Voice of America, 97-06-02

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

CONTENTS

[01] E-U / FRANCE (L) BY JOHN FRASER (LUXEMBOURG)

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

[03] FRANCE / EUROPE BY ANDRE DE NESNERA (LONDON)

[04] FRANCE ELECTIONS (L 2ND UPDATE) BY JULIAN NUNDY (PARIS)

[05] GERMANY CRISIS (UPDATE) BY KYLE KING (BONN)

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

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

[08] U-S/FRANCE REACT (S ONLY) BY VICTOR BEATTIE (WASHINGTON)

[09] U-S / FRANCE POL (S-ONLY) BY DAVID GOLLUST (WHITE HOUSE)

[10] U-S / KOSOVO TRIAL (S-ONLY) BY VALONDA R. BRUINTON (STATE DEPARTMENT)

[11] U.S. / FRANCE POLITICS (S UPDATE) BY DAVID GOLLUST (WHITE HOUSE)

[01] E-U / FRANCE (L) BY JOHN FRASER (LUXEMBOURG)

INTRO: EUROPEAN UNION OFFICIALS SAY THEY BELIEVE THE NEW GOVERNMENT IN FRANCE WILL CONTINUE PRO-EUROPEAN POLICIES. BUT, AS JOHN FRASER REPORTS FROM LUXEMBOURG, MANY E-U OFFICIALS PRIVATELY FEAR THE NEW FRENCH GOVERNMENT MAY REFUSE TO ADOPT THE PAINFUL ECONOMIC POLICIES NEEDED TO PREPARE THE COUNTRY FOR MEMBERSHIP IN EUROPE'S PLANNED SINGLE CURRENCY.

TEXT: LAST WEEK, IT WAS THE GERMANS; THIS WEEK IT IS THE FRENCH WHO ARE CAUSING CONCERN AMONG E-U OFFICIALS.

IN GERMANY, THERE HAS BEEN A PUBLIC DISPUTE BETWEEN THE GOVERNMENT AND THE INDEPENDENT BUNDESBANK OVER A PROPOSAL TO RE-VALUE THE COUNTRY'S GOLD RESERVES. THE AIM OF THE PLAN WAS TO MAKE IT EASIER FOR GERMANY TO MEET THE TOUGH ECONOMIC CONDITIONS TO QUALIFY FOR THE LAUNCH OF THE NEW EUROPEAN SINGLE CURRENCY, THE EURO. NOW, THE FRENCH HAVE SET THE ALARM BELLS RINGING IN BRUSSELS.

OBSERVERS SAY THE SWING TO THE LEFT IN THE FRENCH GOVERNMENT IS ALSO LIKELY TO MEAN A SWING AGAINST EUROPE, IF THE PRE-ELECTION RHETORIC BY SOCIALIST POLITICIANS IS TRANSLATED INTO REALITY.

THE OBSERVERS SAY THAT UNDER PRESSURE FROM POWERFUL LABOR UNIONS, THE SOCIALISTS AND COMMUNISTS ARE NOT LIKELY TO CONTINUE TO FOLLOW THE RIGOROUS ECONOMIC POLICIES THAT ARE NEEDED TO BRING THE FRENCH ECONOMY INTO SHAPE FOR MEMBERSHIP OF THE EURO. PUBLICLY, THE MESSAGE FROM THE EUROPEAN COMMISSION IS AN OPTIMISTIC ONE, WITH COMMISSION PRESIDENT JACQUES SANTER SAYING HE IS QUITE CONFIDENT THAT FRANCE WILL REMAIN COMMITTED TO THE EURO.

MR. SANTER SAID FRANCE HAS ALWAYS BEEN IN FAVOR OF EUROPEAN INTEGRATION, INCLUDING THE LAUNCH OF THE SINGLE CURRENCY ON JANUARY FIRST, 1999. HE SAID EUROPE MUST STICK TO THAT TIMETABLE. AND HE STRONGLY DENIED SUGGESTIONS THAT THE PROBLEMS IN FRANCE AND GERMANY MEAN THAT THE EURO IS EFFECTIVELY DEAD.

THE FIRST SIGNS OF ANY CHANGE IN FRENCH POLICY ON EUROPE WILL COME DURING THE NEXT TWO WEEKS.

E-U LEADERS ARE PREPARING FOR SUMMIT TALKS IN AMSTERDAM IN MID-JUNE, WHEN THEY ARE TO AGREE ON A NEW TREATY TO IMPROVE THE WORKINGS OF THE UNION AND TO PREPARE FOR THE ADMISSION OF NEW MEMBERS FROM CENTRAL AND EASTERN EUROPE.
NEB/JF/JWH/RRM
02-Jun-97 9:10 AM EDT (1310 UTC)
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Source: Voice of America

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

INTRO: STOCK PRICES WERE MIXED IN TRADING MONDAY IN MAJOR EUROPEAN EXCHANGES. V-O-A'S JACK HUIZENGA HAS THE CLOSING MARKET REPORT FROM LONDON.

TEXT: STOCK PRICES WERE UP IN BOTH FRANKFURT AND PARIS, BUT WERE DOWN SHARPLY IN LONDON. IN PARIS, THE CAC-40 INDEX ROSE MORE THAN 17 POINTS, ALMOST SEVEN-TENTHS PERCENT OF THE MARKET'S TOTAL VALUE -- DESPITE WIDESPREAD ASSUMPTIONS THE FRENCH MARKET WOULD FALL AFTER THE SOCIALIST ELECTION VICTORY SUNDAY.

STOCK PRICES WERE UP EVEN MORE IN FRANKFURT. THE DAX-30 INDEX ROSE ALMOST 58 POINTS, MORE THAN ONE-POINT-SIX PERCENT.

BUT IN LONDON -- EUROPE'S BIGGEST MARKET -- PRICES WERE OFF SHARPLY, AMID FEARS OF A POSSIBLE RISE IN BRITISH INTEREST RATES LATER THIS WEEK. THE FOOTSIE-100 INDEX CLOSED DOWN MORE THAN 58 POINTS, ALMOST ONE-POINT-THREE PERCENT.

