The Week January 23-29

By Christopher John Farley, Sophfronia Scott Gregory, Eugene Linden, Michael Quinn, Alain L. Sanders and Sidney Urquhart

NATION

The Main Address

His voice was raspy from practice, but President Clinton delivered what was generally seen as an effective State of the Union address. Riding the momentum of near 60% approval ratings, the President outlined an ambitious -- and not altogether surprising -- agenda for the coming congressional session. At the top of his list: health care, welfare reform, crime, education and jobs. Clinton also vowed, read-my-lips style, to veto any health-care bill that doesn't guarantee universal coverage. Senate Minority Leader Bob Dole, delivering the not altogether surprising G.O.P. response, said the President was exaggerating the extent of the nation's health-care problem and urged the White House to be even tougher on crime.

Earthquake Aftermath

Amid aftershocks and homelessness, residents of the Los Angeles area tried to achieve some sense of normality just one week after the Jan. 17 earthquake that killed 57 people. Schools reopened and highways were on the mend while more than 179,000 residents applied for government aid. In Washington, President Clinton requested a $6.6 billion aid package for the victims and promised the money would not be held up by federal budget battles.

You Say Goodbye, I Say Hello

The White House's revolving door is spinning again, causing new headaches for an Administration with a spotty hiring record. In: a new Pentagon head, Deputy Defense Secretary William Perry. Chosen by President Clinton to succeed Les Aspin, the widely respected Perry steps in for Bobby Ray Inman, who abruptly withdrew his candidacy two weeks ago. Out: the second highest official in the Justice Department, Deputy Attorney General Philip Heymann, who resigned after citing "chemistry" problems with Attorney General Janet Reno.

A Blow for Abortion Activists

In a unanimous decision, the Supreme Court ruled that abortion clinics may use the Racketeer Influenced and Corrupt Organizations Act (RICO) to sue pro-life activists. The clinics have brought several cases against antiabortion groups, hoping to recoup funds for damage done by protesters.

Soon Open for Business: Nam

The Senate took steps to encourage the end of the 19-year economic embargo against Vietnam, passing a resolution urging the President to lift the ban and allow U.S. businesses to take advantage of Vietnam's growing economy. The White House is expected to do so soon.

Patriots to South Korea?

The ongoing arms crisis with North Korea, which refuses to allow inspections of its nuclear facilities, has prompted the Clinton Administration to signal its intention to send Patriot missile batteries to South Korea. The commander of U.S. forces there requested the missiles in light of Pyongyang's threat to suspend the Korean peninsula armistice if the U.S. pushes for economic sanctions.

Packwood Loses Diary Suit

A federal court ruled that Senator Bob Packwood must hand over all personal diaries requested by a Senate committee investigating sexual harassment charges against him. He plans to appeal.

Ollie on the Campaign Trail

After months of campaigning, retired Marine Lieut. Colonel Oliver North officially announced his bid for the Republican nomination for U.S. Senator from Virginia. Should he win the seat, North would be serving in the very body he lied to during the Iran-contra affair.

An Admission from Tonya

Olympic ice skater Tonya Harding called a press conference to confess that she knew more about the attack on her rival Nancy Kerrigan than she had previously admitted. Harding now says she learned after the fact that "people close to me" were involved, though she failed to report her knowledge to authorities. The admission came after reports that Harding's ex-husband, who has been arrested in the case, was cutting a deal that would implicate her. The U.S. Figure Skating Association has appointed a panel to investigate Harding's involvement and may yet remove her from the Olympic team.

Jacko Settles

In a move upsetting to both fans and detractors, Michael Jackson has agreed to settle out of court the civil suit brought against him for having allegedly molested a 14-year-old boy. The lawyers announcing the settlement refused to give details, but reports of how much Jackson's accuser will receive have ranged from $10 million to $50 million. A Los Angeles district attorney says the criminal investigation against Jackson is still ongoing. Although the settlement apparently doesn't preclude the boy from testifying at a trial, he is not expected to do so.

WORLD

Whither Russian Reform?

