He has ample motive to shift the blame , and his testimony has also been found less than forthright on numerous points .


Nevertheless , the New Democracy and Communist parties herald his assertions as proof of PASOK complicity .

Nevertheless , the <org>New Democracy</org> and <norp>Communist</norp> parties herald his assertions as proof of <org>PASOK</org> complicity .


Among unanswered questions are whether Mr. Papandreou received $ 23 million of stolen Bank of Crete funds and an additional $ 734,000 in bribes , as contended ; whether the prime minister ordered state agencies to deposit some $ 57 million in Mr. Koskotas 's bank and then skim off the interest ; and , what PASOK 's cut was from the $ 210 million Mr. Koskotas pinched .

Among unanswered questions are whether Mr. <person>Papandreou</person> received <money>$ 23 million</money> of stolen <org>Bank of Crete</org> funds and an additional $ <money>734,000</money> in bribes , as contended ; whether the prime minister ordered state agencies to deposit some <money>$ 57 million</money> in Mr. <person>Koskotas</person> 's bank and then skim off the interest ; and , what <org>PASOK</org> 's cut was from the <money>$ 210 million</money> Mr. <person>Koskotas</person> pinched .


Two former ministers were so heavily implicated in the Koskotas affair that PASOK members of Parliament voted to refer them to the special court .

<cardinal>Two</cardinal> former ministers were so heavily implicated in the <person>Koskotas</person> affair that <org>PASOK</org> members of <org>Parliament</org> voted to refer them to the special court .


But eluding parliamentary probe was the case of millions of drachmas Mr. Koskotas funneled into New Democracy coffers .

But eluding parliamentary probe was the case of <money>millions of drachmas</money> Mr. <person>Koskotas</person> funneled into <org>New Democracy</org> coffers .


In the end , the investigation produced only circumstantial evidence and `` indications '' that point to PASOK , not clinching proof .

In the end , the investigation produced only circumstantial evidence and `` indications '' that point to <org>PASOK</org> , not clinching proof .


On another issue , Greeks were told how their national intelligence agency , the EYP , regularly monitored the telephone conversations of prominent figures , including key opposition politicians , journalists and PASOK cabinet members .

On another issue , <norp>Greeks</norp> were told how their national intelligence agency , the <org>EYP</org> , regularly monitored the telephone conversations of prominent figures , including key opposition politicians , journalists and <org>PASOK</org> cabinet members .


Despite convincing arguments , it was never established that Mr. Papandreou personally ordered or directed the wiretaps .

Despite convincing arguments , it was never established that Mr. <person>Papandreou</person> personally ordered or directed the wiretaps .


The central weakness of the `` scandals '' debates was pointed up especially well when discussions focused on arms deals and kickbacks .


The coalition government tried to show that PASOK ministers had received hefty sums for OKing the purchase of F - 16 Fighting Falcon and Mirage 2000 combat aircraft , produced by the U.S.based General Dynamics Corp. and France 's Avions Marcel Dassault , respectively .

The coalition government tried to show that <org>PASOK</org> ministers had received hefty sums for OKing the purchase of <product>F - 16 Fighting Falcon</product> and <product>Mirage 2000</product> combat aircraft , produced by the <gpe>U.S.based</gpe> <org>General Dynamics Corp.</org> and <gpe>France</gpe> 's <org>Avions Marcel Dassault</org> , respectively .


Naturally , neither General Dynamics nor Dassault could be expected to hamper its prospective future dealings by making disclosures of sums paid -LRB- or not -RRB- to various Greek officials for services rendered .

Naturally , neither <org>General Dynamics</org> nor <org>Dassault</org> could be expected to hamper its prospective future dealings by making disclosures of sums paid -LRB- or not -RRB- to various <norp>Greek</norp> officials for services rendered .


So it seems that Mr. Mitsotakis and his communist chums may have unwittingly served Mr. Papandreou a moral victory on a platter : PASOK , whether guilty or not , can now traipse the countryside condemning the whole affair as a witch hunt at Mr. Papandreou 's expense .

So it seems that Mr. <person>Mitsotakis</person> and his communist chums may have unwittingly served Mr. <person>Papandreou</person> a moral victory on a platter : <org>PASOK</org> , whether guilty or not , can now traipse the countryside condemning the whole affair as a witch hunt at Mr. <person>Papandreou</person> 's expense .


But while verbal high jinks alone wo n't help PASOK regain power , Mr. Papandreou should never be underestimated .

But while verbal high jinks alone wo n't help <org>PASOK</org> regain power , Mr. <person>Papandreou</person> should never be underestimated .


First came his predictable fusillade : He charged the Coalition of the Left and Progress had sold out its leftist tenets by collaborating in a right - wing plot aimed at ousting PASOK and thwarting the course of socialism in Greece .

<ordinal>First</ordinal> came his predictable fusillade : He charged the <org>Coalition of the Left</org> and <org>Progress</org> had sold out its leftist tenets by collaborating in a right - wing plot aimed at ousting <org>PASOK</org> and thwarting the course of socialism in <gpe>Greece</gpe> .


Then , to buttress his credibility with the left , he enticed some smaller leftist parties to stand for election under the PASOK banner .

Then , to buttress his credibility with the left , he enticed some smaller leftist parties to stand for election under the <org>PASOK</org> banner .


Next , he continued to court the communists -- many of whom feel betrayed by the left - right coalition 's birth -- by bringing into PASOK a well - respected Communist Party candidate .

Next , he continued to court the communists -- many of whom feel betrayed by the left - right coalition 's birth -- by bringing into <org>PASOK</org> a well - respected <org>Communist Party</org> candidate .


For balance , and in hopes of gaining some disaffected centrist votes , he managed to attract a former New Democracy Party representative and known political enemy of Mr. Mitsotakis .

For balance , and in hopes of gaining some disaffected centrist votes , he managed to attract a former <org>New Democracy Party</org> representative and known political enemy of Mr. <person>Mitsotakis</person> .


Thus PASOK heads for the polls not only with diminished scandal - stench , but also with `` seals of approval '' from representatives of its harshest accusers .

Thus <org>PASOK</org> heads for the polls not only with diminished scandal - stench , but also with `` seals of approval '' from representatives of its harshest accusers .


Crucial as these elections are for Greece , pressing issues of state are getting lost in the shuffle .

Crucial as these elections are for <gpe>Greece</gpe> , pressing issues of state are getting lost in the shuffle .


The country 's future NATO participation remains unsure , for instance .

The country 's future <org>NATO</org> participation remains unsure , for instance .


Greece also must revamp major pieces of legislation in preparation for the 1992 targets of heightened Common Market cooperation .

<gpe>Greece</gpe> also must revamp major pieces of legislation in preparation for the <date>1992</date> targets of heightened Common Market cooperation .


Greece 's bilateral relations with the U.S. need attention soon as well .

<gpe>Greece</gpe> 's bilateral relations with the <gpe>U.S.</gpe> need attention soon as well .


For one , the current accord concerning U.S. military bases in Greece lapses in May 1990 .

For <cardinal>one</cardinal> , the current accord concerning <gpe>U.S.</gpe> military bases in <gpe>Greece</gpe> lapses in <date>May 1990</date> .


Negotiations for a new agreement were frozen before the June elections , but the clock is running .

Negotiations for a new agreement were frozen before the <date>June</date> elections , but the clock is running .


Another matter of concern is the extradition of Mohammed Rashid , a Palestinian terrorist who is wanted in the U.S. for the 1982 bombing of a Pan American Airways flight .

Another matter of concern is the extradition of <person>Mohammed Rashid</person> , a <norp>Palestinian</norp> terrorist who is wanted in the <gpe>U.S.</gpe> for the <date>1982</date> bombing of a <org>Pan American Airways</org> flight .


The Greek courts have decided in favor of extradition in the Rashid case , but the matter awaits final approval from Greece 's next justice minister .

The <norp>Greek</norp> courts have decided in favor of extradition in the <person>Rashid</person> case , but the matter awaits final approval from <gpe>Greece</gpe> 's next justice minister .


The Greeks seem barely aware of the importance of the case as a litmus test of whether Greece will be counted in or out for international efforts to combat terrorism .

The <norp>Greeks</norp> seem barely aware of the importance of the case as a litmus test of whether <gpe>Greece</gpe> will be counted in or out for international efforts to combat terrorism .


That PASOK could win the elections outright is improbable ; the Greek press , previously eager to palm off PASOK 's line , has turned on Mr. Papandreou with a wild - eyed vengeance .

That <org>PASOK</org> could win the elections outright is improbable ; the <norp>Greek</norp> press , previously eager to palm off <org>PASOK</org> 's line , has turned on Mr. <person>Papandreou</person> with a wild - eyed vengeance .


Yet the possibility of another lash - up government is all too real .


If Mr. Papandreou becomes the major opposition leader , he could hamstring a conservative - led coalition .

If Mr. <person>Papandreou</person> becomes the major opposition leader , he could hamstring a conservative - led coalition .


Also , he could force new elections early next year by frustrating the procedures for the election of the president of the republic in March .

Also , he could force new elections <date>early next year</date> by frustrating the procedures for the election of the president of the republic in <date>March</date> .


New Democracy has once again glaringly underestimated the opponent and linked its own prospects to negative reaction against PASOK , forgetting to tend to either program clarity or the rectification of internal squabbles .

<org>New Democracy</org> has once again glaringly underestimated the opponent and linked its own prospects to negative reaction against <org>PASOK</org> , forgetting to tend to either program clarity or the rectification of internal squabbles .


As for Mr. Papandreou ?

As for Mr. <person>Papandreou</person> ?


He 's not exactly sitting pretty at this stage .


But since he is undoubtedly one of the most proficient bull slingers who ever raked muck , it seems far wiser to view him as sidelined , but certainly not yet eliminated .


Mr. Carpenter , a regional correspondent for National Review , has lived in Athens since 1981 .

Mr. <person>Carpenter</person> , a regional correspondent for <org>National Review</org> , has lived in <gpe>Athens</gpe> since <date>1981</date> .


U.S. OFFICIALS MOVED to head off any repeat of Black Monday today following Friday 's plunge in stock prices .

<gpe>U.S.</gpe> OFFICIALS MOVED to head off any repeat of <event>Black Monday</event> <date>today</date> following <date>Friday</date> 's plunge in stock prices .


Fed Chairman Greenspan signaled that the central bank was prepared to inject massive amounts of money into the banking system to prevent a financial crisis .

<org>Fed</org> Chairman <person>Greenspan</person> signaled that the central bank was prepared to inject massive amounts of money into the banking system to prevent a financial crisis .


Other U.S. and foreign officials also mapped out plans , though they kept their moves quiet to avoid making the financial markets more jittery .

Other <gpe>U.S.</gpe> and foreign officials also mapped out plans , though they kept their moves quiet to avoid making the financial markets more jittery .


Friday 's sell - off was triggered by the collapse of UAL 's buy - out plan and a big rise in producer prices .

<date>Friday</date> 's sell - off was triggered by the collapse of <org>UAL</org> 's buy - out plan and a big rise in producer prices .


The Dow Jones industrials skidded 190.58 , to 2569.26 .

