Voice of America, 97-10-27

Voice of America: Selected Articles Directory - Previous Article - Next Article

From: The Voice of America <gopher://gopher.voa.gov>

CONTENTS

[01] BRITAIN / EUROPE (L-ONLY) BY ANDRE DE NESNERA (LONDON)

[02] EURO STOCKS (S UPDATE) BY JACK HUIZENGA (LONDON)

[03] MONDAY'S EDITORIALS BY ANDREW N. GUTHRIE (WASHINGTON)

[04] MONTENEGRO VOTE (S ONLY) BY ART CHIMES (PRAGUE)

[05] N-Y ECON WRAP (S & L) BY MAX RUSTON (NEW YORK)

[01] BRITAIN / EUROPE (L-ONLY) BY ANDRE DE NESNERA (LONDON)

INTRO: BRITAIN'S FINANCE MINISTER GORDON BROWN HAS RULED OUT SIGNING UP TO THE SINGLE EUROPEAN CURRENCY WHEN IT TAKES EFFECT ON JANUARY FIRST 1999. BUT AS V-O-A CORRESPONDENT ANDRE DE NESNERA REPORTS FROM LONDON, MR. BROWN SEES BRITAIN JOINING -- IF THE ECONOMIC CRITERIA ARE RIGHT.

TEXT: BRITISH FINANCE MINISTER GORDON BROWN TOLD PARLIAMENT THE DECISION TO JOIN THE SINGLE EUROPEAN CURRENCY IS THE MOST IMPORTANT QUESTION FACING BRITAIN THIS GENERATION.

MR. BROWN SAID IN PRINCIPLE A SUCCESSFUL SINGLE CURRENCY WITHIN A SINGLE EUROPEAN MARKET WOULD BE A BENEFIT TO EUROPE AND BRITAIN. THE BRITISH FINANCE MINISTER SAID IF A SINGLE CURRENCY WOULD BE GOOD FOR BRITISH JOBS, FOR BRITISH BUSINESS, AND FOR FUTURE PROSPERITY, THEN IT IS RIGHT -- IN PRINCIPLE -- TO JOIN.

MR. BROWN THEN OUTLINED A SET OF ECONOMIC TESTS TO DECIDE WHETHER IT IS APPROPRIATE FOR BRITAIN TO JOIN. THESE INCLUDE WHETHER BRITAIN'S BUSINESS CYCLE HAS CONVERGED WITH THAT OF OTHER EUROPEAN COUNTRIES AND WHETHER JOINING A SINGLE CURRENCY WOULD BE GOOD FOR BRITISH JOBS.

HE TOLD BRITISH LAWMAKERS VITAL AREAS OF THE ECONOMY ARE NOT YET READY FOR ENTRY AND MUCH REMAINS TO BE DONE.

BRITISH MEMBERSHIP OF SINGLE CURRENCY IN 1999 COULD NOT MEET THE TEST AND THEREFORE IS NOT IN THE COUNTRY'S ECONOMIC INTEREST. THERE IS NO PROPER CONVERGENCE BETWEEN THE BRITISH AND OTHER EUROPEAN ECONOMIES NOW. TO TRY TO JOIN NOW WOULD BE TO ACCEPT A MONETARY POLICY WHICH WOULD SUIT OTHER EUROPEAN ECONOMIES, BUT NOT OUR OWN. WE WILL THEREFORE BE NOTIFYING OUR EUROPEAN PARTNERS -- IN ACCORDANCE WITH THE MAASTRICHT TREATY -- THAT WE WILL NOT SEEK MEMBERSHIP OF THE SINGLE CURRENCY ON THE FIRST OF JANUARY 1999.

IN HIS SPEECH TO PARLIAMENT, MR. BROWN SAID IT WOULD NOT BE REALISTIC TO MAKE ANY DECISION ABOUT ENTERING A SINGLE EUROPEAN CURRENCY DURING THE LIFETIME OF THIS PARLIAMENT -- EFFECTIVELY PUTTING OFF ANY DECISION UNTIL THE YEAR 2002.

