06-85 1854est
n077  1600  06 Feb 85
BC-NYT-BUDGET-06 Addsked
Add N.Y. Times News Service sked for papers of Thursday, Feb. 7, 1985:
    
INTERNATIONAL
    Washington - AUSTRALIA (Reskedding) - In the latest sign of trouble
in the 31-year-old ANZUS alliance, Prime Minister Bob Hawke startled
U.S. officials on Tuesday night when he told them that because of a
rebellion of left-wing members of his ruling Labor Party, he would
have to renege on his commitment to allow the U.S. logistical support
for the monitoring of the MX test in the Taxmanian Sea. By Bernard
Gwertzman.
    Jerusalem - AUSCHWITZ - Jewish twins, others recall their ordeal at
the hands of Dr. Mengele. By Thomas L. Friedman.
    
NATIONAL GENERAL
    Wisner, Neb. - FARMBANK - A small-town bank explains why it can't do
much to help farmers. By William Robbins.
    Washington - RESEARCH - The House Science and Technology Committee
will launch the most extensive congressional study of American
science policy in two decades Thursday with an agenda that challenges
virtually all aspects of the way science is funded and evaluated in
this country. By Phillip Boffey.
    Washington - RETIRE - Budget Director Stockman's attack on the
military pension system set off a political storm Wednesday,
prompting speculation that he may be on his way out. By Bill Keller.
    New York - WESTMORELAND - Gen. McChristian testifies in general's
libel suit against CBS. By M.A. Farber.
    New York - YORKPORT - The average cost of shipping a container of
cargo through New York would decline by as much as one-third under an
agreement announced Wednesday by the industry, the longshoremen's
union and the Port Authority. By Sam Roberts.
    Hollywood - OSCARS - Oscar nominees announced. By Aljean Harmetz.
    New York - PHILANTHROPY - David Rockefeller, in speech, proposes a
Nobel Prize for philanthropy. By Kathleen Testsch.
    
FINANCIAL
    Washington - CARBIDE - Judicial panel rules that lawsuits filed in
the United States in the Union Carbide gas lead in Bhopal, India,
will be combined and heard in U.S. District Court in New York. By
Stuart Taylor.
    
    Gary E. McCardell is in the slot. Should you have questions about
the news report, you may reach him at (212) 556-1927.
    
nyt-02-06-85 1859est
n078  1610  06 Feb 85
BC-DEFICIT
(Newhouse 021)
By SUSAN B. GARLAND
Newhouse News Service
    WASHINGTON - For several years, economists have been warning about
the severe impact on the economy of huge budget deficits. Yet as
deficits grow larger and economists' warnings grow louder, the
economy continues to move along at a rapid clip.
    Are the economists wrong?
    That's what Sen. James R. Sasser, D-Tenn., wanted to know Wednesday
when Rudolph G. Penner, director of the nonpartisan Congressional
Budget Office, testified that the ''combination of growing deficits
and relative economic prosperity is without precedent in peacetime
history.''
    During a hearing of the Senate Budget Committee, Sasser asked a
question on the minds of many: ''Do deficits really matter?''
    Penner's answer: ''I think they matter a great deal.''
    Penner pointed to today's historically high interest rates and said
''a good part of it is due to deficits.''
    ''We do believe deficit reduction would lower real interest rates,''
he said.
    These higher interest rates, he said, have attracted foreign
investors, who bid up the price of the dollar in their competition
for currency to invest.
    ''This has made sectors competing in international trade very
depressed,'' Penner said, referring specifically to agriculture and
the steel and automobile industries.
    At the same time, Penner said, this influx of foreign money has
prevented the deficit from playing havoc with the economy. Without
foreign capital to finance the deficit, interest rates would be much
higher, he said.
    To finance a deficit, the federal government must borrow money. But
there is not enough domestic savings both to finance the deficit and
to provide for adequate investment. Foreign capital has made it
possible to do both comfortably. Without foreign funds, money to
borrow would be so scarce that interest rates would skyrocket and
''investment spending would be very weak,'' Penner said.
    Penner warned that the U.S. dependency on foreign investment is the
economy's ''biggest risk.'' An abrupt withdrawal of foreign capital
would ''convert the recovery into a recession.''
    ''Interest rates would increase and inflation would rise because the
dollar would fade,'' Penner said.
    Under those circumstances, the Federal Reserve Board may be tempted
to finance the government by creating money, which would be ''highly
inflationary,'' he said.
    ''We're living real well on borrowed money,'' Penner said.
    Penner said that without any changes in spending, the deficit would
would rise from this year's forecast of more than $200 billion, to
nearly $300 billion by 1990. With a recession, the deficit could
reach $425 billion by 1990.
    Without changes in fiscal policy, the Congressional Budget Office
estimates that the rapid accumulation of debt to finance the deficit
is ''outpacing the growth in the economy by a wide margin'' -
reaching $2.8 trillion in 1990, compared with $1.3 trillion at the
end of fiscal 1984.
    Net interest costs on the debt is the fastest-growing category of
spending, and the CBO estimates that interest would rise from $111
billion last year to $230 billion in 1990 unless the deficit is
reduced.
    The CBO chief that it would be ''disastrous'' for Congress to put
off deficit reduction this year, and said that for every dollar cut
today, the government would save 70 cents in interest payments in
1990.
    Penner said the rapidly growing debt means that ''the living
standards of future generations of Americans will be gradually
lowered compared with what they could be if fiscal policies were more
prudent.''
    On the long-term consequences of the deficit, Penner said that
growing U.S. government debt could replace more private equity and
debt in the portfolio of private investors, and would crowd out
private investment projects that otherwise would have been undertaken.
    ''Slower growth of the private capital stock would result in lower
productivity than would occur with smaller deficits, and the income
of future generations would be lower,'' he said.
    Continued borrowing from foreigners, he said, ''would imply a
growing debt owed to foreigners'' and that means ''U.S. residents
would enjoy a shrinking proportion of the production generated here
because of rising interest and dividend payments abroad.''
JM END GARLAND
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1909est
n079  1620  06 Feb 85
BC-STOCKMAN 2takes
(Newhouse 022)
By MILES BENSON
Newhouse News Service
    WASHINGTON - What's ahead for Budget Director David Stockman?
    Political martyrdom? Another trip to the presidential woodshed? Or a
Congressional citation for honesty beyond the call of duty?
    There were loud calls for these options - and a few more - after
Stockman's explosive testimony to Congress on Tuesday. Mincing few
words, he charged that the nation's military leaders care more about
their pensions than they do about national security - and that the
Reagan administration was facing ''blackmail'' by agriculture
interests seeking federal refinancing of bad farm debts.
    Brash and brilliant, Stockman, 38, who grew up on a family farm in
Michigan and never served in the armed forces, demonstrated again
that he is no respecter of sacred cows, even those under the
protection of his boss, President Reagan.
    Military quarters immediately demanded Stockman's resignation.
Reagan hastily expressed his admiration for men and women in uniform.
Republican Congressional leaders declared their support for Stockman.
And there were published reports that Stockman might be preparing to
exit the administration, a possibility firmly denied by a spokesman
for the budget director.
    Stockman had predicted his testimony would get him in ''hot water.''
    The last time the former Michigan congressman's candor rocked the
Capitol was in December, 1981, when he unexpectedly threw open a
window on the inner workings of the Reagan administration, confessing
his own doubts that the Reagan economic plan would balance the budget
and acurately forecasting huge federal deficits in a whistle-blowing
interview published in the Atlantic magazine.
    At that time, Reagan rejected Stockman's proffered resignation but
called his budget director to the Oval Office for lunch and a
disciplinary lecture, which Stockman described as ''a visit to the
woodshed. ...''
    This time, Stockman was appearing before the Senate Budget Committee
to defend Reagan's new $973.7 billion budget, which includes a $30
billion increase for defense and sharp cuts in a host of domestic
programs.
    Stockman did a good job, according to Republican lawmakers on the
panel, but when Sen. J. Bennett Johnston, D-La., asked Stockman about
the generous military retirement system as a potential area for
budget cuts, Stockman replied:
    ''I've never been able to get anything done on military retirement
downtown. It's a scandal. It's an outrage. The institutional forces
of the military are more concerned about protecting their retirement
benefits than they are about protecting the security of the American
people. When push comes to shove, they'll give up on security before
they give up on retirement. That just another true fact of life.''
    In a ''clarification'' Wednesday, a Stockman spokesman said, ''the
director in no way intended to impugn the patriotism or devotion of
our men and women in uniform, but was expressing personal frustration
with bureaucratic resistance - not peculiar to the Department of
Defense - to reform.''
    Stockman made no apologies to farmers or farm state lawmakers,
however, for his other comment Tuesday. Sen. Robert W. Kasten Jr.,
R-Wis., questioned him about progress on emergency credit aid for
economically distressed farmers and Stockman responded with another
bombshell:
    ''For the life of me, I can't figure out why the taxpayers of this
country have the responsibility to go in and refinance bad debt that
was willingly incurred by consenting adults who went out and bought
farm land when the price was going up to try to get rich.''
    Stockman also admitted that the administration would act to aid
farmers facing a credit crunch because ''we're threatened by a kind
of blackmail'' from lawmakers who otherwise would block farm program
reforms sought by Reagan in his new budget.
    ''I think it's a sad day that those kinds of threats are being made
but frankly they are,'' Stockman said, ''so we will end up probably
having to do something.''
    Stockman's remarks brought angry reactions from both the farm and
military sectors and their allies on Capitol Hill.
    The 120,000-member Reserve Officers Association urged Reagan to
repudiate Stockman's statement. The Association of Retired Officers
demanded Stockman's resignation.
    Defense Secretary Caspar Weinberger was said to be ''outraged'' by
Stockman's statement, and he issued an official statement saying
those in military service ''gave up any self interest or sordid
motives'' when they voluntered and they ''should not be defamed.''
    Sen. Barry Goldwater, R-Ariz., called Stockman's comments ''about as
distasteful as anything I've heard from any administration official
since I've been in Washington.''
RW (MORE)
    
nyt-02-06-85 1919est
n080  1623  06 Feb 85
BC-NYT-ADVISORY FrontPage
    Editors, FYI, The N.Y. Times 1st edition PageOne dummy for Thursday,
Feb. 7, 1985:
    
TOPS
    Washington - Weinraub - President Reagan delivers State of the Union
address. REAGAN, priority.
    Washington - Roberts - The Democrats respond to Reagan.
REAGAN-REACT, priority.
    Washington - Gwertzman - Australia, in a reversal, refuses to
support U.S. in MX test planned in Tasmanian Sea. AUSTRALIA, moved.
    3-col cut New Yorkers puddle hop.
    
FOLDS
    Washington - Keller - Stockman's attack on military pension system
sets off a political storm. PENSION, priority.
    New York - Roberts - Labor accord will lower by one-third the cost
of shipping cargo through New York. YORKPORT, priority.
    
BOTTOMS
    New York - Farber - Gen. McChristian testifies for CBS in libel
suit. WESTMORELAND, priority.
    Jerusalem - Friedman - Victims tell of experiments by Mengele.
AUSCHWITZ, priority. (with 3-col cut, atop story)
    
REEFERS
    Washington - Taylor - Suits against Carbide in Bhopal gas leak to be
combinded and heard in New York. CARBIDE, priority.
    Wisner, Neb. - Robbins - The woes of a small-town bank. FARMBANK,
priority.
    
nyt-02-06-85 1922est
n081  1633  06 Feb 85
AM-MARKET
(BizDay)
By NICHOLAS D. KRISTOF
c.1985 N.Y. Times News Service
    NEW YORK - Stock prices continued to advance Wednesday in a heavy
trading session characterized by gains for many smaller, more obscure
companies but losses for the blue chips.
    The Dow Jones industrial average, which tracks the performance of 30
blue chip stocks like General Motors, Eastman Kodak and Du Pont,
slipped 4.64, to 1,280.59. But advancing issues on the New York Stock
Exchange led declines by almost a three-to-two margin, and stocks
traded over-the-counter and on the American Stock Exchange rose
smartly.
    Other market indicators also conveyed the breadth of the month-old
stock rally. The Nasdaq index of over-the-counter issues rose 1.74,
to 284.46, while the American Stock Exchange index jumped 1.98, to
228.70.
    ''Some of these stocks seemed awfully cheap compared with what else
you had to buy, be it IBM, Treasury bills, bonds or whatever else,''
said Bob Antolini, a managing director at L.F. Rothschild Unterberg
Towbin.
    Antolini noted that the surge in over-the-counter prices represented
a more aggressive investor attitude than that prevailing for much of
last year, when secondary stocks were depressed.
    ''A lot of them had been knocked down, and price-earnings ratios got
too low,'' he said. ''You had some selling for two or three times
earnings, and they just got too cheap compared with some of the big
stocks on the New York Stock Exchange.''
    From the beginning of the year through Tuesday's trading, the Dow
rose 6.08 percent, while the over-the-counter composite index rose
14.3 percent, according to Rothschild calculations. Meanwhile the
index of national industrial stocks sold over-the-counter has jumped
18 percent.
    The companies whose stock trades over-the-counter are typically
smaller than those listed on the New York exchange, and they are
often considered more speculative. In addition, individuals are a
more prominent force in over-the-counter trading than on the New York
Stock Exchange.
    Trading was active Wednesday. More than 141.9 million shares traded
hands on the New York Stock Exchange, in the 20th consecutive session
in which volume exceeded 100 million. The previous record had been 11
sessions, set in February 1984.
    On the American Stock Exchange, 19 million stocks were traded, a new
daily record. But much of that was from a 6 million block trade of
BAT Industries stock handled by Goldman Sachs & Co. Advances
outnumbered declines on the Amex by 355 to 213.
    Airline stocks were among the big losers. United Airlines announced
it would retain almost all of its discount fares instead of following
the lead of American Airlines and phasing out many of these cheap
fares. Investors believed the result would be fare wars that would
cut into airline profits.
    The Dow Jones index of transportation stocks plunged 8.97, to
617.14. The AMR Corp., parent of American Airlines, fell 1 3/4, to 36 1/4,
while Delta Air Lines tumbled 1 5/8, to 43 1/4. Trans World Airlines fell
 1/2, to 11 3/4, and Eastern Air Lines slipped 1/8, to 4 3/8.
    Oil stocks generally did poorly as well. Exxon fell  3/4, to 46 1/2; Mobil
dropped  1/4, to 28 1/4, and Phillips Petroleum retreated  1/2, to 49 3/4.
Phillips had jumped 3 1/8, to 50 1/4, on Tuesday after financier Carl Icahn
made an offer for the company. Unocal, which had risen sharply
recently on takeover rumors, was the most actively traded stock and
fell 1 5/8, to 46 1/8. On the other hand, the Sun Co. rose 1 7/8, to 49 3/8
Wednesday.
    Automobile companies also suffered, on reports of desultory auto
sales. Ford slipped 1 1/8, to 45 3/8, and General Motors dropped 1, to 80,
while Chrysler fell 3/8, to 32 5/8.
    Some technology stocks also stumbled. The Digital Equipment Corp.
fell 1, to 123 1/8, and Motorola dropped  1/2, to 37 1/8, while the
International Business Machines Corp., trading ex-dividend, fell 1 1/8,
to 135 3/8.
    Because of the Dow's narrow composition, it can be tugged down by
declines in just a few major stocks. For example, each 1 1/8 drop in IBM
pulls down the Dow by one point. Therefore, analysts say broader
indexes are often more accurate - although the Dow remains the most
closely watched measure of the market.
    Some of those broader measures of performance on the New York Stock
Exchange also slipped Wednesday, though by less. The exchange
composite index dropped 0.02, to 104.40, and the Standard & Poor's
500-stock index fell 0.18, to 180.43. Those indexes had risen for 10
of the last 12 sessions.
    
