Will Deng’s heirs set aU asuperpower hae ed DENG XIAOPING 1904-1997Introducing The All-New Montero Sport. It Came To Comfort Earth. THE MITSUBISHI-MONTERO SPORT. A smooth ride built on a rugged 62-year heritage.MITSUBISHI TAKES 1ST THROUGH 4TH IN THE BRUTAL. DAKAR RALLY IN AFRICA, PROVING THAT MONTEROS ‘ALSO FEEL COMFORTABLE IN THE WINNER'S CIRCLE? The planet wasn't exactly designed with comfort in mind. Fortunately, the all-new Mitsubishi Montero Sport was. In fact, Open Road Magazine callsit almost carlike in its civility” An observation prompted by the Montero Sport's smooth-riding suspension and rock-solid construction ‘Add the Montero Sport's roomy five-passenger cabin and abundant sound insulation, and the Ford Explorer and Toyota 4Runner could be in for @ rough ride. Of course, the Montero Sport has a tough side as well. The available V6" engine and fully-boxed frame have been globally tested in some of the roughest terrain on Earth. Even the transmission has been engineered to shrug off heavy loads and hostile conditions. Best of all, the civilized now Montero Sport starts at a very down-to-earth $17,815: Which may be the most comforting feature of them all. MITSUBISHI MONTERO SPORT Built For Living”You know how you feel after a long day with the kids? So does your dog.MARCH 3, 1997 VoL. 149 Ho.9 ‘Bull Market: New highs—and new ‘worries—for stocks (see BUSINESS) China: Deng Xiaoping set hiscountry onanew course, but reforms are not finished (see Coven) ‘Show Business: Johnny Depp shines inafilmabout Moblife see Tie ARTS) ‘TO OUR READERS 4 LETTERS. 7 NOTEBOOK. a7 (MILESTONES. 23 meme INVESTIGATIONS: The Special Guest 24 ‘A California businessman paid $50,000 to bring his Chinese friends toa Clinton radio address in the Oval Office but that visit and others could end up being even more expensive for the Clinton administration, which also saw its fortunes rise and fall when the Whitewater prosecutor announced that he ‘was leaving, but then decided to stay VICE PRESIDENT: Busy on the Phone 28 Can Al Gore raise money without getting muddy? DRUGS: Turncoat at the Top? 20 ‘The boss of Mexen’s war on narcotics i accused of corruption ‘CRIME: “This Time 1 Did Wt 3 A convicted sex eriminal is accused of striking again ‘TERRORISM: A Serial Bomber in Atlanta?, “4 An attack on a bar echoes the explosion at the Olympics BUSINESS INVESTING: Is the Dow Too Pumped’ 36 By all the usual measures, most stocks are overpriced, but the lure of high returns is hard to resist and people keep pouring. in ‘money. Are the indicators wrong or are our instinets? MONEY IN MOTION: Danicl Kadlec knows investorsare going to take a bath in the market. But when? ‘40 BIZWATCH: Wayne's world of cars; in Deng’s debt; Mrs Harriman’s small fortune; radio's new tune 4s ‘WORLD COVER: China’s Next Chapter a8 As Paramount Leader, Deng Xiaoping liberated his coun- try from the self-defeating precepts of Marxist economics, but he maintained rigid communist polities. In the process, he created a revolution at war with itself, Now, with Deng’s death at age 92, his successors must struggle to make peace with that mixed legacy as they guide one-fifth of the world’s population—whieh starting on July 1 will in clude the residents of Hong Kong—on a still uncertain mareh into the 2ist century THE NEW LEADERS: Who's in Charge? ss The anointed successor Jiang Zemin has been running the country for years but other Party mandarins are now free to ‘make their moves DENG: The Boy Who Turned Somersaults. so His personal saga parallels that of modern China for Deng’schildren?....66 big mission. VIEWPOINT: A Cycle of Cathay 69 Jonathan D. Spence sets the leader in China’s long line of rulers THE ARTS: ‘SHOW BUSINESS: In Donnie Brasco, Johnny Depp proves ‘again—that he isan actor of astonishing range and power 70 BOOKS: Against all commercial odds, first novels continue to be published. Six new ones merit a reader's attention......74 CINEMA: Fosetcood' fine acting edeemsa clichéd history leson Visit the David Lynch Museu; its on Lost Highway... PEOPLE: Barbara Walters invests; a Gandhi weds 8s ESSAY: Barbara Ehrenreich on airport security 86 ‘coven: Painting for TIME by Mario DonTO Oo IME'S CHINA WATCHERS HAD BEEN ‘planningaa special report on the legacy of Deng Xiaoping for ‘months, but it wasn'tuntil 10 pam. Wednesday—early morning in the US.— that Beijing bureau chief Jaime FlorCruz gota tp that China’ ailing leader might be dead. As FlorCruz raced to the Tie bureau, driving past Tiananmen Square and the residences of the top Communist Party officials, he could tell some- thing was amiss; police at each in. tersection were waving motorists to the side so that black ears with lashing red lights could enter ‘Zhongnanhai, the party headquar- ters. Within hours, Deng’s death had been confirmed, and deputy managing editor Jim Kelly had sven the go-ahead for this week's cover package. TIME has long had a special rela- tionship with Deng—or, as we used to spell it, Teng. He was twice named Man of the Year~a distinction shared by a select group of world leaders that in- cludes Churchill, Eisenhower and Gor ‘achev. When Deng decided to visit the USS. in 1979, he gave TiMe his first in R REA terview with a Western magazine. Deng might have seemed an unlike- ly choice as Man ofthe Year for 1978, He had only recently been “rehabilitated” in one of the frequent purges of Mao's U ‘SELECT COMPANY: Deng was one of a handful of leaders to be named TIME's Man ofthe Year ti later years. But we recognized even then that as the chief architect ofthe so: called Four Modernizations, Deng was destined to play a key role in helping propel China into the modern world. A few weeks later, we were rewarded for our preseience with that first exclusive interview—a 30-minute audience that stretched into 80 minutes and formed RS DE the basis of another Deng cover story. By the time Deng won his second Man of the Year nomination, in 1965, the | effect of his “Great Leap Outward” was apparent to everyone. Deng had trans- formed the world’s most populous nation into something like a cap- italist country—albeit one still run with « heavy, communist-style hand, That cover story too followed an ex- clusive interview; this one included not only Tine: journalists but also a sroup of U.S. civic, academic and business leaders who were our suests on a That Newstour of