Voice of America, 98-08-28

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

CONTENTS

[01] KOSOVO VIOLENCE (L-ONLY) BY PHILIP SMUCKER (PRISTINA)

[02] THE THIRD WAY/GERMANY BY SUZANNE KELLY (BONN)

[03] TURKEY / MILITARY (L-ONLY) BY AMBERIN ZAMAN (ANKARA)

[04] KURDS / U-S (L ONLY) BY AMBERIN ZAMAN (ANKARA)

[05] RUSSIA / EUROPE BY LAURIE KASSMAN (LONDON)

[06] EURO STOCKS (S ONLY) BY JACK HUIZENGA (LONDON)

[07] NEW ECON WRAP (S&L) BY BRECK ARDERY (NEW YORK)

[08] FRIDAY'S EDITORIALS BY NICK SIMEONE (WASHINGTON)

[01] KOSOVO VIOLENCE (L-ONLY) BY PHILIP SMUCKER (PRISTINA)

INTRO: SERBIAN SECURITY FORCES DISPLAYED EVIDENCE FRIDAY THAT THEY HAVE SEIZED SEVERAL ETHNIC ALBANIAN SEPARATIST POSITIONS IN KOSOVO. A SERB SPOKESMAN NEAR THE CONTESTED TOWN OF BLACE SAID THAT THERE HAD BEEN NO CIVILIAN CASUALTIES. REPORTER PHILIP SMUCKER VISITED THE REGION FRIDAY AND FILED THIS REPORT.

TEXT: SERB OFFICIALS SAID THEY SEIZED SEVERAL HILL POSITIONS FROM ETHNIC ALBANIAN GUERRILLAS FRIDAY.

ON A SERBIAN POLICE TOUR OF THE ROAD SOUTH FROM THE CAPITAL, PRISTINA, YUGOSLAV ARMY TANKS AND BURNED OUT HOMES LINED THE ROAD.

SERBIAN POLICE AND ARMY OFFICIALS SHOWED REPORTERS ABANDONED TRENCHES AND BLOOD-STAINED CLOTHES WHICH THEY CLAIMED HAD BELONGED TO MEMBERS OF THE KOSOVO LIBERATION ARMY, OR K-L-A.

SERBIAN POLICE COLONEL BOZIDAR FILIC SAID THAT THE LATEST SERB OFFENSIVE -- WHICH BEGAN LAST SUNDAY -- IS PUSHING THE K-L-A GUERRILLAS FURTHER FROM THEIR OWN POPULATION BASE.

ALMOST THE WHOLE TERRITORY OF KOSOVO IS NOW UNDER THE CONTROL OF SERBIAN SECURITY FORCES. IN SOME AREAS OF COURSE, THERE IS A CONCENTRATION OF TERRORISTS WHO RUN AWAY FROM OUR OPERATION. THERE WERE NO CIVILIAN CASUALTIES AND THE PEOPLE ARE NOW DIVIDED FROM THE TERRORISTS.

BUT COLONEL FILIC'S CLAIMS THAT CIVILIANS HAVE NOT BEEN KILLED IN KOSOVO'S LATEST ROUND OF FIGHTING ARE CHALLENGED BY NUMEROUS WESTERN AND ALBANIAN REPORTS OF CIVILIANS BEING KILLED BY ARTILLERY AND MACHINE-GUN FIRE. AT LEAST 40 ALBANIANS HAVE BEEN KILLED IN THIS WEEKS' FIGHTING, INCLUDING THREE AID WORKERS AND EIGHT CHILDREN.

THE KOSOVO LIBERATION ARMY SAYS IT IS FIGHTING FOR INDEPENDENCE FROM SERBIAN RULE.

KOSOVO ALBANIAN LEADER IBRAHIM RUGOVA -- WHO HAS NO DIRECT CONTROL OVER THE K-L-A -- CALLED YET AGAIN ON FRIDAY FOR KOSOVO TO BECOME AN INDEPENDENT STATE WITH INTERNATIONAL PROTECTION.

WESTERN DIPLOMATS IN KOSOVO SAY THAT SERB SECURITY FORCES ARE FAILING IN THEIR EFFORTS TO SEPARATE THE K-L-A FROM THE ETHNIC ALBANIAN POPULATION. THEY SAY THAT THE RECENT ROUND OF FIGHTING AND WANTON DESTRUCTION OF HOMES BY THE SERB FORCES HAS ONLY ADDED TO THE HUMANITARIAN DISASTER IN KOSOVO. (SIGNED)
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28-Aug-98 12:02 PM EDT (1602 UTC)
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Source: Voice of America

[02] THE THIRD WAY/GERMANY BY SUZANNE KELLY (BONN)

INTRO: A NEW POLITICAL WAVE IS SWEEPING ACROSS EUROPE, THE IDEA OF AN ALTERNATIVE TO SOCIALISM AND CAPITALISM. AS SUZANNE KELLY EXPLAINS FROM GERMANY, IT IS ENGAGING EUROPE'S MOST INFLUENTIAL LEADERS IN A FRESH DEBATE.

