( S ( NP-SBJ ( DT The ) ( JJ British ) ( NNS balance-of-payments ) ( NNS statistics ) ) ( VP ( VBP show ) ( SBAR ( IN that ) ( S ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-1 ( DT the ) ( JJ top ) ( NN tax ) ( NN rate ) ) ( VP ( VBD was ) ( VP ( VBN cut ) ( PP-CLR ( TO to ) ( NP ( CD 40 ) ( NN % ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN flow ) ( RB abroad ) ) ( PP ( IN of ) ( NP ( JJ British ) ( NN capital ) ) ) ) ( VP ( VBD slowed ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 50 ) ( CD billion ) ) ( NNS pounds ) ) ( PRN ( NP ( NP ( QP ( CD 79 ) ( CD billion ) ) ) ( PP ( IN at ) ( NP ( DT the ) ( JJ current ) ( NN rate ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1988 ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 93 ) ( CD billion ) ) ( NNS pounds ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) ) ) ) ) )

The British balance-of-payments statistics show that after the top tax rate was cut to 40 % the flow abroad of British capital slowed to 50 billion pounds 79 billion at the current rate in 1988 from 93 billion pounds in 1986


( S ( NP-SBJ ( NP ( DT This ) ( NN change ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ British ) ( NN capital ) ( NN account ) ) ) ) ( VP ( VBD required ) ( NP ( NP ( NP ( DT an ) ( VBG offsetting ) ( NN change ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN trade ) ( NN account ) ) ) ) ( NP ( NP ( DT a ) ( NN change ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD could ) ( RB not ) ( VP ( VB be ) ( VP ( VBN prevented ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG pegging ) ( NP ( DT the ) ( NN currency ) ) ) ) ) ) ) ) ) ) ) ) ) )

This change in the British capital account required an offsetting change in the trade account a change that could not be prevented by pegging the currency


( S ( NP-SBJ ( NNP Nigel ) ( NNP Lawson ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( NN victim ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ immense ) ( NN confusion ) ) ( PP-LOC ( IN in ) ( NP ( NN thought ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( JJ characteristic ) ( PP ( IN of ) ( NP ( JJ Western ) ( JJ financial ) ( NNS circles ) ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( CD 1980s ) ) ) ) ) ) ) ) ) ) ) )

Nigel Lawson was a victim of the immense confusion in thought that has been characteristic of Western financial circles during the 1980s


( S ( NP-SBJ-1 ( DT The ) ( ADJP ( RBS most ) ( JJ important ) ) ( NNS governments ) ) ( VP ( VBP have ) ( VP ( VBN ignored ) ( NP ( NP ( DT the ) ( NN role ) ) ( PP ( IN of ) ( NP ( JJ low ) ( NN tax ) ( NNS rates ) ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG attracting ) ( NP ( JJ real ) ( NN capital ) ( NN investment ) ) ) ) ) ) ( S-ADV ( ADVP ( RB instead ) ) ( VP ( VBG emphasizing ) ( NP ( JJ financial ) ( NNS flows ) ) ( PP ( IN in ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( JJ high ) ( NN interest ) ( NNS rates ) ) ) ) ) ) ) ) ) )

The most important governments have ignored the role of low tax rates in attracting real capital investment instead emphasizing financial flows in response to high interest rates


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ has ) ( VP ( VBN led ) ( NP ( PRP them ) ) ( PP-CLR ( IN in ) ( NP ( DT a ) ( ADJP ( JJ fruitless ) ( CC and ) ( JJ destructive ) ) ( NN policy ) ( NN circle ) ) ) ) ) )

This has led them in a fruitless and destructive policy circle


( SINV ( ADVP-TMP ( RB First ) ) ( VP ( VBZ comes ) ) ( NP-SBJ-2 ( JJ monetary ) ( NN expansion ) ) ( S-CLR-4 ( VP ( TO to ) ( VP ( VB drive ) ( PRT ( RP down ) ) ( NP ( NP ( NP ( DT the ) ( NN currency ) ( POS 's ) ) ( NN value ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( VBD was ) ( VP ( VBN pushed ) ( PRT ( RP up ) ) ( PP ( IN by ) ( NP-LGS ( JJ tax-rate ) ( NN reduction ) ) ) ) ) ) ) ) ) ) ) )

First comes monetary expansion to drive down the currency 's value that was pushed up by tax-rate reduction


( S ( ADVP-TMP ( RB Then ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN currency ) ) ( VP ( VBZ falls ) ) ) ) ( NP-SBJ-2 ( NN interest ) ( NNS rates ) ) ( VP ( VBP are ) ( VP ( VBN raised ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB attract ) ( NP ( JJ financial ) ( NNS flows ) ) ( SBAR-PRP ( IN in ) ( NN order ) ( S ( VP ( TO to ) ( VP ( VB stabilize ) ( NP ( DT the ) ( NN exchange ) ( NN rate ) ) ) ) ) ) ) ) ) ) ) )

Then when the currency falls interest rates are raised to attract financial flows in order to stabilize the exchange rate


( S ( S ( NP-SBJ ( DT This ) ( NN policy ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB totally ) ( JJ mindless ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NNP Sir ) ( NNP Alan ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ correct ) ( S ( VP ( TO to ) ( VP ( VB point ) ( PRT ( RP out ) ) ( NP ( PRP$ its ) ( NNS deficiencies ) ) ) ) ) ) ) ) )

This policy is totally mindless and Sir Alan is correct to point out its deficiencies


( S ( NP-SBJ-1 ( NP ( NNP Britain ) ) ( CC and ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NNP Europe ) ) ) ) ) ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB reconsider ) ( NP ( NP ( DT the ) ( NNS prospects ) ) ( PP ( IN for ) ( NP ( JJ European ) ( NN integration ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NN light ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ possible ) ( NN reunification ) ( CC and ) ( NN neutralization ) ) ( PP ( IN of ) ( NP ( NNP Germany ) ) ) ) ) ) ) ) ) ) ) )

Britain and all of Europe need to reconsider the prospects for European integration in light of the possible reunification and neutralization of Germany


( S ( NP-SBJ ( NP ( DT A ) ( VBN unified ) ( NNP Germany ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD remained ) ( PP-LOC-PRD ( IN within ) ( NP ( DT the ) ( JJ Western ) ( NN alliance ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB give ) ( NP ( NNP Germany ) ) ( NP ( NP ( PDT such ) ( DT an ) ( VBG overshadowing ) ( NN position ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT all ) ( JJ other ) ( NNS members ) ) ( PP ( IN of ) ( NP ( DT a ) ( VBN unified ) ( NNP Europe ) ) ) ) ( VP ( MD would ) ( VP ( VB become ) ( NP-PRD ( NP ( NNS vassals ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ German ) ( NN state ) ) ) ) ) ) ) ) ) ) ) )

A unified Germany that remained within the Western alliance would give Germany such an overshadowing position that all other members of a unified Europe would become vassals of the German state


( S ( SBAR-ADV ( IN Unless ) ( S ( NP-SBJ ( DT the ) ( NNP Soviet ) ( NNP Union ) ) ( VP ( VBZ collapses ) ) ) ) ( NP-SBJ-1 ( JJ German ) ( NN reunification ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB require ) ( NP ( NP ( NNP Germany ) ( POS 's ) ) ( NN neutralization ) ) ) ) ) ) ) )

Unless the Soviet Union collapses German reunification is likely to require Germany 's neutralization


( S ( NP-SBJ ( NP ( DT The ) ( NNS implications ) ) ( PP ( IN for ) ( NP ( NP ( NNP Britain ) ) ( NP ( NNP France ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( NNP Europe ) ) ) ) ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG having ) ( S ( NP-SBJ-1 ( PRP$ their ) ( NNS currencies ) ) ( VP ( VBN tied ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ economic ) ( NN policy ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ neutral ) ( NN country ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP need ) ( NP ( VBG considering ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP judge ) ( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Lawson ) ( POS 's ) ) ( NN resignation ) ) ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ unfortunate ) ) ) ) ) ) ) ) ) )

The implications for Britain France and the rest of Europe of having their currencies tied to the economic policy of a neutral country need considering before we judge Mr. Lawson 's resignation to be unfortunate


( S ( PP ( IN In ) ( NP ( DT the ) ( JJS least ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( MD must ) ( VP ( VB recognize ) ( NP ( NP ( DT the ) ( NN futility ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB use ) ( NP ( JJ exchange-rate ) ( NN intervention ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB offset ) ( NP ( NP ( DT the ) ( NNS effects ) ) ( PP ( IN of ) ( NP ( JJ tax-rate ) ( NN reduction ) ) ) ( PP ( IN on ) ( NP ( NN capital ) ( NNS flows ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In the least we must recognize the futility of trying to use exchange-rate intervention to offset the effects of tax-rate reduction on capital flows


( S ( NP-SBJ ( NNP Mr. ) ( NNP Roberts ) ) ( VP ( VBD was ) ( NP-PRD ( JJ assistant ) ( NNP Treasury ) ( NN secretary ) ) ( PP-LOC ( IN under ) ( NP ( NNP President ) ( NNP Reagan ) ) ) ) )

Mr. Roberts was assistant Treasury secretary under President Reagan


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNP General ) ( NNP Electric ) ( NNP Co. ) ( POS 's ) ) ( NN rail-car ) ( NN leasing ) ( NN unit ) ) ( VP ( VBD completed ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 178.5 ) ( CD million ) ) ) ( NN purchase ) ) ( PP ( IN of ) ( NP ( JJ similar ) ( NNS businesses ) ) ) ( PP ( IN from ) ( NP ( NP ( NNP Leucadia ) ( NNP National ) ( NNP Corp. ) ) ( CC and ) ( NP ( NP ( NNP Brae ) ( NNP Corp. ) ) ( ADJP ( JJ 74%-owned ) ( PP ( IN by ) ( NP ( NNP Leucadia ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS sellers ) ) ( VP ( VBD said ) ) )

General Electric Co. 's rail-car leasing unit completed the 178.5 million purchase of similar businesses from Leucadia National Corp. and Brae Corp. 74%-owned by Leucadia the sellers said


