Group Nine Media’s Ben Lerer Absolutely Loves Facebook’s Watch

Ben Lerer of Group Nine Media Inc., who runs a collection of websites and apps probably unknown to anyone under 30, has seen the future: it’s Facebook Inc.’s  Watch.

In a conversation held at the Paley Media Center on Thursday, Oct. 26 with Facebook executive Dan Rose, Lerer expressed vindication that his company’s sites — Thrillist, NowThis, The Dodo and Seeker — can get access to millions of viewers because of the quality of their work. No longer are they pushed to the back of the room, or a high number of the TV dial because they’re not owned by a major media company such as Walt Disney Corp. or 21st Century Fox Corp.

“What I love about the platform is that it’s a meritocracy,” Lerer said. “If you make great content, people will see it. If you make not as great content, people aren’t necessarily going to see it. With traditional media, a lot of distribution was sort of granted through partnerships, through carriage rights. And now, you have this world where quality is very important, and there’s more transparency to that.”

Rose, who heads Facebook’s expansive partnership group, said the Watch tab on the social network which debuted in September, is it’s answer to video creators such as Group Nine who have long wanted a place to show their work. Facebook created Watch in order to showcase higher-quality, episodic show that can attract mass audiences and, by extension, sell advertising.

A video team from NowThis was in Las Vegas on Oct. 1, Lerer told the audience of TV and advertising executives, ostensibly to create a segment on the city’s new NFL football team. But when the shootings at the Route 91 Harvest music festival occurred, NowThis’ project evolved into something more ambitious. It will appear on Watch later this year.

For Facebook, such projects open up new possibilities, most prominently, to become an alternative to pay-TV. For the moment, Watch is something of a cross between Alphabet Inc.’s YouTube and its news feed. There’s a fair amount of reality TV fare, though Rose hinted that over time, higher-quality material will rise to the top of the platform.

“Media content has exploded, and people want to see more of it,” Rose said. “As a result, publishers are creating more video, and new publishers are emerging that didn’t exist before. And as we adapt to that landscape, we’re talking with partners about what’s working and not working, and then we make changes in the platform.”

One area of some tension has come from Facebook’s relationship with news publishers. Yes, they want their articles to appear on the platform, but they also want to be appropriately compensated.

When Facebook’s Campbell Brown in July said the company would launch a subscription-based news product this year, David Chavern, president and chief executive of the News Media Alliance, which represents 2,000 newspapers and digital publishers in the U.S. and Canada, said he wasn’t overly optimistic it would solve the problem of his members’ content appearing on the site but getting little to no money for it.

“There’s been a long-term request that Facebook have better integration with the publishers’ subscription models,” Chavern said. “We’re hopeful. I would love for it to be a great product that was really great for publishers, but we don’t know yet.”

The News Media Alliance is pushing to win an antitrust exemption to allow publishers to collectively negotiate content deals with platforms, most pointedly Google and Facebook. Chavern said the very business models that sustain legacy newspapers are at risk given that Facebook and Google swallow about two-thirds of all digital advertising.

Facebook has come under some criticism of late for claiming that it hasn’t morphed into something of a media company. And while no one disputes its roots in technology, Facebook has become a giant clearinghouse for getting and sharing news. Echoing Facebook COO Sheryl Sandberg’s recent declaration that Facebook isn’t a media company, Rose asserted the platform serves as an aggregator that doesn’t make editorial decisions.

“Brand matters, and in news this is where we hear it the most,” Rose said. “Publishers who are investing in quality journalism have a brand, and that brand says something about whether the content is likely to be informative or accurate. What we’re not going to do is make a judgment about whether this is a publisher we believe you should see. We’re going to let people make that judgment themselves.”

And that’s fine with Lerer. Group Nine was formed a year ago when Discovery Communications Inc. made a $100 million investment in Lerer’s websites while adding The Seeker to the group for a 35% stake in the new company.

NowThis employs about 120 people at its Soho office in New York, making a slew of short videos based on news stories. Some are repackages of popular trending headlines, some are commentary, and some are just plain wacky. In just a few years, NowThis has become the largest video news publisher on Facebook, with 2.4 billion video views each month.

“Publishers like us; we’re able to start thinking about IP,” Lerer said. “So not just putting content on a platform where it can feel disposable. We can create things that are higher quality, that can have a longer shelf life, where you can build your own fan bases. The best media businesses are going to build repeatable, scalable franchises that can be taken to different platforms and different windows and go internationally.”

And that’s where the media business is headed.

Lead Paint Remains Scourge of NYC Public Housing

For Megan Charlop, who runs New York City’s only lead safe house, the solution is obvious: Pass a new lead paint law, enforce it and save children’s lives. Period.

Nearly 17 years ago, the city passed a landmark lead poisoning prevention act. But the law has yet to do what its supposed to do: keep kids from getting sick.

Advocates had hoped that 1982’s aggressive Local Law 1–which requires landlords to strip, replaster and repaint all walls painted before 1960–would prevent lead poisoning, which results in permanent brain damage for thousands of New York City children each year.

But almost since the day the law passed, successive city administrations have argued that it is excessive, expensive and therefore unenforceable. The city has ignored the law whenever possible and fought lead paint prevention activists in court to keep from having to enforce it.

“The law isn’t respected, the city skimps on the health code, and landlords aren’t taken to task if they fail to follow regulations,” Charlop says. “Right now, it doesn’t work.”

This year, the city ran out of stalling tactics and dodges. Faced with a fourth citation for contempt of court and possible jail terms for non-compliance, city housing and health officials have finally developed regulations to enforce the law. They are rules that, if followed, would require landlords to de-lead every building in the city–even ones that pose no immediate threat to children.

On the eve of the passage of these new regulations, advocates on all sides concede that the law is probably too tough. A most unlikely coalition–including Mayor Rudolph Giuliani, the landlord lobby and environmental and children’s advocates–agree that the city needs a new lead paint law. They just can’t agree on what it should require.

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In old, poorly maintained apartments, lead paint doesn’t stay on the walls. The paint tastes sweet, so toddlers are drawn to suck on paint chips on window sills and floors. Water damage makes the paint crumble into a fine powder that kids inhale.

Once in the bloodstream, the metal causes serious nervous system problems for young children. Lead-poisoned kids have trouble learning and concentrating, and the impact on their gastrointestinal tract can be severe. Almost immediately after ingesting lead, children begin to act differently. Some become lethargic, others become hyperactive. This is why lead-based paints have been outlawed for decades.

When her 3-year-old son Gary got poisoned, says Glenda Newton, his behavior changed dramatically. “He was acting crazy, hitting himself, having temper tantrums. He’d never done that before,” she says. He was later diagnosed with a blood lead level of more than 45 micrograms per deciliter, more than four times the Centers for Disease Control’s threshold for lead poisoning.

Newton’s landlord had refused to fix a hole in her roof, so lead paint chips rained down from the ceiling onto the floor of her apartment. “He gave me every excuse in the book,” she says. “All he did was put up a plastic sheet. When it rained, the sheet would fall down.” Gary had to have five days of intravenous chelation therapy in Jamaica Hospital to clear the lead from his blood.

When the hospital released Gary, they told Glenda not to take him home again, sending the family to Charlop’s lead safe house until they could find a new apartment. The house, run by Montefiore hospital, takes up two floors of a neat brick building across from Van Cortlandt Park in the Norwood section of the Bronx. It provides a handful of families with a clean place to live for one to two months, until they find a new home or their apartments can be cleared of lead by the landlord or city.

According to the city Department of Health, between 1,500 and 2,000 kids under age 6 are newly diagnosed with lead poisoning each year (although last year’s tally of 1,049 cases was considerably lower). These statistics may understate the problem, since the city uses a higher threshold to measure lead poisoning than the feds recommend. Public Advocate Mark Green’s staff has found that about two-thirds of all New York City apartments and houses have lead paint, and more than 30,000 children in New York City have had elevated lead levels in the blood–81 percent of them Latino or African-American.

The solution seems simple: Write and pass a law that requires landlords to clean up dangerous peeling paint. But there’s too much money at stake for lead paint laws to be simple. Department of Housing Preservation and Development Commissioner Richard Roberts has said that enforcing Local Law 1 will cost the city $100 million annually and cost landlords–including the city itself–an average of $15,000 to clean each unit.

So the history of lead paint legislation in New York City has been a story of stall tactics. Prior to the early 1980s, landlords were forced to remove the lead from their apartments only after a kid had been poisoned. City Councilmember Stanley Michels passed Local Law 1 in 1982 to avert lead poisoning tragedies, but the city ignored the law. Three years later, the New York City Coalition to End Lead Poisoning (NYCCELP) sued to make the city enforce the law. In 1989, the New York State Supreme Court held the city in contempt of court for failing to enforce Local Law 1. The city lost its appeal two years later.

In 1994 the Giuliani administration was held in contempt of court for the same problem, and the next year the court increased the pressure by ruling that the matter could be considered a class action lawsuit. The city was held in contempt a third time on April 30, 1997. Last March the city lost another appeal.

This time, the judge issued a court order that demanded the city write rules that follow directly from Local Law 1. Last fall, in response to this explicit order–and the judge’s threat to throw HPD’s Richard Roberts in jail–HPD and the Health Department produced regulations that would finally give teeth to the 1982 law.

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Ironically, today everyone recognizes that Local Law 1 should never have been enforced. Removing intact lead paint generates more toxic dust than leaving it alone. Advocates also concede that requiring complete abatements could push landlords in low-income neighborhoods into bankruptcy. But now, the only thing that could prevent the city from enforcing the onerous old law is a new law.

There’s already one waiting in the wings. Two years ago, Councilmember Michels produced Intro 205, which focuses on peeling paint and window sills rather than insisting that all apartments be stripped of their lead paint. The bill’s sponsors say that under this law, clean-up costs could be as low as $450 per occupied apartment.

However, landlord advocates like the Rent Stabilization Association argue that even this more moderate bill would encourage owners to abandon housing rather than pay the costs of abatement. They say that the clean-up requirements, like relocating tenants during partial abatements and requiring windows to be completely replaced, are too tough and would end up benefiting lawyers more than tenants or landlords.

The Giuliani administration doesn’t like the bill either. Health and housing officials refuse to consider the bill, or even admit that it exists. Michels tried during a contentious December City Council hearing to get Roberts to say the words “Intro 205.” Roberts refused. “They’re simply not taking this seriously,” Michels said afterward.