HE DID NOT REJECT JOINING AFTER THAT.

IN ORDER TO GIVE OURSELVES A GENUINE CHOICE IN THE FUTURE, IT IS ESSENTIAL THAT GOVERNMENT AND BUSINESS PREPARE INTENSIVELY DURING THIS PARLIAMENT, SO THAT BRITAIN WILL BE IN A POSITION TO JOIN A SINGLE CURRENCY -- SHOULD WE WISH TO EARLY IN THE NEXT PARLIAMENT.

MR. BROWN'S SPEECH WAS MEANT TO END THE CONFUSION SURROUNDING THE LABOUR GOVERNMENT'S POSITION ON THE SINGLE CURRENCY -- CONFUSION FUELED BY CONTRADICTORY STATEMENTS DURING THE PAST TWO WEEKS FROM OFF-THE-RECORD BRIEFINGS BY FINANCE MINISTRY OFFICIALS.

SOME OPPOSITION CONSERVATIVE PARTY OFFICIALS SAID MR. BROWN'S SPEECH DID NOTHING TO SET THE RECORD STRAIGHT ON EUROPE. ONE OFFICIAL SAID THE LABOUR PARTY'S POLICY ON THE SINGLE EUROPEAN CURRENCY REMAINS AS MUDDLED AS EVER. (SIGNED)
NEB/ADEN/RAE
27-Oct-97 1:20 PM EST (1820 UTC)
NNNN
Source: Voice of America

[02] EURO STOCKS (S UPDATE) BY JACK HUIZENGA (LONDON)

INTRO: STOCK PRICES IN EUROPE FELL SHARPLY MONDAY. V-O-A'S JACK HUIZENGA HAS THE CLOSING MARKET REPORT FROM LONDON.

TEXT: THE DROP IN EUROPE FOLLOWED ANOTHER BROAD DECLINE IN ASIA AND A SHARP DROP AT THE OPENING ON WALL STREET. IN ADDITON, TRADERS IN BRITAIN WERE JITTERY AS THEY AWAITED A SPEECH BY BRITAIN'S FINANCE MINISTER THAT RULED OUT JOINING A SINGLE EUROPEAN CURRENCY UNTIL EARLY IN THE NEXT CENTURY.

THE BIGGEST DROP WAS IN FRANKFURT. THE DAX-30 INDEX ENDED THE FLOOR TRADING DAY OFF ALMOST 172 POINTS, MORE THAN FOUR PERCENT OF THE FRANKFURT MARKET'S TOTAL VALUE. PRICES CONTINUED DOWN IN LATER COMPUTERIZED TRADING. IN PARIS, THE CAC-40 INDEX WAS DOWN 79 POINTS, TWO-AND-EIGHT-TENTHS PERCENT.

AND IN LONDON, THE FOOTSIE-100 INDEX CLOSED OFF MORE THAN 129 POINTS, ABOUT TWO-AND-SIX-TENTHS PERCENT.

ON THE LONDON CURRENCY EXCHANGE, THE U-S DOLLAR WAS OFF SHARPLY AGAINST THE BRITISH POUND. IT ALSO LOST VALUE AGAINST THE JAPANESE YEN AND THE GERMAN MARK. (SIGNED)
NEB/JWH/MMK
27-Oct-97 1:17 PM EST (1817 UTC)
NNNN
Source: Voice of America

[03] MONDAY'S EDITORIALS BY ANDREW N. GUTHRIE (WASHINGTON)

INTRO: THE VISIT OF CHINA'S PRESIDENT JIANG ZEMIN TO THE UNITED STATES IS DRAWING CONSIDERABLE ATTENTION IN THE EDITORIAL COLUMNS THIS MONDAY. OTHER TOPICS OF INTEREST INCLUDE: REFORMING THE INTERNAL REVENUE SERVICE; THE REFLECTIONS OF POL POT; IRAQ'S INTRANSIGENCE; AND THE FIGHT OVER IMMIGRATION RULES. NOW, HERE IS __________________ WITH A CLOSER LOOK IN TODAY'S EDITORIAL DIGEST.

