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CoverStor~ Ot long ago, Brazil conjured images of street children, foreign debt or, at best, tutti-fi'utti hats. No longer. Whether it's the caipirinhas flying off of New York bars or the sun-kissed sylphs on catwalks from Milan to Guangzhou-almost anywhere you turn, there's a bit of Brazil in the air. Page 42

BLAME IT ON RIO: Why the world loves all things Brazilian OPINION: An Icon, Ready for a Takeover

WORLD AFFAIRS

by Allan Sloan..

U.S. AFFAIRS: ft's ::vJore Than a vVar by Fareed Zakaria ................................................................................. ....................... ..... 8

CAMPAIGN 2004: Can Kerry Make tile Sale? by Howard Fineman .......................................................................................................12

The Solitary Soldier by Evan Thomas ................................... ...14 HILLARY CLINTON: 'I Do Get Agitated' by Melinda Henneberger .. 20

FRANCE: The Ch irae Doctrine by Christopher Oickey ............................. 22 RUSSIA: [\.'Iovi ng In for the Kill by Frank Brown ......................................... 24

PAKISTAN: The rvlilitants Strike

Back by Owen Matthews and Sami Yousafzai .................................. 26

CRIME: China's Campus Killers

OUT OF THE SHADOWS: Finding the real John Kerry

by Sarah Schafer ..

. .................. 28

. ...........................................................................................35

SCIENCE & TECHNOLOGY TECHNOLOGY: iPod

\"\Torld by Steven Levy .............................................36

SOCIETY & THE ARTS CULTURE: Evervbodv Loves Brazil by Mac Ma;golis.~ .................... 42 MUSIC: Building a Bigger Star by Tara Pepper ........................................ ..46

BOOKS: Dancing for Their Lives by Malcolm Seith ............... ..................... ..49

DEPARTMENTS PERISCOPE ... ......................... 2 PERSPECTIVES .................................... 4 WORLD VIEW: Jeffrey E. Garten ........................................ 7

BUSINESS

GAMBLING: Virtual Villains by Avraham Karshmer ................................. 32

THE TIP SHEET ...........................50 THE LAST WORD:

THE SWEETEST SOUND:

HONG KONG: Recasting Film by Alexandra A. Seno ...............................34

Bernardo Bertolucci ................................ 52

The

magic of Apple's iPod

COVER: Photograph by Issei KatO-REUTERS-CORBIS Vol. CXlIV, No.5. August 2, 2004@2004 by NEWSWHK, Inc., 251 West 57Th STree1. New York, NY 10019. PrinTed by ST. tves, Inc., Hollywood, Fla., U.S.A. All rights reserved. Registered aT The PosT OHice as a newspaper. Copyright under The InTernaTional CopyrighT ConvenTion. CopyrighT reserved under the Pan American Convention. NEWSWEEK, The InTernaTional News Magazine (lSSN 0163- 707X), is wriTTen and edited lor a worldwide audience and is published weekly, excepT combined in April: laST TwO weeks; June: firsT two weeks; September: lirst Two weeks: December: lasT two weeks plus special year-end issue, by NEWSWEEK, Inc .. 251 Wcs157Th StreeT, New York, NY 10019. Periodicals pOSTage paid aT New York, N.Y. and additional mailing offices. Postmaster: send address changes TO NEWSWEEK, The InTernational News Magazine, 251 WeST 57Th Street, New York, NY 10019. To order reprints (minimum order required: 500 copies) orrequeSI permission TO republish a NEWSWEEK article plcasecaIl1-212-445-4870 orla~ 1- 212445-5764. NEWSWEEK es una revista semanal ediTada desde 1933, imptesa en los Talleres de SI. Ives, Inc., 2025 McKinley STreet, Hollywood, Florida, U.S.A. EdiTor responsable David W. Swanson en domicilio, 251 WeST 57Th StreeT, New York, NY 10019, U.S.A. Dcrechos de propiedad intelecTual y de Traduccion a cualquier idioma reservados en Todos los paises. Argentina: clasil icada por el Correo ArgenTino como de "inTeres general" bajo Concesion No 4412 de Tarila Reducida. Aruba N.A.: PorT 8eTaald. Bolivia: Porte Pagado. Brazil: Registrada no Servico de Censura Federal sob 0 nO.1.89B- P.209/73. COSTa Rica: Porte Pagado. Republica de Honduras: Porte Pagado. Mexico: Franqueo Pagado. Publicacion Periodica. Permiso No. 004 0284. CaraclerisTicas: 224452703 AllIorizado por Sepomcx. Republica de Panama: Porte Pagado. RecisTrada como correspondencia de segunda clase en la Direccion General de Correo y Telegralos de Guatemala baio el No. 2513, lolio 73 con lceha 24 de mayo de 19B2. Importador: Oistribuida en la Republica Mexicana POt OisTribuidora De Imptesos, SA de C.V., Mariano Escobedo No. 21B, Colonia Anahuac, lll20-Mexico, O.F., Tel 545-6645 a147, Fax 545-4736. Camara de Comercio No. 00311B. R.F.C.: DIM 450405 HlB. ImporTador suscripciones: RepreSenTaciones Editoriales InTernacionales SA de CV.Calie 29 No.579 -A, IZTapalapa, C.P. 09310, Mexico O.F. Tel. 694 -6465, Fax 635-00B7, Camara de Comercio Num . 201BB3 R.F.C. REl-911029-VAA.

NEWSWEEK AUGUST 2, 2004

GAZA STRIP

A Tussle for Power

HAT'S GO ING

on in Gaza? After a series ofkidnap -

against theArafat cronies who until now have controlled the majority of security forces in

pings oflocal police officials as

Gaza. Abu Habal and others,

\\o'eil as French aid workers, Palestinian Authority Chairman

like Palestinian Ia\vmaker Marwan Kanafani, say sen ior securi-

Yasir Arafat streamlined the

ty officers would routinely tllke

chaotic Palestinian security bribes or blackmail businessservices last week men. Some helped into three branchrun brothels in Ga7A'l, and would es- a move long demanded by "f~m rich people in Palestinian reformcompromising situations and extort ers and ,"'estern money from them," governments- and apIX>intcd new says Abu Habal. chiefs to oversee According to him, them. Then, after DAHLAN: Future leader? ousted police chief protests over one of GhaziJabali, kidhis allegedly corrupt nominees, napped for eight hours onJuly he \vithdrew dle appointment. ]6, confessed on ,~deotape to \Vidl Prime Minister Ahmed some of the abuses while being Qurei threateningto resign un~ held hostage at gunpoint. At less he was given true control of least nvice before in recent the government, it looked as if months,Abu Habal says, milian internal refonn movement tants have alxiucted security was finally gaining steam. officers and videotaped thei'r What's really happening, confessions before freeing them. though, looks more likean "This was a struggle behveen a fev~' individuals over control and old-fashioned power struggle. Fatah actj"stJamai Abu Habal turf," says Kanafani, who represays the kidnappings were an sents Gaza City in the Palestinian Legislative Council. attempt to gain ammunition

Impotent Force

'While neither Kanafani nor other officials in Gaza will point the finger at anyone in particular, many observers see the

the Palestinian Preventive Security SeJ"\~ce, at work. Though

hand of Mohammed Dahlan,

fiercely loyal to Dahlan, and

the 43-year-old former chief of

British and U.S. mediators see him as a future leader. With Israeli Prime Minister Ariel Sharon pushing",~thdra\val from Gaza, Dahlan and others in Arafafs Fatah party are well aware that their chief rival will be Islamist group Hamas, in large part because of its repu-

ATO'S intervention in Kosovo, in 1999, was hailed as a victory for humanitarian interventionism. But the real test of the alliance came this March, according to a new report by Human Rights

Watch, when ethnic riots engulfed the former Yugoslav province. The objective facts are grim: over

a 48-hour period, mobs of Albanians numbering in the tens of thousands attacked Serbian villages across Kosovo, burning houses and Orthodox churches and displacing

more than 4,000 people. By and large, says HRW, "NATO peacekeepers locked their gates and watched as Serb homes burned. ~ In the village of Svinjare, Albanian crowds rampaged right outside the

gates of a NATO base.

he quit the job in 2002, members of Preventive Security are

tation for incorruptibility. Dahlan recently told NEWSWEEK hewas working on

Five years after expelling Yugoslav forces, NATO has failedmiserably-to adapt to changing circumstances, says HRW. Instead of recrafting its mandate to involve genuine peacekeeping, it behaves as though it were still there to deter a Serbian re-invasion. "They don't need tanks, but riot gear and soldiers trained in dealing with

changing Fatah's image. "Gaza

public disorder," one angry U.N. official told HRW. NATO's failures

made mistakes." Those of others, too, may well be revealed.

only make a difficult situation worse.

-MICHAEL MEYER

can be like Kabul or it can be like Dubai," he said. "Vie have to change everything .. . I was

from the Authority, and we

-DAN [PHRON

NEWSWEEK AUGUST 2, 2004

25 million The estimated number of people rendered homeless by recent floods in northeastern India

U.S. AFFAIRS Foreign Vote na closely divided nation where the last presidential contest was decided by just 537 votes, both U.S. political parties are upping efforts to court America's estimated 6 million expatriate voters. In the past, expats - especially military voters-have consistently leaned Republican. This time around, organizers for both parties say that the Iraq war has made Americans overseas more conscious of the importance of their vote, and all ballots are being contested fiercely. Diana Kerry, Democratic candidate John Kerry's sister, has hit the campaign trail everywhere from Mexico to France, Germany and Britain. And the number of countries hosting chapters of Democrats Abroad has more than doubled since the 2000 election, from about

30 to more than 70. The Bush-Cheney team is working to woo the world, too. Former veep Dan Quayle recently traveled to Germany to stump for Republican votes, and George P. Bush, the president's nephew, is scheduled to swing through Europe and, pOSSibly, his mother's home country of Mexico. At least one major Republican group is planning an ad campaign in foreign papers. So far the extra attention seems to be paying off for both camps. Democrats Abroad chapters report that their voter- registration results have doubled, while Republicans say they've seen a similar increase. And overall requests for voter- registration applications from American s living overseas have surged; with several months to go until

Election Day, federal officials say more than 340,000 have already been sent out, compared with 250,000 for all of 2000 . Maybe the world will have a say in this year's U.S. elections after all. S CA NDALS

NoteTaker

HYDIDTH E

story about the Justice Deparbnent's probe of exnational- security adviser Sandy Berger's

cd that Berger, during three visits, left with cop ies of a Cli nton adm inistration report on th e handli ng of fo iled millen nium terror plots. The FBI, NEWSWEEK has learned, com pleted its probe in Janua ry. The matter had been sitting at Justice for months, and prosecutors, while viewing Berger's conduct as a seri ous breach, were uncertain

mishandli ng of classified documents break last 'week? T hat is the question they had many in \Vashground to ington were bring a crim iasking after nal case. Derus the disclosure BERGER: Suspiciously timed leak called the leak political, notforced Berger ing it co incided ,,\~th the eve to resign as a top adviser to John Kerry. The FBI was first of the Democratic convention called in last fall after natio nand the 9/ 11 report's release. al-archives employees reportAnother una nsv.rered question CU)(:K'MSE fl\O ~ TOP, I.OE l I1,.\N~-~ P, A ~'HD KM AlEIl - S£TTY IMAGES. ~H O R E W EMREN KIVJjZ. KEVI Nl M.lAROOC- R!UHIIS, D~ RK D VOJINOYIC- AP

- REBECCA SINOERBRANO

is what was in the docu ments Berger took. T he repo rt, one sou rce said, found serious lapses in the governm ent's response to the terror threat. It said the FBI needed better translation capabilities and that more effort should be put into monitoring fo reig n students. T he report alleged there could be terrorist sleeper cells already operating in the United States. One reason the docu ment is still secret may be that it said that stacks of intercepted com munications between a BrookJyn mosque and suspected terrori sts in Afghan istan \vere among volumes of raw inte! that sat around un translated. -MARK HOSENBAl l and MICHAEl lSIKO FF

Not Working Out? Even as France ponders dumping

the 35- hour workweek to boost its economy. it's less than clear that spending more time at work

always yields higher productivity. Worker productivity WORKWEEK (HOURS) OUTPUT PER HOUR

Sweden France U.S. U.K.

_ _

• • •_ • • •_

• • •_

EII•••_ m • • •_ EII •••_ EII_._

Japan Germany Netherlands _ Mexico _ Italy _ Spain

• • •_ _ ._ _ ._

SOURCES, OECD. EUROST~T

120

BOND BOON: Iraq's stock exchange is back

"a dinar ait1.ir," says Jan R.1ndolph, chief economist for \Vorld

Markets Research Centre in London.

Invest in Iraq

AGHDAD BONDS,

nancial system has begun to revive, with the reopening in late June of the Irnq stock exchange and last week's ISO billion dinar ($lOO million) sovereign bond issue. The bonds are crucial because they allow the govemment to establish a baseline interest rate for investors. Ideally, this \o,:ould encourage the creation of other investment vehicles. But in the short term, Iraqi debt and equity markets are likely to remain

"Time is not on our side:' Thomas Kean, chairman of the 9/11 Commission, on the need to overhaul America's intelligence agencies before another major terrorist attack occurs

Analysts expect that Iraqi bonds will pay 5 to 8 percent interest,

BUSINESS

anyone? The Iraqi fi-

PERSPECTIVES

probably not enough

to entice foreign banks, f,';vcn the myriad political risks. So it's likely that the main buyers "viII be Iraq's own banks. The newly reopened stock exchange is likely to remain a local market for now, too. But even though it closed during the war, its reopening has already attracted some new financiallistings and should have "a powerful psychological effect," says Randolph. If the new bond issue does encou rage a 'Nave of new lending, at least there will be a place for Iraq's new businesses to list. - RANA FOROOHAR

,"-,,-,DL.-:tog Blank"","-et"'---,.,outh Korea may be one of the most wired societies in the world, but some Koreans are beginning to wonder if Seoul is truly ready to embrace that status. last Thursday a university student in the capital was fined for posting political parodies on the Internet. In 2003 some 18,000 Web sites were censored for crimes such as "undermining law and order." And since late June, about 50 Web sites have been shut down for allegedly trying to post the video of the execution of South Korean hostage Kim Sun II. Authorities have also blocked large Weblog services, cutting off thousands of blogs that did not offer the video. Officials claim the blanket ban is merely a technical matter: although they could shut down Korean sites, they couldn't be as targeted with foreign

blogs. Bloggers, though, worry that average Koreans are coming to accept infringements on the free flow of information as normal. Kevin Kim complains on his site, Big HominOid, that Korea "has not come far out of the shadow of its military dictatorship past." While that may be extreme, Robert Koehler, whose blog, the Marmot's Hole, is one of the most popular English-language sites about Korea, says, "there seems to be this idea among Korean Netizens that the Net [is] a forum for expressing the power of nationalism. ~ Trying to help the country's reputation' though, may only end up hurting it. -MARK RUSSEU

"Please explain who the idiot was who thinks that you can cut the infantry at a time w hen the pressure on them is enormous." Bruce George, Britain's House of Commons Defence Committee chairman, after his govern ment announced that 20,000 Defence civil service and armed-forces personnel would lose their jobs

"I cannot say the world is safer today than it \-vas t\vo, three years ago." U.N. Secretary- General Kofi Annan, countering U.S. President George W. Bu sh's declaration that he had made the world a safer and more peaceful place " Move to Israel, as carly as possible." Israeli Prime Minister Ariel Sharon, advising French Jews to leave France immediately on account of increasing anti-Semitism there

"One, J take responsibility. 1\"0, J make no apologies.

Three, I stuck to my oath." Philippines President Gloria Macapagal Arroyo, responding to U.S. criticism of her recent decision to recall troops from Iraq to save a Filipino hostage's life

"Men can't cook, can't clean and often they aren't abl e to be politicians either." Alessandra MU5solini, fiery granddaughter of II Duce, attacking M.E. P. Godfrey Bloom for saying that women don't "clean the fridge enough-

"I'll be hon est, I didn't understand th e talk." Caltech scientist John Preskill, after listening to famed Cambridge astrophysicist Stephen Hawking present a paper claimin g to solve the "black hole information paradox." Hawking's retreat from his original 1974 theory won Preskill a friendly bet he made with Hawking seven years ago.

SOURCES FROM TOP TO

BOTTO~,

AP. THE WASHINGTON POST. REUTERS. GUAROIA H.COUK AGENC[ FRANCE Âˇ PAESSE. FINANCIAL T I ~ES. AP

MOVIES

Maria's Life as a Mule

Colo mbian community in Jack· son Heights, New York, who has hel ped repatriate the bodies of almost 400 drug mules. The meetings paid off: "Ma ri a Full of Grace" is a bleak but g ripping g limpse into one of the world's darker rea lities . T he film's only fault: Ma rston didn't find a bigger part for Thb6n, who makes just a minor cameo as Don Ferna ndo, a character inspired by his own story. - KATHRYN WILLIAM S

BOOKS

GIIIPPlIIG; Moreno's portrayal of a heroin mule is achingly reliistic

ROWI NG UP IS '·IARD

to do. Especiall y when the only way to make a decent livi ng is to swallow half a kilo of hero in _"Maria Full of Grace" foll o\\'5 17·year-old Maria (played by Co lombian newcomer Catalina Sandin o Moreno) from her job dethorn ing roses at a fl ower plantation outside Bogota to )Jew York, to which she travels as a drug mul e, transporting heroin in exchange fo r 55,000. The work is dangerous ( Maria swallows 62 grape-s ize latex pellets fillcd \vith heroin ; if they were to bu rst, she woul d die), but thc

celluloid depiction of\1aria's pred icament is far fron exaggerated - although a futional tale, this is also real li fe. Each year, hundreds of mup..s cross borders to fu el d,e illicit-drug trade. Th ey often end.!p injail or dead. Althoug h it's his £j ut featu re film , director Joshua ~Jarsto n who also ..vrote the scri ptpulls off a documenta,),-like realis m with the gritt) cinematography one walld expect of a seasoned p ro. TI'e 30-yearold from California dd his re· search, too, consulti Ig Orlando TobOn, a real-life helOofthe

Activism Lives

O P ED JES

last. So said reti red Ameri can fa rmhand Jess ie de la Cruz, comm enting on th e struggle fo r farmers' rig hts shortly before the United Fa rm \ \Tarkers uni on was for med in 1962. So, too, says Pulitzcr Pri zewinning historian Studs Te rkel in hi s book "Hope D ies Last: Making a Difference in an Ind ifferent World ." Just publi shed in ternationally, the book captures th e voices of

morc than 50 Amcricansrang in g fro m well -known figures like folk singer Arlo Guthri e to o rd inal}' citizens like And rew McNeil, a bike messenger in New Yo rk- who have li ved th ro ugh some of the coun try's most criti cal moments over the past century. But th e book is more th an just a window o n Am erica's past: the vig nettes also trace an interesting perspective o n the contemporary Uni ted States, a land where many li be rals feel that ho pe has d ied and "passivity appea rs to be th e order of th e day." As he describes unio n protests in the 19305 a nd the civil-rig hts and anti war movements of the 1960 s, TerkcJ insists that a g rowi ng body of young activists is fo llowi ng in the legacy of th eir ancesto rs. It is in th e small acts- for insta nce, a wo man fro m Chicago as king her empl oyer to lower her salal) ' below the taxable in come and donate th e rest to charity- that the Ameri ca n consc io usness still flo uris hes. Indi ffcren t to the world and pass ive as Ameri· ca ns sometimes may seem, Terkel argues, they can still be counted o n to ri se up a nd make a difference during troubled ti mes.