Asia. In Chinese culture, the E: peroris Emperor until he dies, and the new leaders can’t do a il he's left the scene,” says TIME ws Service director Richard Hornik, a former Beijing bureau chief, who coordinated our reporting effort."So China has been stuck in neu tral for the past few years.” Last week the country shifted back into gear. Sleep Better On Air! Frustrated With Your Sleep?» Do you toss and turn at night? Cant scem to find a comfortable position? Does your bac ache when you awake? These are signs that your mattress ‘may not be supporting you propery. Sleep Better On Air =P COMFORT? sleep system rely on springs or water, but on a cushion of ai. Air gently contours to your body’ shape, reducing uncomfortable poines foals mo SELECT COMFORT tour tyr bas rnd re ‘pres point N spine, ' { cand ine, ra provide ronan apport over ie Tests show it also helps prop «tly support your back and tension in the surrounding muscles, So you can sleep comfortably in most any posi-|ss tion and wake which can lower the am ling great! |wsar iy Call For More Information You owe it co yo revolutionary way Hf to learn more about this toa better night's sleep. For a FREE VIDEO *, and Brochure, Call 1-800-831-1211 Ext. 7252 _—2 SELECT COMFORT" Select Comfort Direct Corporation 6105 Trenton Lae Non, Minneapolis, MN 55442(Ete Dow Jones Stake of 4.6% Is Acquired By Fund Led by Investor Michael Price FORTUNE V4 WHERE HuSIMESS I HMESY] The Force Is Still with Us 6¢In a world plagued by catastrophe | and sometimes inhuman events, | Star Wars gives us hope that good | will triumph in the end.99 Neil J. Zemmel Charlottesville, Virginia ‘THE FILM STAR WARS 1S NOT ABOUT video games and woory echoes of love {[CiweMA, Feb. 10) Itis a study of arche- types and an expression of the uneon- scious collective experience of human- kkind. Star Wars has it all: hero, villain, ‘magic weapon, quest and heroine. We have been rewriting this story through- cout time; only the names have been | 1 JUST SAW STAR WARS AGAIN, AND 1 WAS changed to modernize it. Shakespeare | awed not by the special effects but by the would have loved it depth of the movie. Lucas has the ability Lisa Byrd | to paint a story in large strokes and the Malvern, Arizona | fillin the details. His trilogy seems li immense universe. The films fuel our WHEN STAR WARS FIRST CAME OUT, 1 | imagination and become so much more stood inline for more than three hours to | to us than an adrenaline-packed block- seeit. As the years passed, Icouldn’t wait | buster. No matter what anyone says, the | | the additional footage is worth the hefty ticket price. The hype is sickening, and | am very disappointed in George Lucas, ‘who, I now realize, only sees us con- sumers as dollar signs. Rich Meyer Bridgewater, New Jersey for each sequel to come out. But the re- | new additions to Star Wars have release ofthe original has left me disillu- | enriched the original. The little details sioned. The fact that I spent a sizable | make ital the more believable. sum to go to a movie that I've seen Don Sias dozens of times just shows the power of Salina, Kansas fa great marketing campaign. For its backers, the rerelease means millions ‘more in the bank—money that will come from those of usstupid enough to believe LUCAS’ REMAKING OF STAR Wansis akin to someone's painting eyebrows on the ‘Mona Lisa. Even worse, it took him 20 | suppressing some yawns, The story of years to make the revisions. He should have used his energy to ereate prequels or sequels, We've been waiting for them for decades. Scott David Lippe ‘Mineola, New York STAR WARS IS SIMPLY WILLIAM BENNETT'S Book of Virtues set in “a galaxy far, far away.” Both are incredibly successful because our chaotie cosmos longs for the ‘moral “force” of courage, loyalty, disci- pine, justice, love and faith. May those forces be with usall! James Watkins La0tto, Indiana SEEING THE 20TH-ANNIVERSARY EDITION of Star Wars brought a wave of mixed feelings. Isat in a theater surrounded by an audience, the vast majority of whom were not even born when I first saw the film in 1977. I thought the scenes dragged in comparison to the manic action of today’s sci-fi extravaganzas. I realized that nota single adult in the the- ater felt the way he did when he saw the ‘movie forthe first time. Not single pre- teen managed to make it through without the good guys’ triumph istoo slow for the av attention span. So. much has changed since 1977, when I sat between ‘my parents watching the original! Kent May Idylbwild, California HOW COULD YOU WASTE EVEN A SING page on such trivial nonsense as the regurgitated Star Wars? George N. Butler Boca Raton, Florida The new Chevy” Venture” is here Ie takes family travel out of the Stone Age. Chevy Venture $c ons: 2m tartans wu ning a leg a eta grt comply ene er ven ay ty nt egering of waton area ae cen ug he dy acca trig 2g ato mitre emi ‘estes Options fr BPH Theta an meet 8H 1 you at tote y yur soe, yu nd ur ocr ay dee ona prog wl wag 1 ota ze eer he king een gy as ang pu cups ose you cart is cet woe orcs poles Tem ws CAIDA or cr sar us CARO [the meatlon yar Gor ras pert you Set "at OPOLRA" Dns beon Tint win te satan dass of Sata rede lens eg Prosar) Rea caste rose str rable rr rare eet tet rae worsen = Yuin geal poe. You can ce ese rote you. 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CARDURA" can eee you yond spe iy ow, wr ‘sn ese pte. ‘1 CAOUR is ion you, you sl oan att ‘iin to wet you sta jr maen CAROL fas ban suse In ow 90D. palos Top 1 yrs athe du has ben sown o cori owe ‘ng og te ene, er ath ou ke CARDURA mPa yo, (MOURA ray nel poate dL Suga he hase ‘ CARDURAY done rt ate PSA la FSA fe me tveation tx Pose Speci At You ct ay Dee eee ee Eee! ‘corm ce hs oe ad PSA i ce (ter tmpriant Fats You sel an mgr of you yon win 12 ns. dion fo your se ui sus ys aren ese song yr lt ek You" ogee rowing jar 8° aed ma your ood presse CARDURA" (Gears meet) it are fr rs cn, Yu ols pected CARDURA Yau BM nd ot or ast ce: owe, men cat Fav SPH ail oa crc ae sate te, Ds Say caer len ec rest crear ora yr en Sy ar 41 ay fas Fass crc) A ger ei of poser Fasten oes neno aveaAnat ee Test hes oud ce ee you ing CARDURA ow To Take CARDURA? abd What You Should Know While Taking CAROURA” for BPH ‘CARDURA Can Cause a Sudden Drop in lod Presare ‘Ar the VERY FIRST DOSE. 