The <org>Dow Jones</org> industrials skidded <cardinal>190.58</cardinal> , to <cardinal>2569.26</cardinal> .


The junk bond market came to a standstill , while Treasury bonds soared and the dollar fell .

The junk bond market came to a standstill , while <org>Treasury</org> bonds soared and the dollar fell .


Japanese stocks dropped early Monday , but by late morning were turning around .

<norp>Japanese</norp> stocks dropped early <date>Monday</date> , but by <time>late morning</time> were turning around .


The dollar was trading sharply lower in Tokyo .

The dollar was trading sharply lower in <gpe>Tokyo</gpe> .


Prospects for a new UAL buy - out proposal appear bleak .

Prospects for a new <org>UAL</org> buy - out proposal appear bleak .


Many banks refused to back the $ 6.79 billion transaction , but bankers said it was not from any unwillingness to finance takeovers .

Many banks refused to back the <money>$ 6.79 billion</money> transaction , but bankers said it was not from any unwillingness to finance takeovers .


The decision was based solely on problems with the UAL management - pilot plan , they said .

The decision was based solely on problems with the <org>UAL</org> management - pilot plan , they said .


The surge in producer prices in September followed three months of declines , but analysts were divided on whether the 0.9 % jump signaled a severe worsening of inflation .

The surge in producer prices in <date>September</date> followed <date>three months</date> of declines , but analysts were divided on whether the <percent>0.9 %</percent> jump signaled a severe worsening of inflation .


Also , retail sales grew 0.5 % last month .

Also , retail sales grew <percent>0.5 %</percent> <date>last month</date> .


A capital - gains tax cut was removed from the Senate 's deficit reduction bill , but proponents still hope to enact the cut this year .

A capital - gains tax cut was removed from the <org>Senate</org> 's deficit reduction bill , but proponents still hope to enact the cut <date>this year</date> .


Bush wo n't press for a capital - gains provision in the final deficit bill when House - Senate conferees meet later this week .

<person>Bush</person> wo n't press for a capital - gains provision in the final deficit bill when <org>House</org> - Senate conferees meet <date>later this week</date> .


General Motors signaled that up to five North American assembly plants may close by the mid-1990s as it tries to cut excess capacity .

<org>General Motors</org> signaled that <cardinal>up to five</cardinal> <norp>North American</norp> assembly plants may close by <date>the mid-1990s</date> as it tries to cut excess capacity .


U.S. car and truck sales fell 12.6 % in early October , the first sales period of the 1990 - model year , dragged down by a sharp decline in GM sales .

<gpe>U.S.</gpe> car and truck sales fell <percent>12.6 %</percent> in <date>early October</date> , the <ordinal>first</ordinal> sales period of the <date>1990</date> - model <date>year</date> , dragged down by a sharp decline in <org>GM</org> sales .


Warner and Sony are entangled in a legal battle over movie producers Peter Gruber and Jon Peters .

<org>Warner</org> and <org>Sony</org> are entangled in a legal battle over movie producers <person>Peter Gruber</person> and <person>Jon Peters</person> .


The fight could set back Sony 's plans to enter the U.S. movie business .

The fight could set back <org>Sony</org> 's plans to enter the <gpe>U.S.</gpe> movie business .


Hooker 's U.S. unit received a $ 409 million bid for most of its real - estate and shopping - center assets from an investor group .

<org>Hooker</org> 's <gpe>U.S.</gpe> unit received a <money>$ 409 million</money> bid for most of its real - estate and shopping - center assets from an investor group .


The offer does n't include Bonwit Teller or B. Altman .

The offer does n't include <org>Bonwit Teller</org> or <org>B. Altman</org> .


The Boeing strike is starting to affect airlines .

The <org>Boeing</org> strike is starting to affect airlines .


America West said Friday it will postpone its new service out of Houston because of delays in receiving aircraft from Boeing .

<org>America West</org> said <date>Friday</date> it will postpone its new service out of <gpe>Houston</gpe> because of delays in receiving aircraft from <org>Boeing</org> .


Saatchi & Saatchi would launch a management buy - out if a hostile suitor emerged , an official said .

<org>Saatchi & Saatchi</org> would launch a management buy - out if a hostile suitor emerged , an official said .


British Aerospace and France 's Thomson - CSF are nearing a pact to merge guided - missile divisions .

<org>British Aerospace</org> and <gpe>France</gpe> 's <org>Thomson - CSF</org> are nearing a pact to merge guided - missile divisions .


New U.S. steel - import quotas will give a bigger share to developing nations that have relatively unsubsidized steel industries .

New <gpe>U.S.</gpe> steel - import quotas will give a bigger share to developing nations that have relatively unsubsidized steel industries .


Japan 's steel quota will be cut significantly .

<gpe>Japan</gpe> 's steel quota will be cut significantly .


Four ailing S&Ls were sold off by government regulators , but low bids prevented the sale of a fifth .

<cardinal>Four</cardinal> ailing S&Ls were sold off by government regulators , but low bids prevented the sale of a <ordinal>fifth</ordinal> .


Markets --


Stocks : Volume 251,170,000 shares .

Stocks : Volume <cardinal>251,170,000</cardinal> shares .


Dow Jones industrials 2569.26 , off 190.58 ; transportation 1406.29 , off 78.06 ; utilities 211.96 , off 7.29 .

<org>Dow Jones</org> industrials <cardinal>2569.26</cardinal> , off <cardinal>190.58</cardinal> ; transportation <cardinal>1406.29</cardinal> , off <cardinal>78.06</cardinal> ; utilities <cardinal>211.96</cardinal> , off <cardinal>7.29</cardinal> .


Bonds : Shearson Lehman Hutton Treasury index 3421.29 , up

Bonds : <org>Shearson Lehman Hutton</org> <org>Treasury</org> index <cardinal>3421.29</cardinal> , up


Commodities : Dow Jones futures index 129.87 , up 0.01 ; spot index 129.25 , up 0.28 .

Commodities : <org>Dow Jones</org> futures index <cardinal>129.87</cardinal> , up <cardinal>0.01</cardinal> ; spot index <cardinal>129.25</cardinal> , up <cardinal>0.28</cardinal> .


Dollar : 142.10 yen , off 2.07 ; 1.8740 marks , off 0.0343 .

Dollar : <money>142.10 yen</money> , off <cardinal>2.07</cardinal> ; <money>1.8740 marks</money> , off <cardinal>0.0343</cardinal> .


Apple Computer Inc. said it will offer cash rebates on several of its machines from Oct. 14 to Dec. 31. , as part of a holiday - season sales promotion .

<org>Apple Computer Inc.</org> said it will offer cash rebates on several of its machines <date>from Oct. 14 to Dec. 31.</date> , as part of a holiday - season sales promotion .


Apple will offer a $ 150 rebate on its Apple IIGS with any Apple Monitor and disk drive ; $ 200 on the basic Macintosh Plus central processing unit ; $ 250 on the Macintosh SE central processing unit ; $ 250 on the Macintosh SE / 30 cpu , and $ 300 on a Macintosh IIcx with any Apple video card and Apple monitor .

<org>Apple</org> will offer <money>a $ 150 rebate</money> on its <org>Apple</org> <product>IIGS</product> with any <org>Apple</org> <product>Monitor</product> and disk drive ; $ <money>200</money> on the basic <org>Macintosh</org> <product>Plus</product> central processing unit ; $ <money>250</money> on the <org>Macintosh</org> <product>SE</product> central processing unit ; $ <money>250</money> on the <org>Macintosh</org> <product>SE / 30 cpu</product> , and $ <money>300</money> on a <org>Macintosh</org> <product>IIcx</product> with any <org>Apple</org> video card and <org>Apple</org> monitor .


The rebates , as a percentage of the retail cost of the cpu of each system , amount to 6 % to 13 % .

The rebates , as a percentage of the retail cost of the cpu of each system , amount to <percent>6 % to 13 %</percent> .


The company is also offering a free trial of its computers to consumers who qualify for its credit cards or leases .


Matsushita Electric Industrial Co. of Japan and Siemens AG of West Germany announced they have completed a 100 million - mark -LRB- $ 52.2 million -RRB- joint venture to produce electronics parts .

<org>Matsushita Electric Industrial Co. of Japan</org> and <org>Siemens AG</org> of <gpe>West Germany</gpe> announced they have completed a <money>100 million - mark</money> -LRB- <money>$ 52.2 million</money> -RRB- joint venture to produce electronics parts .


In the venture 's first fiscal year , Siemens will hold 74.9 % of the venture and a Matsushita subsidiary , Matsushita Electronic Components Co. , 25.1 % .

In the venture 's <ordinal>first</ordinal> <date>fiscal year</date> , <org>Siemens</org> will hold <percent>74.9 %</percent> of the venture and a <org>Matsushita</org> subsidiary , <org>Matsushita Electronic Components Co.</org> , <percent>25.1 %</percent> .


A basic agreement between the two companies was announced in June .

A basic agreement between the <cardinal>two</cardinal> companies was announced in <date>June</date> .


The new company is to be called Siemens Matsushita Components G.m.b . H .

The new company is to be called <org>Siemens Matsushita Components G.m.b . H .</org>


It will have its headquarters in Munich .

It will have its headquarters in <gpe>Munich</gpe> .


Matsushita 's share in the venture will rise to 35 % Oct. 1 , 1990 , and to 50 % the following Oct. 1 .

<org>Matsushita</org> 's share in the venture will rise to <percent>35 %</percent> <date>Oct. 1 , 1990</date> , and to <percent>50 %</percent> <date>the following Oct. 1</date> .


Siemens will retain majority voting rights .

<org>Siemens</org> will retain majority voting rights .


The parent companies forecast sales for the venture of around 750 million marks for its first fiscal year , Matsushita said .

The parent companies forecast sales for the venture of <money>around 750 million marks</money> for its <ordinal>first</ordinal> <date>fiscal year</date> , <org>Matsushita</org> said .


Sales are expected to rise to one billion marks after four years .

Sales are expected to rise to <money>one billion marks</money> after <date>four years</date> .


The company will have production facilities in West Germany , Austria , France and Spain .

The company will have production facilities in <gpe>West Germany</gpe> , <gpe>Austria</gpe> , <gpe>France</gpe> and <gpe>Spain</gpe> .


Roger Rosenblatt , editor of U.S. News & World Report , resigned Friday from the weekly news magazine .

<person>Roger Rosenblatt</person> , editor of <org>U.S. News & World Report</org> , resigned <date>Friday</date> from the weekly news magazine .


Mr. Rosenblatt said he resigned because of difficulties with commuting between his home in New York and the magazine 's editorial offices in Washington .

Mr. <person>Rosenblatt</person> said he resigned because of difficulties with commuting between his home in <gpe>New York</gpe> and the magazine 's editorial offices in <gpe>Washington</gpe> .


`` Frankly , I missed my family , '' said Mr. Rosenblatt .

`` Frankly , I missed my family , '' said Mr. <person>Rosenblatt</person> .


In Mr. Rosenblatt 's tenure , the magazine 's advertising pages and circulation have grown significantly .

In Mr. <person>Rosenblatt</person> 's tenure , the magazine 's advertising pages and circulation have grown significantly .