COMICS A Mayor Talms_OLLn_'Dl<JOa!lLJrkD-Fi"-"o~r-"",,,ces~'_ _ _ _

-"_RAH _sENN_orr

or month s, Mexico City Mayor and 2006 presidential hopeful Andres Manuel Lopez Obrador has complained about his opponents' dirty tactics, suggesting that the right is conspiring against him. Now his worst fears are appearing in comic - book form , "The Dark Forces Against Andres Manuel Lopez Obrador: published and distributed free of charge to 2.2 million Mexico City doorsteps, has Lopez Obrador's critics up in arms. For one, they argue, his use of City-government funds to publish it is unethical. And the comic book reeks of propaganda-Nazi propaganda at that, according to one Mexican daily. In reality, the comics are less slanderous

FMId TOP RIGHT ~OTOG~

BYO~"'I E N

OONn FOR N (w S W E( ~ . NO CR£DIT Il)

than shanelessly self - promotional, depicting the nayor as a stoic public servant constantly Ulder attack by opponents-in one story linl inspired by a scandal this February, a pack o· monsters masterminds the videotapng of one of lopez Obrador's minister: receiving cash from a prominent businesS1an. The mayor could use some help; hi Slupport declined afler he denounced 1 June anti - crime rally as lconspiracy.And the corre format is cupeallng to his b:se of lower- riddle-

class Mexicans, who are not considered regular newspaper readers. Whether that'll be enough to best his enemies is still unclear. - ALAN CORDOVA

11~~~~;::~~§'~~§§~1

LETTER FROM CRACOW BY BELINDA COOPER

Of Klezmers and Conciliation HEN I FIRST VISITED KAZI-

MATT DAMON THE TALENTED

.\fir. Damon is

back in action as o n-th e-run Jason Bourne in Bourne Supremacy." He spoke with N EWSWEEK's Sean Smith. The first "Bourne" gave your

career a boost. Before "The Bourne Identity" came out, the last hvo movies I had kind of headlined were "The Legend of Bagger Vance" and "All the Pretty Horses," and th e word on the street was that "Bourne" '\'3S going to be a turkey. It was like my

third strike. Instead, it was a home run. Does

micn, the former ]e\vish ghe'to ofCracmv, it felt empty. Its 60,000 Jews had perished in i\azi coneentTltion camps and, even in 1985, few Poles hac moved in. The place ''\'as an eerie void. My father pointed out the building he'd lived in as a poor student in the 19305; it was a burned-out sheil. Od,ers stood deserted bUI for a handful of squatters and alcoholics. In front of the main synagogue on Szeroka St~et, one small gallery soldJewish·thcmed art to the occasional tourist. The flourishing culture ofJcwish Poland was gone and, it seemed, dl but forgotten. Now Cracow is hosting its 14th annual J~w ish Culture Festival, and cvelything's changed. I remember the still·subversive fccl of the fU'st one I attcnded, in early 1990 just after the fdl of communism. Its non-Jewish organizeri spoke movingly about the importance of r(discovering Poland's Je\\~sh heritage - somctJing of an official secret under

;'G

;

of HasidicJews, side by side with wooden Madonnas and Christs. A modem Center for Je\\lsh Culture appeared on the market square. Yet there were barely 200 Jews in Cracow. T began to wonder if, despite many people's ob· vious good intentions, Cracow's nevI·found interest inJews was deteriorating into an absurd exercise in exploitation. Returning to years late r, I'm less cynical. Jewish "Disneyfication," as some call it, pro· ceeds apace. Szeroka Street boasts half a dozen "Jev\'1sh"-thcmed restau rants. Synagogues have been restored and Jewish museums opened. Hotels abound. In fact, I'm st.:1}~ng in one that occupies the very building where my father used to livc. But more enco urag ing are the signs that Je\vs and Poles are no longer talking past one anothcr. Tcn years ago, discussions about anti-Semitism were often frustrating. Raised on stories of Polish hcroism and vic"timization, many Poles could not acknowledge that theYl too, had victimizedJews. Recent revelations - the fact that Polish villagers murdered hundreds of Jews in towns like Jedwabnc a nd Radzilow- ha\·e forced Poles to look more critically at their own history. Jews are changing their historical mind-set, too. For

;'i'l e'i'; ;'0"

being "hot" and then "not hot" make you cynical?

It was kind oflikc the rosecolored glasses came otT. It's not personal. I understand. But, yeah, part a f you is like. "F---ing a-- holes!" The studio PR machine is saying you did a lot of your own stunts. Any time you he.:'1 f a n actor

braggi ng about doing his own stunts, you know he's full o f s--t. There's nothing so dan · gerous that you could get hurt. The only thing that scared me was some undcnvater stufr where I don't have a tank. It wasn't th at bad, but r kept waking up in the middle of the night taking huge gu lps of air. This is your first sequel. In the fall you'll have your second, "Ocean's 12."

Yeah. I'm a whore. Nah. It's not like you're doingthe sequel to some crass movie like _

I can't say it, man. You've got to say it. "Armageddon."

the communists. Young Cracovians dan ced to klezmcrs and listened to talks onJe\\~sh subjects. \Vell intentioned as it was, watchin~ non-Jews s ing Yiddish music on what, in efi<ct, was a vast Jewi sh graveyard left a sad afterta ~e. The anti-Semitic graffiti that soon appearct added to the gloom. Only a fc\v years later, the strange phencnenon of the "virtual Jew" \vas in full swing Jewish culture \\~thoutJews. The Ariel gallt!) had become a cafe in which Polish waiters donned yarmulkes and "Jewish fish" graced tlc menu. Steven Spielberg's movie "Schindler's List" had put Kazimierz on the tourist map. A new Jewish bookshop featured "Schindler's List" tours. Vendors sold sOllvenir carvings

decades Jews have seen Poles mainly as perpetrators, not far removed from Nazis. They tend to forget that Jews lived and flourished in Poland for centuries, and that Polish culture influenced ou rs. Now a younger generation of Je\vs is rediscovering these roots in film, music and dialogue. Thus the Jewish festival has become something more than a memorial. Je,,"'S these days return to Cracow not only to mourn but to celcbratc, as the author Ruth Gruber has put it. "\Vhen I drink and talk with my Je,,~sh fricnds," one of the organizers told me in 1992, "we are creating a ncwworld." Drinking into the night to the strains ofklezmer all Szeroka Street a few weeks ago, [ discovered he might be right.

[Laughs) There you go. 6

fAOIo! lOll: VERA

~ "oc,q SO~ - CO " I(lIJR

PHOTOS. CL\RE~ SOIOLOWSl' - AP

How 5Billion Got Left Behind BY JEFFREY E. GARTEN

T'S HIGH NOON FOR GLOBAL TRillE :'-lEGOTlATIONS. SINCE THE

breakdm.VI1 of talks in Cancun, Mexico, last September, Supachai Panitchpakdi, the director-general of the World Trade Organization, has tried frantically to get what is called the Doha round back on track. He has flown more than 250,000 kilometers, including making six trips to Mrica and four to Latin America and the Caribbean. He has

implored top officials in the United States, Europe anclJapan, and all over me developing world, to return to the negotiating table. By July 31we ,viII know the outcome of hi s cflorts. That's the deadline (or producing a road map to guide the negotiations to an end. If agreement isn't reached this wce~

the combination of the U.S. presi-

dential election and the installation ofa new European Commission in Novemherboth of which could lead to policy reviews and new chief negotiators - could sap all tJ1C momentum and jeopardize the very future of the wro and all it sta nds for. Unfortunately, even if the negotiators agree to move fonvard, the ultimate results are apt to fall short of Doha's loudly proclaimed goal: to give developing nations a greater share and say in global trade. \,Vllatevcr happens this week in Geneva, at best the Doha round \\rilliook pretty much like its predecessors- a dea.! cooked up in tJ1C back room between 'Nash ington and Brussels \\rith their narrow interests in mind and a few crumbs offcred to poorer nations. For example, nothing currently on the table would sign ificantly lower U.S. and European Union agricultural subsid ies and banÂˇiers to impOlts of developing-world food an d industrial products, celtainly not to the e).1:ent those countri es requi re. More import.:1.nt- and much less noticed-is the f.:1.ct that very little ..\rill be done to give such nations access to cheap generic drugs, or to lower the obstacles to migrant workers scekingjobs in the developed world, or to further open rich markets to the competitive maritime shi pping and construction industries of developing nations . The cards will still be stacked in particular against the 50 very poor countries NEWSWEEK AUGUST 2, 2004

AT ISSUE: The poorest are only getting poorer

Conside r: of the 6 billion human beings on earth, the richest billion earn 80 percent of global income. Of the remaining 5 billion , half earn less than $2 per day and half are unde r 25. Hundreds of millions of new jobs will need to be generated to keep this popu lation from a social implosion that would c reate an econom ic and moral catastrophe. Such a state of affairs would also lead to massi ve national-security problems for the United States and Europe. It would be one thing if the lives of the 5 billion poor wcre uniformly imprmring. True, in China and some other Asian countries tJlcre is cause for some optimism. But more generally, U.N. statistics show something else: no improvcment in poverty rates in meSO poorestcQuntries; 8,000 people

infected by I-I IV/AIDS every day, with the epidemic crippling not just Africa but potentially Asia; billions of dollars in shortfalls in foreign-aid disbursements relative to commitments from rich coun tries; environmental deterioration ne.:"\rlyevel)'\vhere. And what the statistics don't show is that rich nations are not prepared to open their markets to developing cou ntri es because they aren't talcing the Il ecessal), steps to help their o\vn citizens cope \\~th the impacton thcirjobs. \Vhat \vill be needed is a 2lst-century safety net for workers in wealthy societies. Every country has its own system, but in the United States this wou ld me.:1.n, at a minimum, pormble pensions, poft.:1.blc health insurance, more ex-

At best, the Doha Round will look pretty much like its predecessors-a deal cooked up in the back room between Washington and Brussels such as Haiti, Zambia, Nepal and Cambodia, all of which need c:\tra-spcciaJ trade assistance. 'lb be sure, Western tradc oHicials would see any result as better than outright failure. And most of them would say that the placc to gct at real development issues is not in the \\11"0, whcrc developing cou ntries a rc required to engage in reciprocal bargaining, but through foreign aid and organizations like the \Vorld Bank. They arc badly mistaken. Development is the most urgent global challenge OftJ1Ccentury. It can no longe r be walled off from other internationainegotiations, be they related to trade, investment, communications, rransport:1.tion, collntcrtClTorism, com mCITe in illegal narcotics-you name it. Everything should now be about development.

tensivc transitional unemployment insurance, better assistance for job retraining and a major overhaul of secondary education. Suffice it to say we're light-years away from all this. So let's hope that the next few days \.vill bring an agreement among trade ollicials in Geneva. \Vithout a clear agenda, the \"''1'O's 147 members \\~Il have little incentive to engage in the tough concessionswapping needed to reach a deal. Completing the talks could take a year longer. But let's not fool ourselves into thinking that if victOlY is proclaimed, it will be anything close to what is really needed. Doha is still being called dle '"development round," but real development is not on tJle table. GARTEN is dean of the Yale School of Management.

BY FAREED ZAKARIA KNOW THAT THE

9/n COMMISSION REPORT HAS

had a real impact because Congress has decided to meet in swelteling August to act on its recommendations. In fact, the report is fast achieving Biblical status. Both left and right cite its arguments to vindicate their claims. The Wall Street Journal editorial page believes that it confilms the Bush administration's version of events. Liberal columnists say it amply demonstrates Clinton's strong focus on AI Qaeda. This is in some part because the report is vast and detailed. If you search hard, you ,,~ll find in it what you want. But mostly the near~universal approval reflects the report's quality. It is that rare thing in \Vashington, a genuinely bipartisan product. It is thorough and t:1 ir, with a sense ofhistOl), and of the breadth of its mandate. Because of extraordinary, almost unprecedented access to classified documents, it provides a unique bird's-eye \~ew into decision making at the highest levels of governm ent. It is also well written, rare for wo rk that is tJ1e product of a comm ittee. All of this makes for the Illost impOitant report by an independent commission in decades. And what does it say? The press has focused on its administrative recom-

mendations: a new intelligence Cl..ar, new systems for congressional oversight of intelligence, homeland security and so on. Bureaucratic reforms are important. But all tllis attention on organization charts misses the big picture. What we need first and foremost is a grand strategy. The absence of such a comprehensive,

long-term approach is the cruciaJ gap in American policy. And it won't be solved by a better bureaucratic structure for intelligence. The obsessive focus 011 bureaucratic reform is a product of a very American search for a simple solution. There's a problem ; create a new government position to fix it. But what the 9/11 Commission report really does is

take us back to bas ics, back to 9/ 12. T he

United States

W:t5

att.:"lckcd brural ly by a

new e ne my, mi litant Islamic terror. How should we handle this threat? The commission puts fo rward a series of ideas and approaches in the first of two chapters of recommendations. Th is chapter ("""hat to Do?") precedes the one on organ izational changes ("How La Do It''), which only makes sense. \·\That th e co mm iss ion sug gests doing is impOIia nt, pers uasive and a

THE

subsL.'1ntial departu re fro m current policy. The conclusion ta kes on the central organizing idea of the post-9/ ll strategy-th at we are at war-and is deeply skeptical of it. The

report notes that the use of the metaphor of a war accurately descri bes the effort to kill terrorists in the ficld. as in Afghanistan. [ t also properly evokes the need for large-sca1e mobilization. But the report points out that after Afghani sta n, the scope for military action is quite lim ited. "Long-teml success," it concludes, "demands the use of all clements of national power: diplomacy, inte1ligence, coven action, law cnforcemcnt, econom ic pol ic..·y, foreign aid, public diplomacy, and homeland defense." E\'en when it s~aks of preventive action it suggests ".1 preventive strate!:,')' that is as much, or 1110 re, political as it is mi li ta IY." H E REPORT DESCH.lBES T H E

struggle as "mo re than a wa r," but what the conclusions make plain is that it really mc..1 ns that it is different from war. Of the 2i recommendations in this chapter, on ly one can be seen as ad\"ocatingthe useof military force: attacking "terrorists and their organizations." And c\'en that one, o n doser inspection, is more complicated. The sanctuaries identified arc in places like Pakista n, Thailand, and Nigeria and in Central and Eastern £uropca n cities wi th lax bo rder controls. \Vhat are we {() do, im'3de these countries? The only way that \""c will apprehend or kill suspected [elTo rists and d isru pt their organ izatio ns is by coo perating with these gove rn ments. Tt is incfC.:'lSingly clear that the conflict in Afghanistan f..1lsely fed the idea that the war against terrorism was a real wa r. [n f..1.ct, Afghanistan was an e.xceptio n. The reality of this threat, the "ery re..'lSon it is so difficult to tackJe, is precisely that it cannOt be addressed by conventional milimry means. Yet dle prism of war has distorted the vision of importa nt segments of \Vashington , especially witJlin the Bush adm inistration. Thi s

a iii 10

FOLupdated covelage fro m..o.ur correspondents a(oundJhe globe, log on to_Newsweek.com on MSNBC

has produced bad su-ategy. The Yale historian Joh n Lewis Gaddis has wri tten on the Bush administration's strategy and describes its tJlree pillars as hegemony, preemption and un ilateralism. All three approaches seem justifiable if you believe that we are in a war that can bewoll militarily. All arecounterproductive in a struggle that seeks to modern ize alien societies, win over Muslim moderates and sllstain cooperation on intelligence and lawcnforcement across dle world. Th e issue of Iraq highl ighted these choices. ~ f you bel ieved tllm this was truly a war, all that mattered was defeati ng the enemy. If you beli e\'ed that a broader political struggle \vas key, then creating a new and modern Iraq was in ma ny ways more im pOltant than defeating Saddam Husse in. The ad mini stration shO\ved its colors with a brilliant war plan and no postwar plan n ing. Even in Afghan istan, where the \\'31' succeeded and the postv.rar settlement is working (though fragi le), the adm inistration's superhawks (such as Donald Rumsfd d) were co ntinuall y opposed to g reater

efforts at natio n-building. It doesn't help the war on terror, thcy argued. But it docs help th e struggle against Islamic extremis m. And there is no war on terror that is nOt fundam entally an idcological struggle. Th e most surprisingly negative picture that emerges from the report is of the Pentagon. T hroughout UlC 1990s, it sim ply did not want to take on the ro le of defending Am erica agai nst th is foe. (Nor, to be fai r, d id tll C \'Vhite I-louse o rder it to do so, eitllcr under Cli nton or Bush, p re-9/1I.) In 1998, a group of mi dlcvel oflicials argued that the Pcntagon should be the lead agency in this battle against tcrroristsi their report went nowhere. That ye.:1.r Richard Clarke chaired an exercise that imagined tllat tc rrorists wou ld hijack a jet plane. fill it \\·i th e),.'plosives and head toward a t.:1rget in W-ashingtoll. He asked th e Pentagon what it could do about sllch a situation. T he answer was, pretty much nothing. Condoleezza Ri ce, who '\'35 asked in June 2001 to draw up plans to attack Al Qaooa and the 'raJiban. reca ll ed to the co mm iss ion that "tll C mili NEWSWEEK

AUGU S T 2, 2004

MOMENT OF TRUTH: The commission makes its official presentation of the final report

• National Intelligence Director: Cabinetlevel official would coordinate 15 intelligence agencies and new specialized intel centers • National Counterterrorism Center: Built on existing Terrorist Threat Integration Center, it would oversee joint operational planning and strategic analysis • Clarify Roles for Existing Agencies: The FBI should establish its own national-security work force. The Defense Department should gain control over the CIA's paramititary ops. • Congress: New committee structures are needed to improve a weak record of in lei, counterterror and homeland-security oversight

tary did n't particularly \vant this mission." . -\ nd befo re and after 9/ 11 the civi lian leade rship of the Pentagon - Donald Rumsfeld, Paul \Volfowitz and Douglas Feith- was utterly obsessed with Iraq. They dismissed the need for a response to the attack on the USS NEWSWEEK AUGUST 2, 2004

Cole, which Rumsfeld and \Volfowitz claimed was now "stale." (In fact, it had taken place four months earli er.) The bulk of the commission's substantive recommendations are for a broad political and eco nomi c strateb,)' to\vard the Yluslim and Arab ,>,'orld. The rcport argues that the United States should "ofTer an examp le of moral leadership in the world, committed to treat people humanely, abide by th e rul e of law, and be generous and caring to our neighbors." Ie recommends substantial resources bei ng devoted to scholarship, exchange and library programs in th e .M usli m world, and has a specific, excellent recommendation to fund public education in th ese cou ntri es. Madrassas and other such religious schools have grown in the J\'1uslim \vorld because the secular educational system has collapsed under the ""eight of poverty and population grmvth. The report's conclusion repeatedly stresses multil ateralism and recognizes that the civili zed world will need a common and coordinated approach to fighting thi s

long struggle. 1t \vill need common standards on sharing intcllige nce, treating suspects, tracking moncy and handling proliferation problems. \Vithout a global -or at least wide, multilateral- system, there are simply too many nooks and cranni es for telTorists to exploit. American security requires global cooperation. A commission stafTer told me that many on the panel thought their recommendations could have bcen titled "Bringing Foreign Policy Back In.'' \Vhat their report also docs, however, is bring hom eland security back in. It urges new screening procedures, biometric identification syste ms, better watch lists a nd morc cmergency-response training. All this sounds less sexy than the politics of diplom acy but it might wcll prove more important. The patchwork of local, city and state systcms- aJl different, some incompatible- must give way to national standards fo r national defense. In the past three years the United States has added almost $200 billion to its spending on international aiT.:,irs and hom eland security, a SO percent increase. Lt has put the battle against terrorism at the top of the global agenda. There has not been such a mobilization of resources si nce the Korean \Var. That analogy is wOlth pursuing. As that war broke, the ~Lrum an administration's first impulse was simply to mobilize all i\.merican resources and throw them at the problem. Only lacer did it begin stepping back and asking itself what was thc best strategy to deal witl1 tl,e broader phenomenon of Soviet and Chinese co mmunism. Truman's team initiated a debate among its leading th inkers- George Kennan, Paul Niue, Dean Acheson, Charles Bohlen- that framcd policy choices for decades. The Eisenhower administration came into office and also forced slIch a reexamination, foellsing on a long-term, fiscally sustainable strategy- in keeping with Eisenhower's own co ncerns. It was in these few years that Amcrica's basic cold-\var strategy was set. Our period of mobilization is 110\V over. Some of what has happened in the heat of these past yea rs was necessary, some grossly overdone. \"'hat is important now is to step back, reflect, reason and construct a longer-term, sustainable strategy. It is a pivotal moment for whoever occupies the \-\lhite I-louse in the next fOllr years. He has the opportunity to act not as a cl;sis manager but a strategist, shaping American polic·y not for the next few years but for the next few decades. AmI ifhe does it right, it • could even mean success.