Attorneys with NYCCELP want the city administration to give Intro 205 a chance. They’ve offered a deal: If the city agrees to consider the bill, they promise not to push the courts to enforce the most recent contempt order. Assistant Corporation Counsel Daniel M. Richmond wrote back on January 6 that the city would not concede to “any parameters or requirements” concerning new legislation.

So Intro 205 is unlikely to ever get to the City Council floor for a vote–or even to the housing committee for a formal hearing. Instead, Housing Committee Chairman Archie Spigner may push his own legislation. He acknowledged in mid-January that “there is a draft of a bill that has been circulated and is being discussed.” A spokesperson for Council Speaker Peter Vallone has confirmed that discussions on an alternative bill are underway between Spigner, the council and the mayor’s office.

Lead paint activists assume that Spigner will push a landlord-friendly bill on the council–as he has done twice before. But this time, they may be in for a surprise. Spigner told City Limits in early January that Intro 205 has “elements that can be the basis of a negotiated consensus bill.”

Charlop remains suspicious of a last-minute political deal between Giuliani, Vallone and the landlord lobby that would critically weaken lead paint laws.

“These are scary times,” she says, as she slices up an apple for one of the kids staying at the home. “Suddenly, after all these court cases and all these years of discussion, it’s as if something has to happen very quickly. I’m afraid a good piece of legislation won’t get passed…. We’re talking about poor families in old and decaying buildings. Unless the city puts real pressure on landlords, children will continue to get very sick.”

NY City Council Firebrand Margarita Lopez Tries a Mellower Approach

As a sixth grader back in San Juan, Puerto Rico, Margarita López watched helplessly one afternoon as the school tough slugged a friend of hers in the chest. Incensed, she gathered together all the girls on the playground.

If this bully hits anyone else, she told them, we’re going to retaliate. She handed each a safety pin plucked from the patches on her jean jacket, and the troupe gathered around him, warning him never to hit a girl again.

Unfazed, the bully reeled back and punched another girl. So the group brought out their tiny safety pins and attacked the boy with pinpricks, sending him loping away in pain.

When the principal called her in, young Margarita respectfully acknowledged that she had indeed organized the reprisal. Then, to the man’s surprise, she calmly informed him that her group would respond the same way if the bully punched any other girls. Astounded but charmed, the principal issued a mild rebuke and excused her.

“I’m not sure if the pins were right,” the 47-year-old López says today. “I realize now that fighting fire with fire never works. You don’t utilize the same method of injustice to fight back. You have to be better and smarter.”

For López, now a New York City Councilwoman, that translates into leading 100 marchers to City Hall to protest the city’s sale of a popular community center. But it also means quietly lobbying City Council Speaker Peter Vallone for increased funding to a local girls club and supporting the conservative Queens Democrat in his bid to unseat Governor George Pataki.

This isn’t the script anyone would have written for the most unreconstructed leftist elected to the City Council in recent memory, a lesbian activist who made her reputation as a passionate community organizer. When López replaced Antonio Pagán, a Giuliani Democrat backed by landlords and developers, Lower East Siders expected a dramatic political change.

But as López has revealed more of the charm that served her well in the principal’s office, she has confounded the expectations of both enemies and supporters.

For one thing, she’s not afraid to make deals. “I will not hide from saying that I want power. We should take power,” she says. “I’m sick and tired of progressives thinking that by nature power is bad. If we use power to benefit all of us, then there is nothing wrong with it.”

Her politics alone–pro-tenant, anti-privatization, green–won’t necessarily alienate her from the council. “Council members who portrayed themselves as outsiders or progressives who did run afoul of the leadership had problems because of how they conducted themselves rather than what their agenda was,” says the well-connected Brooklyn Councilman Ken Fisher. “Margarita has not made that mistake.”

She has come to the City Council at an unusual time, when term limits and the struggle between Vallone and Giuliani have unbalanced the traditional city power structure. López, who made her career helping the disenfranchised, is now poised to become an influential insider. Not bad for someone who didn’t speak English until the age of 26.

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In 1979, after college and some organizing efforts in Puerto Rico, Margarita López came to New York looking for work. She finished up her college degree in sociology at City College despite her limited English and went on to do coursework towards an master’s degree in social work at Columbia University.

Her first job in New York was for the now-defunct Association for Community Services on East 4th Street, earning $50 a week as a social worker. In the late 1980s, she took the position she would keep until the day she joined the council–homeless outreach worker at Goddard-Riverside Community Center, an Upper West Side settlement house.

“Her passion was for direct service work with the homeless,” says Goddard-Riverside organizer Larry Wood. “There are legends about her work with particular clients. One woman, who nobody else would go near with a 10-foot pole–she was dirty and had lice–Margarita stripped down and took a shower with her, to get her de-loused so the ambulance could take her.”

All the while, López spent her spare time organizing and campaigning for tenants’ rights. She got involved in Lower East Side public housing battles and squatter struggles as a volunteer organizer, and, eventually, as a district leader. Her work naturally led to building coalitions and brokering deals.

“She has a terrific ability to navigate the different waters of this political environment,” says Valerio Orselli, director of the Cooper Square Mutual Housing Association. He credits for building a coalition that guaranteed the survival of his Lower East Side low-income housing complex. “Most of all she is persistent,” he adds.

López has also made enemies, sometimes in spectacular ways. At one anarchic meeting of the Lower East Side community board, notorious for political vaudeville, board chair Louis Soler had her and a few others arrested. López sued for false arrest; Soler settled. Councilman Pagán subsequently wrote to then-borough president Ruth Messinger, asking that López be removed from the board. She sued him for libel; the case has yet to be decided.

López has also gone after bigger game, notably Assembly Speaker Sheldon Silver, probably the state’s most powerful Democrat. Last year, in a hotly contested council race, she ran against Silver’s aide, Judy Rapfogel. That primary exposed a rift in the highly Democratic district between progressives and Silver’s Grand Street group, more conservative, wealthier whites known by their co-ops’ location.

“I think it’s fair to say that in the past [López] has been divisive,” says Howard Hemsley, Rapfogel’s campaign manager. Hemsley had locked horns with López for years on familiar Lower East Side struggles over land use, gentrification and housing. For example, López supported the 1988 squatter occupation of Tompkins Square park; Hemsley, among others, credits the city with ridding the park of drug-dealing and crime. He vows to work for anybody who might run against her in a second-term race.

Rapfogel had the cash, the best election lawyers, a seasoned campaign staff and overwhelming union support. López had only two significant endorsements: Congresswoman Nydia Velázquez, the first Puerto Rican woman ever elected to the U.S. House of Representatives, and Assemblywoman Deborah Glick, a West Side lesbian activist.

But Margarita López had one huge advantage. She had been working the district’s housing projects and community centers for over a decade. “Twenty years of activism gets you to shake hands with a lot of brothers and sisters,” she says. Unlike other politicians, she had been able to make common cause between rent-regulated tenants and public housing tenants threatened with privatization. “More sophisticated political people told us not to worry about the projects [along the East River],” says her campaign treasurer Lisa Kaplan. “‘Those people don’t vote,’ they said. That was not Margarita’s strategy, and that conventional wisdom was absolutely proven untrue.”

Initial election reports handed Rapfogel the victory. The next day, The New York Times reported that Rapfogel “narrowly edged out Margarita López.” But López wasn’t ready to concede. Some 750 “emergency ballots” had been issued to voters whose names hadn’t shown up on lists at polling sites, ballots that get counted only in a contested vote.

Calling on friends in the Latino Elected Officials Association and the Victory Fund, a national gay and lesbian political organization, López challenged the results. When the voting machines were opened at election headquarters the next day and the paper ballots were tallied, Margarita López emerged the winner, 6,471 to Rapfogel’s 6,240–a victory margin of just 231 votes.

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Given her activist past, her narrow victory and her ongoing war with the state’s top Democrat, no one seemed more doomed to marginalization in the council than López. But she was lucky enough to step into office just as term limits were turning normally mousy council members into political warriors.

Gubernatorial candidate Vallone began to flex the council’s muscle, fighting with the mayor over the budget and Yankee Stadium. The council budget, passed in defiance of Giuliani’s spending plan, increased funding for neighborhood groups, López’s natural constituency. This put her in a rare position: having almost all of her wish list endorsed by the usually tight-fisted Vallone.

With López’s prodding, the speaker has introduced a bill that would prevent Guiliani from firing 1,000 homeless agency workers. The bill is likely to pass this year, and Vallone probably has the votes to override a Giuliani veto. She also enlisted Vallone’s help in fighting the sale of the Lower East Side’s beloved CHARAS/El Bohio Community Center, and she was a leading member of a team that successfully lobbied the speaker to secure a half-million dollars for the City-Wide Task Force on Housing Court, Legal Services and Legal Aid.

The budget battle isn’t over yet. But the mayor has succeeded in delaying the money the council intended for community-based organizations, and Vallone has yet to file the lawsuit that would force his hand.

Although de-funded groups are starting to lay off staff, López isn’t quite ready to pull a safety pin on Vallone. “People think it’s so simple how you divide a budget,” she says. “But you sit at that table. Let’s see how you would do it, and whether you would take the consequences for not funding certain things in order to fund other things.”

When council politics return to normal, López might not have the ear of the speaker, even though Vallone staffers say she’s been among a handful of council members to stump vigorously for the speaker. At some point, it’s almost certain she’ll have to decide whether to challenge the Democratic leadership or risk alienating her core supporters, some of whom have no patience for party politics.

López doesn’t accept the schism. “Progressives and people in our community must wake up and understand that they cannot continue talking about ‘Let’s empower our communities,’ and then not be responsible for the consequences of that.”

Garment-Workers’ Union Pushes Back Against Sweatshop Abuse

Frances Jackson makes her living sewing pants for Corbin Ltd. in Huntington, W.Va. A 16-year veteran of the company, Ms. Jackson says that a decade ago her factory made 4,400 trousers a day. Lately, that figure is down to 1,600.

The culprit? Competition, she says, from low-paying factories – commonly known as sweatshops – that are located both in the United States and in other nations around the world.

“My employer can’t win contracts against sweatshops that pay their workers much less than $5 an hour,” Jackson says.

So on a recent day this summer, Jackson and 2,000 fellow members of America’s largest garment workers’ union are fanning out over Capitol Hill to muster support for legislation that might help. Some 50 buses disgorge members of the union from Jackson’s home of Huntington as well as from Boston, Philadelphia, and Whiteville, N.C.

Although public attention to sweatshops was piqued in the spring of 1996 when it came out that entertainer Kathie Lee Gifford’s clothing line was made by exploited workers in Honduras and New York City, little progress has been made to curb the proliferation of such shops, says Ramon Rodriguez, an organizer with the Union of Needletrades, Industrial and Textile Employees (UNITE). The Department of Labor estimates roughly 22,000 sweatshops exist nationwide.