But at 2.3 million weekly paid circulation , U.S. News still ranks third behind Time Warner Inc. 's Time magazine , with 4.4 million circulation , and Washington Post Co. 's Newsweek , with 3.3 million circulation .

But at <cardinal>2.3 million</cardinal> <date>weekly</date> paid circulation , <org>U.S. News</org> still ranks <ordinal>third</ordinal> behind <org>Time Warner Inc. 's</org> <org>Time</org> magazine , with <cardinal>4.4 million</cardinal> circulation , and <org>Washington Post Co. 's</org> <org>Newsweek</org> , with <cardinal>3.3 million</cardinal> circulation .


Mortimer B. Zuckerman , chairman and editor in chief , said Mr. Rosenblatt would be succeeded starting today by Michael Ruby , the magazine 's executive editor , and Merrill McLoughlin , a senior writer .

<person>Mortimer B. Zuckerman</person> , chairman and editor in chief , said Mr. <person>Rosenblatt</person> would be succeeded starting <date>today</date> by <person>Michael Ruby</person> , the magazine 's executive editor , and <person>Merrill McLoughlin</person> , a senior writer .


Mr. Ruby and Ms. McLoughlin are married to each other .

Mr. <person>Ruby</person> and Ms. <person>McLoughlin</person> are married to each other .


Mr. Zuckerman said his magazine would maintain its editorial format , which is a mix of analysis and trend stories with service - oriented , how - to articles .

Mr. <person>Zuckerman</person> said his magazine would maintain its editorial format , which is a mix of analysis and trend stories with service - oriented , how - to articles .


Mr. Rosenblatt , a senior writer at Time magazine before joining U.S. News & World Report , said he had numerous job offers from other magazines while he was editor .

Mr. <person>Rosenblatt</person> , a senior writer at <org>Time</org> magazine before joining <org>U.S. News & World Report</org> , said he had numerous job offers from other magazines while he was editor .


The offers were to work as a writer , not an editor .


He said he will now consider those offers .


Avions Marcel Dassault - Breguet Aviation S.A. said group profit before taxes and contributions to employee profit - sharing soared 97 % to 839 million francs -LRB- $ 129.6 million -RRB- in the first half of 1989 from 425 million francs a year earlier .

<org>Avions Marcel Dassault - Breguet Aviation S.A.</org> said group profit before taxes and contributions to employee profit - sharing soared <percent>97 %</percent> to <money>839 million francs</money> -LRB- <money>$ 129.6 million</money> -RRB- in <date>the first half of 1989</date> from <money>425 million francs</money> <date>a year earlier</date> .


The French aircraft group pointed out , however , that financial results from its sector of industry are frequently erratic because of irregular cash flow from large contracts .

The <norp>French</norp> aircraft group pointed out , however , that financial results from its sector of industry are frequently erratic because of irregular cash flow from large contracts .


It noted , for example , that group revenue for the first half was 8.734 billion francs , down about 12 % from 9.934 billion francs a year earlier .

It noted , for example , that group revenue for <date>the first half</date> was <money>8.734 billion francs</money> , down <percent>about 12 %</percent> from <money>9.934 billion francs</money> <date>a year earlier</date> .


Still , it said it expects sales for all of 1989 to be on the order of 20 billion francs , reflecting anticipated billings for two large contracts in the second half of the year .

Still , it said it expects sales for all of <date>1989</date> to be on the order of <money>20 billion francs</money> , reflecting anticipated billings for <cardinal>two</cardinal> large contracts in <date>the second half of the year</date> .


For all of 1988 , Dassault had group profit of 428 million francs on revenue of 18.819 billion francs .

For all of <date>1988</date> , <org>Dassault</org> had group profit of <money>428 million francs</money> on revenue of <money>18.819 billion francs</money> .


The group has n't yet released earnings figures for the first half of 1989 , nor has it made a detailed forecast of its full - year earnings .

The group has n't yet released earnings figures for <date>the first half of 1989</date> , nor has it made a detailed forecast of its <date>full - year</date> earnings .


Freeport - McMoRan Inc. said a temporary cessation of operations at its Sunshine Bridge uranium - recovery facility in Donaldsonville , La. , will result in slight earnings improvement to both the company and its Freeport - McMoRan Resource Partners Limited Partnership unit .

<org>Freeport - McMoRan Inc.</org> said a temporary cessation of operations at its <fac>Sunshine Bridge</fac> uranium - recovery facility in <gpe>Donaldsonville</gpe> , <gpe>La.</gpe> , will result in slight earnings improvement to both the company and its <org>Freeport - McMoRan Resource Partners Limited Partnership</org> unit .


The company did n't elaborate .


The diversified energy and minerals concern said that a depressed uranium market is responsible for the temporary mothballing of the plant , but that the plant can be reactivated quickly when the market improves .


More than 400,000 pounds of uranium a year have been produced at the facility during the past seven years .

<quantity>More than 400,000 pounds</quantity> of uranium a year have been produced at the facility during <date>the past seven years</date> .


A second uranium - recovery plant at Uncle Sam , La. , that produces more than 700,000 pounds of uranium annually , will continue to operate .

A <ordinal>second</ordinal> uranium - recovery plant at <gpe>Uncle Sam</gpe> , <gpe>La.</gpe> , that produces <quantity>more than 700,000 pounds</quantity> of uranium <date>annually</date> , will continue to operate .


Freeport - McMoRan said the shutdown wo n't affect sales volumes under long - term sales contracts of its Freeport Uranium Recovery Co. unit , but will reduce the amount of product sold on the spot market .

<org>Freeport - McMoRan</org> said the shutdown wo n't affect sales volumes under long - term sales contracts of its <org>Freeport Uranium Recovery Co.</org> unit , but will reduce the amount of product sold on the spot market .


Freeport - McMoRan Resource Partners , as owner of the uranium - recovery technology , receives royalty payments .

<org>Freeport - McMoRan Resource Partners</org> , as owner of the uranium - recovery technology , receives royalty payments .


Business Week subscribers may hear this week 's issue talking back to them .

<org>Business Week</org> subscribers may hear this <date>week</date> 's issue talking back to them .


A four - page ad from Texas Instruments Inc. , running in approximately 140,000 issues of the Oct. 20 `` Corporate Elite '' issue of the McGraw - Hill Inc. publication , contains a speech synthesizer laminated between two of the pages .

A <cardinal>four</cardinal> - page ad from <org>Texas Instruments Inc.</org> , running in <cardinal>approximately 140,000</cardinal> issues of the <date>Oct. 20</date> `` <work_of_art>Corporate Elite</work_of_art> '' issue of the <org>McGraw - Hill Inc.</org> publication , contains a speech synthesizer laminated between <cardinal>two</cardinal> of the pages .


Readers who pull off a piece of tape and press a switch will hear a tiny -- but distinctly human - sounding -- voice announce , `` I am the talking chip , '' as it launches into a 15 - second discourse on its own attributes .

Readers who pull off a piece of tape and press a switch will hear a tiny -- but distinctly human - sounding -- voice announce , `` I am the talking chip , '' as it launches into a <time>15 - second</time> discourse on its own attributes .


The talking chip is n't cheap -- the per - ad cost to Texas Instruments is about $ 4 , and that 's without adding in Business Week 's charge -- but Texas Instruments believes it is a first .

The talking chip is n't cheap -- the per - ad cost to <org>Texas Instruments</org> is <money>about $ 4</money> , and that 's without adding in <org>Business Week 's</org> charge -- but <org>Texas Instruments</org> believes it is a <ordinal>first</ordinal> .


Previous efforts have included musical ads , featuring simple tone - generating chips that play a tune , but the voice synthesizer in this effort is much more sophisticated , with none of the robotic flatness that one hears , for example , when calling telephone directory services .


And for those who miss the message the first time around , not to worry : Three tiny batteries provide enough juice for as many as 650 replays .

And for those who miss the message the <ordinal>first</ordinal> time around , not to worry : <cardinal>Three</cardinal> tiny batteries provide enough juice for <cardinal>as many as 650</cardinal> replays .


Lomas Financial Corp. , Dallas , said it will ask a U.S. bankruptcy court to allow it to hire Lazard Freres & Co. to help it sell its leasing unit .

<org>Lomas Financial Corp.</org> , <gpe>Dallas</gpe> , said it will ask a <gpe>U.S.</gpe> bankruptcy court to allow it to hire <org>Lazard Freres & Co.</org> to help it sell its leasing unit .


Lomas , assisted by Merrill Lynch Capital Markets , has been trying to sell its Equitable Lomas Leasing Co. for several months , apparently without success .

<org>Lomas</org> , assisted by <org>Merrill Lynch Capital Markets</org> , has been trying to sell its <org>Equitable Lomas Leasing Co.</org> for <date>several months</date> , apparently without success .


The real estate and mortgage banking concern had hoped to use proceeds from the sale to reduce its debt .


Without cash from asset sales and unable to reach a new bank - credit agreement , Lomas defaulted on $ 145 million in notes that became due Sept. 1 .

Without cash from asset sales and unable to reach a new bank - credit agreement , <org>Lomas</org> defaulted on <money>$ 145 million</money> in notes that became due <date>Sept. 1</date> .


It filed for protection from creditors under Chapter 11 of the federal Bankruptcy Code Sept. 24 to give it additional time to work on a plan to restructure its $ 1.45 billion in senior debt .

It filed for protection from creditors under <law>Chapter 11 of the federal Bankruptcy Code</law> <date>Sept. 24</date> to give it additional time to work on a plan to restructure its <money>$ 1.45 billion</money> in senior debt .


Lomas said Merrill Lynch , which owns bonds and equity in Lomas , could n't continue as Lomas 's investment banker because it is also a creditor .

<org>Lomas</org> said <org>Merrill Lynch</org> , which owns bonds and equity in <org>Lomas</org> , could n't continue as <org>Lomas</org> 's investment banker because it is also a creditor .


It said it chose Lazard in part because of Lazard 's offices in Europe and Japan , where investors might be interested in a U.S. leasing company .

It said it chose <org>Lazard</org> in part because of <org>Lazard</org> 's offices in <loc>Europe</loc> and <gpe>Japan</gpe> , where investors might be interested in a <gpe>U.S.</gpe> leasing company .


Of all the one - time expenses incurred by a corporation or professional firm , few are larger or longer term than the purchase of real estate or the signing of a commercial lease .

Of all the <cardinal>one</cardinal> - time expenses incurred by a corporation or professional firm , few are larger or longer term than the purchase of real estate or the signing of a commercial lease .


To take full advantage of the financial opportunities in this commitment , however , the corporation or professional firm must do more than negotiate the best purchase price or lease terms .


It must also evaluate the real - estate market in the chosen location from a new perspective .


Specifically , it must understand how real - estate markets overreact to shifts in regional economies and then take advantage of these opportunities .


When a regional economy catches cold , the local real - estate market gets pneumonia .


In other words , real - estate market indicators , such as building permits and leasing activity , plummet much further than a local economy in recession .


This was seen in the late 1960s in Los Angeles and the mid-1970s in New York .