"* In Boston, he must show America that he has what it

SPEECH THERAPY

takes to lead-and tell us who he really is BY HOWARD FINEMAN

HE WIND HAD FTNALLYCOME UP, AND YET IT

wasn't too stiff: ideal for kite-surfing. John Kerry motored out into the sunlit waters ofNantucket Sound with his longtime friend and insttuctor Nevin Sayreknown to the housekeeper at the Kerrys' island home as "the therapist." 'When Sayre anives, Keny will do the rare thing: forget about politics. Gusty, shifting winds easily can valida.te the SPOli's designation as "extreme." But not on this day, early last week. Harnessed to agiant kite, wearing a pair of

TELUNG HIS STORY: KERRY, CRAFTING HIS TALK ON A PAD IN NANTUCKET

'wraparou nd shades, the 60-year-old senator ski mmed atop tJ1C water on the strength of a soft, steady breeze. "The wind was perfeet for him," Sayre said later. Guiding his boat back to the Kantuckct home he shares with his \vife, Teresa Il einz Kerry. the soonto -be-anointed Democratic presidential nominee was rcia.."{cd. "Now," he said, "1'01 ready for next week." But was he? Riding the \-vind was casy compared with the task Kerry fitced \vhen he sat down on his porch: figuring out hm\' to use his acceptance specch on Thursday night in Boston to win the trust ofvoters. \Vritingin his angular sc ript on legal pads, Kerry mixed his ideas \\~th tllose of three speechwriters and a dozen kibitzers. The core metaphor is familiar by now: hi s role as a Vietnam Swift Boatcol1lmander, resclli ng a mate from a river under hosti le fire. He would pledge to strengthen tlle military and spy sel'\~ces in the post-9/ ll era. and offer a list of"s.:,we us all from the river" proposaJs on education, health care and the em-ironment. Issuing a calJ to public sen;ce, he \\~ 11 invoke his late parents- a filthc r in the State Department, a mother leading Scouts. But \vhat \vould he say about him self? An often solitary figure, Kerry sometimes seems more suited to the role of kite-swfer-all alone on his wakeboard- than rock-jawed captain. "His NO.1 job in his speech wi ll be to get people feeling comfoft:1ble about who he is," says adviser Tad Devine. Meaning: commander in chief

PHOTOGRAPH BY DAVID HUME KENNERLY FOR NEWSWEEK

Judging from polls, undecided voters will at least be ready to listen. For nearly five months Republicans carpet-bombed Kerry with $ 100 million worth of attack ads, depieting him as a flip-flopping liberal elitist too indecisive and enamored of diplomacy to match President George \\1. Bush's "High Noon," hang-'em-high approach to the war on terror. The ads worked, but only up to a point. Kerry is seen as less decisive than Bush, and more willing to shift with the politica) winds. But Kerry remains tied with Bush, or even slightly ahead, in horse-race matchups, and the attacks did nothing to erase the profound doubts about the president's stewardship. "The Republicans tried to distract attention from Bush's problem by taking Kerry out." says Kerry pollster Mark Mcllman. "They fililcd." ::\fow the task is to make the sale to the swing voters- and there aren't tllat many of them to pitch. In 1992. says Bush-Cheney strategist Matt Do\...Âˇd. nearly two thirds of all voters were lip for grabs; this year, by his estimate, only 17 percent are. Bush and Kerry ad\~sers agree on who those "available" voters are. They are morc likely to be female, \vhite, man'icd, working at one or more jobs and carninga middle income. Many are Hispanic. By definition, they tend to pay far less attention to politics than otllers do, and are influenced morc by fleeting impressions ofeharacter than by party identity, ideology or specific proposals. The warning sign for Bush, says

Republican poll taker Tony Fabri zio, is that more of these voters say they approve of the way he is doing his job than say they are going to vote for him. That "approval gap," in Fabrizio's view, is the Kerry open ing. "Those voters already knmv everything they "'..'ant to know about President Bush," he says. "They are willing to be convi nced to abandon him." The targets of opportun ity are equally cie.,)]" in the Electoral Coll ege. "The math is pretty simple," says onc top political adviser to the 'White House. "The pi votal states are Florida, Ohio and Penn syh'ania. W110ever \\~n s t\vo out of thrcc is elected." Accordi ngly, Bush-Cheney'04 is lavishing f.'lntastic SUIllS on all three places-but so, too, is the KenyEdwards campaign. "\Ve have played them e\'cn up across Florida, which wasn't true in 2000," says D e\~ ne. Industrial job losses give Kerry more than a fighting chance in Ohio, hc says, and he insists '\ve are not going to lose Pennsylvania." About 16 more states are in play, \\·i th Democrats foraging behind what used to be the enemy lines in states such as Colorado, while tllC Republicans do like\I,rise in \Visconsin and Iowa. The money race is a close- run thing, too. Ken)' matched Bush in ad spendin g in recent month s, hut that may cha nge. \oVhen Keny is oflicially nominated, he will be limited to spending $75 million in federal funds fo r the rest of the ca mpaig n; Bush has about $50 million of hi s own campaign cash to spend before getti ng his $75 million and accepting th e limits when he is nominated in Se\ ...· York City in early September. "Ob....iously, they'll try to hit us in August," says Devin c. But it matters less what Bush says about Ker!)' dlan what Kerry says about himself In dIe post-9/1 1 \vorld , hi s aides say, votcrs are less interested in a radical change in course tha n a different captain on the bridge. That's conveni ent, since Kerry voted to authorize the war in Iraq and sti ll wants to stay the cou rse there. Nor, Kerry aides say, do voters ,. .'ant an outsider. That's convenient, too, si nce Kerry, a senator for nearly 20 years, isn't one. J lis chief adviser and speechwriting tutor is veteran \Vashington co nsultant RobertShrum, who began wo rkingo n presidential ca mpaigns in 1972 (and who has never advised a winner). He and Kerry are the same age, and share the same source ofinspi ration and patronage: th e Kcnn edys.And yet in recent decades, only tllose Dcmocrats who have SCt dlemselvcs apart fi'om the more liberal aspects of that legal')' (Jimmy Caner and Bill Clin ton) have won. So although the conventioll is in Boston and Sen. 'leel Kennedy will be featured, KerI)' advisers insist that the proceedings won't be a homage to Camelot. "It's not a Kennedy festiva l," says one aide. "It's a Kerry festival." Wll ateve r that is. •

BY EVAN THOMAS

OHN KERRY HAS KEVER FIT IN EASILY. WI-IEN NEWSWEEK asked about30 of his gO-odd classmates

at St. Paul's School to name his friends , they were stumped. Most confessed, after suggesting several different names, that they weren't quite sure whom Kerry hung out with. At Yale, Kerry always seemed to be on the move, going to meetings, changing clothes, never in one place long enough to really reveal himself In the tribal world of Massachusetts pols, Kenywas routinely called a "preppy stiff" and "Live Shot" (for hogg ing the cameras). In th e clu bby Senate cloakroom, Kerry made an easy target. Late oll e Friday in 200 2, as the senators were getting ready to leave town, several colleagues bega n razzing Kerry about his counoy-squ ire clothes, hi s presse<:l corduroys and tweed jacket. Sen. Joe Biden of

Delaware appeared \vea ring the sa me weekend outfit. "\Vhy me?" protested KerI)'. "Look at Biden! He's dressed tJle same way I am." ··Yes, but your c10tJles cost four tim es as much," one of hi s to rmentors remarked. About th e onl y group that seems to accept Kerry is the fraterni ty of men \ ....ho have been shot at in \,..,ar, and even a fe\v of

ON HIS OWN: KERRY ENJOYS A STROLL OURING AVISITTO A STATE PARK IN WISCONSIN

them had trouble accepting his transformation in to an antiwar leader. In a recent interview \\Âˇi th NEWSWEEK, Kerry protested that he's not really distant or remote. "There's nobody who travels with me on the bus or in this cam paign \vho thinks that," he said. But then, in an earnest. and slightly imploring manner, he went on to explain why he may have given off the impression of "brashness." In the inteniew, his manner was not stiffor lordly; if anything, he seemed humble, even vulnerable. Even so, his small, dark, deep-set eyes flashed reproachfully, as if to ask, why, after all hi s years of honorable public service, d id he have to explain why he was unpopular in high school or is still the butt ofjokes? Fairquestion. Afterall, Franklin Roosevelt was sneered at by his eli te schoolboy peers for foppishness and egotism. Future greatness does not ahvays inspire popularity. Coolness, NEWSWEEK AUGUST 2 , 2004

in tlle high-school or hip sense ofdle word, is not a prerequisite for leadership. And yet, in uncertain times, people want a leader \vho seems comfortable in hi s own skin , who has the presence th at comcs from deep and easy confidence- who can hear the uncomplicated inner rhythms of common sense and sound judgment. At times, Kerry comes off as a little too sure of himself. He has been worki ng on his poli tical persona: sm il e more (but not too much!); don't ramble; go easy on theJFK Redux routi ne. Still, there is a posed, wooden quality abollt the public Kerry- and sometim es dle private one, too. At times he loo ks like a stage set, an elegant f..'l<;ade concealing workmen who are still furiously toiling at. some unseen proj ect. So me of hi s closest friends say they don't know what he's really thinking. His distance and opaqueness can make voters uneasy. President George \\ZBush is able to convey

his convictions in simple (and often simplistic) terms. Kerry, on the other hand, seems to require endless, occasionally tiresome explication. At times he can appear overly cautious, or at 1e..'lSt overly deliberate. But then how do you explain his restless energy? O rhow he had the flash ofcourage and decisiveness to beaeh his S". oift Boat in Vietnam,jump offand chase dmvn and kill a VietCong armed \\1th a rocket launch er? Or how so many of his political opponents have underestimated John Kerry right up CO tll eir concession speeches? Kerry likes nuance and subtlety, maybe because his ovm life story requires it. He is, in f..1.ct, a contradictory figure, but tl13t does not mean hi s competing impulses are irreconcilabl e. Holden Caulfield probably wou ld have ealled tl,e prep-sehool Kerry a "phony" (and President Richard Nixon actually did, on a \,y]litc I-louse tape made after Kerry's powerful antiwar testimony before the Senate Foreign Helations Committee in 197 1). But at tlle same time, Senator Kerry also has shown genuine integrity, even when no one was looking. Heisatoncean idealist and a pragmatist. lfhe doesn't fit in Witll the group, th at's partly because he is self-reliant. There is a certain kind of New England sa ilor who likes \\-ind, rocks and tide, and not only because the martinis taste better at the end of the voyage. Kerry is a foul-\\reather sailor who exults in de~1ngthecle ln e nts and finding hi s 0\\11 way. The key to understanding Kerry is to follow him as he navigates in tl1e dark and fog. T he search begins with his own (or, more accurately, hi s fatller's) reluctance to discover (or perhaps reveal) his true family roots. HalfofKcrrl's family is an open book,gilded and leatherbound. His mother, Rosemary, was a dircct dcscendantofJohn \Vintllrop, the first go\'ernor of Massachusetts, who \. .'rote the first great Ameriean politie,u speech, his "City on a Hill" sermon in 1630. Her maiden name (and Kerry's middle name) was Forbe.<;, after a great 19t11-century shipo\\o11ing family dlat still possesses, for its private enjoyment, an island off the coast of l\'lassachusetts that is roughly half dle size of nearby Nantucket. Any child growing up with those family names in the 1950s would be acutelya\\'areof their significance and stature. Because his motller was one of 11 children, howe\'er, tl1e legacy \-vas unaccompanied by fortun e. Keny has professed almost complete ignorance about his father's side of the fami ly. Not until 2003 did he learn, from a Boston Globe reporter, that hi s grandfather \vas born Jewish in dle old Austro-Hungarian Empire, changed his name from Kohn to Kerry, converted to Roman Catl10licism, made and lost a

lot of money in America, and shot himself in the head in a Boston hotel men's room in 1921. Kerry's long ignorance, even indifference, and sudden shock are hard to credit. Kerry sounds like an Irish name, and indeed, his grandfather reportedly picked the name out ofan atlas of [reland. Given that Massachusetts has a large, politically active lrish-CarllOlic population, NEWSWEEK inquired, hadn't Kerry, as a politician looking for votes, been curious about his roots? At first, Kerry said no, he had "nt!'~er really focused on it," then allowed that "I guess I learned when I was 160r 170rsomething" that "Grandpa" had come "from Vienna." But"thatwas it," Kerrysaid. "I didn'tknov,r whether they were English or what. 1 ah'l.rays thought they were probably more English than Irish." English? Irish? From Vienna? It gradually became clear as Kerry backed and filled that he had been deeply reluctant to ask his father, who died in 2000, about his family background. As his sister Diana told NEWSWEEK, "We didn't really go there." Richard Kerry, a career midlevel diplomat, was a formal, prickly, shy man. "You know, I alV\.'3ys sensed in my dad a sort of profound sadness," says John Kerry. He was not the sort of man for confidences or confessions of weakness. David Thome, Kerry's former brother-in-law and closest friend- "confidant in chief," Thorne says-observed that Kerry had a difficult, competitive relationship \\ith

his father. A test pilot during World War II , Richard Kerry pushed his son to take controlled risks. SailingoR"rlle coast of New England, Richard Keny liked to practice nmogation by sailing by compass with a hood over his head. "Ocean racing with him was not firn," says Thome. " I remember a lot of cold, wet trips with him yelling at us."

HE ELDER KERRY COULD BE

caustic with his son. lnterviewed by NEWS\OVEE~ Kerry's brother, Cameron, remembers their father's putting down John's "sophomoric" ideas while discussing foreign affairs around the dinner table. (Kerry Senior often sent his son, the senator, faxes with advice on whattodoaboutBosniaand Kosovo.) Kerry's Yale roommate Dan Barbiero told NEVI-'SWEEK, "His father was very tough to please. He went over the top ... Hisfatherdcmanded mastery and control over things." Mother Rosemary was wann "in a \VASPy way," says Thorne. She was a do-gooder who picked up bottles around the neighborhood and preached that the plivilegcd had a duty to give back. \-Vhen she was dying in 2002, her last words to Keny were, "Integrity, integrity." Kerry spoke fondly of his mother, recalling to NEWS\\'EEK how "excited" he was to see her distinctive handwriting on letters when he was schoolboy ("my dad \\-'as less good \\-ith

letters, but oocasionally. you know, you'd get one"). \\Then Richard Kerry \vas stationed in cold-war Berlin in thecarly'SOs, Kerry,just 10 years old, was packed oR" to a S\viss boarding school. "J was one ofthrecAmericans \\~th 150 Italians and 50 Germans ... Let me tell you, man, these kids could be tough." Axel }luesers, a dorm mate of Kerry's, recalls the day that the Italians returned from vacation as "hell day." Kerry responded to the hazing and homesickness by doing better than the other students- and letting dlem know it. "He has developed a rather excessive amount of selfconfidence due to his achievement and we find it necessary to take a gentle repressive measure from time to time," reads a note sent to his mother by the school, the Montana [nstitute. Kerry's slightly haughty self-reliance was his defense at St. Paul's, his third boarding school (and seventh school as his parents moved about), which he entered in 1957 at the age of 13. He found "a different kind of sense of humor, different kind of pecking order ... and I didn't know quite how to dea1 with it," he says. From the outside, St. Paul's conveyed a certain uniform style, of a casual, selfassured pri\ilege. But it seethed, as most high schools do, with subde rankings and cliques. (Kerry compared it to " 'Girls Are Mean,' or what's that movie?") At the top were the "Regs" (regular guys), who tended to be trom

New York private schools and bred resentment among the rest. "In a way, St. Paul's was 'Lord of the Flies'," says Kerry's classmate Picco Fenci. "It could be prctty \~cious." The tribal customs ..vere petty and precise. Barbiero came from a middle-class town on New York's Long Island, where "you rolled your sleeves up to your armpits. The first time I did that at St. Paul's someone came up to me and said, 'No, no, no. \\te don't roll up our sleeves like that. 'We only flip thcm over three times'." Kcrry was almost, but not quite, a Reg. One scholarship boy, Richard deRevere, remembers him as a "snob among snobs ." Kerry was a natty dresser and a good athlcte (both important marks), but his brother, Cam, recalls that he was a " mongrel" among the high-WASP sons of Wall Streeters, "a Catholic and a Democrat, and he didn't come from that kind of money." Kerry's Catholicism does not seem to have cost him socially, according to his classmates, and hi s mother's Brahmin roots made up for his lack offunds (a \Vinthrop aunt paid his tuition). But he committed the cardinal sin of shO\\~ng his ambition. Prep-school boys of that era dealt with tileir lofty status (and the burden of staying there) by affecting a sarcastic languor. "He wanted to be liked," says his classmate John Rousmaniere. "But he was too eager to please. John was a littl e clumsy in the way he approached people, a little too aggresClOCK\IIts[f~~

TOP LEFT: CCURTESYOf JOHH

KERRY- ~P ~P

Bill BREIT-BOSTON GLOBE

sive in trying to make friends. That's why people thought he was calculating." ERRY COULD NOT COMPLAlN TO

his parents ("I just didn't"), but he \vas fortunate in finding a mentor in John "Valker, the school's first black teacher (and later the Episcopal Bishop of\Vashington). \\talker entertained Kerry and other social unfortunates like Barbiero with Harry Belafonte on the record player and encouraged them to read Ralph Waldo Emerson (who wrote in his landmark essay "SelfReliance,.... \,Vhat r must do isall thatconcems me, not what the people think"). Kerry took a strong interest in politics and world events, and \vas incvitably mocked for beingtoo serious. He never ran for student oB-icc, in part because hedidn't have the votes, but he st..'lrtcd a debating society and wroteessays like "The Plight of tile Negro." He fell in love \\,tilJohn F. Kennedy and tookJFK's side in school debates. "There was an element of courage aoout it," says Da\-id Irons, class of '64. "It cert.:'liniy \-vas not cool to care about politics and social justice." Yale, which Kerry entered in September 1962, was a better fit. Kerry loved Yale from the first weekend he spent showing his roommate and fellow St. Paltl'S grad, Barbiero, the campus shrines, most importantly the dark mausoleum of Yale's most prestigiolls secret soci-

ety, Skull and Bones. Barbiero recalls Kerry's "endlessly singing half the songs of'CameloC (Kerry had met his hero JFK tiJat summer, while dating Jackie's half sister Janet AuchincJoss.)A Yale Man could aspireto beaBig Man and have a "career;' capped ""rith a tap by "Bones." whose IS chosen seniors mixed in a few legacies and cool preppies (like George W. Bush, '68) with the top strivers and achievers. Kerry kept his eye on the prize. "He made sure that people knew who he was," says Thorne. "John didn't ha\'e time to make close friends," says a roommate, Harvey Bundy. "Close friendships come from sitting around in bul l sessions ... John would bein and out of the room four times from one meeting to another." Kerry was a joiner, a good way to get noticed at club-rich Yale. He rubbed some rivals the wrong way by small shmvy acts, like writing letters on his father's State Departrne ntstationery. His debate partner, '\I\'illiam (Chip) Stanberry, would tell him, "John, give it a reston ' I want to be president of the United StatesÂˇ... But he also loosened up enough to pal around with a popular wild man , Richard Pershing (whose later deatll in Vietnam shook Kerry and began his d isillusionment \\rith the \w.r). "Persh"had agirlfriend, a vivacious beauty named Kitty Hawks, who loved Kerry when he dropped his supercilious manner. " He had a giggle that was irresistiblc," she recall s. "He was capable ofgreat

, U.S. Affairs laughter. He was vcry warm physically."

At Yale, Kerry began to show a daredevil side, taki ng flying lessons and driving too f.'lS[ across Eu rope in the summer. "It was

cerrainly scary to drive \\~th him," says Barbi· ero. "He co uldn't st...md \vaiting in line or in traffic. He had some penchant for seeing ifhc could fly LInder bridges. He sca red me once flying dO\\ll the Hudson River at night." Roommate Bundy refused to get in a plane with Kerry. "John was always a risk mker," he says. "Ifthere were c).treme sports back then, he would have taken them," (in his NEWSWEE K interview, Kerry rejected the darcclevillabel. "1 do not want to rock-climb. ] do not jump out of airplanes, no desire to. I passed up bungce jumping. I did things where I think there's a technique that ifyou'rc disciplined you ca n master and be in eontrol." \\Then he's flying, he says, "I do my acrobatics at 5,000 feet or above. J'm safc, have a parachutc.")

N VI ETNAM, KERRY'S S \VIFT BOAT

cre';.v lived through a terrif)!ing demonstration of Kerry's zest for controlled danger. Instead of fleei ng during an ambush, Kerry decided to turn his boat and head straight into the guns. At first his men were appalled, several crew members related to NEWSWEEK, but over time they realized that Kerry's boldness was actually cleve r, that it gave the enemy less to shoot at whil e his boat was able to close in for th e kill. Kerry's coolness under fire was remarkable. It is hard to forge~ the image of his turning his boat around and re..'lehing over the bow to pull -with a wou nded arm - a man from the ,vater while the bullets splattered around them. Th this day Kerry's cre\\'ll1en, ,\~th one or t:\.VQ exceptions, seem to adore him. It is the one group ,vith whom he scems truly comfortable, able to letdown his guard. Ata recent reunion, the "Band of Brothers;' as they were dubbed after Shakespeare's "'Henry V; were able to josh and tease their old captain . Kerry teased them right back for wearing makeup for a NE\';lSWEEK photo shoot. "You look li ke a bunch of wussies," Kerry said. "lowe John Kerry my life," says the Rev. David Alston, who was a gunner's mate under K.crry. "But John Kerry owes his life to me, too." Kerry's war record has been endlessly discussed and picked over. Kerry himself never misses an opportunity to cite his combat experience. He has been criticized for his eagerness to win Purple Heans for superficial wounds others might have shrugged ofl: and blamed for exaggerating the atrocities of ,...'ftC when he became an antiwar leader after he returned home. Sometimes overlooked is a more essential truth: that wh ile the vast majority of well-off !vy Leaguers spent the Viet-

nam \Var in their dorm rooms, wondering ..vhether their S(IUash injuries would qualif)' for a draft exemption, Kcrry plunged head first into th e greatest physical test and moral crisis of his age. Kerry blames his first failed entry into politics, a couple of unsuccessful congressional bids in 1970 and 1972, on "blind idealism and naivete." Ifonly, he laments, he had had a f.'lther "like Joe Kennedy" or JFK's grandfather "Honey Fitz" Fitzgerald. "They'd have said, 'Are you crazy?'" to run asa longhair antiwar candidate in a conservative blue-collar dis· trict. He credits Sen. Ed,,,·ard Kennedy, his panner in the Senate for the past 20 years, as "a great teacher to me.rve watched him work on relationships on the floor of the Senate ... \\Then I first came to this business, to me it was the issues ... It's not. It's people. It's pea-

pic, it's people, and I understand that." Kerl), repeated this mantra as though he were still trying to cOIwi nce himself. I Ie has not been the f..'lstest learner. He did pay somc local dues by going to Boston College Law and serving as an assistant D.A. But his didactic, long-winded speeches delivered Vlrith a plummy accent made him an object ofgleefu l ridicule for the sort of wise guys who make up the Democratic establishment in Massachusetts. "They don't like him, they don't relate to him," says Philip Johnston, head of the Massachusetts Democratic Party. Kerry has dutifully studied Kennedy as they campaigned together over the past year, but mostly he paled by compatison. In IrishCatllolie Ylassachusctts, "it's hard to be in God's shadow, and 1cddy's God," says Johnston, The same goes for the US, Senate's

ny's always liked money," says Thorne. "' He likes money because he likes to move in those ci rcles, he liked to stay in ni ce hou ses, travel around." (Kerry never "pandered to tIl e rich," Thorne adds, and he passed up many chances to become wealthy by joining the private sector.) Teresa Hei nz, whom Kerry married in 1995, calls Kerry's rootl ess existence in the '80s and early '90s his "Gypsy years." 'Vorth more than $ 1 billion, rreresa has provided her ncw husband with five new hou ses and all dIe toys he ca n buy. She has raised eyebrows by going on about her first husband , Sen. John Heinz, who died in a plane crash in1991. Somcwhatovcrlooked is tile support she has provided for Kerry- not just tlle financiaJ variety, but the sort of all embraci ng emotional warmdl he lacked for most of hi s life. Kerry "mi ssed out on mothering," says his older sister, Peggy. Kerry seems to bask in the attention of hi s new, extcnded f.'lmily, including hi s stepsons, Ch ris, John TV and Andre.