TEXT: IT WAS JUST THREE YEARS AGO THAT EUROPE'S FOUR LARGEST COUNTRIES, GERMANY, FRANCE, BRITAIN, AND ITALY, WERE RULED BY CONSERVATIVE GOVERNMENTS. BUT IF SOCIAL DEMOCRAT GERHARD SCHROEDER HOLDS ON TO HIS THREE TO FIVE POINT LEAD IN THE POLLS OVER GERMAN CHANCELLOR HELMUT KOHL, AND WINS THE SEPTEMBER 27TH NATIONAL ELECTION, IT WILL MARK A FURTHER SIGNIFICANT LEFTWARD DRIFT IN EUROPE'S SOCIAL, ECONOMIC AND POLITICAL LEADERSHIP.

WHAT IS HAPPENING? SCHOLARS AND POLITICIANS ALIKE ARE ATTRIBUTING THESE SHIFTS IN LEADERSHIP TO WHAT THEY SOMETIMES REFER TO AS A "THIRD WAY". IT TRIES TO ROUND OFF THE HARD EDGES OF AMERICAN-STYLE FREE MARKET CAPITALISM AND BORROW FROM DEMOCRATIC SOCIALIST IDEAS. IN THEORY, THE THIRD WAY IS BASED ON A FREE MARKET, WHERE COMPANIES CAN MAKE WHAT THEY WANT, INDIVIDUALS AND BUSINESSES CAN OWN WHAT THEY WANT, BUT THE STATE IS MORE INTRUSIVE WHEN IT COMES TO GUARANTEEING THE WELFARE OF THE SOCIETY.

THE IDEA IS TO PREVENT POVERTY, WHILE ALSO PLACING HEAVY TAXES ON THE WEALTHY. IT WAS A DREAM FOR MANY EAST GERMANS WHEN COMMUNISM COLLAPSED IN 1989. AS HAPPY AS THEY WERE WITH THE FALL OF THE BERLIN WALL, MANY WERE LEARY ABOUT ADOPTING WHAT THEY SAW AS THE CAPITALISM OF AMERICA. MANY HOPED INSTEAD TO CREATE A NEW THIRD WAY SOMEWHERE IN BETWEEN AMERICA'S FLOURISHING CAPITALISM AND THE SOCIALISM THAT PROVIDED THEM WITH FREE HEALTHCARE, AFFORDABLE MASS TRANSIT, AND KEPT THEM EMPLOYED.

BUT WOULD A THIRD WAY OF POLITICAL LEADERSHIP WORK IN GERMANY, A COUNTRY CLOSELY TIED TO WHAT IS KNOWN AS A CRADLE TO GRAVE SOCIAL SAFETY NET? POLITICAL ANALYST AND BONN UNIVERSITY PROFESSOR DIETMAR HERZ SAYS IT MIGHT.

IT DEPENDS ON HOW YOU DEFINE IT. IF YOU WOULD INCLUDE IN SUCH A DEFINITION THE GERMAN WELFARE STATE OF OUR SOCIAL SYSTEM IT PROBABLY WOULD WORK.

MR. HERZ SAYS THAT MR. SCHROEDER'S CAMPAIGN THEME "DIE NEUEMITTE" OR THE "NEW MIDDLE", IS -- EXACTLY -- THIRD WAY POLITICS.

IF I WOULD ASK, FOR EXAMPLE, GERHARD SCHROEDER TO DEFINE THE THIRD WAY, HE PROBABLY WOULD SAY IT'S A MIXTURE OF INNOVATION, REFORMING GERMAN ECONOMY AND MAINTAINING OUR SOCIAL SYSTEM, SO IT INCLUDES BOTH SIDES.

IT APPEARS TO BE THE BEST OF BOTH WORLDS. BUT CRITICS QUESTION WHETHER THE THIRD WAY IS PERHAPS JUST A CLEVER ADVERTISEMENT FOR POLITICIANS EAGER TO TAP INTO A VEIN OF CHANGE.