This was seen in the late <date>1960s</date> in <gpe>Los Angeles</gpe> and <date>the mid-1970s</date> in <gpe>New York</gpe> .


But the reverse is also true : When a region 's economy rebounds from a slowdown , these real - estate indicators will rebound far faster than the improving economy .


Why do local real - estate markets overreact to regional economic cycles ?


Because real - estate purchases and leases are such major long - term commitments that most companies and individuals make these decisions only when confident of future economic stability and growth .


Metropolitan Detroit was written off economically during the early 1980s , as the domestic auto industry suffered a serious sales depression and adjustment .

<org>Metropolitan Detroit</org> was written off economically during <date>the early 1980s</date> , as the domestic auto industry suffered a serious sales depression and adjustment .


Area employment dropped by 13 % from its 1979 peak and retail sales were down 14 % .

Area employment dropped by <percent>13 %</percent> from its <date>1979</date> peak and retail sales were down <percent>14 %</percent> .


However , the real - estate market was hurt even more .


For example , residential building permits in the trough year of 1982 were off 76 % from the 1979 peak level .

For example , residential building permits in the trough year of <date>1982</date> were off <percent>76 %</percent> from the <date>1979</date> peak level .


Once metropolitan Detroit 's economy rallied in the mid-1980s , real estate rebounded .

Once metropolitan <gpe>Detroit</gpe> 's economy rallied in <date>the mid-1980s</date> , real estate rebounded .


Building permits , for example , soared a staggering 400 % between 1982 and the peak year of 1986 .

Building permits , for example , soared a staggering <percent>400 %</percent> <date>between 1982 and the peak year of 1986</date> .


Where , savvy corporations and professional firms are now asking , are today 's opportunities ?

Where , savvy corporations and professional firms are now asking , are <date>today</date> 's opportunities ?


Look no further than metropolitan Houston and Denver , two of the most depressed , overbuilt and potentially undervalued real - estate markets in the nation .

Look no further than metropolitan <gpe>Houston</gpe> and <gpe>Denver</gpe> , <cardinal>two</cardinal> of the most depressed , overbuilt and potentially undervalued real - estate markets in the nation .


Of course , some observers have touted Houston and Denver for the past five years as a counter-cyclical play .

Of course , some observers have touted <gpe>Houston</gpe> and <gpe>Denver</gpe> for <date>the past five years</date> as a counter-cyclical play .


But now appears to be the time to act .


Metropolitan Houston 's economy did drop and then flatten in the years after its 1982 peak .

Metropolitan <gpe>Houston</gpe> 's economy did drop and then flatten in <date>the years</date> after its <date>1982</date> peak .


In the mid-1980s , employment was down as much as 5 % from the 1982 peak and retail sales were off 13 % .

In <date>the mid-1980s</date> , employment was down <percent>as much as 5 %</percent> from the <date>1982</date> peak and retail sales were off <percent>13 %</percent> .


The real - estate market suffered even more severe setbacks .


Office construction dropped 97 % .

Office construction dropped <percent>97 %</percent> .


The vacancy rate soared more than 20 % in nearly every product category , and more than 30 % of office space was vacant .

The vacancy rate soared <percent>more than 20 %</percent> in nearly every product category , and more than <percent>30 %</percent> of office space was vacant .


To some observers , the empty office buildings of Houston 's `` see - through skyline '' were indicative of a very troubled economy .

To some observers , the empty office buildings of <gpe>Houston</gpe> 's `` see - through skyline '' were indicative of a very troubled economy .


As usual , the real - estate market had overreacted .


Actually , the region 's economy retained a firm foundation .


Metropolitan Houston 's population has held steady over the past six years .

Metropolitan <gpe>Houston</gpe> 's population has held steady over <date>the past six years</date> .


And personal income , after slumping in the mid-1980s , has returned to its 1982 level in real dollar terms .

And personal income , after slumping in <date>the mid-1980s</date> , has returned to its <date>1982</date> level in real dollar terms .


Today , metropolitan Houston 's real - estate market is poised for a significant turnaround .

Today , metropolitan <gpe>Houston</gpe> 's real - estate market is poised for a significant turnaround .


More than 42,000 jobs were added in metro Houston last year , primarily in biotechnology , petrochemical processing , and the computer industry .

<cardinal>More than 42,000</cardinal> jobs were added in metro <gpe>Houston</gpe> <date>last year</date> , primarily in biotechnology , petrochemical processing , and the computer industry .


This growth puts Houston in the top five metro areas in the nation last year .

This growth puts <gpe>Houston</gpe> in the top <cardinal>five</cardinal> metro areas in the nation <date>last year</date> .


And forecasts project a 2.5 % to 3 % growth rate in jobs over the next few years -- nearly twice the national average .

And forecasts project a <percent>2.5 % to 3 %</percent> growth rate in jobs over <date>the next few years</date> -- nearly twice the national average .


Denver is another metropolitan area where the commercial real - estate market has overreacted to the region 's economic trends , although Denver has not experienced as severe an economic downturn as Houston .

<gpe>Denver</gpe> is another metropolitan area where the commercial real - estate market has overreacted to the region 's economic trends , although <gpe>Denver</gpe> has not experienced as severe an economic downturn as <gpe>Houston</gpe> .


By some measures , metropolitan Denver 's economy has actually improved in the past four years .

By some measures , metropolitan <gpe>Denver</gpe> 's economy has actually improved in <date>the past four years</date> .


Its population has continued to increase since 1983 , the peak year of the economic cycle .

Its population has continued to increase since <date>1983</date> , <date>the peak year</date> of the economic cycle .


Employment is now 4 % higher than in 1983 .

Employment is now <percent>4 %</percent> higher than in <date>1983</date> .


Buying income in real dollars actually increased 15 % between 1983 and 1987 -LRB- the most recent year available -RRB- .

Buying income in real dollars actually increased <percent>15 %</percent> <date>between 1983 and 1987</date> -LRB- <date>the most recent year</date> available -RRB- .


The rates of increase , however , are less than the rapid growth of the boom years , and this has resulted in a loss of confidence in the economy .

The rates of increase , however , are less than the rapid growth of <date>the boom years</date> , and this has resulted in a loss of confidence in the economy .


In a self - fulfilling prophecy , therefore , the region 's real - estate market all but collapsed in recent years .

In a self - fulfilling prophecy , therefore , the region 's real - estate market all but collapsed in <date>recent years</date> .


Housing building permits are down more than 75 % from their 1983 peaks .

Housing building permits are down <percent>more than 75 %</percent> from their <date>1983</date> peaks .


Although no one can predict when metropolitan Denver 's real - estate market will rebound , major public works projects costing several billion dollars are under way or planned -- such as a new convention center , a major beltway encircling the metropolitan area , and a new regional airport .

Although no one can predict when metropolitan <gpe>Denver</gpe> 's real - estate market will rebound , major public works projects costing <money>several billion dollars</money> are under way or planned -- such as a new convention center , a major beltway encircling the metropolitan area , and a new regional airport .


When Denver 's regional economy begins to grow faster -- such a recovery could occur as early as next year -- business and consumer confidence will return , and the resulting explosion of real - estate activity will dwarf the general economic rebound .

When <gpe>Denver</gpe> 's regional economy begins to grow faster -- such a recovery could occur <date>as early as next year</date> -- business and consumer confidence will return , and the resulting explosion of real - estate activity will dwarf the general economic rebound .


What real - estate strategy should one follow in a metropolitan area whose economic health is not as easy to determine as Houston 's or Denver 's ?

What real - estate strategy should one follow in a metropolitan area whose economic health is not as easy to determine as <gpe>Houston</gpe> 's or <gpe>Denver</gpe> 's ?


Generally , overcapacity in commercial real estate is dropping from its mid-1980s peak , even in such economically healthy metropolitan areas as Washington , New York and Los Angeles .

Generally , overcapacity in commercial real estate is dropping from its <date>mid-1980s</date> peak , even in such economically healthy metropolitan areas as <gpe>Washington</gpe> , <gpe>New York</gpe> and <gpe>Los Angeles</gpe> .


Vacancy rates in the 15 % to 19 % range today may easily rise to the low to mid-20 % range in a couple of years .

Vacancy rates in the <percent>15 % to 19 %</percent> range <date>today</date> may easily rise to the <percent>low to mid-20 %</percent> range in <date>a couple of years</date> .


Under these conditions , even a flattening out of economic growth -- `` catching cold '' -- in the healthy metropolitan areas will create significant opportunities for corporations and professional service firms looking for bargains as the realestate industry catches pneumonia .


Those looking for real - estate bargains in distressed metropolitan areas should lock in leases or buy now ; those looking in healthy metropolitan areas should take a short - term -LRB- three - year -RRB- lease and wait for the bargains ahead .

Those looking for real - estate bargains in distressed metropolitan areas should lock in leases or buy now ; those looking in healthy metropolitan areas should take a short - term -LRB- <date>three - year</date> -RRB- lease and wait for the bargains ahead .


Mr. Leinberger is managing partner of a real - estate advisory firm based in Beverly Hills , Calif .

Mr. <person>Leinberger</person> is managing partner of a real - estate advisory firm based in <gpe>Beverly Hills</gpe> , <gpe>Calif</gpe> .


Kysor Industrial Corp. said it expects its third - quarter net earnings to be between two cents and four cents a share , compared with 61 cents a share a year ago .

<org>Kysor Industrial Corp.</org> said it expects its <date>third - quarter</date> net earnings to be <money>between two cents and four cents</money> a share , compared with <money>61 cents</money> a share <date>a year ago</date> .


Analysts had been projecting that the company 's earnings would be between 25 cents and 30 cents a share .

Analysts had been projecting that the company 's earnings would be <money>between 25 cents and 30 cents</money> a share .


The year - earlier third - quarter earnings amounted to $ 4.1 million .

The <date>year - earlier third - quarter</date> earnings amounted to <money>$ 4.1 million</money> .


The company said a drop in activity in the powerboat industry reduced sales volume at its two marine - related operations .

The company said a drop in activity in the powerboat industry reduced sales volume at its <cardinal>two</cardinal> marine - related operations .


Also , the company said its commercial products operation failed to meet forecasts .


Kysor , a maker of heavy - duty truck and commercial refrigeration equipment , said it expects its fourth - quarter earnings to be more closely in line with usual levels , which are between 30 cents and 50 cents a share .

<org>Kysor</org> , a maker of heavy - duty truck and commercial refrigeration equipment , said it expects its <date>fourth - quarter</date> earnings to be more closely in line with usual levels , which are <money>between 30 cents and 50 cents</money> a share .


Common Cause asked both the Senate Ethics Committee and the Justice Department to investigate $ 1 million in political gifts by Arizona businessman Charles Keating to five U.S. senators who interceded with thrift - industry regulators for him .

<org>Common Cause</org> asked both <org>the Senate Ethics Committee</org> and <org>the Justice Department</org> to investigate <money>$ 1 million</money> in political gifts by <gpe>Arizona</gpe> businessman <person>Charles Keating</person> to <cardinal>five</cardinal> <gpe>U.S.</gpe> senators who interceded with thrift - industry regulators for him .