T Democraticcloakroom: "1c ddyis the friendliest, most garrulous, best storytell er," says former senator Bob Kerrey, "and John Kerry isal'\o\'3ysgoingto be compared in a negative way." Kerry's abilityto bond \,;th his fellO\v senators was undercut by his complicated f.:1 mi Iy life. "John spent a lot of time go ing back to Massachusetts every weekend to be with his daughters," says Jonathan \Viner, hi s former ch ief counsel. "Since he didn't hang out socially, he didn't build up the buddy-buddy thing," Seriously depressed , Kerry's firstwife, Juli a Thorne, asked for a separation in 1982. Devoted to hi s two daug hters, Alexandra and Vaness.:'l (to whom he vowed to bea better father than his own), Kerry would often (]y back to Boston t"':lcea week. "Therealways is a lot of dashi ng in John's life," says fonner brother-in-Ia\'y' Thorne. "That's the way he CLOCKl'iIS[ FROI! TO PlEfl PfIO l OO RAPH 0."10 ~1I .. r

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lives." John and Julia tri ed to \vork out their diflc rences. "\Ve'd all get together for Christmas," recalls Thorne. "My \\~fe and I would look at each other: 'W113('5 going on here? Are tiley go ing to get back together?'" During these diflicult years, R.ichard Kerry would occasionally take Thorne out to lunch to co mpare notesaboutJohn.John and Julia finally divorced in 1988. Kerry told Thorne that he ,vas "lonely, he was miserable. He couldn't go out ~~th a pretty woman without so mebody '\-Titing that he \vas some Lothario DonJuan, when he .....'3s just having dinner \\~th her." Kerry was sleeping on cO llches and staying ,,,;th friends from time to time d uring tIle 19805. He was broke, though not too broke to buy a $20,000 speed boat and an $8,000 Italian racing motorcycle. "John -

FOR NEW SWHK, PHOTOGRAPH BV

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hold drawing-room salons at Teresa's elegant Georgeto\Vll house. T hey can be earn est and heavy affhirs, suffused ,vith a SOlt of weknow-bestsmugncss. Kerry hasa tcndencyto constantly explain his intellcdual thought process, even in speeches toordinaryvotcrs in a Kew Hampshire diner. Joe Biden, a more natural politician, has been after his fi-iend to stop explaining and "just say it," Kerry's O\om staff gets worn out by his need to mlk problems to deadl and play the De"il's advocate. But it is significant that Kerry's staft' is kn ow" for its loyalty. And all that labored argument has produced some fresh tllinking about old problems. In 1992, Kerry gave a thoughtful and frank speech at Yale questioning the efficacy of affi rmative action when the problems of race in the country seemed to requirc more thoroughgoing solutions. He was roufl(liy lambasted by Democratic loya lists for daring to question a shibboleth, and he was ne\'er quite so blunt on the subject again. But in 1998, he was incautious enough to question another Democratic sacred cow, teacher tenure in high schools. Kerry's handling of a deeply di,;si,'c issue- are th ere still PO\Vs and M L-\s al ive in Vietnam?- belies his image as Live Shot, the oppOitunistic publicity hound. Most sena tors avoid that sort of raw controversy. Kerry won over an initially skeptical Sen. John McCain by playing dIe coo) referee on a Senate panel set up to resolve the issue. At one point, an exchange between McCain and Sen. Charles Grassley of Iowa became so heated that Kerry was worried the two men would co me to blows. "I lea rned from a trip 4

to Hanoi that McCain had broken his arm s and couldn't sV\ring a punch at Grassley," recalls Bob Kerrcy. "But [ thought he would drive his bony head into Grassley's nose, and the fragments would go into hi s brain." John Kell)' managed to cool everyone dowl) and engineer a unanimous final report tilat rejected tilC possibilityofliving MIAs. He did it by patiently listeningto tme believers like fo rmer senator Bob Smith (Republican of New Hampshire). The two men flew arou nd Vietnam and Cambodia together in old SO\riet helicopters. ") liked him personally," &'tys Smith. "\Ve went to some really seedy places to talk to some shady characters, and I never saw any e,ridencc ofaJoofi)es5." Kerry has been \villing to make unusual alliances to se rve larger ends. He worked with right-\,\'ing Sen. Jesse Helms on the Iran-contra scandal. "It ,vas one of his oddball alliances with Republi ca ns," says a Kerry staffer. He has also been willing to take on issues \"ith zero publicity val ue, just because he thought they l:ried out for reform. He im mersed himself in flood -insurance laws, which he thought were absurd. How could the government allow people to build on the flood plains, he asked, then repeatedly pay them to rebuild houscs \vrecked by floods? Kerry has shovm surprising moments of decency. Castigated for ('til ing to pass bills bearing his name, he instructed his staff, "1 want to pass so me Kerry measures." But just when two such bills were ncaring conclusion, he was asked by several retiring House members if th e measures could bear their namcs instead. "John , this is a Kerry bill," his former chief of staff David Leiter told him. "But it means so much to them," Kerry said. As a president, Ke rry may not make a Great Com muni cator. But hi s lifelong self-improvement project has produced a conscientious, co nsidered publi c servant who has a streak of daring and a deep wel l of determination . l\1ostpresidential candidates like to travel with a trusted friend , usually a political peer \vho ,\rill joke with them and tell them \vhen they have missteppe(i. Kerry prefe rs solitary pursuits, li ke strummi ng his guitar orwatehing an old movie. On the night of July 4, he smyed aboard his campaign plane fo r 15 minutes or so after it had landed, supposedly for weather reasons, but actually because he wanted to finish \vatching"Field ofDreams," nO[ fo r the first ti me. The movie is a story of a man whose dreams come true in Iowa, who \vas di stanced from his father and who embarks on a f.:1ntastical road trip to find himself It may be thm the restl ess Kerry is still moving, still searching. Wilh RICHARD WOlFFE, ANDREW ROMANO, ARIAN CAMPO-FLORES, SUSANNAH MEADOWS, T. TRENT GEGAX and ERIC PAPE

IN THE WINGS

'* 2008 looms large. But Hillary is

focllsed, like a white-hot laser, on beating Bush. BY MELINDA HENNEBERGER s the Democratic presidential field was still taking shape two years ago, Hillary Clinton invited longtime friend Martha Whetstone to have dinner with her husband at their home in Chappaqua, New York. The senator had an appointment, but would be along to join them later. "So Clinton was going through the field and telling his impression of each one," says Whetstone, an Arkansan who has known the couple for 30 years and is now executive director of the San Francisco Bar Association. "And just as he's about

to be finished, Hillary walks through the door and I say, 'But you forgot the mast obvious one,

someone who's looming over everyone else'." Hillary Clinton bursts out laughing, her friend remembers. "She says, 'Never. Not me, no way.'

And I said, 'Hillary, Iwasn't talking about you. I meant AI Gore!'"

Hillary Clinton isn't laughing now, though. If fellow Democrat John Kerry should win the White House, he would upset any plans she has of running for president herself in four or even eight years. Her situation these days, as one Democrat who knows her well puts it, "is that whether or not she ever gets to run for president is in the balance, and she's on the sidelines. It's like she's the second-string quarterback." In that position, "00 you want your team to win the

NEWSWEEK

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championship, or do you want the guy {who's in the game] to get injured? It's certainly a fair question." In an interview with NEWSWEEK on the eve of this week's Democratic convention, she was less coy than ever about her own aspirations. But she was also in a cold fury over George W. Bush's efforts to undo the Clinton legacy. Railing against the president for nearly an hour, and sometimes raising her voice more than absolutely necessary to reach an audience of one, she left little doubt that she is pulling for her team: "I'd like some time off to sit on a beach or take a hike, but I don't think the Republicans ever rest!" she said, waving one arm in the air as she spoke. ~ The president is giving up his vacation, so we know it's serious." "I do get agitated and energized," she allowed at one point in the interview. "But I don't want to wake up on Nov. 3 and think I haven't done everything I can ... And I'm wildthat there may be more

problems in the electoral system," she added, crossing her arms over her chest. "The Republican Party does not believe in universal suffrage ... They believe in and worship power." In every appearance the senator makes now, she puts her anger to work for John Kerry, the man her party will nominate in Boston this week. That's because "she's a real trouper and a real professional." says New York Rep. Charles Rangel, who was plenty irate himself when the Kerry campaign initially negfected to offer Senator Clinton a speaking role at the convention. (She was belatedly invited to introduce her husband on Monday night.) "I don't know if she's having fun" campaigning for Kerry, Rangel says. "She's good at that"-at seeming to have fun even when that's not the case-''I'm not," he says, laughing. "I don't think she WtiS an early supporter, but she's with him now, and they need her ... She cannot be ignored in national politics."

Senator Clinton herself is no longer protesting Quite so VOCiferously against the idea that she does harbor presidential ambitions. She did not, for instance, knock down a telling comment her husband made recently on "Good Morning America" about his wife's political future: "She's now where I was in 1988. When I didn't run [for president] in 1988, I thought I would never get another chance to run because I really thought the Oemocrats were going to win ... So we'll just see." Asked to respond to her husband's quote, she said, "That's a statement of the obvious; you never know in Hfe." And when asked if she might hesitate to run for president to avoid having her private life once again held up to public scrutiny, she snapped, "I'm never going to get out of scrutiny" in any case. "Here you are talking to me, and it never ends." (An earlier Question about that private life had not lightened her mood any, either. Asked to describe her relationship with her husband at this point in their lives, she shot a withering look and said coolly, "It's the same as it's been for 32 or 33 years.") The party to which both Clintons have devoted considerable energy over most of those years is at the moment uncharacteristically united in its desire to oust President Bush. To the observation that Democrats are acting almost like Republicans in that regard, she said, "Good! let's have some discipline!" Yet there is plenty of underlying tension between the old Clinton crowd and the new KerryEdwards wing of the party. "Clinton World just had a rude awakening," says one Democrat who has worked closely with both Clintons but sees Kerry as the next 'A REAL TROUPER': president, and John CLINTON STUMPING FOR Edwards as the new TH E KERRY-EDWARDS star. "They all TICKET IN NEW YDRK thought Bush would be president for eight years and then they'd all be back. Now the Clinton hold on the Democratic Party is over without any fanfare, to the great relief of a huge segment of the party. n Of the idea that Hillary Clinton herself sees the current ticket as her future competition, she says, ~People keep imputing meaning to me I don't put out. I'm delighted he's going to be the preSident," she says of Kerry. "He's the perfect man for this moment, a serious man for a serious time. " Though friends say Senator Clinton was not a bit happy when it seemed as though she would not be given a speaking role at the convention, she insists that's not the case: "I've said from the beginning, I'll do whatever I'm asked." And however painful it is for her, no one can argue seriously that she has done otherwise. The second - string Quarterback defiâ&#x20AC;˘ nitely wants a win.

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The Chirac Doctrine W BY CHRISTOPHER OICKEY HE N

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dents invoke "the national interest," often as not it means they've cut a deal

they'd re.:1.l1y rather not ex-

plain. But when lu rkish PI;me Nlini ster Rccep Tayyip Erdogan came cou rting President Jacques Chirac in Paris last week, hoping the ever-relu ctant French would back Turkey's bid to join the European Union , the cashand-ca rry policymakingwas right out front. As one senior 'T\l rkis h ofllcial told NE \VSWEEK, the in tentio n was to "spread a

package of economic benefits" before Chime that "France co uld not reject." Sure eno ugh , ~n.lrki s h Ai rli nes announ ced it

France gives the nod to Turkish membership in the European Union. 'What is Paris up to?

would purchase 36 ,\irbus planes wo rth more than $1.5 bil lion. Erdogan also hinted he might be in the ma rket for France's bigticket nuclea r techno logy. And just as surely, after years of impl icit oppositio n and fence-s traddling, Chirac suddenly decided that support fo r rUu-key's ca ndidacy su its "the national interests" of France.

No, it wasn't a pretty picture. But, the n again , it wasn't the whole picture. As Europe has e,X-pand ed its rrontiers, the eternal French game for powe r and influence in side the Union has mo\'cd to the cou ntries just o utside. Relations with Turkey, Israel, lraqindeed, the whole of the .YliddJc East and North Africa - a re in play. Enrel;ng the waningyears of hi s career, Ch irac un surpri singly places new emphasis on hi s prerogatives as the maker of French fore ign policy, a nd thus on his legacy as states man. Againsttheodds, he seeks to e reate a tight-kni t new Europe, onc that wi ll bean altcrnate (if not opposite) pole of power to the Uni ted States. Si multaneously he looks to lim it, if not tll\vart, Ame rica n inOue ncc in Eu rope's Muslim N£WSW£~K

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ba<.: kya rd. And opportunist that he is, of coursc, he hopes to do all thi s while remaining popular widl French \'mers. It's a del icate balan cing act, this Chirac Doctrine. His latest stand on Turkey is emblematic. It may be cynical, or states manly, or both. Certainly it's not popular. Some 60 perce nt of French votcrs say they oppose 1urki sh EU membe rship; for many on the French right, incl uding Chi rae's 0 \\'11 coalition party, the notion is anathema. Chi rae himself has always becn a champi on of a tightly integra ted E u ro pe - \\~ dl France in the driver's scat. The admission of a populous, nationali stic, f!. tu slim l l lrkey (with the most vOtes in the Union) would certain ly dilute Paris's influence. And although France and Ge rmany make a show of their cozy cooperation these days, th eir inherent ri\'alry remains. The ~Iurks' vas t economi c, emigrant and histo rical ties [Q Germany probably wou ld tip Europe's co re balance of pmver eve n further w\\"ard Berlin.

[f Chi rae's goal really is to bring the ~I urks onboard- and emph asize that "if"-U1CIl as a practical po li tical matter the timing could hardly be worse. The Fre nch public already is grumbling about the last round of EU enlargement. French workers hear the sucking sound of their jobs moving toward the low-wagc East, and under the new European constinltion France won'r have U1C vcto it once did , '.vhich allowed Paris to demand exceptional protcctions. Chirae meanwhi le has decided hc'll hold a refcrcndum on thc constituti on late ne}.t year, which wou ldn't be an casy win under any circumsmnccs. j\'lixing in th e issue of Turkish accession \\~ lllll ake it cvcn harder. But Chirac's looki ngovcr his shou lder at the United States right now. If hc could, hc'd probably decla re a SOlt of Monroe Doctri nc a b Frans:aise, wa rning \Vashington away from Eu rope's backyard just the \vay \Vashington once warned Europc to stay Out of L.,tin Am erica. But hc can't. And \\·i th ul e occ upation of Lraq, th e Uni ted States has been big-footing in the region as never

:\- lichcl Bamier was quick to note that cven if Brussels begins fo rm al negotiations with 'Ih rkey aftcr ul is December's EC sllll'lmit, accession is not autom atic. "It is not tomorrow that Turkey will be entering the EU," said Bamier. "Thc road ahead is still long." If Chi rac is sincere, he's going to have to fend offa seli otl s chall cnge in his own parry from the mcdia-san y' Finance \Iinister Nicolas Sarkozy, who is slowly bm surely gath ering momentum to t..1ke the chairmanshi p. Sarkozy. \\~ th his fine nose for public opinio n, firml y opposes ~Lll rki s h accession. But is Chirae sincere? "There's a brrcat EC tradition of saying you're in f.wor of something whil e \vorking to ensu re th at someo ne else vetoes it." says Daniel Hannan, a British mcmber of the Europea n Parliament. The bY7. antine rul es of EU due process provide ampl e scope for France to say yes to Erdogan's facc, wh ile hoping (o r encouragi ng) ~l\.lI'k o ph obes like the Austri ans to say no down the road. \Vhen Ul e cru nch comes, U1 C Turkish question couJd split the union between

before. That's why Chirac was so testy when Presidcnt George \V. Bush had U1 C tcmerity to say at U1Clstanbul summit that \·Vashington was in favor oflurkey's joining the European Union. ';This is a Europea n issue," snappcd Chirac. Sv,'eeter revenge would be to wean 11.1l'kcy away fiul1l th e Am erican sphere and into Eu rope's-at the sam e tim e replacing Gc rmany as the one to tip the scales in Anka ra's fc:wor. Erdogan seemed more than happy to play .along last wcek. rtb gaugc Ul e new balance of powe r, coun t the plancs 'l\.lrkis h Airlines bought last week: 15 Boeings from the United States, and more than h\~ ce as many from Europc.) Indeed, U1C 'Il lrkish press was ecstatic. But th e 'Il lrks may be rejoicing too soo n. French Foreign Ylinister

Euroskeptics like Brit.."lin and Sca ndinm~a , l,vhich tend to support enlargement in general and Ankara in pa rti cular, an d Emo-integrationists like th e French, who want a union that's more compact, unified and domjnated by the Franco-Genn all axis. Some obscrvers ulink that's actually what Chirac wants: to make U1 C expanded ;'New" Europe so un· wieldy that the "Old" Europe call shed the skeptics and pull together into a tighter, more decisi\'e union at Europe's corc. !\ Iaybe. Such big-think is a whole lot easier to concei ve than execute. But for now, Chirac's played it prctty smart. lie can mke the .:Urbus mo ney and run - in the national intcrcst, of course. Wit h OWEN MATTHEWS in Istanbul and TRACY MCNICOLl in Pari s

Movingln For the Kill The Yukos affair enters its final phase. Investors are rightly outraged. But they miss an impOltant point. BY FRANK BROWN F"rER l\IONT HS OF CIR CLING,

the Kremlin last week moved in for the ki ll. Ru ss ian courts laid claim to the sweetest and biggest piece of th e embattl ed oil giant Yukos - a Siberian subsid iary th at pumps 60 percent of the company's crude. Grabbing an asset wOIth as much as $39 billion , to settle a $3.4 billion tax bil l: \Vorld reaction 'was not pretty. YlIkos stoc k dived , talcing the whole Russian market with it. Oil futures spiked to more tha n 542 a barrel. I nternatio na l investors muttered darkly about "rena tional ization." At the weekend, the U.S. ambassador made a highly un usual gestu re of solidari ty, ostentatiou sly vi siting president may be no democrat. But it is hard to di spu te that he Yukos's headquarters. is a reformer, determined to reTn terms of international REAL TARGET: Put in (above) may have make Russ ia as a modern, fi'eebusiness and global public relamarket economy. }\nd just now tions, it was one of the worst moved against Yukos th e Kremlin is embarking on its weeks ever for Vladimi r Putin. to forestall protests ( Ironically, he had just directed most unpopular reform of a1l Russ ia's am bassadors to do something to stripping away th e SO\~ et -era social beneimprove the country's slumping image fi ts that most of Russia's 145 million citiabroad.) Yet th e president himself did noth - zens have long t.:1ken for g ranted. ing. There were no sooth ing words. ~o de- Pensioners and war vetera ns \vill no longer nials of a personal ve ndetta aga inst thejailcd be entitled to free medicin e and health care. form er CEO Ylikha il Khodorkovsl1'. ~o ex- Students ,"viii lose tllei r free ride on trains pressions of confidence in Russ ia's legal sys- and subways. Housing subsidi es for hemtem. Western embass ies and investors \vere ing, telephones and utilities will be a\:ed . bamed, both by the president's silence and , The governm ent proposes to offset the even mo re, by the timing and scale of cuts with direct payments in cash, theoretiYukos's di smemberment. Only weeks be- cally of equal value. Yet Ru ssians are deeply fore, Putin said he had no \\~ s h to see the skeptical, remembeling the crises of the company destroyed. Yet some l\Âˇ10scow '90s when government wages and pe ns ions hands consider his motiycs to be perfectly went unpaid fo r months. Thousands have clear, even justifiable. It's sUlll med up in tlle marched in scores of Ru ssian cities in adold cliche: all politics is loca l, especially fo r vance of a crucial Aug. 2 parliamentary vote on the Kremlin's plan. Meanwh ile, Putin's tlle Krem lin. To put it bluntly, Putin faces hi s biggest popularity has f::,lIen fi'ol1l abovc 70 percent crisis sin ce taking office in 2000-and it sin ce the March presidential elections to 49 has nothin g to do with Yukos. T he Ru ss ian pe rcent, accord ing to o ne recent poll. "Pco-

'People don't believe in money. Money car pie don't believe in money," explains Anastasia Alexa ndrova, an eco nomist at Moscow's InstitLlte fo r Urban Eco nom ics. "ylo ney ca n be taken away from you, they think. Benefits ca n't." In such a climate, the last thing voters wa nt to hear fi'o m Putin are sympathetic words for an oil company-especially one owned by a hated "oligarch" who, many believe, enric hed himself at dle expense of the country. Nor have they much more sympathy lor outraged forei gn investors. No one is moremvareofthis than Putin, who took care to prepare th e political ground for a program that he an ticipated could ca use social unrest. )Jcw laws enactcd th is spri ng make it more diffi cul t to organize mass protests or sponsor nationwide voter referendums. National TV is eficctivel y in Pu tin's hands and independent media have been intimidated; all this serves to mute, if nOt muzzle, grassroots opposition . Even so, some anal ysts say, the govern Illcnt has been spooked by the depth of publ ic outcry. Already, the K.remlin has agreed to placate influential interest b'TOUpS hit by the new policies-ch iefl y the military a nd the d isabled - by main tai ning

Fight for Fathers' Rights Dads say separation laws are stacked against them BY RANA FOROOHAR M ILITAKT NEW :\'10VEMENT I S

be taken away from you.' traditional benefits such as health care. The problem, though, is thm the morc concessions the government makes, the greater th e budgetary cost. Accordi ng to one MoscO\v economic forecasting organization, an estimated 21 percent of Russia's GDP goes to social benefits - and Putin can ill afford to increase that amount.