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Then e oc iy wilt reed 3 ot By (ms ee oe eco reset Flow Your Sos sows ae how te CACURA™ You rs eye oe pest Tak mh your ‘hc yo nt he ao ae soe an yo ay ne a eit meg a ¥g Crease or coe gaa a pe us at se sess Oot she CARDURA wih ane fh: ts ested on rou. ‘rer ite tes yo ei tae we ting CAD, Iason boring oe Bod pes, te dz es, ig. ees) swig fe at od Paes (fren ot se ete mit Hews you 2 sa une ics youn wth oar. | ‘Kap CARDURA” a a meds oof Be vax ot | FOR MORE INFORMATION ABOUT CARDURA" AND BPH TALK WITH YOUR DOCTOR. NURSE, PHARMACIST OR ‘OTMER WEALTH CARE PROVIDER ER me rose.0r0 others may laugh at the definition of har- ‘mony when they look at the asymmetri- cal placement of the furniture in the Oval Office proposed by the so-called feng shui master, Isit ché or cheesy? Eric Cheung Lubbock, Texas ASA FENG SUI PRACTITIONER, CAN CON- firm that the Oval Office is situated in one of the worst possible locations. Many straight lines carrying negative energy are directed a it. Pennsylvania Avenue slies right through the White House ike a knife. The best corrective measure ‘would be to construct «fountain in the ata right outside the White House fence or in Lafayette Park to defect the killing arrows pointed atthe building. Angi Ma Wong Rancho Palos Verdes, California LETTERS 10 THE EDITOR Soi st TM Mowe Lair Tee Le line Woke Cre tedbcas blir enbny loededle pera ‘Our E-mal address is Leterstime.com [REPRINTS and PERMISSIONS eso wpe 1D, pea eminton to make pve 100 TIME ngvonos cenet 0, le bed 90 TIME The Wor Most nesting Magazine“W. Jorking in Japanese schools and with the local government on the JET program deepened my understanding of the culture, language, institutions and relationships in Japanese society Nicole Domencic has good reason to be enthusiastic about JET, as the Japan Exchange and . Teaching Program is commonly known. From 1987 to 1988, she taught English to high school students in Shizuoka City, Japan, through JET—an experience that helped the students hone their language skills, and gave her an entrée into Japanese society I Mm Wk JET is just one of many programs that are bung a cultural bridge between Japan and the U.S. In 1996 about 83,000 Japanese students were studying in the US. through various exchange programs—the largest number from any foreign country. For the now, the Keizai Koho Center, with the National Council for the Social Studies, has sponsored trips to Japan for North American social studies educators who visit local schools and government officials and stay with Japanese families. Here's what two of the participants in this unique program have to say about their experience: E, Gene Barr, her and curriculum consultant for the Detroit Urh Project, says, “My Keizai Koho Center Fellowship has resulted in my becoming a real advocate for American students to understand their roles and responsibilities as world citizens.” Marcel Lewinski, teacher at Illinois State University in Normal, Illinois, recalls his Fellowship as “the single most meaningful and educational experience I ever had,” and adds that he has since “organized conferences on Japan and helped Japanese middle school teachers prepare a handbook on global issues.” elementary school te: ‘These and other cross-cultural educational programs are building closer U.S.-Japan ties where they really count: at the grass roots. That's the ticket to tomorrow Japan Business Information Center MU/ KENZAL KOHO CENTER The Japan Business information Centers an independent, non-profit organization aftlieted wih the Keidanren (Japan Federation of eeonomic Organizations) and funded by private industy Wa us at 145 W, 57tn Soot, Dept, 100, Now York Nv. 10019 (fax: 212-4896211), or viet Us at wun Keidanren cr,fv OWNER’S MANUAL fea thind bl (approximately 1. Form asphere of of, wee snow dance with hands Smooth and pack surface un solid ons crafed se 5. Add ore ob ie buto- no exerci coven whe es nde ees tee * wg vebll ptional car ose featured.) rete Maren | | of Secsortal top of original all Making Snow Angels I: Lay down -ficeup-in of 8 snow 2. Ensen arms and lp, forming an shaped mpresion nthe Mforemertoned snow rw is ceed rom the cheadbackwards-leavinga 3. lap ams in an up-and-down open bearer aecnrteameey | spreading (and closing legs. 5B Owner Acsistence Presenting the CRV from Honda, With rugged features like Real Time” 4WD and double wishbone suspension, 1A800-33- HONDS, x 80 or whondaconen. ‘The Four-Wheel Drive System — V OWNERS manuAL hein " + Rea Window D Spa oe Soomshos the new Honda CR-V allows you to do things that justaren't covered in instruction manuals. ThenewCRVLeET’s LAUNCH || — __ sree Pr A NEw crema Sis ESIDENTIAL TIME CAMPAIGN. | Pen: on de 3 a 8 eee WN scan i sean Re ee ee | Gamera ne i reat a sem es enn | eeeeee eee a beeen pcaran Ee STraTunanreeae cee rr eens siete tcia «Rte eu ee Cole ee See flips Sega se he sn a i me men coat on rg ec ae ea | “SGeiti dome era Schama tearcrinar rien wea 0 at vom ns. ca nas rape hie ee ee et Sn as ea aie SSR eS ita iets oer a Soa ay ea ae mi ey re tts es et ye eae Sey aceares Baisisanccarengt amen satel ee eee ae OovETION Hn on sss he esmo40er: we er ae Sonal ees have heen grown fom ced Fan piche fon ees ha bi BEES as iad erent RTS la eps hag ete hs Ss are en Ron eae ae hg Ne cars hae once, Fe Arta bse cet er, eh a a so te ee et eee TIME, MARCH 3.19574éThere is still no cure for ‘the common birthday? John Glenn, 75, announcing his retirement from the Senate 441 do know how to type. 'm not good with the mouse.77 Secretary of State Madeleine Mos beforean Internet ch Albrig ‘4¢Miami is the North Ameri- can headquarters for the South American cartels.77 Pam Brown, spokeswoman “forthe Drug Enforcement Adm 4éMaybe | should be enlight- ened enough to say it doesn’t matter. 