The union workers are pinning their hopes on the Stop Sweatshops Act, a bill sponsored by Sen. Edward Kennedy (D) of Massachusetts and Rep. William Clay (D) of Missouri.

The Stop Sweatshops Act would make large apparel retailers – such as Sears and Kmart – liable for ensuring that their clothing contractors abide by federal wage laws while operating safe and sanitary factories. A garment worker who failed to receive the minimum wage or overtime pay could petition the retailer who ultimately bought the clothing.

“The big clothingmakers rely on these sweatshops. We’ve got to make them responsible,” Jackson says.

The legislation would also substantially increase the number of federal inspectors, currently numbering about 900, who examine the more than 6.5 million workplaces nationwide.

While sympathetic to efforts to close sweatshops, retailers say the legislation would unfairly require them to do what the federal and state governments should do: police and penalize businesses that violate US labor laws.

“The problem with this bill is that it attempts to assign responsibility and impose penalties on people who are farthest away from the actual production – the retailers who buy goods,” says Morrison Cain, senior vice president of the International Mass Retail Association, an industry group that represents many of the country’s largest clothing stores.

“Just because we are the ultimate purchasers,” Mr. Cain says, “[that] doesn’t mean we control the process.”

Meanwhile, UNITE’s leaders say support from President Clinton and members of Congress for the proposed antisweatshop legislation has fallen far short of their expectations.

Maria Echaveste, White House deputy chief of staff, counters that the president remains committed to closing sweatshops. Garment unions, she notes, have bogged down separate negotiations to ensure that domestic and international clothing manufacturers abide by fair wage and labor standards. The planned enforcement policy relates to a contractor “code of conduct” signed two years ago by a partnership of retailers, unions, human rights groups, and the White House.

UNITE leaders want an impartial group to enforce the code, while retailers prefer in-house monitors.

In Congress, both the House and Senate versions of the antisweatshop legislation are stuck in committee. That leaves little chance the measure will get a floor vote this year.

If none occurs, says Ann Hoffman, UNITE’s legislative director in Washington, “We’ll start again next session.”

Thousands March in Spain’s basque Country to Protest Murder of ETA Hostage

Bilbao, Spain — Punching the air and shouting “Murderers!″, tens of thousands of Spaniards rallied in the streets Sunday to vent their anger over the killing of a young councilman by Basque separatist kidnappers.

Many of the demonstrators were among half a million people who marched Saturday along the same boulevards to plead for the life of Miguel Angel Blanco, who was abducted Thursday. That procession was led by Prime Minister Jose Maria Aznar, whose appeal for Blanco’s release was televised nationwide.

The 29-year-old accountant was found handcuffed and shot Saturday afternoon in a wooded area near the Basque city of San Sebastian. He died Sunday morning.

When the demonstrators flocked again to the streets of this Basque capital Sunday evening, they voiced their rage and grief, raising their fists and shouting “Murderers!″ and “Miguel! Miguel!″ They also called for an end to ETA, the group that kidnapped Blanco.

“We must stop being afraid of ETA and join together so that this terrorism ends once and for all,″ said Felix Maccoaga, a school teacher in Bilbao, 200 miles north of Spain’s capital, Madrid.

In Ermua, Blanco’s hometown, black ribbons and white sheets of mourning adorned balconies and thousands of mourners shouted his name and clapped as his body was driven up to the town hall to lie in state until his funeral.

Spaniards appeared deeply shaken after the slaying.

“I thought that after the march they wouldn’t kill him,″ said carpenter Felix Castillo. “I think the public is powerless to stop any of this.″

“It’s all very, very sad,″ said Sandra Pereida, standing at a bus stop. “Frankly, though, I thought ETA would kill him. That’s what they do.″

King Juan Carlos eulogized Blanco, the son of a construction worker, as an “innocent victim of fanatic terrorism.″ ETA inmate Joseba Carrasco, meanwhile, said he would begin a hunger strike to protest the murder from his jail cell in the southern Spanish city of Cordoba.

Blanco’s funeral, scheduled for noon Monday, is to coincide with an hourlong work stoppage across the Basque region.

Basque regional president Jose Antonio Ardanza urged Spaniards to attend one of the many candlelight vigils planned in memory of Blanco and in opposition to ETA.

“ETA is more lonely than yesterday, weaker than yesterday and more cornered than yesterday,″ said Ardanza. “Yesterday’s rallies have proved that the people in the street will win the battle against ETA.″

Pope John Paul II and Amnesty International were among those imploring ETA to release Blanco.

The events surrounding Blanco’s kidnapping and murder had consumed the attention of a Spanish public that prayed he would be spared.

After Blanco was seized Thursday, ETA said he would be killed unless some 450 ETA prisoners were transferred from jails around Spain to ones in the Basque region. The government refused.

ETA, an acronym for Basque Homeland and Freedom, has killed almost 800 people, mostly Spanish security force members, since it began fighting in 1968 for the creation of an independence Basque country in northern Spain.

The transfer of ETA prisoners to the northern Spanish region, supported by moderate Basque nationalist parties, has been routinely rejected by the Madrid government for reasons of security.

ETA’s political arm, Herri Batasuna, rejected calls to condemn Blanco’s murder. In the group’s first statement since Blanco’s murder, it said they were a victim of the “criminalization of Basque independence.″

Earlier Sunday, police in the northern city of Pamplona used tear gas and rubber bullets to break up fights between protestors and ETA supporters.

The prisoner’s support group Senideak blamed the government for Blanco’s death, saying that a mass transfer could have averted the execution.

Spain’s Former Covert Operations Chief Sent to Jail in Death Squads Scandal

MADRID, Spain (AP) _ A military tribunal convicted a former head of Spain’s spy agency today of leaking documents about a campaign against Basque separatists and sentenced him to seven years in prison.

Investigators suspect the leaked documents dealt with plans to create the death squads, which killed 27 people from 1983-87. The squads targeted members of the armed Basque separatist group ETA in their haven in southern France.

Col. Juan Alberto Perote, who ran the clandestine operations section of the government’s CESID spy agency in the mid-1980s, was arrested in June 1995 and served 21 months in prison before being freed on bail in April.

His lawyer’s office said Perote is unlikely to return to jail because of the time served before trial.

The Socialist government under former Prime Minister Felipe Gonzalez was ousted in elections last year partly because of voter anger over the death squad scandal.

Revelations about the death squads, and CESID’s phone tapping of King Juan Carlos, led to the resignations of Socialist Deputy Prime Minister Narcis Serra, Defense Minister Garcia Vargas and CESID director Emilio Manglano.

Perote claimed throughout his trial that Gonzalez knew about the death squads but did nothing to stop them. Gonzalez has repeatedly denied his government was behind the squads, which operated under the name Anti-Terrorist Liberation Groups, or GAL,

The Supreme Court last year indicted Gonzalez’s former interior minister, Jose Barrionuevo, accusing him of directing the death squads. His trial is pending. Barrionuevo’s second-in-command also stands charged in the case.

The intelligence documents leaked by Perote were published in Spanish newspapers. Although they discussed covert operations against Basques hiding out in France, they did not mention Gonzalez by name or discuss assassinating people.

The death squads targeted members of ETA, which since 1968 has killed almost 800 people in its fight for independence of northern Spain’s Basque region.

The GAL killings stopped after France began extraditing members of ETA _ an acronym for Basque Homeland and Liberty _ back to Spain.

2,000 Sheep Walk Through Madrid to Save Spain’s Livestock Pathways

MADRID, Spain (AP) _ The bleating of sheep mixed with clapping cow bells and the calls of leather-vested shepherds Sunday afternoon, but the scene was no idle pasture.

Two thousand sheep scampered through the busy thoroughfares and plazas of downtown Madrid, delighting urban onlookers. Shepherds led the wooly animals in a demonstration aimed at preserving traditional livestock paths crisscrossing the country.

“This used to be one of the pathways, so it makes sense that the sheep walk this way,″ said Moises Perez, a shop owner who watched the procession along the Calle Mayor, one of Madrid’s oldest streets.

A coalition of farms and ecology groups hope to maintain nearly 56,000 miles of livestock pathways, many dating back to the Middle Ages.

Keeping the routes open, says Hilario Villalvilla of the ecologist group Aedenat, helps curb urban and rural development, which in turn safeguards about 1 million acres of public land, protects wildlife and water resources, and preserves one of the traditions of rural Spanish life.

“This is an environmental issue but it is also a way of keeping alive something very close to Spanish culture,″ said Villalvilla.

Fresh from a summer spent in Spain’s cool northern mountains, the sheep are on a monthlong 560-mile trek back to their home farms near the western city of Caceres.

About 1.2 million livestock leave Spain’s parched southern plains in the summer. Only about 200,000 of them return home in the fall by migrating along pathways; the others make the trip on trucks or trains.

The preference for faster travel and the effects of development have led the paths, which extend from the Pyrenees Mountains in Aragon to the plains of Andalucia, to deteriorate over the past three decades.

But ecologists, backed by national laws mandating protection of the traditional pathways, hope to encourage more livestock owners to choose the cheaper, natural route.

Preserving the routes also will keep pathways open to walkers, bicyclists and naturalists, they note. The land also benefits: The sheep eat grasses and plants as they pass, thinning out potential forest-fire fuel, and leaving behind a load of _ ahem _ natural fertilizer.

Furthermore, the effort helps Spaniards uphold the cherished image of the solitary shepherd at ease walking with a curved wooden cane through country fields.

“I like to see the sheep, it reminds me of my younger days,″ said Jose Santos Villanueva, 73, who worked much of his life tending sheep near the city of Todelo south of Madrid.

The sheep, escorted by police and trailed by a city clean-up crew, circled the stone Puerta de Alcala arch before heading to nearby park lands for the evening.

Shepherd Jose Garcia said he was thrilled so many people came out to see the sheep. But the enthusiasm was mixed with weariness _ there is still a week remaining on the long trek.

“I’m a bit tired after so much walking,″ said Garcia, 25 “Actually, I’m more worried about the animals’ feet _ the ground here is awfully hard.″

Flash Flood Devastates Pyrenees Campground Leaving More Than 60 Dead

BIESCAS, Spain (AP) _ Flash floods raced through a Pyrenees Mountain camp jammed with hundreds of vacationers, carrying away cars, tents and campers in rivers of mud and debris. At least 62 people died.

Hundreds of divers, firefighters and other rescue workers moved into the area as dawn broke Thursday to search for survivors. Officials said 40 people remained missing by evening.

