December 19, 1996

The Clinton Administration and the President's friends have created more than a dozen private funds for political and personal causes, including paying legal bills and building a White House jogging track. Three funds alone, for example, were set up to help Webster L. Hubbell, the former Justice Department official, with his expenses when he was accused and convicted of bilking his former law firm.

Plan for Balkans Arrests Washington is drawing up plans for an American-led paramilitary police force to capture suspects indicted on war crimes charges in the former Yugoslavia, officials said. Page A11. Opportunity Plan by Texaco In a response to a scandal stemming from a racial-bias lawsuit, Texaco said it would sharply widen business dealings with minorities. Page D1. Encryption Software Ruling The Clinton Administration suffered a setback in its efforts to control the export of data-scrambling software as a judge ruled that such controls were unconstitutional. Page D1.

Japanese officials appear apprehensive about what to expect from Peruvian Pres Alberto K Fujimori as Marxist guerrillas continue holding hundreds of international dignitaries hostage at Japanese Ambassador's residence in Lima; note Fujimori has made reputation by being tough and unrelenting toward terrorists; call for priority on lives of hostages (M)

Informed sources say that three months after Dick Morris quit as President Clinton's political consultant during sex scandal, New York City Mayor Rudolph Giuliani met Morris to explore whether he might help run his re-election campaign (M)

Metro Matters column discusses vote by both houses of New York State Legislature to dismantle New York City's 27-year failed experiment with decentralizartion and vote to consolidate power in chancellor and Board of Education (M)