EVEN MR. HERZ WARNS THAT THE THIRD WAY COULD JUST BE ANOTHER WAY FOR POLITICIANS TO AVOID TELLING VOTERS EXACTLY WHAT THEY STAND FOR. IT COULD BE DIFFICULT IN GERMANY TO CONVINCE VOTERS TO LOOSEN THEIR GRIP ON THE SOCIAL WELFARE SYSTEM THEY CLING TO, EVEN IF THEY DO COMPLAIN ABOUT HIGH TAXES AND HIGH UNEMPLOYMENT AS A RESULT. EVERY GERMAN WORKER RECEIVES SIX WEEKS OF PAID VACATION EACH YEAR, AND THEY TAKE ON AVERAGE ANOTHER FOUR WEEKS OF SICK DAYS OFF PER YEAR. SO FAR, ATTEMPTS TO EVEN MODESTLY TRIM THOSE BENEFITS HAVE MET WIDESPREAD RESISTANCE. BUT SOCIAL DEMOCRATIC PARTY SPOKESMAN MATTHIAS MACHNIG SAYS THAT GERMANS NOW REALIZE THEY THEY MUST EMBRACE A CHANGE.

THE GERMANS KNOW VERY EXACTLY THAT THE FORM OF WELFARE STATE WE HAD UP UNTIL NOW CANNOT GO ON AT THIS LEVEL.

SINCE UNIFICATION, TAXES HAVE BEEN RAISED FOURTEEN TIMES, AND UNEMPLOYMENT HAS MORE THAN DOUBLED. MR. MACHNIG SEES NO OTHER WAY THAN TO EMBRACE THIS THIRD WAY OF THINKING. HE SAYS SOCIAL DEMOCRATS ARE HOPING THAT BY OUSTING THE CONSERVATIVE GOVERNMENTS IN MAJOR EUROPEAN COUNTRIES, THE SOCIALISTS WILL BE ABLE TO COOPERATE MORE CLOSELY IN SOLVING THEIR PROBLEMS TOGETHER.

IF THE SOCIAL DEMOCRATS WIN IN SEPTEMBER IN GERMANY, WE HAVE A GOOD BASE THAT ONE THING THAT IS VERY VERY IMPORTANT FOR EUROPE CAN BE FULFILLED, THAT THE MOST IMPORTANT COUNTRIES CAN WORK TOGETHER ON ONE AIM, TO REDUCE UNEMPLOYMENT AND BRING THEIR ECONOMY AND THEIR WAY OF DEALING WITH ECONOMY, BRINGING THEM TOGETHER AND JUST COORDINATE THEIR WAY OF DEALING WITH THESE PROBLEMS.

ANALYSTS AND ECONOMISTS ARE NOW LOOKING TO GERMANY'S NATIONAL ELECTION ON SEPTEMBER 27TH TO SEE IF VOTERS BETWEEN THE BLACK FOREST AND THE BALTIC SEA ARE, AS CONVINCED AS THEIR POLITICIANS, AS TO THE IMPORTANCE OF THIS NEW SPIRIT OF A THIRD WAY OF POLITICAL LEADERSHIP. (SIGNED)
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27-Aug-98 9:38 PM EDT (0138 UTC)
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Source: Voice of America

[03] TURKEY / MILITARY (L-ONLY) BY AMBERIN ZAMAN (ANKARA)

INTRO: TURKEY'S NEW ARMY CHIEF HAS VOWED TO CONTINUE THE MILITARY BATTLE AGAINST ISLAMIC EXTREMISM. AS AMBERIN ZAMAN REPORTS FROM ANKARA, GENERAL HUSEYIN KIVRIKOGLU MADE THE REMARKS DURING A CEREMONY ON FRIDAY IN A SPEECH BEFORE THE COUNTRY'S PRESIDENT AND PRIME MINISTER.

TEXT: TURKEY'S NEW ARMY CHIEF OF GENERAL STAFF, HUSEYIN KIVRIKOGLU, SAID ISLAMIC FUNDAMENTALISTS WOULD -- IN HIS WORDS -- CONTINUE TO FACE THE TURKISH ARMED FORCES AS THEY DID BEFORE, SHOULD THEY SEEK TO UNDERMINE THE SECULAR STATE.

HIS INAUGURAL ADDRESS FOLLOWS WEEKS OF MEDIA SPECULATION THAT THE NEW ARMY CHIEF WOULD ADOPT A MORE CONCILIATORY APPROACH TO TURKEY'S RESURGENT ISLAMIST POLITICAL MOVEMENT THAN HIS PREDECESSOR, GENERAL ISMAIL HAKKI KARADAYI.

MANY EXPERTS ON TURKEY'S MILITARY DESCRIBE GENERAL KIVRIKOGLU AS A BRILLIANT STRATEGIST AND SAY HE IS LIKELY TO STEP UP THE CAMPAIGN AGAINST ISLAMIC MILITANTS.

GENERAL KIVRIKOGLU'S APPOINTMENT COMES AT A TIME WHEN THE TURKISH MILITARY IS MORE OPENLY INVOLVED IN RUNNING THE COUNTRY THAN AT ANY OTHER SINCE 1980, WHEN IT SEIZED POWER FOR THE THIRD TIME 75 YEARS.

