The Week March 6-12

By Philip Elmer-DeWitt, Christopher John Farley, Lina Lofaro, Michael Quinn, Jeffery C. Rubin, Alain L. Sanders, Sidney Urquhart

NATION

Gray Eminence to the Rescue

Lloyd Cutler, venerable pillar of the Washington establishment, was tapped by President Clinton to take control of the increasingly ominous Whitewater affair as interim White House counselor. Cutler, who held the same position for Jimmy Carter, emphasized that he would take the job for no more than 130 days and would serve without pay.

More Whitewater

At a White House press conference the President lashed out at questions about the role of Hillary Rodham Clinton in the affair, saying, "I have never known a person with a stronger sense of right and wrong in my life -- ever." As the first three of six subpoenaed White House officials appeared before a grand jury, Republican Senators appeared willing to let the investigation continue for several months before demanding public hearings.

Oh, Pretty Parody

A unanimous Supreme Court opinion has broadened the application of "fair use" in copyright law. Writing for the court in favor of the rap group 2 Live Crew, which had produced a raunchy version of the 1964 classic Oh, Pretty Woman, Justice David Souter said parody "can provide social benefit by shedding light on an earlier work and, in the process, creating a new one."

4 Sale, Cheap! Satellite Pix!

* After months of debate among intelligence agencies, the Pentagon and the Commerce Department, the Clinton Administration announced that it will permit commercial firms to market advanced spy-satellite technology to customers around the world. Some experts fear the move could compromise national security.

The High Cost of Writing

The U.S. Postal Board of Governors approved a 10.3% increase in rates, a move that would boost the price of mailing a letter to 32 cents.

Butting Out

In a decree that will affect 2.6 million uniformed and civilian personnel, the Defense Department banned smoking from the military workplace. And Maryland became the first state to stub out smoking in all workplaces -- including bars, restaurants and convention facilities as well as offices. In Washington, 20,000 angry smokers and tobacco-industry workers demonstrated against an Administration proposal to raise the federal excise tax from 24 cents a pack to 99 cents.

Throwing Away the Key

The controversial sentencing bill known as "three strikes, you're out" was signed into law by California Governor Pete Wilson. Enacted in the wake of a national furor over the kidnapping and murder of 12-year-old Polly Klaas, allegedly by a parolee, the measure would lock up third-time violent felons for life without parole.

Parade Rest

The veterans group that sponsors Boston's St. Patrick's Day parade said it is canceling this year's march, rather than accede to a ruling by the Massachusetts Supreme Judicial Court that a gay group be allowed to join the parade.

Tonya Again

Tonya Harding is free to compete in the world championships in Chiba, Japan, next week. A hearing before a panel of the U.S. Figure Skating Association that might have ended her skating career was postponed by a federal judge, who said Harding's lawyers had not had enough time to prepare her case.

America's Cup Sex Change

For nearly 150 years, the grueling America's Cup sailing competition has generally been a men-only event. Now the reigning champion, American Bill Koch, has turned over his string of yachts, his coaching and design expertise, and several million dollars to an all-female team. Koch's syndicate has already signed up nine women for his 1995 crew, including five U.S. Olympic medalists.

Ol' Blue Eyes Swoons

Frank Sinatra collapsed on a Richmond, Virginia, stage while performing his trademark My Way. Complaining of the heat, the singer fell to the floor "like a sack of stones," recalled a concert-goer. He is recovering in California.

WORLD

Massacre Inquiry

During an official Israeli inquiry, the regional commander in charge of West Bank forces said Jewish settler Baruch Goldstein's killing spree in the Tomb of the Patriarchs could have been prevented. Five of the six men who were supposed to be on guard inside the mosque -- including three who overslept -- were missing.A police superintendent testified that Israeli security forces were forbidden to fire on Jewish settlers, even if the settlers were shooting Palestinians. In that case, he said, "you take cover and wait for the clip to finish, then stop him in some other way, not by shooting."

Israelis and Arafat Meet

In the first Arab-Israeli talks since the massacre, the political adviser to Israeli Prime Minister Yitzhak Rabin met with p.l.o. chief Yasser Arafat in Cairo. The meeting was described as "a starting point" in which both sides "explained their positions and went home."

