<p> The White House revealed that the Justice Department had subpoenaed
files belonging to the President and Hillary Clinton that pertain
to their investment in the Whitewater Development Corp. in Arkansas.
The Clintons had already agreed to hand over the papers; the
effect of the subpoena--which the Administration said it requested--will be to make it a federal crime for anyone to divulge
any information contained in the files. Five boxes of papers
have been given to the Justice Department, with more to come
in the next two or three weeks. The delay, said the White House,
was because of the need to "catalogue" the papers. Attorney
General Janet Reno said she might seek a court-appointed special
prosecutor to pursue the case if a new special-prosecutor bill
passes in Congress.
</p>
<p> Presidential Trip
</p>
<p> After attending his mother's funeral in Arkansas, President
Clinton proceeded with his first major European tour since taking
office. He will attend a NATO summit meeting in Brussels during
which he is expected to defend his plan that permits only very
limited association with NATO for former Soviet-bloc countries.
Clinton will also visit Moscow, where he will encourage Russian
President Boris Yeltsin to carry on with his economic reforms
but be more mindful of those who are suffering under them.
</p>
<p> Condoms on the Air
</p>
<p> The Department of Health and Human Services unveiled a series
of television and radio ads that are intended to encourage teenagers
to use condoms or practice abstinence.
</p>
<p> Disincentivizing Gun Dealing
</p>
<p> Treasury Secretary Lloyd Bentsen presented a plan that would
raise the fee for a gun dealer's license from $66 to $600 (just
last year the fee was only $10). Bentsen says he hopes the increase
would prevent 70% of license renewals. The proposal would also
tighten regulations for gun dealers who fail to keep proper
records of their sales.
</p>
<p> Packwood Fights Back
</p>
<p> Oregon Senator Bob Packwood claimed that one of the women accusing
him of sexual misconduct had later kissed him on her own several
times and had asked to borrow money. Gena Hutton, a former Packwood
campaign coordinator, denied the Senator's account. Packwood
made his first visit to Oregon in four months; at various appearances
and speeches, he was taunted by demonstrators calling for his
resignation.
</p>
<p> Skater Attacked
</p>
<p> An unidentified man attacked U.S. figure skater Nancy Kerrigan--a contender for an Olympic gold medal--as she practiced
for the U.S. championships in Detroit. The assailant struck
Kerrigan in the knee with a club and fled. The attack was reminiscent
of the stabbing of tennis star Monica Seles in Germany last
year. Kerrigan has withdrawn from the nationals but may yet
compete in the Olympic Games next month, if the U.S. Figure
Skating Association decides to offer her a place on the team.
</p>
<p> WORLD
</p>
<p> Mexico's New Year's Rebellion
</p>
<p> Nearly 100 people were killed in fighting as peasant rebels
seized four towns in the southern Mexican state of Chiapas on
New Year's Day. Announcing that their struggle was "for work,
land, housing, food, health care, education, independence, freedom,
democracy, justice and peace," the Zapatista Army of National
Liberation, composed largely of Indian descendants of the Maya,
declared war on the government of President Carlos Salinas.
Mexican armed forces used tanks, planes, rockets and helicopter
gunships to drive the guerrillas--estimated to number as many
as 1,500--into heavily forested mountain areas near the Guatemalan
border.
</p>
<p> North Korea Nuke Deal
</p>
<p> U.S. officials announced that they had reached "an agreement
in principle" with North Korea to allow that country's seven
declared nuclear facilities to be visited once by international
inspectors. Two possible nuclear sites that the North Koreans
have not acknowledged are not included in the agreement.
</p>
<p> Bosnia's Deadly "Truce"
</p>
<p> During the 12-day holiday "truce" across Bosnia, 106 people
were killed and 407 wounded, according to Bosnian radio reports.
Since peace talks were broken off in Brussels on Dec. 23, the
Serbs have intensified their artillery attacks on Sarajevo;
in a single day last week, they fired 1,353 shells on the besieged
capital, the heaviest bombardment in months. Peace talks are
scheduled to resume next week in Geneva.
</p>
<p> Two Fed Up over Bosnia
</p>
<p> Citing frustration with the United Nations' continued inability
to halt the massacre in Bosnia, the head of the 10,000-troop
U.N. peacekeeping force there resigned his commission. Lieut.