( S ( NP-SBJ ( DT The ) ( NN buyer ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NNP GE ) ( NNP Capital ) ( NNP Railcar ) ( NNPS Services ) ) ( NP-LOC ( NNP Chicago ) ) ( NP ( NP ( NP ( DT a ) ( JJ major ) ( NN owner ) ) ( PP ( IN of ) ( NP ( NN railway ) ( NN equipment ) ) ) ) ( CC and ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP GE ) ( NNP Capital ) ( NNS operations ) ) ) ) ) ) ) )

The buyer was GE Capital Railcar Services Chicago a major owner of railway equipment and part of the GE Capital operations


( S ( NP-SBJ ( NP ( NNP Leucadia ) ) ( NP-LOC ( NNP New ) ( NNP York ) ) ) ( VP ( VBD estimated ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( NP ( NP ( NP ( DT a ) ( JJ pre-tax ) ( NN gain ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN transaction ) ) ) ( PP ( IN of ) ( NP ( QP ( CD 57 ) ( CD million ) ) ) ) ) ( PP ( VBG including ) ( NP ( NP ( PRP$ its ) ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( NNP Brae ) ( POS 's ) ) ( NN gain ) ) ) ) ) ) ) ) ) ) )

Leucadia New York estimated it had a pre-tax gain on the transaction of 57 million including its part of Brae 's gain


( S ( PP-PRP ( IN Because ) ( IN of ) ( NP ( NN tax-loss ) ( NN carry-forward ) ) ) ( NP-SBJ ( NNP Leucadia ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB escape ) ( NP ( NP ( NNS taxes ) ) ( PP ( IN on ) ( NP ( NP ( DT a ) ( JJ substantial ) ( NN portion ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN gain ) ) ) ) ) ) ) ) ) ) ) ) ) )

Because of tax-loss carry-forward Leucadia said it expects to escape taxes on a substantial portion of the gain


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( VBN estimated ) ( NN gain ) ) ( PP ( IN for ) ( NP ( NNP Brae ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( QP ( CD 15 ) ( CD million ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT a ) ( NN tax ) ( NN credit ) ) ( PP ( IN of ) ( NP ( QP ( CD 7 ) ( CD million ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS sellers ) ) ( VP ( VBD said ) ) )

The estimated gain for Brae is 15 million including a tax credit of 7 million the sellers said


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NN credit ) ) ( PP ( IN for ) ( NP ( NN income ) ( NNS taxes ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG having ) ( VP ( VBN provided ) ( NP ( NP ( JJ deferred ) ( NN income ) ( NNS taxes ) ) ( ADJP ( JJ applicable ) ( PP ( TO to ) ( NP ( DT the ) ( VBN sold ) ( NNS assets ) ) ) ) ) ( PP-CLR ( IN at ) ( NP ( NP ( DT the ) ( JJR higher ) ( NN income ) ( NN tax ) ( NNS rates ) ) ( PP ( IN in ) ( NP ( NN effect ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ prior ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS sellers ) ) ( VP ( VBD said ) ) )

The credit for income taxes is a result of having provided deferred income taxes applicable to the sold assets at the higher income tax rates in effect in prior years the sellers said


( S ( NP-SBJ ( NNP RJR ) ( NNP Nabisco ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( PRP$ its ) ( NNP Baby ) ( NNP Ruth ) ( NNP Butterfinger ) ( CC and ) ( NNP Pearson ) ( NN candy ) ( NNS businesses ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NNP Nestle ) ( NNP S.A. ) ( POS 's ) ) ( NNP Nestle ) ( NNPS Foods ) ( NN unit ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 370 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) )

RJR Nabisco Inc. said it agreed to sell its Baby Ruth Butterfinger and Pearson candy businesses to Nestle S.A. 's Nestle Foods unit for 370 million


( S ( NP-SBJ ( DT The ) ( NN sale ) ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( JJR higher ) ( NN price ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( DT some ) ( NNS analysts ) ) ( VP ( VBD had ) ( VP ( VBN expected ) ) ) ) ) ) ) ( VP ( VP ( VBZ helps ) ( S ( NP-SBJ ( DT the ) ( NN food ) ( CC and ) ( NN tobacco ) ( NN giant ) ) ( VP ( VB raise ) ( NP ( NP ( NNS funds ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NN debt ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( NNS boosts ) ( NP ( NP ( NP ( NNP Nestle ) ( POS 's ) ) ( ADJP ( CD 7 ) ( NN % ) ) ( NN share ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NN candy ) ( NN market ) ) ) ) ( PP-CLR ( TO to ) ( NP ( QP ( IN about ) ( CD 12 ) ) ( NN % ) ) ) ) ) )

The sale at a higher price than some analysts had expected helps the food and tobacco giant raise funds to pay debt and boosts Nestle 's 7 % share of the U.S. candy market to about 12 %


( S ( NP-SBJ ( DT The ) ( NN candy ) ( NNS businesses ) ) ( VP ( VBD had ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( QP ( IN about ) ( CD 154 ) ( CD million ) ) ) ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ( SBAR-2 ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD was ) ( NP-PRD ( NP ( QP ( RB roughly ) ( CD 12 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( JJ total ) ( NN revenue ) ) ( PP ( IN for ) ( NP ( NP ( NNP RJR ) ( POS 's ) ) ( NNP Planters ) ( NNPS LifeSavers ) ( NN unit ) ) ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN memorandum ) ) ( VP ( VBN distributed ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( NNP RJR ) ( POS 's ) ) ( NN owner ) ) ( NP ( NNP Kohlberg ) ( NNP Kravis ) ( NNP Roberts ) ( CC & ) ( NNP Co. ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NNS bankers ) ) ) ( NP-TMP ( JJ last ) ( NNP December ) ) ) ) ) ) ) )

The candy businesses had sales of about 154 million last year which was roughly 12 % of total revenue for RJR 's Planters LifeSavers unit according to a memorandum distributed by RJR 's owner Kohlberg Kravis Roberts & Co. to bankers last December


( S ( NP-SBJ ( DT The ) ( NNP Nestle ) ( NN acquisition ) ) ( VP ( VBZ includes ) ( NP ( NP ( DT a ) ( NN candy ) ( NN plant ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Franklin ) ( NNP Park ) ) ( NP ( NNP Ill. ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ employs ) ( NP ( QP ( IN about ) ( CD 800 ) ) ( NNS workers ) ) ) ) ) ) ) )

The Nestle acquisition includes a candy plant in Franklin Park Ill. which employs about 800 workers


( S ( NP-SBJ ( NP ( DT The ) ( NN sale ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN expected ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP KKR ) ( POS 's ) ) ( NN program ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB pay ) ( PRT ( RP down ) ) ( NP ( NP ( QP ( CD 5 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( DT a ) ( ADJP ( QP ( CD 6 ) ( CD billion ) ) ) ( NN bridge ) ( NN loan ) ) ) ) ( PP-TMP ( IN by ) ( NP ( NNP February ) ) ) ) ) ) ) ) ) ) ) )

The sale which had been expected is part of KKR 's program to pay down 5 billion of a 6 billion bridge loan by February


( S ( S ( NP-SBJ-1 ( NP ( QP ( RB Roughly ) ( CD 2 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( DT that ) ( NN debt ) ) ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB already ) ) ( VP ( VBN been ) ( VP ( VBN repaid ) ( PP-CLR ( IN from ) ( NP ( JJ previous ) ( NN asset ) ( NNS sales ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( NNP RJR ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB use ) ( NP ( NP ( DT another ) ( QP ( CD 2 ) ( CD billion ) ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( VBG pending ) ( JJ two-part ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNP Del ) ( NNP Monte ) ( NN unit ) ) ) ) ) ) ) ) ) ) ) ) ) )

Roughly 2 billion of that debt has already been repaid from previous asset sales and RJR expects to use another 2 billion from the pending two-part sale of most of its Del Monte unit


( S ( NP-SBJ ( DT That ) ( NN sale ) ) ( ADVP ( RB however ) ) ( VP ( MD could ) ( ADVP-TMP ( RB still ) ) ( VP ( VB fall ) ( ADVP-CLR ( RB through ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NN financing ) ( NNS problems ) ) ( VP ( VBP develop ) ) ) ) ) ) )

That sale however could still fall through if financing problems develop


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( JJ crucial ) ) ( SBAR-1 ( IN for ) ( S ( NP-SBJ ( NNP RJR ) ) ( VP ( TO to ) ( VP ( VB obtain ) ( NP ( JJ top ) ( NN dollar ) ) ( PP-CLR ( IN for ) ( NP ( NP ( PRP$ its ) ( JJR smaller ) ( NNS assets ) ) ( PP ( IN like ) ( NP ( DT the ) ( NN candy ) ( NNS brands ) ) ) ) ) ) ) ) ) ) )

Thus it remains crucial for RJR to obtain top dollar for its smaller assets like the candy brands


( S ( NP-SBJ ( NP ( NNP Louis ) ( NNP Gerstner ) ( NNP Jr. ) ) ( NP ( NP ( NP ( NN chairman ) ) ) ( CC and ) ( NP ( NP ( NN chief ) ( JJ executive ) ( NN officer ) ) ) ( PP-1 ( IN of ) ( NP ( ADJP ( NNP New ) ( JJ York-based ) ) ( NNP RJR ) ) ) ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( DT the ) ( NN sale ) ) ( NP-PRD ( NP ( NP ( DT a ) ( JJ significant ) ( NN step ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN divestiture ) ( NN program ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( DT a ) ( DT a ) ( JJ strategic ) ( NN divestiture ) ) ) ) ) )

Louis Gerstner Jr. chairman and chief executive officer of New York-based RJR called the sale a significant step in the company 's divestiture program as well as a a strategic divestiture


( S ( SBAR-TMP ( IN Since ) ( S ( NP-SBJ ( NNP KKR ) ) ( VP ( VBD bought ) ( NP ( NNP RJR ) ) ( PP-TMP ( IN in ) ( NP ( NNP February ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( CD 25 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN agreed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NP ( QP ( RB nearly ) ( CD 5 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NNP RJR ) ( NNS assets ) ) ) ) ) ) ) ) ) )

Since KKR bought RJR in February for 25 billion of debt it has agreed to sell nearly 5 billion of RJR assets


( S ( NP-SBJ ( NP ( NNP RJR ) ( POS 's ) ) ( NNS executives ) ) ( VP ( VBP have ) ( VP ( VBN said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( VP ( VB dispense ) ( PP-CLR ( IN with ) ( NP ( NP ( JJ certain ) ( NNS brands ) ) ( PP ( IN in ) ( ADJP ( JJ particular ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( RB n't ) ( NP-PRD ( NNS leaders ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ their ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

