Monday, May. 30, 1994

The Week May 15-21

By Leslie Dickstein, Christopher John Farley, Lina Lofaro, Lawrence Mondi, Michael Quinn, Jeffery C. Rubin, Alain L. Sanders, Sidney Urquhart

NATION

She's Gone

Former First Lady Jacqueline Kennedy Onassis died in her New York City apartment, succumbing to cancer at 64.

Rosty Seeks a Way or Means

Under criminal investigation for possible financial irregularities, Ways and Means chairman Dan Rostenkowski began exploring a plea-bargain agreement with federal prosecutors. The Illinois Democrat, who claims he is innocent, wants to avoid indictment on felony charges and the possibility of prison, if he is convicted. Rostenkowski is now said to believe his legal problems will force him to relinquish his powerful chairmanship, whether a deal can be reached or not. That is terrible news for Democrats. Without Rostenkowski at the helm, they fear, the President's health reforms could sink in Congress.

Retrofitting Haitian Policy

To implement President Clinton's new Haitian refugee policy, the Pentagon announced it has chartered two Ukrainian vessels that will process the U.S.-asylum applications of Haitian boat people at sea. Pending the ships' deployment, though, the Administration returned home more than 1,000 Haitians.

Breyer's Washington Debut

President Clinton formally introduced Stephen Breyer, his Supreme Court nominee, at a Rose Garden ceremony in which he praised the Boston federal appeals judge as an "unquestioned leader of the judiciary" whose decisions have "protected the civil rights and individual rights of Americans." Breyer, whose confirmation seems nearly certain, promised to "make law work for people."

The Silent Justice Speaks

Elsewhere in the capital, Justice Clarence Thomas appeared before two conservative groups to lambaste the "judicial-rights revolution," blaming it for excusing away the culpability of black and poor defendants and contributing to crime.

Hillary's Got the Dough

The White House released the Clintons' financial-disclosure statements for last year. The couple's net worth was estimated at between $633,015 and $1,620,000, with Hillary Rodham Clinton owning most of the assets in the blind trust that holds virtually all the couple's wealth. Her share: between $500,001 and $1 million.

Haldeman's Diaries

Former President Richard Nixon continued to engender controversy even after his death, this time as a result of the posthumous publication of the diaries of H.R. Haldeman, his chief of staff, who spent 18 months in prison for Watergate-related crimes. Among Haldeman's revelations: Nixon's nasty, insulting gripes against blacks and Jews, and a foreign policy frankly based on the political calculus of the 1972 presidential elections.

The Great Gold Heist of '94

Forced by a federal court order to abide by an 1872 mining law, Interior ( Secretary Bruce Babbitt signed over nearly 2,000 acres of federally owned land in Nevada for a mere $9,765 to a Canadian-based company, enabling it to mine what could amount to billions of dollars of gold on the property free of any royalties. A disgusted Babbitt urged Congress to speed up an overhaul of the antiquated law to end such sales.

Feds Target Prom Principal

On the 40th anniversary of Brown v. Board of Education, the landmark school- desegregation decision, the Justice Department went to court to oust Hulond Humphries, the Alabama high school principal who made headlines earlier this year by reportedly trying to stop interracial dating at his school's prom. Justice accused the school district of engaging in discriminatory practices.

Head Starting Head Start

Surrounded by dozens of children at a buoyant White House ceremony, President Clinton signed into law an expansion of Head Start that would permit the popular preschool program to reach out to children under three and provide full-day, year-round classes. Where the President's proposed $700 million increase to fund the more ambitious Head Start will come from is unclear.

Amtrak Crash

A packed New York-to-Florida Amtrak passenger train derailed in North Carolina, apparently after crashing into a cargo container jutting out from a passing northbound freight train. The engineer was killed and hundreds were injured, most slightly.

WORLD

Rwandan War Rages On

Heavy fighting rocked Rwanda's capital, Kigali, as shells hit a hospital, killing 30 people, and artillery blasted the airport. Diplomatic efforts to establish a cease-fire in the civil war have amounted to nothing more than "handwringing," an American official said. Meanwhile, the U.S. recommended that the deployment of 5,500 African peacekeeping troops as authorized by the U.N. Security Council be delayed until the U.N. provides more detail on the extent, purpose and cost of the mission.