nyt-02-06-85 1932est
n082  1637  06 Feb 85
BC-STOCKMAN 1stadd
(Newhouse 023)
Benson - Washington X X X Washington.
    Rep. James Jefford, R-Vt., a member of the House Agriculture
Committee, suggested Stockman's remarks about the farm credit problem
were rooted in his own personal history.
    ''I know David well,'' Jefford said. ''He has an emotional thing
about farmers. His father was a farmer and I think he went bacnkrupt.
It was too bad the way he handled it ... He's just plain wrong and he
did the administration wrong.''
    But Senate Republican Leader Bob Dole of Kansas said he hoped
Stockman would remain in his post.
    ''He's being very candid and very forthcoming,'' Dole said. ''We are
going to have to look at all these sacred cows.''
    House Republican Leader Bob Michel of Illinois also rushed to
Stockman's defense. ''Next to the president he's got the toughest job
in the country and the very nature of the job requires you say some
things in a public forum frankly that politicians wont say.''
    Stockman spokesman Ed Dale reported that the budget director's
office was ''swamped'' with calls, some of them from farmers and
retired military personnel, supporting Stockman's position.
    One call, Dale said, came from six women who were sitting in a
sewing circle in San Antonio when they heard the news and called to
say that if President Reagan doesn't support Stockman they'd be mad
at Reagan.
RW END BENSON
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 1936est
n083  1648  06 Feb 85
BC-OSCARS 2takes
'Amadeus' and 'Passage to India' Dominate Nominations
By ALJEAN HARMETZ
c.1985 N.Y. Times News Service
    HOLLYWOOD - With 11 nominations apiece, ''Amadeus'' and ''A Passage
to India'' dominated the 57th Academy Award nominations announced
Wednesday.
    ''Amadeus,'' the story of Antonio Salieri's envious hatred for
Mozart, and ''A Passage to India,'' based on E.M. Forster's novel
about the relations between British colonials and Indian natives,
will compete head to head in eight categories, including best
picture, director, cinematography, costume design and screenplay
adaptation.
    ''Amadeus'' and ''A Passage to India'' were joined in the
best-picture category by ''The Killing Fields,'' the story of the
search by a reporter for The New York Times for the Cambodian
assistant he left behind when Pol Pot's forces swept Cambodia in
1975; ''Places in the Heart,'' a story about a woman's struggle to
save her farm and her children in Texas during the Depression, and
''A Soldier's Story,'' about a murder at an Army camp in the South in
World War II.
    ''Places in the Heart'' and ''The Killing Fields'' also tied for
runners-up for the most nominations, with seven apiece, including
screenplay and director. None of the nominations came as a surprise.
    There was a major surprise, however, in the best-director category.
    Woody Allen, who had not been mentioned in any polls or critcs'
awards, was nominated for ''Broadway Danny Rose,'' the story of an
inept New York theatrical agent. Allen also won a nomination for best
original screenplay.
    Robert Benton received the same dual nominations for ''Places in the
Heart,'' while David Lean was nominated both as best director and as
author of a screenplay adaptation for his movie version of Forster's
novel. The other two nominees for best director were Milos Forman for
''Amadeus'' and Roland Joffe for ''The Killing Fields,'' which marked
his debut as a director. Except for Joffe, each of the nominees has
won at least one previous Oscar for directing. Lean has won twice.
The most notable omission in the directing category was Norman
Jewison, who was nominated for a Director's Guild award for ''A
Soldier's Story.''
    The two leading actors in ''Amadeus'' - Tom Hulce as Mozart and F.
Murray Abraham as Salieri - were nominated for best actor. They were
joined by Albert Finney as the drunken ex-consul of ''Under the
Volcano,'' Sam Waterston as The Times reporter Sydney Schanberg in
''The Killing Fields,'' and Jeff Bridges as the alien in ''Starman.''
The nomination of Bridges was the biggest surprise in the acting
categories.
    Left out were Robert Redford in ''The Natural,'' Jack Lemmon in
''Mass Appeal,'' Howard Rollins in ''A Soldier's Story'' and Steve
Martin, who had won awards as best actor from both the New York Film
Critics and National Society of Film Critics for his dual personality
in ''All of Me.''
    The Academy's historical resistance to nominating comedy
performances for best actor and actress can be seen in Martin's
failure to be nominated. Another award-winning tongue-in-cheek
performance that did not receive a nomination was the mystery writer
played by Kathleen Turner in ''Romancing the Stone.''
    The leading actresses in the three movies Hollywood has called the
Dust Bowl Trilogy all won nominations. Sally Field was nominated for
her performance in ''Places in the Heart,'' Jessica Lange for her
portrayal of a woman on the verge of losing her farm in ''Country''
and Sissy Spacek for her performance as a farmer's wife who battles
nature in ''The River.'' All three have won Oscars before. Miss Field
and Miss Spacek won in this category, as ''Norma Rae'' and the ''Coal
Miner's Daughter,'' respectively. Miss Lange won best supporting
actress in ''Tootsie.''
    The other two nominations went to Judy Davis, who plays a young girl
who may or may not have been sexually assaulted in ''A Passage to
India,'' and Vanessa Redgrave, who earned her fifth nomination for
her performance as a repressed feminist in ''The Bostonians.'' Miss
Redgrave won as best supporting actress in 1977 for ''Julia.''
    Nominees are chosen by members of the Academy of Motion Picture Arts
and Sciences who are in the same branch. Members of the actors'
branch also decide in which category to place a performance. Thus,
although Columbia promoted Dame Peggy Ashcroft for best actress, she
was nominated as best supporting actress for her role as a mystic
elderly woman in ''A Passage to India.'' This is the first Oscar
nomination for Dame Peggy, who made her film debut more than 50 years
ago.
    The other nominees for supporting actress are Glenn Close for ''The
Natural,'' her third consecutive nomination; Lindsay Crouse, as Sally
Field's sister in ''Places in the Heart''; Geraldine Page, as a
tough, chain-smoking mother in ''The Pope of Greenwich Village,'' her
seventh acting nomination, and Christine Lahti as a riveter in
''Swing Shift.''
    (MORE)
    
nyt-02-06-85 1947est
n084  1657  06 Feb 85
BC-OSCARS 1stadd
NYT HOLLYWOOD: ''Swing Shift.''
    Nominated for supporting actor were Adolph Caesar as a sergeant in
''A Soldier's Story;'' John Malkovich as a blind man in ''Places in
the Heart;'' Noriyuki ''Pat'' Morita as a karate master in ''The
Karate Kid;'' Haing S. Ngor, a doctor who had never acted before, as
Dith Pran in ''The Killing Fields,'' and Ralph Richardson, nominated
posthumously for his role as Lord Greystoke in ''Greystoke: The
Legend of Tarzan.'' Malkovich and Ngor were nominated in their film
debuts.
    Of the 228 eligible pictures, the year's three top box-office
successes got a total of four nominations. ''Ghostbusters'' was
nominated for visual effects and original song and ''Indiana Jones''
for visual effects and score. ''Gremlins'' did not receive a
nomination in any category.
    The big winners among the studios were Columbia with 19 nominations,
primarily for ''A Passage to India,'' ''A Soldier's Story,'' and
''Ghostbusters,'' and Orion with 16 nominations, mostly for
''Amadeus,'' ''Broadway Danny Rose'' and ''The Cotton Club.''
    -
    Other nominees included:
    Foreign-Language Film: ''Beyond the Walls'' (Israel); ''Camila, A
Gea'' (Argentina); ''Dangerous Moves'' (Switzerland); ''Double
Feature'' (Spain); ''War-Time Romance'' (Soviet Union).
    Original Song: ''Take a Look at Me Now'' (''Against All Odds'');
''Footloose'' (''Footloose''); ''Ghostbusters'' (''Ghostbusters'');
''I Just Called to Say I Love You'' (''The Woman in Red''); ''Let's
Hear it for the Boy'' (''Footloose'').
    Original Screenplay: Daniel Petrie Jr., ''Beverly Hills Cop''; Woody
Allen, ''Broadway Danny Rose''; Gregory Nava and Annma Thomas, ''El
Norte''; Robert Benton, ''Places in the Heart''; Lowell Ganz, Babaloo
Mandel and Bruce Jay Friedman, ''Splash.''
    Screenplay Adaptation: Peter Shaffer, ''Amadeus''; P.H. Vazak and
Michael Austin, ''Greystoke: The Legend of Tarzan''; Bruce Robinson,
''The Killing Fields''; David Lean, ''A Passage to India''; Charles
Fuller, ''A Soldier's Story.''
    Cinematography: Miroslav Ondricek, ''Amadeus''; Chris Menges, ''The
Killing Fields''; Caleb Deschanel, ''The Natural''; Ernest Day, ''A
Passage to India''; Vilmos Zsigmond, ''The River.''
    Original Score: John Williams, ''Indiana Jones and the Temple of
Doom''; Randy Newman, ''The Natural''; Maurice Jarre, ''A Passage to
India''; John Williams, ''The River''; Alex North, ''Under the
Volcano.''
    Original Song Score or Adaptation Score: Jeffrey Moss, ''The Muppets
Take Manhattan''; Prince, ''Purple Rain''; Kris Kristofferson,
''Songwriter.''
    Art Direction: ''Amadeus''; ''The Cotton Club''; ''The Natural'';
''A Passage to India''; ''2010.''
    Costume Design: ''Amadeus''; ''The Bostonians''; ''A Passage to
India''; ''Places in the Heart''; ''2010.''
    Documentary Feature: ''High Schools''; ''In the Name of the
People''; ''Marlene''; ''Streetwise''; ''The Times of Harvey Milk.''
    Documentary Short Subject: ''The Children of Soong Ching Ling,
Unicef''; ''Code Gray: Ethical Dilemmas in Nursing''; ''The Garden of
Eden''; ''Recollections of Pavlovsk''; ''The Stone Carvers.''
    Film Editing: ''Amadeus''; ''The Cotton Club''; ''The Killing
Fields''; ''A Passage to India''; ''Romancing the Stone.''
    Animated Short Film: ''Charade''; ''Doctor Desoto''; ''Paradise.''
    Live Action Short Film: ''The Painted Door''; ''Tales of Meeting and
Parting''; ''Up.''
    Sound: ''Amadeus''; ''Dune''; ''A Passage to India''; ''The River'';
''2010.''
    Visual Effects: ''Ghostbusters''; ''Indiana Jones and the Temple of
Doom''; ''2010.''
    
nyt-02-06-85 1956est
n085  1709  06 Feb 85
BC-FARMBANK
By WILLIAM ROBBINS
c.1985 N.Y. Times News Service
    WISNER, Neb. - Jerry Purintun was seeing one of his most depressing
days as president of the First National Bank of Wisner.
    It was a day when three of his farmer clients had come in to say
they were turning over their land and equipment to creditors in the
face of mounting debts and declining valuations on their assets.
    ''It makes us look like the bad guys,'' the tall young banker said
in an interview in his office here the other day. ''And we don't even
hold the land mortgages.''
    The 104-year-old First National Bank stands proudly, as it has for
the last 30 years, beside Wisner's only traffic light on U.S. 275,
which becomes Avenue E here but is better known as Main Street.
    The bank stands at the heart of a farm-based community of about
1,400 people, a town that, like many others, recovered strongly in
the 1970s from decades of problems in agriculture, only to resume its
decline in the 1980s.
    Therein, Purintun said, lies a problem facing the bank if it
attempts extensive involvement in a proposal by the Reagan
administration that lenders reduce what they require troubled farmers
to pay on their debt, with the government guaranteeing a portion of
the debt involved.
    Like others in Wisner's commercial community, the bank is heavily
dependent on its farmers. It shares that dependency with people like
Nadine Eyl, a waitress who manages to smile despite the empty tables
at the Jewel Cafe; Howard Graber, bending his tall frame over a
workbench in a shop now devoid of the tractors he once sold, and Bob
Colligan, a feed dealer frowning at the memory of the thousands of
dollars he has lost in customer bankruptcies.
    Too many of their customers, they said, had shared the plight of
Ralph Schmidt, who has shown nothing but losses on his 400-acre farm
since 1979, while his debts have climbed, from $284,000 to $578,000.
Schmidt is not one of Purintun's clients, but has been told by his
own banker that he will not be granted loans he needs to continue
farming this season.
    Among First National's 508 commercial borrowers, about 90 percent
are farmers, and at least 85 percent of those are now losing money,
the banker said. Many of those, he added, would require interest rate
cuts to 4 percent or below before they could start showing cash
returns greater than their outlays.
    ''I don't think any bank can handle that many problems,'' Purintun
said.
    ''The examiners have looked at us,'' he continued. ''They say we are
a sound bank. But we wouldn't stay that way very long if we started
giving away our assets and earnings.''
    ''If you write down one of those loans,'' he added, ''that's an
earning asset that's gone forever.''
    The bank's average cost of obtaining the money it lends is now 9
percent, Purintun continued. Its current interest rate on the money
it lends now is 13.5 percent, but its average interest return on its
loan portfolio is 12 percent, counting old loans at lower rates and
loans that earn nothing, such as those made on 440 acres of land
turned over by debtors.
    For a bank of First National's size, the resulting spread of three
percentage points between its money costs and loan rates is needed to
cover operating expenses and leave a minimal return of about 1
percent on earning assets, Purintun said.
    It would be ill-advised, he added, for First National, with $23
million in total assets, including about $15 million in loans and $18
million in deposits, to reduce its return further.
    The three farmers who acknowledged failure to Purintun the other day
joined about a dozen others who he said had advised him that ''unless
something changes, they won't be planting a crop this year.''
    Others, Purintun said, will need new loan commitments in the next
few weeks to provide for spring planting expenses. They need to begin
working their fields next month to prepare the land for corn
planting, which they will try to complete by mid-May.
    The bank is now reviewing its accounts, he said, to determine how
many of them must be given the same grim message that Schmidt has
already received.
    Farmers squeezed by credit problems tend to pay their bankers, rural
merchants say, before they pay unsecured accounts for supplies and
services.
    As a result, Colligan, the feed dealer, has lost about $90,000 in
the last three years as farmers who owed him money declared
bankruptcy.
    ''And I've learned something I'd never seen around here before,''
Colligan said, ''that farmers can lie to you. It's the cornered rat
syndrome. Some will tell you 'I've got some corn to sell, and I'll be
in to pay you next week.' Next week never comes.''
    ''I'm even afraid to solicit new business now,'' Colligan said.
''I'm afraid I'll just get people somebody else has cut off.''
    Graber, who sold tractors until last year, is equally cautious. ''My
accounts are very low now, and I intend to keep it that way,'' he
said.
    Graber gave up his franchise, he said, because ''I couldn't afford
the interest cost of keeping equipment to sell.''
    ''I used to have five employees,'' said Graber, who still operates a
repair shop. ''Now I'm down to me.''
    And even Stalp, who sells gravel, and Mrs. Eyl, the waitress at the
Jewel, have suffered repercussions.
    ''About 25 percent of my customers used to be farmers,'' said Stalp,
adding that that portion of his business had disappeared.
    At mid-day, Mrs. Eyl was swabbing one of many empty tables at the
Jewel, which is owned by her sister-in-law. ''By now this place used
to have standing room only,'' she said.
    