RJR 's executives have said they will dispense with certain brands in particular that are n't leaders in their markets


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNP RJR ) ( NNP Nabisco ) ) ( CC and ) ( NP ( NNP Planters ) ( NNPS LifeSavers ) ) ) ( VP ( MD will ) ( VP ( VB concentrate ) ( ADVP-MNR ( RBR more ) ) ( PP-CLR ( IN on ) ( NP ( PRP$ our ) ( JJ own ) ( NN core ) ( NNS businesses ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Gerstner ) ) ( VP ( VBD said ) ( NP-TMP ( NNP Friday ) ) ) )

RJR Nabisco and Planters LifeSavers will concentrate more on our own core businesses Mr. Gerstner said Friday


( S ( S ( NP-SBJ ( NP ( NNP Baby ) ( NNP Ruth ) ) ( CC and ) ( NP ( NNP Butterfinger ) ) ) ( VP ( VBP are ) ( DT both ) ( PP-LOC-PRD ( IN among ) ( NP ( NP ( DT the ) ( JJ top-selling ) ( CD 15 ) ( NN chocolate ) ( NNS bars ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( NP ( NNP RJR ) ( POS 's ) ) ( JJ overall ) ( NN share ) ) ( PP ( IN of ) ( NP ( DT the ) ( ADJP ( QP ( RB roughly ) ( CD 5.1 ) ( CD billion ) ) ) ( NN market ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( QP ( JJR less ) ( IN than ) ( CD 5 ) ) ( NN % ) ) ) ) )

Baby Ruth and Butterfinger are both among the top-selling 15 chocolate bars in the U.S. but RJR 's overall share of the roughly 5.1 billion market is less than 5 %


( S ( NP-SBJ ( NP ( NP ( NNP Nestle ) ( POS 's ) ) ( NN share ) ) ( PP ( IN of ) ( NP ( CD 7 ) ( NN % ) ) ) ( PP-TMP ( IN before ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NNS purchases ) ) ) ) ( VP ( VBZ is ) ( PP-PRD ( ADVP ( RB far ) ) ( IN below ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( NN market ) ( NNS leaders ) ( NNP Hershey ) ( NNPS Foods ) ( NNP Corp. ) ( CC and ) ( NNP Mars ) ( NNP Inc. ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBP have ) ( NP ( NP ( QP ( IN about ) ( CD 40 ) ( NN % ) ( CC and ) ( CD 36 ) ( NN % ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN market ) ) ) ) ( ADVP ( RB respectively ) ) ) ) ) ) ) ) ) ) )

Nestle 's share of 7 % before Friday 's purchases is far below the shares of market leaders Hershey Foods Corp. and Mars Inc. which have about 40 % and 36 % of the market respectively


( SINV ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ means ) ( SBAR ( S ( NP-SBJ ( NNP Nestle ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NN candybar ) ( NN business ) ) ) ( PP-MNR ( IN in ) ( NP ( DT a ) ( JJ big ) ( NN way ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Lisbeth ) ( NNP Echeandia ) ) ( NP ( NP ( NN publisher ) ) ( PP ( IN of ) ( NP ( ADJP ( NNP Orlando ) ( JJ Fla.-based ) ) ( NNP Confectioner ) ( NNP Magazine ) ) ) ) ) )

This means Nestle is now in the candybar business in a big way said Lisbeth Echeandia publisher of Orlando Fla.-based Confectioner Magazine


( S ( PP ( IN For ) ( NP ( PRP them ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ makes ) ( NP ( NP ( DT all ) ( NNS kinds ) ) ( PP ( IN of ) ( NP ( NN sense ) ) ) ) ) )

For them it makes all kinds of sense


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP 've ) ( VP ( VBN been ) ( VP ( VBN given ) ( NP ( NP ( DT a ) ( NN mandate ) ) ( PP ( IN from ) ( NP ( NNP Switzerland ) ) ) ( S-2 ( VP ( TO to ) ( VP ( VB expand ) ( NP ( PRP$ their ) ( NNP U.S. ) ( NN chocolate ) ( NNS operations ) ) ) ) ) ) ) ) ) )

They 've been given a mandate from Switzerland to expand their U.S. chocolate operations


( S ( NP-SBJ-1 ( NNP Nestle ) ( NNP S.A. ) ) ( VP ( VBZ is ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Vevey ) ) ( NP ( NNP Switzerland ) ) ) ) ) ) )

Nestle S.A. is based in Vevey Switzerland


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( JJ new ) ( NN candy ) ( NNS bars ) ) ( VP ( VBP make ) ( NP ( NP ( DT an ) ( JJ important ) ( NN contribution ) ) ( PP ( TO to ) ( NP ( NP ( PRP$ our ) ( NNP Nestle ) ( NNPS Foods ) ( NN commitment ) ) ( PP ( TO to ) ( NP ( DT this ) ( ADJP ( RB very ) ( JJ important ) ) ( JJ strategic ) ( NN unit ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP C. ) ( NNP Alan ) ( NNP MacDonald ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Nestle ) ( NNPS Foods ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Purchase ) ) ( NP ( NNP N.Y ) ) ) ) ) ) ) ) )

The new candy bars make an important contribution to our Nestle Foods commitment to this very important strategic unit said C. Alan MacDonald president of Nestle Foods in Purchase N.Y


( S ( NP-SBJ-1 ( NNP Georgia-Pacific ) ( NNP Corp. ) ) ( VP ( VBD offered ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ( NNP Corp. ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NP ( CD 58 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( CC or ) ( NP ( QP ( IN about ) ( CD 3.18 ) ( CD billion ) ) ) ) ) ) ) ) ) )

Georgia-Pacific Corp. offered to acquire Great Northern Nekoosa Corp. for 58 a share or about 3.18 billion


( S ( NP-SBJ ( DT The ) ( NN offer ) ) ( VP ( VBD capped ) ( NP ( NP ( DT a ) ( NN week ) ) ( PP ( IN of ) ( NP ( NNS rumors ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( NNP Georgia-Pacific ) ) ( NP ( DT an ) ( JJ Atlanta-based ) ( NNS forest-products ) ( NN company ) ) ) ( VP ( VBD was ) ( VP ( VBG considering ) ( S ( VP ( VBG making ) ( NP ( NP ( DT a ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NP ( NNP Nekoosa ) ) ( NP ( NP ( DT a ) ( NNS paper-products ) ( NN concern ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Norwalk ) ) ( NP ( NNP Conn ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The offer capped a week of rumors that Georgia-Pacific an Atlanta-based forest-products company was considering making a bid for Nekoosa a paper-products concern based in Norwalk Conn


( S ( S ( NP-SBJ-1 ( NP ( NNS Executives ) ) ( PP-LOC ( IN at ) ( NP ( NNP Nekoosa ) ) ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN reached ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( NP ( NNS officials ) ) ( PP-LOC ( IN at ) ( NP ( NNP Georgia ) ( NNP Pacific ) ) ) ) ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB comment ) ) ) ) ) ) )

Executives at Nekoosa could n't be reached and officials at Georgia Pacific declined to comment


( S ( NP-SBJ-1 ( NNS Analysts ) ) ( PRN ( ADVP ( RB however ) ) ) ( VP ( VBD were ) ( VP ( VBN surprised ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( DT the ) ( NN tender ) ( NN offer ) ) ( VP ( VBD appeared ) ( ADJP-PRD ( JJ unsolicited ) ) ) ) ) ) ) )

Analysts however were surprised because the tender offer appeared unsolicited


( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( RB quite ) ( DT a ) ( NN bombshell ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ-2 ( CD one ) ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN offer ) ) ( VP ( MD could ) ( VP ( VB spark ) ( NP ( NP ( DT a ) ( NN period ) ) ( PP ( IN of ) ( NP ( NN industry ) ( NN consolidation ) ) ) ) ) ) ) ) ) ) )

It 's quite a bombshell said one adding that the offer could spark a period of industry consolidation


( S ( S ( NP-SBJ-1 ( DT The ) ( CD two ) ( NNS companies ) ) ( VP ( MD would ) ( VP ( VB appear ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( JJ logical ) ( NN fit ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( PRP$ their ) ( JJ complementary ) ( NNS lines ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD described ) ( NP ( NP ( DT the ) ( NN offer ) ) ( VP ( VBG representing ) ( NP ( NP ( DT a ) ( ADJP ( CD 36 ) ( NN % ) ) ( NN premium ) ) ( PP ( IN over ) ( NP ( NP ( NNP Nekoosa ) ( POS 's ) ) ( NN market ) ( NN price ) ) ) ) ) ) ( PP-CLR ( IN as ) ( ADJP ( JJ fair ) ) ) ) ) )

The two companies would appear to be a logical fit because of their complementary lines and analysts described the offer representing a 36 % premium over Nekoosa 's market price as fair


( S ( NP-SBJ ( NNP Nekoosa ) ) ( VP ( VBD closed ) ( NP-TMP ( NN yesterday ) ) ( PP-CLR ( IN at ) ( NP ( CD 42.75 ) ) ) ( ADVP ( RB up ) ( NP ( CD 2.75 ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ) )

Nekoosa closed yesterday at 42.75 up 2.75 in New York Stock Exchange composite trading


( S ( CC But ) ( NP-SBJ ( NN industry ) ( NNS observers ) ) ( ADVP-TMP ( RB still ) ) ( VP ( VBD questioned ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNP Georgia ) ( NNP Pacific ) ) ( VP ( MD will ) ( ADVP-TMP ( RB ultimately ) ) ( VP ( VB prevail ) ) ) ) ) ) )

But industry observers still questioned whether Georgia Pacific will ultimately prevail


( SINV ( S-TPC-1 ( NP-SBJ-2 ( PRP You ) ) ( VP ( VBP have ) ( S ( VP ( TO to ) ( VP ( VB watch ) ( PRT ( RP out ) ) ( PP-CLR ( IN for ) ( NP ( NNS counterbids ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( CD one ) ( NN analyst ) ) )

You have to watch out for counterbids said one analyst


( S ( NP-SBJ ( NP ( NNP International ) ( NNP Paper ) ) ( CC or ) ( NP ( NNP Weyerhaeuser ) ) ) ( VP ( MD could ) ( VP ( VB step ) ( ADVP-CLR ( RB in ) ) ) ) )