ON THE LONDON CURRENCY EXCHANGE, THE U-S DOLLAR GAINED VALUE AGAINST THE BRITISH POUND AND THE GERMAN MARK, BUT WAS DOWN AGAINST THE JAPANESE YEN.
NEB/JWH/RRM
02-Jun-97 1:30 PM EDT (1730 UTC)
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Source: Voice of America

[03] FRANCE / EUROPE BY ANDRE DE NESNERA (LONDON)

INTRO: THE VICTORY OF THE SOCIALIST PARTY AND ITS ALLIES IN PARLIAMENTARY ELECTIONS IN FRANCE IS A STINGING REBUKE TO THE POLICIES OF CONSERVATIVE PRESIDENT JACQUES CHIRAC. THE ELECTORAL WIN HAS ALSO BROUGHT WITH IT UNCERTAINTY ABOUT THE PROSPECTS FOR EUROPEAN ECONOMIC AND MONETARY UNION. IN THIS REPORT FROM LONDON V-O-A CORRESPONDENT ANDRE DE NESNERA LOOKS AT THE THOSE CONCERNS BROUGHT ABOUT BY THE SOCIALIST WIN IN FRANCE.

TEXT: LIONEL JOSPIN -- A LONG-TIME ADVISER TO FORMER FRENCH SOCIALIST PRESIDENT FRANCOIS MITTERRAND AND HIMSELF A PRESIDENTIAL CANDIDATE TWO YEARS AGO -- IS FRANCE'S NEW PRIME MINISTER.

MR. JOSPIN WILL FORM THE NEW FRENCH GOVERNMENT AFTER HIS SOCIALIST PARTY AND ITS ALLIES RECEIVED MOST OF THE PARLIAMENTARY SEATS -- BUT NOT ENOUGH TO GAIN A CLEAR MAJORITY. TO GOVERN, MR. JOSPIN WILL NEED THE SUPPORT OF THE COMMUNIST PARTY AND OF THE ENVIRONMENTALISTS, KNOWN AS "GREENS."

MR. JOSPIN'S WIN IS A REPUDIATION OF THE POLICIES ADVOCATED BY FORMER PRIME MINISTER ALAIN JUPPE WITH THE BLESSING OF FRENCH PRESIDENT JACQUES CHIRAC.

THE SENIOR POLITICAL ANALYST WITH THE FRENCH NEWS WEEKLY "L'EVENEMENT DU JEUDI" -- PHILIPPE CHATENET -- SAYS THE FRENCH ELECTORATE SIMPLY MADE CLEAR IT HAD ENOUGH OF THE JUPPE GOVERNMENT'S AUSTERE ECONOMIC PROGRAM.

MR. JUPPE -- WHO WAS SOMEWHAT OF A TECHNOCRAT -- WAS NOT ABLE OR NOT WILLING TO EXPLAIN TO THE FRENCH PEOPLE WHY AUSTERITY WAS NECESSARY, WHY REFORMS WERE NECESSARY, WHY HE HAD TO TAKE UNPOPULAR MEASURES TO MOVE FRANCE FORWARD TOWARDS THE 21ST CENTURY. AND I THINK HIS DEFEAT WAS PERHAPS BECAUSE OF THAT LACK OF COMMUNICATION, THAT LACK OF DIALOGUE.

ANALYSTS SAY THE AUSTERE MEASURES WERE NECESSARY FOR FRANCE TO REACH CERTAIN ECONOMIC CRITERIA NEEDED TO BECOME PART OF THE SINGLE EUROPEAN CURRENCY SCHEDULED TO BEGIN IN JANUARY 1999. MR. CHATENET BELIEVES THE FRENCH PARLIAMENTARY RESULTS MAY FORCE EUROPEAN LEADERS TO REINTERPRET THOSE PRECISE ECONOMIC TARGETS.

THAT PERHAPS (PRIME MINISTER) MR. BLAIR IN BRITAIN, PERHAPS OTHER EUROPEAN LEADERS WILL JOIN MR. JOSPIN IN SAYING: "HEY, WHO DECIDED THAT IT HAD TO BE A MAXIMUM OF THREE PERCENT OF PUBLIC DEFICIT -- WHY CAN'T IT BE FOUR OR FIVE?" AFTER ALL, THOSE ARE PERHAPS MORE POLITICAL CRITERIA THAN THEY ARE STRICTLY ECONOMIC CRITERIA. I THINK THAT WHAT MR. JOSPIN WOULD LIKE IS FOR PEOPLE TO BE PUT BACK IN THE CENTER OF THE EUROPEAN EQUATION. I THINK THERE IS A FEELING, PROBABLY SHARED BY A MAJORITY OF THE FRENCH, THAT TOO MUCH EMPHASIS HAS BEEN GIVEN IN EUROPEAN AFFAIRS TO PURELY ECONOMIC, MONETARY, FINANCIAL CRITERIA, AND THAT IN FACT WE HAVE FORGOTTEN THAT ALL THIS CONCERNS PEOPLE. AND I THINK THAT IS WHAT MR. JOSPIN MEANS WHEN HE SAYS THAT HE WOULD LIKE A MORE "SOCIAL EUROPE."

SENIOR MEMBERS OF THE FRENCH SOCIALIST PARTY HAVE INDICATED THE TARGETS FOR JOINING A SINGLE EUROPEAN CURRENCY ARE NOT CAST IN CONCRETE AND SHOULD BE MORE FLEXIBLE. HOWEVER MANY EUROPEAN POLITICIANS -- MANY OF THEM IN GERMANY -- BELIEVE RELAXING THOSE STRICT ECONOMIC LIMITS WOULD MEAN A WEAKER EUROPEAN CURRENCY.