nyt-02-06-85 2008est
n086  1712  06 Feb 85
BC-FARMBANK-DEBTORS
c.1985 N.Y. Times News Service
    WISNER, Neb. - Thirty years in farming appears to be coming to a
disastrous conclusion for Ralph Schmidt and his wife, Lois.
    Account books, tax returns and financial statements he laid out on
his table the other day graphically illustrated the reasons his
banker has told him he must join an undetermined number of others who
will be denied loans to continue farming this season.
    Schmidt borrowed money in 1977, in one of the more prosperous
periods in agriculture, to expand his farm to 400 acres from 160.
Harder times, accompanied by a series of crop losses from hailstorms,
followed.
    As the Schmidts' debts and interest costs climbed, their net assets
fell.
    In 1978 they paid $18,000 interest on $284,000 in liabilities. Last
year they paid ''interest on interest,'' Schmidt said, $62,000 on
$578,00 in debts.
    Other costs were rising also. Fuel, for example, rose from $5,483 to
$12,128.
    Meanwhile, the net worth reflected in their financial statements had
dropped from a peak of $337,000 in 1981 to $118,000.
    ''That's on paper,'' Schmidt said, acknowledging uncertainty over
chances of saving any equity in a liquidation. Allowing himself a
sliver of optimism, he said he still hoped, somehow, to continue
farming on a reduced scale.
    
nyt-02-06-85 2011est
n087  1722  06 Feb 85
AM-LEBANON
Israelis Raid Shiite Areas in South
By JOHN KIFNER
c.1985 N.Y. Times News Service
    BEIRUT, Lebanon - Faced with mounting attacks in southern Lebanon,
the Israeli army conducted major raids Wednesday on Shiite Moslem
villages that have been centers of resistance in the region.
     By afternoon, Israeli troops had surrounded most of the village of
Bourj al-Shemali and an adjacent Palestinian refugee camp, according
to sources in the south reached by telephone. In the morning, the
Israelis had entered Maareke, one of the most stubborn centers of
Shiite opposition. All are outside the port city of Tyre, which is 45
miles south of Beirut.
    The raids appeared to have been triggered by two ambushes in the
area Tuesday in which 12 Israeli soldiers were reportedly wounded.
    As the Israeli army prepares for the first stage of a three-part
withdrawal from southern Lebanon, the level of clandestine attacks
has increased markedly. The underground National Resistance Council
claims that since the beggining of January it has carried out more
than 100 ''operations'' against Israeli troops.
    Most of the attacks have come from the area the Israeli army will
still occupy after it has pulled out of the Sidon region.
    There have been several attacks daily over the last 10 days, mostly
in the belt of villages between Tyre and the market town of Nabatiye.
    The Shiites, who had clashed with the Palestinian guerrillas
dominating the area before the 1982 Israeli invasion, at first
welcomed the Israelis. But relations soured, and they became enemies.
    ''The Israelis look as if they are good soldiers during the day, but
the night belongs to the resistance,'' a Shiite leader said of the
attacks that have helped force the withdrawal. ''And during the day,
the resistance explodes the bombs it has planted at night.''
    The most recent series began with two attacks Tuesday in Bourj
al-Shemali, just east of Tyre. In one, a roadside bomb exploded as an
Israeli convoy went by, wounding two soldiers. In the second attack,
10 soldiers were wounded, but there were conflicting reports about
it. Israeli news accounts said it involved a suicide-car bomber;
local sources reported that a rocket-propelled grenade had struck an
ammunition truck.
    As night fell Tuesday, the Israelis launched an extensive hunt for
guerrillas.
    -
    Bourj al-Shemali is, in a sense, the birthplace of Amal, the
political and military organization that is the focus of the Shiite
community's drive for power in Lebanon's sectarian system.
    The village contains the Moussa Sadr Technical School, an orphanage
and trade school set up by the Shiite clergyman who founded Amal, and
later mysteriously disappeared on a trip to Libya. The school's
former headmaster, Daoud Daoud, is Amal's political chief in the
south and has been in hiding for six months.
    In the latest operation, Israeli troops, backed by armored personnel
carriers, surrounded the school and interrogated the students,
according to sources in the south. A large area was still cordoned
off on Wednesday, the sources said.
    At 7 a.m. Wednesday, a large Israeli force entered the remote hill
village of Maareke, the site of more than a dozen clashes with the
Israelis in the last year.
    Automobile tires are kept in piles around the main square in
Marrakeh, ready to be set on fire if the Israelis enter. Lookouts are
posted and warning cries from the minaret of the mosque bring
screaming women into the streets.
    Timor Goksel, the spokesman for the United Nations Interim Force in
Lebanon, said the Israelis arrested seven people in the village and
bulldozed one house, in which they said they had found arms. His
information came from a French contingent of U.N. troops stationed in
the area who helped restore calm.
    Israeli troops have prevented foreign journalists based in Beirut
from entering southern Lebanon for the last 10 days. Thus, reliable
reports of the day's events were scarce, and there were conflicting
and apparently exaggerated accounts on Lebanese radio stations. Some
of the accounts, which were not confirmed by sources in the south,
spoke of 100 Israelis being killed or wounded by a bomb.
    
nyt-02-06-85 2020est
n088  1734  06 Feb 85
AM-AUSTRALIA
Premier Says U.S. Planes Can't Monitor MX Test
By BERNARD GWERTZMAN
c.1985 N.Y. Times News Service
    WASHINGTON - Australia's prime minister said Wednesday that he had
told the United States that because of a political revolt in his own
party, he would probably have to renege on a pledge to allow American
planes to use bases in his country to monitor a planned MX missile
test.
    As a result, Secretary of State George P. Shultz said Wednesday
afternoon that the United States had decided to monitor the test of
the latest American intercontinental ballistic missile ''without the
use of Australian support arrangements.''
    Prime Minister Bob Hawke apparently startled American officials when
he told them on arrival here Tuesday night and again Wednesday that
he would have to cancel the agreement for Australian base facilities
for American surveillance planes because of a political split within
his governing Labor Party.
    Australia, New Zealand and the United States are members of a
34-year-old South Pacific alliance known as ANZUS.
    Australia's unwillingness to associate with the testing of a
nuclear-armed missile coincided with a decision by New Zealand's
prime minister, David Lange, not to permit an American warship to pay
a port call because of the anti-nuclear policy of his Labor Party
government. That led the United States and Australia to cancel naval
exercises that were to take place with New Zealand next month off
Australia.
    Although both actions seemed to strike blows at the strength of the
ANZUS pact, the incidents were separate and not coordinated. In
Australia's case, the prime minister had supported cooperation with
the United States and was bowing out of the MX testing to prevent a
rupture in his party.
    In New Zealand, Lange appears to endorse the anti-nuclear policy of
his party with enthusiasm and has taken the lead in refusing to allow
U.S. Navy ships to visit unless he is assured they do not carry
nuclear weapons, something Washington refuses to do.
    The Reagan administration's reaction to the two allied governments
was quite different.
    Shultz, speaking to reporters at the State Department, with Hawke
next to him, seemed to want to leave the impression that the MX
matter was a minor issue. He asserted that there were many ways for
the United States to monitor the MX test without Australia's support.
Therefore, he added, ''The decision has been made by the United
States to conduct the MX tests without the use of Australian support
arrangements.''
    Stressing the close relations between Washington and Canberra,
Shultz said that the United States and Australia were in agreement on
such matters as the need for nuclear deterrents and on seeking arms
control agreements.
    But as to New Zealand, Shultz said that the denial of port rights
''changes the operational character'' of that country's participation
in ANZUS. He said the United States and Australia would make their
own arrangements for future exercises.
    ''There will be a variety of other ways in which the changed
operational character will be reflected,'' he said. ''But New Zealand
made a decision. We are sorry about that. We have great affection for
the people of New Zealand, but we also remind them that those who
value freedom have to be willing and prepared to defend it. And we
remain solid, with Australia, ready to defend it.''
    In the Senate Wednesday, Sen. William S. Cohen, R-Maine, who has
been sharply critical of New Zealand's recent actions, introduced a
non-binding resolution calling on President Reagan to end special
trade and security benefits enjoyed by New Zealand if it does not
reinstate its policy of allowing port calls by Navy ships.
    -
    The MX monitoring issue has apparently come as an embarrassment to
Hawke, who has been a strong ally of the United States since his
party was elected to office in 1983. He has been openly critical of
Lange for his strict anti-nuclear policies, even though many members
of the Australian Labor Party share the anti-nuclear views of the New
Zealanders.
    Hawke told reporters he had raised with Shultz ''the concerns that
had arisen in Australia'' about the MX test and was told that the
United States could monitor the test in other ways. American
officials said the alternatives included sending surveillance planes
from Clark Air Force Base in the Philippines or using airfields
elsewhere in the region.
    Hawke stressed that ''the commitment of Australia to the alliance
relationship that we have with the United States remains undiminished
and that we have early in the life of our government reviewed the
position of that relationship.''
    ''We came to the conclusion that that relationship was an important
part of Australia's international relationship. It remains so.''
    He said that any speculation that the MX issue had affected
Australia's relations to the alliance was wrong.
    ''It would be totally mistaken for any conclusion to be drawn that
the decision of the United States to monitor the MX testing in
another way has any impact upon the ANZUS relationship,'' he said.
''It has none.'' He said his government had reaffirmed the importance
of ANZUS and ''nothing happened since then diminishes that
commitment.''
    
nyt-02-06-85 2033est
n089  1746  06 Feb 85
BC-ANDERSON-COLUMN
SPORTS OF THE TIMES
When the Generals Sought Montana
By DAVE ANDERSON
c.1985 N.Y. Times News Service
    NEW YORK - Like ships in the night, Joe Montana and Doug Flutie
passed through midtown Manhattan - the 49er quarterback arriving to
collect a Thunderbird Turbo coupe from Sport magazine as Super Bowl
XIX's most valuable player, the Heisman Trophy winner departing for
Orlando, Fla., to join the New Jersey Generals as their rookie
quarterback. And in their careers that are so separate, neither
realized how intertwined their lives almost were.
    Less than two years ago, the Generals explored the possibility of
luring Montana from the 49ers, for 1986 delivery. Which poses the
obvious question - if the Generals were committed to Montana, would
they have pursued Flutie?
    Not that the Generals' offer tempted the 49er quarterback. When he
happened to be asked if any U.S. Football League team had ever sought
him, Montana replied vaguely, ''One team did, but there was no reason
to take it seriously. I still had some years to go on my 49er
contract. I don't even remember which team it was.'' But his
attorney, Larry Muno, remembered.
    ''The team was the Generals,'' Muno said. ''Jim Gould called me.''
    Gould is no longer with the Generals, but shortly after Donald
Trump's takeover in the autumn of 1983, he was their vice president.
In checking the future availability of National Football League
quarterbacks before signing Brian Sipe, the Generals also contacted
David Woodley, then with the Miami Dolphins, and Marc Wilson of the
Los Angeles Raiders, but Montana had led the 49ers in their Super
Bowl XVI victory over the Cincinnati Bengals.
    ''As I remember, Joe was making $475,000 that year, $525,000 the
next year, then $600,000,'' Muno said. ''Gould offered to make up the
difference between whatever Joe was making and $1 million each year
while he was still with the 49ers, then go to $1.2 million, I think
it was, then $1.4 milion when he joined the Generals. I just
listened, I didn't take it too seriously either, but I did use it as
a wedge in negotiating the contract Joe has now.''
    With a six-year contract worth about $7 million, Montana is the
NFL's highest-paid performer. But with a five-year contract
reportedly worth about $7 million, Flutie suddenly is making more
money as a rookie than the two-time Super Bowl most valuable player.
    ''That doesn't bother me, not at all,'' Montana said. ''In a game
where your career can be short, I'm all for anybody getting as much
as they can. I really haven't seen Flutie that much, just bits and
pieces on television. I think he made a good decision to stay in a
big media area like New York. It's tough to pass up that kind of
money.''
    Asked if he could visualize himself in the NFL at 5-feet-9  3/4-inches,
as Doug Flutie is, Joe Montana, who is 6-feet-2-inches, smiled.
    ''Sometimes I don't feel tall enough,'' he said. ''When my blockers
and the pass-rushers are right in front of me, only three or four
feet away, I can't see much of anything. But usually you see between
them. You have to create lanes you can see through. Flutie seems to
be able to do that.''
    Nobody questions Montana's skill or style now. But in the weeks
before the 1979 NFL draft, the scouts had questions, even though his
1977 Notre Dame team had been ranked as the national champion.
    ''I was just hoping to get a chance to play in the NFL; at Notre
Dame we didn't throw the ball that much,'' he recalled. ''Some scouts
thought I was too small, not strong enough, not durable enough. I
weighed 187 my senior year, I'm about 192 now, so I'm not that much
bigger. The day of the draft, I had heard that I might be taken
anywhere from the first round to the sixth round. Most of the talk I
heard was that the Giants might draft me, but when I wasn't taken in
the first round, I didn't know what to expect.''
    In the first year of the George Young-Ray Perkins regime, the New
York Giants did take a quarterback with the seventh choice in the
first round - Phil Simms.
    Two other quarterbacks were drafted in the first round - Jack
Thompson by the Bengals as the third choice, and Steve Fuller by the
Kansas City Chiefs as the 23rd.
    Montana was eventually taken by the 49ers in the third round, the
82nd player chosen that year, the fourth quarterback. He also was the
49ers' second selection that year; they had named the running back
James Owens in the second round.
    ''My first start my rookie year,'' Montana said, smiling, ''I threw
two touchdowns - to the other team. On one of those interceptions,
the guy ran me over at the 1-yard line.''
    But when the 49ers traded Steve DeBerg before the 1981 season, Coach
Bill Walsh put Joe Montana in command of his voluminous offense.
    In the 1981 season Montana earned his first Super Bowl ring. But
when he was assured of another for the recent 38-16 rout of the Miami
Dolphins, he presented his first ring to his father. He also intends
to give his new Thunderbird to his parents.
    Montana soon will be married, for the third time. His fiancee is
Jennifer Wallace, the blonde ''sheriff'' on his razor commercials.
After the recent Super Bowl, she accompanied him to Honolulu for the
Pro Bowl game. The night before the game, they had dinner with the
Dolphin quarterback, Dan Marino, and Claire Veazey, who were married
last week in Pittsburgh.
    ''We went to a sushi bar,'' Montana said. ''We toasted each other,
and Dan said, 'You won the Super Bowl, but here's to letting us win
tomorrow.'''
    The next day, the American Conference team, with Marino at
quarterback, did win, 22-16. But the other quarterback from the
Pittsburgh area, Joe Montana from Monongohela, has the Super Bowl XIX
ring. He also has a word of advice for Doug Flutie.
    ''Get a good tax guy,'' Montana said.
    