International Paper or Weyerhaeuser could step in


( S ( NP-SBJ ( NP ( DT The ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NNP Great ) ( NNP Northern ) ) ) ( SBAR ( WHNP-1 ( NP ( DT a ) ( NN notice ) ) ( WHPP ( IN of ) ( WHNP ( WDT which ) ) ) ) ( S ( VP ( VBZ appears ) ( PP-LOC ( IN in ) ( NP ( NP ( DT an ) ( NN advertisement ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN today ) ( POS 's ) ) ( NNP Wall ) ( NNP Street ) ( NNP Journal ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( RB first ) ( JJ big ) ( NN takeover ) ( NN offer ) ) ( PP-TMP ( IN since ) ( NP ( NP ( DT the ) ( NN collapse ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 6.79 ) ( CD billion ) ) ) ( NN buy-out ) ) ( PP ( IN of ) ( NP ( NNP United ) ( NNPS Airlines ) ( NN parent ) ( NNP UAL ) ( NNP Corp. ) ) ) ) ) ( NP-TMP ( NNP Oct. ) ( CD 13 ) ) ) ) ) ) )

The bid for Great Northern a notice of which appears in an advertisement in today 's Wall Street Journal is the first big takeover offer since the collapse of a 6.79 billion buy-out of United Airlines parent UAL Corp. Oct. 13


( S ( NP-SBJ ( NP ( DT That ) ( NN collapse ) ) ( PP ( VBG following ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NNS heels ) ) ( PP ( IN of ) ( NP ( NP ( NN disarray ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ) ) ( PP ( IN for ) ( NP ( JJ high-risk ) ( JJ high-yield ) ( NNS bonds ) ) ) ) ) ) ) ) ) ( VP ( VBD cast ) ( NP-CLR ( NN doubt ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( JJ entire ) ( NN takeover ) ( NN business ) ) ) ( SBAR-ADV ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN fueled ) ( NP ( DT both ) ( NP ( NP ( JJ big ) ( NNS profits ) ) ( PP-LOC ( IN among ) ( NP ( NNP Wall ) ( NNP Street ) ( NNS securities ) ( NNS firms ) ) ) ) ( CC and ) ( NP ( NP ( JJ big ) ( NNS gains ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ( ADVP ( RB generally ) ) ) ) ) ) ) ) ) )

That collapse following on the heels of disarray in the market for high-risk high-yield bonds cast doubt on the entire takeover business which has fueled both big profits among Wall Street securities firms and big gains in the stock market generally


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NP ( NNP Georgia-Pacific ) ( POS 's ) ) ( NN stock ) ) ( VP ( VBZ has ) ( VP ( VBN outperformed ) ( NP ( DT the ) ( NN market ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( CD two ) ( NNS years ) ) ) ) ) ) ) ( NP-SBJ ( NNP Nekoosa ) ) ( VP ( VBZ has ) ( VP ( VBN lagged ) ( NP ( DT the ) ( NN market ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ same ) ( NN period ) ) ) ) ) )

While Georgia-Pacific 's stock has outperformed the market in the past two years Nekoosa has lagged the market in the same period


( S ( NP-SBJ ( NP ( NP ( NN Yesterday ) ( POS 's ) ) ( NN rise ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Nekoosa ) ( POS 's ) ) ( NN share ) ( NN price ) ) ) ) ( VP ( VBD came ) ( PP-LOC ( IN on ) ( NP ( NP ( NN volume ) ) ( PP ( IN of ) ( NP ( NP ( CD 786,700 ) ( NNS shares ) ) ( NP ( QP ( CD four ) ( NNS times ) ) ( DT the ) ( JJ daily ) ( NN average ) ) ) ) ) ) ) )

Yesterday 's rise in Nekoosa 's share price came on volume of 786,700 shares four times the daily average


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NNP Dow ) ( NNP Jones ) ( NNP Professional ) ( NNP Investor ) ( NNP Report ) ) ) ) ( NP-SBJ-1 ( NP ( NNS options ) ( NN trading ) ) ( PP-LOC ( IN in ) ( NP ( NNP Nekoosa ) ) ) ) ( VP ( VBD was ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJ heavy ) ) ( S-ADV ( VP ( VBG ranking ) ( PP-LOC ( ADVP ( RB only ) ) ( IN behind ) ( NP ( NP ( NNP International ) ( NNP Business ) ( NNPS Machines ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP UAL ) ) ) ) ( PP ( IN in ) ( NP ( NN volume ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Chicago ) ( NNP Board ) ( NNPS Options ) ( NNP Exchange ) ) ) ) ) ) )

According to Dow Jones Professional Investor Report options trading in Nekoosa was also heavy ranking only behind International Business Machines Corp. and UAL in volume on the Chicago Board Options Exchange


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( DT the ) ( NNP Value ) ( NNP Line ) ( NNP Investment ) ( NNP Survey ) ) ) ) ( NP-SBJ ( NP ( NN demand ) ) ( PP ( IN for ) ( NP ( NP ( NNP Nekoosa ) ( POS 's ) ) ( NN commodity ) ( NN paper ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN weakened ) ( S-ADV ( VP ( VBG prompting ) ( S ( NP-SBJ ( NNS earnings ) ) ( VP ( TO to ) ( VP ( VB decline ) ( PP-EXT ( IN by ) ( NP ( CD 6.6 ) ( NN % ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ( VP ( VBD ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ) ) ) ) ) ) )

According to the Value Line Investment Survey demand for Nekoosa 's commodity paper has weakened prompting earnings to decline by 6.6 % in the third quarter ended Sept. 30


( S ( NP-SBJ ( NNP Value ) ( NNP Line ) ) ( VP ( VBD added ) ( S ( UCP-ADV ( PP ( IN With ) ( S-NOM ( NP-SBJ ( NP ( NNS discounts ) ) ) ( VP ( VBG widening ) ( PP-1 ( IN on ) ( NP ( NN business ) ( NNS papers ) ) ) ) ) ) ( CC and ) ( SBAR ( IN with ) ( S ( NP-SBJ ( NP ( NN newsprint ) ) ( CC and ) ( NP ( JJ corrugated ) ( NNS shipments ) ) ) ( ADJP-PRD ( JJ flat ) ) ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP expect ) ( NP ( JJ negative ) ( NNS earnings ) ( NNS comparisons ) ) ( PP-TMP ( IN through ) ( NP ( JJ next ) ( NN year ) ) ) ) ) ) )

Value Line added With discounts widening on business papers and with newsprint and corrugated shipments flat we expect negative earnings comparisons through next year


( S ( PP ( IN By ) ( NP ( NN contrast ) ) ) ( NP-SBJ ( NNP Value ) ( NNP Line ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Georgia-Pacific ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( DT a ) ( ADJP ( RB comparatively ) ( JJ good ) ) ( NN position ) ( S ( VP ( TO to ) ( VP ( VB deal ) ( PP-CLR ( IN with ) ( NP ( VBG weakening ) ( NN paper ) ( NNS markets ) ) ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( PRP$ its ) ( NN production ) ) ( VP ( VBZ is ) ( VP ( VBN concentrated ) ( PP-LOC-CLR ( RB not ) ( PP ( IN in ) ( NP ( DT the ) ( NN Northwest ) ) ) ( CC but ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( NN South ) ) ( SBAR ( WHADVP-3 ( WRB where ) ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( MD should ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB avoid ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN cost ) ( NNS pressures ) ) ( PP ( IN from ) ( NP ( VBG rising ) ( NN wood-chip ) ( NNS prices ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

By contrast Value Line said Georgia-Pacific is in a comparatively good position to deal with weakening paper markets because its production is concentrated not in the Northwest but in the South where it should be able to avoid some of the cost pressures from rising wood-chip prices


( S ( ADVP ( RB Also ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN exposed ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN weakening ) ( NN newsprint ) ( NN business ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ strong ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ less-cyclical ) ( NN tissue ) ( NN business ) ) ) ) ) )

Also it is n't exposed to the weakening newsprint business and is strong in the less-cyclical tissue business


( S ( NP-SBJ ( NP ( DT The ) ( NN purchase ) ) ( PP ( IN of ) ( NP ( NNP Nekoosa ) ) ) ) ( VP ( MD would ) ( VP ( ADVP-MNR ( RB easily ) ) ( VB eclipse ) ( NP ( NP ( NP ( NNP Georgia-Pacific ) ( POS 's ) ) ( ADJP ( QP ( CD 530 ) ( CD million ) ) ) ( NN acquisition ) ) ( PP ( IN of ) ( NP ( NNP Brunswick ) ( NNP Pulp ) ( CC & ) ( NNP Paper ) ( NNP Co. ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) )

The purchase of Nekoosa would easily eclipse Georgia-Pacific 's 530 million acquisition of Brunswick Pulp & Paper Co. last year


( S ( NP-SBJ-2 ( NP ( DT That ) ( NN acquisition ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP ( RB also ) ) ( VP ( VBD included ) ( NP ( NP ( DT the ) ( NN assumption ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 135 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN debt ) ) ) ) ) ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN designed ) ( S-CLR ( VP ( TO to ) ( VP ( VB allow ) ( S ( NP-SBJ ( NNP Georgia-Pacific ) ) ( VP ( TO to ) ( VP ( VP ( VB capitalize ) ( PP-CLR ( IN on ) ( NP ( NP ( DT the ) ( JJ strong ) ( NN demand ) ) ( PP ( IN for ) ( NP ( JJ softwood ) ( NN pulp ) ) ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( VP ( VB reduce ) ( NP ( NP ( PRP$ its ) ( NN exposure ) ) ( PP ( TO to ) ( NP ( DT the ) ( NN housing ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) )

That acquisition which also included the assumption of 135 million in debt was designed to allow Georgia-Pacific to capitalize on the strong demand for softwood pulp as well as reduce its exposure to the housing market


( S ( NP-SBJ ( NNP Wasserstein ) ( NNP Perella ) ( CC & ) ( NNP Co. ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN dealer-manager ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN offer ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD will ) ( VP ( VB expire ) ( NP-TMP ( NNP Nov. ) ( CD 29 ) ) ( SBAR-ADV ( IN unless ) ( S ( VP ( VBN extended ) ) ) ) ) ) ) ) ) ) ) ) )