YOU CAN IMAGINE A FLABBY EURO (EUROPEAN SINGLE CURRENCY), WITH PLENTY OF MEMBERS BUT NO BACKBONE. THAT IS SOMETHING THE GERMANS HAVE SET THEMSELVES ABSOLUTELY AGAINST. ONE DANGER IS THAT GIVEN THE GERMANS' OWN DIFFICULTIES, THEY WILL NOW FEEL TEMPTED TO GO ALONG WITH THAT -- IN WHICH CASE THERE WILL BE A SOFT EURO -- EUROPE WILL CONTINUE TO LOSE COMPETITIVENESS AND ITS CURRENCY MIGHT BECOME THE LAUGHING STOCK OF THE WORLD.

MR. JOSPIN'S SOCIALIST PARTY WILL NEED THE SUPPORT OF THE COMMUNISTS TO FORM A NEW FRENCH GOVERNMENT. THE IRONY IS THAT THE FRENCH COMMUNIST PARTY IS STRONGLY OPPOSED TO THE IDEA OF A SINGLE EUROPEAN CURRENCY -- SO YOU HAVE THE POTENTIAL OF COALITION PARTNERS HAVING OPPOSING VIEWS ON EUROPE. BUT MR. CHATENET BELIEVES THAT DIVERGENCE OF OPINION MAY BE SACRIFICED IN THE NAME OF POLITICAL EXPEDIENCY.

THE COMMUNISTS ARE REALLY THE ONES WHO ARE ASKING FOR A PARTICIPATION IN GOVERNMENT AND IN EXCHANGE FOR THAT PARTICIPATION, PERHAPS MR. JOSPIN WILL BE ABLE TO SAY, "WELL, YOU WILL HAVE TO TOW OUR SOCIALIST LINE ON EUROPEAN AFFAIRS."

WHATEVER THE OUTCOME OF THE POLITICAL DEBATE WITHIN THE NEW LEFT-WING FRENCH GOVERNMENT, MR. CHATENET SAYS THE REAL LOSER IS FRENCH PRESIDENT JACQUES CHIRAC WHOSE VOICE IN EUROPE WILL CERTAINLY BE DIMINISHED. (SIGNED)
NEB/ADEN/JWH/CF
02-Jun-97 11:55 AM EDT (1555 UTC)
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Source: Voice of America

[04] FRANCE ELECTIONS (L 2ND UPDATE) BY JULIAN NUNDY (PARIS)

INTRO: FRANCE ELECTED A LEFT-WING PARLIAMENTARY MAJORITY SUNDAY. THIS MEANS THAT THE CONSERVATIVE PRESIDENT JACQUES CHIRAC WILL HAVE TO RULE WITH A SOCIALIST-LED GOVERNMENT. WITH RESULTS COMPLETE FOR MOST NATIONAL ASSEMBLY SEATS, THE LEFT HAS A COMFORTABLE LEAD. JULIAN NUNDY REPORTS FROM PARIS.

TEXT: IN A CRUSHING HUMILIATION FOR PRESIDENT JACQUES CHIRAC, THE FRENCH VOTED CONVINCINGLY FOR A LEFT-WING GOVERNMENT. THE LEFT HAS MANY MORE THAN THE 289 SEATS IT NEEDS TO CONTROL PARLIAMENT. MR. CHIRAC IS NOW EXPECTED TO INVITE LIONEL JOSPIN, THE SOCIALIST PARTY LEADER, TO BE PRIME MINISTER.

THE VOTERS CONFIRMED THE PATTERN OF THE LAST 16 YEARS OF NEVER RETURNING AN OUTGOING GOVERNMENT TO POWER. IN THE LAST FIVE PARLIAMENTARY ELECTIONS, FRANCE HAS CHANGED GOVERNMENT FIVE TIMES.

IT WAS PRESIDENT CHIRAC HIMSELF WHO DISSOLVED THE 577-SEAT NATIONAL ASSEMBLY AND CALLED EARLY ELECTIONS SIX WEEKS AGO, APPARENTLY IN THE BELIEF THAT HIS CONSERVATIVE COALITION WAS IN NO DANGER. HOWEVER, WHEN THE LEFT TOOK A COMMANDING LEAD IN THE FIRST, ELIMINATING VOTE A WEEK AGO, IT BECAME CLEAR THAT THE GAMBLE WAS A DANGEROUS ONE. NOW, MR. CHIRAC IS SET TO WORK WITH A GOVERNMENT THAT COULD INCLUDE COMMUNIST MINISTERS.

FOR THE FIRST TIME, THE NEW NATIONAL ASSEMBLY INCLUDES A HANDFUL OF ECOLOGIST DEPUTIES. THE ECOLOGISTS WERE ELECTED WITH THE SUPPORT OF THE SOCIALISTS. THE EXTREME-RIGHT ANTI-IMMIGRATION NATIONAL FRONT PARTY ALSO TOOK ONE SEAT.

THE NATIONAL FRONT PLAYED AN IMPORTANT PART IN THIS ELECTION. THE EXTREME RIGHT PARTY DECIDED TO STAY IN THE RACE IN NEARLY 80 DISTRICTS WHERE IT QUALIFIED IN THE FIRST ROUND. IN THE FINAL ROUND, THIS SPLIT THE RIGHT-WING VOTE AND HELPED THE ELECTION OF LEFT-WING CANDIDATES.

MR. JOSPIN, THE SOCIALIST LEADER AND THE LIKELY NEXT PRIME MINISTER, WAS THE LEFT'S UNSUCCESSFUL CANDIDATE AGAINST MR. CHIRAC IN THE LAST PRESIDENTIAL ELECTIONS TWO YEARS AGO.

NOW THE TWO MEN ARE SET TO WORK TOGETHER. THIS WILL LEAD TO WHAT THE FRENCH CALL "COHABITATION," AN UNCOMFORTABLE POWER-SHARING ARRANGEMENT BETWEEN LEFT AND RIGHT. THIS COULD LAST FOR THE FULL FIVE-YEAR LIFE OF THE NEW PARLIAMENT.

