January 7, 1994

The Clinton Administration today cut by more than $1 billion the amount of clothing and fabrics China can export to the United States, retaliating for what it said were Chinese attempts to get around American limits on imports by shipping goods into the United States through other nations. American apparel manufacturers quickly welcomed the Administration's punitive action, since it will slightly curb China's ability to compete with American-made goods and possibly save some jobs. But some American retailers complained that consumers could face shortages and higher prices, particularly low-income shoppers who may depend on some of these illicit Chinese sweaters, knit shirts and cotton trousers. The retailers urged the Administration to negotiate a settlement with Beijing.

Smoke billowed from burning homes along a battlefront in the southern part of this city today after predawn artillery barrages were followed by furious infantry clashes and heavy shelling that lasted until dusk. Soldiers of the Muslim-dominated Bosnian Government and Sarajevo radio reports said the Serbs had launched the attack. Serbian radio blamed the Bosnian Army for starting the clashes, which took place along a front line near the old Jewish Cemetery.

After a year in which "endaka" -- the rise of the yen -- struck fear into Japan's leading industries, the Japanese currency is now in retreat. The strengthening of the dollar against the yen since the dollar's historic low point in August, amounting to a rise of more than 12 percent, could lead to improved profits for Japan's automobile and electronics giants and help pave the way for a slow but eventual recovery of the stagnant Japanese economy, company officials and economists suggest. Toyota Now Sees Profit Last summer, for instance, when currency rates had fallen to just above 100 yen to the dollar, the Toyota Motor Company said it might report its first operating loss ever. But with the dollar having risen, Tatsuro Toyoda, the company's president, recently reaffirmed that the company now expects a small operating profit in the current fiscal year ending June 30.

He checks into hotels under assumed names and slips into public appearances through back doors or side entrances. He begins earnest speeches on health care or timber and then ends up talking about his sexual failures and who kissed whom first. For Senator Bob Packwood, his first tour of Oregon in more than four months finds him in the curious role of Senator Surreal.

International The Administration cut the amount of clothing and fabrics China can export to the U.S. by more than $1 billion in retaliation for what it said were attempts by China to get around American limits on imports by shipping goods through other nations. The punitive measure will not take effect until Jan. 17, so there is a chance that the two countries will come to an understanding. [ Page A1. ]