Time

28

COVER: Mikhail Gorbachev pushes the Soviet Union toward a second revolution

Long used to icy adversaries in the Kremlin, Americans must now confront a vigorous and imaginative Soviet leader. He is bent on transforming his muscle- bound but backward empire into a modern state able to hold its own in the global marketplace of goods and ideas. There is reason to wish him well, but also reason for skepticism. See WORLD.

NATION: An admiral walks the plank, taking blame for the Iran- contra diversion

By claiming he did not tell the President, John Poindexter lifts some pressure off Ronald Reagan. But his testimony raises questions: Is it credible? Can policies succeed when responsibility stops short of the Oval Office? -- Oliver North' s pleas for the contras revive efforts to win more U. S. aid. -- An administrator who inspires creativity, Michael Dukakis seeks the presidency.

62

SHOW BUSINESS: Artists fight AIDS with benefits, elegies and quiet heroism

Madonna gives a concert that raises $400,000 for AIDS research. The same night, friends of Playwright Charles Ludlam, dead at 44, pay tribute to the "funniest man in America." AIDS has decimated the artistic community. Now artists are fighting back. They write AIDS plays and songs, give benefit concerts and, for those with the disease, face the future with grit and gallantry.

46

World

- The embassy war between Paris and Tehran threatens to spiral out of control. -- After 38 years, Taiwan lifts martial law.

50

Economy & Business

Riding the bull: investors learn how to play a volatile market. -- An Australian raider closes in on Texaco. -- Probing Delta' s foul- ups.

59

Press

A startling front- page correction is one sign of how Executive Editor Max Frankel is putting his stamp on the New York Times.

60

Behavior

Pit bulls are not bad dogs, but sadistic owners are turning the strong- jawed canines into a breed of dangerous killers.

61

Law

The frustrating manhunt for the Green River Killer drags on in Seattle. -- Are the Feds out to get Author Norman Mailer?

64

Books

Mysteries, short stories, romances and first novels make up an all- fiction fiesta of summer reading for hammock, porch and beach.

74

Dance

The Bolshoi Ballet brings its bravura style to the U. S. after an eight- year absence, but classical standards have slipped.

76

Essay

First- magnitude fame comes to Ollie North during the Iran- contra hearings, but its demystifying decay to celebrityhood is inevitable.

6 Letters

68 Computers

69 Milestones

70 Food

71 People

75 Cinema

Cover: Illustration by Skip Liepke