THE SOCIALISTS AND THEIR NON-COMMUNIST ALLIES TOGETHER HAVE A WORKING PARLIAMENTARY MAJORITY. THIS MEANS THEY DO NOT NEED THE SUPPORT OF THE COMMUNIST PARTY TO GOVERN. HOWEVER, MR. JOSPIN HINTED AT A COMMUNIST PARTICIPATION IN HIS VICTORY SPEECH AND COMMUNIST LEADERS SAY THEY ARE SEEKING A ROLE IN GOVERNMENT.

THE INCLUSION OF COMMUNISTS COULD COMPLICATE FRENCH POLICY ON EUROPEAN CONSTRUCTION. THE SOCIALISTS ARE PRO-EUROPEAN WHILE THE COMMUNISTS ARE OPPOSED TO MANY EUROPEAN UNION POLICIES, ESPECIALLY THE CRUCIAL CREATION OF A SINGLE EUROPEAN CURRENCY.
NEB/JN/LWM
01-Jun-97 7:40 PM EDT (2340 UTC)
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Source: Voice of America

[05] GERMANY CRISIS (UPDATE) BY KYLE KING (BONN)

INTRO: A GERMAN PLAN TO REVALUE THE NATION'S GOLD RESERVES HAS TRIGGERED A RARE PUBLIC DISPUTE BETWEEN THE GOVERNMENT AND THE CENTRAL BANK. V-O-A'S KYLE KING REPORTS FROM BONN THE GOVERNMENT UP TO NOW IS DEDICATED TO ITS PLAN TO HELP GERMANY MEET THE CRITERIA TO JOIN THE SINGLE EUROPEAN CURRENCY.

TEXT: THE GERMAN GOVERNMENT PLAN TO REVALUE ITS GOLD RESERVES WAS FORMULATED AS A WAY TO HELP GERMANY MEET THE TOUGH CRITERIA TO JOIN THE SINGLE EUROPEAN CURRENCY IN 1999.

PROFITS FROM THE GOLD REVALUATION WOULD BE USED TO CANCEL OUT SOME OF THE MASSIVE DEBT GERMANY HAS ACCUMULATED IN THE PROCESS OF UNIFICATION WITH EAST GERMANY.

CRITICS ACCUSE GERMANY OF USING ACCOUNTING TRICKS TO MEET SINGLE EUROPEAN CURRENCY RULES THAT PLACE STRICT LIMITS ON A NATION'S DEBTS AND BUDGET SHORTFALLS.

SOME EXPERTS, LIKE AXEL NITSCHKE, AN ECONOMIST AT THE GERMAN CHAMBER OF COMMERCE, SAY THE PLAN HAS CAST DOUBTS ON THE INDEPENDENCE OF THE GERMAN CENTRAL BANK.

WHO HAS TO DECIDE ON MONETARY POLICY THAT IS THE QUESTION, AND WE GERMANS, WE TOLD THE WORLD FOR YEARS THAT IT SHOULD BE THE CENTRAL BANK WHICH SHOULD DECIDE BY THEMSELVES, WITH ONLY THE AIM OF MONITORY STABILITY.

NOW SOME EXPERTS SAY, THE GERMAN GOVERNMENT'S GOLD REVALUATION PLAN WILL UNDERMINE THE INDEPENDENCE OF THE BUNDESBANK, WHICH IS TO BE A MODEL FOR THE EUROPEAN CENTRAL BANK.

CENTRAL BANK OFFICIALS SAY THEY ARE CONCERNED THAT THE STABILITY OF THE PLANNED EUROPEAN CURRENCY COULD BE JEOPARDIZED BY ANY LOSS OF CENTRAL BANK INDEPENDENCE.

DESPITE WIDESPREAD CRITICISM, CHANCELLOR HELMUT KOHL'S GOVERNMENT IS PUSHING AHEAD WITH THE PLAN. FINANCE MINISTER THEO WAIGEL IS EXPECTED TO OUTLINE DETAILS OF THE PLAN TO PARLIAMENT LATER THIS WEEK.

GERMANY'S MAIN OPPOSITION PARTIES, THE SOCIAL DEMOCRATS AND THE GREENS, SAY THEY WILL PUSH FOR A PARLIAMENTARY VOTE TO DISMISS MR. KOHL'S FINANCE MINISTER. (SIGNED)
NEB/KBK/JWH/CF
02-Jun-97 11:41 AM EDT (1541 UTC)
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Source: Voice of America

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

INTRO: EDITORIAL PAGE WRITERS AND EDITORS ARE LOOKING INWARD FOR THE MOST PART THIS MONDAY, AND MOST COMMENTARIES REFLECT THAT. AMONG THE TOPICS IN SOME OF TODAY'S PAPERS ARE: THE NATIONAL BUDGET DEBATE; THE WAIT FOR A DECISION IN THE OKLAHOMA CITY BOMBING TRIAL; CIGARETTE ADS ALLEGEDLY AIMED AT CHILDREN; THE BALTICS' BID FOR NATO MEMBERSHIP; AND THE ELECTIONS IN FRANCE AND CANADA. NOW, HERE WITH A CLOSER LOOK AND A FEW QUOTES, IS _____________________ AND TODAY'S EDITORIAL DIGEST.

TEXT: THE BUDGET AGREEMENT REACHED LAST MONTH BETWEEN CONGRESS AND THE PRESIDENT CONTINUES TO COME UNDER SCRUTINY IN THE PRESS. THE PHILADELPHIA INQUIRER IS UPSET AT THE WAY TAX CUTS INCLUDED IN THE BUDGET PACKAGE, TAX CUTS IT CALLS "SHORTSIGHTED," ARE BEING STRUCTURED.

