News Digest

By Ginia Bellafante, Christopher John Farley, Sophfronia Scott Gregory, Michael D. Lemonick, Eric A. Meers, Sidney Urquhart

NATION

The Health-Care Plan at Last

Even as Hillary Rodham Clinton briefed congressional leaders on her husband's yet to be announced health-care plan, a 239-page draft document detailing the scheme was leaked to the press late last week. The plan would cost the government $700 billion over the first five years and be funded in part by $105 billion in new taxes on large corporations as well as additional taxes on tobacco and alcohol. The White House will also seek $238 billion in Medicare and Medicaid savings. On Capitol Hill, the First Lady said the Administration was open to discuss changes in the plan, but not from "a standpat, negative, naysaying opposition."

Gore vs. Inefficiency

Referring to the U.S. government as a "quill pen in the age of WordPerfect," Vice President Al Gore unveiled a plan with more than 800 recommendations on how to restructure it -- and theoretically save $108 billion over the next five years. Gore appeared on Late Show with David Letterman to soft-sell the scheme, at one point ridiculing the arthritic federal bureaucracy by strapping on safety goggles to smash a government-approved ashtray in the officially sanctioned way.

Illiterate America

A sweeping study ordered by Congress found that nearly half of all adult Americans read, write and understand arithmetic so poorly that they have difficulty performing modern life's basic tasks. The survey noted that 90 million U.S. adults don't have the language skills to write a business letter or read a bus schedule. About a quarter of those people are immigrants unfamiliar with English, but surprisingly, 6% of the low-literates work as managers.

Verdict on a Burning

Two white men were convicted of attempted murder, kidnapping and robbery for setting a black man on fire last New Year's Day in Tampa, Florida. Mark Kohut, 27, and Charles Rourk, 33, could face life in prison.

Another Murder in Miami

On the other side of Florida, a German tourist was shot and killed by robbers as he and his wife drove in from the Miami airport. Uwe-Wilhelm Rakebrand was shot in the back after he refused to stop when a van bumped his rental car from behind on the freeway. A young couple and an accomplice have been charged in the murder.

Lesbian Yes, Mother No

A county circuit judge in Virginia ruled last week that a woman's lesbianism made her an unsuitable parent. Sharon Bottoms lost custody of her two-year-old son to her mother Kay Bottoms. Kay complained that the boy called Sharon's lover "Dada."

New Surgeon General

In a 65-to-34 Senate vote, Dr. Joycelyn Elders of Arkansas was confirmed as Surgeon General. The controversial candidate endured a three-month battle in which conservatives tried to depict her as a free-sex radical out of touch with the mainstream.

Court Date for Dr. Death

Dr. Jack Kevorkian will stand trial in Michigan for helping a young man commit suicide. A district judge ruled last week that a new state law prohibiting assisted suicide had to be enforced, rejecting arguments from Kevorkian's lawyers that the law was unconstitutional. Kevorkian, meanwhile, was present at the apparent suicide of another Michigan resident -- the 18th case on his record.

National Service Go-Ahead

The Senate voted 57 to 40 in favor of a compromise version of President Clinton's plan that would allow 100,000 college students to swap public service (1,700 hours) for tuition money ($4,725 a year for two years). The White House hopes to have the program up and running next year.

WORLD

Giving Peace a Chance

Brushing aside the protests of hard-liners on both sides, Israel recognized the P.L.O. as the representative of the Palestinian people and the P.L.O. recognized Israel's right to exist unmolested. Yasser Arafat also suggested that Palestinian residents of the occupied territories end their nearly six- year-long anti-Israeli rebellion. Other long-standing Middle East stalemates began to budge as well: Jordan was poised to conclude an "agenda for peace" with Israel as soon as a P.L.O. deal for self-rule was signed. Following Israel's lead, the U.S. will also begin direct talks with the P.L.O.

Black and White Together

Multiracial national elections won't happen until next spring, but black South Africans are already getting a measure of power. The white leadership has agreed to a transition council, made up of representatives from all political parties, that will help oversee several departments of the government, including the army and the police. The council, like the country, will be mostly black; in response to its creation, the African National Congress will call for an end to international sanctions against South Africa. Nevertheless, violence aimed at derailing the measures is expected to continue.