Wasserstein Perella & Co. is the dealer-manager for the offer which will expire Nov. 29 unless extended


( S ( NP-SBJ ( NP ( NNP Polly ) ( NNP Peck ) ( NNP International ) ( NNP Inc. ) ( POS 's ) ) ( NN agreement ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( CD 51 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Sansui ) ( NNP Electric ) ( NNP Co. ) ) ) ) ) ) ) ) ( VP ( VBZ proves ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ foreign ) ( NNS companies ) ) ( VP ( MD can ) ( VP ( VB acquire ) ( NP ( JJ Japanese ) ( NNS companies ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NP ( DT the ) ( NN alternative ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ Japanese ) ( NN company ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NN extinction ) ) ) ) ) ) ) ) ) ) )

Polly Peck International Inc. 's agreement to acquire 51 % of Sansui Electric Co. proves that foreign companies can acquire Japanese companies if the alternative for the Japanese company is extinction


( S ( NP-SBJ ( NP ( NNP Polly ) ( NNP Peck ) ) ( NP ( DT a ) ( JJ fast-growing ) ( JJ British ) ( NN conglomerate ) ) ) ( VP ( MD will ) ( VP ( VB pay ) ( NP ( NP ( QP ( CD 15.6 ) ( CD billion ) ) ( NN yen ) ) ( PRN ( NP ( QP ( CD 110 ) ( CD million ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( CD 39 ) ( CD million ) ) ( JJ new ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( NNP Sansui ) ) ( NP ( NP ( DT a ) ( JJ well-known ) ( NN maker ) ) ( PP ( IN of ) ( NP ( NN high-fidelity ) ( NN audio ) ( NN equipment ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD failed ) ( S ( VP ( TO to ) ( VP ( VB adjust ) ( PP-CLR ( TO to ) ( NP ( VBG changing ) ( NN market ) ( NNS conditions ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Polly Peck a fast-growing British conglomerate will pay 15.6 billion yen 110 million for 39 million new shares of Sansui a well-known maker of high-fidelity audio equipment that failed to adjust to changing market conditions


( S ( NP-SBJ-1 ( JJ Japanese ) ( NN government ) ( NNS officials ) ) ( S-ADV ( ADJP-PRD ( JJ eager ) ( S ( VP ( TO to ) ( VP ( VB rebut ) ( NP ( NP ( JJ foreign ) ( NN criticism ) ) ( PP ( IN of ) ( NP ( NP ( JJ Japanese ) ( NNS investments ) ) ( ADVP-LOC ( RB overseas ) ) ) ) ) ) ) ) ) ) ( VP ( VBD hailed ) ( NP ( DT the ) ( NN transaction ) ) ( PP-CLR ( IN as ) ( NP ( NN proof ) ( SBAR ( S ( NP-SBJ ( NNS foreigners ) ) ( VP ( MD can ) ( VP ( VB make ) ( NP ( JJ similar ) ( NNS investments ) ) ( PP-LOC ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ) ) ) ) )

Japanese government officials eager to rebut foreign criticism of Japanese investments overseas hailed the transaction as proof foreigners can make similar investments in Japan


( S ( NP-SBJ ( NP ( NP ( NNP Polly ) ( NNP Peck ) ( POS 's ) ) ( NN chairman ) ) ( NP ( NNP Asil ) ( NNP Nadir ) ) ) ( VP ( VBD echoed ) ( NP ( NP ( DT the ) ( JJ official ) ( JJ Japanese ) ( NN view ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN accord ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD was ) ( VP ( VBN announced ) ( NP-TMP ( NNP Friday ) ) ) ) ) ) ) ) ) ) )

Polly Peck 's chairman Asil Nadir echoed the official Japanese view of the accord which was announced Friday


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNS myths ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Japan ) ) ( VP ( VBZ is ) ( RB not ) ( ADJP-PRD ( JJ open ) ( PP ( TO to ) ( NP ( NP ( NNS concerns ) ) ( PP ( IN from ) ( NP ( NN outside ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ has ) ( PRN ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ) ) ) ( VP ( VBN been ) ( VP ( VBN demolished ) ( PP-MNR ( IN at ) ( NP ( DT a ) ( NN stroke ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Nadir ) ) ( VP ( VBD said ) ) )

The myths that Japan is not open to concerns from outside has I think been demolished at a stroke Mr. Nadir said


( S ( CC But ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NNP Sansui ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ special ) ( NN case ) ) ) ) ) ) )

But analysts say Sansui is a special case


( S ( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB post ) ( NP ( NP ( DT a ) ( NN loss ) ) ( PP ( IN of ) ( NP ( QP ( CD 6.4 ) ( CD billion ) ) ( NN yen ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBG ending ) ( NP-TMP ( NN tomorrow ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP$ its ) ( NNS liabilities ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBP exceed ) ( NP ( PRP$ its ) ( NNS assets ) ) ( PP-CLR ( IN by ) ( NP ( QP ( IN about ) ( CD 13.8 ) ( CD billion ) ) ( NN yen ) ) ) ) ) )

It expects to post a loss of 6.4 billion yen for the year ending tomorrow and its liabilities currently exceed its assets by about 13.8 billion yen


( SINV ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP find ) ( NP ( JJ sound ) ( JJ healthy ) ( NNS companies ) ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( RB not ) ( PP-PRD ( IN for ) ( NP ( NN sale ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP George ) ( NNP Watanabe ) ) ( NP ( NP ( DT a ) ( NN management-consultant ) ) ( PP-LOC ( IN at ) ( NP ( JJ Tokyo-based ) ( NNP Asia ) ( NNP Advisory ) ( NNPS Services ) ( NNP Inc ) ) ) ) ) )

If you find sound healthy companies in Japan they are not for sale said George Watanabe a management-consultant at Tokyo-based Asia Advisory Services Inc


( S ( NP-SBJ ( NP ( NNS Statistics ) ) ( PP ( IN on ) ( NP ( NP ( NNS acquisitions ) ) ( PP ( IN by ) ( NP ( NNS foreigners ) ) ) ) ) ) ( VP ( VBP vary ) ( PP-LOC ( IN in ) ( NP ( NN detail ) ) ) ( SBAR-PRP ( IN because ) ( S ( PP ( IN unlike ) ( NP ( NP ( NNP Sansui ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBN listed ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Tokyo ) ( CC and ) ( NNP Osaka ) ( NN stock ) ( NNS exchanges ) ) ) ) ) ) ) ) ) ( NP-SBJ-3 ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ Japanese ) ( NNS companies ) ) ( VP ( VBN acquired ) ( PP ( IN by ) ( NP-LGS ( NNS foreigners ) ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( ADVP-MNR ( RB privately ) ) ( VBN held ) ) ) ) ) ) )

Statistics on acquisitions by foreigners vary in detail because unlike Sansui which is listed on the Tokyo and Osaka stock exchanges most of the Japanese companies acquired by foreigners are privately held


( S ( CC But ) ( PP ( IN by ) ( NP ( DT all ) ( NNS accounts ) ) ) ( NP-SBJ ( JJ foreign ) ( NNS companies ) ) ( VP ( VBP have ) ( VP ( VBN bought ) ( NP ( NP ( RB only ) ( DT a ) ( JJ relative ) ( NN handful ) ) ( PP ( IN of ) ( NP ( JJ Japanese ) ( NNS companies ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJ Japanese ) ( NNS companies ) ) ( VP ( VBP have ) ( VP ( VBN acquired ) ( NP ( NP ( NNS hundreds ) ) ( PP ( IN of ) ( NP ( JJ foreign ) ( NNS companies ) ) ) ) ) ) ) ) ) ) )

But by all accounts foreign companies have bought only a relative handful of Japanese companies this year while Japanese companies have acquired hundreds of foreign companies


( S ( CC Nor ) ( VBP do ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VB expect ) ( S ( NP-SBJ ( DT the ) ( NNP Sansui ) ( NN deal ) ) ( VP ( TO to ) ( VP ( VB touch ) ( PRT ( RP off ) ) ( NP ( NP ( DT a ) ( JJ fresh ) ( NN wave ) ) ( PP ( IN of ) ( NP ( JJ foreign ) ( NNS purchases ) ) ) ) ) ) ) ) )

Nor do analysts expect the Sansui deal to touch off a fresh wave of foreign purchases


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ strong ) ( NN yen ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJ high ) ( NN stock ) ( NNS prices ) ) ( PP ( IN of ) ( NP ( JJ Japanese ) ( NNS companies ) ) ) ) ) ( VP ( VBD were ) ( RB n't ) ( NP-PRD ( NP ( NNS deterrents ) ) ( ADVP ( RB enough ) ) ) ) ) ) ( NP-SBJ ( NP ( NP ( NNS webs ) ) ( PP ( IN of ) ( NP ( NNS cross-shareholdings ) ) ) ( PP ( IN between ) ( NP ( JJ friendly ) ( JJ Japanese ) ( NNS companies ) ) ) ) ( CC and ) ( NP ( ADJP ( RB fiercely ) ( JJ independent ) ) ( JJ Japanese ) ( JJ corporate ) ( NNS attitudes ) ) ) ( VP ( VBP repel ) ( NP ( RBS most ) ( JJ would-be ) ( NNS acquirers ) ) ) )

If the strong yen and the high stock prices of Japanese companies were n't deterrents enough webs of cross-shareholdings between friendly Japanese companies and fiercely independent Japanese corporate attitudes repel most would-be acquirers


( S ( ADVP-TMP ( RB Usually ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ-2 ( DT a ) ( JJ Japanese ) ( NN company ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ ready ) ( S ( VP ( TO to ) ( VP ( VB sell ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( NP ( NP ( JJ few ) ( NNS alternatives ) ) ( VP ( VBG remaining ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ grim ) ( NNS demeanors ) ) ( PP ( IN of ) ( NP ( NP ( NNP Sansui ) ( POS 's ) ) ( NNS directors ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( JJ joint ) ( NN news ) ( NN conference ) ) ( ADVP-LOC ( RB here ) ) ) ) ) ( VP ( VBD left ) ( NP ( JJ little ) ( NN doubt ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT this ) ) ( VP ( VBD was ) ( RB not ) ( NP-PRD ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJS finest ) ( NN hour ) ) ) ) ) ) ) ) )

Usually when a Japanese company is ready to sell it has few alternatives remaining and the grim demeanors of Sansui 's directors at a joint news conference here left little doubt that this was not the company 's finest hour