VOICE: "WITH ITS JUMBLE OF TAX RELIEF FOR INVESTORS AND ESTATES, CHILDREN AND COLLEGE STUDENTS, THE NEW FRAMEWORK FOR CUTTING TAXES DOESN'T HAVE AN OVERARCHING THEME. BUT IT DOES HAVE TWO FUNDAMENTAL QUALITIES - - BAD ONES ....... FIRST, THE WAY THE TAX RELIEF ACCELERATES MEANS THAT IF THE BALANCED BUDGET IS ACHIEVED AT ALL, IT MAY BE VERY FLEETING. ..... THE SECOND FUNDAMENTAL PROBLEM IS FAIRNESS. IN THE NEAR FUTURE, MOST OF THE TAX RELIEF GOES TO MIDDLE-INCOME HOUSEHOLDS, PRIMARILY THROUGH A NEW TAX CREDIT FOR CHILDREN. BUT BY THE TENTH YEAR .....MOST OF THE TAX RELIEF WILL ....... MAINLY BENEFIT UPPER-INCOME TAXPAYERS....."

TEXT: THE WASHINGTON POST SAYS THE ACTUAL WORDING OF THE LAWS THAT PROVIDE THE DETAILS FOR THE VARIOUS PORTIONS OF THE BALANCED BUDGET AGREEMENT ARE SURE TO BE A BATTLEGROUND.

VOICE: "THE HOUSE WAYS AND MEANS COMMITTEE WILL BE THE FIRST TESTING-GROUND. EVEN BEFORE IT GETS TO TAXES, THERE WILL BE DISPUTES ABOUT THE VAST HEALTH AND WELFARE PROGRAMS WITHIN ITS JURISDICTION. THE AGREEMENT CALLS FOR CUTTING WHAT WOULD OTHERWISE BE THE NET COST OF MEDICARE BY 115-BILLION DOLLARS OVER THE NEXT FIVE YEARS. MOST OF THE SAVINGS ARE EXPECTED TO BE ACHIEVED ..... BY SQUEEZING PAYMENTS TO HEALTH CARE PROVIDERS. ..... IMMIGRATION ISSUES ALSO ARE LIKELY TO BE REOPENED. LAST YEAR'S WELFARE BILL, IN ONE OF THE WORST OF ITS MANY ROTTEN FEATURES, CONVERTED LEGAL IMMIGRANTS INTO PARIAHS BY DENYING THEM MOST FEDERAL WELFARE BENEFITS NO MATTER HOW LONG THEY MAY HAVE LIVED IN THE COUNTRY OR HOW NEEDY THEY MAY BE. IT'S AN OFFENSIVE DISTINCTION. THE BUDGET AGREEMENT, AT THE ADMINISTRATION'S INSISTENCE, INCLUDES FUNDS TO RESTORE SOME OF THE BENEFITS. BUT REPUBLICANS HAVE SAID THEY INTEND TO TIGHTEN SOME ASPECTS OF LAST YEAR'S LAW EVEN AS THEY EASE THE EFFECT OF OTHERS...."

TEXT: AND LASTLY, NEWSDAY SAYS IN ITS EDITORIAL HEADLINE:" WHEN CONGRESS CUTS TAXES, IT SHOULD ABANDON THE GIMMICKRY THAT CONCEALS THE TRUE COST."

TURNING TO ANOTHER IMPORTANT NATIONAL STORY, THE TRIAL OF OKLAHOMA CITY BOMBING SUSPECT TIMOTHY MCVEIGH, WHICH HAS NOW GONE TO THE JURY, USA TODAY COMMENTS ON THE WAIT FOR A VERDICT.

VOICE: "AS THE JURY IN THE OKLAHOMA CITY BOMBING CASE ENTERS ITS FOURTH DAY OF DELIBERATIONS, VICTIMS ARE BEGINNING TO WORRY THAT TIMOTHY MCVEIGH MIGHT GO FREE. HE MIGHT. BUT NOT BECAUSE THE JURY HAS TAKEN A FEW DAYS TO LOOK OVER THE EVIDENCE. JURORS IN THE FIVE-MONTH WORLD TRADE CENTER BOMBING TRIAL TOOK SIX DAYS TO REACH A GUILTY VERDICT ....... THE ONLY REASON THE JURY DELIBERATIONS MAY SEEM SLOW IS THAT THEY STAND IN CONTRAST TO THE SPEED OF THE REST OF THIS TRIAL. IN BRINGING THE TRIAL TO A CONCLUSION JUST FIVE WEEKS AFTER IT BEGAN, U-S DISTRICT JUDGE RICHARD MATSCH HAS HELPED TO ERASE THE ABERRANT IMPRESSIONS OF THE JUSTICE SYSTEM LEFT BY THE O-J SIMPSON MURDER TRIAL [WHICH LASTED] A FULL NINE MONTHS, THE LONGEST SEQUESTERED-JURY TRIAL IN [U-S] HISTORY."

TEXT: A NEW GOVERNMENT BAN ON THE CARTOON FIGURE JOE CAMEL, USED BY THE R-J REYNOLDS TOBACCO COMPANY TO ADVERTISE CAMEL CIGARETTES, IS STILL DRAWING COMMENTS. TODAY'S NEW YORK POST TAKES ISSUE WITH THE FEDERAL TRADE COMMISSION'S RULING THAT THE CHARACTER IS AN "UNFAIR" ADVERTISING PRACTICE USED TO INDUCE CHILDREN TO SMOKE. SAYS THE POST:

VOICE: "THE FTC'S MUCH BALLYHOOED [PUBLICIZED] SURVEY FOUND THAT CAMEL'S SHARE OF THE TEEN SMOKING MARKET SURGED FROM THREE PERCENT TO 13-POINT-TWO PERCENT IN THE DECADE SINCE THE START OF THE JOE CAMEL CAMPAIGN. BUT THAT PROVES NOTHING. MOST ADVERTISING IS A QUEST TO STEAL CUSTOMERS FROM THE COMPETITION. COULD IT BE ONLY THAT TEEN SMOKERS ARE NOW SMOKING CAMELS INSTEAD OF MARLBOROS? ..... DESPITE THE ANTI-SMOKING ZEALOTS, THE UNITED STATES STILL HAS A FIRST AMENDMENT [TO THE U-S CONSTITUTION]. TOBACCO REMAINS A LEGAL PRODUCT THAT MANY PEOPLE ENJOY."