17 spiritual adviser Deepak Chopra, on filing. $10 million wuitagainst parties heclaimeconspired todefame him, in USAToday nite and helps prevent tartar.?7 dog biscuit, after Harvard’s Hasty Pudding thea named him Man ofthe Year i WINNERS @ TiMinc 1S EVERYTHING BAL YUN AND SH SHI tthe San Dign 20: a frst date forthe panda pat Object: baby makes tree DAVID HELFCOTT Aer Shines Oscar rominatons, the ecco. Unc Ausle pianist scones are shat ticket [MARRIAGE-LICENSE BUREAUS Nervous couples rush te the knot bere Tighe migration kw take fect Ap Ca ee ed to be dean of sunny Malibu’s Pepperdine Law School; then a repentant independent ote ee tea Pere rer Alte: 30 years, anew work bythe eclsive autor? Wel, no: ts a stay published in (MARK FUHRMAN Now he tells us The eet saw a empty fe MERCHANT AND SANTIAGO Composers sue decades to ats to gun copy. High of thi song Why Do Fools Fal in LoveTajikistan, the t public ofthe Soviet Union, where some 100,000 people have died in civil unrest since early 1992, is being drawn into the brutal war ‘across its southern border in Afghanistan. Officials in Tajikistan as well as Moscow (which is prop- ping up the Tajik government) say the southern town of Kulyab, the political stronghold of Tajik Presi dent Imomali Rakhmonoy, has become a major resupply base for ‘Afghan forces opposed to the Tal= ian, the fundamentalist Isla fighters who have taken control of much of Afghanistan in the past vyear. Sources have told Tis the military aid either comes directly from Russia or is being supplied by former Soviet Central Asian re- publics with Moscow’s blessing. ‘The equipment is loaded onto Afghan heavy-transport planes in Kulyab for the trip south. Last week half a dozen such Russian- built transports were siting on the tarmae in Kulyab, some of them painted in camouflage. Much of the aid is going to a man who used. tobe the Soviet army’s most feared adversary in Afghanistan, Ahmad Shah Massoud, one of the leaders of the forces combatting the Tal ‘ban, Russian officials acknowl edge that Kulyab has become a “reserve airfield” for the ant Taliban forces, but will not admit to providing military aid. Russia could stop the flow of arms if it ‘wanted: regiment of the Russian army's 201st Motorized Rifle Divi sion is based only a few minutes drive from the airport By Paul Quinn hg/Moscow TOO MUCH S| Ceo) ed ae eter ieeey ery ere Pere ee Perr arrears ce er ese week touting his agenda for pene ca XIAOPING len cf £ hind, architect Baik Rr OCRS Bt Ea AYIONS 10: The Rich Are Different Bil Gates may be the riches Meio bt ore Dian tat 15 ion in toot be According Ine Wealthy 10° Ranking ofthe chest mer pastored poe Michael Repper 5 and Robert Gun a Seco mis fepesia Be frabend ofthe ‘tien Max f Eaptinn parol the power who bil the Central Pact Road just behind meat pecker ip Avhour and vay. Wray behind John D. Rochelle No Gates does gure to threster ol fobe D. The authors eoetacd ae uae ty oe oni Caee ices ap oi Syme tee aere Bengt Oyen, won te exoepton of Sam Walton of Wa Klar (ei) everyone onthe at tela tls sol aa eestor oy syn income te Otter ving Auer os on he lat Waren bull (G0), John Kage (2), Pal Alen {3} Sumner Resstone (87 and Non Peeman 5)ONESOURCEWArICcH Volt No.2 February 1997 DCNet ed JANUS SPECIAL SITUATIONS FUND rant ‘Aava Pad yy hen Lede reat send ag ls eckgue' Pol @ d by Devid Decker inweats in stocks of ell types and snes, but with pecial twit: Decker cacentrates on companies whose special situations have been overlooked by Wall Stee BERGER/BIAM INTERNATIONAL FUND sta, nad Beck kind Aas US) Lad, (BIAM). This Funds investment eam, BIAM proc 50 yeicf eli mee cid the same yp of soll, bottom-up stock ection people have come i expect rr the Berger Fun INVESCO REALTY FUND CO) INVESCO FUND asset category that may of may not rite or all in tandem with the lyin REITs, builders, developers b THERE MAY BE NO BETTER PLACE TO BUILD A PORTFOLIO OF MUTUAL FUNDS. We of mutual Funds consists ofboth holdings and supplemen tal fands that can bring an added dimension to the portfalio, Both are available through Mutual arce*—a service that gives you access to over 600 funds free of lads and transact Stop by a Schwab branch and have = a cxprcsentative help you develop a FREE SUBSCRIPTION emaprehensive strategy for mutual Fond investing. (Remember: Por two free iames of Schwab's ihere are no gumantecsixinveating) To analyse and compare Mata! Po Slat Lists vito thowsands of mutual visit our Web site of our 240 branches or call: 1-800-5-NO-LOAD Happens cia oes www.schwab.com CWieTe onion yl)RAW DATA For the past year, Reebok has been selling a women’s running shoe with a rname—Incubus—that inspires fear rather than fleetness. Incubus isa mythical demon that rapes sleeping women. Reebok says no one has. complained; in fat, the shoe has sold better than expecte: Incubus 1-32734 \WhiNawyBerry 5 Uk 30 vr EUR 8 vee iia bsk Made in CHINA wooo Brave New World? Where to draw the line betwoen the right to know and the right to be left alone? From its rulings about sifting through other people's garbage (it's O.K) to last week's decision per- mitting cops to order passengers to get out of ‘car, the Supreme Court has been auofully mealymouthed about protecting the zone of privacy it once discovered in the Constitution. Now the pace of technology is speeding past the ability of lawmakers to adapt. Herewith a sampling ofthe latest gadgetry that will soon De watching you. YES OO Some governments have been spying from the heavens for decades, but later this year the first commercial imaging satellites are sched: uled to liftoff. Their high-resolution photos are expected to be a boon for developers and environmentalists—as well as foreign govern- ‘ments and well-heeled voyeurs. a EE data rests Sno, hey se Ay vy 19 mab Siac otineek a oe ceca fngonateoch ors flow pctiog op the morning paper in his pfs Smart highway systems such as automated toll collection devies hold the promise of Smoothing out trafic ams eliminating oll tooth and cutting costs, But the same eqip- ment that permits the automatic ling ofa tereabouts CEs Se CET egeeen trap a ese cie fey (aero iy hese Sas eeeeg eaiete ade tereas e ‘anki bly sarc oe det tho asoralokcragienics of iuica Ane ro jour ate ost ‘A photo taken by a satelite “The light hides the camera ro ‘A pass identiies a car ‘The latest in strip-searchingSpeedIntroducing a product SO advanced it’s actually hours ahead of 1 a(omee)ga]el-uaiu(e) gma : ub ER ick-uPs [TPS] MOVING at the SPEED of BUSINESS:BOOK MELESTONES APPOINTED. CHARLES CHAPUT, 52, 25 Archbishop of Denver. Chaput, a ‘member of the Prairie Band Potawato- mi tribe, is U'S. Catholicism’ first Na tive American archbishop. RECOVERING. ELIZABETH TAYLOR, 64, from surgery to remove a in. brain ‘tumor, which, doctors say, appears to bbe benign; in Los Angeles. CHARGED. GUEORGUI MAKHARADZE, 35, Georgian diplomat, with involun- tary manslaughter in the death of Jo- vane Waltrick, 16, who was killed in a ‘car crash in