July 4, 1998

Frito-Lay, Pepsico unit, faces task in resurrecting Cracker Jack, snack food that has been around for more than 100 years; consumers have complained that product lacked enough peanuts, tasted stale, and sometimes found no prize inside the box; while product represents tiny part of Frito-Lay's business, Beth Struckell, vice president in charge of the product, announces plans to rejuvenate Cracker Jack and predicts that by 1999 sales should be four times the current $45 million; plans include new packaging, better distribution, marketing aimed at children and more peanuts; photos accompanying chronology of product's evolution (M)

Mayor Rudolph Giuliani, in rare and pointed rebuke of his own child welfare officials, criticizes New York City's Administration for Children's Services for allowing two foster children to return to biological parents who are now charge with raping and sodomizing them; accuses Family Court Judge Nora Freeman, city lawyers and social workers of buying into flawed liberal philosophy of keeping troubled families together; Daniel Robacker and Theresa Fremgen and Fremgen's ex-boyfriend and two brothers are arraigned in case involving three children; parents are first cousins who were found to have 'borderline intellectual functioning' (M)

France and Italy play to 0-0 tie in World Cup quarterfinals; France wins, 4-3, on penalty kicks; photos (S)

Prime Minister Ryutaro Hashimoto hints that Japan may adopt permanent tax cuts in an effort to revive the economy and reassure financial markets; many foreign officials have learned to be wary, believing Hashimoto is sometimes in position to promise more economic measures than he can deliver; Washington has urged permanent tax cuts and other far-reaching measures to strengthen Japanese economy and reduce risk that recession in Japan will spread elsewhere (M)

Sweeping Privatization Announced in South Korea Looking for expedient ways to raise cash, the South Korean Government began a far-reaching effort to privatize large industries, most notably the giant Pohang Iron and Steel Corporation, the world's second-biggest steelmaker behind Nippon Steel of Japan.