TEXT: ON THE SAME TOPIC, USA TODAY DISAGREES, SAYING:

VOICE: "EVERYBODY KNOWS THAT JOE CAMEL, THE IRON-LUNGED ANIMAL THAT ENLIVENS ADS FOR R-J REYNOLDS' CAMEL CIGARETTES, ENTICES CHILDREN TO SMOKE. IT'S A CARTOON, FOR PETE'S SAKE [COLLOQUIAL EXPRESSION FOR SOMETHING OBVIOUS]. .... A 1991 STUDY IN THE "JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION" FOUND THAT AMONG CHILDREN THE BEAST WAS AS WELL KNOWN AS MICKEY MOUSE. ..... JOE CAMEL IS LITTLE MORE THAN A CHILD MOLESTER FOR THE TOBACCO INDUSTRY .... HERE'S HOPING THE F-T-C HUNTS HIM TO EXTINCTION. AND SOON."

TEXT: TURNING TO INTERNATIONAL ISSUES, LEAVING THE BALTIC STATES OUT OF THE FIRST EXPANSION OF NATO COMES IN FOR SOME CRITICISM IN AN EDITORIAL NOTEBOOK FROM PHILIP TAUBMAN OF THE NEW YORK TIMES,.

VOICE: "AS THE BALTIC NATIONS OF ESTONIA, LATVIA AND LITHUANIA PONDER THE PROSPECT OF NATO EXPANSION, THEY FEAR THEY WILL ONCE AGAIN BECOME THE ORPHANS OF EUROPE. THEY WERE LAST ABANDONED IN 1940, WHEN THE SOVIET UNION FORCIBLY ANNEXED THE THREE COUNTRIES A YEAR AFTER STALIN AND HITLER SECRETLY AGREED TO PLACE THEM UNDER MOSCOW'S DOMINION. THIS TIME, JUST A FEW YEARS AFTER REGAINING THEIR INDEPENDENCE, THEY FACE REJECTION BY THE UNITED STATES AND ITS EUROPEAN ALLIES. IN A NEEDLESS RUSH TO EXPAND EASTWARD, NATO PLANS TO GIVE THEM A POLITE BRUSHOFF, AT LEAST FOR NOW. THAT ALONE IS REASON FOR THE [U-S] SENATE TO QUESTION THE WHOLE NATO SCHEME. THIS IS NOT PURELY A MATTER OF DIPLOMACY OR HISTORY. IT IS ALSO A MATTER OF CONSCIENCE FOR AMERICA."

TEXT: LASTLY, A PAIR OF ELECTIONS IN CANADA AND FRANCE ARE ELICITING RESPONSES. THE SUN IN BALTIMORE CALLS CANADA'S VOTE "ILL TIMES" AND GOES ON TO NOTE:

VOICE: "DOWN TO THE WIRE, [THE CLOSING MINUTES] THE CANADIAN ELECTION TODAY LOOKS LIKE A DEAD HEAT BETWEEN THE RE-ELECTION OF PRIME MINISTER JEAN CHRETIEN'S LIBERAL GOVERNMENT AND CONFUSION. CONFUSION MEANS THAT MR. CHRETIEN WOULD LEAD THE LARGEST PART IN THE HOUSE OF COMMONS, BUT WITHOUT A MAJORITY. HE WOULD THEN NEED TO FORM A COALITION WITH ONE OF THE TWO OTHER PARTIES THAT SEEK NATIONAL BASES ..... WHATEVER THE OUTCOME, THE VOTERS ARE PUNISHING MR. CHRETIEN FOR CALLING THE ELECTION 18 MONTHS BEFORE REQUIRED WHEN HE THOUGHT HE WAS AHEAD. THEY DON'T WANT TO VOTE FOR ANYONE THIS SOON, AND BLAME MR. CHRETIEN FOR FORCING THEM TO CHOOSE."

TEXT: THE WALL STREET JOURNAL COMMENTS ON THE VICTORY OF THE LEFT IN THE SECOND PHASE OF THE FRENCH PARLIAMENTARY ELECTIONS SUNDAY:

VOICE: "IF SOCIALIST LEADER LIONEL JOSPIN STICKS TO THE BROAD OUTLINES OF HIS ECONOMIC PROGRAM, FRANCE IS HEADED FOR A MAJOR SLOWDOWN IN ECONOMIC REFORM, WITH CONSEQUENCES FOR GROWTH AND EMPLOYMENT PREDICTED BY EVERYBODY EXCEPT THE LEFT'S OWN POLITICAL LEADERS. .....IF TAKEN AT HIS WORD, MR. JOSPIN MAY WELL PUT FRANCE ON A COLLISION COURSE WITH GERMANY OVER A SINGLE CURRENCY PROJECT THAT IS ALREADY SPRINGING LEAKS. [IN TROUBLE]"

TEXT: ON THAT NOTE, WE CONCLUDE THIS BRIEF SAMPLING OF SOME EDITORIAL COMMENTS FROM THE NATION'S DAILY PAPERS.
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02-Jun-97 10:34 AM EDT (1434 UTC)
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Source: Voice of America

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

INTRO: STOCK PRICES IN THE UNITED STATES WERE DOWN TODAY (MONDAY) AS INFLATION CONCERNS RE-EMERGED. VOA CORRESPONDENT BRECK ARDERY REPORTS FROM NEW YORK.

TEXT: THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT 72 HUNDRED 89, DOWN 41 POINTS. THE BROADER AND MORE REPRESENTATIVE STANDARD AND POOR'S 500 INDEX CLOSED AT 846, DOWN TWO POINTS.

ANALYSTS SAY STRENGTH IN THE U-S MANUFACTURING SECTOR MADE SOME TRADERS NERVOUS ABOUT A POSSIBLE INCREASE IN INFLATION.