( S ( NP-SBJ ( NNP Sansui ) ) ( VP ( VBD was ) ( ADVP-TMP ( RB once ) ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( JJR premier ) ( NNS makers ) ) ( PP ( IN of ) ( NP ( NP ( JJ expensive ) ( NN high-quality ) ( NN stereo ) ( NN gear ) ) ( PP ( IN for ) ( NP ( NNS audiophiles ) ) ) ) ) ) ) ) ) )

Sansui was once one of Japan 's premier makers of expensive high-quality stereo gear for audiophiles


( S ( CC But ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ has ) ( VP ( VBN moved ) ( PP-DIR ( IN toward ) ( NP ( NP ( ADJP ( RBR less ) ( JJ expensive ) ) ( JJ mini-component ) ( NNS sets ) ) ( NP ( NP ( VBN miniaturized ) ( NX ( NX ( NNS amplifiers ) ) ( CC and ) ( NX ( NNS receivers ) ) ( CC and ) ( NX ( NN software ) ( NNS players ) ) ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN stacked ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( NN top ) ) ( PP ( IN of ) ( NP ( DT each ) ( JJ other ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But in recent years the market has moved toward less expensive mini-component sets miniaturized amplifiers and receivers and software players that could be stacked on top of each other


( S ( NP-SBJ-1 ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( NP ( NNP Sansui ) ( POS 's ) ) ( NN fellow ) ( NN audio-specialty ) ( NNS companies ) ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Aiwa ) ( NNP Co. ) ) ( CC and ) ( NP ( NNP Pioneer ) ( NNP Electric ) ( NNP Corp. ) ) ) ) ) ( VP ( VBD responded ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN challenge ) ) ) ( PP-MNR ( PP ( IN by ) ( S-NOM ( VP ( ADVP-MNR ( RB quickly ) ) ( VBG bringing ) ( PRT ( RP out ) ) ( NP ( NP ( JJ mini-component ) ( NNS products ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( JJ own ) ) ) ) ) ) ) ( PP ( IN by ) ( S-NOM ( VP ( VBG moving ) ( ADVP-MNR ( RB heavily ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( JJ booming ) ( JJ compact ) ( NN disk ) ( NNS businesses ) ) ) ) ) ) ( CC or ) ( PP ( IN by ) ( S-NOM ( VP ( VBG diversifying ) ( PP-DIR ( IN into ) ( NP ( NP ( JJ other ) ( JJ consumer-electronics ) ( NNS fields ) ) ( PP ( VBG including ) ( NP ( NP ( NN laser ) ( NNS disks ) ) ( CC or ) ( NP ( JJ portable ) ( NN cassette ) ( NNS players ) ) ) ) ) ) ) ) ) ) ) )

Some of Sansui 's fellow audio-specialty companies such as Aiwa Co. and Pioneer Electric Corp. responded to the challenge by quickly bringing out mini-component products of their own by moving heavily into the booming compact disk businesses or by diversifying into other consumer-electronics fields including laser disks or portable cassette players


( S ( NP-SBJ-1 ( NNP Sansui ) ) ( VP ( VP ( VBD was ) ( ADJP-PRD ( JJ late ) ( PP ( IN into ) ( NP ( DT the ) ( JJ mini-component ) ( NN business ) ) ) ) ) ( CC and ) ( VP ( VBD failed ) ( S ( VP ( TO to ) ( VP ( VB branch ) ( PP-DIR ( IN into ) ( NP ( JJ other ) ( JJ new ) ( NNS businesses ) ) ) ) ) ) ) ) )

Sansui was late into the mini-component business and failed to branch into other new businesses


( S ( SBAR-TMP ( IN As ) ( S ( NP-SBJ ( DT the ) ( NN yen ) ) ( VP ( VBD soared ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Sansui ) ( POS 's ) ) ( VBG deepening ) ( JJ financial ) ( NNS problems ) ) ( VP ( VBD became ) ( NP-PRD ( DT a ) ( JJ vicious ) ( NN circle ) ) ) )

As the yen soared in recent years Sansui 's deepening financial problems became a vicious circle


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NNS competitors ) ) ( VP ( VBD moved ) ( NP ( NN production ) ) ( ADVP-CLR ( RB offshore ) ) ( PP ( IN in ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( VBG sagging ) ( NN competitiveness ) ) ( PP ( IN of ) ( NP ( JJ Japanese ) ( NNS factories ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Sansui ) ) ( VP ( VBD lacked ) ( NP ( NP ( DT the ) ( NN money ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB build ) ( NP ( JJ new ) ( NNS plants ) ) ( PP-LOC ( IN in ) ( NP ( NNP Southeast ) ( NNP Asia ) ) ) ) ) ) ) ) ) )

While competitors moved production offshore in response to the sagging competitiveness of Japanese factories Sansui lacked the money to build new plants in Southeast Asia


( SINV ( S-TPC-2 ( NP-SBJ-1 ( PRP$ Our ) ( NN company ) ) ( VP ( VBZ has ) ( RB not ) ( VP ( VBN been ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB cope ) ( ADVP-MNR ( RB very ) ( RB effectively ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS changes ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN marketplace ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Ryosuke ) ( NNP Ito ) ) ( NP ( NP ( NNP Sansui ) ( POS 's ) ) ( NN president ) ) ) )

Our company has not been able to cope very effectively with changes in the marketplace said Ryosuke Ito Sansui 's president


( S ( S-TPC-2 ( CC But ) ( NP-SBJ-3 ( NP ( RB even ) ( DT a ) ( JJ Japanese ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ looks ) ( PP-CLR ( IN like ) ( NP ( DT a ) ( NN dog ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB turn ) ( PRT ( RP out ) ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( JJ good ) ( NN investment ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ foreign ) ( NN concern ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT some ) ( NN management ) ( NNS consultants ) ) ( VP ( VBP maintain ) ) )

But even a Japanese company that looks like a dog may turn out to be a good investment for a foreign concern some management consultants maintain


( S ( NP-SBJ ( NP ( NNP Yoshihisa ) ( NNP Murasawa ) ) ( NP ( NP ( DT a ) ( NN management ) ( NN consultant ) ) ( PP ( IN for ) ( NP ( NNP Booz-Allen ) ( CC & ) ( NNP Hamilton ) ( PRN ( NP-LOC ( NNP Japan ) ) ) ( NNP Inc. ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ his ) ( NN firm ) ) ( VP ( MD will ) ( ADVP ( RB likely ) ) ( VP ( VB be ) ( VP ( VBG recommending ) ( NP ( NP ( NNS acquisitions ) ) ( PP ( IN of ) ( NP ( JJ Japanese ) ( NNS companies ) ) ) ) ( ADVP-TMP ( RBR more ) ( RB often ) ) ( PP-CLR ( TO to ) ( NP ( JJ foreign ) ( NNS clients ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN future ) ) ) ) ) ) ) ) ) )

Yoshihisa Murasawa a management consultant for Booz-Allen & Hamilton Japan Inc. said his firm will likely be recommending acquisitions of Japanese companies more often to foreign clients in the future


( S ( S-TPC-2 ( S ( NP-SBJ ( NP ( NNS Attitudes ) ) ( PP ( IN toward ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN acquired ) ) ) ) ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB still ) ) ( ADJP-PRD ( JJ negative ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( VP ( VBG becoming ) ( ADJP-PRD ( RBR more ) ( JJ positive ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Murasawa ) ) ( VP ( VBD said ) ) )

Attitudes toward being acquired are still negative but they 're becoming more positive Mr. Murasawa said


( S ( PP-LOC ( IN In ) ( NP ( DT some ) ( NNS industries ) ) ) ( PP ( IN like ) ( NP ( NNS pharmaceuticals ) ) ) ( NP-SBJ ( NNS acquisitions ) ) ( VP ( VBP make ) ( NP ( NN sense ) ) ) )

In some industries like pharmaceuticals acquisitions make sense


( S ( S ( SBAR-SBJ-2 ( NNP Whether ) ( S ( NP-SBJ ( NP ( NNP Polly ) ( NNP Peck ) ( POS 's ) ) ( NN acquisition ) ) ( VP ( VBZ makes ) ( NP ( NN sense ) ) ) ) ) ( VP ( VBZ remains ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN seen ) ) ) ) ) ) ) ( CC but ) ( S ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN news ) ( NN conference ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Nadir ) ) ( VP ( VBD brimmed ) ( PP-CLR ( IN with ) ( NP ( NN self-confidence ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD can ) ( VP ( VB turn ) ( NP ( NNP Sansui ) ) ( PRT ( IN around ) ) ) ) ) ) ) ) ) ) )

Whether Polly Peck 's acquisition makes sense remains to be seen but at the news conference Mr. Nadir brimmed with self-confidence that he can turn Sansui around


( S-2 ( NP-SBJ ( NNP Sansui ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ perfect ) ( NN fit ) ) ( PP ( IN for ) ( NP ( NP ( NP ( NNP Polly ) ( NNP Peck ) ( POS 's ) ) ( NNS electronics ) ( NNS operations ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP make ) ( NP ( NP ( NNS televisions ) ) ( NP ( NN videocassette ) ( NNS recorders ) ) ( NP ( NNS microwaves ) ) ( CC and ) ( NP ( JJ other ) ( NNS products ) ) ) ( PP ( IN on ) ( NP ( DT an ) ( JJ original ) ( NN equipment ) ( NN maker ) ( NN basis ) ) ) ( PP ( IN for ) ( NP ( NP ( NN sale ) ) ( PP-LOC ( IN under ) ( NP ( NP ( JJ other ) ( NNS companies ) ( POS ' ) ) ( NN brand ) ( NNS names ) ) ) ) ) ) ) ) ) ) ) ) )

Sansui he said is a perfect fit for Polly Peck 's electronics operations which make televisions videocassette recorders microwaves and other products on an original equipment maker basis for sale under other companies ' brand names


