News Digest August 8-14

By Christopher John Farley, Alexandra Lange, Erik Meers, Michael Quinn, Sidney Urquhart, David Van Biema

NATION

Papal Visit

Pope John Paul II, here to lead the Roman Catholic Church's World Youth Day celebration, did not leave the tarmac at Denver's airport before stating his differences with the man who met the plane. Bill Clinton, who supports abortion rights, stood impassively behind the Pontiff as he exhorted a small crowd, "If you want equal justice for all ... then, America, defend life!" Clinton took it gamely, pronouncing the speech "great," and the two retreated for a private talk, which aides said centered on Bosnia.

More Cops, Fewer Guns

Clinton backed a crime-fighting bill that would mandate a five-day waiting period for gun purchasers, provide $3.4 billion to put 50,000 more police on the street nationwide -- an 8% increase -- and limit the number of appeals that may be filed by death-row inmates. Clinton also announced Executive Orders suspending the import of assault-style handguns and tightening licensing requirements for gun dealers.

Babbitt's Redemption

Interior Secretary Bruce Babbitt announced that the Administration would raise the fees for ranchers who graze livestock on federal land. Last February Clinton undercut Babbitt by trading away a similar increase to gain the support of several Western Senators for his budget. The fees will now rise from $1.86 to $4.28 per head of cattle, still below the $5 to $15 charged on private land. Fee hikes may also loom on other federal lands.

Ron Brown Investigated

The FBI is investigating allegations that Commerce Secretary Ron Brown agreed to accept $700,000 to press for the end of the U.S. trade embargo against Vietnam. As first reported in U.S. News & World Report and confirmed to Time by law-enforcement sources, a Florida businessman named Ly Thanh Binh claims a former associate of his boasted of enlisting Brown's aid shortly after he was nominated as Secretary. The FBI took the claims seriously enough to conduct a field investigation, but many of the case's facts remain unresolved, and no evidence has been presented to a grand jury. Brown categorically and unequivocally denied that he had had any dealings with Vietnam's citizens or its government.

Foster's Cry of Pain

The Justice Department released the contents of a note that White House aide Vincent Foster wrote before committing suicide last month. In it, Clinton's lifelong friend made accusations against the Republican Party, the White House ushers' office, the FBI, the press in general and the Wall Street Journal in particular. Some of the allegations are now under investigation. Foster's most damning claim was against Washington itself. "Here ruining people is considered sport," he wrote.

"Shali's" Promotion

Clinton nominated four-star Army General John Shalikashvili, a native of Poland who arrived in America at age 16, to succeed Colin Powell as Chairman of the Joint Chiefs of Staff. In his current post as a NATO commander, Shalikashvili has been critical of U.S. inaction in Bosnia.

With Friends Like These ...

The National Security Agency reluctantly made public an immense and successful effort by the U.S. to spy on its World War II allies. The documents, known as the "Magic intercepts," are decodings of the secret messages of 33 other nations, including France, Denmark, Mexico and the Netherlands. Britain and the Soviet Union were not represented.

Pretty Woman

Appearing at her arraignment on pandering and drug charges in Los Angeles, Heidi Fleiss, the alleged madam to the stars, spoke only one word -- she answered yes when asked if she realized that she had waived a hearing of the counts against her. She is pleading not guilty to all charges. The case will resume with preliminary hearings on Sept. 10; Fleiss's black book remains in the custody of the D.A.

WORLD

Americans Die in Mogadishu

As Somali warlord General Mohammed Farrah Aidid escalated his assaults against U.N. peacekeepers early last week, four U.S. soldiers were killed when their humvee all-purpose vehicle was blown up by a remote-control bomb. An outraged President Clinton vowed to take "appropriate action" that might include sending in "special forces and other creative military operations" to hunt down Aidid. But Senate Republican leader Bob Dole urged the Administration to review and possibly scale back its military presence in Somalia.

Pullback over Sarajevo

After stern warnings from the U.S. and nato to end the "strangulation" of Sarajevo, Bosnian Serb leaders announced a pullback from two mountain peaks over-looking the city. By Saturday, the withdrawal was almost complete and peacekeepers were patrolling the area. Bosnian President Alija Izetbegovic said he would rejoin negotiations in Geneva this week -- if the Serbs stick to their agreement.

Old Sake in New Bottles?

Japan's new Prime Minister, Morihiro Hosokawa, is practicing both new- and old-style politics. His newly formed Cabinet reflects the continuing power of the recently ousted Liberal Democratic Party in that its most important ministers are former members of the L.D.P. But Hosokawa has also told the press he will step down if he cannot pass reform legislation. In a rare admission for a Japanese official, Hosokawa acknowledged his country's guilt in World War II: "I myself think it was a war of aggression," he said, "a war that was wrong."

More Feints in Nigeria

In another in a series of moves to delay relinquishing power, General Ibrahim Babangida, Nigeria's longtime dictator, has said he will form an "interim" government of soldiers and civilians instead of restoring a civilian government on Aug. 27 as he promised. In a strong, silent demand that the general recognize the results of the June election, which was apparently won by his former friend Moshood Abiola, virtually the entire capital of Lagos shut down for a three-day strike. Abiola was in Washington hoping to persuade the U.S. to pressure Babangida to step down.

BUSINESS

Interest Rates Keep Falling

With the economy still sluggish, the interest rate for 30-year Treasury bonds reached a historic low of 6.46%.

B.C.C.I. Bust

After five months of testimony, a New York jury acquitted attorney Robert Altman on the four remaining counts of engaging in a conspiracy to defraud bank regulators and the public in the case of the Bank of Credit & Commerce International's secret takeover of First American Bankshares Inc. of Washington. Said Altman: "This is a prosecution that never should have been brought."

Fares Were Fair

Taking less than four hours to reach a decision, a Texas jury cleared American Airlines of charges of "predatory pricing" in last summer's airfare wars. The victory cleared the way for more of what American's CEO Robert Crandall called "continued vigorous price competition." Meanwhile TWA received court permission to emerge from bankruptcy and immediately announced a celebratory two-for-one ticket sale.

MEDIA & THE ARTS

Rockin' Docent

Cleveland's Rock and Roll Hall of Fame chose as its new director a man unassociated with rock but familiar with the public spotlight: Dennis Barrie. His previous job was director of the Contemporary Arts Center in Cincinnati, and while there he was charged with obscenity for a controversial show of Robert Mapplethorpe photographs (Barrie was cleared). "I have a high-culture background," said Barrie, but pop culture "is one of the most potent forces in the world."

Now, the Jessica TV Movie

ABC will start filming its version of the Baby Jessica story this week in cooperation with her custodial parents, Jan and Roberta DeBoer, but without consulting her biological mother and father, Dan and Cara Schmidt. The Schmidts, who won custody, have thus far turned down all offers for their story. They say, however, that they may make a public response to the ABC broadcast.