TEXT: THE VISIT OF THE CHINESE HEAD OF STATE ELICITS THIS COMMENT FROM MONDAY'S "PHILADELPHIA INQUIRER."

VOICE: "IT'S MORE THAN TEN YEARS SINCE A CHINESE LEADER VISITED AMERICA, AND 18 YEARS SINCE DENG XIAOPING DONNED A COWBOY HAT IN HOUSTON. THIS TIME, HUMAN-RIGHTS DEMONSTRATORS THREATEN TO DOG [FOLLOW CLOSELY] PRESIDENT JIANG AS HE VISITS THE LIBERTY BELL AND HARVARD, AND HIS VISIT HAS STIRRED ARGUMENT ABOUT WHETHER AMERICA SHOULD TRY TO 'ENGAGE' OR TO CONTAIN BEIJING. IF THIS SUMMIT ACHIEVES ANYTHING, IT SHOULD PUT THAT ARGUMENT TO REST. AMERICA CAN'T, NOR SHOULD IT TRY, TO CONTAIN A COUNTRY AS HUGE AS CHINA, POISED TO BECOME A GREAT POWER. .....[OPT] THIS SUMMIT ISN'T ABOUT WHETHER JIANG ZEMIN IS WARM AND CUDDLY, BUT ABOUT WHETHER AMERICA CAN ESTABLISH A CORDIAL BUT FRANK RELATIONSHIP WITH CHINA. IN THE LONG RUN, THAT KIND OF DIALOGUE MIGHT BEAR VARIED FRUIT."

TEXT: "USA TODAY" SAYS THAT WHILE CHINA'S ECONOMY CONTINUES TO GROW, PROGRESS IN OTHER AREAS IMPORTANT TO THE UNITED STATES IS MINIMAL.

VOICE: "ARMS CONTROL. CHINA LAST WEEK PROMISED TO HALT TROUBLING CRUISE MISSILE SALES TO IRAN, SETTING THE STAGE FOR THE SUMMIT. EXPECTATIONS ARE THAT [MR.] JIANG WILL OFFER FURTHER ASSURANCES THAT BEIJING WILL ALSO CUT OFF NUCLEAR HELP TO TEHRAN. BUT BOTH MAY HAVE LESS TO DO WITH REFORM THAN WITH CHINA'S DESIRE TO BUY U.S.-MADE NUCLEAR REACTORS FOR BURGEONING ENERGY NEEDS. .... ON HUMAN RIGHTS, THE STORY REMAINS DISMAL. BUT [PRESIDENT] CLINTON PROMISES TO PUSH THE ISSUE THIS WEEK WITH [MR.] JIANG. THAT CONVERSATION IS POSSIBLE ONLY BECAUSE OF ENGAGEMENT, WHICH OFFERS MANY LEVERS FOR CHANGE. .... IN CONGRESS, A BIPARTISAN MAJORITY HAS CONCLUDED, ALONG WITH [PRESIDENT] CLINTON, THAT U-S INTERESTS ARE BEST SERVED BY ENGAGING RATHER THAN ENRAGING CHINA. THEY'RE RIGHT."

TEXT: DOMESTICALLY, THE CONTINUING EFFORT TO REFORM THE FEDERAL AGENCY THAT COLLECTS TAXES, THE INTERNAL REVENUE SERVICE [I-R-S], CONTINUES TO DRAW COMMENT. "THE CHRISTIAN SCIENCE MONITOR" WANTS TO KNOW, ASIDE FROM THE POLITICAL POSTURING BY BOTH REPUBLICANS AND DEMOCRATS, WHAT THE CHANGES ARE LIKELY TO ACHIEVE.