nyt-02-06-85 2046est
n090  1759  06 Feb 85
AM-BUDGET
By JONATHAN FUERBRINGER
c.1985 N.Y. Times News Service
    WASHINGTON - Rudolph G. Penner, director of the Congressional Budget
Office, told Congress Wednesday that he thought economic growth next
year would be slower and the federal budget deficit larger than
President Reagan's 1986 budget estimated.
    Penner told the Senate Budget Committee that his office's
re-estimates of the president's budget's deficit, due in late
February, ''certainly will be higher'' because CBO analysts expect
higher interest rates and less economic growth. Higher rates would
make the interest on the national debt more costly; lower growth
would mean less tax revenue.
    Sen. Lawton Chiles of Florida, the ranking Democrat on the Budget
Committee, said the deficit projections for 1988 and 1990 could be in
the $165 billion to $175 billion range, rather than showing a decline
as estimated by the administration. The president, in the budget he
released this week, projected that if all his $47.5 billion of
spending cuts were approved the deficit would decline to $144 billion
in 1988 and $82 billion in 1990. The deficit in 1985 is projected to
be $222 billion.
    The difference in economic assumptions between the congressional
office and the administration could become an issue in the debate on
deficit reduction this year. The Republicans in the Senate are trying
to assemble a budget package that would cut the deficit by $50
billion in 1986 and would bring the deficit down to $100 billion by
1988.
    So far they have been doing their planning using the
administration's economic forecast. If they now decide to switch to
the CBO forecast, as they have in the past, they would need more cuts
to achieve their goal of reducing the deficit to $100 billion in 1988.
    Penner cautioned the committee and Congress against ''placing too
much emphasis on any specific goal'' for deficit reduction. He said
there was a danger that failure to achieve such a goal completely
might cause the effort to be abandoned. ''Every little bit helps,''
he said.
    Penner told the committee chairman, Pete V. Domenici, R-N.M., that
he was not opposed to the $50 billion goal the Republicans have set
for 1986.
    ''There is some danger in thinking of specific figures because once
one conveys a certain magic along with the particular figure one
might say if we can't get it, why do anything at all?'' Penner said.
''Whereas what I was trying to say, is in fact, every little bit
helps.''
    While he discouraged the setting of rigid goals, Penner said, ''It
is possible to state a deficit reduction goal that has some appeal.''
That goal, he said, would be to arrest the trend toward a higher
ratio of national debt to the gross national product, which measures
the economy's output. Total debt held by the public was less then 30
percent of the gross national product in the 1970s but the CBO
projects it will near 50 percent by 1990 if the deficit is not
reduced.
    Penner said that reducing the deficit, based on his office's
economic assumptions, to $145 billion in 1988 could achieve the goal
of stabilizing the ratio, and that the ratio would decline in future
years. He said that this goal would require reductions in spending of
$30 billion in 1986, $55 billion in 1987 and $90 billion in 1988.
Such reductions in deficit financing would lead to interest savings
of $2 billion in 1986, $6 billion in 1987 and $14 billion in 1988, he
said.
    These deficit reduction figures are smaller than those the Senate
Republicans are considering because of accounting differences between
the Congressional Budget Office and the administration. When
adjusted, espeically for the CBO's lower figures for military
spending, Penner said the 1986 figure for spending reductions is
about $45 billion. Penner explained that the congressional office
assumed lower military spending figures because it was following the
path approved by Congress in last year's budget resolution.
    Penner told the committee that the deficit would be $215 billion in
1986 and rise to $296 billion in 1990 if there are no spending cuts
or tax increases. These figures are lower for 1986 and 1987 than the
administration's and higher for later years.
    Penner said that the real cost of not moving to reduce future
deficits is ''the living standards of future generations of Americans
will be gradually lowered compared with what they could be if fiscal
policy were more prudent.''
    The main difference between the economic forecast of the
congressional office and the administration is on interest rates. The
congressional office projects that the three month Treasury bill,
which had an average interest rate of 9.5 percent in 1984, will
decline to 8.3 percent in 1985, rise to 8.7 percent in 1987 then hold
at 8.2 perfcent for the rest of the decade.
    The administration projects a rate of 8.1 percent in 1985, 7.9
percent in 1986, 7.2 percent in 1987 and then a decline to 5 percent
in 1990. This forecast significantly lowers the projection of the
cost of interest on the national debt.
    On economic growth, the congressional office projects a growth rate
of 3.4 percent from the fourth quarter of 1984 to the fourth quarter
of 1985 and 3.2 percent for the four quarters of 1986. The
Administration projects a 4 percent growth rate for each of those two
years.
    
nyt-02-06-85 2057est
n091  1809  06 Feb 85
AM-CAMBODIA
5 Nations Bid Soviets End Support for Vietnam in War
By BARBA
    
nyt-02-06-85 2058est
n092  1809  06 Feb 85
BC-CITY-SPORTS-DRUGS
(Newhouse 024)
New York, New York - a column of commentary
By JOHN McLAUGHLIN
Newhouse News Service
    NEW YORK - In the fifties block of Fifth Avenue, as any outdoorsman
here will tell you, is home to world's highest concentration of
fur-bearing women; their habitat, the highest of high-rent districts.
    So it was appropriate that it was in the Trumpological Gardens of
the Trump Tower, New York's monument to modern money, that young Doug
Flutie was presented to the media by young Donald Trump the other day.
    It tells you something about the romanticism of sports these days
that developer Trump would be willing to pay out $7 million to an
untried diminuitive quarterback, to play football in the off-season
for a minor league team.
    Flutie is part of the grand design of Trump and other owners in the
United States Football League to force a merger with the established
National Football League. His role is to serve as a sort of character
witness in Trump's anti-trust suit against the NFL - proof positive
of the USFL's big-leaguedness.
    A few blocks down Fifth Avenue lies the Olympic Tower, home of the
National Basketball Association. As Flutie was meeting the media, the
NBA's Commissioner, David Stern, was doing nothing more exciting than
getting ready for his trip to Indianapolis this weekend for the NBA's
All-Star Game.
    These are quiet times in the NBA, which is the way Stern likes it.
The big news in pro basketball recently is the fact that its 24 all
stars have volunteered to donate their game stipends, which average
$2,000, to help the starving in Ethiopia.
    It is a nice gesture, but no more, considering that for most this
amounts to about 0.4 percent of annual earnings. But Stern says he is
nonetheless impressed and that the attendant publicity will spur
donations from fans and other ordinary mortals.
    And, he said, there will be more of this kind of thing. The league
is currently working with the American Health Foundation in a program
aimed at persuading high school students of the merits of exercise,
diet and abstinence from drugs and booze.
    Now, a couple of years ago, when stories were floating around about
how 75 percent of NBA players were using cocaine, this would be
laughable.
    Also, who would care? Franchises were preparing to fold. Attendance
and TV ratings were down and the players were poised for a strike
that a lot of owners said they would welcome.
    Stern, a 42-year-old lawyer, was executive vice president of the NBA
at the time, and working with then Commissioner Larry O'Brien, he
helped forge a burst of enlightened self-interest unique in
professional sports. There was no strike. The players agreed to a cap
on club salaries and the owners agreed to to devote 53 percent of
earnings to salaries.
    More important for the league's image, all hands agreed on a drug
addiction program which gives users who admit it three chances to get
straight and which also provides for banishment of players who are
caught unconfessed.
    ''I really believe our players are beginning to realize who they are
and what they are - role models for kids; the guys who play out the
fantasies of the adults who watch them.
    ''This league grosses about $160 million a year. We couldn't make
the Fortune 5,000, let alone the Fortune 500. But these athletes have
enormous impact on people. They are heroic figures. What they do,
what they say, how they act, influences enormous numbers of people.
    ''That's why we got agreement on the drug program and it was the
players, not the owners, who insisted on the lifetime ban.
    ''They know how important they are to kids and they were real tired
of being perceived as a bunch of six-foot-eight-inch coke sniffers.
To my mind and their minds, they are the greatest athletes in the
world, and they want to be seen that way,'' Stern said.
    How the program has worked is known only to Stern and his security
narcs. There are three two-time losers in the league. A couple of
others have been tested, Stern says, and they came up clean. I am
disposed to believe him.
    ''It scares me. I mean, I don't want to be the guy who has to tell
some kid he can never play pro basketball again. But if it comes to
it, I'll do it,'' he said.
    All things being equal, though, Stern would prefer to pursue the
technique he used when playing intramural ball at Teaneck High School
in New Jersey, and at Rutgers University.
    ''I never really wanted the ball when the game was on the line. But
I always wanted to look like I wanted it,'' he said.
RW END McLAUGHLIN
(DISTRIBUTED BY THE NEW YORK TIMES NEWS SERVICE)
    
nyt-02-06-85 2108est
n093  1817  06 Feb 85
BC-FINDIGEST Undated
(BizDay)
c.1984 N.Y. Times News Service
    A digest of business and financial news for Thursday, Feb. 7, 1985:
    
The Economy
    President Reagan offered an agenda of tax reform, economic growth
and an elimination of the threat of nuclear war in a State of the
Union address marked by an evocation of hope and optimism. He urged
Congress to pass a tax simplification plan, calling it ''a giant step
toward unleashing the tremendous pent-up power of our economy.''
    
Companies
    Eastern Air offered new proposals to its unions but continued to
insist on big wage concessions, a major obstacle in negotiations. The
airline, striving to win support from its lenders, sought to reach
agreements by midnight Thursday night. Union reaction appeared
negative. United Airlines decided to keep 90 percent of its less
restrictive discount fares, in a blow to an American Airlines fare
plan. United acted to stay competitive with low-cost carriers.
Airline stocks fell on the news.
    
    Eighteen suits against Union Carbide were consolidated for pretrial
proceedings in Manhattan by a federal judicial panel. Lawyers expect
other suits arising from the disaster in India to go to the same
federal court.
    
    Phillips Petroleum sued Carl C. Icahn, asking the court to prevent
the dissident stockholder from buying any more Phillips stock or
voting the 7.5 million shares he already owns.
    
    Walt Disney Productions and Lucasfilms will join forces to develop
new attractions for Disney theme parks, including a ride based on
Lucasfilm's ''Star Wars'' movies.
    
    Sears earnings fell 3.4 percent, to $563.1 million, in the fourth
quarter. The results were substantially below what analysts had
looked for at the start of the period. The company cited
disappointing holiday sales and warm weather.
    
    Armco's loss widened to $64.5 million from $46.8 million in the 1983
fourth quarter. Georgia-Pacific had a loss of $99 million after a
$160 million charge; it earned $16 million in the 1983 quarter.
    
    Pepsico said it may sell its Wilson Sporting Goods unit, which had
an operating loss of $16.7 million last year.
    
    The IRS is warning AT&T shareholders that shares received after the
breakup of the Bell System are not fully tax free.
    
    Perrier introduced three citrus-flavored beverages in an effort to
bolster U.S. sales of the mineral water.
    
Markets
    Stock prices continued to advance in heavy trading. The Dow Jones
industrial average fell 4.64 points, to 1,280.59, but advancing
issues led declines by almost a 3-to-2 margin on the Big Board, and
stocks traded over-the-counter and on the American Stock Exchange
rose smartly.
    
    Treasury note and bond yields rose slightly. The Treasury sold $6
billion of 11 1/4 percent notes due in 1995 at an average yield of 11.36
percent. Annual yields on six-month certificates of deposit
stabilized in the latest week, but yields on money fund investments
continued to fall. New York banks are waiting to see whether recently
lowered minimums on deposits in money market and Super NOW accounts
will bring in much new business.
    
    The dollar extended its record-breaking climb in volatile trading.
Gold was unchanged at $302 an ounce in late New York trading. Pork
belly futures plunged on a lack of supplies.
    
International
    The head of West Germany's Dresdner Bank will resign. Hans
Friderichs will devote full time to defending himself against bribery
charges arising from his days as economics minister.
    