TURKEY'S POWERFUL GENERALS -- WHO ARE CONSTITUTIONALLY EMPOWERED TO DEFEND THE SECULAR STATE -- FORCED TURKEY'S FIRST ISLAMIST PRIME MINISTER, NECMETTIN ERBAKAN,TO STEP DOWN LAST YEAR. HIS PRO-ISLAMIC "WELFARE PARTY" WAS BANNED BY THE CONSTITUTIONAL COURT LAST JANUARY ON CHARGES OF SEEKING TO DERAIL TURKEY'S SECULAR SYSTEM. MR. ERBAKAN WAS ALSO BARRED FROM POLITICS FOR FIVE YEARS ON SIMILAR CHARGES.

YET ACCORDING TO RECENT OPINION POLLS, THE ISLAMISTS -- WHO HAVE REGROUPED AND CALL THEMSELVES THE "VIRTUE PARTY" -- CONTINUE TO BE TURKEY'S MOST POPULAR MOVEMENT AND WILL LIKELY WIN GENERAL ELECTIONS SCHEDULED FOR NEXT APRIL. AGAINST THIS BACKGROUND, MANY PUNDITS HERE QUESTION JUST HOW TURKEY'S NEW ARMY CHIEF WILL RESPOND, SHOULD THE ISLAMISTS RETURN TO POWER. (SIGNED)
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28-Aug-98 12:00 PM EDT (1600 UTC)
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Source: Voice of America

[04] KURDS / U-S (L ONLY) BY AMBERIN ZAMAN (ANKARA)

INTRO: LEADERS OF THE TWO MAIN KURDISH FACTIONS IN NORTHERN IRAQ PLAN TO TRAVEL TO WASHINGTON NEXT MONTH TO MEET WITH SENIOR U-S OFFICIALS. AMBERIN ZAMAN IN ANKARA REPORTS THE TALKS MAY INCLUDE THE FIRST MEETING IN MORE THAN FOUR YEARS BETWEEN THE TWO KURDISH LEADERS -- MASSOUD BARZANI OF THE KURDISTAN DEMOCRATIC PARTY (K-D-P) AND JALAL TALABANI OF THE PATRIOTIC UNION OF KURDISTAN (P-U-K).

TEXT: THE MEETING PLANNED IN WASHINGTON FOR MID-SEPTEMBER IS THE CULMINATION OF MORE THAN FOUR YEARS OF MEDIATING BY THE U-S, BRITISH, AND TURKISH GOVERNMENTS AIMED AT RECONCILING THE TWO GROUPS.

THE TWO KURDISH LEADERS BOTH CONSIDER THEMSELVES THE "TRUE LEADER" OF AN ESTIMATED THREE-MILLION IRAQI KURDS. THEY HAVE NOT MET SINCE THEIR FACTIONS WENT TO WAR IN MAY 1994.

NORTHERN IRAQ HAS BEEN UNDER KURDISH CONTROL EVER SINCE A FAILED KURDISH REBELLION AGAINST IRAQI PRESIDENT SADDAM HUSSEIN IN APRIL 1991 AT THE END OF THE GULF WAR. THAT IS WHEN GULF WAR ALLIES LED BY THE UNITED STATES DECLARED A NO-FLY ZONE OVER NORTHERN IRAQ WHICH IS PATROLLED BY ALLIED WAR PLANES BASED IN SOUTHERN TURKEY.

THE K-D-P AND P-U-K SHARED POWER IN A REGIONAL GOVERNMENT THAT WAS FORMED AFTER ELECTIONS IN 1992. BUT IN MAY 1994, THE TWO PARTIES SUCCUMBED TO TRADITIONAL RIVALRIES AND FACTIONAL FIGHTING BROKE OUT WHICH HAS CLAIMED MORE THAN THREE-THOUSAND LIVES AND LED TO THE DISPLACEMENT OF TENS OF THOUSANDS OF KURDISH CIVILIANS.

THE KURDISH ENCLAVE HAS REMAINED EFFECTIVELY PARTITIONED INTO TWO AREAS, WITH EACH GROUP CONTROLLING PART OF THE REGION. HOSTILITIES PEAKED IN AUGUST 1996 WHEN K-D-P LEADER BARZANI INVITED IRAQI TROOPS TO HELP HIS FORCES DRIVE OUT THE P-U-K FROM THE STRATEGIC KURDISH CITY OF ERBIL.

