 MAN VS. MACHINE -- For the second straight day, Garry Kasparov and the I.B.M. computer Deep Blue played to a draw. B3.    MINORITIES GAIN -- New York City has succeeded in increasing the number of black and Hispanic students at the best high schools. B4.    GIVETH AND TAKETH AWAY -- Deciding that a chance to develop New York's prized Coliseum site was reward enough, Mayor Giuliani has withdrawn a tax-break offer. B2.  

INSIDE METRO

Allan Houston led a 16-0 third-quarter run and scored 27 points, and Patrick Ewing had 24 points and 16 rebounds to lead the Knicks in the N.B.A. playoffs.     Article, page B15.

EASTERN CONFERENCE SEMIFINAL: GAME 1

National Weather Service says winds that tore through Jersey City on May 6 had gusts up to 70 miles an hour, but did not qualify as tornado (New Jersey Daily Briefing) (S)

Windy? Yes. Twister? No.

City College of New York marks its 150th anniversary on May 7; 9,620 students at Harlem campus are aware, sometimes frustratingly so, of college's rich tradition; while college is now very different from white, largely Jewish institution of decades past, with far more immigrants and more students who require remedial courses, they say it continues to meet its historic mission of transforming New York City's poor and working class and sending them off as doctors, engineers and social workers; photos (M)

Proletarian Harvard Turns 150, Its Mission Expanding

 Retreat on Managed Care  New York's effort to place Medicaid recipients in managed care is being jeopardized by companies scaling back enrollment efforts. Page B1.     Stocks Stumble After Rally  Stocks plunged, with the Dow falling 139.67 points, after recent gains fueled by optimism about earnings, inflation and interest rates. Page D1.     French Heartland Likes Euro  The Loire Valley, at the heart of France, supports a common European currency, casting surprising effects on national elections. Page A3.  

INSIDE

Camille Paglia interview with Mario Puzo, the 76-year-old novelist whose books include The Godfather, The Last Don, which has been adapted for a CBS miniseries, and The Fortunate Pilgrim, a recently re-released novel of 1964, which he considers his best book; photos (M)

It All Comes Back To Family

 Timing Set for Possible Cut In Gains Tax to Take Effect  Though Democrats and Republicans on Capitol Hill fell back into disagreement over details of their Federal budget plan, the Republicans did answer one important question about the deal, saying that yesterday would be the effective date of any reduction in taxes on capital gains.    A statement from Bill Archer (above), chairman of the House Ways and Means Committee, and William V. Roth Jr., chairman of the Senate Finance Committee, said no specific provisions of the capital gains tax changes had been decided. But the announcement of the effective date, after the close of the stock market, was good news for investors who dumped shares. $(Page D24.$)

BUSINESS DIGEST

Dominica Cruz, grandmother of three children who died in Trenton apartment house fire on May 4, is charged with child endangerment (New Jersey Daily Briefing) (S)

Grandmother Is Charged

United States Government report holds Swiss Government deliberately failed to respect 1946 accord to return hundreds of millions of dollars in assets Nazi Germany looted from European banks and Holocaust victims; faults US for 'lack of attention' and lack of will and for giving up leverage by unfreezing Swiss assets in US; holds Swiss bankers' indifference to needs of Holocaust victims and their heirs persisted until international pressure in past year forced Switzerland to offer fraction of nation's profits from war as reparations; says small but significant fraction of monetary gold included jewelry and gold teeth-fillings stolen from Holocaust victims but finds no evidence that Swiss banks knew of gold's gruesome origins; 11 US agencies helped compile report, which makes no policy recommendations; photo (M)

U.S. Report Says Swiss Reneged On Accord to Return Nazi Gold

Evelyn Nieves Our Towns column on Catskills IDEA (Institute for the Development of Entertainments Arts); notes that organization was founded in 1992 by retired Broadway producer Stan Raiff on assumption that old resort has great past and great future; quotes Cissie Blumberg, who runs bus tour for institute (M)

Looking Back For a Future In the Catskills

New York State's ambitious drive to place nearly all of its three million Medicaid recipients in managed care plans is facing serious obstacles as many of companies that run those health plans have begun to scale back their efforts to enroll new recipients or have pulled out of state program altogether; companies complain that state's reimbursement rates have been cut so drastically in recent years that it has become difficult for them to provide adequate care without sustaining huge losses; graph (M)

Some H.M.O.'s Pulling Away On Medicaid

Market Place column on Nine West Group's accounting problems that has resulted in Securities and Exchange Commission inquiry and its investor relations problem with several institutional investors and securities lawyers (L)

Nine West Faces Problems on Two Fronts

Little-noticed provision in welfare reform law that sets aside $250 million to teach children about sexual abstinence has touched off nationwide debate, as states decide how to use the money or even whether to take it; law requires funded programs to teach that sex outside marriage is likely to be harmful physically and psychologically and not to teach use of condoms or other contraceptives; states are worried about undermining efforts to teach safe sex and about having to put up some matching funds; New York health officials plan to apply for funds; NJ officials are undecided (M)

States Slow to Take U.S. Aid To Teach Sexual Abstinence

Hasbrouck Heights residents, for second time since 1993, vote against merging their schools with Wood-Ridge schools (New Jersey Daily Briefing) (S)

