January 13, 1995

International President Clinton won approval for a plan to assist Mexico from top Congressional leaders. The plan is expected to provide an enormous package of loan guarantees, and the agreement is aimed at trying to keep the Mexican financial crisis from erupting into a foreign policy clash with the Republicans. [ Page A1. ] A prototype of a new warplane was introduced by Japan, the first major weapon developed with the United States. While production would be a shot in the arm for American and Japanese companies hurt by cuts in government spending, the costs of the project are raising doubts about whether it should move ahead. [ D1. ] Companies Microsoft will tie its planned network to the Internet, in a move that will make the company one of the world's largest commercial providers of access to the global computer network. [ D1. ] Citicorp reported sharply higher earnings five days early in an effort to show that its fourth quarter had not been hurt by the turmoil in Mexico. J. P. Morgan said earnings fell in the quarter largely because of a $72 million loss from bond trading. [ D1. ] Burger King's chief is leaving to head the parent of the Denny's chain, Flagstar. The executive, James B. Adamson, has been credited with righting Burger King in his 18-month tenure. [ D3. ] A former national sales manager of Gtech was cleared of fraud charges by a Federal judge in Kentucky. [ D3. ] Xerox will pay $960 million to increase its stake in Rank Xerox. The deal is expected to increase the company's access to markets in Europe and Asia. Shares of Xerox surged on the news. [ D3. ] Canada's upstart in long-distance phone service may be rescued by plan in which Rogers and AT&T will increase their stake. [ D4. ] Saatchi & Saatchi sued Maurice Saatchi and three former top executives in a London court, seeking to prevent the four men from starting a rival advertising agency. [ D14. ] Markets The dollar tumbled against the yen and the mark. The dollar is suffering from the turmoil in both emerging market countries like Mexico and developed countries like Canada and Spain. [ D1. ] Stocks ended mixed, but essentially unchanged. The Standard & Poor's 500 index slipped 0.03 point, to 461.64. [ D4. ] Gold prices led a rally in precious metals, recovering from recent eight-month lows. Natural gas prices continued to slump. [ D13. ] Treasury prices declined, hurt by weakness in the dollar. [ D14. ] The Economy Oil is flowing from once-sputtering wells, thanks to aggressive development efforts by independent producers like Apache and Anadarko. They have bought thousands of fields from companies like Amoco and Texaco that considered them marginal. [ D1. ] Orange County sued Merrill Lynch. The California county contends that the firm sold it risky and unsuitable securities. [ D2. ] The F.C.C. allocated a part of the airwaves for satellite radio broadcasting. But new services competing with local AM and FM stations are still several years away. [ D14. ] Today's Columns An accord with Intel was scored a victory for Advanced Micro Devices by Wall Street. But Intel may still have an insurmountable lead over the competition. The microprocessor feature wars are going to accelerate rapidly, and Intel has the financial muscle to finance new factories and designs. Market Place. [ D4. ] A new campaign for Chivas Regal Scotch whisky uses a series of wry contrasts to underscore the elusive quality of being a star, without seeming boastful. Stuart Elliott: Advertising. [ D15. ]

It is starting to look as if a major subparagraph of the House Republicans' "Contract With America" -- one that is intended to make it almost impossible for Congress to raise taxes -- lacks enough Republican support to survive. And it now appears that a more moderate proposal has the best chance of winning House approval, and perhaps Senate approval, too, as part of the balanced budget amendment to the Constitution.

While Shinto priests chanted and waved sacred branches, Japan introduced the prototype of its FSX fighter today, the first major weapon jointly developed with the United States. Once the focus of controversy with Washington over Japan's growing industrial competitiveness, the FSX may still face a troubled future. With the cold war over and Japan's military procurement budget tighter, questions are being raised about whether the FSX should move from prototype to production.

OFFICIAL SAYS WATER TESTS WERE SKEWED The city official who supervised the testing of New York City's drinking water for the last decade said that senior environmental officials repeatedly skewed results of water-quality tests in recent years by ordering workers to avoid potentially contaminated sites. A1. WHITMAN-PATAKI HONEYMOON HITS A BUMP Gov. Christine Todd Whitman of New Jersey and Gov. George E. Pataki of New York are sniping at each other over Mr. Pataki's intention to nominate a political ally to head the Port Authority of New York and New Jersey. Mrs. Whitman's aides say she was perturbed both by the choice of someone inexperienced in management on the scale of the Port Authority, and by the fact that she was not consulted. A1. NEW YORK CITY GIULIANI CRITICIZES STATE FISCAL BOARD With the city's budget situation worsening, Mayor Giuliani called the State Financial Control Board "an anachronism" and said its criticisms of his budget proposals had been partisan and "totally hypocritical." B3. NOT JUST SAVING MONEY, ADVISER SAYS The Mayor's senior adviser on a new program to make more able-bodied, childless welfare recipients work for their benefits and to scrutinize new applicants more aggressively said that its main focus was not to save money. B3. MOVIE CREW TURNS CITY HALL GIDDY In a place accustomed to cameras, the spotlight and constant notoriety, the film crews that spent several weekends working at City Hall still produced an unmistakable giddiness in even the most blase of city officials. B3. M.T.A. SEEKING TENANTS FOR COLISEUM Ending an impasse with City Hall about what to do next with the vacant New York Coliseum, the Metropolitan Transportation Authority is seeking proposals from prospective tenants who would use the complex's vast exhibition hall for up to three years and finally generate some income for the authority. B3. Herman Mourino was expecting a box of fresh basil. What he got was freshly minted $100 traveler's checks. B2. A 22-year-old admitted that he had known that a dog he was to pick up at Kennedy International Airport was carrying cocaine. B3. REGION PATAKI WALKS A TIGHTROPE On a frenetic first lobbying trip to Washington, Governor Pataki found himself caught between his instinct to show loyalty to the new Republican leaders of Congress and his need to protect his state from the potential impact of their budget-cutting policies. B6. SONGWRITERS BATTLE RESTAURATEURS Depending on who calls the tune, groups that collect royalties for songwriters are spying on unwary businesses and setting them up for lawsuits, or simply forcing deadbeat business owners to pay composers whose works enhance their profits. So bitter are relations between the two groups that a bill aimed at establishing some ground rules has sailed through the New Jersey Assembly and is before the Senate Commerce Committee. B5. A New Jersey father must stand trial for taking nude photos of his 6-year-old daughter. B6. Neediest Cases B2 Holiday schedule B3 Chronicle B4

Advocates for welfare recipients are regrouping for an uphill battle against Republican proposals to overhaul poverty programs. They face immense hurdles: a public fed up with the ineffectiveness of existing welfare programs; a Democratic minority still reeling from election losses, and an Administration that seems reluctant to challenge key elements of the Republican plans. Article, page A22.