January; in Washington. PLEADED GUILTY. DANIEL CARLETON arpusex, 73, Nobel-prizewinning scientist for his work on viruses; to two counts of child abuse; in Frederick, ‘Maryland. In a plea bargain, Gajdusek will serve up to a year in jail for mo- lesting a 16-year-old boy, now 24 WITHDRAWN. RIDDICK BOWE, 29, from U.S. Marine Corps Reserve Boot camp after Il days. The ex-heavyweight champ’s manager said Bowe missed “GRAHAM I 048 his wife and five children, and “had become used to living a life of luxury.” DIED. OSCAR ADAMS JR., 72, former state-supreme-court justice and the first black elected to statewide office in Alabama; of cancer, in Birmingham. ‘Adams, a top civil rights lawyer, was appointed to a vacancy on the state's igh court in 1980. He won the seat in 1982 and was re-elected twice. DIED. CHIEN SHIUNG WU, 84, Columbia University professor emeritus and one of the world’s foremost physicists; in New York City. A native of Shanghai, Wu came to the US. in 1996 and ‘earned a doctorate in physies from the University of California, Berkeley. In 1956 she conducted an experiment that disproved the theory that move- ‘ment in nature is always symmetrical DIED. LEO ROSTEN, 88, author best known for is works celebrating Jewish celture; in New York Gity. His definitive reference work, The Joys of Yiddish, published in 1968, introduced readers to ‘colorful and now common terms like | 1 schlemie, schmall and chutzpah, Ana- tive of Poland, Rosten seasoned his scholarship with hurnor, which becaled ‘oneo the requirements for sanity.” DIED. ROBERT KLARK GRAHAM, 90, op- tical physicist who developed shatter- proof plastic eyeglass lenses; in Seattle. Later in life Graham established a co troversial sperm bank for Nobel Prize winners. He was criticized as a eugeni cist, but his bank has been credited with fathering more than 200 children. DIED. EMILY HAKN, 92, adventurous au- thor of more than 50 books on subjects ranging from seduction to apes to cook- ing; in New York City. Her career began in 1924, when she crossed the country ina Model Ford, chronicling hertray- ls in letters to her brother, who sent them to the New Yorker. She wrote for the magazine throughout her life, be- coming its China correspondent in 1935. In China she became temporarily addicted to opium, befriended Mao Ze- dong and met her future husband, a British intelligence officer by whom she proudly had a child out of wedlock. From the White House point of view, he 23 YEARS AGO IN TIME Gs nai ttajaatyetinakiteiCax, Cielisictien even PPREERMEML more tenacious and less tolerant of anything An Immovable Force PEER M that stands in his way. A pragmatic and in oigaton fom the fre Archibald Co, tom ail, Jewerabs tor a9 interes ay Cox IGAr Ihc sech sal ea : was in fel theory and lengthy staff discus ‘ are sound hovwasir to gev hors Gute Special prosecutor Uendaworskt ly to ¢Moneyman Chung came calling on the White House 49 times, often with his Asian friends, and the Democrats got $50,000 for one visit By MICHAEL DUFFY and MICHAEL WEISSKOPF morning radio broadcasts feel Tike messy. famil White kids for happy snapshots President. No one wears a tie For a few brief hours each week, the whole stuffy place fe ke an an office. So if six Chinese businessmen in dark suits standing near the back of the Oval Office looked a bit out of place on March 11, 1985, they were. Their admission had been bought and paid f It's one thing to pay to sleep inthe Lin. In Bedroom or ride on Air Force One. Its uite another to pay $7,000 a head to watch ninute talk on House aides bring their and visting inlaws ove he Bill Clinton deliver an e radio, But that's what Johnny Chung, no stranger to the White Ho parently did, Democratic officials and la California entrepreneur tell TIN gave $50,000 to the Democratic National Committee in exchange for for him and six b to watch Clinton he invitation ss frit ound off 0 orm to college from welfare ly how the dea What is known from documents and inter views is that then p..c. chairman Don Fowler met with Chung in his office March 9, 1995; that he arranged for Chung and his entourage to attend the radio address two days later, even though other DN. finance officials who had seen Chung separately had turned down his request; that the Chinese business executives Chung brought along ‘were photographed with the President after his talk; and that the D.x.c. logg $50,000 gift from Chung on March 17, Fowler strongly denies that he ally intervened for Chung or discussed a do- nation in return forthe invitation, Even so, CChung’s Oval Office vist for the radio chat stands out even by the standards of Wash: ington’s cash-hungry polities. One of the alcontr butions given on Monday have litle to do son Wednesday. What happe with res acterized 28 coincidental and tends to be indled with some finesse. It may defy all logic, but the myth is kept alive by the ap- pearance of a carefully maintained barrier yeen quid and quo. But the alleged deal Chung and the b.x.¢. was an un- and reeipient is often char usually explicit swap of money for access. And access, in this case, was literally the (Oval Office. “Its not like Mr. Chung was dy ing to ive the money,” said his Los Angeles attorney, Brian Sun, “He was asked.” Sun declines to provide details bout who init ated the talk ofa trade-off, how much was actually discussed and by whom. Yet what isalso clear—and disturbing about this White House moment is that ‘Chung was leading a delegation of foreign: crs, who by law are strictly forbidden to give money to the President's party. Did they help pony up the $50,000, and if they didn’t, did Chung get help from anyoneEee U EYE eg ‘The Whitewater investigator, above, who said last week he would resign but then reversed himself, may have a counterpart ee er Leer Pasion rei irieeennanci else? White House officials deny any con- | service. He went to Little Rock, Arkansas, | sceded the campaign with foreign money nection between Chung’s frequent access | where, according to the Las Angeles Times, | was intensified by a New York Times ex- and his contributions to the party, which | hemet Hillary Clinton after knockingon the | amination of Chung’s business income. His. total $366,000 since 1994. They add that | door of the Governor's mansion attomey Sun was quoted as saying that fo Clinton was puzaed by the presence oft his p.x.c. donations, Chung