Mr. Keating is currently the subject of a $ 1.1 billion federal anti-racketeering lawsuit accusing him of bleeding off assets of a California thrift he controlled , Lincoln Savings & Loan Association , and driving it into insolvency .

Mr. <person>Keating</person> is currently the subject of a <money>$ 1.1 billion</money> federal anti-racketeering lawsuit accusing him of bleeding off assets of a <gpe>California</gpe> thrift he controlled , <org>Lincoln Savings & Loan Association</org> , and driving it into insolvency .


Fred Wertheimer -- president of Common Cause , the self - styled citizens lobby -- said Mr. Keating already has conceded attempting to buy influence with the lawmakers -- Democratic Sens. Dennis DeConcini of Arizona , Alan Cranston of California , John Glenn of Ohio and Donald Riegle of Michigan ; and GOP Sen. John McCain of Arizona .

<person>Fred Wertheimer</person> -- president of <org>Common Cause</org> , the self - styled citizens lobby -- said Mr. <person>Keating</person> already has conceded attempting to buy influence with the lawmakers -- <norp>Democratic</norp> Sens. <person>Dennis DeConcini</person> of <gpe>Arizona</gpe> , <person>Alan Cranston</person> of <gpe>California</gpe> , <person>John Glenn</person> of <gpe>Ohio</gpe> and <person>Donald Riegle</person> of <gpe>Michigan</gpe> ; and <org>GOP</org> Sen. <person>John McCain</person> of <gpe>Arizona</gpe> .


Mr. Wertheimer based this on a statement by Mr. Keating that was quoted in a Wall Street Journal story in April : `` One question ... had to do with whether my financial support in any way influenced several political figures to take up my cause .

Mr. <person>Wertheimer</person> based this on a statement by Mr. <person>Keating</person> that was quoted in a <org>Wall Street Journal</org> story in <date>April</date> : `` <cardinal>One</cardinal> question ... had to do with whether my financial support in any way influenced several political figures to take up my cause .


I want to say in the most forceful way I can : I certainly hope so . ''


In a highly unusual meeting in Sen. DeConcini 's office in April 1987 , the five senators asked federal regulators to ease up on Lincoln .

In a highly unusual meeting in Sen. <person>DeConcini</person> 's office in <date>April 1987</date> , the <cardinal>five</cardinal> senators asked federal regulators to ease up on <org>Lincoln</org> .


According to notes taken by one of the participants at the meeting , the regulators said Lincoln was gambling dangerously with depositors ' federally insured money and was `` a ticking time bomb . ''

According to notes taken by one of the participants at the meeting , the regulators said <org>Lincoln</org> was gambling dangerously with depositors ' federally insured money and was `` a ticking time bomb . ''


Mr. Keating had complained that the regulators were being too zealous .

Mr. <person>Keating</person> had complained that the regulators were being too zealous .


The notes show that Sen. DeConcini called the Federal Home Loan Bank Board 's regulations `` grossly unfair , '' and that Sen. Glenn insisted that Mr. Keating 's thrift was `` viable and profitable . ''

The notes show that Sen. <person>DeConcini</person> called <org>the Federal Home Loan Bank Board 's</org> regulations `` grossly unfair , '' and that Sen. <person>Glenn</person> insisted that Mr. <person>Keating</person> 's thrift was `` viable and profitable . ''


For the next two years , the Bank Board , which at the time was the agency responsible for regulating thrifts , failed to act -- even after federal auditors warned in May 1987 that Mr. Keating had caused Lincoln to become insolvent .

For <date>the next two years</date> , <org>the Bank Board</org> , which at the time was the agency responsible for regulating thrifts , failed to act -- even after federal auditors warned in <date>May 1987</date> that Mr. <person>Keating</person> had caused <org>Lincoln</org> to become insolvent .


Lincoln 's parent company , American Continental Corp. , entered bankruptcy - law proceedings this April 13 , and regulators seized the thrift the next day .

<org>Lincoln</org> 's parent company , <org>American Continental Corp.</org> , entered bankruptcy - law proceedings <date>this April 13</date> , and regulators seized the thrift <date>the next day</date> .


The newly formed Resolution Trust Corp. , successor to the Bank Board , filed suit against Mr. Keating and several others on Sept. 15 .

The newly formed <org>Resolution Trust Corp.</org> , successor to <org>the Bank Board</org> , filed suit against Mr. <person>Keating</person> and several others on <date>Sept. 15</date> .


Mr. Keating has filed his own suit , alleging that his property was taken illegally .

Mr. <person>Keating</person> has filed his own suit , alleging that his property was taken illegally .


The cost to taxpayers of Lincoln 's collapse has been estimated at as much as $ 2.5 billion .

The cost to taxpayers of <org>Lincoln</org> 's collapse has been estimated at <money>as much as $ 2.5 billion</money> .


Details of the affair have become public gradually over the past two years , mostly as a result of reporting by several newspapers .

Details of the affair have become public gradually over <date>the past two years</date> , mostly as a result of reporting by several newspapers .


In the midst of his 1988 re-election campaign , Sen. Riegle , chairman of the Senate Banking Committee , returned $ 76,000 in contributions after a Detroit newspaper said that Mr. Keating had gathered the money for him about two weeks before the meeting with regulators .

In the midst of his <date>1988</date> re-election campaign , Sen. <person>Riegle</person> , chairman of <org>the Senate Banking Committee</org> , returned $ <money>76,000</money> in contributions after a <gpe>Detroit</gpe> newspaper said that Mr. <person>Keating</person> had gathered the money for him <date>about two weeks</date> before the meeting with regulators .


Sen. DeConcini , after months of fending off intense press criticism , returned $ 48,000 only last month , shortly after the government formally accused Mr. Keating of defrauding Lincoln .

Sen. <person>DeConcini</person> , after <date>months</date> of fending off intense press criticism , returned $ <money>48,000</money> <date>only last month</date> , shortly after the government formally accused Mr. <person>Keating</person> of defrauding <org>Lincoln</org> .


In addition , Sen. McCain last week disclosed that he belatedly had paid $ 13,433 to American Continental as reimbursement for trips he and his family took aboard the corporate jet to Mr. Keating 's vacation home at Cat Cay , the Bahamas , from 1984 through 1986 .

In addition , Sen. <person>McCain</person> <date>last week</date> disclosed that he belatedly had paid $ <money>13,433</money> to <org>American Continental</org> as reimbursement for trips he and his family took aboard the corporate jet to Mr. <person>Keating</person> 's vacation home at <gpe>Cat Cay</gpe> , the <gpe>Bahamas</gpe> , <date>from 1984 through 1986</date> .


Sen. McCain said he had meant to pay for the trips at the time but that the matter `` fell between the cracks . ''

Sen. <person>McCain</person> said he had meant to pay for the trips at the time but that the matter `` fell between the cracks . ''


Mr. Keating , his family members and associates also donated $ 112,000 to Sen. McCain 's congressional campaigns over the years , according to press accounts .

Mr. <person>Keating</person> , his family members and associates also donated $ <money>112,000</money> to Sen. <person>McCain</person> 's congressional campaigns over <date>the years</date> , according to press accounts .


But Sen. McCain says Mr. Keating broke off their friendship abruptly in 1987 , because the senator refused to press the thrift executive 's case as vigorously as Mr. Keating wanted .

But Sen. <person>McCain</person> says Mr. <person>Keating</person> broke off their friendship abruptly in <date>1987</date> , because the senator refused to press the thrift executive 's case as vigorously as Mr. <person>Keating</person> wanted .


`` He became very angry at that , left my office and told a number of people that I was a wimp , '' Sen. McCain recalls .

`` He became very angry at that , left my office and told a number of people that I was a wimp , '' Sen. <person>McCain</person> recalls .


In July , California newspapers disclosed that Mr. Keating gave $ 850,000 in corporate funds to three tax - exempt voter registration organizations in 1987 and 1988 at the behest of Sen. Cranston , who conceded that soliciting the money was `` a pretty stupid thing to do politically . ''

In <date>July</date> , <gpe>California</gpe> newspapers disclosed that Mr. <person>Keating</person> gave $ <money>850,000</money> in corporate funds to <cardinal>three</cardinal> tax - exempt voter registration organizations in <date>1987</date> and <date>1988</date> at the behest of Sen. <person>Cranston</person> , who conceded that soliciting the money was `` a pretty stupid thing to do politically . ''


In addition , Sen. Cranston received $ 47,000 in campaign donations through Mr. Keating , and the California Democratic party received $ 85,000 in corporate donations for a 1986 get - out - the - vote drive that benefited the senator 's re-election campaign that year .

In addition , Sen. <person>Cranston</person> received $ <money>47,000</money> in campaign donations through Mr. <person>Keating</person> , and the <gpe>California</gpe> <norp>Democratic</norp> party received $ <money>85,000</money> in corporate donations for a <date>1986</date> get - out - the - vote drive that benefited the senator 's re-election campaign <date>that year</date> .


Also in July , Ohio newspapers disclosed $ 200,000 in corporate donations by Mr. Keating to the National Council on Public Policy , a political committee controlled by Sen. Glenn .

Also in <date>July</date> , <gpe>Ohio</gpe> newspapers disclosed $ <money>200,000</money> in corporate donations by Mr. <person>Keating</person> to <org>the National Council on Public Policy</org> , a political committee controlled by Sen. <person>Glenn</person> .


That was in addition to $ 34,000 in direct campaign donations arranged by Mr. Keating to the Ohio senator .

That was in addition to $ <money>34,000</money> in direct campaign donations arranged by Mr. <person>Keating</person> to the <gpe>Ohio</gpe> senator .


Mr. Wertheimer said the Senate Ethics Committee should hire a special outside counsel to conduct an investigation , as was done in the case of former House Speaker James Wright .

Mr. <person>Wertheimer</person> said <org>the Senate Ethics Committee</org> should hire a special outside counsel to conduct an investigation , as was done in the case of former <org>House</org> Speaker <person>James Wright</person> .


Wilson Abney , staff director of the ethics panel , would n't comment .

<person>Wilson Abney</person> , staff director of the ethics panel , would n't comment .


Sen. Riegle said he would cooperate with any inquiry , but that his conduct had been `` entirely proper . ''

Sen. <person>Riegle</person> said he would cooperate with any inquiry , but that his conduct had been `` entirely proper . ''


Sen. McCain said he had been `` deeply concerned '' at the time of the meeting that it might seem to be improper , but decided it was `` entirely appropriate '' for him to seek fair treatment for a constituent .

Sen. <person>McCain</person> said he had been `` deeply concerned '' at the time of the meeting that it might seem to be improper , but decided it was `` entirely appropriate '' for him to seek fair treatment for a constituent .


Sen. Glenn said he had already made a complete disclosure of his role in the affair and `` I am completely satisfied to let this matter rest in the hands of the Senate Ethics Committee . ''

Sen. <person>Glenn</person> said he had already made a complete disclosure of his role in the affair and `` I am completely satisfied to let this matter rest in the hands of <org>the Senate Ethics Committee</org> . ''


Sen. DeConcini said , `` When all is said and done , I expect to be fully exonerated . ''

Sen. <person>DeConcini</person> said , `` When all is said and done , I expect to be fully exonerated . ''


Sen. Cranston , who had already volunteered his help to the Federal Bureau of Investigation in any investigation of Mr. Keating , portrayed his role in 1987 as prodding regulators to act .