Mostar's Muslims Emerge

Bosnian Croat separatists removed their heavy weapons from around the city of Mostar in order to meet a U.N. deadline. Shocked Muslim residents of the city's eastern quarter emerged to a neighborhood they scarcely recognized after nine months of shelling. Every single structure has been devastated -- including the once graceful arc of the 400-year-old Stari Most, or Old Bridge.

Clang! Clang! Clang!

Crowds of cheering Sarajevans stood in happy disbelief as two of the city's bullet-riddled trolleys made a test run on newly repaired tracks. But since the city is still cut off from the outside world, one resident termed the trial "traffic inside a prison."

Visiting Nixon Angers Yeltsin

Russian President Boris Yeltsin, infuriated by Richard Nixon's meetings with Yeltsin's political archenemies in Moscow, canceled planned talks with the former President. Nixon, on a 10-day private visit to Russia, met with former Vice President Alexander Rutskoi, who led a bloody rebellion against Yeltsin last October. Yeltsin later appeared to soften his stand but said he couldn't reschedule the meeting because of the death of his mother-in-law.

Experiencing Delays

The world's busiest international airport, London's Heathrow, came under | attack by mortar fire on two consecutive days. No one was hurt and no aircraft were damaged in the shellings. The Irish Republican Army claimed responsibility for the attacks.

Vote Violence in South Africa

The leader of the South African homeland of Bophuthatswana dropped a boycott of South Africa's first all race elections scheduled for next month after demonstrators took to the streets. At least 24 people were killed during a week of civil unrest.

Tribal Massacre in Burundi

Avenging the killing of 200 members of the Hutu ethnic group by their longtime enemies in a raid in the Burundi capital, Hutus murdered dozens of Tutsis. Nearly 100,000 people were killed in rioting last October when the country's first Hutu leader was killed by the Tutsi-dominated military.

BUSINESS

Christopher's Bumpy Asia Trip

In a visit to Tokyo, Secretary of State Warren Christopher warned the Japanese that the U.S. expects them to do more to open up their markets and reduce their trade surplus with the U.S. By the weekend they had done something: an agreement was announced that will allow Motorola broader access to Japan's cellular-telephone market. Christopher's next stop was China, where talks on renewing that country's most-favored-nation trading status got off to a rocky start. China's recent crackdown on dissidents, Christopher said, "certainly bodes ill" for chances of renewal. Premier Li Peng told Christopher, "China will never accept U.S.-style human rights." As for U.S. trade, "China can live without it."

A Battle for Grumman

The post-cold war consolidation of the U.S. defense industry intensified with a bidding war to purchase the ailing Grumman Corp., one of the most venerable names in military aviation. Martin Marietta's announcement of a $1.9 billion deal to acquire Grumman was followed by a $2 billion offer from Northrop. As the buyout battle unfolded, the sec launched an insider-trading investigation into heavy stock and option trading of Grumman shares that occurred just before Martin Marietta announced its move.

Met Pays

In one of the largest insurance-company settlements, Metropolitan Life agreed with the National Association of Insurance Commissioners to pay $20 million in fines, and up to $76 million in refunds to 60,000 customers, to settle accusations that some of its agents misrepresented life insurance plans as retirement plans.

Anti-Bias Offensive

Ten federal agencies announced new joint policy guidelines aimed at stamping out discrimination against minorities by banks and other lending institutions.

Still No Letup on Layoffs

Despite continued signs of moderate economic growth, reported last week by the Federal Reserve, corporate layoffs continued. Among the latest cuts: 5,500 positions, or 25% of the banking work force, at Fleet Financial Group, parent of New England's largest bank; and 4,400 positions, or 7% of the work force, at Raytheon Co., maker of the Patriot missile.

SCIENCE

Uninformed Consent

In a case that raises dramatic questions about how scientists go about getting consent from their test subjects, a government panel ruled that UCLA researchers failed to inform schizophrenic patients about the risks of an experiment in which they were taken off their medication so that researchers could monitor the course of a relapse. The experiment, now winding down, has been criticized by ethicists for allowing patient-subjects to become dangerously ill.

Warning: Volcano Blasting

A survivor of a volcanic explosion that killed six scientists last year says his colleagues may not have died in vain. Analysis of data collected from the fateful eruption of the Galeras volcano in the Colombian Andes reveals patterns that may help predict precisely when an explosive volcano will erupt.