Monday, Dec. 26, 1988

Time

18

COVER: Arafat finally speaks the words, and Washington responds

After the P. L. O. leader accepts Israel and rejects terrorism, the U. S. makes a first momentous contact. But will the dialogue raise expectations that cannot be fulfilled? -- How Shultz and Arafat inched toward each other under pressure from European allies, moderate Arabs, the Soviet Union -- and George Bush.

32

WORLD: Gorbachev feels the political aftershocks

In Armenia the search for victims goes on as foreign aid pours into the Soviet Union. -- TIME Moscow bureau chief John Kohan, after a harrowing flight aboard the first U. S. relief plane to reach the stricken region, meets Armenians who are more suspicious than ever of the Kremlin. -- Negotiators reach a historic agreement aimed at independence in Namibia and peace in Angola.

43

IMAGES: The most arresting pictures of 1988

A 24- page gallery presents Olympic highs and election- year lows, triumphs and tragedies, and an heir all too apparent. -- Farewell to Christina and Carl, Josh and Georgi, plus the Big Enchilada and the Bavarian Bull.

68

BUSINESS: Jet builders are zooming

As global passenger volume grows, airlines will need hundreds of new aircraft. Result: Boeing, Airbus and McDonnell Douglas have booked a record $43 billion in orders this year.

72

INTERVIEW: William Crowe on the Soviets

The Chairman of the Joint Chiefs of Staff sees promise in Gorbachev' s military reductions, muses on being a soldier without a war, and talks about running the Pentagon.

79

LIVING: Pool goes upscale, uptown and uppity

After decades behind the eight ball, pocket billiards is finally back in style, and from Boston to Dallas yuppies are leading the way to the tables and plush new halls.

81

RELIGION: Anglicans split over first woman bishop

As Boston- bound Barbara Harris nears formal endorsement for the hierarchy, a worldwide crisis is brewing. -- A Cardinal revives the debate over condoms and AIDS.

82

BEHAVIOR: Gone to the mall; be back later

Retailers love them, but compulsive shoppers don' t love themselves. They voraciously fill up closets and shelves but wind up feeling empty inside.

84

ART: An escape to the glory of Renaissance Siena

The new exhibit of 15th century narrative painting at the Metropolitan Museum of Art is a connoisseur' s delight and a welcome respite from the brutish realities of modern life.

8 Letters

13 Critics' Choice

14 American Scene

76 Books

78 Video

83 Cinema

86 Essay

Cover: Photograph by William Coupon