THE U-S MANUFACTURING SECTOR EXPANDED IN MAY AT A FASTER PACE THAN IN APRIL, BUT PRICES FOR RAW MATERIALS WERE DOWN. TOTAL SPENDING ON NEW BUILDING CONSTRUCTION DROPPED IN APRIL FOR THE FIRST TIME IN FOUR MONTHS. AND THE GOVERNMENT REPORTED CONSUMER SPENDING WAS UP IN APRIL BUT AT ITS SLOWEST RATE IN SEVEN MONTHS.

A JUDGE IN THE STATE OF FLORIDA SAYS HE WILL ALLOW A SECONDHAND SMOKE CASE TO GO TO TRIAL. PRESENT AND FORMER AIRLINE FLIGHT ATTENDANTS ARE SUING MAJOR AMERICAN TOBACCO COMPANIES, CLAIMING THAT THE NON-SMOKING FLIGHT ATTENDANTS SUFFERED HEALTH PROBLEMS AS A RESULT OF PASSENGER CIGARETTE SMOKING. SMOKING ON DOMESTIC AIRLINE FLIGHTS IN THE UNITED STATES WAS COMPLETELY BANNED SEVERAL YEARS AGO.

THE PEPSICO COMPANY SAYS IT IS CREATING A SEPARATE OPERATIONS UNIT FOR ITS SIX BILLION DOLLAR A YEAR SOFT DRINK BOTTLING BUSINESS. SOME ANALYSTS SAY IT IS THE FIRST STEP TOWARD A SPIN OFF OF THE BOTTLING UNIT. PEPSICO HAS ALREADY ANNOUNCED IT WILL SPIN OFF ITS RESTAURANT BUSINESS LATER THIS YEAR.

THE AMOCO OIL CORPORATION SAYS IT WILL SELL 15 PERCENT OF ITS U-S OIL AND GAS RESERVES TO CONCENTRATE ON MORE PROFITABLE INTERNATIONAL VENTURES. INDUSTRY ANALYSTS SAY THE SALE COULD BRING AMOCO AS MUCH AS THREE BILLION DOLLARS.

THE COMMERCE DEPARTMENT REPORTS THE NUMBER OF INTERNATIONAL TOURISTS VISITING THE UNITED STATES LAST YEAR WAS 46 POINT THREE MILLION, A RECORD. (SIGNED) NEB/NY/BA/LSF/LWM
02-Jun-97 5:51 PM EDT (2151 UTC)
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Source: Voice of America

[08] U-S/FRANCE REACT (S ONLY) BY VICTOR BEATTIE (WASHINGTON)

INTRO: THE UNITED STATES HAS CONGRATULATED THE SOCIALIST PARTY AND ITS ALLIES IN FRANCE ON SUNDAY'S SECOND ROUND VICTORY IN PARLIAMENTARY ELECTIONS PROMISING CONTINUED CLOSE COOPERATION. V-O-A'S VICTOR BEATTIE REPORTS AN ANALYST ON FRENCH POLITICS SAYS VOTERS HAVE APPARENTLY REACTED OUT OF CONCERN FOR THEIR ECONOMIC PLIGHT BY REJECTING THE PROSPECT OF AUSTERITY MEASURES OFFERED BY THE RULING CENTER-RIGHT OF PRESIDENT JACQUES CHIRAC:

TEXT: A U-S STATE DEPARTMENT SPOKESWOMAN CONGRATULATED THE LEFTIST OPPOSITION ON WHAT SHE CALLED ITS CLEAR VICTORY IN SUNDAY'S SECOND-ROUND BALLOT. SHE SAYS WASHINGTON LOOKS FORWARD TO THE NAMING OF A NEW PRIME MINISTER AND CABINET AND CONTINUED CLOSE COOPERATION WITH FRANCE.

ANALYST HELMUT SONNENFELDT OF THE PRIVATE, WASHINGTON-BASED BROOKINGS INSTITUTION AND A FORMER STATE DEPARTMENT OFFICIAL SAYS HE IS NOT SURPRISED BY THE LEFTIST VICTORY. HE SAYS, LIKE BRITAIN, FRENCH VOTERS WERE READY FOR A CHANGE:

BUT, ABOVE ALL, FRANCE IS IN SEVERE ECONOMIC DIFFICULTY AND THERE IS A LOT OF FEAR THAT ENTRY INTO THE EUROPEAN MONETARY UNION, WHICH A PREPONDERANCE OF FRENCH PEOPLE SUPPORT, WOULD UNDER AN ENTIRELY CONSERVATIVE GOVERNMENT MEAN A GREAT DEAL OF AUSTERITY, WHAT THE FRENCH CONSIDER PAIN TO THEM, AND THAT THEY OPPOSE.

MR. SONNENFELDT SAYS LIONEL JOSPIN, THE SOCIALIST LEADER AND LIKELY NEXT PRIME MINISTER, FAVORS MONETARY UNION ALTHOUGH POSSIBLY UNDER MORE FLEXIBLE CRITERION. HE MAY ALSO CALL FOR A WEAKER "EURO" CURRENCY TO AVOID FURTHER HARDSHIP ON THE FRENCH ECONOMY. (SIGNED)
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01-Jun-97 8:05 PM EDT (0005 UTC)
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Source: Voice of America

[09] U-S / FRANCE POL (S-ONLY) BY DAVID GOLLUST (WHITE HOUSE)

INTRO: HERE IN WASHINGTON, CLINTON ADMINISTRATION OFFICIALS SAY THEY DO NOT EXPECT ANY NEW DIFFICULTIES IN U-S FRENCH RELATIONS STEMMING FROM THE LEFTIST VICTORY IN SUNDAY'S FRENCH PARLIAMENTARY ELECTIONS. V-O-A'S DAVID GOLLUST REPORTS FROM THE WHITE HOUSE.