Police said 650 people, mostly Spaniards, were at the Virgen de Las Nieves camp site when the flooding began Wednesday night on the outskirts of Biescas, a tiny mountain town 15 miles from the French border.

Light rains suddenly turned torrential, carrying away rocks and forming rivers of mud. The next morning, the site looked like a battlefield strewn with cars and campers and trees torn from the ground.

One television image showed the hand of a buried person gripping the branch of a tree.

“I ran to try to help a girl. But a time comes when it’s either you or them,″ one survivor, Antonio Espinosa, said from his hospital bed. “I got out alive, but I don’t know what happened to the girl.″

A British couple, who only gave their names as Ann and Roy from Yorkshire, England, waited out the storm in a tree, clutching their two young children as water rose more than a yard high.

“It was horrendous. All I could think about was trying to keep warm, trying to keep the children warm,″ said Ann.

Rosa Esteban said she and her family saw other campers and cars being tossed and rolling down rapidly moving flood waters. The Estebans took refuge in the camp restrooms.

A bright sun and blue skies Thursday replaced the terror and destruction that swept through the football field-sized camp at the foot of a steep mountain ravine.

Those that found ways to survive the flood and hurling rock walked back to the site to find the little that remained of their belongings scattered across torn-up terrain.

Twisted campers and jeeps filled with mud and rock lay strewn over what had been a typical summer camping area.

By evening, 62 bodies had been recovered, said Jose Manuel Guiu, spokesman for the regional government of Aragon. One body was found 10 miles from the camp, which is located at an altitude of 2,800 feet.

Spanish national radio and the EFE news agency reported that six of the dead were children. Some 180 people were treated for injuries.

Prime Minister Jose Maria Aznar flew to the site, followed later by King Juan Carlos and Queen Sofia, who walked about talking to survivors and rescue workers.

By evening, police identified 45 of the dead, all Spaniards.

Some 500 rescue workers, including underwater divers and firefighters backed by helicopter teams and army mountain units, took part in the search for survivors.

Most of the survivors were taken overnight to a sports center in Biescas. Others were housed in hotels, police stations and private houses in the area.

Deaths from flash flooding are not uncommon in the summer months in Spain. Last August, 11 people were killed in the central town of Yebra after a sudden storm.

Suspect in Jan Philipp Reemtsma Kidnapping Is Arrested in Spain

MADRID, Spain (AP) _ Police arrested a man wanted in one of the biggest kidnappings in German history and hospitalized the suspect after he slashed his wrists, authorities said Monday.

Wolfgang Koszics was detained as he drove near the southeastern city of Murcia on Sunday, said Felix Alcaraz, spokesman for the Interior Ministry police.

Civil Guards pulled over Koszics’ Audi because it was on a list of suspicious vehicles. Not knowing that Koszics was one of two men wanted in the March 25 kidnapping of German millionaire Jan Philipp Reemtsma, the paramilitary police took him back to his cheap hotel while they radioed headquarters for instructions.

Reemtsma was held for 33 days and released after his family paid $20 million, the highest ransom in German history.

When the Civil Guards learned Koszics was wanted for the kidnapping, they rushed up to his room, where they found him bleeding from his slashed wrists, said Felix Alcaraz, spokesman for the Interior Ministry police.

Koszics, 54, was taken to a hospital under police guard, Alcaraz said in a telephone interview from Murcia, 250 miles southeast of Madrid. Police found $157,400 and a mobile phone in his possession.

Although Koszics cut tendons in both wrists, he was not in danger of dying. He will undergo surgery Monday evening at the Morales Meseguer Hospital in Murcia, Alcaraz said.

As soon as Koszics has recovered from his injuries, the German fugitive will be questioned by police and then taken before a national court in Murcia, government authorities announced Monday evening.

Reemtsma, 43, was kidnapped in front of his villa in Hamburg and held in a house next to a golf course in Garlstedt, a well-to-do suburb of Bremen dotted with weekend homes. He was freed on April 30.

Koszics’ arrest was first reported by the Hamburger Morgenpost newspaper.

Also wanted in the kidnapping is Peter Richter, 58.

The Hamburg-based Reemtsma cigarette company is Germany’s second-largest. Reemtsma sold his share of his family’s tobacco business in 1980 and devoted himself to supporting literary and social causes.

Seles Overcomes Traumatic Memory in Comeback Match at Madrid Open

MADRID, Spain (AP) _ Monica Seles was affected just seeing the same surface she was playing on in Hamburg three years ago when she was stabbed in the back by a German spectator. Playing on the red clay was almost as tough.

“It brought back a lot of memories,″ she said. “I knew this would be the hardest to come back. Hard or green clay doesn’t bring back what this brings back.″

Playing her first match in Europe since the attack, Seles saved five match points Wednesday before beating unheralded Barbara Schett of Austria, 3-6, 7-6 (10-8), 6-2 in the second round of the Madrid Open. Returning to action after an injury layoff of nearly four months, Seles did not display the top form she’ll need at next week’s French Open.

“A few times I was embarrassed because this wasn’t the level of tennis that I should be playing,″ she said. “The crowd got me mostly through this match. I’m not sure I deserved to be out there the way I was missing a lot of shots.″

She called the victory over the 50th-ranked Schett another step in her comeback from the April 30, 1993 stabbing.

“I knew coming in it was going to be tough emotionally, and it was,″ Seles said. “But it’s great to put another step behind me.″

“Gamewise it was not one of the highlights of my career, but it’s good to get it over with and move on,″ Seles said. “It was a step forward again. One of the reasons I wanted to play here is to go through the things I will have to go through at the French Open.″

The critical stage in Wednesday’s match came with Seles serving in the second set, down 5-6 and facing three match points. After gaining the advantage, she paced a few times behind the line as the crowd urged her on with shouts of “Mo-ni-ca.

Switching balls to one she apparently favored, Seles served an ace to send the set to a tiebreaker. But even in the tiebreaker, Seles struggled. Schett, who never approached the net during the match, held match point twice, but failed to capitalize.

“I never thought I could control this match _ even in the third set,″ Seles said. “I was very lucky to pull this one out.″

The Madrid Open, which was held last year in Barcelona, is being used by many of the participants as a tune-up for the French Open, which begins Monday. Seles, who won three consecutive French Open titles from 1990 to 1992, has not participated in the Grand Slam event in Paris since the stabbing.

Wednesday’s match marked Seles first competitive play since Feb. 2, when she lost to Iva Majoli in the quarterfinals of the Pan Pacific tournament in Tokyo. She said her shaky performance was the result of the shoulder injury she suffered three months ago and her overall lack of competitive tennis since the stabbing.

Seles faced a tougher test today when she plays Romania’s Irina Spirlea in the third round. Spirlea is a strong clay-court player who won at Amelia Island, Fla., last month. Seles, who injured her left shoulder at the Australian Open in January, said she started serving for the first time since the Tokyo tournament only four days ago.

“It’s been very slow healing,″ she said.

Seles said she contemplated surgery to repair the shoulder, but decided against it for the time being. If the shoulder still bothers her after the U.S. Open this summer, she said she will almost certainly have an operation.

She returned to active play last summer when she won the Canadian Open. In August, she reached the finals of the U.S. Open before losing to Steffi Graf. In January, Seles won her ninth grand slam title at the Australian Open.

NASA Corruption Probe Ends in Finger Pointing, Few Arrests

Houston — Coverup charges fly in wake of FBI probe of NASA-contracting practices that netted few ‘big fish.’

The FBI dubbed it Operation Lightning Strike: a 19-month, $2-million sting operation aimed at uncovering alleged widespread kickbacks and other corrupt practices at the Johnson Manned Space Flight Center, the nation’s astronaut training center.

But, in the end, the ballyhooed investigation produced more confusion than clarity.

The only public court case to emerge from the probe drew to a close here last week in a mistrial. The jury couldn’t reach a verdict on whether a single $500 bribe paid by Dale Brown, a small Texas contractor, was illegal.

Yet the reverberations from the bizarre case are far from over. Lawsuits and bitter accusations, ranging from a political coverup to entrapment, are still flying in a case that has been closely watched in government and business circles. It has set two proud agencies – the FBI and NASA – against each other, sullied the images of top federal officials, and drawn plenty of conspiracy buffs.

”You don’t spend more than $2 million to go after some penny-ante guys like Dale Brown and [his boss Leonard Neal] Jackson for a $500 bribe,” says John Crenshaw, a San Antonio consultant who became ensnared in the operation but was never indicted. ”An awful lot of information had to be withheld.”

No top officials charged

The probe did produce plea-bargain convictions against two mid-level NASA employees, 10 contractors, and two firms. Maryland-based Martin Marietta Corp. made a $1 million out-of-court settlement payment.

But FBI agent Hal Francis, the central figure in the sting operation, has repeatedly told reporters the past two years that ”the big ones got away.” Agent Francis, who posed as a wealthy Atlanta investor, said Mr. Brown should never have been tried. Francis added in a recent interview that ”at least 25, and as many as 50, cases of improper conduct were uncovered by the probe, but were stymied by prosecutors.”

But assistant US Attorney Abe Martinez rejects suggestions that there was a coverup. ”The reason the undercover operation was instituted was that contractors were committing crimes,” Mr. Martinez says. ”This investigation only got small fish because it was only after those small fish.”

The Saturn V Apollo Rocket

The probe was launched almost four years ago when NASA’s Inspector General’s office handed the FBI more than 300 complaints – many received anonymously – alleging bribery and mismanagement by NASA officials and contractors. The focus, according to Francis, was on the Life Sciences division at the Johnson Space Center, its director Carolyn Huntoon, now the head of the Johnson Space Center, and the contracting firm General Electric Government Services.

But top NASA officials or contractors were never indicted. As a result, cries of cover-up were lodged against the FBI. Such suspicions were given weight when a 1994 GAO investigation, ordered by Sen. John Glenn, determined that former NASA Inspector General Bill Colvin had tipped off a colleague about the FBI’s undercover probe. Colvin resigned his post in September 1994.

Suspicions were furthered when Martin Marietta, which purchased General Electric Government Services in 1993, paid a $1 million ”settlement payment.”

Claims of set ups

Many of the men targeted in the FBI sting maintain they were set up. They tell of being pressured into making a bribe after their disguised government suitors spent thousands of dollars on such things as Florida fishing vacations and parties to gain their trust.

David Proctor, a former engineer at NASA’s Life Sciences Division now serving five months in prison for bribery, recalls being taken to a Houston warehouse, showed large photographs and placards displaying the maximum penalties for the crimes he was told he had committed. Proctor, who admits to helping write a NASA contract proposal during off-duty hours, says FBI agents held a gun to his head while he was warned not to get a lawyer, or talk to the press.