A SENIOR P-U-K OFFICIAL (LATIF RASHID) TOLD V-O-A THAT RECONCILIATION BETWEEN THE TWO IRAQI KURDISH FACTIONS CAN BE ACHIEVED ONLY IF THE K-D-P AGREES TO A BROAD-BASED KURDISH REGIONAL GOVERNMENT, FREE AND FAIR ELECTIONS, AND A SHARING OF TAX REVENUE FROM NORTHERN IRAQ'S BORDER CROSSING WITH TURKEY THAT IS NOW CONTROLLED BY THE K-D-P.

K-D-P LEADER BARZANI IS EXPECTED TO ARRIVE IN WASHINGTON NEXT WEEK -- HIS FIRST TRIP TO THE AMERICAN CAPITAL IN MORE THAN FIVE YEARS. DURING HIS STAY, HE HOPES TO MEET WITH SECRETARY OF STATE MADELEINE ALBRIGHT AND NATIONAL SECURITY ADVISOR SANDY BERGER. MR. BARZANI WILL STOP FIRST IN TURKEY WHERE HE IS TO MEET WITH TURKISH PRIME MINISTER MESUT YILMAZ, FOREIGN MINISTER ISMAIL CEM AND MEMBERS OF THE TURKISH MILITARY.

WESTERN DIPLOMATS SAY MR. BARZANI'S DECISION TO RETURN TO WASHINGTON AFTER A SIX-YEAR BREAK IS DUE AS MUCH TO DETERIORATING RELATIONS BETWEEN HIS PARTY AND THE IRAQI GOVERNMENT AS TO A GENUINE DESIRE TO REPAIR RELATIONS WITH THE P-U-K.

P-U-K OFFICIALS SAY IT REMAINS UNCLEAR IF P-U-K LEADER TALABANI WILL STOP IN TURKEY ON HIS WAY TO THE UNITED STATES. RELATIONS BETWEEN TURKEY AND THE P-U-K HAVE SOURED OVER MR. TALABANI'S ALLEGED SUPPORT FOR TURKISH KURD REBELS OF THE SEPARATIST KURDISTAN WORKERS PARTY (P-K-K).

THE P-K-K HAS SEVERAL BASES IN KURDISH-CONTROLLED NORTHERN IRAQ. IT USES THE BASES TO LAUNCH CROSS-BORDER ATTACKS AGAINST TURKISH SECURITY TARGETS. THE P-U-K DENIES PROVIDING ARMS AND SHELTER TO THE TURKISH KURD REBEL GROUP, WHICH ALSO HAS HAS BEGUN ATTACKING K-D-P TARGETS, BOTH MILITARY AND CIVLIANS IN NORTHERN IRAQ. (SIGNED)
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28-Aug-98 10:04 AM EDT (1404 UTC)
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Source: Voice of America

[05] RUSSIA / EUROPE BY LAURIE KASSMAN (LONDON)

INTRO: PANIC HAS SPREAD IN WORLD MARKETS AS THE RUSSIAN ECONOMIC CRISIS DEEPENS. HOW WILL EUROPEAN AND OTHER CORE ECONOMIES WEATHER THE STORM? V-O-A CORRESPONDENT LAURIE KASSMAN HAS THAT STORY FROM LONDON.

TEXT: RUSSIA MAY BE A BIG COUNTRY, BUT ECONOMISTS ARE QUICK TO POINT OUT THE ECONOMY IS NOT. EUROPEAN UNION SALES TO RUSSIA ACCOUNT FOR LESS THAN TWO PERCENT OF THE E-U'S TOTAL EXPORTS. STILL, THAT DOES NOT CALM FEARS IN EUROPEAN STOCK MARKETS THAT THE FINANCIAL CRISIS, WHICH ERUPTED A FEW MONTHS AGO IN ASIA, IS TAKING ITS TOLL ON THE WORLD MARKETPLACE.

GERMANY IS AMONG THE MOST EXPOSED IN EUROPE BECAUSE OF ITS TRADE LINKS TO RUSSIA AND EASTERN EUROPE. ECONOMIISTS SAY SPAIN AND ITALY ALSO WILL FEEL SOME PAIN BECAUSE OF THEIR TIES TO LATIN AMERICAN MARKETS WHICH ARE ALREADY REELING FROM THE ASIAN FALLOUT.

KLAUS BAADER IS SENIOR INTERNATIONAL ECONOMIST AT LEHMAN BROTHERS IN LONDON. HE PREDICTS THE STABLE EUROPEAN ECONOMIES WILL WEATHER THE FINANCIAL STORM IF CONFIDENCE IN THE MARKET HOLDS UP.

CONFIDENCE AT LEAST IN FINANCIAL MARKETS ARE SEVERELY RATTLED FROM HERE. IT MAY WELL RATTLE CONSUMER AND BUSINESS CONFIDENCE AND THAT'S WHEN THE REAL MACRO ECONOMIC IMPACT WOULD START TO BE FELT IN EUROPE.