nyt-02-06-85 2116est
n094  1825  06 Feb 85
AM-RETIRE 2takes
Stockman Draws Fire on Military Pensions
By BILL KELLER
c.1985 N.Y. Times News Service
    WASHINGTON - An attack on the military pension system by David A.
Stockman, the budget director, drew angry responses Wednesday from
veterans groups, Pentagon officials and some congressional champions
of the military.
    But some key members of Congress picked up Stockman's call for
reform and said that this might be the year for a major overhaul of
military compensation.
    ''I would have said it differently, but Stockman is right,'' said
Rep. Les Aspin, the Wisconsin Democrat who heads the House Armed
Services Committee. ''Military retirement is too expensive. The
Pentagon has failed to grapple with this issue.''
    Stockman said Tuesday that the military retirement system, which
allows men and women in uniform to retire at half pay after 20 years'
service, was ''a scandal'' and ''an outrage.''
    ''The institutional forces of the military are more concerned about
protecting their retirement than they are about protecting the
security of the American people,'' he told the Senate Budget
Committee.
    Stockman also antagonized farmers and their congressional supporters
by telling the senators that farmers' debts were ''willingly incurred
by consenting adults'' and that the government would help them
''because basically we're threatened with a kind of blackmail
situation.''
    At a news conference Wednesday, called to describe the
administration's newly expanded plan to give farmers emergency
credit, Agriculture Secretary John R. Block refused to comment on
Stockman's remarks.
    Asked about the budget director's testimony, Larry Speakes, the
White House spokesman, would say only that Stockman ''was expressing
a personal opinion probably not shared by the president.'' Later the
White House issued a statement that commended ''the sacrifice and
contribution of the men and women in uniform'' but made no direct
comment on the military pension issue.
    In other quarters, Stockman's blunt remarks drew a furious response.
    Wednesday morning, the Senate Armed Service Committee chairman,
Barry Goldwater, acknowledging that he himself received a pension for
his 37 years of active and reserve duty, said: ''I found Mr.
Stockman's remarks about as distasteful as anything I've heard coming
out of this administration, or any preceeding it.''
    Defense Secretary Caspar W. Weinberger, according to a senior aide,
''regarded what Stockman said as an unqualified attack on the
military. It was insulting and demeaning.''
    The Veterans of Foreign Wars sent President Reagan a telegram
declaring: ''The VFW will not be satisfied until the 4-F
draft-dodging Stockman has been fired and you have repudiated his
views.'' Stockman was exempt from the military draft during the
Vietnam War because he was enrolled in divinity school.
    Stockman's spokesman, Edwin L. Dale Jr., issued a ''clarification,''
Wednesday evening saying the budget director ''in no way intended to
impugn the patriotism or devotion of our men and women in uniform,
but was expressing personal frustration with bureaucratic resistance
- not peculiar to the Department of Defense - to reform.''
    But the Senate majority leader, Bob Dole, defended Stockman for his
willingness to take on ''sacred cows.'' Some influential members of
Congress backed the budget director's call for change in the pension
program, which is projected to cost $17.8 billion in 1986, compared
with $7.3 billion in 1976.
    (more) nn
    
nyt-02-06-85 2124est
n095  1832  06 Feb 85
AM-RETIRE 1stadd
NYT WASHINGTON: in 1976.
     Sen. Sam Nunn of Georgia, the senior Democrat on the Armed Services
Committee, while deploring Stockman's language, called for an overall
examination of military pay and benefits, saying the current system
encourages a drain of needed skills.
    ''We have a military pay system, totally, that is not geared to the
modern world,'' Nunn said.
    The military retirement system has been criticized for at least 15
years, but proposals for changes have repeatedly stalled either in
the military services or in Congress.
    Critics have said that the retirement system is more generous than
necessary to recruit and retain skilled personnel, now that basic pay
has been improved.
    Moreover, critics have said the system encourages officers and
enlisted men to retire just as they have mastered the skills that are
needed.
    ''The more important reason to change the system is to get a more
effective fighting force,'' said Martin Binkin, a Brookings
Institution economist who has specialized in military manpower
issues. ''Under the current system, you're keeping a lot of people on
that you shouldn't be keeping on, and you're encouraging people to
leave that could still make a contribution to national security.''
    ''I would argue that as the services become more technologically
oriented, the need for experience is going to become even more
important,'' Binkin added.
    Defenders of the system say the retirement plan is a valuable
inducement to men and women who want to make the military a career.
    Lawrence J. Korb, assistant secretary of defense for manpower, said
in an interview Wednesday that if the retirement plan was made less
generous, skilled people might leave the military before they served
even 10 years.
    ''The 20-year retirement says to these people, 'If you can hang on
for ten more years, we'll make it up to you,''' Korb said. ''We've
found that a very, very powerful determinent. It hurts you with
people over 20 years, but in the 10 to 20 year group you keep more.
On balance I think you come out ahead.''
    Next year, the Pentagon predicts, the government would pay out $18.3
billion to military pensioners if there were no changes in the
system. Reagan has proposed to save about $500 million of that by
suspending the increase normally awarded each year to cover increases
in the cost of living.
    This year, the military pension trust fund will pay benefits to
440,000 retired officers, with a typical lieutenant colonel receiving
$26,028. It will pay 915,000 retired enlisted men, with a typical
retired master sergeant receiving up to $10,716.
    Ninety percent of the military personnel who retired in 1983 were
under the age of 50.
    ''The most telling statistic is that the average military retiree
serves 23 years and collects a pension for 32 years,'' said one
congressional aide, who spoke on the condition he not be named.
''There is a saying in the military that you're dumb to work beyond
20 years, because you're working for half pay.''
    Some critics add that many retirees put their military experience to
work in highly paid jobs with Pentagon contractors after they leave
the service.
    The criticism has become more intense as the pension payments have
ballooned from $422 million in 1955, to $1.4 billion in 1965, to $6.2
billion in 1975. nn
    
nyt-02-06-85 2131est
n096  1842  06 Feb 85
AM-REAGAN 2takes
Reagan's State of the Union Speech Calls for 'Revolution of Hope'
By BERNARD WEINRAUB
c.1985 N.Y. Times News Service
    WASHINGTON - President Reagan urged the nation Wednesday to forge
''a second American revolution of hope and opportunity'' with an
agenda of tax revision, economic growth and elimination of the threat
of nuclear war for the next four years.
    In a State of the Union Message to Congress designed to set the
legislative goals of his second term, Reagan sounded the same buoyant
note that marked his triumphal presidential campaign last year. He
said:
    ''The time has come to proceed toward a great new challenge, a
second American revolution of hope and opportunity; a revolution
carrying us to new heights of progress by pushing back frontiers of
knowledge and space; a revolution of spirit that taps the soul of
America, enabling us to summon greater strength that we have ever
known, and a revolution that carries beyond our shores the gold
promise of human freedom in a world at peace.''
    Dominating the text of the message was the theme of ''opportunity''
for all Americans as the economy burgeons. ''There are no constraints
on the human mind, no walls around the human spirit, no barriers to
our progress except those we ourselves erect,'' Reagan said.
''Already, pushing down tax rates has freed our economy to vault
forward to record growth.''
    Urging the nation to build on the economic as well as foreign policy
record of his first term, Reagan outlined a broad program that aimed
to reduce the federal budget deficits while helping the needy, that
cited the ''dream'' of banning nuclear weapons from Earth while
seeking a space-based shield against missiles.
    ''Our alliances are stronger than ever, our economy is stronger than
ever,'' Reagan said. ''We have resumed the historic role as a leader
of the free world, and all of these together are a great force for
peace.''
    In a reversal of precedent, Reagan sent Congress a federal budget
before the State of the Union Message. His plan, made public Monday,
contemplates overall spending of $973.7 billion by shrinking numerous
domestic programs while sustaining a buildup of the military. Members
of Congress from both parties have already begun criticizing the
proposed military budget as too large.
    In his State of the Union Message, Reagan sought to evoke hope and
optimism for all Americans and for those abroad who yearn for
freedom. Threaded through the message was a commitment to assisting
blacks and members of other minority groups who have criticized his
proposed cuts in domestic spending.
    ''We are here to speak for millions in our inner cities who long for
real jobs, safe neighborhoods and schools that truly teach,'' Reagan
said. ''We are here to speak for the American farmer, the
entrepreneur and every worker in industries fighting to modernize and
compete.
    ''And yes, we are here to stand - and proudly so - for all who
struggle to break free from totalitarianism, for all who know in
their hearts that freedom is the one true path to peace and human
happiness.''
    He also urged a ''historic reform of tax simplification for fairness
and growth,'' and he said the new Treasury secretary, James A. Baker
3d, would meet with leaders of both parties in Congress to shape a
tax measure that ''will be a giant step toward unleashing the
tremendous pent-up power of our economy.''
    Saying ''there must be no forgotten Americans,'' Reagan renewed his
call for designation of decaying urban areas for tax benefits to
assist blacks and members of other minority groups. Other programs
sought by Reagan include training the jobless, encouraging low-income
housing residents to own their own dwellings, and suspending the
minimum wage for teen-agers who seek summer jobs.
    ''Despite our strides in civil rights,'' Reagan said, ''blacks,
Hispanics and all minorities will not have full and equal power until
they have full economic power.''
    Reagan pointedly coupled arms control with a strong military. ''Now
our determination to maintain a strong defense has influenced the
Soviet Union to return to the bargaining table,'' he said.
    In moving toward arms control, Reagan urged Congress to endorse a
key weapon, the MX missile. Both the House and the Senate are to vote
this spring on the procurement of 21 more of the missiles.
    (MORE)
     nn
    
nyt-02-06-85 2141est
n097  1849  06 Feb 85
AM-REAGAN 1stadd
NYT WASHINGTON: the missiles.
    Beyond this, Reagan spoke in strong terms about his long-range plan
to build a shield against incoming missiles. ''It is the most hopeful
possibility of the nuclear age,'' said Reagan, who conceded that ''it
is not well understood.''
    In foreign policy matters, Reagan deplored the Nicaraguan government
and said, ''It is essential that the Congress continue all facets of
our assistance to Central America.'' While he did not specifically
mention secret U.S. aid for opponents of the Nicaraguan government,
he said that ''support for freedom fighters is self-defense, and
totally consistent'' with the charters of the Organization of
American States and the United Nations.
    The president urged allies ''to join us in a practical program of
trade and assistance'' that seeks to spur economic development in the
third world.
    ''We cannot play innocents abroad in a world that is not innocent,''
Reagan said. ''Nor can we be passive when freedom is under siege.
Without resources, diplomacy cannot succeed; our security assistance
programs help friendly governments defend themselves and give them
confidence to work for peace.''
    Reagan also said the administration ''will be studying potential
changes'' in trade policy over the next few weeks and urged a new
round of trade negotiations next year.
    ''We have seen the benefits of free trade and lived through the
disasters of protectionism,'' he said. ''Tonight, I ask all our
trading partners, developed and developing alike, to join us in a new
round of trade negotiations to expand trade and competition and
strengthen the global economy, and to begin it in the next year.''
    Reagan's upbeat tone was underscored while he discussed the economic
vigor of his first term.
    ''We did what we promised, and a great industrial giant is reborn,''
he said. ''Tonight we can take pride in 25 straight months of
economic growth, the strongest in 34 years; a three-year inflation
average of 3.9 percent, the lowest in 17 years, and 7.3 million new
jobs in two years, with more of our citizens working than ever
before.''
    In keeping with his theme of ''a second American revolution'' Reagan
cited his firm commitment to new technology and industry, as well as
opening the ''frontier of space''for research and development.
    Reagan intertwined his theme that the nation was ''poised for
greatness'' with a discussion of the social causes that he has long
supported. He urged Congress to permit organized prayer in public
schools. ''No citizen need tremble, nor the world shudder, if a child
stands in a classroom and breathes a prayer,'' he said.
    At the same time he repeated his call for a ban on abortion, and he
urged Congress to move this year on legislation ''to protect the
unborn.''
    ''It is a terrible irony that while some turn to abortion, so many
others who cannot become parents cry out for children to adopt,'' he
said. ''We have room for these children; we can fill the cradles of
those who want a child to love.''
    
nyt-02-06-85 2148est
n098  1901  06 Feb 85
AM-REAGAN-REACT
Dems Offer Moderate Counter to Reagan's Union Message
By STEVEN V. ROBERTS
c.1985 N.Y. Times News Service
    WASHINGTON - Still reeling from their defeat in the presidential
election last November, the Democrats Wednesday night broadcast a
half-hour program aimed at demonstrating that their party was ''alive
and well'' and willing to listen to the complaints of voters who
defected to the Republican Party in recent years.
    The unusual low-key film was not a direct response to President
Reagan's State of the Union Message, and it actually treated the
president rather gently. Party strategists acknowledged that in light
of Reagan's recent victory, if they had tried to criticize him
directly ''nobody would have listened.''
    But at a news conference introducing the program, Rep. Tony Coelho
of California described the Reagan administration as ''the most
irresponsible, in terms of fiscal policy, of any in modern times.''
     Coelho, chairman of the Democratic Congressional Campaign
Committee, said his party's fortunes would improve now that Reagan
had run his last race.
    ''Ronald Reagan is a very attractive Band-Aid over a festering
wound,'' he said. ''When that Band-Aid is lifted, the Republicans
will have a big problem.''
    The Democrats' program was built around discussion groups with
randomly selected Democratic voters at four sites around the country.
Raymond Strother, the campaign consultant who produced the show,
noted that most of the voters belonged to a group that the party was
particularly worried about: upwardly mobile, skilled workers under 40
years old.
    Film clips of such voters were interspersed with comments by party
leaders, and the politicians selected for the show were mainly the
younger moderates who say the party must move beyond its New Deal
origins and prove its capacity for fiscal responsibility. The
moderator was Gov. Bill Clinton of Arkansas, who is 38. The party's
two congressional leaders, House Speaker Thomas P. O'Neill Jr. of
Massachusetts and Sen. Robert C. Byrd of West Virginia, the Senate
minority leader, appeared only briefly.
    NBC and CBS decided to broadcast the Democrats' program shortly
after Reagan's speech. But ABC decided to broadcast the popular
dramatic show ''Dynasty,'' and run the Democrats' show on Thursday
evening.
    One aim of the Democrats was to gain credibility with viewers by
admitting past mistakes. The only time Walter F. Mondale, the party's
standard-bearer last fall, was mentioned in the program was when one
voter criticized him for advocating tax increases in the campaign.
    On the show, Clinton said, ''This is a party that knows it has to
change.''
    At the news conference, Terry Michael, a spokesman for the
Democratic National Committee, asserted, ''We needed to tell the
American people we were wrong.''
    A second aim was to convince voters that the party was listening to
them. Many film shots showed party leaders nodding thoughtfully as
voters spoke in the discussion groups.
    A third purpose of the program was to stress that Democrats were not
''big spenders'' and that they understood the need for fiscal
restraint.
    Mayor W. Wilson Goode of Philadelphia detailed the cuts he had made
in his city's budget, and Gov. Charles S. Robb of Virginia said that
''the real crux of what government is all about'' is the need for
leaders to make ''hard decisions'' about spending and services.
    Speaking of the electorate, Coelho said: ''They have a perception,
created by the Republicans, that we are the party of tax and spend.
We're trying to show that's not the case.''
    But the Democrats were also trying to show that they did support
programs that benefited the type of middle-class voters who have been
turning away from the party. Various leaders emphasized the party's
determination to fight proposed cuts in such programs as student
loans, mass transit aid and Medicare. Programs aimed at the most
needy, such as welfare and food stamps, were never mentioned.
    In summing up the party's approach to government spending, Clinton
said: ''We want government off our backs, too. But we want it at our
sides.''
    One voter said on the show that the Reagan administration was
creating a ''two-class system'' by promoting justice ''just for the
rich.'' But for the most part, the issue of equal rights for minority
people and women was distinctly downplayed. Geraldine A. Ferraro, the
party's vice presidential nominee, the first woman on a major party's
national ticket, was never mentioned.
    The show also reflected the view of party officials that tax changes
could be an important political issue, and that the Democrats were in
danger of losing the initiative on it. One segment featured Rep.
Richard A. Gephardt of Missouri, co-author of a tax simplification
plan, stressing that Democrats had favored the concept three years
ago.
    ''The tax code is a mess,'' Gephardt said.
    The Democrats treated the subject of the economy gingerly, and Rep.
Jim Wright of Texas, the majority leader, acknowledged that there has
been ''a very acceptable rate of economic growth'' over the past year.
    But Clinton warned that voters were ''uneasy about the economic
shadows looming ahead,'' and he sought to rebut recent comments by
Reagan that Congress was mainly responsible for soaring budget
deficits.
    ''The president must assume responsibility for the debt, too,'' he
said.
    