Bosnian Business as Usual

Bosnian Muslim President Alija Izetbegovic flew to Washington to ask President Clinton to set a deadline for the use of force if Bosnian Serbs do not lift their siege of Sarajevo. Instead, President Clinton advised him to head back to the bargaining table with Bosnian Serbs and Croats; Clinton said the U.S. will not intervene militarily, though U.S. troops could help monitor a peace agreement, if Congress approved. Back in the Balkans, one big surprise: Bosnian Croats admitted what the Muslims have long been claiming -- that conditions for Croat-held Muslim prisoners are inhumane.

Welcome Back, Ferdy

The body of exiled dictator Ferdinand Marcos finally returned to the Philippines for burial, four years after he died and seven years after he was overthrown in a popular revolt backed by the military. The government of Corazon Aquino had resisted a Marcos return, but her successor, President Fidel Ramos, a cousin of the dictator, judged that enough time had passed. Only 7,000 people from Marcos' home province greeted the body on its return; his widow Imelda had predicted 1 million.

Fire Fight in Somalia

U.S. helicopters fired into a crowd in Mogadishu, apparently killing or wounding more than 100 people, including women and children. U.N. peacekeeping officials insisted the shooting was a last resort to save the lives of U.N. troops who were being attacked. The attackers on the ground, supporters of fugitive warlord Mohammed Farrah Aidid, killed a Pakistani soldier and wounded two more and also wounded two Americans. The U.S. Senate, increasingly concerned about the situation, passed a resolution urging that the President seek congressional approval if he wants to keep the troops there beyond Nov. 15.

Omens in Haiti

Haiti's new Prime Minister, Robert Malval, reinstated Port-au-Prince's mayor, Evans Paul, despite threats by armed goons, among them civilian police auxiliaries, that they would kill both men if the mayor tried to recover his old job. Paul was ousted along with President Jean-Bertrand Aristide in a 1991 military coup. After the mayor's return,the thugs who had seized city hall killed six Aristide supporters. Days later, businessman Antoine Izmery was dragged out of Mass and executed. Aristide is expected to return to power next month.

BUSINESS

IBM Has a Yard Sale

Beleaguered IBM plans to get rid of 40% of its real estate holdings in the U.S. Executives hope to save $250 million a year by breaking or renegotiating leases and renting out or selling surplus space -- including the company's former North American headquarters in Purchase, New York, and 300,000 sq. ft. of a Manhattan high-rise.

Lorenzo Grounded Again

A Department of Transportation judge, citing a "pattern and practice of disobeying orders," ruled that Frank Lorenzo's proposed new airline, ATX, should not be allowed to fly. The airline industry's unions, who blame Lorenzo for the downfall of Eastern Airlines, led the fight against the start-up to keep their bitterest corporate antagonist out of the business.

Risky Rentals

Avis, Hertz and other rental car companies are using computer screenings to refuse cars to as many as 1 in 10 potential customers. Drivers can be turned down for having too many traffic violations and for drunk-driving convictions.

Mobile Moguls Merge

Renault of France and Volvo of Sweden announced they would merge, forming the sixth largest automaker in the world and the second largest in Europe. The companies predict the marriage will save them $5.2 billion by the end of the century.

SCIENCE

Save That Tiger

Interior Secretary Bruce Babbitt has formally certified that both Taiwan and China are flouting international agreements by continuing trade in products made from endangered tigers and rhinos. Tiger bones and rhino horns are used in traditional Chinese medicine, but both countries will have to weigh tradition against the threat of possible trade sanctions.

MEDIA & THE ARTS

Jack the Rip-Off

Warner Books canceled The Diary of Jack the Ripper just one month before it was to appear in bookstores. A dealer in historical documents deemed the writings fake since, among other findings, the penmanship was not Victorian and ink tests showed the papers were written around 1921.

New Divisions for Baseball

Major league baseball teams will play the same teams more often and play-offs will be longer starting next year, thanks to a new format that will chop the American and National leagues each into three geographical divisions. A wild- card qualifier from each league would join the division leaders in the play-offs. The makeup of each of the six divisions may be finalized this week.