General Francis Briquemont of Belgium said, "There is a fantastic
gap between all these Security Council resolutions, the will
to execute those resolutions and the means available to commanders
in the field." Meanwhile, Warren Zimmerman, the last U.S. ambassador
to Yugoslavia before it disintegrated, resigned from the State
Department in disagreement with U.S. policy toward Bosnia.
</p>
<p> Middle East Talks Back On
</p>
<p> Israel and the P.L.O. agreed to resume negotiations that had
been halted for a week after a dispute over the outcome of their
previous talks. The two sides will meet again in Egypt this
week to try to resolve key issues that have long frustrated
them: control of border passages to the Gaza Strip and the West
Bank near the town of Jericho and the size of the Palestinian
enclave in Jericho.
</p>
<p> Australian Bush Fires
</p>
<p> The worst wildfires in a half-century raged across southeastern
Australia, killing three people and burning 740,000 acres of
brush and forest. Police suspect that many of the more than
100 fires were deliberately set.
</p>
<p> BUSINESS
</p>
<p> The Paramount Saga
</p>
<p> Hours before a deadline to make another bid for Paramount Communications,
Viacom, Paramount's preferred suitor, announced an agreement
to merge with video-rental giant Blockbuster Entertainment.
This combination will provide Viacom with the financing needed
to counter QVC Network's hostile bid for Paramount.Viacom's
new nearly $10 billion offer, though valued at slightly less
than QVC's, raises the cash portion of the Viacom bid to $6.4
billion, about $700 million more than the cash in QVC's offer--which QVC is free to increase.
</p>
<p> Federated Seeks Macy
</p>
<p> Federated Department Stores (which owns Bloomingdale's, Abraham
& Straus and Burdines) bought a major interest in R.H. Macy
& Co. (which owns Macy's, Bullock's and I. Magnin) in an attempt
to create a department-store chain that would be the nation's
largest. For $450 million, Federated purchased half of the Macy
secured loans owned by the Prudential Insurance Co. with an
option to buy the remaining half. Macy is in bankruptcy, and
Federated hopes to convert the debt holdings into control of
Macy by crafting a yet undisclosed reorganization plan. Macy
is cool to the idea, and other retailers may be ready to offer
competing bids.
</p>
<p> MCI Bypasses Local Bells
</p>
<p> MCI Communications announced a $2 billion plan to connect corporate
customers in 20 of the nation's biggest cities to its long-distance
network directly--bypassing the local Bell telephone companies
and avoiding the access charges, now totaling $5 billion a year,
that MCI pays them for their linkup. The move intensified calls
in Washington for reduced regulation of the telecommunications
industry.
</p>
<p> SCIENCE
</p>
<p> Harvesting Fetal Ovaries
</p>
<p> An Edinburgh researcher sparked an international ethical debate
with his suggestion that women who cannot provide viable eggs
of their own might be able to become pregnant with ovaries transplanted
from aborted female fetuses. At 10 weeks, a female fetus has
made all the eggs she will carry as a woman. Dr. Roger Gosden
reported that he has used the technique successfully in mice
and that the possibility of an experiment in humans is just
a few years away.
</p>
<p> What Killed Mars Observer?
</p>
<p> No one will ever know for sure why the billion-dollar Mars Observer
spacecraft permanently lost contact with NASA last August, just
before it was to begin its surface-mapping mission. But an investigative
panel has concluded that the problem was most likely a fuel
leak and not, as first suspected, a faulty transistor. According
to the theory, as the probe's fuel tanks were being pressurized
for a final maneuver, the fuel ignited prematurely, blowing
a hole in Observer and throwing it into an uncontrollable spin.
</p>
<p> By Christopher John Farley, Sophfronia Scott Gregory, Michael
Quinn, Jeffrey Ressner, Jeffery C. Rubin, Alain L. Sanders,
Sidney Urquhart
</p>
<p>STREISAND: THE YEAR IN TANTRUMS
</p>
<p>Barbra Streisand was paid millions of dollars to give two New
Year's concerts at the MGM Grand in Las Vegas, and she criticized
the hotel's rooms and other facilities from the stage. Maybe
she was just having a bad day, but she seems to have a lot of
them.
</p>
<p> January 1993 Streisand reportedly insisted that unless she introduces
Clinton, she'll refuse to perform at the Inaugural Gala.
</p>
<p> Jan. 29, 1993 Streisand is said to have snapped at Senator Arlen
Specter, "How do you Republicans feel now that you've lost everything
and are all losers?"