No Breakthrough on Golan

Talks inched forward between Israel and Syria. Secretary of State Warren Christopher shuttled between the two states, trying to advance a deal whereby Israel would trade the occupied Golan Heights for full peace with Syria. Progress looked possible when Tishrin, the mouthpiece of the Syrian ruling party, wrote that Damascus would consider accepting a withdrawal from the Golan in phases. Until now, Syria has rejected a staged pullout, which Israel prefers in order to build trust gradually. Christopher left the Mideast without any tangible achievement to boast of. Late last week, in a move which may further imperil Mideast negotiations, Israeli commandos abducted the leader of a militant Shi'ite faction in Lebanon.

Meanwhile, in Gaza ...

Ending 27 years of occupation, Israel completed its withdrawal from a self- rule enclave in the Gaza Strip. The pullout "corrects a tremendous mistake," said Israeli Foreign Minister Shimon Peres. A rump force of Israeli soldiers will remain to protect the 19 Jewish settlements in the Gaza Strip. At week's end, Islamic militants killed two Israeli soldiers at a border checkpoint.

France Raises Bosnia Ante

Reflecting its increasing frustration with the continuing war in Bosnia, France said it would withdraw 2,500 of its soldiers from the U.N. peacekeeping force in the former Yugoslavia within months if there is no progress toward peace. France's 6,800-member contingent -- largest in the 28,000-strong U.N. force -- is costing the country billions, a commitment French Defense Minister Francois Leotard said he is unwilling to keep up without seeing results: "No one is obliged to do the absurd."

Malawi Elects New Prez

Sweeping the world's oldest leader from office, Malawians elected former Cabinet minister Bakili Muluzi to replace Hastings Kamuzu Banda, who is believed to be in his 90s, in the country's first free multiparty elections. Muluzi promised that Banda, who had ruled the southern African nation as a dictator since its independence from Britain in 1963, would be offered a house, a car and a pension. Said Muluzi: "Let's face it, he's an old man. We don't like to kick around somebody that age."

New N. Korean Nuke Talks

The Clinton Administration has decided that North Korea has met key demands on the inspection of its nuclear program and so the U.S. will resume high-level talks with Pyongyang. North Korean officials have also agreed to meet with International Atomic Energy Agency officials to discuss future iaea monitoring of its spent reactor fuel that could be used for nuclear weapons.

Dominican Vote Fraud Alleged

Officials in the Dominican Republic said the ballots cast in the country's election would be recounted after the leading challenger to aging, blind President Joaquin Balaguer charged that the vote was tainted. Balaguer was only 1% ahead of former Santo Domingo mayor Jose Francisco Pena Gomez in the counting.

BUSINESS

Fed Raises Rates

In a move that was widely anticipated, the Federal Reserve raised two short- term interest rates by half a percentage point in the hope of warding off inflation while sustaining economic growth. In response, banks raised their prime rate half a percentage point to 7.25%. Economists also expect the increases to stabilize the very volatile stock and bond markets.

Lowering Risk

A General Accounting Office study issued on derivatives -- the faddish, hard- to-explain high-finance tools -- calls for more international supervision and regulation. The report argued that a derivatives collapse could cost taxpayers millions in bailouts for banks. Representative Edward J. Markey, chairman of the House Subcommittee on Telecommunications and Finance, is planning to introduce legislation that would enact tighter controls.

Social Security Independence

The House voted 413-0 to make the Social Security Administration, now a division of the Department of Health and Human Services, an independent agency. It is hoped that the new arrangement would make it easier to combat fraud and track misuse of disability benefits given to people suffering from drug and alcohol addiction.

SCIENCE

Coming to America: RU-486

The abortion pill RU-486 may be available to women in the U.S. in two years. After more than a year of negotiations, the French manufacturer, Roussel Uclaf, has agreed to give all patent rights for the pill to the non-profit research group the Population Council. The organization will begin clinical trials in the fall and will help find an American firm to produce the controversial pill, which can end pregnancy within seven weeks of conception. Fearing boycotts and protests by antiabortion groups, Roussel had backed away from trying to market RU-486 in the U.S.

THE ARTS & MEDIA

Tony, Tony, Tony

Stephen Sondheim's Passion and Disney's Beauty and the Beast led this year's Tony Award nominations with 10 and nine, respectively, even though both opened to mixed reviews. In a season that made it sometimes difficult for the nominating committee to meet a minimum of four plays per category, revivals ! made just as much news, topped by She Loves Me, which also received nine nominations. The most honored drama was Tony Kushner's Perestroika, the second half of Angels in America, with six nominations.