Sen. <person>Cranston</person> , who had already volunteered his help to <org>the Federal Bureau of Investigation</org> in any investigation of Mr. <person>Keating</person> , portrayed his role in <date>1987</date> as prodding regulators to act .


`` Why did n't the Bank Board act sooner ? '' he said .

`` Why did n't <org>the Bank Board</org> act sooner ? '' he said .


`` That is what Common Cause should ask be investigated .

`` That is what <org>Common Cause</org> should ask be investigated .


Trinity Industries Inc. said it reached a preliminary agreement to manufacture 1,000 coal rail cars for Norfolk Southern Corp .

<org>Trinity Industries Inc.</org> said it reached a preliminary agreement to manufacture <cardinal>1,000</cardinal> coal rail cars for <org>Norfolk Southern Corp</org> .


Trinity estimated the value of the pact at more than $ 40 million .

<org>Trinity</org> estimated the value of the pact at <money>more than $ 40 million</money> .


Trinity said it plans to begin delivery of the rail cars in the first quarter of 1990 .

<org>Trinity</org> said it plans to begin delivery of the rail cars in <date>the first quarter of 1990</date> .


It said the 1,000 rail cars are in addition to the 1,450 coal rail cars presently being produced for Norfolk Southern , a Norfolk , Va. - based railroad concern .

It said the <cardinal>1,000</cardinal> rail cars are in addition to the <cardinal>1,450</cardinal> coal rail cars presently being produced for <org>Norfolk Southern</org> , a <gpe>Norfolk</gpe> , <gpe>Va.</gpe> - based railroad concern .


When China opened its doors to foreign investors in 1979 , toy makers from Hong Kong were among the first to march in .

When <gpe>China</gpe> opened its doors to foreign investors in <date>1979</date> , toy makers from <gpe>Hong Kong</gpe> were among the <ordinal>first</ordinal> to march in .


Today , with about 75 % of the companies ' products being made in China , the chairman of the Hong Kong Toys Council , Dennis Ting , has suggested a new sourcing label : `` Made in China by Hong Kong Companies . ''

<date>Today</date> , with <percent>about 75 %</percent> of the companies ' products being made in <gpe>China</gpe> , the chairman of the <gpe>Hong Kong</gpe> <org>Toys Council</org> , <person>Dennis Ting</person> , has suggested a new sourcing label : `` Made in <gpe>China</gpe> by <gpe>Hong Kong</gpe> Companies . ''


The toy makers were pushed across the border by rising labor and land costs in the British colony .

The toy makers were pushed across the border by rising labor and land costs in the <norp>British</norp> colony .


But in the wake of the shootings in Beijing on June 4 , the Hong Kong toy industry is worrying about its strong dependence on China .

But in the wake of the shootings in <gpe>Beijing</gpe> on <date>June 4</date> , the <gpe>Hong Kong</gpe> toy industry is worrying about its strong dependence on <gpe>China</gpe> .


Although the manufacturers stress that production has n't been affected by China 's political turmoil , they are looking for additional sites .

Although the manufacturers stress that production has n't been affected by <gpe>China</gpe> 's political turmoil , they are looking for additional sites .


The toy makers , and their foreign buyers , cite uncertainty about China 's economic and political policies .

The toy makers , and their foreign buyers , cite uncertainty about <gpe>China</gpe> 's economic and political policies .


`` Nobody wants to have all his eggs in one basket , '' says David Yeh , chairman and chief executive officer of International Matchbox Group Ltd .

`` Nobody wants to have all his eggs in <cardinal>one</cardinal> basket , '' says <person>David Yeh</person> , chairman and chief executive officer of <org>International Matchbox Group Ltd</org> .


Indeed , Matchbox and other leading Hong Kong toy makers were setting up factories in Southeast Asia , especially in Thailand , long before the massacre .

Indeed , <org>Matchbox</org> and other leading <gpe>Hong Kong</gpe> toy makers were setting up factories in <loc>Southeast Asia</loc> , especially in <gpe>Thailand</gpe> , long before the massacre .


Their steps were partly prompted by concern over a deterioration of business conditions in southern China .

Their steps were partly prompted by concern over a deterioration of business conditions in southern <gpe>China</gpe> .


By diversifying supply sources , the toy makers do n't intend to withdraw from China , manufacturers and foreign buyers say .

By diversifying supply sources , the toy makers do n't intend to withdraw from <gpe>China</gpe> , manufacturers and foreign buyers say .


It would n't be easy to duplicate quickly the manufacturing capacity built up in southern China during the past decade .

It would n't be easy to duplicate quickly the manufacturing capacity built up in southern <gpe>China</gpe> during <date>the past decade</date> .


A supply of cheap labor and the access to Hong Kong 's port , airport , banks and support industries , such as printing companies , have made China 's Guangdong province a premier manufacturing site .

A supply of cheap labor and the access to <gpe>Hong Kong 's</gpe> port , airport , banks and support industries , such as printing companies , have made <gpe>China</gpe> 's <gpe>Guangdong</gpe> province a premier manufacturing site .


`` South China is the most competitive source of toys in the world , '' says Henry Hu , executive director of Wah Shing Toys Consolidated Ltd .

`` <loc>South China</loc> is the most competitive source of toys in the world , '' says <person>Henry Hu</person> , executive director of <org>Wah Shing Toys Consolidated Ltd</org> .


Hong Kong trade figures illustrate the toy makers ' reliance on factories across the border .

<gpe>Hong Kong</gpe> trade figures illustrate the toy makers ' reliance on factories across the border .


In 1988 , exports of domestically produced toys and games fell 19 % from 1987 , to HK$ 10.05 billion -LRB- US$ 1.29 billion -RRB- .

In <date>1988</date> , exports of domestically produced toys and games fell <percent>19 %</percent> from <date>1987</date> , to <money>HK$ 10.05 billion</money> -LRB- <money>US$ 1.29 billion</money> -RRB- .


But re-exports , mainly from China , jumped 75 % , to HK$ 15.92 billion .

But re-exports , mainly from <gpe>China</gpe> , jumped <percent>75 %</percent> , to <money>HK$ 15.92 billion</money> .


In 1989 's first seven months , domestic exports fell 29 % , to HK$ 3.87 billion , while re-exports rose 56 % , to HK$ 11.28 billion .

In <date>1989 's first seven months</date> , domestic exports fell <percent>29 %</percent> , to <money>HK$ 3.87 billion</money> , while re-exports rose <percent>56 %</percent> , to <money>HK$ 11.28 billion</money> .


Manufacturers say there is no immediate substitute for southern China , where an estimated 120,000 people are employed by the toy industry .

Manufacturers say there is no immediate substitute for southern <gpe>China</gpe> , where <cardinal>an estimated 120,000</cardinal> people are employed by the toy industry .


`` For the next few years , like it or not , China is going to be the main supplier , '' says Edmund Young , vice president of Perfecta Enterprises Ltd. , one of the first big Hong Kong toy makers to move across the border .

`` For <date>the next few years</date> , like it or not , <gpe>China</gpe> is going to be the main <gpe>supplier</gpe> , '' says <person>Edmund Young</person> , vice president of <org>Perfecta Enterprises Ltd.</org> , one of the first big <gpe>Hong Kong</gpe> toy makers to move across the border .


In the meantime , as manufacturers and buyers seek new sites , they are focusing mainly on Southeast Asia .

In the meantime , as manufacturers and buyers seek new sites , they are focusing mainly on <loc>Southeast Asia</loc> .


Several big companies have established manufacturing joint ventures in Thailand , including Matchbox , Wah Shing and Kader Industrial Co. , the toy manufacturer headed by Mr. Ting .

Several big companies have established manufacturing joint ventures in <gpe>Thailand</gpe> , including <org>Matchbox</org> , <org>Wah Shing</org> and <org>Kader Industrial Co.</org> , the toy manufacturer headed by Mr. <person>Ting</person> .


Malaysia , the Philippines and Indonesia also are being studied .

<gpe>Malaysia</gpe> , <gpe>the Philippines</gpe> and <gpe>Indonesia</gpe> also are being studied .


With the European Community set to remove its internal trade barriers in 1992 , several Hong Kong companies are beginning to consider Spain , Portugal and Greece as possible manufacturing sites .

With <org>the European Community</org> set to remove its internal trade barriers in <date>1992</date> , several <gpe>Hong Kong</gpe> companies are beginning to consider <gpe>Spain</gpe> , <gpe>Portugal</gpe> and <gpe>Greece</gpe> as possible manufacturing sites .


Worries about China came just as Hong Kong 's toy industry was recovering from a 1987 sales slump and bankruptcy filings by two major U.S. companies , Worlds of Wonder Inc. and Coleco Industries Inc .

Worries about <gpe>China</gpe> came just as <gpe>Hong Kong 's</gpe> toy industry was recovering from a <date>1987</date> sales slump and bankruptcy filings by <cardinal>two</cardinal> major <gpe>U.S.</gpe> companies , <org>Worlds of Wonder Inc.</org> and <org>Coleco Industries Inc</org> .


Hong Kong manufacturers say large debt writeoffs and other financial problems resulting from the 1987 difficulties chastened the local industry , causing it to tighten credit policies and financial management .

<gpe>Hong Kong</gpe> manufacturers say large debt writeoffs and other financial problems resulting from the <date>1987</date> difficulties chastened the local industry , causing it to tighten credit policies and financial management .


The industry regards last year and this year as a period of recovery that will lead to improved results .

The industry regards <date>last year</date> and <date>this year</date> as a period of recovery that will lead to improved results .


Still , they long for a `` mega-hit '' toy to excite retail sales in the U.S. , Hong Kong 's biggest market for toys and games .

Still , they long for a `` mega-hit '' toy to excite retail sales in the <gpe>U.S.</gpe> , <gpe>Hong Kong 's</gpe> biggest market for toys and games .


The closest thing the colony 's companies have to a U.S. mega-hit this year is the Teenage Mutant Ninja Turtles series of action figures manufactured by Playmates Holdings Ltd .

The closest thing the colony 's companies have to a <gpe>U.S.</gpe> mega-hit <date>this year</date> is the <product>Teenage Mutant Ninja Turtles</product> series of action figures manufactured by <org>Playmates Holdings Ltd</org> .


Introduced in mid-1988 , the 15 - centimeter - tall plastic turtles are based on an American comic book and television series .

Introduced in <date>mid-1988</date> , the <quantity>15 - centimeter</quantity> - tall plastic turtles are based on an <norp>American</norp> comic book and television series .


Paul Kwan , managing director of Playmates , says 10 million Ninja Turtles have been sold , placing the reptilian warriors among the 10 biggest - selling toys in the U.S. .

<person>Paul Kwan</person> , managing director of <org>Playmates</org> , says <cardinal>10 million</cardinal> <product>Ninja Turtles</product> have been sold , placing the reptilian warriors among the <cardinal>10</cardinal> biggest - selling toys in the <gpe>U.S.</gpe> .