Proctor says he was forced to go undercover for the FBI for three months during 1993 recording conversations with NASA officials and contractors. But even after making tapes that he says ”incriminate” top NASA officials, the FBI refused to follow-up on his leads, or release recorded conversations.

”In the end, they went after some they knew they could charge, and backed off from others who were never meant to be prosecuted,” Proctor says, who was subpoenaed by Dick DeGuerin, Brown’s lawyer, but was not allowed to testify. ”Lightning Strike was selective prosecution,” he says. ”The big people were protected. It was a cover-up.”

Although little proof is offered, some here fear the FBI probe is being used to tarnish the Johnson Space Center’s reputation, thereby prompting cuts in NASA’s budget or the transfer of operations to the Marshall Space Center in Huntsville, Ala.

And while Congressional hearings on Lightning Strike have never been held, criticism of the sting led to an investigation by the Justice Department’s Office of Professional Responsibility. The internal probe issued a clean report. Jeff Carr, a NASA spokesman, says the investigation demonstrates the space agency willingness to investigate its own workforce and contractors.

The Justice Department intends to bring Brown to trial again in September. A class-action suit is planned against the FBI for abusive conduct.

Mexicans Hard Hit by Terms of $20 Billion U.S. Bailout Loan

Now that the dust may finally have cleared, Mexico is getting a candid, if discouraging, look at what it faces: severe austerity punctuated by interest rates as high as 50 percent.

In exchange for securing $20 billion in United States assistance to pay off short-term loans, Mexico’s central bank was pressured to jack interest rates to recession-provoking levels. President Ernesto Zedillo Ponce de Leon was made to confront a potential political backlash by putting up revenues from its national oil company Petroleos Mexicanos (Pemex) to ensure that the loans will be returned.

“There is a price we must pay as a country – that’s just the way it is,” says Manuel Sanchez, a vice president at Grupo ICA, Mexico’s largest construction firm. “The bright side is that the United States is sending Mexico a sign of confidence, which will help to return credibility to our government and get us through this crisis.”

Even as details of the massive $52 billion international bailout package became public, lingering uncertainty over whether the crisis is over continued to drag down the peso and prices on the country’s stock exchange. The Mexican government has pledged more financial reforms and revenue-raising privatizations. But restoring investor confidence remains elusive.

In recent weeks, Mexico boosters had been arguing that the peso’s nearly 40 percent devaluation since Dec. 20 would help exporters and give domestic companies a leg up over foreign competition. But with short-term interest rates rising to more than 50 percent, many Mexican firms are likely to spend the coming months trying to avoid bankruptcy and make some profit.

“No one is going to be able to survive with these high interest rates,” said Pedro Sanchez Mejorada of Transportacion Maritima Mexicana, the country’s largest shipping firm.

At the weekly treasury bill auction held Feb. 22, the day after the package was signed, yields hit a precipitous 59 percent, a 19 percent jump over the previous sale. High interest rates, of course, can attract foreign money and thereby help stabilize the peso. But for business executives, current borrowing conditions are a horror story. Few are embracing Commerce Secretary Guillermo Ortiz’s upbeat forecast of 0.5 percent real growth in national output. “No project is viable under this financial scheme,” says ICA’s Mr. Sanchez.

The government is banking on the weaker peso to quickly boost exports and provide sufficient funds to cover loan payments.

In testimony Tuesday to the US Congress, Federal Reserve Chairman Alan Greenspan endorsed the Mexican strategy but called it “a tricky one.”

A GOVERNMENT promise to cut spending is sure to make matters worse, holds Pedro Tello, an economist with the National Manufacturing Industry Council. Companies that incurred heavy debt prior to devaluation, or must buy such essential imports as machinery and primary materials, face the most difficult times since the crisis of the early 1980s.

“The interest rates are just one more ingredient to this bitter recessionary cocktail that we Mexicans are forced to take in this difficult year,” Mr. Tello says.

Many banks will be hard pressed. An already grave situation of nonperforming loans, a national average of 9 percent of total loans, is likely to get worse, says Francisco Blanco, director of analysis at Arka, a Mexico City brokerage firm. Some bank analysts say that current accounting practices downplay nonperforming loan levels.

Salomon Brothers, a US brokerage firm, recently singled out Banco Serfin, Comermex, Banpais, and Banoro as having nonperforming loans near or exceeding combined equity and reserves. With foreign banks increasingly being allowed entry into the Mexican market, many analysts see mergers and even bank failures ahead.

With Pemex revenues going to a special Mexican account at the Federal Reserve Bank of New York as collateral against US loans, Mr. Zedillo and Ortiz will be under an intense light. Opposition parties are already accusing the government of having sacrificed national sovereignty to bail out incompetent bankers. Facing a conservative backlash within his own ruling party, and having failed to force the Zapatista rebels to negotiate, Zedillo could face further political instability.

According to the US loan pact, the government will be forced to limit money growth to less than inflation, raise $12 billion to $14 billion through privatizations, make the central bank’s dealing more transparent, and restrain from the election-driven spending sprees that were partially to blame for the peso’s devaluation.

Mexico’s business community can only hope that foreign investment returns to the country, and with it the possibilities for growth. ICA’s Sanchez, trying to put a positive spin on the economy, adds, “Hopefully, the government is capable of implementing a real austerity program.”

Martha Stewart Guilty

Martha Stewart, who built a media and consumer goods empire that brought gracious living into everyday Americans’ homes, faces prison after her conviction Friday on four felony counts related to a questionable stock sale.

Stewart’s former stockbroker and co-defendant, Peter Bacanovic, also was found guilty on charges related to her sale of nearly 4,000 shares in ImClone Systems Inc., a biotechnology company then headed by her friend Dr. Samuel D. Waksal. Stewart, appearing ashen and struggling to remain composed, left the federal courthouse in Manhattan about 30 minutes after U.S. District Judge Miriam Goldman Cedarbaum read out “guilty” eight times–four each for Stewart and Bacanovic. Under a drizzly and overcast sky, a crowd of supporters chanted, “We love you, Martha!” as Stewart stepped into a waiting car.

Moments earlier, U.S. Atty. David N. Kelley called the verdict a warning to corporate America. Coming two days after former WorldCom Inc. Chief Executive Bernard Ebbers was led into the same courthouse in handcuffs to be arraigned on charges including securities fraud, Stewart’s conviction marked another victory for a Justice Departmentthat has been accused of being slow to prosecute corporate criminals.

“If you are John Q. Public or Martha Stewart or Peter Bacanovic, we will go after you if you make these kind of lies,” Kelley said.

In response to a reporter who asked whether Stewart was prosecuted because she is a celebrity, Kelley said, “We don’t prosecute people for who they are.”

Deliberating for nearly three days, jurors found Stewart, 62, guilty of conspiracy, obstruction of justice and two counts of making false statements. Each count carries a potential prison term of five years and a $250,000 fine. But legal observers, citing federal sentencing guidelines, said Stewart probably would receive 15 to 21 months in prison. Her sentencing hearing is scheduled for June 17. Bacanovic, 41, was convicted of conspiracy, perjury, making a false statement and obstruction of justice. He was acquitted of one count of creating a false document. Lawyers for Stewart and Bacanovic said they would appeal the convictions.

In the 1990s, Stewart’s fame skyrocketed as she parlayed her skills as a decorating and lifestyle adviser into a multimillion-dollar media and merchandising company, Martha Stewart Living Omnimedia Inc. After her indictment in June 2003, Stewart resigned as chairman and chief executive of the firm.

Within hours of the verdict, Stewart posted a letter on her personal Web site, MarthaTalks.com.

“I am obviously distressed by the jury’s verdict, but I continue to take comfort in knowing that I have done nothing wrong and that I have the enduring support of my family and friends. I will appeal the verdict and continue to fight to clear my name,” she wrote.

By Friday evening, however, Stewart’s online statement had been edited to omit her denial of any wrongdoing. The federal sentencing guidelines ask judges to consider whether defendants have accepted responsibility for their actions. Throughout the six-week trial, prosecutors portrayed Stewart as a liar who conspired with her stockbroker to cover up that she had sold her ImClone stock in December 2001 after learning that Waksal and his two daughters were selling thousands of their own shares in the New York-based company.

Waksal later admitted selling his stock based on advance word that the U.S. Food and Drug Administration had rejected ImClone’s application to review an anti-cancer drug. When that news became public, ImClone’s shares plummeted. Waksal was convicted last year of insider trading. He is serving a 7-year sentence in a federal prison in Pennsylvania.

But Stewart’s defense lawyers argued that she sold her ImClone shares under an earlier agreement with her broker to unload the stock if its price fell below $60 a share. The jury of eight men and four women did not believe it. One juror, Chappell Hartridge, a 47-year-old computer technician, told reporters the testimony of Stewart’s assistant, Anne Armstrong, ultimately convinced the jury that Stewart made her trade based on information about the Waksals selling their shares.

“Armstrong’s testimony was the real turning point,” Hartridge said.

Pressed by reporters about whether the jury saw Stewart as arrogant, Hartridge said: “I don’t like judging people. But I would have to say yes.”

Calling a variety of witnesses who worked for Stewart’s company and in Bacanovic’s Merrill Lynch & Co. office, prosecutors charged that Stewart learned about the Waksals’ selling through conversations with Bacanovic’s assistant, Douglas Faneuil.

In a sworn statement, Stewart told federal investigators on Feb. 4, 2002, that “she did not know” whether Bacanovic had left a phone message at her office the day of the ImClone stock sale.

Yet, a teary Armstrong testified that five days before that interview, Stewart had altered a computer phone log, replacing a message that read “Peter Bacanovic thinks ImClone is going to start trading downward” to “Peter Bacanovic re ImClone.”

Stewart, Armstrong said, later ordered her to change the message back to its original state. But according to prosecutors, the damage had been done: Stewart had made a false statement to government investigators and, in the process, obstructed justice.

“The fact that she was convicted on everything means the jury understood the charges very well, because the truth is all of these crimes were completely interrelated and came out of the same conduct,” said Jennifer Arlen, a professor at New York University‘s School of Law.

At Stewart’s sentencing, the judge is likely to apply federal guidelines for the most serious crime for which Stewart was convicted, obstruction of justice, said Jonathan Bunge, a litigation partner at Kirkland & Ellis in Chicago and a former federal prosecutor. Unless the government can demonstrate “substantial interference,” Bunge said, Cedarbaum probably will sentence Stewart to between 15 and 21 months in prison. While Stewart plans to appeal her conviction, she also faces a civil suit brought by the Securities and Exchange Commission alleging insider trading.