</p>
<p> February 1993 In a letter to Vanity Fair, Streisand denounces
comments made about her by her former diet nutritionist.
</p>
<p> May 1993 In Washington she becomes angry because the marble
floor of her hotel bathroom is cold.
</p>
<p> May 23, 1993 In an interview with the Los Angeles Times, Streisand
bitterly condemns journalists who made snide comments about
her interest in politics.
</p>
<p> July 1993 Streisand is reported to have complained about Bill
Clinton's meeting with Sharon Stone, saying, "Why Sharon Stone?
She doesn't know anything about policy."
</p>
<p> December 1993 Streisand lights into billionaire Marvin Davis
after he sends her a photo of her with Clinton at Davis's home.
Streisand says she didn't authorize the photo and it's of her
bad side.
</p>
<p>INSIDE WASHINGTON
GERGEN IN ECLIPSE?
</p>
<p>Clinton aides observe with some irritation that DAVID GERGEN
was slow to defend his boss last month as the Whitewater and
Arkansas-trooper stories gathered force. With the arrival of
tough New York lawyer Harold Ickes as deputy chief of staff
and his designation as leader of the Whitewater damage-control
team (of which Gergen is only a member), Gergen now has a strong
rival. Gergen himself was finally out front last week, giving
speeches, appearing on TV chat shows and generally defending
Bill and Hillary Clinton.
</p>
<p>WINNERS & LOSERS
WINNERS
</p>
<p> DETROIT PISTON ISIAH THOMAS
</p>
<p> He retires with management job, a share of the team, $55 mil
</p>
<p> JAY LENO
</p>
<p> After difficult year and a near firing, NBC extends his contract
</p>
<p> FERNANDO MATEO
</p>
<p> Carpet seller suddenly a global spokesman for gun exchanges
</p>
<p>LOSERS
</p>
<p> BRIGITTE BARDOT
</p>
<p> Faces ruin as marriage to fascist hurts funding for animal charity
</p>
<p> N.F.L. COACHES
</p>
<p> Two trade punches on national TV; three lose jobs after bad
seasons
</p>
<p> MEXICAN PRES. CARLOS SALINAS
</p>
<p> Rebellion shatters Mexico's NAFTA image of peace and stability
</p>
<p>THE CRYSTAL BALL
</p>
<p> "One day we walked past the American embassy, and I said to
Bill, `Someday you will come back as ambassador or cultural
attache,' and I laughed. Bill looked at me very seriously and
said he well might."--BEDRICH KOPOLD, FATHER OF A CLASSMATE
OF BILL CLINTON'S AT OXFORD UNIVERSITY AND CLINTON'S HOST DURING
A VISIT TO PRAGUE IN 1970
</p>
<p>SHOULD AULD CONNECTIONS BE FORGOT...
</p>
<p> As their somewhat wonky way of celebrating New Year's, President
Clinton, Hillary Rodham Clinton and their daughter Chelsea joined
about a thousand other people on Hilton Head Island, South Carolina,
for the "Renaissance Weekend," an annual gathering the Clintons
have attended for a decade, at which successful liberal yuppies
talk about policy and personal growth and make contacts. To
be included in the Renaissance Weekend, one must promise not
to discuss publicly what happens there, but despite this vow
of omerta, some information could be gleaned:
</p>
<p> What Bill Talked About in His Speech: You've got to be persistent.
</p>
<p> What Hillary Talked About in Her Speech: Making choices--I
made the choice to follow Bill to Arkansas, and I've never regretted
it.
</p>
<p> Bill's Favorite Activity: Golf.
</p>
<p> Hillary's Favorite Activity: Hanging out with friends, including
FDIC nominee Ricki Tigert, attorney Renee Ring, and Patsy Davis,
wife of lawyer Joel Klein, who replaced Vince Foster.
</p>
<p> Zoe Baird Moment: In audience when Bill said you sometimes end
up hurting people.
</p>
<p> Dress Code: Ultracasual. Hillary in jogging suit and no makeup.
</p>
<p> How This Year Was Different from Last Year: No printed, networker-friendly
list of participants' professional affiliations.
</p>
<p> Cost: About $1,000, not including air fare and hotel room.
</p>
<p> What Rush Limbaugh Was Doing over the Same Weekend: Sailing
in the Virgin Islands with Bush Commerce Secretary and millionaire
Robert Mosbacher and his wife Georgette.