used som Chinese businessmen and was uncomfort UNG SOON CAME'TO IDEALIZE | the $3 million he had received in consult able posing with them for pictur the First Lady. He was pos- | ing feesand from investors in his company The selling of the radio address is the sessed by a “Hillary fixation, yme of whom were Chinese. But Sun in: atest setback for a White House already at White House official says. The | sisted in is interview with Tit that none the mercy of investigators it cannot control attention, if not the admira- | of the $50,000 gift exchanged for White and fund raisers it claims to barely know tion, was mutual. Nearly half | House access came from the Chinese visi The White House was briefly elated last the 49 times Chung visited the | tors. Instead Chung likened it to an inves week when it learned that Whitewater spe White House, he was cleared | ment— buying face for powerful business ial counsel Kenneth Starr was stepping | by Hillary's office, according to Seeret Ser- | leaders who might return the favor by in down-only to discover a few days later | vice records, On the same week as the ra- | cluding Chung in deals back in their coun- that he had changed his mind, Even worse, | dio address, Chung brought his Chinese | try. “He wastrying to impress these guys by Chung ddegaiors prsesee st the rio | fadingcnrpasion-to oon tho Pst Lay | House epllned Sun. I ging cont dire nthe mou vivid ina sing fps. | snd then ea atthe Whiteltousemes: | bution wasaccesary why Sot Sontilditroey Cental janet Rano ap. | axicave’ of. a Chinese, best campeny | valeeacalled New Yok Senator Pr sent un tnlepleant Soin to trek: | hough the Weal Wing crying te se: | Mogan lat sock to boone the Tie Democrai und-aisng practice, | pucksand hing picuresastheyeren Hs | Detocrat to cll or an outdo invest sndlso ut when Washincion was try | brmotoal rechures ature many hor | lon Others are certsa to folow. Reno wh ing to get a fix on John Huang and Charlie | tos Yah Lin Trie,alongcomes Johnny Chung to | one with the beer executive, which, the New | four independent counsels o probe Clinton make things really interesting. Chung, 42, | York Times reported, ison display on one of | Cabinet officers, has who says he came to the US, from Taiwan | Beijing's busiest streets, “He became an ir- | case. She has yet to hear “allegations of with $13 in his pocket, met Clinton in 1992, | ritant,"saysa White House offcial.“He took | criminal activity” about senior Execut when after seeing a debate between Clin- | unfair advantage of the First Lady's offce.”.| Branch officials, says a Justice Department ton and Bush, he got the idea that govern The larger, more troubling question of | aide, which would require her to take the in ment offices could be a market for his fax | whether Democratic officials had illegally | vestigation away froma team of departmentlawyers probing the fund-raising practices. The White House no doubt agrees with her position—at least so far. But what the Jaw requites and polities demands is often two very different things. And Clinton may find that it is simply better to bring in an outside investigator to get to the bottom of the mess than to spend some part of every week responding to the latest revelation. “An independent counsel would be a bad thing for the Administration, but this is al- ready a bad thing,” says John Barrett, who worked for Iran-contra prosecutor Lav rence Walsh and now teaches law at St. John’s University in New York City Clinton seemed to dart back and forth last week between calm and indignation, insisting that his Administration had ‘made no deals for dollars. He conti ued to call for campaign-finanee form, although at a fund raiser in New York on Tuesday, he sounded as if he were addressing Green Berets going into battle, instead of wealthy diners tucking into tenderloins when he praised donors for being brave enough to attend a $10,000-a- plate dinner at a businessman's posh Upper East Side town house. “I ap- preciate the fact that you came here knowing you might be targeted for the exercise of your constitutional right tostand up and support the peo- ple you believe in,” Clinton said ‘But if the dazed look inthe eyes of White House officials is any guide, Clinton cannot let this go on indef nitely. .X.¢. chairman Roy Romer an- nounced last week that the party will return more money to suspicious soutroes and donors onee an internal audit has been completed. The party has already returned more than $1.5 million, most of it raised by Huang, the zealous former b.N.c. vice chairman, New evidence surfaces almost daily that the White House easily in serted its fund-raising interests into the poliey machinery of government. ‘The Washington Post reported last ‘week that a small group of donors from the territory of Guam sent near= ly $1 million to the Democratic Party last year after Hillary visited the is- land briefly in 1995. Just over a year later, an Interior Department official recommended legislation that would loosen U.S. authority over the territo- ry on Such issues as immigration and Tabor standards—a proposal. that some government officials attributed to the Guam Governor's heroic fund: raising efforts The role of offshore money also might have played a part in an at- tempt last year by the D.x.c’s Huang to funnel $250,000 to the Democratic Party through a Virginia-based business group. The Washington Post reported that Huang ed the Asian American Business Round: table in Fairfax to act as a conduit for the money, whose source remains mysterious. For its services, the Roundtable was to re ceive an 18% slice, or $45,000, But Round. table vice president Rawlein Soberano de- clined Huang’ offer. Huang’s attorney has denied that the meeting ever took place For the White House, its best advan: tage at the moment isthe setbacks the Re- publicans have suffered in their efforts to make something of Clinton's fund-raising transgressions. Last week Huang and for- yeaa Donors and recipionts try to make it appear that there Is nothing between the quid and the quo HILLARY AND GUAM A group from the stand territory sent nearly $1 milion tothe Democrats, after the First Lady visited. The Administration later proposed loosening U.S. authority there mer Justice Department official Webster Hubbell, pleading the Fifth Amendment declined to provide documents subpoe- naed