nyt-02-06-85 2200est
n099  1912  06 Feb 85
BC-TAX-X 2takes
(10th in a series of 12 on preparing your 1984 tax
returns)
By GARY KLOTT
c.1985 N.Y. Times News Service
    NEW YORK - The Internal Revenue Service rarely gives hints as to
what tax return items automatically raise red flags for its auditors,
hoping the secrecy will keep all taxpayers cautious. But the IRS has
made no secret of its escalating war against tax shelters.
    Using new weapons obtained from Congress last summer, along with its
own stockpile of enforcement measures, the IRS is attacking investors
in questionable tax shelter schemes. Taxpayers who manage to escape
the IRS assault will find their tax shelter deductions have been cut
back by Congress in other ways.
    Taxpayers who have invested in wht are suspected as being
''abusive'' shelters may well feel the wrath of the IRS coming to
bear even before their return is audited - or even before their
return is filed.
    ''They're putting the fear of God into people up front,'' said
Mortimer M. Caplin, a Washington attorney and a former IRS
commissioner. ''The tax shelter area is the most significant
compliance issue the IRS has in front of them right now, and they are
devoting a major portion of their resources to cope with this.''
    The agency's newest strategy is to freeze the refunds of taxpayers
who claim deductions on their returns based on an investment in a tax
shelter the IRS suspects is abusive.
    Abusive shelters are those that offer little in the way of profit
potential, but much in the way of tax benefits, and which are
inflated by the use of creative accounting techniques and the
overvaluing of property.
    Refund checks have traditionally been mailed to taxpayers long
before IRS auditors have had a chance to scrutinize tax returns. Now,
IRS ''detection teams'' are making a preliminary review of tax
shelter returns before refund checks are processed.
    The IRS may act even earlier, if it suspects a tax shelter promotion
may be abusive. The IRS will send out ''pre-filing notification''
letters to participating investors, warning that if they claim
benefits from the tax shelter their returns will be audited.
    The IRS will also have much more information at its disposal in 1985
to monitor tax shelters. Certain tax shelter promoters - generally
those offering a return of more than 2-1 on the initial investment in
any of the first five years - were required, as of last September, to
register with the IRS. The promoters are now required to send the
registration number to participating investors, who will have to
attach Form 8271 to their 1984 tax return.
    Even investors in legitimate tax shelters will find some of the
benefits cut back by the Deficit Reduction Act of 1984. For instance,
real estate acquired after March 15, 1984, must be depreciated over
18 years, instead of 15 years, meaning smaller deductions each year.
    Tax shelter investors who waited until year-end to invest may also
find the deductions nowhere near as bountiful as they were in prior
years. One reason is that Congress has banned deductions for
prepayment of services that were not to be performed until far into
the future.
    Cattle-feeding tax shelters once attracted many year-end tax shelter
shoppers. Investors were able to claim big deductions by prepaying
for all the feed that the cattle would eat over the ensuing year. But
under the new law, only the feed consumed by the end of next March
will be allowed for deductions on 1984 returns.
    ''The law effectively knocked the cattle-feeding business out of the
box,'' said Fuhrman Nettles of Robert A. Stanger & Co., a tax shelter
research firm.
    Some tax shelter investors will fall prey to the ''alternative
minimum tax,'' which is intended to reinflate the tax bills of
upper-income Americans who make generous use of tax shelters and
other tax benefits.
    Last year, when the alternative tax was vastly revised and expanded,
558,000 taxpayers had what accountants refer to as an alternative
minimum tax problem.
    The tax is intended to ensure that all Americans pay a minimum
amount of tax. The tax is triggered when the taxpayer cuts his taxes
too much, by taking advantage of too many tax benefits, or
''preferences.'' The biggest threats are to those who made heavy use
of tax shelters, had substantial long-term capital gains relative to
the size of their income, had large itemized deductions or exercised
large incentive stock options.
    Because so many variables are involved in the formula for
calculating the minimum tax, it is extremely difficult to determine
if an individual is subject to the tax without actually going through
the computation.
    Christopher L. Hartwell, a tax attorney at the Palo Alto, Calif.,
law firm of Wilson, Sonsini, Goodrich & Rosati, said a rule-of-thumb
formula was that if the taxpayer's income was as great as, or greater
than, the amount of the taxpayer's tax preferences, the individual
would probably not be subject to the alternative tax.
    (MORE)
    
nyt-02-06-85 2211est
n100  1923  06 Feb 85
BC-ANZUS-ASSESS
News Analysis
Eds. 15thgraf, MccGwire is correct.
By CHARLES MOHR
c.1985 N.Y. Times News Service
    WASHINGTON - New Zealand's armed forces have fewer than 12,700 men;
its navy consists of four frigates, six patrol boats and seven
helicopters. Moreover, the Soviet Union has no vital interest in the
Southwest Pacific and has paid little attention of any kind to the
region.
    Yet in the last few days United States officials have treated a
refusal by New Zealand's prime minister, David Lange, to permit a
port visit by an American destroyer as a major foreign policy crisis,
as a matter of ''grave concern,'' and an event meriting possible
economic retaliation against New Zealand's lamb, wool and butter
exports.
    The vehemence displayed by Reagan administration officials has
directed international attention to the issue just as Prime Minister
Bob Hawke of Australia - the third partner in what is known as the
ANZUS alliance - arrived in Washington for a state visit.
    The most noticeable event of the visit was an announcement that the
United States would drop a request that Australia permit the use of
its soil for United States aircraft monitoring the impact area of MX
missile tests in the Tasman Sea.
    The 1951 ANZUS treaty imposes no legal obligation on New Zealand or
Australia to permit American port calls or the use of installations,
saying only that the parties will ''act to meet the common danger''
in case of an attack on one or more of them.
    U.S. aircraft have often flown supply missions from New Zealand to
American research bases in Antarctica, but the Pentagon says the
United States has no military installations in that nation.
    Australia contains valuable installations, including a ground
station near Pine Gap that has long gathered data from U.S.
satellites and that will do so for the secret new communications
interception satellite launched by the space shuttle Discovery this
year.
    Other sites in Australia include seismic stations to monitor Soviet
nuclear tests, a communications post that may permit low-frequency
radio communication with submerged submarines and an over-the-horizon
radar post. The existence of these installations, however, does not
depend on the treaty but on Australia's habitual loyalty and
friendship. There seems to be little possibility that the present
controversy will threaten the continued use of the covert, and thus
deniable, U.S. use of Australian soil.
    Why have U.S. officials made such an issue of Lange's insistence
that American ships may not call in New Zealand unless he is assured
they carry no nuclear weapons?
    One reason, perhaps the overriding one, seems to be that U.S.
officials drew from private conversations with New Zealand officials
a belief that Lange would find a way to permit a port call without
requiring a certification that the ship was nuclear-free. These
officials now say they feel betrayed, although Lange campaigned for
his election seven months ago on a pledge to exclude nuclear devices
from New Zealand.
    Another reason, according to a high official who asked not to be
named, is a fear that the affair could establish a ''precedent'' that
will ''permit other zealous people to get ideas.''
    What this means is that Washington fears that a successful display
of independence by Lange might encourage some Europeans to bar
deployment of United States medium-range missiles - or encourage
Japan, which officially forbids nuclear weapons in its ports, to
insist on disclosure of what American ships are carrying. It is
Washington's policy not to confirm the existence of such weapons,
even on Nimitz-class aircraft carriers, which obviously carry them.
    The same high official also expressed a belief that New Zealand's
action might adversely affect the U.S.-Soviet nuclear arms control
negotiations, which begin March 12 in Geneva, saying, ''Here is a
small crack appearing in alliance solidarity.''
    People outside the administration inner circle, however, appear to
be baffled by its behavior.
    Michael MccGwire, a well-known British analyst of naval affairs at
the Brookings Institution, said, ''If they are worried about a
precedent, the best way to create one is what they are doing.''
    He and other analysts believe that the only real value of ANZUS is
the political support Australia and New Zealand have traditionally
rendered the United States and that to poison political relations
because Lange honored a campaign promise may not be productive.
    One of the main dangers is that coercion applied to New Zealand
might have an adverse effect on Australian public opinion.
    ''Older Australians have an almost knee-jerk loyalty to the United
States, but no Australian likes bullying,'' MccGwire said. Hawke is
understood to have asked to be relieved of the obligation to provide
support for the MX missile tests because of ndignation from members
of his own Cabinet who were not informed early of the pledge. But it
is possible that the port call dispute with New Zealand and the way
in which Washington handled it would have forced cancellation of the
Australian support in any case, according to MccGwire and other
analysts.
    
nyt-02-06-85 2222est
n101  1931  06 Feb 85
BC-TAX-X 1stadd
NYT NEW YORK: alternative tax.
    The average taxpayer is usually protected from the alternative tax
because of a standard exemption in the alternative tax formula:
$40,000 on a joint return and $30,000 on a single.
    The alternative minimum tax applies only if, after calculating the
regular tax, the alternative tax produces a higher tax.
    The alternative tax is a flat 20 percent rate, but it is assessed on
a much broader base of income than the regular tax. Many of the
deductions that can be used to reduce regular taxable income are not
allowed when computing alternative minimum taxable income. As an
added complication, the alternative minimum tax becomes subject this
year to quarterly estimated payments.
    One tax shelter that went largely untouched by Congress is that of
vacation homes. Those who use their home strictly for personal
pleasure are entitled to deduct real estate taxes and mortgage
interest payments, just as with principal residences.
    As a bonus, for those who rent out their homes no more than 14 days
a year, the rental income for those two weeks is tax-free. This
benefit would have been of particular value to Los Angeles residents
who rented out their homes during the Olympics last summer.
    For homes rented out longer, rental income becomes taxable, but
deductions for depreciation, maintenance, and utilities can also be
claimed, in addition to mortgage interest and taxes. The amount of
deductions that can be claimed depends on how much personal use is
made of the home.
    For those who limit their personal use to 14 days a year or 10
percent of the days that the home is rented out - whichever is
greater - deductions can exceed rental income. Thus, the extra tax
deductions can be used to offset other income the taxpayer has.
    But if personal use is greater than 14 days or 10 percent of the
time, then deductions are limited. Deductions cannot exceed rental
income. Further, expenses have to be divided between personal and
rental use.
    The way in which this allocation is made can make a difference of
thousands of dollars in deductions for people who have homes in
seasonal vacation areas.
    The IRS dictates one way of allocating the expenses: Owners must
bunch their expenses only into the time the vacation home is
physically occupied by either renters or the owner himself. But tax
accountants, citing two appeals court decisions in the last couple of
years, have been recommending a more liberal method that spreads
expenses over the entire year and will result in far bigger
deductions.
    Richard J. Stricof, a tax partner of the accounting firm of Seidman
& Seidman, gave the example of a vacation home owner who rented out
his home in June and July, for $10,000, and personally occupied it in
August. Interest and real estate taxes on the home came to $1,250 a
month, or $15,000 a year.
    Under the IRS formula, no deductions beyond interest and taxes could
be taken. The reason: two-thirds of the interest and real estate
taxes, or $10,000, must be allocated to the rental. And since
deductions for the vacation home cannot exceed gross income from the
rental - $10,000 - the owner cannot deduct such things as
depreciation and maintenance.
    But under the court-sanctioned method of spreading the interest and
tax expense over the entire year, only $2,500 in interest and taxes
(two months' worth) would have to be allocated to the rental. Thus,
up to $7,500 in other vacation home rental expenses, such as
depreciation and maintenance, could also be deducted.
    (Next: Filing New York, New Jersey and Connecticut tax returns.)
    
nyt-02-06-85 2230est
n102  1941  06 Feb 85
AM-FARM
By SETH S. KING
c.1985 N.Y. Times News Service
    WASHINGTON - Agriculture Secretary John R. Block, defending
President Reagan's plan to eliminate most farm price supports and
subsidies, said Wednesday that two-thirds of this country's farmers
were making all their money from the marketplace without help from
the government and the remaining one-third would have to learn to do
the same.
    ''Those two-thirds are in just as good a shape as those who are
depending on the government,'' he declared. ''I'm painfully aware of
the difficulties many farmers are having today. But I'm equally
certain American agriculture has a great future if it's willing to
compete for exports at world market prices. We can't do that if we
continue with a farm policy built on false prices, false hopes and
high dependence on the government.''
    Block made the remarks in answering questions at a news conference
called to make known details of the Reagan administration's newly
expanded plan to provide emergency credit assistance to farmers.
    The original plan, announced last September, offered federal
guarantees on endangered commercial loans to farmers if bankers
reduced the principal amount owed by at least 10 percent. In response
to pleas from Farm-Belt Republicans in Congress, the administration
reluctantly agreed Friday to give banks the option of qualifying for
these guarantees if they reduced interest rates on such loans enough
to lower by at least 10 percent the amount the farmer has to pay on
his debt . Details of this ''interest write-down option,'' which went
into effect Wednesday, were discussed by Block.
    Congress provided $650 million for the loan guarantee program last
fall. About $625 million of this is still available because bankers
have resisted reducing outstanding balances owed, fearing a
diminution of their assets. Some farm spokesmen have said the Farmers
Home Administration has not processed applications quickly, and Block
said Wednesday that the number of people working on the program was
being increased.
    The government's efforts to ease the financing crisis some farmers
are experiencing is unrelated to the extensive changes in farm income
stabilization policy proposed in President Reagan's 1986 budget. An
administration farm bill that would reduce subsidies and price
support loans over the next five years and also shift government farm
loans to private banks will be introduced the week of Feb. 18, Block
said Wednesday.
    He was then asked why the administration was preparing legislation
that would cut farm aid at a time when country bankers and
congressmen from farm states were demanding more help and contending
that at least 10 percent of their customers and constituents were
facing bankruptcy this spring.
    ''Any farm program we write for 1986 won't make a whit of difference
in how many farmers fail or succeed this year,'' Block replied.
    ''But the interest write-down option,'' he added, ''may help some
farmers whose credit is exhausted keep going til harvest.''
    Block declined to comment on a remark Tuesday by Budget Director
David A. Stockman, who told the Senate Budget Committee he could not
understand why the taxpayers should be asked to refinance bad farm
loans that both the bankers and the farmers had ''willingly incurred
as consenting adults.''
    But the agriculture secretary seemed to agree in part with Stockman
when he rejected a suggestion from the Independent Bankers
Association that the government drop the 10 percent reduction
requirement on loan guarantees to make the credit rescue plan more
attractive to bankers. The small bankers also offered to reduce
interest on new one-year farm operating loans by four percentage
points if the government would pay them the equivalent of two
percentage points of interest on those loans.
    ''We won't support any part of that,'' Block declared. ''The bankers
have a responsibility to help on those old loans themselves and to
help farmers get started again. The commercial banks, not the
government, made the loans in the first place.''
    Republican senators who were pressing the administration on the
option of lowered interest rates said it was only a first step in
providing additional credit aid and that they would fight for more.
    As for Stockman's remarks, Sen. Charles E. Grassley, R-Iowa, said,
''They stunk.''
    ''It showed insensitivity to people who are real live Americans,''
he declared. ''I think a public official ought to be more caring
about people. After all, many of the farmers' problems have been
caused by political decisions in Washington in the last six years.''
    