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( NNP Polly ) ( NNP Peck ) ) ( VP ( VP ( MD will ) ( VP ( ADVP-MNR ( RB greatly ) ) ( VB expand ) ( NP ( NP ( NNP Sansui ) ( POS 's ) ) ( NN product ) ( NN line ) ) ( S-ADV ( VP ( VBG using ) ( NP-1 ( NP ( NNP Sansui ) ( POS 's ) ) ( NNS engineers ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB design ) ( NP ( DT the ) ( JJ new ) ( NNS products ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB move ) ( NP ( NP ( NP ( NNP Sansui ) ( POS 's ) ) ( NN production ) ) ( PP ( IN of ) ( NP ( NP ( JJS most ) ( NNS products ) ) ( ADJP ( ADJP ( JJ other ) ) ( PP ( IN than ) ( NP ( JJ sophisticated ) ( JJ audio ) ( NN gear ) ) ) ) ) ) ) ( ADVP-CLR ( RB offshore ) ) ( PP-CLR ( IN into ) ( NP ( NP ( NNP Polly ) ( NNP Peck ) ( POS 's ) ) ( JJ own ) ( NNS factories ) ) ) ) ) ) ) ) ) )

He said Polly Peck will greatly expand Sansui 's product line using Sansui 's engineers to design the new products and will move Sansui 's production of most products other than sophisticated audio gear offshore into Polly Peck 's own factories


( S ( S-TPC-3 ( SBAR-NOM-TPC ( WHNP-2 ( WDT Whatever ) ( NN capital ) ) ( S ( NP-SBJ ( NP ( PRP it ) ) ( PRN ( NP ( NNP Sansui ) ) ) ) ( VP ( VBZ needs ) ( SBAR-PRP ( IN so ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD can ) ( VP ( VP ( VB compete ) ) ( CC and ) ( VP ( VB become ) ( NP-PRD ( NP ( DT a ) ( ADJP ( RB totally ) ( JJ global ) ) ( NN entity ) ) ( ADJP ( JJ capable ) ( PP ( IN of ) ( S-NOM ( VP ( VBG competing ) ( PP-CLR ( IN with ) ( NP ( NP ( DT the ) ( JJS best ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN world ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( DT that ) ( NN capital ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN injected ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Nadir ) ) ( VP ( VBD said ) ) )

Whatever capital it Sansui needs so it can compete and become a totally global entity capable of competing with the best in the world that capital will be injected Mr. Nadir said


( S ( CC And ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNP Polly ) ( NNP Peck ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG jettisoning ) ( NP ( NP ( DT the ) ( JJ existent ) ( NN top-management ) ( NN structure ) ) ( PP ( IN of ) ( NP ( NNP Sansui ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG bringing ) ( PRT ( RP in ) ) ( NP ( DT a ) ( JJ former ) ( NNP Toshiba ) ( NNP Corp. ) ( NN executive ) ) ( PP-CLR ( IN as ) ( NP ( NP ( JJ executive ) ( NN vice ) ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( VBG operating ) ( NN officer ) ) ) ) ) ) )

And while Polly Peck is n't jettisoning the existent top-management structure of Sansui it is bringing in a former Toshiba Corp. executive as executive vice president and chief operating officer


( S ( NP-SBJ ( JJ Such ) ( NN risk ) ( NN taking ) ) ( VP ( VBZ is ) ( NP-PRD ( DT an ) ( JJ everyday ) ( NN matter ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ brash ) ( NNP Mr. ) ( NNP Nadir ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( ADJP ( CD 25 ) ( NN % ) ) ( NN owner ) ) ( PP ( IN of ) ( NP ( NNP Polly ) ( NNP Peck ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( PRP$ its ) ( NN chairman ) ) ) ) ) ) ) ) ) )

Such risk taking is an everyday matter for the brash Mr. Nadir who is 25 % owner of Polly Peck as well as its chairman


( S ( NP-SBJ ( PRP He ) ) ( VP ( VP ( VBD took ) ( NP ( NP ( NNP Polly ) ( NNP Peck ) ) ( ADVP-TMP ( RB once ) ) ( NP ( DT a ) ( JJ small ) ( NN fabric ) ( NN wholesaler ) ) ) ) ( CC and ) ( VP ( VBD used ) ( NP ( PRP it ) ) ( X ( IN at ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN base ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB build ) ( NP ( NP ( DT a ) ( NN conglomerate ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG doubling ) ( NP ( PRP$ its ) ( NNS profits ) ) ( ADVP-TMP ( RB annually ) ) ( PP-TMP ( IN since ) ( NP ( CD 1980 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He took Polly Peck once a small fabric wholesaler and used it at as a base to build a conglomerate that has been doubling its profits annually since 1980


( S ( PP-TMP ( IN In ) ( NP ( NNP September ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD announced ) ( NP ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( DT the ) ( NN tropical-fruit ) ( NN business ) ) ( PP ( IN of ) ( NP ( NP ( NNP RJR ) ( NNP Nabisco ) ( NNP Inc. ) ( POS 's ) ) ( NNP Del ) ( NNP Monte ) ( NNS foods ) ( NN unit ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( CD 557 ) ( CD million ) ) ) ( PRN ( NP ( QP ( CD 878 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) )

In September it announced plans to acquire the tropical-fruit business of RJR Nabisco Inc. 's Del Monte foods unit for 557 million 878 million


( S ( NP-TMP ( JJ Last ) ( NN month ) ) ( NP-SBJ ( NNP Polly ) ( NNP Peck ) ) ( VP ( VBD posted ) ( NP ( NP ( DT a ) ( ADJP ( CD 38 ) ( NN % ) ) ( NN jump ) ) ( PP-LOC ( IN in ) ( NP ( NN pretax ) ( NN profit ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ first ) ( DT half ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 54.8 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 39.8 ) ( CD million ) ) ) ) ( PP ( IN on ) ( NP ( NP ( DT a ) ( ADJP ( CD 63 ) ( NN % ) ) ( NN rise ) ) ( PP-LOC ( IN in ) ( NP ( NNS sales ) ) ) ) ) ) ) )

Last month Polly Peck posted a 38 % jump in pretax profit for the first half to 54.8 million from 39.8 million on a 63 % rise in sales


( S ( NP-SBJ ( NP ( NNP Joann ) ( NNP S. ) ( NNP Lublin ) ) ( PP-LOC ( IN in ) ( NP ( NNP London ) ) ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( DT this ) ( NN article ) ) ) ) )

Joann S. Lublin in London contributed to this article


( S ( NP-SBJ ( DT The ) ( NNP American ) ( NNP Stock ) ( NNP Exchange ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT a ) ( NN seat ) ) ( VP ( VBD was ) ( VP ( VBN sold ) ( PP-CLR ( IN for ) ( NP ( NP ( CD 165,000 ) ) ( ADVP ( JJ unchanged ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( JJ previous ) ( NN sale ) ) ( NP-TMP ( NNP Oct. ) ( CD 13 ) ) ) ) ) ) ) ) ) ) ) ) )

The American Stock Exchange said a seat was sold for 165,000 unchanged from the previous sale Oct. 13


( S ( NP-SBJ-1 ( NP ( NNS Seats ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Amex ) ) ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBP are ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( NP ( CD 151,000 ) ) ( VP ( NN bid ) ) ) ( CC and ) ( NP ( NP ( CD 200,000 ) ) ( VP ( VBN asked ) ) ) ) ) ) ) )

Seats on the Amex currently are quoted at 151,000 bid and 200,000 asked


( SINV ( PP-CLR-TPC-1 ( IN Out ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS mouths ) ) ( PP ( IN of ) ( NP ( NNS revolutionaries ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG coming ) ) ) ( NP-SBJ ( NP ( NNS words ) ) ( PP ( IN of ) ( NP ( NN moderation ) ) ) ) )

Out of the mouths of revolutionaries are coming words of moderation


( SINV ( ADVP-PRD-TPC-2 ( RB Here ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( NN soccer ) ( NN stadium ) ) ( PP-LOC ( IN near ) ( NP ( NP ( DT the ) ( JJ black ) ( NN township ) ) ( PP ( IN of ) ( NP ( NNP Soweto ) ) ) ) ) ) ) ( NP-TMP ( NN yesterday ) ) ( VP ( VBD were ) ) ( NP-SBJ ( NP ( CD eight ) ( NNS leaders ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP African ) ( NNP National ) ( NNP Congress ) ) ) ( SBAR ( WHNP-1 ( NP ( CD seven ) ) ( WHPP ( IN of ) ( WHNP ( WP whom ) ) ) ) ( S ( VP ( VBD had ) ( VP ( VBN spent ) ( NP-CLR ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN adult ) ( NNS lives ) ) ) ) ( PP-CLR ( IN in ) ( NP ( NN prison ) ) ) ( PP ( IN for ) ( NP ( NP ( NN sabotage ) ) ( CC and ) ( NP ( NN conspiracy ) ( S ( VP ( TO to ) ( VP ( VB overthrow ) ( NP ( DT the ) ( NN government ) ) ) ) ) ) ) ) ) ) ) ) ) )

Here at a soccer stadium near the black township of Soweto yesterday were eight leaders of the African National Congress seven of whom had spent most of their adult lives in prison for sabotage and conspiracy to overthrow the government


( SINV ( ADVP-PRD-TPC-2 ( RB Here ) ) ( VP ( VBD were ) ) ( NP-SBJ ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 70,000 ) ) ( NNP ANC ) ( NNS supporters ) ) ( VP ( VBG gathering ) ( PP-PRP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( NNP ANC ) ( NN rally ) ) ( PP-LOC ( IN inside ) ( NP ( NNP South ) ( NNP Africa ) ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ-1 ( DT the ) ( JJ black ) ( NN liberation ) ( NN movement ) ) ( VP ( VBD was ) ( VP ( VBN banned ) ( PP-TMP ( IN in ) ( NP ( CD 1960 ) ) ) ) ) ) ) ) ) ) ) ) )

Here were more than 70,000 ANC supporters gathering for the first ANC rally inside South Africa since the black liberation movement was banned in 1960


( SINV ( ADVP-PRD-TPC-1 ( RB Here ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT the ) ( NN state ) ( NN security ) ( NN appartus ) ) ( VP ( VBN poised ) ( S ( VP ( TO to ) ( VP ( VB pounce ) ( PP-CLR ( IN on ) ( NP ( NP ( DT any ) ( NNS words ) ( CC or ) ( NNS acts ) ) ( PP ( IN of ) ( NP ( NP ( NN provocation ) ) ( ADVP ( VB let ) ( JJ alone ) ) ( NP ( NN revolution ) ) ) ) ) ) ) ) ) ) ) )

Here was the state security appartus poised to pounce on any words or acts of provocation let alone revolution