by the House investigation led by Representative Dan Burton of Indiana. In the Senate, Democrats and even some 6.0.8". moderates have complained that Senator Fred Thompson badly overplayed his hand when he asked for a $6.5 million hearing budget. Majority leader Trent Lott is already worried that the public sees the Hill probes as witch-hunts; he may, in a deal with Democratic minority leader Tom Daschle, end up shrinking the scope and duration of Thompson's hearings. But the White House's biggest vietory last week was delivered by its nemesis, in ‘dependent counsel Starr. On Mon: day, Pepperdine University in Mal- ibu, California, announced that it had hired Starr to be dean of its law ‘and publie-poliey schools starting in August, That surprise cheered the ‘White House and infuriated Repub: licans, many of whom had hoped Starr could slowly undo the Clin- tons’ grip on power with a string of indictments in the Whitewater affair later this year. Starr insisted that the investigation would go on without him, but well-placed sources noted that without the cooperation of Hubbell, Hillary’s former law part ner in Little Rock, and of Whitewa- ter partner Susan MeDougal, Starr had been stymied. In other words, it was unlikely he would indict the President or his wife without the whole story Then, just as that deduction was sinking in, Starr reversed himself and decided to stay on as counsel inde nitely. “I think there was a fairly bbroad-based sense that [had made a mistake,” Starr said by way of expla nation. But the damage had already bbeen done. “He spilt the milk,” said former federal prosecutor Joseph DiGenova. “He's picking it up.” And that, as the proverb suggest, is almost impossible. Starr may yet bring indictments against Clinton aides who participated in a possible cover-up during the first term or per- jured themselves in sworn testimony But attention is shifting from a sean dal based partly on the hard-to. believe idea that Clinton tried to en. rich himself tothe easy-to-believe idea that he wanted to get re-elected. Cin ton, everyone knows, careslittle about making money. But when it comes to ‘winning, he takes no prisoners. — Wty reporting by James Carney, Viveca Novak nd Karen Turolty WashingtonON Is Al Too Good at Passing the The Vice President has a problem: how to get money without getting muddy By RICHARD LACAYO cratic National Committee had a prob. lem. Faced with the cost of its massive early media strategy, it needed a quick $1 million or so. A senior White House of- ficial had a solution: get the President to call some well-padded contributors. At the White House, Bill Clinton was presented with alist of 10 names. But the President, who has an aversion to dialing for dollars, managed to busy himself with other things. The next stop for officials looking for a willing fund raiser for the mini tel thon: the office of Vice President Gore. No problem. One hour and 10 vice-presiden- tial phone calls later, the DNC treasury was fat and happy Effective fund raising is not a erime, at least not in that instance, But in the hard and fast running of campaign '96, the line bet and forbidden got ground in the dirt. In the growing mess ‘over Democratic financing for the cam- paign, Al Gore finds himself with one toe over the line in the matter of the Buddhist temple event and facing plenty of questions to come. And the recent past makes Gore's fu- ture tricky. His presidential ambitions for 2000 require him to tay at work in the mon- ey game he's so good at. But by doing that he runs the risk of [Ee FALL OF 1995, AND THE DEM- effective Hat? Despite his stiff- ness in public, Gore is a born pitchman. Last year he brought the party more than $15 million. “If we needed someone to go to a fund raise, says a campaign of ficial, “he'd always If Gore runs in 2000, many ofthose donors, their names resting in the personal database that he keeps at the NG, will be tapped again. During his trip last week to the Los Angeles meeting of the big-spending ari-cio, where he promised new rules requiring all businesses that contract with the Federal Government to ‘meet fair-labor standards, Gore made time for private chats with two significant De mocratic Party supporters: supermarket ‘mogul Ronald Burkle and real estate in- vestor Stanley Hirsh, “It’s breathtaking hhow fast and aggressively he's moving,” says a Democratic stalwart. Though Gore's aides insist he wasn't asking for do- nations on this visit, they admit he was laying the basis for a squeeze this year or next. Tn dealing with his most productive fund raisers, Gore cean be as attentive as a social director ata vacation spa. Alan soiling the upright reputation Kessler, a lawyer from Phila that may be his greatest delphia who helped raise ength with voters. BRADLEY: A clean 5.5 million lst year, is pract strength with BRADLEY: Alene yy $5.5 milion lst yea, i practi Gore's visit last April to a Buddhist temple near Los Angeles is cer tain to occupy a good part ofthe fortheor ing.congressional hearings. His shifting sto ries about whether he knew it was a fund raiser were followed by the disclosure two weeks ago that his office had been warned by the National Security Council to exercise ‘great, great caution” toward the proposed visit. The Vice President's office has ac- knowledged that Gore's senior politcal aide, David Strauss, discussed the event with the party’ fund-raising division, cally a pen pal. When Kessler's wife last gave birth, there was a congrat latory phone eal from Gore. When hisson was recovering from knee surgery, there ‘was a note, Another note marked the Bas Mitzvah of Kessler’s daughter. And when her ninth-grade class visited Washington Gore arranged a tour of the White House ‘and posed fora group photo, Though Gore needs money fora presi dential race, he also needs clean hands. Plus he has to pre-empt a possible primary challenge from former Senator Bill Bradley (GORE: The Veep mingled last week with the eashrich AFL-CIO of New Jersey, who wants to make a signa ture issue out of campaign-finance reform. Lately Gore has been promoting the idea of requiring broadeast outlets to provide ad: vertising slots, the main thing campaigns spend money on, free of charge to them. No Dig outlays, goes the reasoning, no need for big fund raising. But on the most important piece of current reform legislation, the