nyt-02-06-85 2240est
n103  1948  06 Feb 85
BC-TV-REVIEW
'The Bad Seed'
By JOHN CORRY
c.1985 N.Y. Times News Service
    NEW YORK - It is comforting to believe in inherited evil; it
explains so many things. Freud suggested that the psyche can be
cleansed, purged and made whole, and that for every act there's a
reason. Sometimes it seems that the whole popular culture agrees. If
we work hard, we can make ourselves and everyone else better. That's
difficult, however, and the world doesn't seem to improve. ''The Bad
Seed'' tells us why: Evil is in our bloodstreams; no matter what, it
just won't go away.
    ''The ABC Thursday Night Movie,'' at 8 p.m. on ABC sturdily adapts
''The Bad Seed'' for television. The 1956 movie version, adapted from
Maxwell Anderson's play (which, in turn, was adapted from William
March's novel) had a coda. In 1956, the idea that a child could
murder people was distressing; the idea that she could get away with
it was even worse. Therefore, the coda: The actors took bows, and
Nancy Kelly spanked Patty McCormack. The film makers wanted to
suggest that it was all a joke. Real life couldn't possibly be that
way.
    The television production makes no such concession - a sign of our
changing times. Indeed, the last image is of Rachel (Rhoda in the
novel) smiling contentedly, just the way Damien does at the end of
the movie ''The Omen'' and its sequel ''Damien - Omen II.'' The
Damien movies did not win great critical applause, but they were
popular, anyway. Like ''The Bad Seed,'' they give us evil as
unchanging. The only difference was that Damien messed with the
occult.
    The little girl is played on television by Carrie Wells. The role of
the nosy neighbor (Lynn Redgrave) seems to have grown. Those are
peripheral points. It is still clear that Rachel, now 9 years old,
was born a killer.
    Meanwhile, the television production also gives us David Carradine
as the handyman who guesses Rachel's secret. Carradine - slack jaw,
lank hair, loose lower lip - is born to the role. Rachel does him in
eventually, of course, but for a while he takes the offensive.
''You'll shrivel up, all burned like an old piece of bacon,'' he
says, threatening Rachel with the electric chair. He seems to be
almost drooling.
    Blair Brown plays Rachel's widowed mother, and she is fine. There
even seems to be a familial resemblance. Richard Kiley is Rachel's
grandfather, and Carol Locatell - in the role Eileen Heckart played
on the stage and in the movie - is the mother of the drowned boy.
Miss Locatell's part seems smaller than Miss Heckart's, but she has a
wonderful moment when she confronts Miss Brown.
    Miss Redgrave, meanwhile, is a small suprise. She wears scarfs, big
earrings, hideous warm-up suits, and is brassy. David Ogden Stiers,
who plays her husband, says she races through primal therapy, EST,
Pritikin, deep therapy and Nautilus. The television adapter, George
Eckstein, may even be giving us a message here. None of those things
matter so long as there are kids like Rachel around.
    The production is directed by Paul Wendkos. Eckstein is also the
executive producer.
    
nyt-02-06-85 2247est
n104  1952  06 Feb 85
AM-AUSTRALIA ADDATEND
NYT WASHINGTON: that commitment.''
    American and Australian officials said that the MX issue first arose
under the government of Prime Minister Malcolm Fraser, a
conservative. As part of a test of the MX's accuracy and other
performance factors, the United States is contemplating the launch of
an unarmed missile from California across the Pacific to its full
6,000-mile range.
    The Fraser government had agreed to have the missile land in the
Tasman Sea off Australia's east coast and to allow American
surveillance planes to operate out of Sydney to monitor the last
stages of the flight. In 1983, when Hawke's party took power, Hawke
and his foreign and defense ministers agreed to continue the
commitment with modifications, such as assurances that the missile
would land beyond Australia's 200-mile fishing limit.
    But this agreement apparently was not conveyed to other members of
the Australian Labor Party or to the public. Last week, reports of
the arrangement with the United States appeared in the Australian
press, and a Cabinet committee then was asked to approve it.
    It did so, but many members of Hawke's party reacted angrily to the
idea of helping test a missile that could fire 10 warheads, and
called for the repudiation of the accord.
    The controversy developed while Hawke was traveling in Europe on his
way to the United States. After consultations by telephone with aides
in Canberra, Hawke concluded that he would have to ask the United
States to consider alternatives for monitoring the tests. He told
this to journalists aboard his plane en route to the United States,
and stories to this effect appeared in Australian newspapers
Wednesday.
    
nyt-02-06-85 2251est
n105  1957  06 Feb 85
AM-ENVIRON
By PHILIP SHABECOFF
c.1985 N.Y. Times News Service
    WASHINGTON - Members of a Senate panel voted unanimously Wednesday
to recommend the nomination of Lee M. Thomas to head the
Environmental Protection Agency.
    Every member of the Senate Environment and Public Works Committee
who spoke at Wednesday's confirmation hearing, Democrat and
Republican, praised Thomas's qualifications for leading the agency.
However, many of them raised questions about whether he had enough
influence within the Reagan administration to act independently of
the Office of Management and Budget.
    Representatives of several environmental organizations also endorsed
his nomination, some quite warmly.
    The nomination, which was endorsed by a 16-to-0 vote, could reach
the floor of the Senate as early as Thursday.
    Throughout the hearing, questions were raised by senators and
witnesses about whether Thomas, who has been acting administrator of
the agency since the resignation of William D. Ruckelshaus last
month, had enough political power to resist efforts by the budget
office to intervene in the environmental regulatory process.
    Sen. Robert T. Stafford, R-Vt., who heads the environment committee,
complained that the budget office frequently ''sought to impose its
will'' on the environmental agency. He also said Thomas lacked ''the
personal power base'' that enabled his predecessors to resist the
budget office's efforts to dictate regulatory decisions.
    ''If Lee Thomas does not have the political stature now, it is his
job - indeed it is legal obligation - to develop it,'' Stafford said.
    Lloyd Bentsen of Texas, the committee's ranking Democrat, expressed
concern that environmental decisions would be made though ''backroom
decisions at the OMB.'' He said a recent example appeared to be the
environmental agency's withdrawal of its plan to gradually eliminate
all uses of asbestos, which has been found to cause lung cancer in
humans, after the proposal was sent to the budget office for scrutiny.
    Critics of the Reagan administration's environmental policies have
frequently charged that the budget office has blocked or weakened
environmental rules to reduce the economic burden on industry and on
the federal budget.
    Thomas, a career civil servant, was head of the environmental
agency's toxic waste programs before being named to lead the agency.
    
nyt-02-06-85 2256est
n106  2007  06 Feb 85
BC-RESEARCH
Exclusive 10 p.m. EST embargo
House Panel to Take Hard Look at Science Research
By PHILIP M. BOFFEY
c.1985 N.Y. Times News Service
    WASHINGTON - The House Science and Technology Committee will begin
the most extensive congressional study of American science policy in
two decades Thursday with an agenda that challenges major elements of
the way research is financed and evaluated.
    The 63-page agenda, drawn up by the committee's study group on
science policy, is sure to raise concern among scientists. It calls
for an examination of accountability in science, including the
possibility of using ''hard data and quantitative analysis'' to
evaluate the worth of basic and applied research programs that have
traditionally been supported largely on the basis of assertions that
such work is beneficial.
    The agenda suggests such an examination might be needed partly
because of the small but growing problem of scientific fraud and,
more important, because of the rapid rise of science budgets, which
have raised questions about whether support has been expanded to
include ''lower quality and marginal work.''
    ''The payoff from science has always been surrounded by a certain
degree of rhetorical vagueness,'' said the study group, which
comprises 18 committee members, including its ranking Democrat and
Republican. It added, ''There is a need, as total government
resources become scarce and the fraction devoted to science becomes
more significant, to understand much more precisely what the payoff
from society's support of science provides in terms of specific
benefits.''
    The study, which is expected to take two years, is to begin at an
organizational meeting of the committee on Thursday, at which the
agenda will be presented for approval and made public. The group is
headed by Rep. Don Fuqua, D-Fla. the committee's chairman.
    The committee has generally suppported scientific research but its
agenda is notable for a willingness to re-examine the value of some
of the most revered institutions and mechanisms of the scientific
world.
    The agenda called for re-examination of the whole system of federal
financing of science. It questioned whether having many different
federal agencies ensures that all worthwhile subjects are explored,
as most scientists contend, or whether the system leads to waste,
duplication and higher costs, as some critics suggest.
    It also questioned whether the ''project grant system,'' under which
agencies support the best research proposals submitted by scientists
on a competitive basis, should be supplemented by block or formula
grants based on other criteria, including geographical distribution
and costs.
    The report even said that the scientific community's revered ''peer
review system,'' in which panels of scientists evaluate the quality
of research proposals and rank them for federal financing, ''appears
to be biased against radical, high-risk research project proposals
and against younger investigators.'' It called for evaluation of
alternative selection methods as well.
     Leading scientific institutions will also come under scrutiny. The
agenda calls for a review of the ''impact, quality and cost'' of the
advice offered to the government by the prestigious National Academy
of Sciences, which counsels a wide range of federal agencies and
Congress on technical issues.
    Similarly, the role of university research, industrial firms, and
national laboratories will be reassessed to determine if there is a
need for new kinds of institutions to perform needed research.
    The study will not generally try to determine which scientific
disciplines, such as chemistry or astronomy, are most promising. But
it will focus special attention on what contributions might come from
the social and behavioral sciences. The Reagan administration
initially tried to cut sharply research funds for these fields, but
Congress protected them from drastic reductions.
    The study will examine the impact of the growing military research
programs on civilian science, will try to establish national goals
for science, and will try to determine if there is an optimum level
of federal support for science. It will search for some means by
which Congress, few of whose members have scientific training, can
make independent judgments about the quality of research.
    
nyt-02-06-85 2306est
n107  2015  06 Feb 85
AM-CREDIT
(BizDay)
By MICHAEL QUINT
c.1985 N.Y. Times News Service
    NEW YORK - Yields rose slightly Wednesday for Treasury notes and
bonds, while rates for securities due in less than a year were little
changed.
    Trading in Treasury notes and bonds fluctuated during the day,
according to securities dealers' assessments of demand for $6 billion
of 11 1/4 percent Treasury notes due in 1995, which were auctioned at 1
p.m. at an average yield of 11.36 percent. Prices declined during
morning trading, as dealers sought to raise yields to levels that
would attract more investor demand for the new Treasury notes. But
much of the decline was reversed late in the day, when results of the
10-year note auction showed that demand was stronger than expected.
    ''According to our trading desk, the weight of the Treasury's
borrowings began to tell on the market,'' said Maury Harris, chief
economist at Paine Webber Inc.
    Although yields on notes and bonds are slightly higher than a week
ago, they remain roughly equal to the levels of July 1983, and some
analysts such as Harris expect that low inflation will eventually
lead to lower bond yields this year.
    Many portfolio managers agree that low inflation argues in favor of
higher bond prices and lower yields, but they are still reluctant to
aggressively add to the existing holdings of long-term issues.
    ''Inflation continues to be favorable, and should prevent any upward
spike in bond yields,'' said Albert A. Wagner, director of
fixed-income invesments at the Boston Co., an investment advisory
firm. ''But attention in the market may be shifting from inflation to
the prospects for continued good enconomic growth, which suggests a
pattern of gradually rising rates.''
     Wagner noted that the prospect of a federal budget deficit of more
than $200 billion this fiscal year also deters some potential
investors in notes and bonds. ''There is a lot of skepticism about a
deficit-reduction package, so if something is accomplished in
Washington, it would be good news for the market,'' he said. ''If
nothing much happens, that is probably already built into the
market.''
    When trading stopped, the new 11 1/4 percent Treasury notes due in 1995
were offered with a yield of 11.32 percent, down from the 11.40
percent yield quoted in midafternoon, but up from 11.30 percent late
Tuesday.
    In advance of Thursday's auction of $5.75 billion of new 30-year
Treasury bonds, securities dealers offered the issue with a yield of
11.16 percent, down from 11.20 percent earlier in the day, but up
from 11.10 percent the day before. The 10 3/8 percent notes due in 1988
were offered late in the day at 99 31-32, up slightly from an average
price of about 99 30-32 at Tuesday's auction.
    In contrast to falling prices and rising yields for notes and bonds,
rates for short-term securities were little changed Wednesday. Market
particpants noted that the overnight rate for bank loans in the
federal funds market dropped to as low as 8 1/8 percent, and traded at 8
3-16 percent most of the day. As recently as Jan. 31 and Feb. 1, the
overnight rate averaged about 8.75 percent, and some analysts said
the Fed could be encouraging a slight increase in overnight rates
without overtly tightening monetary policy.
    Despite the lower federal funds rate Wednesday, many analysts said
the Fed's monetary policy was likely to allow the funds rate to
fluctuate between 8 1/4 percent and 8 3/4 percent.
    The lower rate was not consistent with a tightening of policy,
Harris of Paine Webber said Wednesday. ''But even if they have not
tightened yet, they will have to do so in the future, unless money
supply growth slows down.''
    He estimated that the nation's money supply grew at about a 10
percent rate during January, about the same growth rate as for the
last three months. A modest decline in money supply, of $1 billion or
$2 billion, is expected Thursday, followed by a large increase the
following week.
    