That's \vhere Yukos comes in. "A few billion c:\'tra dolla rs ''''Quid come in handy right now," says K ikolai Petrov of Moscow's Carnegie Center, laying out a scenario whereby Yukos's prize asset is sold at a deep discount (on the order of $ 1.7 billion, according to Yukos sources) to Gazprom, th e state-controll ed gas monopoly. Yukos's oil co uld then be sold at a hefty profit for the

benefit of the state, either to fund Putin's new cash subsidies directly or to defray government expenses elsewhere. And by pl a)~ng tough, Putin send s an unmistakable message: Yukos in tlle past resisted the Kremlin's suggestion thatoil-i ndustl), profits should be taxed more heavily to fund social programs; now it's paying the consequences. ~o doubt Russ ia's co rporate titans will get the message. â&#x20AC;˘ NEWSWEEK

AUGUST 2 , 2004

penalties for parents who flollt eourt mIings. The punishments-ranging from commun ity service to compensation paymen ts-would be less damaging to the child and would allow judges to be more impartial (some say less sex ist) in their rulings. \Vill that sati sf)! the A.ngry Dads? Not likely. The govcrnment proposal makes no concrete move towa rd shared parenting. Kor docs it address the growing problem of moth ers who move \'lith their kids f.:1r from a father and his job. \Vh en his ex-wife and son moved to Spain, London-based writer Griffin Stone (who uses a pseudonym for legal reaso ns) decided that the expensive flights and hotels \\'ere too much, so he ga\'e up writing and moved to Barcelona. " I see my

swccping Britain, generating headlines and sparki ng protests. In one, a yo ung man dressed as Spider-l'vlan dangled himself from a crane nea r London Bridgc late last year, holding up constructio n for six days. This July a handful of protesters dressed as vicars, nuns and monks stormed a Sunday servicc in York Minster. Not even Prime Minister 'Ibny Blair has been abl e to avo id th e onslaught: in mid- lVlay, the P.M. was pelted wi ti1 purple powder during a specch in thc HouseofCommons. ls thisa return of the poll-fa'X protesters? Ra bid animal-rights ae ti\~sts? ~o - it's the Angry Dads. British fatb ers arc increasi ngly fed up \\~th a systcm that they secas favo ring mothers during custody battles. In 80 percent of cases, children end lip livi ng with their mothers after di vorce; British law frowns upon shared parenting, citing th e confusion that dual residences can cause a child. A.nd whil e most cases are settled out of court- allm\'ing parents to a rrange thei r own so lution s- Briti sh courts have little leeway to penali ze parents who do try to thwart visits in COIltentious cases. The reason is PAPA POWER: British dads want greater say in custody fights that a judge's o nly recourse in such circumstan ces is to fin e a mother o r son every other '.vcckend now," he says. Still, change is in the air. There is a growthrow her in jai l-whi ch is rarely if ever in tllC child's interest. "There is much \vrong ing understanding in Britain that child with our system ," said one judge after pre- care is not gender-specifIc-and that both siding o\'er a case in which a tearful farher mothers and f.:1thers have equal roles to play abando ned his battle to see his daughter af- within a family. Legal e.xperts believe this ter his \\ife thwa rted vis its for fi ve years. more-progressi\'e thinking may eventually 'Iho many dad s find th emselves locked in have an effect on tllC law. "Ultimately it \\~ll scemingly hopeless legal struggl es as they all result in a move towards joint [parenting] try to exercise their court-ordered vis ita- in Britain," says :\1ark Ilarper, a family- law tio n rights. "W'e just want to see our kids," partner at th e British firm 'Vithcrs. interest says Matthew O'Connor, founder o f Fa- in the fathers'- righrs movement is catchi ng thers4Justice, a new lobbying group that on, too: Fathers4Justice now has offshoots in 33 collnoies, other activists groups are boasts 10,000 members. Authorities are starting to listen. Last cop)~ ng its tactics and high-profile divorced week Blair's government issued a paper rec- dads like rock impresmio Bob Geldof arc ommending several reforms, from more ex- calling for the govel1lment to take more tensive government- sponsored mediation aggressive action. Cntil it does, expect to see before divorces h it the courts to spee(li ng up more of Spider-Dad. With TRACY MCNICOll proceedings once they do. It also proposes

Musharraf sent troops to the tribal areas to close the net on extremists. But they are bringing the fight to him. BY OWEN MATTHEWS AND SAMI YOUSAFZAI O I IAMMAD BILAL'S

pe rso nal jihad against the enemies of Islam was rudely interrupted about two months ago. Pres ident Pcrvez Musharraf o rdered the deployÂˇ me nt of 70,000 PakiSL'lni troops into his refuge in southern \Vaziristan, a lawless tribal area on the border \\1.th Afghanistan , ill an effort to hunt dmvn supporters of AJ Q aeda. Bilal, along with hun d reds of other militants, fl ed th e Army's sweep to seek safer lairs. BiÂˇ la l escaped to Q uetta; so me moved upco untry to other tribal regions; ma ny ended u p in Karach i, Pa ki sta n's largest city. The fugitives brought terror \\~th them. Since .\IIay, both K.:,uachi and Q uerta have witnessed a surge in terrorist attacks unlike any since the aftermath of th e U.S. invas ion of Afghanistan in late 200 1. "\Ve ",rili never allow the Am ericans to make Muslim lands dlei r colon ies," says Bilal, surrounded by fell ow pro-Tali ban fi ghters in a dark teashop in Quetta. "\Ve will push back the U.S. occu piers fro m Afghanistan, and we will fig ht ':Vlusharraf." Bilal's rant may be sta ndard jihadi bl uff- bu t N1usharraf neve rtheless has serious ca use fo r co ncern . Operations in the mountain s of \Vaziristan, intend ed to stamp out mili tants and enco uraged by the Un ited St.,n cs, may o nly be spreading terror to Pak istan's cities-where it can do f.:1f morc damage to the co untry's stabili ty. Dcpu ty Inspecto r Ge neral Javed Bokhari, head of Karachi's Crim e lnvesti gat io n Depart ment, blames th e recent up surge in violence on an infl ux of what he calls "tra ined , committed mil ita nts" com ing down fro m the hig hl an ds. O nce in th e

city, these militants easil y mix into Karachi 's indigenous s ubculture of political and secta rian mil itancy, teaming up with local o utfits to smv even more destructi o n. "Musharraf's cha ll enge is not to create mo re en em ics than he destroys," says one scnio r \,yestern diplo mat in Isla mabad. It's a balance that is provi ng ha rd to strike. 1\\'0 majo r Army operations in \Vaziristan since April have so far netted no hig h-value ta rgets, thoug h hvo Qaedalinked commanders were ki lled- :\ek Moha mmad, a Pakistani tri bal chief who "vas close to the Ta liban, and Abdul Rahim el Khadcr, a suspected terro rist finan cier. At the same tim e the blmvback has been fierce: since the fi rst operatio n in \Vazirista n, a bomb blast in Karachi ca me close to kill ing the co mmander of Pa kista n's Fifth AImy Corps; a bomb was planted near

the residence of thc U.S. consulgeneral; two Shi ite mosques were destroyed, killing S9 people, and Mufti Sham zi, a seni o r Sunni cleri c, was assassinated. Qaeda-linked militants a re suspectcd of having a hand in all the attacks. In Karachi, police fea r an unholy allia nce between such mil itants and local groups bent on secta ria n vio lence. The career of Atta ur Rahm an, a rrested last month for ma ste rminding the attack o n th e commander of the Fifth Army Co rps, is a good exa mple of how the lincs a re blurring in Ka rachi's milita nt underg rou nd. According to Ka rachi poli ce, Rahma n hegan his terro r career as a member of th e violent yo uth \ving of a secular move ment fighting fo r th e rights of Mujahirs, .Muslims who fl ed fro m Ind ia to Pakismn after partit ion in 1947. In the mid-1990s, he d rifted into tile global j ihad

..... _ .. ~

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. - ' -

and trained in Qaeda camps in Afghanistan , meeting Osa ma bin L.1.dcn in 1997. After 2002 he ended up in \ÂˇVaziristan. holed lip with foreign fighters, mostly Uzbeks and Chech ens. Returning to his native Karachi at th e start o f th e \Vaziristan operation s, he activated local militants (i'OIll variolls radical groups to form a hitherto unknown cell , Jundullah. The nVl st is th at so far, all 11 members of Jundullah rounded lip by pol ice are not Pas htuns, (i'om the tribal areas arou nd \VaziriÂˇ stan , but Urdu- speaking l'vlujahirs born and rai sed in Karachi - "Ioca l boys," says Bokhari. The militants are "recruiti ng new peop le from local religio us and other extremist groups," warn s Karachi Poli ce In- spccror General Tariq]amil. .Ylusharraf's Jlloves Jllay have inadvertently ril ed another source of milita ncy. Since he reach ed a detente with Ind ia last

â&#x20AC;˘

...,

yea r, the Kas hmiri jihad has bee n stood down - leaving a generation of jihadis bitter, d isillusion ed and angry at I'Vl usharraf's apparent betrayal. j\'lili ta nts o nce covertly arm ed and tra ined by Pakistan to fight in di sputed Kashmir arc allying ",,rith th eir com rades in tlle Afgha n ji had against Islamabad. "They are burning with humiliation , with degradation, Witll insult," says Khalid Khowaja, a form er officer of Pakista n's Inter-Services Tntelligence and a personal fi-ie nd of bin Laden's from tlle clays when the TSr and the United States actively suPPOrted th e war against th e S O\~ets. "They are burning \vith hatred for the U.S. and its lackeys ." I"orm er mujahed Yasir Akhtar, 28, retreated from \,vana in .\Ilay to Mu za ft1rabad , the capital of Pakistani controll ed Kashmir. Th ere he meets v.'ith dozens of othe rs who he says are wa iting for the opportunity to return to the strug-

gle. (;If j ih ad is terrorism;' says Akhtar, "tll en 1 am proud to be a terrorist." T he good news for the Paki stan i au thorities is that while these outfits see m hellbent on conti nu ing their life of viol e n ce ~whereve r they are ~ th ere are signs that th eir organ ization and fin ances are cracki ng. In Karachi , a series of bank robberi es by suspected militants last month was cause for mild celebration among police: it "vas a sign that the terror groups arc getting in creasi ng ly desperate for funds. And Inspecto r General Jamil says he has no evid ence that the militants are still com mu nicating with thei r hig her-ups in th e tribal areas , suggesting that the chain of command has broken dmvn and th e fugiti ve militant g rou ps have been left to fencl for themselves. ro r the tim e being th at will buy some peace of mind , if not peaceful streets. _

th e pressure on children w succeed , the ad equacy of school counseling services and th e moral va lues of the cou ntry's younger generation. But just as Ameri ca's nati onal conversation turned to its gun culture after th e murders at Columbine High School, so these killings also have China focusing intensely on its culture of mo ney and the destructio n it can C<"1use. ODER.!'i

C HI~IA

IS RE.t\L-

Iy two countri es. Though

Com munist Party leaders insist China is a socialist haven, the unprecede nted econo mi c boom over the past two decades has made some Ch inese wealthy and left many more bchind. One Ch ina is u rban and rich , with Bl\.f\.Vs, weekend vi llas an d designer ciotJles. The other is a world of dilt huts, pun ishing h'L'Xes and parents who pull their kids out of school because they ca n't afford tuitio n- or simply because they need more earners in the f.1m i1y. In the past five yea rs, dle ga p between rich and poor in Ch ina has grown so fast that the country now ra nks among the worSt in As ia when it comes to income di sparity. China's Gi ni -index score, a measure of in come inequa lity where zero is perfect eq ual ity and 100 perfect in equa lity, rose ti'om 30 in 1978 to 46 last year, according to the country's National Bureau of Statistics. (By con trast, Japan and South Korea scored a 24.9 and 31.6, respectively.) A recent report cited in the state-run People's Dai ly showed tha t urban Chinese earn on average mo re than th ree timcs what tJI cir rural counterpatts do - and the d isparity wid ens if the social-welf..1 re benefits the government doles out to city dwellers are included. China's leaders are t1yi ng to bridge the !rd.P, or at least keep it fi'om C<1using mass ive social upheava l. They\e tried to cut taxes on filnll CrS, encourage innovatio n in agri culture and retrain laid-olT ru ral workers. But sometim es they sim ply try to cover up the divide. T he party ofren censors television shows that feature opul ent lifestyles, for example, in o rder to avo id fueling th e jealousies of the masses. And recentiy Beij ing blocked pub li C<"1tio n of a report by the Chin ese Academy of Social Scicnces that warned that the cou ntry's rural residents wcre becoming second-class cilizens, according to an academy staffh. The report, "The Wcll-OffSoe iety, a Headache for Chi na," concluded that the ri ch-poo r gap mu st be closed if the country is to avoi d a social disaster. Still, signs of class struggle abound. Scvcralmonth s ago a rich \vom an in Heilongjiang prm1ncc stru ck and kjlled a peasa nt with her BM\V, and the courts gave her a light scntence. Intcrnet chat rooms ex-

ploded WitJl rage as people v,'ent on lin e to accllse oftlcials of g iving the rich preferential treatment. 'fh e local authorities eventually felt com pell ed to reinvestigate. Universities present especiall y ripe ta rgets for culture clashes. The party is working hard to expand u niversity access to the poores t rural children. But college life is far mo re stressful on kids from the countryside. Almost all of them have to borrO\. . . money to pay fo r schoo l, and last year only about half of China's graduates had la nded jobs by graduatio n. According to Chi na's shlte-run medja, students cite financia l difficulties as one of tileir rop tilt"ee sources of stress. Many have buckled under the pressure. Some turn to illegal means of making money, such as prostitution. Co ll ege s uicides have reached about 100 pcr yea r and some ollicials adm it they areon dle rise. "A t the universities, there are so many things the poorcr students can't do, such as buying comp uters or ti ckets ro the movies," says Pi Yij un , an expert on juvenil e delinquency who has studied the Yunnan casco "The rich and the poor stu dents can't eve n have dle same conversation s." The odds were against Xue Ronghu a fro m the beginning. Neither of hi s parents finished pri mary schoo l. His filtilcr has nO[

held a steady job in years. But his parents were determi ned to help him escape tileir lot in life. A small woman widl wide checks and wispy bangs, Xue's mother, Liu J inxiang, hauled bricks to build ing sites to earn money for her ch ildren's tuition. \Vhen Xue passed the national college~e ntrance exa m, Liu and her hu sband sugge...,tcd he become a teacher. Bur Xue said he'd be too nervous. " \\Te thought being a teacher \'-.'as a good job, but he didn't," Li u sa id du ring a recent i ntef\~ew in Nanchang, where she is living until her son's trial. "I-Ie said teachers had to sh1nd up in front of a class." instead , Xue decid ed to become a surgeon and en ro ll ed in Jiangxi .Medical College, whi ch oOered him student loans. But his financial si tuation remained shak.y I-lis parents someti mes had ro borrow money fi'o m their neighbors to keep him in school. In 200 I, a yea r after Xue started coll ege, hi s younger brother was also accepted to a university. But school oftlcials called an d sa id he cou ldn't come beca use th ey didn't be~ lie\'e his family could afford til e first yea r's tuition. Xue was overwhelmed \vith guilt a nd sought ou t his uncl e, a reti red accountant, and asked to borrow abo ut $250. He kept a small amount for him self and gave the res t to hi s brother, promising hi s uncle

he \vould pay him back. The gesture made Liu love her eldest even more. "\Vhen he did that Tknew' he \vas a good kid," she said, beginning to sob. But Xue had trouble fitting into university life. One student recalled that classmates used to tease him because he was a hick. Some said he was oversensitive, "like a \'voman." Tn March, Xue wrote his parents, hinting at his troubles but never spell ing them out. He begged his mother not to worry about money and chastised his father for being lazy. "Being poor is not something that one shou ld be afraid of," Xue wrote, "but if one loses their \\-111, then that should be something to fear." Xuc's m\TI spirit was breaking, though. Less than a week before the stabbings, he complained to a teacher that some classmates were teasing him, according to university officials. After a teacher questioned the students, she concluded the L:lunting \vas all in Xue's head. On lVlay 14 she caJled his fam ily and told them they should come piek him up. \Vhcn Xue's father called him, Xue became angry. He said he \-vas fine and that he was staying \,~th his uncle and his cousin, who had an apartment near campus. He fclt peaceful and relaxed there, he said. But then, for reasons that remain unclear, ClOC~W1S{ FRO,", lEFT; PliOTOGRAPHS BY SOITR.l.NO M!;UNIER -AG[NC[ YU FOR ~ [WSW[[K

the school ordered Xue to return to his dormitory on campus. His uncle told him he should go. The next morning Xue went on his rampage. "Tf we hadn't sent him back at the teacher's request, 1 don't think the killings would have happened," says Xue's uncle, who asked that his name not be used. "But what could we do? The school called and said he had to come back." NE OF XUE'S VIcrlMS \VAS

Hu Bin, a coUegc student who grew up in a well-to-do to\m just north of Nanchang. \\lith long hair, flawless skin and book smarts, she was a popular student. Hu was scheduled to graduate in a fe\v weeks. On the morning of tt.'l ay 16 she ,",vasn't fecling well, and decided to visit the hospital near Xue's school, not far from her own university. W'hile her ooyfiiend went upstairs to get a prescription fIlled, Hu waited in the hospital lobby. Xue burst in and stabbed her nine times. A few minutes later she died in the hospital's emergency room as her stunned boyfriend looked on. Hu Yuming, a former school official, rushed to ~anehang when he heard his daughter had been murdered. Instead of comforting him, school authorities and (Xl-

12). NO CREDIT

lice were fi'antically flying to keep the killing under \\Taps. They ordered him not to talk to reporters, and the school and hospital where Hu \\'as murdered offered her father over S6,000 in return for keeping quiet. They called it "help money;' Hu said. He called several la....'Yers, but they all hung up on him. Hu said the authorities must have ordered the whole province to be silent, but he doesn't care. "I'm not afraid of anything," said Hu during a recent interview near his home. "My daughter is dead." The police arc holding Xue and have not yet completed their investigation, according to school officials. If he is found guilty, he \-vill probably be executed. His mother got a temporary job at a construction site in ~anÂ chang after the lcillings so she could be close to her son, but the police haven't let anyone sec him. Xue's f.:'lther, Xue Bimvu, has returned to their vi llage. A skinny man with small eyes and soiled clothes, he walked around his dirt-floored lcitchen in a trance recently as he prepared tea for visitors. He says he can't even think about his son. "\Ve'vc lost so much face," he says. "\Vhatare we ever going to do?" The Xues have pleaded with their younger son not to think about tlle tragedy and to focus on his studies. He still has a chance to escape. â&#x20AC;˘

Business

Global gangsters are extorting money from online casinos 'with a novel du-eat: we'll spam you to dead1 BY AVRAHAM KARSH MER

"!"s BE"-:~ 6 0 YE.'\ R S SI NC E B UGSY Siegel and his cronies ra n Vegas, but gangsters arc back in th e ga mÂˇ hling game, big tim e. Only now, rather than seeking control of real casinos, they are extorting cash from virtual casinos, which are both th e fa stestgrowing sector of the vast global gambling industry and, by some estim ates, the biggest revenue producer of any 011line business. [n short, hoods are going after gambling vVeb sites because that's where the money is. The first kn own wave of threats cam e last September, with eyber-mafiosi using massive spam attacks to slow betting sites, then foll owing up wi th bland cmails asking for payments to "fix th e problem." Since then, according to British authorities and industry executives, virtually every major Intern et bett ing site from th e Caribbean to Australia has been hit, incl uding those based in Britain, the international hub of online book makjng. In October, these extortio n rackets beca me th e seco nd of two major investigations for Britain's National Hi-Tech Crim e Unit (th e other is "spoofi ng"- phony sites set up to steal credit-card numbers and other perso nal information). Nmv, the authori ti es say, this is shaping up as one of th e biggest seasons ever for online betting- and for cyber-ex'torti on, as well-,vith all the usual summ er sports topped by th e Ol ympics. The weapon of choice for cyberextort ion is what teehi es call a Distri buted Denial

Service attack (or ODoS), which commandeers other computers and bombards a Web site with millions of messages and requests, slowing it to the point of collapse. Such attacks began a few years ago and have been used against vari ous targets-i ncluding Ylicrosoft-with occasional success for a range of crimin al, ethical and personal reasons. As more and more computers are connected to the Internet via broadband, the DDoS threat grows. But so do th e defenses of big corporations like Microsoft and well-insured banks. [n response, extortion rings a re ta rgeting onlin e casinos in part beca use they have typi call y not been as ,veil secured , a nd cannot afford di sruption s during times of heavy gamblin g. In ternet betting excha nges now take in more than $5 billion a year ..vo rld wide, acco rding to British authoriti es. Betfair.com , the largest British site, generates as mu ch as $ 160 million in revenue on a busy week. At Bet\ÂĽ\V'I'S.com, based in Antigua, \vhere an average weekend turn s over roughly SS million , CEO Simon Noble says his servers began to slow down dramatically on a busy Saturday morning in September. Gamblers couldn't place th eir bets. His in-house techi es were at a loss. After about 20 min utes of chaos a nd confusion, Nobl e received an e- mail : ..Dearwwts.As you can see your site is und er at1- tack. \Ve have found a problem wit h your netwo rk." The attackers demanded that Noble se nd 540,000 vi a Western Union. They promised they co uld stop th e di srupti on a nd preve nt it from ha ppening j

again, as lon g as th ey got paid. "You \,-ill lose more than S40k in the next coupl e of hours if YOll do not resol ve this problem," they wrote. No ble refused, and his serve rs buckled under the fl ood of inco ming messages from thousa nd s of hijacked co mputers. The attack persisted in 20 minu te