Despite personal pleas from Russian President Boris Yeltsin to stay on, Finance Minister Boris Fyodorov insisted for the third time in a week that his resignation be accepted -- and this time it was. Fyodorov, a young architect of Russia's market reforms, bitterly declared that his country's economy had fallen into the hands of "Red managers with a lifeless and incompetent strategy." His departure underscores the growing influence of Prime Minister Victor Chernomyrdin, who supports massive subsidies of inefficient industrial and agricultural sectors and who opposes the stringent anti-inflationary measures that the reformers -- and Washington -- advocate.

Whither Japanese Reform?

Prime Minister Morihiro Hosokawa, who had pledged to enact stringent political reforms, was forced into a last-minute compromise with the opposition Liberal Democrats in order to preserve his shaky government. The agreement, which was approved by the parliament, includes a plan to limit corporate contributions to politicians. Hosokawa had sought to ban them outright.

Fence Mending in Mexico

Mexican President Carlos Salinas visited the state of Chiapas, where an uprising occurred last month, to hear the grievances of nearly 300 peasant leaders. Although not directly involved in the rebellion, the villagers nevertheless repeated the insurgents' demands for land redistribution and an end to discrimination against the state's large Maya population. Salinas offered some food and educational assistance. Meanwhile, a forensic pathologist reported that five guerrillas had almost certainly been murdered by government troops.

Somalis vs. Somalis

As U.S. troops continued to withdraw from Mogadishu, a fierce interclan battle erupted south of the capital, killing at least 13 people. No U.N. forces were involved but the clash was an ominous preview of the violence that is likely to resume after March 31, the deadline for the American pullout.

War of Words

While top officials did gain U.S. support of U.N.-authorized air strikes to relieve Srebrenica and Tuzla, two Bosnian towns besieged by Serbian forces, their talks with Secretary of State Warren Christopher last week yielded little else. After French Foreign Minister Alain Juppe publicly chided Washington for refusing to pressure the Bosnian Muslim forces to accept a negotiated peace, State Department officials pointedly referred to Juppe's "strange moral calculus."

Easing into NATO

Romania became the first country to enter NATO's new Partnership for Peace. The program permits former Soviet bloc countries to participate in joint military exercises with the West, but denies them full political equality and security guarantees.

Waltz on the Wild Side

Austrian President Thomas Klestil, a popular politician whose campaign had stressed old-fashioned family values, announced in Vienna that his wife of 37 years had left him. Why? The President has been conducting a long affair with one of his closest political aides. A looming political crisis was averted when Klestil's office confirmed that his marriage was over and his mistress had requested a posting abroad.

BUSINESS

More Good Economic News

The government reported that economic growth surged to an impressive 5.9% annual rate during the last quarter, pushing the gross domestic product for 1993 to a 2.9% increase over 1992, the best advance in five years.

But Layoffs Persist

The government also released new figures for the cost of labor: it rose a modest 3.5% last year, matching 1992's record low. As if to illustrate the continuing pinch on workers, three more large companies announced major layoffs: Nynex Corp., Scott Paper Co., and Aetna Life and Casualty.

American Express Spin-Off

Completing a retreat from an unsuccessful effort to become a full-service financial supermarket, American Express announced it would spin off its Lehman Brothers investment-banking firm later this year. The move follows the sale of the company's Shearson retail brokerage unit.

Shea & Gould Folds Its Tents

Profitable, prestigious and politically well connected, the New York law firm Shea & Gould nevertheless voted to close down because of "irreconcilable differences" among its 75 squabbling partners. The firm, whose clients included Bear Stearns, the New York Mets and Toys R Us, had been unable to find effective leadership to replace William Shea, who died in 1991, and aging co-founder Milton Gould.

IBM Shows Signs of Recovery

IBM posted its first profits in a year and a half: a modest $382 million in the last quarter of 1993.

SCIENCE

Oops on Acid Rain

According to a study published in the British scientific journal Nature, efforts to reduce the sulfate emissions that cause acid rain have also reduced other industrial emissions that help protect lakes from acid rain.

THE ARTS & MEDIA

Tomorrow's Turkeys Today!

At the 31st annual syndicated-television convention in Miami Beach, producers peddled the programs they hope to place on non-network TV this fall. Bidding ^ to become the next no-last-name-needed talk-show stars were Suzanne, Gordon and Dennis (Somers, Elliott and Prager). Court TV junkies could take heart from a predictable new mini-trend: Court TV-inspired shows, including Judge & Jury, Jones & Jury and I Accuse!