TEXT: NOTING THAT PRESIDENT CLINTON HAS HAD TO WORK WITH AN OPPOSITION-LED U-S CONGRESS FOR NEARLY THREE YEARS, WHITE HOUSE SPOKESMAN MIKE MCCURRY SAYS THE ADMINISTRATION KNOWS SOMETHING ABOUT THE SITUATION FRANCE NOW FACES. AND HE SAYS THE U-S EXPERIENCE SHOWS THAT POLITICAL "CO-HABITATION" CAN WORK IN THE INTERESTS OF FREE PEOPLE WHO ELECT A DIVIDED GOVERNMENT.

MR. MCCURRY SAID U-S FRENCH RELATIONS HAVE NOT BEEN IMPAIRED DURING PAST EPISODES OF SHARED RULE, AND THAT U-S OFFICIALS LOOK FORWARD TO WORKING WITH A GOVERNMENT HEADED BY SOCIALIST LEADER LIONEL JOSPIN.

THE ELECTION OUTCOME IS CONSIDERED LIKELY TO DELAY EFFORTS FOR A UNIFIED EUROPEAN CURRENCY. THE WHITE HOUSE SPOKESMAN DECLINED COMMENT ON THAT ISSUE, OTHER THAN TO SAY THAT U-S TREASURY SECRETARY ROBERT RUBIN BELIEVES AN INTEGRATED CURRENCY SYSTEM IN EUROPE WILL BE GOOD FOR GLOBAL MARKETS. // OPT // MR. MCCURRY SAID THE TURN OF EVENTS IN FRANCE IS UNLIKELY TO AFFECT THE LONG-RUNNING DISPUTE OVER FRANCE'S INSISTANCE THAT THE UNITED STATES YEILD CONTROL OF NATO'S SOUTHERN COMMAND TO A EUROPEAN OFFICER. // END OPT // (SIGNED)
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02-Jun-97 10:49 AM EDT (1449 UTC)
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Source: Voice of America

[10] U-S / KOSOVO TRIAL (S-ONLY) BY VALONDA R. BRUINTON (STATE DEPARTMENT)

INTRO: THE UNITED STATES HAS EXPRESSED CONCERN ABOUT THE CONVICTION OF 20 ETHNIC ALBANIANS ON TERRORIST RELATED CHARGES IN SERBIA'S KOSOVO PROVINCE LAST WEEK. A STATE DEPARTMENT SPOKESMAN MADE CLEAR THE UNITED STATES IS DEEPLY CONCERNED BY TERRORISM BUT SAID THE TRIAL WAS MARRED BY SERIOUS JUDICIAL IRREGULARITIES. FROM THE STATE DEPARTMENT, V-O-A'S CORRESPONDENT VALONDA BRUINTON HAS MORE.

TEXT: SPOKESMAN JOHN DINGER SAID U-S EMBASSY OFFICIALS AND OTHER INTERNATIONAL OBSERVERS ATTENDED THE TRIAL. BUT BASED ON THEIR ASSESSMENTS, HE SAID THE UNITED STATES BELIEVES THE CONDUCT OF THE TRIAL DID NOT MEET CONTEMPORARY JUDICIAL STANDARDS.

EVIDENCE WAS NOT CONTROLLED, DEFENDANTS WERE FREQUENTLY DENIED ACCESS TO THEIR ATTORNEYS DURING THE PROSECUTION OF THE CASE AND THE JUDGE REFUSED TO ALLOW A NUMBER OF RELEVANT INTERVENTIONS BY THE DEFENSE TO BE ENTERED INTO THE OFFICIAL COURT RECORD.

THE DEFENDANTS WERE CONVICTED OF MEMBERSHIP IN AN ILLEGAL GROUP TRYING TO SEPARATE KOSOVO FROM YUGOSLAVIA AND JOIN IT TO ALBANIA. TWO OF THE DEFENDANTS WERE NOT PRESENT FOR THE TRIAL.(SIGNED)
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02-Jun-97 4:17 PM EDT (2017 UTC)
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Source: Voice of America

[11] U.S. / FRANCE POLITICS (S UPDATE) BY DAVID GOLLUST (WHITE HOUSE)

INTRO: THE CLINTON ADMINISTRATION SAYS IT IS READY TO WORK WITH THE LEFTIST COALITION THAT WILL FORM THE NEW GOVERNMENT IN FRANCE. VOA'S DAVID GOLLUST HAS DETAILS FROM THE WHITE HOUSE.

TEXT: ADMINISTRATION OFFICIALS SAY THEY EXPECT CONTINUITY IN FRENCH POLICY DESPITE THE ELECTION OUTCOME THAT LEAVES PRESIDENT JACQUES CHIRAC SHARING POWER WITH A SOCIALIST-LED COALITIION OF THE LEFT. WHITE HOUSE SPOKESMAN MIKE MCCURRY SAYS PRESIDENT CLINTON WANTS A GOOD RELATIONSHIP WITH ALL FACTIONS IN WHAT WILL BE A DIVIDED FRENCH GOVERNMENT:

A TIME WHEN THE FUTURE OF EUROPE IS VERY MUCH ON THE MINDS OF THOSE OF US IN THE UNITED STATES THINKING OF THE FUTURE OF THAT CONTINENT, INCLUDING THE PRESIDENT, WE WOULD SEEK A VERY ACTIVE, PRODUCTIVE, WARM RELATIONSHIP WITH ALL ELEMENTS OF THE FRENCH GOVERNMENT.

MR. MCCURRY SAID PRESIDENT CLINTON'S OWN EXPERIENCE WITH A REPUBLICAN LED CONGRESS SINCE 1994 SHOWS THAT A GOVERNMENT OF COHABITATION -- WITH A PARTISAN SPLIT BETWEEN THE LEGISLATIVE AND EXECUTIVE BRANCHES -- CAN STILL WORK FOR THE INTERESTS OF THE NATION. (SIGNED)
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02-Jun-97 2:52 PM EDT (1852 UTC)
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Source: Voice of America

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