'I think L",.~r"'nne who has been a1 NEWSWEEK

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bursts, and Noble says that as customers abandoned Bet'\t\~TTS.com for other \ÂˇVeb sites, he felt like shouting obscenities. I-Ie won't comment on \vhy his attackers disappeared, but speaking generally, says, "1 think everybody \vho has been attacked has paid_"

Where did the attackers go? The hightech crime unit is tight-lipped about any ongOlng investigations. But a spokeswoman says the attacks usually trace to Eastern Europe, 'where la"..s on cyber-crime are lax. In a joint effort with Russian police, the unit last ",reek arrested

tacked has paid,' says one site owner NEWSWEEK AUGUST 2. 2004

three men in different parts of Russia on charges of running an online protection racket. Many \Veb sites admit to having suffered the extortion attacks, but will not discuss financial setbacks due to the cyber-assaults. Sites that have been brought down, or that have paid off the hackergangsters, are loath to make the news public for fear they 'will be perceived as either vulnerable or vvi.lIing to pay, which could encourage the criminals. So the true monetary and technological scope of the extortion remains unclear. According to the crime unit, the arrested Russians alone had extorted hundreds of thousands of dollars from gambling sites. It is cheaper to pay up than to mount a defense. The virtual-crooks operate outside the jurisdiction of the \Veb sites' home countries, and use multiple and dummy IP addresses to cover their tracks. They also price their extortion demands intelligently; about $40,000 is typical. "They're not asking for ridiculous sums of money. They're very shre\-vd," says Charles \Vhite, a computer forensics expert at Information Risk Management Pic. "It looks like a very close-knit group of individuals. That's a virtue of organized crime, and that indicates it's very serious." Online casinos are now spending he.:1.vily on ne\v defenses. Noble estimates that Bet\V\VTS.com has spent about $250,000 on security since the first attack. Another prominent British betting site, BlueSquare.com, consults vvith an Internet-security firm that can charge $2,000 per hour. But even 20 minutes of server downtime can cost millions in lost turnover, says Noble. "You have to do whatever it takes at that point," he says. "I was ready to throw a lot of money at the problem." Normally ultracompetitive and secretive, the online-betting industry is starting to circle its \,,'agons. Former rivals are beginning to share information about attack patterns, the originating IP addresses and defense strategies. Protective measures include greatly increaslIlg server capacity, while lack of international cooperation in combating cyber-crime remains the biggest obstacle to stopping it. "The thing to overcome is to make politicians a\vare of the problem. They think it will go a\vay. But I'm not convinced it will," says Peter Pedersen, chief technology officer of BlueSquare.com. "It will get a whole lot \vorse [first]." And it's a \vhole lot easier to dodge the law in cyâ&#x20AC;˘ berspace than it ever \vas in Vegas.

peeted to produce 140 films, up from o nly

7i in 2003. Investm ents in Ho ng Kong-

Recasting Hong Kong Filmmakers are overhauling the way they make movies to please mainland customers-and censors BY ALEXAN DRA A. SEND '['S:\ F: \ l\.JILI :\R PLOT I N H ONG KONG

fi lms: hero down o n his luck is transformed by a new sense of purpose, and am id a rain of g unfire a nd dazzling

I...."Ung fu, finds himself in a he... utbrcak-

ing roma nce. O nly this time, U1C hero is I-long Kong film itself: which is reinventing itscl f to court the moviegoers (and appease the tou chy censo rs) of mainland Chin a. Though Hong Kong has long seen itself as th e gateway to China, its filmmakers tend ed to look everywhere but th e m ainland, un ti l recently. By the late 19905 ti1C industry's world ra nking had dropped t,'om Ko. 3 early in the decade, when it tumed out 200 fi lms a year, to No. 26. Cusmmers in its core overse..'lS markets of 1aiwan, Korea, Japan , f\ lalaysia and Si ngapore were defecti ng in droves fi·o1l1 Hong Kong fi lms, some f..11l10USIy shot in one week without a script, to higher-budget Hollywood blockbustc l~ or local productions. But China was not yet the answer. Not only was it diflicult for foreign films to make mo ney there O\\~ ngto the power of tile parsimonious state-mn disoibution company, but 1·long Kong was o-cated asj ust anodler outside r in competition to fill China's yea rly quota ofjust 20 foreibYIl films. 4

The door began to open in 2002, when Med ia As ia Group, one of the biggest Hong Kong film companies, coproduccd a pe ri od drama called "Cat and f!. lousc" with a mai nland partner. As a copnx luctio n, the movie was exempted fium the quota on foreign fi lms, and free to keep so me of its mainland box-office sales of $2.5 mill ion. At tilC same time, "The rlb uch," an actio n mo \~ e sta ni ng fo rm er Bond girl Mi chelle Yeoh (who also coproduced \\~th a Chinese partner), was flopping in I-long· Kong, but b(.'came a mild success beca use of mai nland sales. Media As ia executivc director John Chong says, "\Veall reali zed then thatChinacould beour new business model." E.arly this year came tJl e big break. Beij ing agreed to exempt I-long Kong films from tile foreign quota as of Janwuy 2004, givi ng them a huge advantage in tJ1C worl d's b iggest market. Now a Hong Kong filmindustry re\~val is under· \vay, d riven by mainland m O\~c k'"lns. By the end of 2004, Hon g Kong is ex-

Chinese coprod uctio ns mo re than doubled in the past year. Profits, which had f.:'"I ll cn dram at ically, have steadied at a dece nt 30 percent to 40 pe rcent, says Joseph Lai, an indepen dent filmm aker and vice chairman of the Nlovie Producers and Distri butors ,Associatio n of l ia ng Ko ng . "Nowadays, with out mainland Ch ina, I-long Ko ng would hardly make any film s," says La i, wh o estimates that eight of 10 filmmakers in I-long Ko ng now ta ilor their movies specifi cally for Chin a. The pri ce for access is that producers must make movies by Beijing rules . It's increasi ng ly casy fo r I-long Kong coproduction s to qualify as domestic films in Ch ina, but still complicated . One th ird of the cast must be from the mainland (down fro m half). The story no longer has to take p lace in Ch ina, but the plot and story still have to be related to Chinesecultllrc. Other rules, incl ud ing those of the cen so rs, tend to be unwritten. I-lo ng Kong filmmakers have begun to anticipate Bei· jing's known di stastes, whi ch include a nything that might appea r to glorify in fide lity, homosexu ali ty, crime o r superstition. ,"Vi tc hes, '''la rlocks and other horrormovie stapl es a rc out of style. Fo r a recent coproduction in Ch ina , Ho ng Kong's Emperor Motion Pictures produ ced a sequel to a va mpire movie hy dropping the va mp ires. Self-censorship is not controversia lit's now "a basic eco nomi c need," says the chi ef executive of the I-lo ng Kong film -industry association, \ Voody Tsung. For the Hong Kong cop thriller "Breaking ews," Beijing officials asked Chong to cut refer· ences to ';th e mainland" in f..'"Ivor of "o ur motherland," and hc comp li ed. 41n Chin a, if we have to take ou t sce nes, then we take it out," says Cho ng. " \Ve do w hat has to be done:' I-long Kong film still filces many challenges o n tile mainland , incl uding ram· pant piracy and a shortage of decent dleaters. But its exclusive Ch ina co nnc(.1lon looks safe. In bar-braining to join the World Tradc Organization in 200 1, Beijing agreed to case its foreign· film quota v"rith in three years, but to only SOfilms at most. Sensitive to "corrupting" \Vcstern inllu cnccs, China is not likely to remove the quom entirely. or is it likely to find partners more despe rately wi lling to fo llow its ru les. • N

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I Allan Sloan

An Icon, Ready For a Takeover T 'S COME TOTHIS: AT&T, ONCE THE MIGHTlEST COMPANY OK

earth, the finn that reached out and touched almost every American household, is not only giving up on attracting new residential customers - but it's almost certain to be targeted by a group of takeover artists. I've learned that several former high-ranking AT&r executives who left the firm after disagreements ,,~th the current management are

working\\;th Koh lberg, Kravis, Roberts & Co., a ~ew York leveraged-buyout house. It's not clear w hat their KKR gig consists

of-KKR declined tocolUmcnt- but it's hard to imagine that the topic ofAT&T never arises. And, my sources say, within the past year KKR and at least one other private-equity firm have approached AT&T about buying the company. AT&T declined to comment on any aspect ofrhis a rticle.

Being u'lkcn over by a financial operator like KKR wou ld mark tile final fall of the company 0 11 CC kno\-v11 as Ma Bell, which during its days as thc nation's telephone monopoly had the greatest revenue, profits

and stock-market value of any company on earth. Despite this rich hi story, AT&T is chum p change these days as far as \Vall Street is concerned- whi ch is why it's vulnerable. Some 204 of the Standard & Poor's 500 Index companies had stock-market values greater than AT&T's as of Friday, according toAronson+Johnson+Ortiz, a Philadelphia money-management film. The market valued AT&T's stock at a mere $ 11 billion. l b put that number into context: it's about one third the size of the special cash diddend f\·1icrosofi: declared last week. " Vie can co un t," ch ief executi ve David Donnan sa id Th ursday, exp laining why A.T&T will stop prom oti ng its stilllucrative rcsidcl1 tiall ong-di stance business, \vhich dates back almost a ccntury. But AT&"-...')"s numbers are a screaming im~tat i on for a leveraged-buyout housean outfit that docs ta keovers involving lots of borrowed money- to take a run at AT&r. The compa ny is a tempting target for a private buyer because it generates tons of cash from its operatio ns-but is relatively light when it comes to reported profits. Private buye rs care about making money, not about showi ng smoothly rising ea rnings the way that publicly traded companies like to do. AT&."T's profits are in free fall -second·

raising prices, adding fees, c utting baek o n service-you'd have even mo re mon ey to play \\rith, at least until the customers leave. Meanwhile, you cou ld concentrate on AT&T's lucrative business market, which accounts for about three quarters of its cash flow. The decision last week to concentrate on business seJ1,~ces and let the co nsu mer operation fend for itselfis the plan formulated by Dorman, who became chi ef executive two years ago. Back then, Dorman decided AT&T should be all things to all te1ecom custome rs by offering packages that combined its long-di stance service ,,~th ",rirciess, broadband and locaJ phone service purchased from other companies a nd resold under the AT&"""l~ name. But numbers-a nd regu latory reverses - intervened. D orman's new strategy, ironically, seems to be the one u rged on him by some of the people now advisi ng KKR- but that he rejected at th e time. You'd alm ost th ink that Dorman is hearing the footsteps of takeover a rtists, a nd is trying to be..'lt them

The thought of it boggles the mind. Ma Bell once bestrode the earth like a corporate giant. Now the likes of Kohlberg, Kravis are eying it. quarter earnings, a nn ounced last week, were down 80 percent f.·0111 2003's. But th e takeover math - nO[ to bcconfused with \Vall Street's stock-valuation math - is rather simple. AT&T's stock closed Friday at $ 14.02 a share. AT&T says its frce cash flow- the diffe re nce betwee n the cash it takes in and the cash it pays out for ex penses and to maintain a nd upgrade its f..'lcilities-currcn tl y runs about $5 a share. It '\-\ri ll ri se to at least $5.25 because of the spending cuts announced last week. Now \"atch th is. Say somcone would lend you $ 15 a share to buy AT&I: Even though the company's revenues and cash fl ow are shrinking rapidly, you'd be able to pay off the loan in four or five years, a nd then find yourself rolling in dough . (Of course, real-life math is n't quite that simple- but you get the idea.) If you do the obvious shOlt-termy things to boost income from consumers-

to the punch by j ettisoning marg in al busi-

nesses and cutting costs. 1t's not cie..'lr if the ex-AT&T execs \vorking v.rith KKR wou ld be violating th eir noncompete agreements \\rith AT&r if they worked on projects invoh~ng their form er company. But it wouldn't surprise me to discover that Dorman, who came close to selling the company to BcllSouth thi s year, was shopping itagain. If that happens, KKR a nd other private-equity firms are the natural buyers. The thought of it boggles the mind. Once upon a time, there was x la Bell, which bestrode the earth like a co rporate colossus. l\ow, the likes of He nry Kra\1S are eying it. Pe rh aps someday soon Kravis's friends \"ri ll have a new nickname for him : Pa Bell. SLOAN is NEWSWEEK'S Wall Street editor. His e-mail issloan@panix.co m.

BY STEVEN LEVY TEVE JOBS NOTICED SOMETHING EARLIER THIS

year in New York City. "I was on Madison;' says Apple's CEO, "and it was, like, on every block, there was someone with white headphones, and I thought, 'Oh, my God, it's starting to happen':' Jonathan lve, the company's design guru, had a similar experience in London: "On the streets and coming out of the 'lUbe, you'd see people fiddling with it." And Victor Katch, a 59-year-old professor of kinesiology at the University of Michigan, saw it in Ann Arbor. "vVhen you walk across campus, the ratio seems as high as two out of three people;' he says. They're talking about the sudden ubiquity of the iPod, the cigarettebox-size digital music player (and its colorful credit-card-size little sister, the Mini) that's smacked right into the sweet spot where a consumer product becomes something much, much more: an icon, a pet, a status indicator and an indispensable part of one's life. Th 3 million-plus owners, iPods give not only constant access to their

entire collection of songs and CDs but membership into an implicit society that's transforming the way music will be consumed in the future. "\Vhen my students see me on campus with my iPod, they smile," says Professor Katch, 'whose unit stores everything from Mozart to Dean Martin. "It's sort of a bonding."

The glue for the bond is a tiny, limitedÂˇ function computer with a capacious disk drive, decked in white plastic and loaded \\~th

something that until very recently was

the province of ultrageeks and music pirates: digital files tJlat play back as songs. Apple wasn't the first company to come out ~~th a player, but the earlier ones were either 100v-capacity toys that played the same few songs or brick-size beasts \vith impenetrable controls. Not only is Apple's device powerful and easy to use, but it has an incandescent style that makes people go nuts about it Some, like 44-year-old 1bkyo electronics executive Katsuyulci Kanema, take their iPod everywhere, even the bathtub. (He doesn't need to worry about changing CDs ",~th wet hands.) "It's the ultimate relaxation," he says. CU:X;UIISE FIIO" TO!' LEFT: PHOTOGRAPH 8ÂĽ R. J EROME IUUlAAO FOR NEWSWEEK. PAlR ICK POST- HOll ..... OSE HOOGlE.

Adding to the appeal is the cachet of A-list approbation. "I love itl" says songwriter Denise Rich. "I have my whole catalog on it, and 1 take it everywhere." She is only one voice in a chorus of celebrity Podsters \vho sing the same praises voiced by ordinary iPod users, but add a dollop of coolness to the de\~ce, as if it needed it. Will Smith has burbled to Jay Leno and \Vired magazine about his infatuation with "the gadget of the century." Gwyneth Paltrow confided her Pod love to Vogue (her new baby is named Apple-coincidence?). It's been seen on innumerable TV shows, movies and music videos, so much so that Fox TV recently informed Josh Schwartz, producer of its hit series "The D.C.," that future depictions of music players would have to forgo the telltale white ear buds. Schwartz, himself a 27-year-old who still hasn't recovered from the shock of having his unit stolen from his BMW, was outraged. "It's what our audience uses and what our characters would use," he says. People who actually create music are among the biggest fans: "The layout re-

minds the musician of music," says tunester John Mayer. And couture maven Karl LagerfcJd's iPod collection is up to 60, coded in the back by laser etching so he can tcll what's on them. Lagerfeld's tributc to the iPod is a $ 1,500 Fendi pink copper rectangular purse that holds 12 iPods. a is one of more than 200 third-party accessories ranging from e:-.:tcrnal speakers to microphones and- filsten your seat belt- a special con nector that lets you control your iPod from the steering wheel of a llMW: Music hits people's emotions, and buying someth ing that opens up one's entire music collection - up to 10,000 songs in your pocket- makes for an intense relationship. iPod users often obsess, talking incessantly about playlists and segues, grumbling about glitches, fixating on battery life and panicking at the thought oflosing their digital rriend. "It's as much a prut of my life as eating and drinking; says Shanmugam Senthivci, 28. a Singapore systems analyst. .Fans of the de\~ce usc it for more than music. "It's the limollsi ne for the spoken word," sal's Audible CEO Don Katz, whose digitalaudiobook company has becn revitalized by having its products on Apple's rI'unes store. (Podsters downloaded thousands of copies of Bill Clinton's autobiography \\~thin minutes of its 3 a.m. release last month.) And computer users have discovered that its vast storage space makes it a useful vault for huge digital files: the makers of the "'Lord of the Rings" mO\~es used iPods to shuttle dailies from the set to the studio. Thousands of less accompli shed shutterbugs store digital photos on them. iPods aren't conspicuous everywheretheir popularity seems (,"Cntered on college tmVTIs and big cities from London to Los Angeles- but sometimes it seems that w-ay. Earlier this year during tl,C Apple vs. Apple case, wherein the BeatJes' record company is su ing the computer firm on a trademark issue, tJle judge wondered if he should recuse himself- because he is an avid iPod user. ('T'he litigants had no objection to hi s staying on.) A report from London-based Informa Media, released last \\'cek, predicts that morc than 21 million mobile music players ,,\~ll be in use around the world by the end of this year, a quaJier of them iPods. In 1997, when Steve Jobs returned to the then struggling company he had cofounded, he says, there were no plans for a music initiative. In f.'lct, he says, there wasn't a plan for anything. "Our goal was to revitalize and get organized, and if there \"ere opportunities we'd sec them," he says. "' \Ve just had to be rc.:'ldy to catch the ball when it's thro\\!1l by life." After some painful pinkslipping and some joyous innovating, the company was solvent.

QUARTERLY iPOD SALES

APPLE'S REVENUE

UNITS SOLD, IN THOUSANDS

THIRD QUARTER , IN MILLlQNS

2003 April 2003:

250

NOY. 2001

June 2004

PowerBook

363

2004 435

iMac7eMac Power MacÂˇ iBook

301

235

234

332

196

iPod

111

261 249

Other

340

502

TOTAL

NEW~WEF.:tc

$1,545 $2 ,01' AIlr.II~T

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But in the flurry, Jobs & Co. initially failed to notice the impending revolution in digital music. Once rna[ omission was understood , Apple co mpensated by developing a slick "j ukebox" appl ication known as iThnes. it was then the company's brain

trust noticed tJlat digital music players

Many singers like R&B star Alicia Keys, helping Jobsopen an App le store in London, have taken to the iPod and fueled its

cachet among civilian users

DIGITAL- PLAYER MARKET

CD & TAPE MUSIC MARKET

SHARE OF UNITS SOLD, APRIL 2004

GLOBAL SALES

Top four iPod competitors

tR,o ~ 2.RCA Lyra

3.iRiver

MUSIC DOWNLOAD MARKET

4.0igitalway 1999

2003 04 05 06 07 08

'I~ CLlmr~ ~(R V(A S'LES SO Ii RCES; APPLE: NPO GROUP/MfO IECHWORLO; JUPIH R HES('RC~: FO RR ESTER RESEARCH,INC., If PI PHOTO BY I,N W'llll( - GrllY 1000.GES

weren't selling. \Vhy not? "'The products sta nk ," says Apple VP GregJoswiak. Life had tossed Jobs a softball , and early in 200 1 he ordered hi s engineers to catch it. That February, App le's harel'Narc czar, Jon Rubi nstein, picked a team leader from outside the company-an engineer named 'Ibny Fadell- \vho v..'as told to create a b'Toundbreaking mus ic player and have it on sale for Chri stmas season that year. Th e requiremen ts : a very fast connection to onc's computer (via Apple's high-speed Fi rc\Vire standard) so songs could be qu ickJy uploaded. A close synchronization with the {Iunes software to make it easy to organize music. An interface that would be simple to use. And gorgeous. Fadell was able to drmv on all of Apple's talents from Jobs o n dO\V11. VP Phil Schiller came up with th e idea of a scroll ''''heel that m ade th e menus accelerate as your finger spun on it. Mcal1\vhi le, Apple's industrial designer l\'c embarked on a search for the obviolls. "From carlyon we wanted a product that would seem so natural and so inevitable and so simple you almost wouldn't think of it as having been designed,'" he says. This austerity extended to the whiteness of th e iPOO, a double-crystal polymer Antarctica, a bla nkness that screams in brilliant colors across a crowded subway. "H's neutral , but it is a bold neutral , just shockingly neurral ,'" says ]ve. Assessing the final product,Jobs bestows, for him , the ultimate accolade: "It's as Apple as anything Apple has ever done." The October 2001 launch came barely a month after 9/11, with the United States on edge and the tech industry in the toilet. Skeptics scolled at the $399 price and the f~lCt that only Ylacintosh users, less than a nventicth of the marketplace, could use it. But savvy 'ylac-hcads smv the value, and the iPod was a hit, if not yet a sensation. ÂĽlhat pushed it to the next level was a number of Apple initiatives, beginning with a quick upgrade cycle that increased the number of songs (while actually lowering the price). Then th e company released a version that would ru n on both \,vindows and Mac, dramatically increasing the potentiaJ market. Finally, after imcnse negotiations with the record labels, Apple licensed hundreds of thou sa nds of songs for its il\mes Music Store, which blended sea mlessly with the iPod. As with the iPod itself, th e legaldm.mload sto re was not the first of its kind

Second Players

pie, where only albums are released, digital downloads will allow th e first legal alternative for consumers to buy singles, notes Sudhanshu Sarronwala, CEO of Soundbuzz, Asia's biggest digital路 music store. Certai nly many millions of gigabytes of iPod space are loaded with tunes plucked from the dark sidc of the Intcrnet. And the industry still hasn't worked out how to license the digital rights for a song that is copied onto both a home CD player and an i Pod, says Jay Berman, chairman of London-based IFPI , which represents the global record industry. Kevertheless, since everyone seems to think that within a decade most people v.~ll get their music from such places, this is a very big deal. An equally big deal is the way the iPod is changing our listening style. Michael Bull, a lecturer at the University of Sussex, has interviewed thousands of iPod users, finding that the ability to take you r whole music collection \\~th you cha nges everything. The prima ry way to exploit this is the "shum e" feature, whi ch reorders your collection \\'ith the thoroughness of a Las Vegas blackjack dealer and then plays back the crazy-quilt melange. "Shu me throws up almost anything-you don't know it's coming, but you knO\v you like it," says Bull. "Because of this people often say, 'I t's almost as if my iPod understands me'."