MANY ANALYSTS SAY THE BIG LOSERS ARE THE CREDITORS WHO INVESTED HEAVILY IN RUSSIA ON THE PROMISE OF REFORM.

MR. BAADER SAYS PART OF THE PROBLEM HAS BEEN A LACK OF LEADERSHIP AMONG THE INDUSTRIALIZED NATIONS WHEN IT COMES TO GLOBAL MARKET STRATEGY.

THE GLOBAL ECONOMIC SYSTEM HAS ALSO BEEN RATHER DESERTED BY THE KEY POLICY MAKERS. THE POLICYMAKERS OF THE G-7 CARRY A GREAT DEAL OF RESPONSIBILITY FOR THE RUSSIAN CRISIS. OF COURSE THESE PROBLEMS ARE RUSSIAN PROBLEMS AND THEY NEED TO BE SORTED OUT IN RUSSIA. A TEN- TO 15-BILION-DOLLAR LOAN A FEW WEEKS AGO COULD HAVE STAVED OFF THE CRISIS. BUT THE UNITED STATES DID NOT PROVIDE THE LEADERSHIP. EUROPE DID NOT PROVIDE THE LEADERSHIP. GERMANY WITHIN EUROPE DID NOT PROVIDE THE LEADERSHIP TO DO SOMETHING TO SUPPORT THE FORMER RUSSIAN GOVERNMENT AND THE FINANCIAL CRISIS IN THAT COUNTRY.

ANALYSTS SAY WHAT WORRIES THEM MOST IS THE LACK OF FINANCIAL LEADERSHIP AT A TIME OF INCREASED VULNERABILITY IN THE MARKETPLACE.

AS PANIC GRIPS RUSSIAN CONSUMERS, OFFICIALS OPENLY TALK OF THE SAFER DAYS OF A CENTRALIZED ECONOMY. BUT ANALYSTS SAY CAPITALISM IS NOT TO BLAME. KLAUS BAADER SAYS FOR RUSSIA THERE IS NO TURNING BACK.

CLEARLY THE CENTRALLY-PLANNED ECONOMIES OF EUROPE DID NOT FAIL BECAUSE THEY WERE SUCH WONDERFUL SYSTEMS. THEY FAILED BECAUSE THEY COULD NOT DELIVER. THEY FAILED BECAUSE THEY COULD NOT DELIVER THE GOODS THAT PEOPLE WANT. SO, I DON'T THINK THERE IS ANY HOPE OF RETURNING TO A MORE SOVIET-STYLE ECONOMY IN RUSSIA.

ANALYSTS SAY WHAT IT IS NEEDED NOW IS MORE WESTERN SUPPORT FOR RUSSIAN REFORMS TO KEEP THE SYSTEM FROM COLLAPSING. BUT PROTECTING RUSSIA WILL NOT SOLVE THE PROBLEM. FINANCIAL EXPERTS IN LONDON AND ELSEWHERE POINT TO JAPAN AS THE EPICENTER OF THE GLOBAL TREMOR, AND CALL FOR MORE PRESSURE ON JAPAN'S GOVERNMENT TO SPEED ITS OWN ECONOMIC REFORMS. (SIGNED)
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28-Aug-98 11:21 AM EDT (1521 UTC)
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Source: Voice of America

[06] EURO STOCKS (S ONLY) BY JACK HUIZENGA (LONDON)

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

TEXT: RUSSIA'S FINANCIAL AND POLITICAL CRISIS KEPT EUROPEAN STOCK MARKETS IN WILD GYRATIONS. ALL OF THE EUROPEAN MARKETS ENDED DOWN, SOME MORE THAN TWO PERCENT. BUT STILL, THEY CLOSED WELL ABOVE THEIR LOWS SET EARLY IN THE DAY.

AMONG THE MAJOR EXCHANGES, THE BIGGEST DROP WAS IN LONDON. THE FOOTSIE-100 INDEX CLOSED OFF 119 POINTS, TWO-AND-TWO-TENTHS PERCENT.

IN FRANKFURT, THE DAX INDEX FELL 87 POINTS, ONE-AND-SEVEN-TENTHS PERCENT.

AND IN PARIS, THE CAC-40 INDEX DROPPED 37 POINTS, JUST UNDER ONE PERCENT.

ON THE LONDON CURRENCY EXCHANGE, THE VALUE OF THE U-S DOLLAR ROSE AGAINST THE JAPANESE YEN. BUT IT WAS DOWN SHARPLY AGAINST THE GERMAN MARK AND THE BRITISH POUND. (SIGNED)
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28-Aug-98 1:45 PM EDT (1745 UTC)
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Source: Voice of America

[07] NEW ECON WRAP (S&L) BY BRECK ARDERY (NEW YORK)

INTRO: STOCK PRICES IN THE UNITED STATES WERE DOWN SHARPLY AGAIN TODAY (FRIDAY) ON CONTINUED CONCERNS ABOUT INTERNATIONAL CONDITIONS. V-O-A CORRESPONDENT BRECK ARDERY REPORTS FROM NEW YORK.