Should sales continue to be strong through the Christmas season , which accounts for about 60 % of U.S. retail toy sales , Mr. Kwan said the Ninja Turtles could make 1989 a record sales year for Playmates .

Should sales continue to be strong through <date>the Christmas season</date> , which accounts for <percent>about 60 %</percent> of <gpe>U.S.</gpe> retail toy sales , Mr. <person>Kwan</person> said <product>the Ninja Turtles</product> could make <date>1989</date> a record sales year for <org>Playmates</org> .


Other Hong Kong manufacturers expect their results to improve only slightly this year from 1988 .

Other <gpe>Hong Kong</gpe> manufacturers expect their results to improve only slightly <date>this year</date> from <date>1988</date> .


Besides the lack of a fast - selling product , they cite the continued dominance of the U.S. market by Nintendo Entertainment System , an expensive video game made by Nintendo Co. of Japan .

Besides the lack of a fast - selling product , they cite the continued dominance of the <gpe>U.S.</gpe> market by <org>Nintendo Entertainment System</org> , an expensive video game made by <org>Nintendo Co.</org> of <gpe>Japan</gpe> .


Nintendo buyers have little money left to spend on other products .

<org>Nintendo</org> buyers have little money left to spend on other products .


Many of the toy makers ' problems started well before June 4 as a result of overstrained infrastructure and Beijing 's austerity programs launched late last year .

Many of the toy makers ' problems started well before <date>June 4</date> as a result of overstrained infrastructure and <gpe>Beijing</gpe> 's austerity programs launched <date>late last year</date> .


Toy makers complain that electricity in Guangdong has been provided only three days a week in recent months , down from five days a week , as the province 's rapid industrialization has outstripped its generating capacity .

Toy makers complain that electricity in <gpe>Guangdong</gpe> has been provided <date>only three days</date> a week in <date>recent months</date> , down from <date>five days</date> a week , as the province 's rapid industrialization has outstripped its generating capacity .


Manufacturers are upgrading standby power plants .


Bank credit for China investments all but dried up following June 4 .

Bank credit for <gpe>China</gpe> investments all but dried up following <date>June 4</date> .


Also , concern exists that the harder - line Beijing leadership will tighten its control of Guangdong , which has been the main laboratory for the open - door policy and economic reforms .

Also , concern exists that the harder - line <gpe>Beijing</gpe> leadership will tighten its control of <gpe>Guangdong</gpe> , which has been the main laboratory for the open - door policy and economic reforms .


But , toy manufacturers and other industrialists say Beijing will be restrained from tightening controls on export - oriented southern China .

But , toy manufacturers and other industrialists say <gpe>Beijing</gpe> will be restrained from tightening controls on export - oriented southern <gpe>China</gpe> .


They say China 's trade deficit is widening and the country is too short of foreign exchange for it to hamper production in Guangdong .

They say <gpe>China</gpe> 's trade deficit is widening and the country is too short of foreign exchange for it to hamper production in <gpe>Guangdong</gpe> .


`` The Chinese leaders have to decide whether they want control or whether the want exports , '' says Mr. Kwan of Playmates .

`` The <norp>Chinese</norp> leaders have to decide whether they want control or whether the want exports , '' says Mr. <person>Kwan</person> of <org>Playmates</org> .


The Bush administration , urging the Supreme Court to give states more leeway to restrict abortions , said minors have n't any right to abortion without the consent of their parents .

The <person>Bush</person> administration , urging <org>the Supreme Court</org> to give states more leeway to restrict abortions , said minors have n't any right to abortion without the consent of their parents .


Solicitor General Kenneth Starr argued that the 1973 Supreme Court decision , Roe vs. Wade , recognizing a constitutional right to abortion , was incorrect .

Solicitor General <person>Kenneth Starr</person> argued that the <date>1973</date> <org>Supreme Court</org> decision , <person>Roe</person> vs. <person>Wade</person> , recognizing a constitutional right to abortion , was incorrect .


He also argued that the high court was wrong in 1976 to rule that minors have a right to abortion that ca n't be absolutely vetoed by their parents .

He also argued that the high court was wrong in <date>1976</date> to rule that minors have a right to abortion that ca n't be absolutely vetoed by their parents .


The administration 's position was outlined in a friend - of - the - court brief filed in one of three abortion cases the Supreme Court will hear argued and will decide this term .

The administration 's position was outlined in a friend - of - the - court brief filed in <cardinal>one</cardinal> of <cardinal>three</cardinal> abortion cases <org>the Supreme Court</org> will hear argued and will decide this term .


The administration filed the brief in an appeal involving a Minnesota law that requires that both parents of a minor be notified before she may have an abortion .

The administration filed the brief in an appeal involving a <gpe>Minnesota</gpe> law that requires that both parents of a minor be notified before she may have an abortion .


The administration urged the justices to adopt a legal standard suggested by Chief Justice William Rehnquist last July when the high court upheld Missouri 's abortion restrictions .

The administration urged the justices to adopt a legal standard suggested by Chief Justice <person>William Rehnquist</person> <date>last July</date> when the high court upheld <gpe>Missouri</gpe> 's abortion restrictions .


Under that standard , which garnered the votes of only three of the nine justices , a state restriction of abortion is constitutional if the state has a `` reasonable '' justification for adopting it .

Under that standard , which garnered the votes of <cardinal>only three</cardinal> of the <cardinal>nine</cardinal> justices , a state restriction of abortion is constitutional if the state has a `` reasonable '' justification for adopting it .


That is a much easier standard for a state to satisfy than the Supreme Court 's test since 1973 , which requires a state to have a `` compelling '' reason for restricting abortion .

That is a much easier standard for a state to satisfy than <org>the Supreme Court 's</org> test since <date>1973</date> , which requires a state to have a `` compelling '' reason for restricting abortion .


On the provisions of the Minnesota law , the Bush administration said that requiring that both parents be notified is a reasonable regulation , and that there is no need to have an alternative that allows minors to go to court for a judge 's permission instead .

On the provisions of the <gpe>Minnesota</gpe> law , the <person>Bush</person> administration said that requiring that both parents be notified is a reasonable regulation , and that there is no need to have an alternative that allows minors to go to court for a judge 's permission instead .


The case , Hodgson vs. Minnesota , will be argued Nov. 29 .

The case , <person>Hodgson</person> vs. <gpe>Minnesota</gpe> , will be argued <date>Nov. 29</date> .


For 20 years , federal rules have barred the three major television networks from sharing in one of the most lucrative and fastest - growing parts of the television business .

For <date>20 years</date> , federal rules have barred the <cardinal>three</cardinal> major television networks from sharing in one of the most lucrative and fastest - growing parts of the television business .


And for six years , NBC , ABC and CBS have negotiated with Hollywood studios in a futile attempt to change that .

And for <date>six years</date> , <org>NBC</org> , <org>ABC</org> and <org>CBS</org> have negotiated with <gpe>Hollywood</gpe> studios in a futile attempt to change that .


But with foreign companies snapping up U.S. movie studios , the networks are pressing their fight harder than ever .

But with foreign companies snapping up <gpe>U.S.</gpe> movie studios , the networks are pressing their fight harder than ever .


They hope the foreign deals will divide the Hollywood opposition and prod Congress to push for ending federal rules that prohibit the networks from grabbing a piece of rerun sales and owning part of the shows they put on the air .

They hope the foreign deals will divide the <gpe>Hollywood</gpe> opposition and prod <org>Congress</org> to push for ending federal rules that prohibit the networks from grabbing a piece of rerun sales and owning part of the shows they put on the air .


Even network executives , however , admit privately that victory -- either in Congress or in talks with the studios -- is highly doubtful any time soon .

Even network executives , however , admit privately that victory -- either in <org>Congress</org> or in talks with the studios -- is highly doubtful any time soon .


And so the networks also are pushing for new ways to sidestep the `` fin - syn '' provisions , known formally as the Financial Interest and Syndication Rules .


That became clear last week with the disclosure that National Broadcasting Co. , backed by the deep pockets of parent General Electric Co. , had tried to help fund Qintex Australia Ltd. 's now - scuttled $ 1.5 billion bid for MGM / UA Communications Co .

That became clear <date>last week</date> with the disclosure that <org>National Broadcasting Co.</org> , backed by the deep pockets of parent <org>General Electric Co.</org> , had tried to help fund <org>Qintex Australia Ltd. 's</org> now - scuttled <money>$ 1.5 billion</money> bid for <org>MGM / UA Communications Co</org> .


NBC 's interest may revive the deal , which MGM / UA killed last week when the Australian concern had trouble raising cash .

<org>NBC</org> 's interest may revive the deal , which <org>MGM / UA</org> killed <date>last week</date> when the <norp>Australian</norp> concern had trouble raising cash .


Even if that deal is n't revived , NBC hopes to find another .

Even if that deal is n't revived , <org>NBC</org> hopes to find another .


`` Our doors are open , '' an NBC spokesman says .

`` Our doors are open , '' an <org>NBC</org> spokesman says .


NBC may yet find a way to take a passive , minority interest in a program - maker without violating the rules .

<org>NBC</org> may yet find a way to take a passive , minority interest in a program - maker without violating the rules .


And any NBC effort could prompt CBS Inc. and ABC 's parent , Capital Cities / ABC Inc. , to look for ways of skirting the fin - syn regulations .

And any <org>NBC</org> effort could prompt <org>CBS Inc.</org> and <org>ABC</org> 's parent , <org>Capital Cities / ABC Inc.</org> , to look for ways of skirting the fin - syn regulations .


But the networks ' push may only aggravate an increasingly bitter rift between them and Hollywood studios .

But the networks ' push may only aggravate an increasingly bitter rift between them and <gpe>Hollywood</gpe> studios .


Both sides are to sit down next month for yet another meeting on how they might agree on reducing fin - syn restraints .

Both sides are to sit down <date>next month</date> for yet another meeting on how they might agree on reducing fin - syn restraints .


Few people privy to the talks expect the studios to budge .


The networks still are `` uninhibited in their authority '' over what shows get on the air , charges Motion Picture Association President Jack Valenti , the most vociferous opponent of rescinding the rules .

The networks still are `` uninhibited in their authority '' over what shows get on the air , charges <org>Motion Picture Association</org> President <person>Jack Valenti</person> , the most vociferous opponent of rescinding the rules .


Studios are `` powerless '' to get shows in prime - time lineups and keep them there long enough to go into lucrative rerun sales , he contends .


And that 's why the rules , for the most part , must stay in place , he says .


Studio executives in on the talks - including officials at Paramount Communications Inc. , Fries Entertainment Inc. , Warner Communications Inc. and MCA Inc. -- declined to be interviewed .

Studio executives in on the talks - including officials at <org>Paramount Communications Inc.</org> , <org>Fries Entertainment Inc.</org> , <org>Warner Communications Inc.</org> and <org>MCA Inc.</org> -- declined to be interviewed .


But Mr. Valenti , who represents the studios , asserts : `` The whole production industry , to a man , is on the side of preserving '' the rules .

But Mr. <person>Valenti</person> , who represents the studios , asserts : `` The whole production industry , to a man , is on the side of preserving '' the rules .


Such proclamations leave network officials all the more doubtful that the studios will bend .