</p>
<p>DISPATCHES
AFTER THE APOCALYPSE
By RICHARD WOODBURY, in Waco, Texas
</p>
<p> For those who were residents of Waco last year, while the Bureau
of Alcohol, Tobacco and Firearms and the FBI were laying siege
to David Koresh and his followers, few have more painful memories
than Robert and Marcia Spoon, who live on narrow Double EE Ranch
Road, across from Mount Carmel, the former Branch Davidian compound.
Startled by gunshots early on the Sunday morning in February
when agents of the ATF raided the compound, the couple and their
daughter Amanda, now 6, waited out the fighting crouched in
back rooms. Later, with only the clothes on their backs, they
fled across a pasture to safety and took refuge for 70 days
with friends and then in an apartment in town. When they returned--after the fire in April that killed more than 70 Davidians--they found bullets in their home and the place overrun by
FBI agents, who had used it as a command post. Now, months later,
they still drive 100 miles a week to take their daughter, who
remains traumatized by the events, to a therapist. "It won't
be over for us till there are no more Davidians," says Robert
Spoon.
</p>
<p> Spoon, like many of his neighbors, has heard rumors that Davidian
cultists eventually hope to build a new worship center at the
apocalyptic site, and he is concerned that some of Koresh's
followers could come back. Eleven cult survivors go on trial
this week in San Antonio for conspiracy in the murder of the
four ATF agents who died in the February raid, and it is anybody's
guess whether some of them will be acquitted.
</p>
<p> In the days before the trial begins, tourists are making the
curious trek to Waco, as they have steadily since the nightmarish
days. They don't see much out on EE Road: piles of broken beams
and concrete, the husks of two old cars and a trailer, and the
Silver Streak Express--Koresh's bus, which somehow survived
the flames and which security guards use as a warming hut--are about all that remains of the compound. A broken high chair
and rusted toys lying in the gray earth provide reminders of
the young dead.
</p>
<p> "It's eerie, being up here this close," says Craig Martin, a
Waco TV production supervisor who covered the siege from a mile
away. He is snapping photos of his parents, Baptist missionaries
visiting from Thailand. "I could see how it burned so fast in
this wind," observes a tourist from Minnesota, "but what really
happened?"
</p>
<p> The only person on the scene providing a definitive answer to
this question is Amo Bishop Roden, a Branch Davidian woman who
for months has conducted a lonely sit-in in an effort to reclaim
the land once owned by ex-cult leader George Roden, her former
husband, who is in a state mental hospital. Amo emerges from
a tiny metal shack to point visitors to an altar she has fashioned
from concrete slabs and sell them $15 videotapes purporting
to show how the FBI started the fire with a tank-mounted flamethrower.
She hints of missing corpses and CIA involvement.
</p>
<p> In town, the lingering embarrassment over seizing the world's
attention on account of such gruesome events has faded. "The
whole world knows where Waco is now," says restaurateur Sam
Citrano. "We're going to put it to positive advantage."
</p>
<p>INFORMED SOURCES
What Paris Really Wants in Bosnia
</p>
<p> Paris--To hear some officials talk, Paris wants Washington
to take broad military action in Bosnia. Defense Minister Francois
Leotard led the charge last week, calling on "the U.S. to intervene."
The actual French position, worked out at a meeting chaired
by President Francois Mitterrand, is limited: it calls for the
U.S. and its allies to back a proposal authorizing the local
U.N. commander to order NATO air strikes against units firing
on U.N. troops.
</p>
<p> Another Curious Whitewater Connection
</p>
<p> New York--The coziness of the relationship between Bill Clinton
and the International Paper Co. has been questioned in the press
because some months after he, as Governor of Arkansas, gave
the company major tax breaks, it sold Whitewater development
land. And lobbyist Betsey Wright, Clinton's longtime chief of
staff in Little Rock, appears to have ties to the firm; she
now works for the Wexler Group--one of whose clients is the
American Forest and Paper Association.
</p>
<p> Uncle Sam Wants You--to Play Golf
</p>
<p> Washington--Senator Dennis DeConcini says the U.S. government
wastes millions of dollars a year on golf, and he wants to do
something about it. The Democrat from Arizona recently learned
that the military maintains about 280 golf courses for its personnel
at the cost of some $6 million a year. DeConcini wants to open
up the military courses for civilian use for about a dollar
a hole, a plan that could net the Treasury $100 million a year.