VOICE: "ONE MAJOR PLANK WILL SHIFT THE BURDEN OF PROOF FROM THE INDIVIDUAL (THOUGH NOT THE CORPORATE) TAXPAYER TO THE IRS WHEN TAX-PAYMENT DISPUTES GO TO COURT. [HOUSE WAYS AND MEANS COMMITTEE] CHAIRMAN [BILL] ARCHER HAS PROCLAIMED THAT TAXPAYERS SHOULD HAVE AT LEAST AS MANY RIGHTS AS CRIMINALS, WHO HEAD TO COURT WITH A PRESUMPTION OF INNOCENCE. IN FACT, HOWEVER, ONLY SOME 15-HUNDRED TAX-PAYMENT CASES REACH THE COURTS EACH YEAR, OUT OF ABOUT TWO MILLION YEARLY TAX AUDITS BY THE I-R-S. .... ANOTHER BIG REFORM ITEM, FORMATION OF AN INDEPENDENT BOARD TO OVERSEE THE I-R-S, COULD PROVE WEIGHTIER. A COMPLAINT AGAINST THE AGENCY HAS BEEN INSULAR, INEFFICIENT MANAGEMENT.... BUT BLATANT MISUSE OF POWER, AS BROUGHT TO LIGHT IN THE SENATE HEARINGS, IS RARE.... THE BIGGEST THREAT TO THAT PUBLIC ACCEPTANCE OF TAXPAYING DUTIES IS THE EVER-SPROUTING COMPLEXITY OF THE TAX CODE."

TEXT: TURNING AGAIN TO ASIAN ISSUES, "THE SUN" IN BALTIMORE FINDS IT DIFFICULT TO BELIEVE THAT AGING CAMBODIAN COMMUNIST GUERRILLA LEADER POL POT, NOW IMPRISONED BY SOME OF HIS OWN FORCES AND WIDELY BLAMED FOR THE DEATHS OF MORE THAN A MILLION PEOPLE DURING A BLOODY REIGN IN THE 1970'S, SAYS HIS "CONSCIENCE IS CLEAR."

VOICE: "WE DON'T KNOW HOW POL POT DEFINES SAVAGE BEHAVIOR, OR THE WORLD EVIL, BUT IN OUR BOOK THE DESTRUCTION OF CAMBODIAN SOCIETY, THE KILLING FIELDS OF A MISGUIDED AGRARIAN REVOLUTION, THE VICIOUSNESS THAT DECREED THE DEATHS OF EVERY EDUCATED PERSON OR EVEN EVERY PERSON WITH GLASSES -- THOSE ACTION WERE BOTH SAVAGE AND EVIL."

TEXT: AS REGARDS THE MIDDLE EAST, TODAY'S "LOS ANGELES TIMES" IS CONCERNED ABOUT THE CONTINUING INTRANSIGENCE TOWARD UNITED NATIONS WEAPONS INSPECTORS BY IRAQ, AND THE LATEST REPORT OF OBSTRUCTION BY THE CHIEF INSPECTOR RICHARD BUTLER.

VOICE: "THAT REPORT SHOULD HAVE SET OFF ALARM BELLS IN THE SECURITY COUNCIL AND LED TO TOUGHER MEASURES AGAINST SADDAM HUSSEIN'S REGIME. IT HAS NOT, CHIEFLY BECAUSE CHINA, FRANCE AND RUSSIA, WHICH ALL HAVE VETO POWER, AND EGYPT, WHICH HOLDS A ROTATING SEAT ON THE COUNCIL, INSISTED ON TAKING A SOFTER APPROACH THAN THE UNITED STATES, BRITAIN AND EIGHT OTHER COUNCIL MEMBERS WANTED.... THE CONSEQUENCES OF IRAQI CHEATING COULD ONE DAY PROVE HORRIFYING. AN IRAQ ARMED WITH BIOLOGICAL WEAPONS AND THE MISSILES TO DELIVER THEM WOULD ONCE AGAIN MAKE SADDAM HUSSEIN A REGIONAL MENACE. IRAQ'S DEFEAT IN 1991 WAS SUPPOSED TO HAVE ENDED THAT THREAT. TIME MAY PROVE THAT IN FACT IT DID NOTHING MORE THAN TEMPORARILY SUSPEND IT."