nyt-02-06-85 2314est
n108  2025  06 Feb 85
BC-SAFIRE-COLUMN
(Commentary)
ESSAY: American Revolution II
By WILLIAM SAFIRE
c.1985 N.Y. Times News Service
    WASHINGTON - Presidents, as their years go by, change their view of
the State of the Union. The first assessment is usually bad, to leave
room for improvement; Jerry Ford went as far as to say, candidly,
''The State of the Union is not good.'' It always gets better.
    In 1982, with recession looming after his first year in office,
Ronald Reagan finessed the traditional requirement of putting the
state in a nutshell by saying how it would one day be: ''I can report
to you tonight that in the near future the State of the Union and the
economy will be better - much better - if we summon the strength to
continue on the course that we have charted.''
    A year later, with unemployment up and when ''Reaganomics'' was
giving voodoo a bad name, he was cautious: ''The State of our Union
is strong, but our economy is troubled.''
    Last year, the operative phrase in the address was optimistic as the
re-election campaign began: ''I am pleased to report that America is
much improved, and there is good reason to hope that improvement will
continue through the days to come.''
    In his fourth bite at the apple Wednesday night, Reagan reported
that ''the American people have brought forth a nation renewed -
stronger, freer, and more secure than before.''
    He could have described our state as one of general satisfaction,
but that would sound smug. And smugness, the president evidently
realizes, is not conducive to greatness.
    His speech will not be reviewed in this space for its rhetoric, as
the second inaugural was, because a message to Congress is
necessarily laden with programmatic weight. However, one passage
about a ''Second American Revolution'' deserves attention because it
summarizes the themes of his next term, and if this is what he is
trying to be remembered for, we ought to think about it.
    (The phrase itself brings back painful memories: Richard Nixon
hailed a ''New American Revolution,'' and that was supposed to be the
theme of his administration leading up to the Bicentennial. But when
it began to be referred to as ''NAR,'' somebody pointed out to the
president that it was Nelson Aldrich Rockefeller's initials, and that
was the end of the New American Revolution.)
    Reagan calls for a ''revolution of hope and opportunity.'' That's
his way of describing work incentives through lower tax rates and
more reliance on self-reliance, but with a laudable second-term
emphasis on extending some measure of relative prosperity into the
ranks of the poor. Thus Jack Kemp's ''enterprise zones'' offering tax
breaks to businesses locating in poor neighborhoods get a push, along
with the teen-age wage, summer pay mistakenly opposed by organized
labor.
    ''... a revolution ... pushing back frontiers of knowledge and
space.'' He cannot mean more student loans or a larger Department of
Education, so we can read this as a reach for research into space
defense and exploration. Space suffered after the Kennedy era, when
the vogue was to claim that money was needed ''here on earth''; but
the needs of high-technology stimulus are fusing with the new space
defense plans and a general interest in space stations and
basic-research adventure. As the sign in the sky reads: Watch this
space.
    ''... a revolution of spirit that taps the soul of America ...''
This is the ''traditional values'' pitch, which the president
believes in and which goes over well, but which fortunately loses the
name of action when it gets to specifics like amendments for school
prayer and abortion, or weakening the accused's protection of habeas
corpus.
    ''... a revolution that carries beyond our shores the golden promise
of human freedom in a world at peace.'' This is a hard-line idea in a
soft-sounding phrase. Hawks speak of ''extending freedom,'' which
means challenging the notion that every nation now under communism
must remain so; his ''beyond our shores'' will resonate in every
conservative heart and hearthstone. Every president is for peace, but
by coupling it with ''human freedom'' as his central foreign-policy
goal, Reagan shows he is not lusting after a quickie arms agreement.
    He has told us he plans to stay on his course: priority of defense
over social spending; no new taxes to solve the deficit danger; much
praise of patriotism, God and family; and most important, a kind of
belligerent push for peace through strength that seems to be working.
''We cannot play innocents abroad in a world that is not innocent''
is more than a good line.
    
nyt-02-06-85 2324est
n109  2036  06 Feb 85
AM-POLICY
By HEDRICK SMITH
c.1985 N.Y. Times News Service
    WASHINGTON - Former Secretary of Defense James R. Schlesinger
asserted Wednesday that President Reagan's main difficulty in winning
support for his Pentagon budget, Nicaragua policy and missile defense
proposal was congressional distrust of administration objectives and
credibility.
    ''A national consensus cannot simply be wished into being,'' he told
the Senate Foreign Relations Committee. ''It can be restored only
gradually over time, if at all. It will come about only through the
development of mutual trust, reasonable success and the sustained
credibility of the executive branch.''
    In a review of American foreign policy, Schlesinger called Reagan's
hope for a total strategic defense to protect American cities an
illusory plan that would cost ''well over half a trillion dollars and
probably will exceed a trillion.'' Moreover, he said, the ''Star
Wars'' proposal shatters political consensus by breaking with
nation's past strategic doctrine.
    Schlesinger, who has served in both Republican and Democratic
administrations, asserted that ''there is no way'' the administration
can sustain its military buildup in the face of enormous deficits
without a tax increase. So long as there are sharp divisions on the
budget, he added, it is virtually impossible to obtain a consensus on
foreign policy.
    On Central America, he said the debate over whether to resume aid to
Nicaraguan rebels was less influenced now by policy considerations
than by the breakdown of trust between the executive and legislative
branches of government because, he said, the administration had not
openly spelled out clear and consistent objectives.
    ''Nicaragua has moved beyond a substantive issue to an issue of
trust between the two branches,'' he said in response to questioning
by Sen. Richard G. Lugar, the committee chairman, who has organized
hearings on the broad scope of foreign policy.
    ''That issue of distrust has to be resolved,'' Schlesinger added.
''This is an issue that transcends the oversight function of the
intelligence committees because they are not charged with judging
policy.''
    The central theme of his broad-gauged assessment of American power
and commitments abroad was that no administration could sustain a
policy unless it maintained credibility with Congress. He drew on his
experience as secretary of defense under Presidents Nixon and Ford,
director of central intelligence under Nixon and energy secretary
under President Carter.
    Under questioning by Sen. Larry Pressler, R-S.D., Schlesinger
quickly took issue with Reagan's hope that his ''Star Wars'' proposal
would render nuclear weapons obsolete.
    ''The notion of a defense that will protect American cities is one
that will not be achieved, but it is that goal that supplies the
political magic, as it were, in the president's vision,'' he said.
But he found a more limited defense, shielding American land-based
missiles ''well worth examining.''
    Schlesinger took sharp issue with estimates that a limited defense
would cost only about $60 billion. That, he said, was an unconvincing
estimate and a come-on price to gain support. The actual costs, he
said, would be much higher but could not be known until more research
was done.
    In a broadly analytical opening statement, Schlesinger asserted that
since the early postwar period American foreign policy had suffered
from two major problems: first, a decline in American power without a
matching decline in overseas commitments, and second, a breakdown in
the political consensus behind foreign policy since the Vietnam War,
which brought increasing congressional assertiveness.
    Despite congressional cries for reducing American commitments
abroad, Schlesinger argued against moves to ''reduce or jettison''
such commitments, saying these might embolden ''predatory powers'' to
challenge American interests.
    He sided with Secretary of State George P. Shultz in his policy
debate with Secretary of Defense Secretary Caspar W. Weinberger, who
has argued against American involvement in wars abroad without public
approval in advance.
    ''I cannot concur with the emerging belief that the United States
must only fight popular, winnable wars,'' he said. ''The role of the
United States in the world is such that it must be prepared for, be
prepared to threaten and even be prepared to fight those intermediate
conflicts that are likely to fare poorly on television.''
    He said he meant conflicts between such ''glorious little wars'' as
the quick seizure of Grenada and a longer, full-scale conventional
war in Europe.
    But under questioning by Sen. Christopher J. Dodd, D-Conn.,he warned
repeatedly that the administration would have to make greater efforts
to restore its credibility with Congress by setting out its
objectives clearly.
    
nyt-02-06-85 2335est
n110  2043  06 Feb 85
AM-BULGARIA
U.S., Bulgaria Exchange Accusations Over Drug Smuggling
By HENRY KAMM
c.1985 N.Y. Times News Service
    SOFIA, Bulgaria - Bulgaria and the United States exchanged
accusations Wednesday over drug smuggling, with the Bulgarians
charging that the Americans, for political reasons, had halted talks
aimed at cooperative control of narcotics and arms traffic.
    The United States responded with a statement by Ambassador Melvyn
Levitsky, saying that the Bulgarian government had failed to move
against known foreign narcotics dealers residing in Bulgaria.
    At a news conference in the modernistic Palace of Culture, Bulgaria
also disclosed that it was preparing a trial in absentia against
Mehmet Ali Agca, the Turk who shot and wounded Pope John Paul II in
1981, on charges of slandering Bulgarian nationals.
    A Bulgarian airline official, Sergei Antonov, is awaiting trial in
Rome on a charge of having plotted the assassination with Agca. Two
other Bulgarians have also been indicted, but left Italy earlier.
    The news conference was devoted mainly to the narcotics issue, but
the Bulgarians took the opportunity to make available publications in
a number of languages seeking to demonstrate Antonov's innocence.
    On narcotics, the Bulgarians presented statistics on drug seizures
at the borders with Turkey and Yugoslavia and on arrests of couriers.
    Among the officials at the news conference were Todor Tsvetkov, a
deputy director general of the Customs Service responsible for
narcotics control, and Georgi Pirinski, an American-born deputy
minister of foreign trade.
    They said that, despite Bulgarian interest in drug control, the
Americans had broken off talks on cooperation for unspecified
political reasons.
    Pirinski denied U.S. charges that Kintex, a Bulgarian
government-operated arms trade concern, engaged in drug traffic.
    In the American view, Bulgaria's seizures at the border are only
part of the solution. The principal effort, in the view of the
Americans, should be directed against drug dealers and against the
places where dealers, distributors and couriers meet to strike their
bargains. U.S. and West European specialists believe Sofia is such a
place.
    Levitsky, in a statement commenting on the Bulgarian charges, said
the United States, in contacts with Bulgaria beginning in 1972, had
found ''continuing difficulty in obtaining any meaningful information
on narcotics trafficking and seizures in Bulgaria.''
    ''When provided with information as to individuals suspected of
operating in Bulgaria,'' the envoy said, ''Bulgarian officials were
recalcitrant and repeatedly cited a lack of a formal legal exchange
document.''
    Levitsky said the United States broke off negotiations in 1981
because of Bulgarian inaction against foreign nationals operating in
Bulgaria.
    Tsvetkov, the customs official, said the information provided by the
United States consisted just of ''telephone numbers and nicknames,''
not evidence.
    ''We are an open country and cannot harass foreigners,'' he said.
    
nyt-02-06-85 2342est
n111  2049  06 Feb 85
AM-REAGAN-REACT addatend
NYT WASHINGTON: he said.
    In general, the lawmakers accorded the president a ''warm and truly
affectionate reception,'' as Rep. Thomas S. Foley of Washington, the
Democratic whip, put it.
    But in specific areas, sharp divisions between the parties were
clearly visible. Most Democrats sat in silence, for instance, when
the president advocated a constitutional amendment requiring a
balanced budget. Some even laughed.
    Rep. Mary Rose Oakar of Ohio, the secretary of the Democratic
caucus, noted that if such an amendment had been in effect in
Reagan's presidency, ''He would have violated the law every year.''
    Sen. David L. Boren, D-Okla., said he was disappointed at the
president's failure to back specific steps toward reducing the budget
deficit. ''I don't want rhetoric on a balanced budget, I want
something done,'' he said.
    O'Neill continued to stress the Democratic theme that the public
should focus on the sepcific programs Reagan wants to cut. ''Tonight
was a night of eloquent generalities,'' the speaker said. ''Tomorrow
he must begin to inform people as to the sometimes difficult
realities of the Reagan revolution.''
    Sen. Bob Dole of Kansas, the Republican leader, also expressed
disappointment that Reagan had not emphasized the deficit issue. ''I
probably would have put a little more emphasis on deficit
reduction,'' said Dole, who has been trying to get Senate Republians
to draft a budget of their own.
    One Democratic senator who praised the speech was Bill Bradley of
New Jersey, who is a prime sponsor of legislation to simplify the tax
code. He said he was ''very encouraged'' about prospects for passing
such bill in light of Reagan's strong pitch for it Wednesday night.
    ''What we have to watch for now,'' Bradley said, ''is whether the
president is willing to spend the political capital to take on thr
special interests.''
    The Democrats were similarly silent when the president advocated
support for the MX missile, which he calls the ''peace keeper,'' and
and for what the administration calls the Strategic Defense
Initiative, its idea of creating an anti-missile system in space.
    Foley said Reagan was the ''only one'' left in the country who
called the MX the ''peace keeper,'' and he voiced conern about the
stress on the Strategic Defense Initiative.
    ''The president's enthusiasm for that program, and its enormous
cost, is creating some unease in the country,'' he said.
    
nyt-02-06-85 2347est
n112  2058  06 Feb 85
AM-CARBIDE
(BizDay)
By STUART TAYLOR Jr.
c.1985 N.Y. Times News Service
    WASHINGTON - A federal judicial panel Wednesday consolidated 18
lawsuits against the Union Carbide Corp. for pretrial proceedings in
New York City. The pending suits, all filed in this country, grow out
of the gas leak disaster at Bhopal, India.
    Lawyers in the case said they expect more than 20 other pending
Bhopal cases - and possibly all similar cases yet to be filed - to go
to the same Manhattan court, the Federal District Court for the
Southern District of New York.
    In Wednesday's ruling, the Judicial Panel on Multidistrict
Litigation called New York the most convenient place to consolidate
such cases, partly because of the proximity of Union Carbide's
headquarters at Danbury, Conn.
    The panel, reaching its decision quickly with six of its seven
members participating, assigned the cases to District Judge John F.
Keenan of the Manhattan court.
    The ruling does not resolve the issue of whether all Union Carbide
cases filed in the United States should be dismissed on the ground
that India is a more logical place for them. The complaints are
actions brought by persons who say they were injured by the Bhopal
gas leak. Most or all of the plaintiffs are believed to be citizens
of India.
    The cases arise from the Dec. 3 accident in which leaking methyl
isocyanate from the Union Carbide pesticide plant in Bhopal killed
more than 2,000 people and injured 200,000 others.
    Union Carbide and several of the plaintiffs' lawyers had urged that
the cases be consolidated in New York. Other lawyers had argued for
other sites, including Chicago, Philadelphia and Charleston, W.Va.
Union Carbide has another pesticide plant near Charleston.
    But Stanley M. Chesley, a Cincinnati lawyer who represents some of
the Indian plaintiffs and had argued for consolidating the cases in
West Virginia, said he was pleased with the panel's decision
Wednesday.
    He said the speed with which the panel had ruled after hearing
arguments on the consolidation issue Jan. 24 showed that ''they want
to see these cases get moved.''
    Chesley denied a suggestion by another plaintiff's lawyer, John P.
Coale of Washington, that the reason some of the lawyers had wanted
the cases consolidated in West Virginia was the hope that they might
be tried before a jury concerned about the Union Carbide plant there,
where smaller leaks of methyl isocyanate have occurred.
    Both Coale and Chesley said they expect Union Carbide to file a
motion urging that all cases in the United States be dismissed, under
a doctrine called ''forum non conveniens,'' on the ground that India
would be the proper forum.
    Bud G. Holman, a New York lawyer representing Union Carbide, refused
to comment when asked whether the company would file such a motion.
    Because of differences in the two nations' legal systems and
traditions, it would be harder for plaintiffs to get into court in
India than in the United States. And the chances of winning large
damage awards are much better in the United States.
    So the American lawyers for the plaintiffs prefer to have the cases
tried in this country. Several dozen suits resulting from the Bhopal
disaster have also been filed in India by Indian lawyers. They would
not be affected by Wednesday's order.
    Several cases that have been filed against Union Carbide in state
courts in the United States on behalf of Indian plaintiffs would not
be directly affected by the order. But Holman said Union Carbide
would probably seek to have most of them moved to federal courts in
the same states and then transferred to Judge Keenan in New York.
    The panel ruled that consolidation was ''necessary in order to
eliminate duplicative discovery, prevent inconsistent pretrial
rulings and conserve the resources of the parties, their counsel and
the judiciary.''
    It said that although the litigation involved a ''foreign
disaster,'' Manhattan was a logical palce to consolidate the U.S.
cases because Union Carbide is a New York corporation, ''relevant
witnesses and documents may be located at its corporate headquarters
in nearby Danbury, Conn.,'' and six of the 18 suits are already
pending there.
    The panel was set up by Congress to consolidate civil cases
involving common factual issues. The seven panel members are federal
judges from all over the country.
    
nyt-02-06-85 2357est