TEXT: THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT EIGHT THOUSAND 51, DOWN 114 POINTS OR ONE AND ONE-HALF PERCENT. FOR THE WEEK, THE INDUSTRIAL AVERAGE LOST 482 POINTS OR ALMOST FIVE PERCENT. THE STANDARD AND POOR'S 500 INDEX CLOSED FRIDAY AT ONE THOUSAND 27, DOWN 15 POINTS.

AS ON THURSDAY, INTERNATIONAL ECONOMIC PROBLEMS CONTINUED TO BE THE FOCUS ON WALL STREET, ANALYSTS SAY THE OUTLOOK IN ASIA, RUSSIA AND LATIN AMERICA IS SO UNCERTAIN AT THE MOMENT THAT IT IS HARD FOR MANY TRADERS TO JUSTIFY TAKING RISKS IN STOCKS. FRIDAY'S SESSION WAS NOTABLE FOR THE ABSENCE OF "BARGAIN HUNTING" BUYERS WHO USUALLY ENTER THE MARKET AFTER A BIG SELL-OFF.

MANY ANALYSTS, SUCH AS MARSHALL ACUFF OF THE SOLOMON SMITH BARNEY INVESTMENT FIRM DO NOT EXPECT ANY QUICK RECOVERY IN U-S STOCK PRICES.

THE ISSUES THAT THE MARKET IS FACING RIGHT NOW ARE NOT ONES THAT CAN BE RESOLVED VERY QUICKLY.

BANK AMERICA CORPORATION IS THE SECOND U-S BANK TO REPORT THAT THE RUSSIAN ECONOMIC CRISIS WILL CAUSE IT HUGE LOSSES. BANK AMERICA SAYS IT HAS LOST 220 MILLION DOLLARS SO FAR IN RUSSIA BUT THAT THOSE LOSSES WILL NOT AFFECT ITS PLANNED MERGER WITH THE NATIONS BANK CORPORATION. ON THURSDAY. THE REPUBLIC BANK OF NEW YORK SAID ITS RUSSIAN DEALINGS WOULD WIPE OUT ITS QUARTERLY PROFIT.

THE GOVERNMENT REPORTS AMERICAN CONSUMERS REDUCED THEIR SPENDING IN JULY FOR THE FIRST TIME IN MORE THAN TWO YEARS. ANALYSTS SAY THE DROP WAS LARGELY THE RESULT OF THE DECLINE IN NEW CAR SALES BECAUSE OF THE STRIKES AT GENERAL MOTORS WHICH ENDED IN LATE JULY.

THE TELLABS COMPANY HAS SHARPLY REDUCED THE VALUE OF ITS PROPOSED ACQUISITION OF THE CIENA CORPORATION, A RIVAL TELECOMMUNICATIONS EQUIPMENT MAKER. THAT TAKEOVER, ORIGINALLY WORTH SEVEN POINT ONE BILLION DOLLARS, HAS NOW BEEN CUT TO FOUR POINT SEVEN BILLION FOLLOWING STEEP DECLINES IN BOTH COMPANIES' STOCK.

LAST MINUTE NEGOTIATIONS CONTINUED IN AN EFFORT TO AVOID A STRIKE BY PILOTS AGAINST NORTHWEST AIRLINES, THE FOURTH LARGEST CARRIER IN THE UNITED STATES. PRESIDENT CLINTON HAS THE AUTHORITY TO END A STRIKE QUICKLY BY ORDERING STRIKERS BACK TO WORK. BUT ADMINISTRATION SOURCES SAY THE PRESIDENT IS RELUCTANT TO GET INVOLVED IN THE NORTHWEST DISPUTE.

A STRIKE AGAINST THE U-S PLANT OF JAPAN'S MITSUBISHI MOTORS HAS BEEN AVERTED. UNION AND MANAGEMENT AT THE PLANT, LOCATED IN THE MIDWESTERN STATE OF ILLINOIS, CAME TO AGREEMENT AFTER NEGOTIATIONS WHICH CONTINUED SEVERAL HOURS BEYOND A STRIKE DEADLINE.(SIGNED) NEB/NY/BA/LSF/WDC/PLM
28-Aug-98 6:39 PM EDT (2239 UTC)
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Source: Voice of America

[08] FRIDAY'S EDITORIALS BY NICK SIMEONE (WASHINGTON)

INTRO: THE RESIGNATION OF U-N WEAPONS INSPECTOR SCOTT RITTER, WHO HAS BEEN PART OF THE TEAM SEARCHING FOR BANNED WEAPONS IN IRAQ, HAS AMERICAN NEWSPAPERS CONCERNED ABOUT IRAQ'S INTENTIONS AS WELL AS THE RESOLVE OF THE UNITED STATES AND THE UNITED NATIONS TO KEEP UP PRESSURE ON BAGHDAD. NOW, HERE IS _____________ WITH SOME EXCERPTS FROM TODAY'S EDITORIAL DIGEST.

