Thursday, January 21, 1999
The University Daily Kansan
Section A · Page 7
7
Nation/World
Israelis accused of spying begin trial
The Associated Press
LARNACA, Cyprus — The trial of two Israelis accused of spying on Cyprus opened yesterday with the prosecution presenting radio scanners, a laptop computer, cellular phones and eight maps of the island. All had been seized from the defendants.
Udi Hargov, 37, and Igal Damary, 49, were arrested Nov. 6 at the small fishing town of Zigi on the southern Cypriot coast. The village is near military installations, and at the time of
their arrest, Cypriot military exercises with Greece were under way nearby.
The Israeli pleaded not guilty yesterday to a new charge, conspiracy to spy on Cyprus with intent to harm the country's interests. Earlier, they made similar pleas to charges of espionage and unauthorized possession of telecommunications equipment.
If convicted, the two face up to 10 years in prison.
Their case has strained relations with Israel, whose growing military cooperation with Turkey has
become a source of serious concern to Cyprus, more than a third of which is occupied by Turkish troops.
Turkey invaded Cyprus in 1974 after a brief coup by Greek Cypriots seeking to unite the island with Greece. Turkey since has kept an estimated 35,000 troops in a breakaway state declared by Turkish Cypriots in 1983.
When the two Israelis were arrested, police said they made repeated calls to a telephone number in Tel Aviv, believed to be that of Israel's Mossad spy agency.
At the time, Cyprus was expected to receive a shipment of Russian missiles; the deployment of the weapons, which Turkey opposed, since has been canceled.
Israel denies the two men were spying on Cyprus on behalf of Turkey but has not said they were doing on the island. Former Israel Prime Minister Shimon Peres has implied they were on an anti-terrorism mission but gave no details. Prosecutor George
Prosecutor George Papaloannou presented 23 exhibits to the small Larnaca courtroom today. He
Richard Bachman/KANSAN
said the scanners -- illegal on the island -- were used to pick up radio frequencies.
Greenspan predicts stock market trouble
The Associated Press
WASHINGTON — While calling the economy's current performance outstanding, Federal Reserve Chairman Alan Greenspan expressed worries yesterday that the high-flying stock market could be headed for a tumble that may spell serious trouble down the road.
Greenspan also criticized a key part of President Clinton's Social Security rescue plan, saying the government could damage the economy by investing huge sums of money in the stock market.
His concerns gave support to views that the central bank is unlikely to rush to cut rates further unless global turmoil sends markets into a severe downturn such as occurred last fall.
As Greenspan read his statement, the Dow Jones average fell 55 points, but by midafternoon, it was up 85 points.
Greenspan, an influential voice Congress often turns to on economic matters, said he supported Clinton's major idea to put 62 percent of the government's budget surpluses into Social Security's reserves.
But he expressed serious reservations about a part of Clinton's plan that would allow a government board to direct about a quarter of
those savings into stock market investments.
Rather, Greenspan said it was more important to use budget surpluses to reduce the federal debt as a way of boosting the national savings rate.
The government's channeling trillions of dollars throughout the years into U.S. companies would eventually lower America's productivity rates, Greenspan said.
Microsoft maintained that its browser wasn't a separate product from newer versions of Windows
Although stocks have been climbing into record territory this
Greenspan: Says surplus should be used to reduce debt
The global economic crisis threatened to flare anew last week when Brazil, the largest economy in Latin America, was forced to devalue its currency.
year, Greenspan said a tumble in stock prices could quickly spill into the real economy.
Most economists are looking for growth to slow markedly in 1999 as the drag from foreign turmoil finally begins to bite. But the slowdown has yet to occur and for that reason, economists don't believe the Fed will move anytime soon to cut rates.
Microsoft browser war does not disturb stocks
The Associated Press
WASHINGTON — The government focused part of this week on what was widely seen as the weakest link in its antitrust case against Microsoft: the company's decision to build Internet browser software into its popular Windows operating system.
But its questioning of Richard Schmalensee, who works for the Massachusetts Institute of Technology, largely broke down about semantics Tuesday, as both sides argued about the meaning of "browser" the software that lets people view information on the Internet.
The government charged that Microsoft Corp. illegally tied separate products by distributing its browser free within Windows. This move dramatically changed the industry but was partially vindicated last year by a federal appeals court.
When exactly Microsoft made that decision was the issue the government tried to highlight Tuesday. The government maintained that the decision was made after June 1995 to try to crush Netscape, whose own rival Internet software once earned tens of millions of dollars.
and therefore can't be subject to antitrust tying claims.
Microsoft frequently cited a June appeals court ruling that bundling of its Internet software with Windows 95 was legal and a genuine
integration because consumers benefited. Legal experts have said the appeals court decision largely undermined the government's
trying claim, which had been filed months earlier.
The antitrust trial had little impact on Microsoft's earnings. It reported Tuesday a 72 percent increase in second-quarter profits.
Microsoft had net income of $1.98 billion and diluted earnings per share of 73 cents for the quarter ending Dec. 31, up from $1.13 billion or 42 cents a share a year ago. Revenues for the quarter were $4.94 billion, up 38 percent from $3.59 billion a year ago.
The antitrust trial—and other cases Microsoft is fighting—has affected the company's general and administrative costs. Greg Maffei, Microsoft's chief financial officer, noted that those expenses had risen to $149 million from $106 million, because of higher legal costs.
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Monday: $1.00 Draws-
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Thursday: $1.50 Jam Jams of Bud, Bud Light, and Coors Light 75¢ Draws
Friday: $1.50 Miller High-
life bottles $3.00 LaBatt's
Oil Cans
Sunday $2.25 Calls
$4.00 Double
$1.00 cans of PBR
Thursday, Jan. 21st
8:30-11:30
Saturday: $3.00 Large Premium Bottles
The University of Kansas School of Fine Arts Lied Center Swarthout Chamber Music Series presents