June 24, 1998

Congressional conferees agree to add to Internal Revenue Service reform bill measure proposed by Rep Bill Archer cutting holding period to qualify for most favorable capital gains tax rate to 12 months from 18, retroactive to Jan 1; Pres Clinton's aides expect Clinton, who pushed for 18-month holding period in 1997 tax law, to sign bill; Congressional aides say provision will cost Government about $2 billion over 10 years; Republican leaders are now expected to seek cut in top capital gains tax rate (M)

AT&T Corp nears deal on acquiring Telecommunications Inc, nation's second-largest cable television operator, in deal that could sharply expand AT&T's ability to provide Internet access and local phone service; seeks to acquire only TCI's cable properties, not its programming unit, Liberty Media, which already trades as separate stock; deal would give AT&T direct access to homes for first time since it spun off local phone operations in 1984 (M)

Pres Clinton is being lionized in China in advance of his visit as far-sighted statesman who shifted from initial attacks on China to current policy of close engagement; official media extol his courage in face of China-haters who are trying to derail emerging 'strategic partnership'; photos (M)

Ben Brantley reviews The Return of the Chocolate-Smeared Woman, one-woman show starring Karen Finley, presented by Bat Theater Company at Flea Theater; photo (M)

A powerful Congressman has used his influence to keep a tax break for the wealthy that no one had intended to be in the law in the first place. The beneficiaries are the heirs of a few hundred people each year who leave estates worth more than $17 million. Article, page A21.