Mc- Cain-Feingold bill banning “soft money” contributions, Gore has to keep his dis tance. One reason is that Republicans may walk away from it if they think Gore will boost his chances in 2000 by taking eredit for its passage. Another is that Clinton bad ly wants that same credit for himself ‘Whether or nothe ean attach his name, finance reform may be Gore's best bet for the future. “He'll have a well-funded cam paign under any system,” says a White House aide, “The better the public feels about the system, the better itis for incur bents ike him.” By the same logic, f Clinton fails to identify himself soon with success ful campaign reform, Gore could be taint- ed by association even if he doesn't have "more sins to confess from '96. Three years from now, that eguld foree him into one of the trickiest political maneuvers since 1968, when Vice President Hubert Humphrey, aiming forthe presidency, tried to distance himself from the Vietnam War policies of his own Administration. If Humphrey wore stil around he would tell you: Compared to the intricacies ofthat dance, the macarena is simplicity itslf — Reported by James Carey with Gore aed Karen Turmy nd Michael Weisshopt WashingtonFor you could have a Compaq or a Toshiba. You could also have a award-winni nd that unmatched ThinkPad “feel.” Just call for more details and to find out wher you can buy one. Or come visit UMMA better place wo think Solutions for a small planetClueless in Washington Why wasn’t the U.S. warned that Mexico was about fighter for corruption? to arrest its own top drug By HOWARD CHUA-EOAN the news. Bill Clinton's antidrug czar Barry McCaffrey heard it from the State Department, which had found ‘out about it from reporters. The Drug En- forcement Administration was caught flat footed, as was theta. Atapress conference, a chagrined Attorney General Janet Reno said, “What [learned was at the point after the arrest was made. The man arrested was McC frey’s counterpart in Mexico, ral Jesis Gutiérrez Rebollo,aman of reputed honesty and heroism ‘whose appointment only 10 weeks ago McCaffrey had praised eff sively. That image began tofadeon Feb, 6, when an informant told the Mexican Defense Secretary, Gen: eral Enrique Cervantes, that Gut Gerez was living in a luxury apart ‘ment “whose rent eannot be paid with the salary of a public official & statement from Cervantes’ office later said. Summoned to a. mic: night meeting on the same day Mexico's drug ezar suffered a heart attack when questioned about the apartment, and was ordered into a military hospital In the days that followed, in vestigators discovered a lot about Gutiérrez. Not only had he con: sorted with drug traffickers since at least 1993, but the apartment that trig: gered the investigation had been given to him by drug dealer Eduardo Gonzalez Qui rarte, Hes reputed to be a lieutenant of one (of Mexico's most notorious narcotraffckers, ‘Amado Carrillo Fuentes, alleged leader of the Judrez cartel. On Tuesday, Feb, 18, wire taps reportedly confirmed that Gutiérrez ind two top aides had taken protection money from a Carrillo lieutenant. The gen- tral was then placed under arrest Washington officials were stunned. Mexico i the conduit for as much as 75% of the cocaine that reaches the U.S. The two- year-old government of President Emesto Zedillo, which succeeded a regime pep- pered with charges of corruption, had made great efforts to be seen asa credible partner in the war against drugs. Why then would Zedillo fail to send an early warning when 30 Gutiérrez, was first suspected—and as a result embarrass the Administration? The timing was especially unfortunate. The ar- rest took place less than two weeks before Clinton is to send his annual report to Con- gress certifying Mexico's commitment to the antidrug effort. While Clinton will not decertify Mexico, the news undercuts his claim that antidrug cooperation has im- proved under Zedillo. Mexican Foreign Minister José Angel Gurra, visiting Wash ington last week, was abruptly summoned to the White House for a reprimand, According to a senior Mexican offical, however, Zedillo and Cervantes had huddled after Feb. 6, deciding not to inform Wash- ington—and thus risk Clinton's wrath—unti a solid case developed against Gutiérrez Zeaillo may have seen a chance to flex some badly needed muscle and make sure Mexi co's generals understood that the impetus to ‘nab Gutiérrez came from him—and not the US. Inany ease, Zedillo does not much eare for certification. Its, he told Ti, “a rather improper procedure, not very consistent withthe principles of international law.” Gutiérrez claims he was part of an un dercover plan to snare Carrillo approved by ‘unnamed “superiors.” The byzantine nature of Mexican politics has led to speculation that Gutiérrez may have been framed and that the U.S dil indeed push for the arrest. Afterall, every year at certification time Mexico seems to stage an antidrug spect cle. Might not this years be Gutiérrez? If so, the White House is putting on quite an act of being angry. Its aghast that the UGS. embassy, the DEA and the cia which all maintain large offices in Mexico failed to report on Gutiérrez. DEA off in Mexico were not even aware that he hhad moved into a luxury apartment. Fumed ‘atop Clinton adviser: “This is clearly a ma- jor intelligence failure.” There were other reasons to be suspicious of Gutiérrez. For seven years he had been in command of (Guadalajara, where drug money is known to contaminate the oficer comps. The druglords he rounded up were Carrillo rivals, In Janu- ary, Carrillo evaded capture when his sisters ‘wedding was raided. Officials now wonder if the was tipped off by a well-placed friend. DEA officials tried to explain the lapse by contending that their agents are so closely watched by Mexican police that they can’t move around the country—a symptom of the friction between law en: forcers of both countries. The antagonism, say Washington sources, led to sanitized, less-than- informative briefings with Mexi ‘ean officials. Thus if Gutiérrez received sensitive intelligence, DEA officials say, it was not from their headquarters. Still, Gutiérrez had other potential, unwitting bettors, including admiring U'S. embassy operatives. Thoseand the security of their informants—are now being intensely scrutinized. —Reported by Tim Padgett ‘Mexico Cly and Elaine ShannoniWashington