Shopping on Chicago’s Michigan Avenue, Myrna Olszewski, 65, said she felt bad for Stewart. “I always watched her show because she gave such good tips,” said Olszewski, who was visiting from Pittsburgh. Her friend, Kay Clendaniel, 61, said: “Sometimes people get too powerful and it catches up with them. This was just greedy, that’s all. How much money do you really need?”

Mexico Turns to U.S. to Combat Air Pollution


MEXICO CITY — Mexico moved to protect the ozone layer from further destruction Monday by launching a program to help its manufacturers eliminate the use of chlorofluorocarbons by the year 2000.

The government said it was being advised in the project by the U.S. Environmental Protection Agency and Northern Telecom Ltd., a Canadian telecommunications company.

Chlorofluorocarbons, known as CFCs, are used widely as cooling agents in air conditioners and refrigerators and as cleaning solvents by the electronics industry.

But the man-made chemicals are believed to contribute to the destruction of the ozone layer that protects the Earth’s surface from the sun’s ultraviolet rays.

Patricio Chirinos, secretary of Urban Development and Ecology, announced that Mexico plans to eliminate the use of CFCs 10 years earlier than required by an international agreement known as the Montreal Protocol.

The protocol, signed in 1987 by 68 nations, requires developing countries such as Mexico to eliminate use of CFCs by the year 2010 and industrialized nations by 2000.

“This project will demonstrate the effectiveness of environmental protection in Mexico,” Chirinos said.

Adequate protection of the environment was a key issue in the debate over lowering trade barriers between the United States and Mexico.

Mexican firms that use CFCs will receive funding from the Montreal Protocol’s Interim Multilateral Fund to help them make the switch to cleaning solvents that do not damage the ozone layer.

So far, only $12.5 million of an anticipated $200 million has been collected for the fund, said Allen Sessoms, a U.S. government official in Mexico. He said that in a year the fund will be completed.

“We are waiting for the European community and the Japanese to make their contributions,” Sessoms said. “Nonetheless, we are still early in the process.”

Northern Telecom, makers of digital communications systems, will share alternatives it has developed to using CFCs in the manufacturing of electronic equipment.

The company will also send teams of engineers to Mexico to make plant visits and lead workshops for Mexican companies.

Mexican electronics companies are among the nation’s heaviest users of CFCs, using more than 400 tons of CFC solvents and between 8,000 and 10,000 tons of methyl chloroform solvents each year, Chirinos said.

Preston Peek, a Northern Telecom official, said the Ontario-based company will not charge for its services.

He said Northern Telecom plans to eliminate CFCs from its plants worldwide by the end of the year.

Meetings between Northern Telecom scientists and Mexican plant engineers began in June.

Paparazzi Cry `No Fair’ as N.Y.C Tightens Access to Film Shoots

When paparazzo Steve Sands arrived at the Coney Island set of Will Ferrell’s movie “The Other Guys” in mid-November, he caught a break. That day they were filming New York Yankee Derek Jeter in a cameo.

Sands got shots that he sold to the celebrity magazine InTouch, among other outlets, and notched what he called a handsome payday.

A 30-year veteran of the camera ambush, Sands worries that those opportunities, gleaned from regular visits to New York City’s Mayor’s Office of Film, Theatre and Broadcasting, will disappear since New York City ended its weekly Wednesday public viewing of film-shoot permits yesterday. Mayor Michael Bloomberg is the founder and majority owner of Bloomberg News parent Bloomberg LP.

The permits contained information on filming locations for movies and television shows. The movies “Precious” and “It’s Complicated,” which stars Meryl Streep and Alec Baldwin, were shot in New York City. The TV shows “30 Rock,” “Gossip Girl,” “The Good Wife,” “Ugly Betty” and “White Collar” also use city locations.

“There are so many projects in New York, so that’s why you go to the mayor’s office,” said Sands, who sported the paparazzo’s typical unshaven face and disheveled hair. “Now the city is going to make it hard for us to find this information. They’re taking away our rights.”

Requests to view the film-shoot permits now have to be made by mail or e-mail through New York State’s Freedom of Information Law.

“We’re looking to try to have a system to get back to people within a week,” said Marybeth Ihle, a city spokeswoman. Stolen Documents The city decided to end the public viewings because of space constraints and reports of stolen documents, Ihle said. The system had been in place for longer than anyone at the film office could recall, Ihle said. The best estimate was more than 15 years.

To Chris Doherty, president of INF, a New York-based celebrityphoto agency, the decision is an attack on the paparazzi and an effort to cull favor with the film and TV industry that Ihle said contributes about $5 billion a year to the city’s economy.

“There are suggestions that the film industry is getting annoyed with the number of people showing up at these shoots,” Doherty said. “But these are public records that help us to do our job.” Ihle denied that outside pressure prompted the change.

To be sure, the advent of Twitter Inc., Facebook Inc. and Web sites such as OnLocationVacations.com, dedicated to tracking film shoots and celebrity whereabouts, has made onceelusive information almost commonplace, Doherty said. Still, the film office is a dependable source for leads, he said. ‘Catch-22 Situation’

Doherty, whose agency employs about 30 people in New York and Los Angeles, said he was wary about the Freedom of Information process because of the potential for long waits and because it largely requires photographers to know what they’re looking for.

“If we don’t know the document exists, how can we ask for it? It’s a Catch-22 situation,” he said.

Norman Siegel, a civil-rights lawyer, said the decision appeared to favor one set of New Yorkers and even non-New Yorkers (TV and movie people) over another (paparazzi and not-so-famous actors who use the listings to seek walk-on leads.)

“The fact that the city has been doing this for so long says that at one point they thought this was something they should do,” Siegel said. “It’s possible the city can do what it’s doing legally but whether it should be doing it is another issue.”

Crowd Control

James Devaney, 32, has placed his photos of Angelina Jolie, Katie Holmes and others in People and Star magazines and the New York Post newspaper. Besides checking the permits, he has gotten tips from film-production people and even public-relations agents. Celebrities often want the publicity afforded by the paparazzi, he said. Still, he’s torn about the city’s change in policy.

“What the city is doing isn’t right,” said Devaney, who has been photographing celebrities for 12 years. “Then again, film shoots have gotten really crowded, so I kind of wondered why it took so long for them to do this.”

Sam Dickerson, a photo editor at Splash News & Picture Agency, said it’s common to find 10 to 12 people waiting to get into the permit office. The city allows just two people at a time to view the documents, and only for 30 minutes.

“People are going to have to lean a lot heavier on blogs and Twitter and sightings than just going down to the permit office,” said Dickerson, whose agency’s photos adorned the Nov. 15 cover of the New York Times’s Sunday Styles section.

As he has done for years, Sands went down to the city’s film office on Broadway in mid-November a week after the new permit viewing process was announced. For a half-hour he leafed through a stack of the green onion-paper documents before being told his time was up.

“The film office can be a good place but there are just too many photographers, Web sites and paparazzi agencies now,” Sands said. “They killed the golden goose.”

–Editors: Jeffrey Burke, Daniel Billy. To contact the writer on the story: Leon Lazaroff in New York at +1-212-617-4249 or llazaroff@bloomberg.net To contact the editor responsible for this story: Manuela Hoelterhoff at +1-212-617-3486 or mhoelterhoff@bloomberg.net

Mexican Standoff: Rebels Set Up Separate Government in Chiapas

Two men became governors Thursday in the southern state of Chiapas, where rebel Indians staged an uprising New Year’s Day that caught the world’s attention.

Eduardo Robledo Rincon, candidate of Mexico’s Institutional Revolutionary Party, officially won an Aug. 21 election with 52 percent of the vote. But critics claimed the election was fraudulently stolen from opposition candidate Amado Avendano Figueroa. A lawyer and newspaper publisher, Mr. Avendano has set up a ”parallel government” in protest of the August elections.

Mr. Robledo was inaugurated in the plush City Theater in the state’s capital of Tuxtla Gutierrez, with President Ernesto Zedillo Ponce de Leon in attendance. Later in the day, Avendano read the same oath in the city’s central plaza before about 5,000 campesinos (peasants) and Indians he represents.

Avendano ran under the banner of the center-left Democratic Revolutionary Party, championing the rights of the majority indigenous population, or Zapatistas, who staged the surprise Jan. 1 rebellion that took over five Chiapan towns.

The National Intermediation Commission, appointed to seek peace between Mexico’s government and peasant guerrillas, warned Saturday that the area is close to exploding into more violence.

Zapatista chief Subcommander Marcos warned that his rebel army was no longer bound by the cease-fire of last January. He said peace talks could only resume once Robledo resigns.

”The poor here have said enough to the exploitation and suffering that is their lives,” Avendano said, after leaving a meeting with about 200 Zapatistas. ”This government is their vehicle.”

The Zapatistas first called for a ”transitional government” to oversee the Aug. 21 presidential election. Having fallen short of that goal, they encouraged Avendano to form his own government on the state level.

Avendano says his government will help organize ”autonomous” local governments that give local residents control over resources such as oil and timber and the ability to collect taxes. Avendano urged villages where he and the Zapatistas have strong support to stop paying taxes to the state government and contribute directly to his administration.

Already, 14 small Indian communities in the highland region around San Cristobal have declared themselves autonomous, and have told Robledo’s government to keep out.

Meanwhile, President Zedillo and Robledo have chosen publicly to respect the parallel government, although they have stopped short of officially recognizing it. Neither wants to do anything that could endanger the delicate 11-month cease-fire with the 4,000-member Zapatista National Liberation Army, which remains surrounded by the much better armed Mexican military.

Zedillo has pledged to maintain the cease-fire and reopen negotiations. He also announced the creation of a high-level federal commission to focus on economic growth in Chiapas.

These wide-ranging proposals are meant to convince average Mexicans that the week-old government is sincerely interested in resolving the problems that have produced a region that comprises nearly one-fourth of all Mexicans living below poverty level.

But Avendano counters that Zedillo’s proposals are nothing but repackaged policies of political corruption, police brutality, and virtual slavery that have produced salaries that are three times lower in Chiapas than the national average. In addition, the 30 percent illiteracy rate is the highest of any of Mexico’s 31 states and Mexico City.

Net Neutrality Boosts Internet Investment, Says Activist Investment Groups

Net neutrality advocates unveiled new ammunition on Friday, July 14, in support of the regulatory status quo.

Federal Communications Commission Chairman Ajit Pai has maintained that the agency’s Open Internet Order, which enforced net neutrality provisions in March 2015, has been a drag on capital expenditures.

