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U.S. to Talk in North Korea
American officials will travel to Pyongyang this weekend for technical discussions as a very preliminary step toward establishing mutual diplomatic recognition. Meanwhile, Kim Jong Il, the communist leader expected to succeed his father as North Korea's absolute ruler, invited former President Jimmy Carter to mediate talks concerning Pyongyang's nuclear program, a prospect not favored by the Clinton Administration.
China to Renew Rights Talks
Beijing agreed to renew human-rights talks with Washington, even as Chinese authorities continued their clampdown on dissidents, placing many under effective house arrest. Nevertheless, Commerce Secretary Ron Brown, touring China with 24 American business executives, hailed the resumption of talks as proof of "the wisdom of the policy" of separating human rights from trade in dealing with China.
Bosnian Serbs Reject Peace
As expected, Bosnian Serbs voting in a referendum overwhelmingly rejected an international peace proposal. More than 90% opposed the plan, which would have given the Serbs 49% of the former Yugoslav republic, forcing them to give up about a third of the territory won during their 29-month war against Bosnia's Muslims. As a kind of perverse grace note, the Serbs stepped up a six-week-old campaign of renewed ethnic cleansing in northern Bosnia.
BUSINESS
Defense-Industry Merger
In the most significant deal between defense contractors since the end of the cold war, the Lockheed Corp. and the Martin Marietta Corp., the nation's second and third largest weapons makers, have proposed a $10 billion merger that would make the new company the country's biggest military contractor. Analysts saw the deal as an effort to increase efficiency and cut costs -- and jobs -- in the face of an ever shrinking defense industry.
Telecom Merger Goes Bust
Attempts at creating a nationwide wireless network came to a halt when MCI Communications Corp. withdrew its plan to invest $1.3 billion for a 17% stake in Nextel Communications Inc. MCI could not reconcile its differences over the prospect of a 21% investment in Nextel by a third company, Motorola Inc. That investment would have provided Motorola with veto power over future deals and reduced MCI's share from 17% to about 12%.
Network for Sale?
Numerous reports surfaced that Time Warner Inc. was negotiating with General Electric, NBC's parent company, about the possible purchase of all or part of the network. Government regulation of the television industry -- especially regarding cable systems like those owned by Time Warner -- would make almost any kind of deal problematic. Both companies refused to comment.
SCIENCE
Another California Quake
A strong earthquake measuring 7.2 on the Richter scale struck about 200 miles north of San Francisco on Thursday. The epicenter was offshore in the Pacific Ocean, and while it made buildings sway and groceries fall off shelves, there were no injuries and no major damage. A smaller quake in the same area two years ago hurt 94 people and did $51 million in damage.