TEXT: FRIDAY'S NEW YORK TIMES CALLS THE RESIGNATION OF THE TOP AMERICAN WEAPONS INSPECTOR ON THE U-N TEAM THE MOST DRAMATIC WARNING THAT THE CLINTON ADMINISTRATION AND THE UNITED NATIONS ARE ABANDONING THEIR FIRM APPROACH TOWARD SADDAM HUSSEIN. THE TIMES EDITORIALIZES:

VOICE: THE UNITED STATES HAS BLOCKED AGGRESSIVE INSPECTIONS WHILE IT TRIES TO BUILD A CONSENSUS FOR FIRM ACTION IN THE U-N SECURITY COUNCIL. BUT PROLONGED DELAY IS DANGEROUS, GIVING IRAQ PRECIOUS TIME TO BUILD BIOLOGICAL OR CHEMICAL WEAPONS WITHOUT BEING DETECTED. AGGRESSIVE INSPECTIONS MUST BE RESUMED PROMPTLY AND IF ADDITIONAL MILITARY FORCES ARE NEEDED IN THE GULF REGION TO LEND CREDIBLE SUPPORT TO THE INSPECTORS, THEY NEED TO BE PROVIDED.

TEXT: THE WASHINGTON POST POINTS OUT THAT 22 DAYS HAVE NOW PASSED WITHOUT U-N TEAMS CARRYING OUT WEAPONS INSPECTIONS IN IRAQ. THE PAPER RAISES THE POSSIBILITY THAT PRESIDENT SADDAM COULD BE USING THE TIME TO REBUILD HIS ARSENAL OF BANNED WEAPONS.

VOICE: THIS IS A DICTATOR WHO HAS USED CHEMICAL WEAPONS ON HIS OWN PEOPLE, AND ON HIS ENEMIES, AND WHO WOULD USE THEM AGAIN. YET HIS DEFIANCE OF THE UNITED STATES AND THE UNITED NATIONS GOES UNCHALLENGED. ON TUESDAY, ONE OF THE MOST TENACIOUS U-N INSPECTORS, SCOTT RITTER, RESIGNED RATHER THAN PARTICIPATE IN WHAT HE CALLED "THE ILLUSION OF ARMS CONTROL."

TEXT: CLOSER TO HOME, THE WASHINGTON TIMES NEWSPAPER IS REACTING TO THURSDAY'S ANNOUNCEMENT BY ATTORNEY GENERAL JANET RENO THAT THE JUSTICE DEPARTMENT IS BEGINNING A PRELIMINARY 90-DAY REVIEW OF WHETHER VICE PRESIDENT GORE MISLED INVESTIGATORS LOOKING INTO DEMOCRATIC PARTY FUND-RAISING ACTIVITIES PRIOR TO THE 1996 ELECTIONS. THE CONSERVATIVE NEWSPAPER, ECHOING COMMENTS BY SOME CONSERVATIVE LAWMAKERS IN CONGRESS, ACCUSES THE ATTORNEY GENERAL OF STONEWALLING.

VOICE: BY ANY OBJECTIVE STANDARD, AN INDEPENDENT PROSECUTOR SHOULD HAVE BEEN APPOINTED WELL OVER A YEAR AGO. IT HAS BEEN ESTABLISHED THAT MILLIONS OF DOLLARS FROM OVERSEAS ILLEGALLY POURED INTO THE DEMOCRATIC PARTY'S TREASURY AND THE CLINTON/GORE CAMPAIGN. INDEED, F-B-I DIRECTOR LOUIS FREEH AND CHARLES LABELLA, WHOM MISS RENO HAND PICKED TO BE CHIEF PROSECUTOR OF HER DEPARTMENT'S CAMPAIGN FINANCE TASK FORCE, HAVE IMPLORED HER TO SEEK AN INDEPENDENT COUNSEL TO INVESTIGATE WHAT THEY BELIEVE TO BE A WIDESPREAD CONSPIRACY TO EVADE THE NATION'S ELECTION LAWS.

TEXT: THAT'S A SAMPLING OF COMMENT FROM THE EDITORIAL PAGES OF TODAY'S U-S PRESS.
NEB/NJS/KL
28-Aug-98 1:08 PM EDT (1708 UTC)
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Source: Voice of America

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