VOICE: LASTLY, "THE WASHINGTON POST" WONDERS ABOUT THE LATEST TIGHTENING OF THE COUNTRY'S IMMIGRATION RULES.

VOICE: "THE LATEST SIGN OF A NATIONAL TIGHTENING ON IMMIGRATION IS THE ISSUANCE OF FEDERAL REGULATIONS IMPOSING NEW MINIMUM-INCOME AND FINANCIAL-SUPPORT REQUIREMENTS ON THE SPONSORS OF IMMIGRANTS. THE REGULATIONS PARTICULARLY AFFECT THE SENSITIVE MATTER OF THE REUNIFICATION OF FAMILIES SEPARATED BY THE AMERICAN BORDER. SPONSORS HAVE LONG HAD TO PLEDGE TO SUPPORT ARRIVING RELATIVES.... BUT ... THESE PLEDGES WERE NOT LEGALLY ENFORCEABLE. NOW THEY ARE ENFORCEABLE: MOREOVER, THE FINANCIAL STANDARDS ARE TOUGHER TOO, SPONSORS MUST PROVE THEIR INCOME IS AT LEAST 25 PERCENT OVER THE POVERTY LINE ( 20-THOUSAND DOLLARS FOR A HOUSEHOLD OF FOUR) AND MUST PROMISE TO KEEP UP SUPPORT UNTIL THE ARRIVING IMMIGRANT HAS WORKED TEN YEARS OR BECOME A CITIZEN. .... THE NEW RULES MAY BE POLITICALLY LOGICAL, BUT THEY ARE GOING TO HAVE A ROUGH EFFECT ON MANY PEOPLE'S LIVES."

TEXT: ON THAT NOTE, WE CONCLUDE THIS BRIEF SAMPLING OF TODAY'S EDITORIALS IN THE U-S PRESS.
NEB/ANG/MMK
27-Oct-97 10:08 AM EST (1508 UTC)
NNNN
Source: Voice of America

[04] MONTENEGRO VOTE (S ONLY) BY ART CHIMES (PRAGUE)

INTRO: VOTERS IN THE YUGOSLAV REPUBLIC OF MONTENEGRO APPARENTLY HAVE ELECTED A MODERATE REFORMIST AS PRESIDENT. V-O-A CORRESPONDENT ART CHIMES REPORTS THE APPARENT WINNER WAS SUPPORTED BY THE WEST.

TEXT: YUGOSLAVIA'S TANJUG NEWS AGENCY SAYS UNOFFICIAL RESULTS WITH 93-PERCENT OF THE VOTE COUNTED GIVE THE CHALLENGER, PRIME MINISTER MILO DJUKANOVIC, VICTORY OVER INCUMBENT PRESIDENT MOMIR BULATOVIC, WHOSE CAMPAIGN CONCEDED DEFEAT

THE APPARENT LOSERS ARE NOT JUST MR. BULATOVIC BUT ALSO YUGOSLAV PRESIDENT SLOBODAN MILOSEVIC, WHO HAD SUPPORTED HIM.

INCOMING PRESIDENT DJUKANOVIC HAD CAMPAIGNED FOR MORE INDEPENDENCE FOR MONTENEGRO AND CRITICIZED MR. MILOSEVIC AND HIS POLICIES.

THE TWO CANDIDATES IN MONTENEGRO HAD BEEN POLITICAL ALLIES, BUT SPLIT WHEN PRESIDENT BULATOVIC REFUSED TO SUPPORT EFFORTS BY MR. DJUKANOVIC TO INTRODUCE WESTERN-STYLE REFORMS TO MONTENEGRO.