In May, Pai introduced a proposal, “Restoring Internet Freedom,” that would repeal the 2015 order, which reclassified the internet as a utility under Title II of the Communications Act of 1934. In it, Pai asserted that net neutrality has generated such uncertainty among internet service providers such as Charter Communications Inc., Comcast Corp. and Verizon Communications Inc. that they’ve have cut back on their spending.

But in a filing with the FCC on Friday, a group of 20 investment firms and public interest foundations that collectively holds around $190 billion in assets challenged Pai’s assertion that the order has curbed corporate investments in internet networks and new services. Open Mic, a consumer group that works on issues related to affordable internet access, coordinated the filing joined by Boston Common Asset Management, Trillium and the Sustainability Group as well as the Nathan Cummings Foundation, Park Foundation and the Wallace Global Fund, among others.

Open Mic said investment in broadband internet networks actually has increased since the FCC adopted the Open Internet Order. Citing government filings by the country’s largest internet service providers, Open Mic found that telecom investment among publicly traded companies increased 5.3%, or $7.3 billion, between 2014-15 and 2015-16.

To illustrate their findings, the investment firms pointed to reports and statements by telecom executives such as Charter CEO Tom Rutledge, who said in February that the country’s second-largest internet provider expected to increase its spending on network infrastructure in 2017.

“2017 is probably a bit higher in terms of absolute dollars than what we were performing in 2016,” Rutledge said on the company’s fiscal first-quarter conference call. “But it shouldn’t be a dramatic change in terms of capital intensity or [capital expenditure] as a percentage of revenue.”

Although Rutledge said he was concerned that the regulatory framework known as net neutrality could trigger “follow-on issues,” he added, “We’re actually quite comfortable with the way we sell and service our products today.” Charter’s infrastructure spending for fiscal 2016 totaled $14.5 billion, some 12% higher than the company had forecast in August 2015, five months after the Open Internet Order was approved.

Similarly, AT&T Inc.’s 2016 annual report reads that even though it had invested $140 billion in capital improvement of its wireless and wireline networks over the past five years that “we expect to remain one of the largest investors in the United States.” And earlier this year, Comcast reported that its capital expenditures increased 7.9%, or $7.6 billion, in 2016.

For a 12-Year-Old Kid, Roger Moore Was James Bond

For a child of the 1970s, James Bond was a very big deal.

Back before cable-TV, mobile phones and streaming music, going to the movies was a big time event. Unlike today, there were a lot fewer films being produced. James Bond was one of the few film franchises of the era, and sequels were rare and exceptional.

So when news broke that Roger Moore would be taking over for the iconic Sean Connery as British MI6 secret agent 007, most adults were skeptical. How could anyone replace Connery? Through From Russia With LoveGoldfinger and Thunderball, the Scottish actor had come to symbolize a certain essence of cool that in retrospect seemed to have crossed the 1960s generational divide. Connery, who will turn 87 in August, had become so synonymous with Bond’s character that few actors dared follow him in a role that he’d come to define.

Indeed, it seemed unlikely that anyone could replace Connery’s portrait of Ian Fleming’s secret agent, a man equally comfortable with espionage, shooting a gun and sweet-talking young women. So when Connery declared that the 1967 You Only Live Twice, his fifth Bond film, would be his last, actors including Michael Caine demurred. Finally, a less well-known British model turned actor, George Lazenby, was cast as Bond for the lead in the film On Her Majesty’s Secret Service. But Lazenby wasn’t particularly well-received, prompting Eon Productions to pull Connery back for Diamonds Are Forever.

Moore, meanwhile, had made a name for himself as the lead in the television series The Saint. Remarkably, Moore had a lot of Connery at his best. He, too, was a very good-looking man, suave and athletic, with perfect diction and who never appeared to sweat no matter the number of goons who happened to be chasing him.

For a kid of 12, Moore, who died Tuesday at 89, was a more modern than Connery, and his films were in color. The 1973 Live and Let Die, which benefited from a very popular Paul McCartney soundtrack, was one of the first films I recall seeing in a theater without adult supervision. The film had it all: fast cars, really fast speedboats, international travel and, yes, lots of young women. To a pre-teen it was heaven. I returned for a second viewing a few weeks later.

Looking back, James Bond was among Hollywood’s first franchise films, the kind of character that Hollywood studios have since made the foundation of their business. Just this week, Mike Cavanagh, the finance chief of Comcast (CMCSA – Get Report) , owner of Universal Studios, boasted that it manages eight movie franchises compared to just one as recently as five years ago. The James Bond films, going back to Dr. No in 1962, were distributed by United Artists, which was taken over by Metro-Goldwyn-Mayer in 1981. MGM continues to hold the James Bond franchise.

In searching for a photo of Roger Moore to run with this story, photo editor Kevin LeVick found it was difficult to find any photo of Moore unaccompanied by a young women. Indeed, as Hollywood’s sensibilities became more liberal in the 1970s and 1980s, Bond’s sexual exploits became more central to his character. Moore would go on to star in six more Bond films over the next 12 years, eclipsing Connery’s tenure in a classic role that became a model for private investigators, playboys, good guys and villains. Moore would give way to Timothy Dalton, Pierce Brosnan and Daniel Craig.

But for me, James Bond will always be Roger Moore.

FCC Lifts Ban on Local Media Cross-Ownership, Inviting Consolidation

A pillar of U.S. media ownership restrictions for more than 40 years has fallen.

Owners of local television stations will be permitted to buy a local radio station or newspaper in the same market after the Federal Communications Commissions on Thursday, Nov. 16, voted to lift the ban on cross-ownership that had stood since 1975. The agency, which has been fast eliminating restrictions long opposed by TV station companies, also eliminated a ban on two TV stations in the same market from entering into joint sales agreements to sell advertising.

FCC Chairman Ajit Pai, a Republican who orchestrated the changes, said the bans and other restrictions were no longer relevant given the advent of online news sources and the shrinking circulations of most local newspapers. The two Democrats on the five-person commission, echoing other critics, countered that Pai understated the importance and impact that local media sources continue to have despite the rise of Facebook Inc. (FB – Get Report) and other social media platforms.

The commission, however, did let stand a ban that prevents two of the top four TV stations in a single market from sharing the same owner.

“It’s a simple proposition,” Pai said at the November Open Commission Meeting. “The media ownership regulations of 2017 should match the media marketplace of 2017. That’s the proposition the FCC has today, nothing more, nothing less. It’s about time.”

Debate over so-called cross-ownership of a newspaper and local TV station has been a source of disagreement at the FCC for years. Pai, who was promoted to chairman in February, argued that because Facebook and Google, a unit of Alphabet Inc. (GOOGL – Get Report) , are swallowing the bulk of new advertising spending, it’s imperative that local TV station owners be given more options to create scale if they’re to have any chance of competing against the online giants.

Conversely, Mignon Clyburn, a Democratic commissioner appointed by President Obama in 2009, warned that the changes will accelerate mergers and acquisitions of media outlets at the local level, striking a blow to the FCC’s historic commitment to sustain a diversity of news outlets.

“The order is not really about helping small struggling broadcasters or newspapers,” Clyburn said at the hearing. “We have paved the rule for a new crop of broadcast media empires that will be light years removed from the very local communities they are supposed to serve. These media titans will have degrees of power far beyond the imagination of our local community.”

For Democrats and consumer advocacy groups, this latest round of deregulation has sparked an outcry that Pai is rewriting media ownership rules to benefit large media companies, in particular Sinclair Broadcast Group Inc. (SBGI – Get Report) , that have been particularly outspoken in their support of President Trump and Republican officeholders.

The rule changes come as Sinclair is lobbying regulators to approve its proposed $6.6 billion acquisition of Tribune Media Co. (TRCO – Get Report) . The deal would combine the largest- and sixth-largest TV station owners in the country to create a behemoth reaching 72% of U.S. households. Sinclair has drawn criticism for news coverage that often parrots the company’s own libertarian position on regulatory issues and political campaigns.

“By eliminating media ownership limits, the FCC is delivering a blow to localism and diversity in our broadcast media,” U.S. Sen. Bill Nelson said in an e-mailed statement. “This act will pave the wave for massive broadcast conglomerates to increasingly provide local viewers with nationalized cookie-cutter news and corporate propaganda that’s produced elsewhere.  This is not the type of local broadcasting Floridians and other Americans and have come to expect and deserve.”

Indeed, Sinclair, which wasn’t immediately available for comment, stands to benefit from the FCC’s vote to lift the ban on joint sales agreements. For years, Sinclair has skirted the joint sales rule by creating so-called sidecar companies that own another TV station in the same market. Those sidecar arrangements may no longer be necessary.

Despite Thursday’s vote, fears of rampant consolidation of local media outlets may be unfounded, according to David Chavern, president of the Washington-based News Media Alliance, the country’s largest newspaper lobbying group. The number of cross-ownership deals is likely to be small, he said, and for some newspapers vulnerable to bankruptcy, lifting the ban could fuel their return to stability.

“This is about whether a newspaper that needs investment can reach out to their most likely buyer,” Chavern said. “And that buyer is probably the other local news organization in town that likes the brand or likes the newsroom. This is an old, outdated regulation, well past its usefulness.”

Pai has been quick to assert that he, too, sees the potential harm in media consolidation, and thereby didn’t seek to eliminate the TV station duopoly rule. Additionally, the FCC has yet to lift or increase a cap that blocks companies from reaching more than 39% of U.S. TV households. Sinclair has long sought to raise the cap.

Sinclair’s unbridled support for President Trump and conservative causes has prompted Democrats and a variety of consumer and industry groups, both liberal and conservative, to oppose the deal on grounds that the broadcaster has failed to demonstrate a willingness to produce impartial news reports.

Pai, a former attorney with Verizon Communications Inc. (VZ – Get Report) , has argued the rule changes are necessary to prevent TV stations from going the same route as newspaper publishers and radio station companies. Dozens of U.S. newspapers have had to cut staffs as circulation and ad sales have declined over the past 15 years. America’s two largest radio station owners, iHeartMedia Inc. and Cumulus Media Inc., are in restructuring talks with creditors that could end in bankruptcy court.

Already this year, the FCC has approved rule changes long sought by Sinclair. In the spring, Pai’s FCC restored the so-called UHF discount, which allows Sinclair and other station owners to skirt the 39% ownership cap — the change reduced the reach of a combined Sinclair and Tribune to about 45% from 72%. In September, the commission voted along party lines to eliminate the Main Studio Rule, a cornerstone of the landmark Communications Act of 1934 that required TV broadcasters as well as radio station owners to maintain a studio, or office, in or near the local community where they hold each license.