As hard as they try, imitators

can't duplicate the iPad's appeal. 1. Creati ve Zen Touch, 20 gigs; $269, creative.com. 2. Sony Network Walkman NW -HD1, 20 gigs; $399

(est.) , so ny-style .com. 3. Rio Karma, 20 gigs; $299, rioaudio.com. 4. Oell Digital Jukebox, 15 or 20 gigs; $199 or $279, dell.com.

H UFFLE ,"\fINDS UP HELPIKG

but was so felicitous and eflicicnt that it leaped to a 70 percent market share. Then sales began to spi ke. No one \0,.115 surprised that Apple sold an impressive 733,000 iPods world\\1de during the Christmas season last year, but the normally quiet quarter after that saw an increase to 807,000. And two weeks ago Apple announced that sales in the just-completed quarter-traditionally another dead onc- hit 860,000 units, up fro m 249,000 a year ago. iPod sales could have grown even faster last quarter had Apple not had problems getti ng parts for the latest iteration, the iPod Min i. Though critics praised its com路 pactness and its panache- a burnished memllic SUIT.1Ce made it look like a futuris路 tic Zippo-they sniffed at irs relatively low capac ity (only 1,000 songs!). But apparent-

Iy there are lots of people like Brent Hansen, president of MTV Networks Europe, who bought 75 Minis in the United States as gifts for his senior managers. Hansen was lucky, considering that the first ship路 ment to London arrived last weekend, and the waiti ng list at music chain H MV's flagsh ip store was 10 times the 50 it expected to get in.1b the delightof App le (and tilechagrin of Sony), the no-brainer description of the il'od is "th e Walkman of the 21st century." (Retro f.1.ns cany theirs in an original yell ow Walkman ease.) And just as the \Valkman changed the soundscape of our lives, the iPod an d the iTun es store are making their mark on how we handl e our music, and even the way we listen to it. The store has proved that many people ,,,ill pay for digital music. In Asia, for exam-

people make connections betvveen different gen res of music. "If you want one song by an obscure band, you don't really want to have to buy their greatest hits," says London stockbroker Charlie Parnell, who now carries his entire music collection and likes to "whack it on random play." These abilities have a predictable effect: people wind up listening to morc music, and with more passion. And since the iTunes sto re encou rages customers to eschew buying entire CDs, instead purchasing the best song or tvvo for a buck a pop, it's easy to see why some think that the era of the CD is plalong its final tracks, a circumstance many \\~Il lam ent. "The one cool thi ng about a CD is really getti ng to knmv an album," says iPod t:1.n Wil-Dog ."illers, bassist for the hip-hop collective Ozomatli. "I don't know what we're gon na do about that." In Silicon Valley, the question is what Apple can do to maintain its dominant position in the field. \Vhile Apple execs say they are su rprised at how lame the competition has been to date, it's reasonable to think that rivals might eventually close the gap. Last week Creative 1cchnology of Sin gapore released Zen Touch, a slightly

Plug-In Podners Of the 200 available iPod accessories, here are a few must- haves: 1. iPod Mini Arm

Band, $29. 2. Belkin Media Reader, $99. 3. Altee Lansing In-

Motion Portable iPod Speakers, $149.

4. Sony Car Cassette Adapter, $19.95.

5. Belkin Voice Recorder, $34.95. 6. Shure E3c Sound Isolating Earphones,

$179. 7. JBLCreature II Speakers, $99.

cheaper rival that is bulkier but has more than twice the battery life of an iPod. And Sony, \vhose initial efforts in the fi eld \vere constrained by the copy·protection demands of its music unit, is introducing a new line of digital players this summer. "\~le feel that the expe· rience is as good as Apple's, and we have the \Valkman brand," says Sony i\'.Illerica's CEO, Howard Stringer. "\Ve're in the game." The ultimate competi· tion may come from sef\~ces that stream unlimited music for a monthly fee, like Real Ket· works'Rhapsody. But at the moment the iFod is the cate· gory. If Apple, as promised, manages to get enough drives to satisf}l the demand for the JVlini iPod, it may achieve the ubiquity of its vvide·bodied companion. And later this summer, when computer giant HP begins selling a co· branded version of the iPod, consumers will be able to get them in thousands of additional retail stores. All this is infinitely gratifjring for Steve FRO'.I TOP, PHO Ti)(;fW'H 6Y J(lNUHIJj I{ANTOR p~

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o o in the iTunes store. Apple had promised a prize to the person who moved the odometer to auc pa or easier ';1< IP.d nine figures, and fortune seekers scrolling; shuffle ("I .... snapped up files at a furious with just one click rate. At about 10:15, 20-year-old Price: Top-ol-thehUI"I"1 Ke"in Britten of Hays, Kansas, line model now $399, bought a song by the electronica a $100 cut band Zero 7, and Jobs got on the Play: A 50% boost in phone to tell him that he'd won. battery lile without Then Jobs asked a potentially more weight embmTassing question: "Do you Color: Despite the have a .YIac or PC?" "I have a rumors, still as pure .:\:1acintosh ... dull!" said Britten. as the driven snow Jobs laughs while recounting this. He knows that the odds of anyone's ovming a j\·lac as op· posed to the competition are Jobs, the computer pioneer and studio CEO small. He doesn't want that to happen ...vith \vho turns 50 nex.t February. "I have a vcry his music player. "There are lots of exam· simple life," he says, without a trace of irony. pies \vhere not the best product \vins," he "J have my family, and I have Apple and says. "But there are examples \,,-'here the best Pixar. And I don't do much else." The night product wins. And the iPod is a great exam· before our interview, Jobs (also CEO of pie of that." As anyone can see from all those Pixar) and his kids sat dO\\11 for their first white cords dangling from people's ears. family screeningoftbe studio's 2004 release With BRAD STONE in San Francisco, SONIA KOLESNIKOV"The Incredibles:' After that he tracked the JESSOP in Singapore, TARA PEPPER in London, DANA countdmvn to the 100 millionth song sold THOMAS in Paris, KAY ITOI in Tokyo and bureau reports i~lt"'Q'

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of day, not even the receptionists," he co nfessed to a friend after two straight days of ringi ng French tra\'el agenci es to sell packages to Brazil. So on hi s fi'iencl's advice, he changed tack. uJ'm sorry J don't speak French ," he bega n again, in hi s most diffident Engl ish. "I am fi'om Braz il." An d sudden ly the walls came nmlbli ng dov.rn. "Ah, Brt~- s il !" bubbl ed the solicitous voice on the other end. "I'll put you right through." Talk about opening doors. ~ot long ago, mention ing Brazil co njured images of street chi ldren or mountains offo reign debt or, at best, a lady in a tutti -frutti hat. For all the world kne\v, or cared, Brazil was just another big, aff.:1ble Latin country- Mexico o n steroids-tucked away somewhere below the equator. Even some heads of state seemed clueless. "It's nice to be in Bolivia," Ronald Reagan told an audience on his first state visit to Brazil in 1982. His hosts took it sportingly. "The people of Bolivia welcome the president of Canada," read th e ne:-.:t day's newspaper. But beyo nd the gaffes and guAaws was a major hole in the mappanmndi of the \Vestern mind. No longer. Though the number of foreign touri sts to Brazil has increased only modestly in the past several years, Brazilians-or Brazilian culture- now reach nearly every corner ortlle world. i-o rget Gisele or Ronaldo, who are weU on their way to beco ming universal properties. vVhether it's the caipirinhas flying ofl' tlle bar at Sushi Samba in lower Manhattan, samba diva EIz.:1. Soares bringing down the hOllse at London's Jazz Cafe, capoeira classes in Toronto or the

sun-ki ssed sylphs dominatingcatwalks fi'om Milan to Guangzhou-almost anY',vhere you tum , there's a bi t of Brazil in the air. The Brazili an contagion goes beyond the (.'1miliar enclaves of f.1.shion and footbalL New Yorkers line up to hear two -ti me jazz Grammy nominee Luciana Souza, whcthcr she's purring silky samba standard s at Joe's Pub or loosing arias in an Osvaldo Golijov opera at Avery Fisher Hall. tn May, Selfridges, d,e London department store, turned over its entire building to Brazi lian food, fashion, music and art- and crowned it all \\~th a four-meter replica of Rio's art deco Chri st the Redeemer statue. Through September, London's Design Museum will feature the rococo creations of haute furn iture makers Fernando and Humberto Campana- including the f.1.vela

chair, patched together \vith sticks like Rio's shan tytowns. Much ofthejrisson is fueled by th e spread of expatriate Brazilians. New York and Bosto n are crawling with them. Some 280,000 Brazilians ofJapanese ancestry make th eir home in Ja pan. Braz ilian fashion models are the workhorses of today's Asian fashio n industry. But to an unprecedented degree, Brazilian culture is nov.' rubbing off on the locals. On the last Saturday of every August, Tokyo's traditio nal Asakusa district reels wi dl th e cacophony of a rullblown Brazilian native Japanese wearing the feathers and paint. Fogo de Chao, wh ich pioneered "rodi zio" barbecue franchi sing, has launched fOllr resta urants in the Uni ted States since ]997,

and plans to open one a year "for as long as the market bears," says mvner Arri Coser. Alld American and European women bought S 13 million worth of Brazilian biki· nis last ye.;'lr-not to mention the waxes nee· essary to show them otI 1b Brazilians, it's just depilation, but to the Oxford Dictionary it's getting "the Brazilian." \\Thy aU the fuss? Maybe it's the merry scandal ofbe.;'lrhugs and babble that breaks out whenever two or more Brazilians happen to be in the same room. Perhaps it's the way Jani ce, Joyce and Janca - or any of the other seven '1 sisters"- pamper the patrons at their eponymous YJanhatL'ln salon, cooing "meu 31110r'" ("my love") and planting twin kisses on their cheeks, then wa'cing them into the girl from Ipancma. \Vhatever the explanation, the Brazil obsession is spreading. "\Ve sensed a f..'lseination," says Jam es Bidwell, Selfridges marketing manager. "People are beginning to look \vest rather than east for inspiration, and Brazil has glamour, but also grittiness. Out of that combination comes great creativity." Evel), f1ag has its hour in tllC sun , of course. ImpOlting ethnic flavor has long heen a pastime of the leisure classes in Europe and dle United States. W'h en King'l1lt· ankhamen's tomb was discovered in 1922, scarab earrings and EID1)tian hieroglyphic motifs became hits in New York and Paris. Wl1en Asia's tiger economies began to stir in the early '90s, the \Vest couldn't get enough raw· silk cheongsams and Asian fusion cuisi ne. In a time of global appetites and flights to anywhere, Brazil's turn \vas boulld to CLOtI;W IS[ fROo.! lOP LEfT ~ HO ru:W STAYUCKI-IOROHTQ STAR, WPlA PR(SS , COURTESYOf ... <.. ...., . . . . ~ ".,~ ••• ,." •• ...," •• nn~' .. "<~_ ....... , •• ~."'"<'"T _r. ...

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come. But who e\'er imagined English bobbies dancing\vith samba quccns ? Not everybody is so rapturous about Brazil-stal1.ing with the natives. Often Brazil's best talents, like Bebel Gilberto or Luciana Souza, have had to make their names abroad before allyone notices at home. "In Brazil ," Antonio Carlos Jobim, one of the godfathers of bossa nova, once quipped, "success is a personal offense." The self-doubt may now be waning. Having world-music Grammy winner Gilberto Gil as Culture minister certainly helps. Most envoys arc ponderous shmoozers; Gil just pulls out his guitar. o<~

If there was a turning point for Brazilian self-esteem, it was in 2000, when the count1)' celebrated its Sooth anniversary \.,.;th a splashy Rediscovery exhibit. Sao Paulo now hosts one of the world's top five biennales, and Brazilian art is on display everywhere from the Guggenheim to the Russian State Museum. "'It's like new friends," says Edemar Cid Ferreira, director of Brazil Connects, a cultural promoter. "The \\'orld has started to ask, 'Wbat country is this?'" In an oblique vvay, credit may go to Luiz lnacio Lula da Silva, the charismatic peasant's son turned president, who has stood up to protectionism in the rich world byl)~ngllp U.S. and European fanncrs and industrialists in intcrnational trade tribunals. Playing Lilliputian to America's unilateral Gulliver also resonates well in a time of post· Iraq-war sensibilities, where many nations fecI caught between fundamentalist fiuy and muscle diplomaL),. "The Brazilian style is about holding one's own without being a f..'lnatic; says Roberto DaNlatta, Brazil's Illost respected anthropoloh~St. "That could be a balancing factor in international relations." Perhaps. But all this could just as well be a passing fad, like the other ethnic crazes that come and go like so many plats dn jour. One day, of cou rse, Ronalda's knees \\·;11 give out and iiber-model Gisele will kick off her heels and pass tlle f.'lShion crown to some lithe young thing from Croatia or Kenya. No one is predicti ng that the Brazilian invasion is here to stay. But it's goingto be fun while it lasts. Wilh RANA FOROOHAR in london, KARIN BENNETT in New York and HIDEKD TAKAYAMA in Tokyo

Building a Bigger Star With the music business flagging, industry execs are looking for European acts that have real global appeal BY TARA PEPPER lXCH ERO -A.K.A. ADEL\'1 0 FORnaciari - may be [t"..tlian, but he is well 0 11 his way to becom ingpartof

Coopers predicted continued decline until 2006-in part due to illegal downloading. "The only chance to mckJe this is to try to increase our audjencc by entering foreign mar-

a rare musical breed : the European

kets," says Peter James, managing director of

rock stoll'. Though his biggest fan

German Sowlds, an o rganization set up last winter to promote German music abroad. Over the past five YC.:'lrs, music has become increasing ly localized. In the world's bi~Y'Cst music markets- th e United States, Japan , Britain and France- homegrmvn bands capture the lion's share of sa les : 93

base remains at home, his gravelly blues style has won him a following around tllC region, especially in France and Germany. )Jow his latest alblun, "2u & Co," is being released in SLX different editions-Italian, Spanish, French, Australian, Latin American and an

albums abroad. By last year that number had jumped to nearly 40 mill ion, championed by energetic French music-export offi ces in London, ~cw York, Berlin, rlbk,1'o, Barcelona and elsewhere. Sweden- which has one of the Continent's oldest musicexport offices, coordinating the country's presence at internationaJ festival s and trade fairs- is now the wo rld's third largest exporter of music. German Sounds hopes to identi ty up -and-coming domestic artists and shO\vcase them at the industry's yearly trade shO\v in Ca nnes. And th e European Music Office, a lobby organization, is pushing for more EU integration- including a European export office in New York and a European Talent Exchange Program, which would give local festivaJs an opportunity to select mtists from across the Continent. But for now, foreign-language records remain a hard sell in any country. Zucchero

POP POWER: For his latest album, Zucchero performed duets with suc h global notab les as (from left) Eric Clapton, Pavarotti and Dolores O'Riordan "internationaJ" version-to capitalize on this popularity and turn him into a o·ueglobal act.

Each has been tweaked to appeal to a local audi ence; the French album, for instance, includesa duet \vith Gallic croonerJohnny Hal lyday, wh ile Australia's features Tina Arena. Max Hole, seni or vice president of marketi ng and A&R at Un iversal Music International, masterm inded the efiart, wo rking with the label's Italian arm and Zucchero himself to create music v.1dl broad allure. That required less Italian rock and more romantic ballads. It also meant a snazzy debut: Zucchero launched dle album at a well -publicized concert at Lo ndon's Royal Albert Hall , "vhere many of hi s duet partners- including Pavarotti, Erie Clapton and the Cranben·ies's Dolores O'Riordanjoined him on stage. The show was reco rded for TV netwo rks across Europe, gi\1ng him maximum exposure and allm,ving him to "short circu it the system," says Hole. T hat system is badly in need of a jolt.

Globally, record sales have been falling for the past four years, down 7.6 percent in 2003. A June report from Pricewaterhouse-

l)Crcent of music sold in the Uni ted States in 2002 was by local artists, as was 74 percent in Japan ~Ul d more than half across Europe. Lndeed, relatively few European artists manage to break into the charts outs id e the ir home country. Those that do are mostly Ang lo-American: this year Korah

Jones, the fugces, Dido and George Michael topped the monthly list of Europea n best sell ers compiled by th e International Federation of the Phonograph ic Indu stry, the industry trade group. "AldlOugh there's a European Co mmunity, people are not very curious about the culture coming fi·om the d ifferent countries," says Christop h Muller, who is dl e producer for Gotan Project, a band that has steadily built up an aud ience across the Continent. In the United States, Billboard's 2003 year-end charts showed on ly two contemporary fore ign acts - both British- in the top 100: Coldplay at 17, and Dido at 92. Slowly, that's beginning to change. Enterprisi ng governments are starting to hack independent arti sts and small labels. In 1993, French musicians sold just 4 million

is an exception, si nbri ng in English, Spani sh and Italian. Sweden's success owes largely to catchy, Engl ish-speaking bands, trom Abba to the Cardigans and the Hives. In fact, dle most successful pan-European arti sts often don't rely on lyrics at all : witness the flourishing French electronica scene. Star DJ Dimitri of Paris is launching hi s new record "Cruising Attitude" in 14 Eu ropea n countries this summer. Ultimately, though, the key to international success is simple: fans flock to quality music that stands out trom the crowd, regardless ofl anguage. Hole cites the surprise success of E nya, whose ethereaJ irish melodies are sung in Gael ic, and dle explosive German metal band Ramm stein. "A German rock group, singing in Genllan, and selling well in the U.K. and U.S., is unh eard 0(," he says. '''[ It's because] dley're doing something really different. LoC.:'l1 music needs to be unique to have a better chance of selling abroad." The balTier to intcmational success might be high, but these dynamic stars arc proving that diversity is key to creating a European mu sical union. •

shi re, AJan Bennett's new play, "T he History Boys" (at the Nati onal T heatre th rough January), explores how the kn owledge, or invention, of history can be a powerful tool fo r persuasion and social adva ncement. His subvers ive, fu nny drama, set in l\'largaret T hatcher's England, follows eight boys who arc stU(l~i ng for highly competitive Oxbridge scholarships. Thei r ruthless, showy new teacher In vin (Stephen Ca mpbell Moo re) proceeds to school them in intellectual gym nastics, tcach ing dle boys how to im press their Oxbridge exami ners and beat their upper-class peers. In Jrv.·in's hands, history is the key to success, materi al to be mani pul ated chi efl y in the service of devising powerfu.l, controversial arbrum ents. It comes as no surprise when I["\...in abandons teach ing to pursue a more modern method of manipulati ng history: creating TV docum entari cs. (Bennett lightly satiri zes the genre: I["\·..in's show is about the to ilet hab its of medieval monks.) ror him, histoI)' is a hollow gimm ick, given mea ning only in light of society's preoccupation with gaining rcs ul ts. Pi tted aga inst I["\vin's calculating pragmatism is the school's other history teacher, Hecto r (Ri cha rd Gr iffiths), for whom history is a characterbuilding well of experience for the boys to dra\v 011 . Hecto r FOR THE JOY OF IT: Griffiths as Hector in 'The History Boys' succeeds in inspiring these gutsy 17-year-olds to memoAn na and Deeley battle over their differ- rize poctry, act out snatches of classic ent versions of those days. ·Wh en tJl ey sing film s and sing golden oldies li ke Gracie alternate lines of an old song- "The \vay Fields's "\Vish Me Luck as 'You \Vave Me you ho ld yo ur hat / The way you sip your Good byc." But for him , histo ry should be tea / The memory of all tJ13t/ No they ca n't absorbed fo r the shee r joy of it, not for takc th at away fro m mc"- it becomes a the pu rpose of getting ahead . He considthreatening dance over ownership of Kate, ers exams a waste of ti me-yet without and of the past. Decle)' fights \\;!l, f.1Cts, but them, these bright, inqu isitive hoys crotic, glamorous Anna whips up his long- wo uld nc\'er succeed in breaking out of buried memo ries: Did he know her back their O\vn bleak fam ily histori es of then? Did he once spend an entire dru nken monotonous jobs and poverty. party looki ng up her skirt ? Did he fall in Both plays present Clio as th c most lovc \\·; th her fi rst? All of a sudden he's elusive of muses, insp iring provocative dizzy, not surc what happencd anymore. ideas and un foresee n passions. But they "Oh how the ghost of YO ll cli ngs," he mur- offer no easy a nswers: the past- li ke the fut ure-is worth fi ghting for, but it bemu rs, entra nced by Anna's black stilettos. Set a wo rl d away in working-class York- co mes what you make it. •

The Power of the Past

Two new London productions tackle the meaning of history BY TARA PEPPER

19T H -CE~TURY H I STO IUJ\.~S

like Maca ulay and Trevelyan, th e past was a stc.:1dily un fold ing narrative of great events d ri ven by heroic men, a map to inspire boys to create a nobler world. Futu re genc rations develo ped new fiel ds li ke eco nomi c a nd social histo ry, an d cm phasized the import..'lI1ce of explo rin g the undc rl ying ca uses of events. Mo re rece ntl y, Simon Schama lamented , "Historia ns a rc left foreve r chasing shadows." Now two new prod uctio ns on the London stage tackJ e the troubli ng question: v,fhat exactly is history a nd why does it wield so mu ch power ove r us? In the edgy, tcnsion- fi lled reviva l of Harold Pinter's "Old T imes" (at the Do nmar ' Varehousc through Septcmber), the past is pain fully stripped of objectivity. Raw cmotions color how c.:1ch cha racter recalls it. \Vh en Kate (G ina ).tIcKee) and her husba nd, Deeley (Je remy Northam), receive a \~sit from their old chum An na ( Helen .McCro ry), the peace of their idyllic f.:1 rmhouse is shatte red. An na struggles to \\~ n Kate's aOections again \\~th animated t..'l les of their gi rl hoods in the city, an endless roun d of appare ntly jolly concerts and parties. Yet Kate has already confided to her husband how lonely she was then, loath ing the city, and how she prefers the cal m of the cou ntry an d the ocean. NEWSWEEK AUG U ST 2 , 200 4

Rocking, Rollingand Roaring A hot new motor sport pushes gravity to the limit BY VANESSA JUAREZ

T'S 9:30 ON A COOL AK D CWUDY

Su nday morni ng, and Tracy Jordan\\"ho's also kn own as T he Steel-Horse Cowboy and Hollywood (he says it's the sunglasses, not his movie-star looks)- is strategizing just how he' ll crawl up and down a \,va ll of di rt, mud and boul -

ders that peaks more than lS meters above Jellico, Te nn. Jord an, a 27-year-old Arizonan, must usc his custom-bu ilt rig, a

truck/dune-buggy hybrid, to get through th is and seven other courses. J f he doesn't feci completely co nnected to it, as ifit were a li mb, he could go tumbling down. But Jordan makes ridi ng through the trai l loo k like a Sunday drive. That's why he's NO. 1 in

the newly professional American spo rt of rock crawling.