MONTENEGRO IS PART OF FEDERAL YUGOSLAVIA, ALONG WITH SERBIA. BUT SERBIA DOMINATES THE FEDERATION, WITH 15-TIMES MORE PEOPLE AND A DOMINANT PLACE IN THE YUGOSLAV ECONOMY. (SIGNED).
NEB/ART/JWH
20-Oct-97 5:07 AM EDT (0907 UTC)
NNNN
Source: Voice of America

[05] N-Y ECON WRAP (S & L) BY MAX RUSTON (NEW YORK)

INTRO: MONDAY WAS A DAY OF VOLATILITY, HEAVY VOLUME AND HEAVY LOSSES ON THE NEW YORK STOCK EXCHANGE -- AS THE DOW JONES INDUSTRIAL AVERAGE REGISTERED ITS LARGEST-EVER SINGLE-DAY POINT DECLINE. V-O-A'S MAX RUSTON HAS MORE FROM NEW YORK.

TEXT: STOCKS IN EVERY SECTOR FELL SHARPLY IN THE DECLINE, WHICH BROKERS SAY WAS TRIGGERED BY HONG KONG'S SIX PERCENT DROP IN MONDAY TRADING. TECHNOLOGY COMPANIES WERE THE HARDEST HIT. HEALTH AND DRUG STOCKS ALSO FELL SHARPLY.

THE DOW JONES INDUSTRIAL AVERAGE FELL 554 POINTS -- MORE THAN SEVEN PERCENT -- CLOSING AT 71-HUNDRED-61. THE BROADER STANDARD AND POORS 500 INDEX ALSO DROPPED ABOUT SEVEN PERCENT -- 64 POINTS TO 878.

TRADING HALTS WERE TRIGGERED TWICE DURING THE DAY -- FIRST WHEN WHEN THE DOW DROPPED 350 POINTS, AND THEN AGAIN 20 MINUTES LATER WHEN ITS DECLINE TOTALED 550 POINTS.

IT WAS THE FIRST TIME THOSE CURBS HAVE BEEN TRIGGERED SINCE THEIR INCEPTION AFTER THE 1987 STOCK MARKET CRASH.

CURRENCY PROBLEMS IN EAST ASIA HAVE TRIGGERED DROPS IN MOST MAJOR MARKETS AROUND THE WORLD, PARTICULARLY IN THE UNITED STATES AND LATIN AMERICA.

MANY INVESTORS ARE CONCERNED THE TROUBLES IN ASIA WILL DAMAGE PROFITS FOR U-S TECHNOLOGY FIRMS. TECHNOLOGY STOCKS HAVE ALSO BEEN WEIGHED DOWN BY FORECASTS OF LOWER EARNINGS IN 1998.

BUT ANALYSTS SAY ASIAN CURRENCY TROUBLES ARE NOT ENTIRELY TO BLAME FOR THE DECLINE IN U-S MARKETS. THEY SAY THERE HAS BEEN GROWING CONCERN THAT U-S SHARE PRICES HAVE BEEN OVERPRICED, FOLLOWING THREE YEARS OF EXCEPTIONAL GAINS. THEY SAY THE LATEST SELL-OFF WAS FUELED BY PROFIT-TAKING AMONG INVESTORS WHO HAVE RIDDEN THE STOCK MARKET UP DURING THE LAST THREE YEARS.

BUT SOME EXPERTS SAY THEY BELIEVE THE SELL-OFF IS UNWARRANTED. ED YARDENI IS CHIEF ECONOMIST AT DEUTSCHE MORGAN GRENFELL.

I THINK THERE WILL BE A REBOUND HERE IN THE MARKET. FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IS GOING TO TESTIFY BEFORE CONGRESS ON WEDNESDAY AND I HAVE GOT TO BELIEVE HE IS REWRITING HIS SPEECH RIGHT NOW AND IT WILL BE SOMEWHAT MARKET-FRIENDLY.

SOME ANALYSTS SAY THEY BELIEVE THE ECONOMIC FUNDAMENTALS BOTH IN THE UNITED STATES AND HONG KONG REMAIN STRONG, INDICATING THE CORRECTION MAY BE NEAR ITS BOTTOM. (SIGNED) NEB/NY/MPR/LSF/RRM
27-Oct-97 4:54 PM EST (2154 UTC)
NNNN
Source: Voice of America

Voice of America: Selected Articles Directory - Previous Article - Next Article