Support Grows for Broad Compromise on Immigration Reform

PHOTO COURTESY OF SEIU

Immigration and labor groups push President Bush to pass sweeping reforms.

Eliseo Medina has been on the road a lot lately. As executive vice-president of the Service Employees International Union (SEIU), Medina spends much of his time away from his Los Angeles office, organizing and lobbying at union locals across the country.

Originally from Zacatecas, the central Mexican state that sends more of its native sons and daughters to the United States than any other, Medina has been busy gathering support for a giant “Immigrants Freedom Ride” in the style of the 1960s civil rights marches to convene in late-September in Washington D.C. The Freedom Ride will take place on the heels of the White House meeting between George W. Bush and Mexico’s Vicente Fox Quesada, scheduled for September 5. At that time the two presidents are expected to shake hands, wear cowboy boots and announce plans a landmark agreement on immigration policy and bi-national relations.

Although negotiations have been underway for months, details have so far been limited to White House leaks to the New York Times. On July 27, the Times disclosed that a confidential one-page memo from the task force headed by Secretary of State Colin Powell and Attorney General John Ashcroft had recommended legalization for some of the estimated three million undocumented Mexicans in the United States. That was followed by calls from other immigrant groups that any legalization program be extended to other countries and a lukewarm statement of immigration policy from Congresional Democrats, indicating that was what they had in mind–sort of.

Among the latest to add their hats to the immigration policy ring are two key Republican congressmen, James Sensenbrenner of Wisconsin and George W. Gekas of Pennsylvania. Sensenbrenner chairs the House Judiciary Committee and Gekas is the chair of the immigration sub-committee. In a written statement they said, “We have found the INS to be the most dysfunctional federal agency around,” and stated that any proposal for legalization would be killed unless it also provided for a restructuring of the Immigration and Natura-lization Service.

Meanwhile, Medina wants to make sure that many months of work by community and church groups, labor unions and supportive politicians does not go to waste. He’s hoping that a combination of lobbying and street action will make sure that the presidents’ proposal provides real relief and opportunity for immigrants, and not just another means to win votes or take advantage of workers desperate for jobs.

“I’m happy the issue of immigration is finally being taken seriously by both countries,” he says. “Certainly there are lots of political agendas at play here. But the bottom line is we can’t continue to have 200 to 300 people die at the border every year, or allow people to continue to be exploited at the workplace. That has to change.”

As the horse trading continues on both sides of the border, on both sides of the congressional aisle and within the president’s own party, advocates for immigrants’ rights have their work cut out for them. Although legislation has not been introduced, trial balloons have been floating all year long. Among the first was that launched by Texas Senator Phil Gramm, who has been talking up the idea of a limited “guest-worker” program.

Just last year Gramm helped derail efforts to bring agriculture and farmworker advocates together on a compromise farmworker/immigration bill brokered by Congressman Howard Berman of Los Angeles and Senator Gordon Smith of Oregon. Their proposal would have increased the size of the nation’s current agricultural “guest-worker” program (known as the H-2A program) from 40,000 last year to some 150,000 in five years. In exchange, migrants would have been eligible to apply for legal residency after working a certain number of years.

But with Bush in the White House and evidence that a conservative agenda would be the norm, the more nefarious among the growers became convinced they could procure even lower wages and less worker protection. Gramm was integral to the growers’ change of heart. He told then Senate Majority Leader Trent Lott that he would filibuster any bill that made it easier for farmworkers to obtain citizenship, uttering his now famous line that any legalization program would have to pass “over my cold, dead political body.”

The current negotiations between Attorney General John Ashcroft and Mexican Foreign Minister Jorge Castañeda reveal a Republican Party split between a pro-business, free trade wing and a socially conservative, xenophobic wing. Not surprisingly, employers want a steady supply of legal, immigrant workers, and when possible, the opportunity to pay lower than usual wages. Legalization is favored because it facilitates retention. Mindful of the saber-rattling from the GOP’s social conservatives, Fox and Bush decided it best to exorcise the word “amnesty” from the discussions and replace it with “regularization.”

The agricultural industry, as well as owners of hotels, restaurants, hospitals and meatpacking plants, would like to see a considerable expansion in the number of immigrants placed into the H-2A “guest worker”program. Because 50 to 75 percent of the country’s more than 1.5 million farmworkers are undocumented, the growers are keenly aware that the bulk of their workforce could be deported at any time–and sometimes they are.

Medina counters that the employers have set up a false dichotomy. “Our point of view is if they paid decent wages they could find lots of workers–nationals and immigrants,” he says. In general, organized labor, led by SEIU and Hotel and Restaurant Employees (HERE) union, opposes “guest worker” programs, charging that they hold down wages for an entire industry and create an easily exploited group of workers. But with Bush in the White House, an expanded “guest worker” program for both agriculture and service sector workers is all but assured.

Benigno Peña, director of the Brownsville Immigration Center, warns that a greatly expanded “guest worker” program, like that supported by Senator Gramm, would create many of the same abusive conditions as the “bracero” program that began in World War II, and officially ended in 1964. So named because the immigrants worked with their arms, or brazos, the bracero program systematically cheated workers out of wages, jailed or deported immigrants for protesting exploitative working conditions and forced longtime laborers back to their native country after years of employment.

Similarly, says Peña, Gramm’s version of a “guest worker” program would require immigrants to return to their native countries each year to reapply for entry. “The ‘guest worker’ programs just want to use workers and that’s it. There’s a danger here that we’re falling back to the past where we see immigrants as nothing but workers. We failed once before to look at the human aspect of immigrants, and I think that’s where this is going.”

The Mexicans have signaled their willingness to go along with an expanded “guest worker” program as long as it comes with a plan to offer all undocumented Mexicans some sort of legalized status. Castañeda, the Mexican Foreign Minister, has also made clear his desire for a softer border enforcement policy that would eliminate the need for undocumented immigrants to risk robbery, rape or death by walking through the borderland’s remote back country. In return, Bush apparently has told Mexico that it must increase police and army patrols on its side of the border to stanch the flow of undocumented immigrants attempting to head north. Mexico has also been told that sometime in the near future, the two countries should come together again to talk about opening the Mexican energy sector to U.S. investment.

With just a few weeks remaining before Fox visits the White House, the President’s chance of using legalization to win the political support of immigrants and their families has been complicated by the administration’s apparent desire to treat undocumented Mexicans differently than those from India, Bangladesh, El Salvador, Haiti, Nigeria, etc. After the Powell-Ashcroft memo was leaked to the Times, the President made an innocuous non-commital statement about his willingness to consider immigrants from other countries. Nevertheless, he is expected to argue that the United States should deal with Mexico first because of the North American Free Trade Agreement and because Mexico is our largest source of immigrants. Fox, meanwhile, is concerned with not cluttering up the agenda and wants to prove that he can deliver results to undocumented Mexicans working in the United States.

Immigrant activists, unions, church and community groups as well as the Democratic Party have been quick to seize upon a Mexicans-only immigration bill as an insult to millions of immigrants who have held U.S. jobs for years and paid U.S. taxes. It is one reason the SEIU and other unions have been working to prepare for the Freedom Ride. “From our point of view, this proposal has to cover the most people possible and not just Mexicans,” says Medina. “We can’t have an immigration policy that covers just one country. It has to cover everybody. Everybody’s worked, everybody’s contributed, everybody should be covered.”

Leon Lazaroff, who reported from Mexico for many years, now lives in Brooklyn and frequently writes about immigration.

Minorities Hammer Construction Unions

In clipped chants that reveal the accents from their native country, a group of Chinese construction workers stand outside New York University’s Bobst Library – as they have for nearly six months – chanting “No Racism, Fair Employment Now.”

Through weekly street protests, letter writing, and student-organized teach-ins, the group is trying to pressure NYU and building contractors to hire Chinese workers who claim that racism has shut them out of jobs building a $35 million university dormitory. Last month, the Chinese Construction Workers Association here filed discrimination charges with the National Labor Relations Board (NLRB) against NYU and the project’s contractors.

“Though NYU doesn’t directly employ anyone, they are the developer, they’re the boss, and they have a legal and moral responsibility to guarantee fair employment,” says Kwong Hui of the Chinese Staff and Workers’ Association, a local group that has led a series of campaigns against garment sweatshops. “By doing nothing, they are condoning racism.”

NYU counters that hiring decisions at this site, or any other construction site, are a matter between the contractor, Plaza Construction, and the various labor unions chosen to do the job.

FRICTION between minorities and American big-city construction unions is not new. In the 1970s, the federal government set up programs requiring unions that worked on federal projects to boost minority membership. But the programs collapsed because of union resistance and the distaste of Republican administrations for enforcing minority-hiring goals.

“This has been a way of life in the construction trades for a very long time. NYU is just the latest case,” says Jim Haughton, who heads Harlem Fight Back, a group that began organizing black construction workers in the early 1960s.

The role of racism in hiring was documented in a landmark 1993 study by the New York City Commission on Human Rights that examined the construction trades. The report found underrepresentation of minorities in trade unions greatest among Asians and Latinos. The report also said that white male workers routinely became union members after working at a job site for one to four weeks, while minorities often spend four or five years in an apprenticeship program.

But Eddie Malloy, president of the N.Y.C. Building and Construction Trades Council, says charges of racism are empty. Mr. Malloy says some 41 percent of those enrolled in city apprenticeship programs are minorities, and that Chinese community groups have failed to inform their members about the program.

“We’ve had debates on this, and unfortunately some people still like to beat that drum,” he says. “That the Asian community is not represented proportionately in the building construction trades, I don’t believe is a fault of ours.”

But last summer, Wayne Wong, a carpenter and member of his trade union, approached a Plaza Construction foreman at the job site and was told: “It’s not your time.” Plaza Construction officials declined to be interviewed for this article.

For workers from the city’s expanding Chinatown neighborhood, finding a job in construction is one way to break out of the cycle of low-paying employment in restaurants and sweatshops.

“Those people who are in Chinatown today realize the limitations of working in their neighborhood – you work in restaurants, you work in garments, you will never learn English and never get out,” says Peter Kwong, author of a book on Chinese immigrants and American labor. “This is not simply a legal case, or job issue; for these workers, this is a historic mission.”

Until a decision is reached by the NLRB, Mr. Hui plans to continue the rallies at the university and lead workers to city construction sites in search of jobs. “This isn’t about whether these workers are union or nonunion,” he says. “It’s about them being Chinese.”

Leon Lazaroff