`` They do n't seem to have an incentive to negotiate , '' says one network executive .

`` They do n't seem to have an incentive to negotiate , '' says <cardinal>one</cardinal> network executive .


`` And there 's no indication that Washington is prepared to address the rules .

`` And there 's no indication that <gpe>Washington</gpe> is prepared to address the rules .


That 's the problem , is n't it ? ''


Indeed it is .


Congress has said repeatedly it wants no part of the mess , urging the studios and the networks , which license rights to air shows made by the studios , to work out their own compromise .

<org>Congress</org> has said repeatedly it wants no part of the mess , urging the studios and the networks , which license rights to air shows made by the studios , to work out their own compromise .


But recent developments have made the networks -- and NBC President Robert Wright , in particular -- ever more adamant that the networks must be unshackled to survive .

But recent developments have made the networks -- and <org>NBC</org> President <person>Robert Wright</person> , in particular -- ever more adamant that the networks must be unshackled to survive .


The latest provocation : Sony Corp. 's plan to acquire Columbia Pictures Entertainment Inc. for $ 3.4 billion , and to buy independent producer Guber Peters Entertainment Co. for $ 200 million .

The latest provocation : <org>Sony Corp. 's</org> plan to acquire <org>Columbia Pictures Entertainment Inc.</org> for <money>$ 3.4 billion</money> , and to buy independent producer <org>Guber Peters Entertainment Co.</org> for <money>$ 200 million</money> .


`` I wonder what Walter Cronkite will think of the Sony / Columbia Broadcast System Trinitron Evening News with Dan Rather broadcast exclusively from Tokyo , '' wrote J.B. Holston , an NBC vice president , in a commentary in last week 's issue of Broadcasting magazine .

`` I wonder what <person>Walter Cronkite</person> will think of <org>the Sony / Columbia Broadcast System Trinitron Evening News</org> with <person>Dan Rather</person> broadcast exclusively from <gpe>Tokyo</gpe> , '' wrote <person>J.B. Holston</person> , an <org>NBC</org> vice president , in a commentary in <date>last week 's</date> issue of <org>Broadcasting</org> magazine .


In his article , Mr. Holston , who was in Europe last week and unavailable , complained that the `` archaic restraints '' in fin - syn rules have `` contributed directly to the acquisition of the studios by non-U.S. enterprises .

In his article , Mr. <person>Holston</person> , who was in <loc>Europe</loc> <date>last week</date> and unavailable , complained that the `` archaic restraints '' in fin - syn rules have `` contributed directly to the acquisition of the studios by <gpe>non-U.S.</gpe> enterprises .


'' -LRB- He did n't mention that NBC , in the meantime , was hoping to assist Australia 's Qintex in buying

'' -LRB- He did n't mention that <org>NBC</org> , in the meantime , was hoping to assist <gpe>Australia</gpe> 's <org>Qintex</org> in buying


An NBC spokesman counters that Mr. Holston 's lament was `` entirely consistent '' with NBC plans because the U.S. rules would limit NBC 's involvement in the Qintex deal so severely as to be `` light years away from the type of unrestrained deals available to Sony -- and everyone else except the three networks . ''

An <org>NBC</org> spokesman counters that Mr. <person>Holston</person> 's lament was `` entirely consistent '' with <org>NBC</org> plans because the <gpe>U.S.</gpe> rules would limit <org>NBC</org> 's involvement in the <org>Qintex</org> deal so severely as to be `` <date>light years</date> away from the type of unrestrained deals available to <org>Sony</org> -- and everyone else except the <cardinal>three</cardinal> networks . ''


The Big Three 's drumbeat for deregulation began intensifying in the summer when the former Time Inc. went ahead with plans to acquire Warner .

The Big Three 's drumbeat for deregulation began intensifying in <date>the summer</date> when the former <org>Time Inc.</org> went ahead with plans to acquire <org>Warner</org> .


Although Time already had a long - term contract to buy movies from Warner , the merger will let Time 's largely unregulated pay - cable channel , Home Box Office , own the Warner movies aired on HBO -- a vertical integration that is effectively blocked by fin - syn regulations .

Although <org>Time</org> already had a long - term contract to buy movies from <org>Warner</org> , the merger will let <org>Time</org> 's largely unregulated pay - cable channel , <org>Home Box Office</org> , own the <org>Warner</org> movies aired on <org>HBO</org> -- a vertical integration that is effectively blocked by fin - syn regulations .


NBC 's Mr. Wright led the way in decrying the networks ' inability to match a Time - Warner combination .

<org>NBC</org> 's Mr. <person>Wright</person> led the way in decrying the networks ' inability to match a <org>Time - Warner</org> combination .


He spoke up again when the Sony bid for Columbia was announced .

He spoke up again when the <org>Sony</org> bid for <org>Columbia</org> was announced .


Since NBC 's interest in the Qintex bid for MGM / UA was disclosed , Mr. Wright has n't been available for comment .

Since <org>NBC</org> 's interest in the <org>Qintex</org> bid for <org>MGM / UA</org> was disclosed , Mr. <person>Wright</person> has n't been available for comment .


With a Qintex deal , NBC would move into uncharted territory -- possibly raising hackles at the studios and in Washington .

With a <org>Qintex</org> deal , <org>NBC</org> would move into uncharted territory -- possibly raising hackles at the studios and in <gpe>Washington</gpe> .


`` It 's never really been tested , '' says William Lilley III , who as a top CBS executive spent years lobbying to have the rules lifted .

`` It 's never really been tested , '' says <person>William Lilley III</person> , who as a top <org>CBS</org> executive spent <date>years</date> lobbying to have the rules lifted .


He now runs Policy Communications in Washington , consulting to media companies .

He now runs <org>Policy Communications</org> in <gpe>Washington</gpe> , consulting to media companies .


Fin - syn rules do n't explicitly block a network from buying a passive , small stake in a company that profits from the rerun syndication networks ca n't enjoy .


Hence , NBC might be able to take , say , a 5 % stake in a company such as MGM / UA .

Hence , <org>NBC</org> might be able to take , say , a <percent>5 %</percent> stake in a company such as <org>MGM / UA</org> .


If the transaction raised objections , the studio 's syndication operations could be spun off into a separate firm in which the network does n't have a direct stake .


But such convolutions would still block the networks from grabbing a big chunk of the riches of syndication .


Under current rules , even when a network fares well with a 100 % - owned series -- ABC , for example , made a killing in broadcasting its popular crime / comedy `` Moonlighting '' -- it is n't allowed to share in the continuing proceeds when the reruns are sold to local stations .

Under current rules , even when a network fares well with a <percent>100 %</percent> - owned series -- <org>ABC</org> , for example , made a killing in broadcasting its popular crime / comedy `` <work_of_art>Moonlighting</work_of_art> '' -- it is n't allowed to share in the continuing proceeds when the reruns are sold to local stations .


Instead , ABC will have to sell off the rights for a one - time fee .

Instead , <org>ABC</org> will have to sell off the rights for a <cardinal>one</cardinal> - time fee .


The networks admit that the chances of getting the relief they want are slim -- for several years at the least .

The networks admit that the chances of getting the relief they want are slim -- for <date>several years</date> at the least .


Six years ago they were tantalizingly close .

<date>Six years ago</date> they were tantalizingly close .


The Reagan - era Federal Communications Commission had ruled in favor of killing most of the rules .

The <person>Reagan</person> - era <org>Federal Communications Commission</org> had ruled in favor of killing most of the rules .


Various evidence , including a Brookings Institution study of some 800 series that the networks had aired and had partly owned in the 1960s , showed the networks did n't wield undue control over the studios as had been alleged .

Various evidence , including a <org>Brookings Institution</org> study of some <cardinal>800</cardinal> series that the networks had aired and had partly owned in <date>the 1960s</date> , showed the networks did n't wield undue control over the studios as had been alleged .


But just eight days before the rules were to die , former President Ronald Reagan , a one - time actor , intervened on behalf of Hollywood .

But <date>just eight days</date> before the rules were to die , former President <person>Ronald Reagan</person> , a <cardinal>one</cardinal> - time actor , intervened on behalf of <gpe>Hollywood</gpe> .


The FCC effort collapsed .


The networks and studios have bickered ever since .


Network officials involved in the studio talks may hope the foreign influx builds more support in Washington , but that seems unlikely .

Network officials involved in the studio talks may hope the foreign influx builds more support in <gpe>Washington</gpe> , but that seems unlikely .


In Congress , the issue falters : It 's about money , not program quality , and Hollywood has lots of clout given its fund raising for senators and representatives overseeing the issue .

In <org>Congress</org> , the issue falters : It 's about money , not program quality , and <gpe>Hollywood</gpe> has lots of clout given its fund raising for senators and representatives overseeing the issue .


A spokesman for Rep. Edward J. Markey -LRB- D - Mass. -RRB- , who heads a subcommittee that oversees the FCC , says Mr. Markey feels `` the world has been forever changed by the Sony - Columbia deal . ''

A spokesman for Rep. <person>Edward J. Markey</person> -LRB- <norp>D</norp> - Mass. -RRB- , who heads a subcommittee that oversees the <org>FCC</org> , says Mr. <person>Markey</person> feels `` the world has been forever changed by the <org>Sony</org> - Columbia deal . ''


But he said Mr. Markey hopes this pushes the networks and studios to work it out on their own .

But he said Mr. <person>Markey</person> hopes this pushes the networks and studios to work it out on their own .


And at the FCC , meanwhile , new Chairman Alfred C. Sikes has said he wants the two sides to hammer out their own plan .

And at the <org>FCC</org> , meanwhile , new Chairman <person>Alfred C. Sikes</person> has said he wants the <cardinal>two</cardinal> sides to hammer out their own plan .


Recognition Equipment Inc. said it settled a civil action filed against it by the federal government on behalf of the U.S. Postal Service .

<org>Recognition Equipment Inc.</org> said it settled a civil action filed against it by the federal government on behalf of <org>the U.S. Postal Service</org> .


The government sued the company in April , seeking $ 23,000 and other unspecified damages related to an alleged contract - steering scheme .

The government sued the company in <date>April</date> , seeking $ <money>23,000</money> and other unspecified damages related to an alleged contract - steering scheme .


The suit named the company , former chief executive officer William G. Moore Jr. , former vice president Robert W. Reedy and five defendants who were n't part of the company .

The suit named the company , former chief executive officer <person>William G. Moore Jr.</person> , former vice president <person>Robert W. Reedy</person> and <cardinal>five</cardinal> defendants who were n't part of the company .


The suit charged the defendants with causing Peter E. Voss , an ex-member of the Postal Service board of governors , to accept $ 23,000 in bribes , kickbacks and gratuities .

The suit charged the defendants with causing <person>Peter E. Voss</person> , an ex-member of the <org>Postal Service</org> board of governors , to accept $ <money>23,000</money> in bribes , kickbacks and gratuities .


Mr. Voss was previously sentenced to four years in prison and fined $ 11,000 for his role in the scheme .

Mr. <person>Voss</person> was previously sentenced to <date>four years</date> in prison and fined $ <money>11,000</money> for his role in the scheme .