School Merger Plan Defeated

Army charges Sgt Maj Gene C McKinney, its highest-ranking enlisted soldier, with sexual misconduct and indecent assault involving four servicewomen over nearly three years; he denies charges, news conference; Army opened criminal probe after retired Sgt Maj Brenda L Hoster publicly accused him; photo (M)

TOP ARMY SOLDIER NAMED IN SEX CASE

Pamela Harriman's estate will be auctioned at Sotheby's from May 19 to 21 and is expected to sell for $4,240,790 to $5,958,660; 1,164 lots range from an important John Singer Sargent oil painting to a can opener; photos (M)

Rushing to Auction: The Harriman Haul

The question of whether a special prosecutor is needed to pursue an investigation into Democratic fund-raising for President Clinton's re-election is provoking a potentially serious division between Attorney General Janet Reno and the head of the Federal Bureau of Investigation, Louis J. Freeh.    Ms. Reno, who was criticized by White House aides for acting quickly to refer matters to such independent counsels in the President's first term, has refused to yield her department's control of an investigation to a free-ranging prosecutor. But Mr. Freeh, who has shown a growing concern about the investigation of campaign finances by more than doubling the number of people assigned to it, has taken the position that the scale of the matter requires the appointment of an outside counsel.  

Campaign Inquiry Splits Justice Dept.

Federal Communications Commission unanimously approves sweeping reshuffling of phone rates; moves will generally keep down local phone rates for consumers while lifting rates for businesses; long-distance rates for all customers will fall 5 percent to 15 percent under related accord between FCC and AT&T Corp, which will pass along savings from lower access charges; Chmn Reed E Hundt says new rules will deregulate industry and promote connection of schools and libraries to Internet; some lawmakers and industry experts say moves fall short of FCC's goal of stripping subsidies from phone industry and moving industry closer to free-market model; consumer advocates and industry leaders generally laud changes; diagram (M)

BIG RESTRUCTURING OF PHONE CHARGES APPROVED BY F.C.C.

Imperial Chemical Industries PLC will buy specialty chemicals division of Unilever for $8 billion in cash, one of biggest transactions in British history; deal continues upheaval in specialty chemicals industry, where companies have been changing hands; Imperial says acquisition will add 'formidable new foce in worldwide costings, materials and specialty chemicals' (L)

Imperial to Buy A Unilever Unit For $8 Billion

Special report on Israel's use of force in interrogating suspected terrorists; coercing prisoners is common in region, but Israel is alone among its neighbors, and among Western democracies, in seeking to codify and legally justify practice; human rights groups in Israel and abroad score use of what they call torture; Israel denies 'moderate physical pressure' is torture (L)

In Israel, Coercing Prisoners Is Becoming Law of the Land

Federal Judge Alfred M Wolin rules that New Jersey Sports and Exposition Authority will have to allow controversial rock band Marilyn Manson to appear as scheduled at Giants Stadium on June 15 (New Jersey Daily Briefing) (S)

Rock Band to Play On

Texas border economy by many measures is depressed, and officials in border towns blame North American Free Trade Agreement; in Mexican border states, hundreds of factories have opened since NAFTA took effect; job losses to Mexico are accelerating, especially among workers already at bottom in pay and skills; since treaty took effect at beginning of 1994, losses, mostly to Mexico but some to Canada, have grown by more than a third each year; Labor Department total of 124,000 includes record 7,600 jobs lost in April alone; Clinton Administration officials say that lower trade barriers with Mexico and higher American exports still leave Americans with far more new jobs than they are losing; they say layoffs are more the result of peso's crash in late 1994 and lowered cost of Mexican labor than trade agreement; tables; photos (L)

In Texas, Labor Is Feeling Trade Accord's Pinch

State Sen John H Ewing and other lawmakers say Gov Christine Todd Whitman has done poor job of selling her pension bond plan to public (New Jersey Daily Briefing) (S)

Bond Plan on the Road

Journal Square Restoration Corp on May 8 will break ground on $4.5 million project to make Jersey City square more pedestrian friendly (New Jersey Daily Briefing (S)

Sprucing Up Journal Square

Pres Mobutu Sese Seko leaves Kinshasa, capital that is bracing for arrival of rebel forces, for state visit to Gabon that many see as his final departure from Zaire; will attend regional conference on Zairian crisis; many of his aides insist he will return; rumors spread of stealthy departure of many of his close associates; Government forces have waged and lost perhaps their fiercest battle against rebels, Kenge, last major defensive position before capital; photo (M)

Mobutu Leaves Capital of Zaire In What Many See as End to Rule

China Southern Airlines Flight 3456 was a scheduled domestic passenger flight from Chongqing Jiangbei International Airport to Shenzhen Huangtian Airport. On 8 May 1997, the Boeing 737 performing this route crashed during the second attempt to land in a thunderstorm.

China Southern Airlines Flight 3456 crashes on approach into Bao'an International Airport, killing 35 people.

May 8, 1997

Headlines from May 8, 1997

INSIDE METRO

EASTERN CONFERENCE SEMIFINAL: GAME 1

Windy? Yes. Twister? No.

Proletarian Harvard Turns 150, Its Mission Expanding

INSIDE

Billboard 200

Share My World

Carrying Your Love With Me

Spice

Life After Death

Space Jam

Historical Events

Historical Context for May 8, 1997