Four times a yc.1. r, these mu ltiday United Rockcrawli ng and OffÂˇ Road Challenges turn the small town ofJcllico (two hours from Tellico) in to tlle center of th e universe for 100 cra\vlers and 9,900 spectato rs who've driven hundreds of kilometers to watch a SpOit that combines an elegant dO\wlhill slalom with the Demolition Derby. Teams consist of a dtiver and a spotter, whosejob is to guide the driver tluough a course defi ned by orange trafHc cones. Just nudging one means 10 penalty points, The pai r with the fewest points wins. For the fa ns, part of th e allure is that they can be close to the course, making the experience much more intimate than arena racing. "NASCAR has become so big and commercial,'" says Brian \Valdrop, who drove from Marietta, S.c., to watch the

spectacle. And for those walY of tile beerguzzling crowds at other sporting events, rock crawling is alcohol-free. The prohi bition started in the sport's carll' days, when drivers wou ld knock back a few while behi nd the wheel, making an already risk.1' endeavo r loo k really scary. UROe officials decided to ban dri nki ng, even among the fa ns, who were doing their own sha re of imbibing and fl inging of beer bott1es. The sport has grmvn mostly by \vo rd of mouth, or, as Tennessean Ga ry \Velch puts it: "O ne redneck said to another redneck, 'Hey, I can do that better than yo u'." Just tlll'ee years ago contests drew only a few hundred fan s and 30 crawlers. Now teams in new clubs like Jordan's Rock Runner Racing help each other at events with spon-

sorship from compan ies li ke BFGood ric h. But it's sti ll mall agai nst mou ntain . The night before the most recentJellico contest, Jordan- who works as an asphalt paverwas up late meticulously cutting tread from hi s tires so the mud would spi t out with ease. Crawlers need that passion. Ni nety percent of the $50,000 it cost to build Jordan's rig came out of his own pocket; the most he can win at an event is $7,000. The best crawlers thri ve on th e danger. Jordan has endured a broken nose and two concussions, and has had a few teeth knocked out. DUli ng an event last year his rig dangled off a five-meter overhang. " \ Ve just slowed everything do\\ll, backtracked and got out of it," he says. In the most recent match, he and h is spotter, Jerry \;Vatso n, callle in fi fth after a rough second ha lf fi lled with a rollover and two cone penalties. Since they're still fi rst in the seri es, they're looking to bigger and better tilings like the Su perCrawl, which will be televised in the f.:1.11. Real crawlers alWAY OFF-ROADING: A learn in Jellico tries to get back on track du rin g an obstacle course ca ll ed Battleship ways get back up.

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PH OT OGRAP HS BY TONY BAKER FO R NEWSWEEK

BOOKS

The Coma by Alex Garland he story issimple, readable, desolate: Carl, an office worker taking the last train home, gets severely beaten by thugs. So his coma begins, on page seven. He spends the rest of the novel trying to break free from unconsciousness. The more Cart's mind struggles to return •~ t b' 0 III • to life, the more it tricks him. He : C dreams he is awake when he is • not. He searches his memories : for a trigger-a childhood home • I '~ ora lover-to help him snap out ~ I .~!._I)~ of it but finds only amnesia. It __ "~ ~You wake, you die, says our comatose narrator. Garland, authorof"The Beach" and the screenplay"2B Oays Later," serves up his most accomplished work to date, a poetic riff on the vagaries of memory, trauma and dreams. -MICHAEL HASTINGS

Dancing for Their Lives Nothing illuminates Castro's Cuba better than music BY MALCOLM BEITH

1S I TI~G

CUBA

TENDS

produce more questions than answers. HO\,v has the country's unique brand of socialism ma"naged to stay afloat in the face of a strict U.S. embargo? !-tow can the Cuban people remain so proud of their system whcn they live in such despair? \Vhen Fidel Castro dies, ..."hat happen? A.J1d how in the name ofChe did these islanders learn to dance so well? In "Last Dance in Havana: T he Final Days of Fidel and the Start of the New Cuban Revolution" (272 pages. Free Press), The \.yashington Post's Eugene Robinson poses similar questions. Usi ng music and dance as hi s ~~ndow, he illuminates a huge swath of Castro's Cuba. "'Today all of Cuba dances to live; today all of Cuba lives to dance," \\-'Tites Robinson. Understanding the rhythms and tensions of Cuban dance is critical to understanding the country. lb escape abjcct poverty, Cubans dance each night as if there is no tomorrow. But dance aJso serves as a metaphor: ordinary Cubans, desperate for C.S. dollars to buy luxuries like medicine and fresh milk, delicately tiptoe the line between Castroism and capitalism to earn more than their allotted share. EVel)1:hing in Cuba is a dance-and there is no better dancer than Castro. For 4S years, EI Comandante has held f01th on the diplomatic dance floor. He cleverly courted the Soviet Union while

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breathing fire at the t"mperiaListas to the north. When the Soviet song- and $6 billion in annllal aid-came to an end, he found new dance partners among the Latin American and European left-Vl~ng elite. He has allo\ved dissent to hvirl relatively freely, but has always reeled it in before it could escape altogether. ~or a time, he even permitted Cuban hip-hop artists to address Cuban racism - ,'vhich he insists does not exist. But when rappers began to criticize just a little bit too loudly, c.,stro pulled the plug on Havana's regular hip-hop events. Through interviews with musicians, some necessarily unnamed Cubans, a fe"v too many cabdrivers and even some government officials, Robinson captures the pulse of contemporaI)' Cuba. But despite turning over evel), sto ne, he is unable to dig into the dirtthath olds the real answers. Indeed, musicians are as torn bet""een local timba and commercially viable Latin pop as average Cubans are between the benefits of socialism and capitalism. The popularity of hiphop demonstrates that young Cubans who don'tidentifvwith the old revolution maybe ready for a n~w one. Optimism about Cuba's future exists, as does a fear of ''''hat \vill happen after Castro dies. But what wt"lL happen? Robinson can't really predict. Like tourists Icftgawkingat the dancers who light up HavaJla's Casa de la :Musica each night, we too must settle for bruess ing what Cuba's greatest dancer's next move will be, and what it will mean for his country. •

The Dog Fighter by Marc Bojanowski e know many teUing details about the narrator in this darkly comic debut novel set in 1940s Mexico: he doesn't like to talk, his mother died when he was 14, he once hung a puppy from a tree and his grandfather prophesied that he would one day fight dogs to the death. He's also in love with the niece of the deadliest businessman in Cancion, a town where developers want to build a tourist haven and the locals want to stop them. Meanwhile, he makes a name for himself fighting dogs for money. In this finely crafted story about our eternal desire for violence, man bites dog, and dog bites man. Turns out we're both beasts. -M. H.

Public Enemies by Brian Burroughs

t the beginning of the Great Depression,

much of the United States was still the Wild West: dirt roads, cracker-box banks and "murderous hillbillies" in search of cash-but now with faster cars and bigger guns than the cops had. Enter a fastidious control freak with an appetite for publicity and a genius for political survival named J. Edgar Hoover and his recharged FBI. Burroughs turns the collision of lawlessness and order into a rollicking yarn whose prose bounces across the page like a getaway car through a wheat field. -PETER PLAGENS

TECHNOLOGY

BALKANS

REBUILT RUINS

OV'::\'lAYBETHE

time to travel to Bosnia and HerlCgovina, ravaged by civil war in the 1990s. The beautiful Old Bridge in Mostnr, destroyed by shelling, hasjust reopened, connecting the Croat and Muslim sides of the city. i\nd Sarajevo, under siege for 1,395 days, is nov,,' buzzing with energy. SEE Orthodox cathcdrals, Roman Catholic churches and mosques standing side by side. Hike the hills above Sarajevo \vith Green Visions (greonvisions.ba). Or head to

the War Museum 1unnc}, a replica of the SOO-meter

supply-transport tunnel dug beneath the airpOIt. EAT at the underground RestaurantJez, offering Balkan meat specialties and one of the city's best wine lists. Inat Kuca, on the scenic Miljacka River, serves up yummy spinach pie. STAY at the Holiday Inn, the only functioning hotel during the war. The Guest House Halvat (www.halvat.com.ba) has five cozy rooms. SHOP in Sarajevo's old Thrkish quarter for coffee sets or engraved grenade-shell -GINANNE BROWNEll casings.

YOUR NEXT DVD PLAYER BY PETER SUCI U

~TTRODUCED

.... . . ...... .

11\

1997, the DVD format has reshaped the way we watch movies at home. Now that basic DVD players cost well Wlder S 100, many movie buffs have one for every TV in the house. But for people with a sophisticated home..~ theater system, it makes sense to look into pricier models thatofferadvanoed features and superior ,~dco. These players do a lot more than show movies. The Toshiba RS-TX20 ($600, toshiba.com) is basically a TV production studio in a box. It contains a 120GB hard-disk drive and TiVo se['\~oe (subscription optional) for recording programs. And it Co;'1n record DVDs as well as play them. That means you can make DVDs of your favorite movies and shows. There's even a video input upfront, which lets you easily transfer camcorder footage to the hard drive or directly to a DVD. For those with large libraries ofVHS home movies, the Pioneer DTR-500 ($499, pioneer electronics.com), available in September, will make the transition from analog to digital simple. This unit even lets you record !Tom a DVD to a VH S cassette. Why would you ,..rant to do that? So your summer festivities can be savored by your less digitally

....'

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enabled fri ends and relatives. Sen"ng double duty as a fivedisc DVD/C D changer, Sony's DVP- NC675P ($150, sonystyle .com), avai lable in August, features progressive-scan output for improved picture clarity and playback suppo rt for the Super-Audio CD (SA-CD) format. In fact, it plays almost ~ o every music fonnat you can think of: DVD R/ RWand even Y!P3 music tracks on CDR/ RWdiscs. We also liked the slim, multifonnat Yamaha DVD-S150D ($450, yamaha.com). It's comp<,tible "iUl both Ule DVDAudio and Super-Audio CD

;8g

multichann el -music~pl ayback

fOI111ats. Yamaha's model also features Faroudja DeDi processing, which helps eliminate jagged edges that often appear

during DVD mO\;e playback. v\~len you hit the road later this summer or take to the skies this fall, the Panasonic DVDLS55 ($500, panasonic.com) will make long trips easier to endure. This portable player features a 17.7cm-'\-ide screen LCD display, which ca n be rotated for easy ,~ewing. \\/ith extended battely life of up to 10 hours, the LS55 can keep you entertained even when you get rerouted through Frankfurt. If you run out of movies to watch, the Panasonic also plays D\I])-Audio discs and has an FM-radio tuner. Taking a D\I]) player on the road doesn't mean you'll have to squint the whole time, either. The Samsung L1200 ($1 ,200, samsungusa. com) is a mere 2.54cm thick for easy transport but features a 30.7cm \-,~de -

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screen high-resolution LCD display. And since this larger screen allows for multiple viewers, the player even has three headphone jacks so you can share the cinematic experience. For the discount flyer, Audiovox's 01501 ($300, audiovox), "vith 14.7cm widescreen LCD display, not only lets you skip the edited airline moy ___ but also supports cu and M1'3 playback. When you land you can catch up on some local TV ",th Toshiba's combo DVD and portable Tv. The SOP5000 ($800, toshiba.com ) has a large full-frame 38.lcm LCD screen and DVD drive that sup{Xlrts a range offonnats indudingDVD-R/RW, MI'3, WMA and evenJPEG. An optional battery pack ""m let you take it on the go. So kick back and plug in!

UNCORKED I PORTUGUESE WINE P ortu gal has long been known for sweet port and simple r o se. But today's dri nkers prefer dry table w ines, so P o rtuguese w i n e produc ers a re addi ng new reds to their repertoire. Most are m a de from Indigenous grapes, giving them d i stincti ve f lavors a t a re asona ble price. Score/price

Quinta do Vale Meao Douro 2000 This stunning red, one of Portugal's best, has robust flavors of dark plum, cherry and spice. It needs a few years in the cellar. Quinta do Portal Tinta Roriz Duoro 2000 Tinta Rorizcalled Tempranillo in Spain-yields this seductive wine with aromas of blueberries and red fruit flavors. Casa Santos Lima Alicante Bouschet Estremadura 2000 This medium-bodied red has good structure and intensity. Plus, it's a great value.

luis Pato Baga Beiras Casta 2001 Winemaker Palo is a Portuguese rising star. This red, from the Baga grape, offers cherry, currant and biNersweet chocolate notes. Eborae Vitis e Yinus Alentejo Singularis 2002 The Alentejo region produces many val ue wines. This one has plum flavors and is a fine match with grilled meats.

Wine Specrawr

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Wine Spectator rates wines on the blind-tasted. Prices are those bV producers or importers. For more information visit winespectator.com.

LITERARY TOURS

HEALTH

MYSTERY SOLVED

EYtROBOT SUnGERY

EADERS OF ALEXAN-

der McCall Smith's popular mystery series "The No.1 Ladies' Detective Agency'" knO\\' Bots\vana as a principled, easygoing country where justice al\\'ays triumphs. Nmv they can see firstJland the places where Smith's "traditionally built" heroine, Mma Ramotswe, solves mysteries using a blend ofintuition, common sense and plenty of red-bush tea. A company called Africa Insight

M MOCHUOI: Atraditional home

to sell him a chicken he didn't want and who didn't give up until he had it in his hands. Fans can also see the kind of home Ramotswe was born in, the railway crossing where her mother died and the orphan (www.africalnsight.com ) farm where she adopted r_ -':... :~~ "," tvV'o children. And no tour now takes fans to ..., , Ramots"V'e's ancestral --:.::-. is complete without a cup home, in Mochudi, and of tea on the terrace of the the exact spot where President Hotel, where Smith met the woman the detective often who inspired the characponders her cases. -HENK ROSSOUW ter: a vill ager who tried

NE WSWE EK A UGUST 2, 2 0 04

ORE THAN 8 MIL-

lion people have had Laser Assisted In-Situ Keratomeliusis (better known as Lasik) surgery to correct their vision. The operation is considered safe, but a number ofcomplications-such as blurriness, night glare and halos - can occur. Most problems crop up in the first part ofLasik treatment, when a small metal blade called a microkeratome is used to slice open a flap in the cornea. Now a new blade1ess form ofLasik is being marketed globally by IntraLase. which claims its "all-laser'" technique is safer and 100 times more accurate than the blade. Doctors say the In-

traLase procedure has never caused a deep, invasive cornea] incision. Plus, clinical studies indicate that more patients using TntraLase achieve 20/20 vision than those using the traditional method. It may cost a few hundred dollars more, but when it comes to good vision the advantage seems clear. -SANOY LAWRENCE EDRY

STYLE

TAKE IT WITH YOU

ONE ARE THE DAYS

of tossing a wallet and keys into a petite purse. Thday's bags have to equip us for the gym, the office, the playground and the dinner party. TIP SHEET prefers giant totes like these: Coach's largest tote IS a colossaISl-by-37.S-by-17em ,vith a water-resistant lining, perfect for lugging post-workout wear ($228; coach.com ). With pockets inside and out, there's a spot for everything in Francesco Biasia's 3S-by-32-by1Iem Islanda tote ($340; biasia .com for stores). Ripstop nylon makes LeSportsac's 30-bY-47-by-13cm Boat Tote lightweight-until you fill it up, of course ($60 to $78; lesportsac.com). -SUE CAPORLINGUA

Still on the Barricades ERNARDO BERTOLUCCI HAS BEEN MAKING

provocative films for more than four decades. His latest movie, "The Dreamers," is no exception. It details the sexual awakening of a young American who moves in with a troubled girl and her brother in Paris during the protests of1968. Rated NC-17, it's one ofjust a handful offilms released in the United States this year to earn the "adults only" stamp ITom the Motion Picture Association of America. The recent release of a DVD version of the movie comes in the heat of the U.S. presidential campaign, whcn Hollywood's

me about that scandal with JanetJackson because she had shown a nipple on TV.

the Republican right. Still, as Michael Moore's "Fahrenheit 9/ 11" has demonstrated, such publicity often serves to raise interest, rather than diminish it. BCltolucci spoke by pho ne frorn Rome \,,;th NEWS\\-lEEK's Jennifer Barrett. Excerpts :

What did you think of that? I said , "Where is the problem?"They said, "Oh, the fami ly \\'as around the TV, even the children." And I tried to e:x.-plain that the children, among everybody, are the oncs who are most familiar with the nipple because it has only been a few years since they have been on their mother's nipple! It's a very puritanical country you live in.

BARRETT: There's been a lot of controver-

Do you see a double standard in the United

moral "depra\>;ty" is often a favorite topic of

sy over the sex scenes in "The Dreamers." How did you persuade your U.S. distributor to keep them in?

BERTOLUCCI: In the begin ning, Fox Searchlight decided they couldn't come out with the NC-17 rating because they were claiming that no Holl)'\vood distribu-

tors wou ld [take on the film). So there were two or three months of major anxiety, and then it was finally relieved by a decision to break this kind of secret law and to come out \ ..,ith it as NC-17. I think that was important, because there arc a num ber of movies that are not American - what in Hollywood th ey call "the rest of the world"- that cou ld rarely be seen just because they have this major thing that they are movies for ad ults.

There is a school of violence in movies, and it is, for me, boring because I can see the tricks. But for children it can be terrifying.

choosing if they want to go straight to hell [laughs] or if they aregrmvn-ups and can

States in the way thatthe MPAA evaluates violence and sex in movies? In many movies it is pure exploitation of \~olence. When you saw violence in an old American \Vestem mQ\~e or action movle, it was often justified. But now there is a schoo l of violence in movies, and it is, for me, boring because I can see all the tricks. But for children it can be terrifying. And I think it creates a sense of emulation much more than sex does.

decide for themselves. I am still against any kind of censorship. Up to age 12 or J3 there must be some protection [for viewers], but it's horrible "iolence that can shock more than sex. At the opening of my film, I remember everybody was asking

You've been critical of Hollywood in the past, calling it a "monoculture." Do you still feel that way? A monocuiturc is not only l-loIlY\1I"ood, but Americans trying to export democracy. I

Then why are there two DVD versions-the original and a toned-down R-rated version? The DVD audience has the chance of

don't think you can in any way exp0l1 culture \\~th gUll s or tanks. I th ink that I used to love Holly..vood movies. I remember great p hases and moments. But, unfortunately, now is not the moment. Your film re-enacts the Paris protests of 1968, which started with students demonstrating against the government's closure of the Cinematheque Fran~aise. Do you see any similarities to current events? 1 think that, for example, when [Henri] Langlois was fired [as director of the Ci nematheque Franc;aise], it is somethi ng that cou ld happen today. :\ nd I would be very curious to sec how the people reacted. r wonder if you would have a riot today. I'm not sure people feel so passionately about film anymore. but there have been massive protests around the globe over the past year against the war in Iraq. Yes, it's very encouragi ng. There are still young people in the world whose brains have not been atrophied by television. That is a good sign. But if you think of the majority, J don't th ink you have the same lcind of excitement in the youth today that there was in 1968- 01' in general in the 1960s. Were the 1968 protests successful?

I remember life before 1968. and 1can see the incredible changes. Before 1968, ow' life was fu ll of authority- all authoritarian figu res.

After 1968, you didn't have timt because people didn't accept it. The people who weren't there don't know rhat a lot has been done.l feel it is a form of a rcformist position now to 5<.1.y that 1968 doesn't count. I t had a great importance and resonance in our lives. Was that part of the message of the film? I don't film messages. I let the post oflice take care of those. _ NEWSWEEK AUGUST 2, 2004

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