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( NNS words ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD boomed ) ( PP-CLR ( IN over ) ( NP ( DT the ) ( NNS loudspeakers ) ) ) ) ) ) ) ( VP ( VBD bore ) ( NP ( NP ( NNS messages ) ) ( PP ( IN of ) ( NP ( NN peace ) ( NN unity ) ( NN negotiation ) ( CC and ) ( NN discipline ) ) ) ) ) )

But the words that boomed over the loudspeakers bore messages of peace unity negotiation and discipline


( SINV ( S-TPC-2 ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP stand ) ( PP-CLR ( IN for ) ( NP ( NN peace ) ) ) ( NP-TMP ( NN today ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD will ) ( VP ( VB stand ) ( PP-CLR ( IN for ) ( NP ( NN peace ) ) ) ( NP-TMP ( NN tomorrow ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NP ( NNP Walter ) ( NNP Sisulu ) ) ( NP ( NP ( DT the ) ( NNP ANC ) ( POS 's ) ) ( JJ former ) ( NN secretary ) ( NN general ) ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( PP ( IN along ) ( PP ( IN with ) ( NP ( NP ( CD five ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( NNS colleagues ) ) ) ) ) ) ( VP ( VBD served ) ( NP ( CD 26 ) ( NNS years ) ) ( PP-CLR ( IN in ) ( NP ( NN prison ) ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN released ) ( ADVP-TMP ( NP ( CD two ) ( NNS weeks ) ) ( IN ago ) ) ) ) ) ) ) ) ) ) )

We stand for peace today and we will stand for peace tomorrow said Walter Sisulu the ANC 's former secretary general who along with five of his colleagues served 26 years in prison before being released two weeks ago


( S ( NP-SBJ ( NP ( DT Some ) ( NNS members ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ huge ) ( NN crowd ) ) ) ) ( VP ( VBD shouted ) ( X ( FW Viva ) ( NN peace ) ( FW viva ) ) ) )

Some members of the huge crowd shouted Viva peace viva


( S ( NP-SBJ ( DT These ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( JJ curious ) ( NNS times ) ) ( PP-LOC ( IN in ) ( NP ( ADJP ( JJ South ) ( JJ African ) ) ( NNS politics ) ) ) ) ) )

These are curious times in South African politics


( S ( NP-SBJ-1 ( NP ( NP ( DT The ) ( NN government ) ) ( CC and ) ( NP ( DT the ) ( NNP ANC ) ) ) ( NP ( NP ( DT the ) ( JJS bitterest ) ) ( PP ( IN of ) ( NP ( NNS enemies ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBN engaged ) ( PP-CLR ( IN in ) ( NP ( NP ( DT an ) ( JJ elaborate ) ( NN mating ) ( NN dance ) ) ( VP ( VBN designed ) ( S-CLR ( VP ( TO to ) ( VP ( VB entice ) ( NP ( DT each ) ( JJ other ) ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( VBG negotiating ) ( NN table ) ) ) ) ) ) ) ) ) ) ) )

The government and the ANC the bitterest of enemies are engaged in an elaborate mating dance designed to entice each other to the negotiating table


( S ( NP-SBJ-2 ( NN Pretoria ) ) ( VP ( VP ( VBZ releases ) ( NP ( NP ( DT the ) ( NNP ANC ) ( NNS leaders ) ) ( SBAR ( WHNP-1 ( NP ( JJS most ) ) ( WHPP ( IN of ) ( WHNP ( WP whom ) ) ) ) ( S ( VP ( VBD were ) ( VP ( VBG serving ) ( NP ( NN life ) ( NNS sentences ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ allows ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( TO to ) ( VP ( VB speak ) ( ADVP-MNR ( RB freely ) ) ) ) ) ) ( S-ADV ( VP ( VBG hoping ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP ANC ) ) ( VP ( MD will ) ( VP ( VB abandon ) ( NP ( NP ( PRP$ its ) ( NN use ) ) ( PP ( IN of ) ( NP ( NN violence ) ) ) ) ) ) ) ) ) ) ) )

Pretoria releases the ANC leaders most of whom were serving life sentences and allows them to speak freely hoping that the ANC will abandon its use of violence


( S ( NP-SBJ-1 ( DT The ) ( NNP ANC ) ( NNS leaders ) ) ( VP ( VBP speak ) ( PP-MNR ( IN in ) ( NP ( NP ( NNS tones ) ) ( PP ( IN of ) ( NP ( NN moderation ) ) ) ) ) ( S-ADV ( VP ( VBG emphasizing ) ( NP ( NN discipline ) ) ) ) ( S-ADV ( VP ( VBG hoping ) ( SBAR ( S ( NP-SBJ-2 ( DT the ) ( NN government ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN encouraged ) ( S ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( JJ further ) ( NNS steps ) ) ( PP ( JJ such ) ( IN as ) ( NP ( S-NOM ( VP ( VP ( VBG freeing ) ( NP ( NP ( NNP Nelson ) ( NNP Mandela ) ) ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ prominent ) ) ( NNP ANC ) ( NN figure ) ) ) ) ( CC and ) ( VP ( VBG unbanning ) ( NP ( DT the ) ( NN organization ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The ANC leaders speak in tones of moderation emphasizing discipline hoping the government will be encouraged to take further steps such as freeing Nelson Mandela the most prominent ANC figure and unbanning the organization


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN government ) ) ( PP ( IN of ) ( NP ( NNP President ) ( NNP F.W. ) ( NNP de ) ( NNP Klerk ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG using ) ( NP ( DT this ) ( NN situation ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VP ( VB improve ) ( NP ( PRP$ its ) ( JJ international ) ( NN image ) ) ) ( CC and ) ( VP ( VB head ) ( PRT ( RP off ) ) ( NP ( JJ further ) ( JJ economic ) ( NNS sanctions ) ) ) ) ) ) ) ) )

The government of President F.W. de Klerk is using this situation to improve its international image and head off further economic sanctions


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NP ( DT the ) ( JJ many ) ( NNS organizations ) ) ( PP-LOC ( IN inside ) ( NP ( DT the ) ( NN country ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP back ) ( NP ( DT the ) ( NNP ANC ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG taking ) ( NP ( DT the ) ( NN opportunity ) ( S ( VP ( TO to ) ( VP ( VP ( VB regain ) ( NP ( PRP$ their ) ( NN strength ) ) ) ( CC and ) ( VP ( VB mobilize ) ( NP ( PRP$ their ) ( NNS supporters ) ) ) ) ) ) ) ( SBAR-ADV ( RB even ) ( IN though ) ( S ( NP-SBJ ( NP ( DT the ) ( NN state ) ) ( PP ( IN of ) ( NP ( NN emergency ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( ADVP-MNR ( RB severely ) ) ( VBN curtailed ) ( NP ( JJ black ) ( NN opposition ) ) ) ) ) ) ) ( VP ( VBZ remains ) ( PP-PRD ( IN in ) ( NP ( NN force ) ) ) ) ) ) ) ) )

Meanwhile the many organizations inside the country that back the ANC are taking the opportunity to regain their strength and mobilize their supporters even though the state of emergency which has severely curtailed black opposition remains in force


( S ( NP-SBJ ( DT The ) ( NN result ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( DT the ) ( ADJP ( JJ unthinkable ) ( CC and ) ( JJ illogical ) ) ) ( VP ( VBP are ) ( VP ( VBG happening ) ) ) ) ) ) )

The result is that the unthinkable and illogical are happening


( S ( ADVP-TMP ( NP ( CD Six ) ( NNS months ) ) ( IN ago ) ) ( NP-SBJ ( NP ( NN government ) ( NN approval ) ) ( PP ( IN for ) ( NP ( DT an ) ( NNP ANC ) ( NN rally ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ inconceivable ) ) ) )

Six months ago government approval for an ANC rally was inconceivable


( SINV ( ADJP-PRD-TPC-1 ( RB Equally ) ( JJ inconceivable ) ) ( VP ( VBZ is ) ) ( SBAR-SBJ ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NNP ANC ) ) ( PP ( VBN given ) ( NP ( DT the ) ( NN chance ) ( S ( VP ( TO to ) ( VP ( VB hold ) ( NP ( DT a ) ( NN rally ) ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB extend ) ( NP ( DT a ) ( NN hand ) ) ( SBAR-ADV ( IN albeit ) ( FRAG ( ADVP-MNR ( RB warily ) ) ) ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN government ) ) ) ) ) ) ) )

Equally inconceivable is that the ANC given the chance to hold a rally would extend a hand albeit warily to the government


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( NN message ) ) ( VP ( VBN read ) ( PRT ( RP out ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN rally ) ) ) ) ) ) ( NP-SBJ ( NP ( VBD exiled ) ( NNP ANC ) ( NNP President ) ( NNP Oliver ) ( NNP Tambo ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD ca ) ( RB n't ) ( VP ( ADVP-MNR ( RB legally ) ) ( VB be ) ( VP ( VBN quoted ) ( PP-LOC ( IN in ) ( NP ( NNP South ) ( NNP Africa ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( S ( NP-SBJ ( DT the ) ( NN country ) ) ( VP ( VBD was ) ( PP-LOC-PRD ( IN at ) ( NP ( DT a ) ( NNS crossroads ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP de ) ( NNP Klerk ) ) ( VP ( MD may ) ( ADVP-TMP ( RB yet ) ) ( VP ( VB earn ) ( NP ( NP ( DT a ) ( NN place ) ) ( PP-LOC ( IN among ) ( NP ( NP ( DT the ) ( NNS peacemakers ) ) ( PP ( IN of ) ( NP ( PRP$ our ) ( NN country ) ) ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ chooses ) ( NP ( NP ( DT a ) ( NN path ) ) ( PP ( IN of ) ( NP ( JJ genuine ) ( JJ political ) ( NN settlement ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a message read out at the rally exiled ANC President Oliver Tambo who ca n't legally be quoted in South Africa said the country was at a crossroads and that Mr. de Klerk may yet earn a place among the peacemakers of our country if he chooses a path of genuine political settlement


( S ( INTJ ( RB Still ) ) ( NP-SBJ ( DT this ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB mean ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( CC either ) ( NP ( DT the ) ( NN government ) ) ( CC or ) ( NP ( DT the ) ( NNP ANC ) ) ) ( VP ( VBZ is ) ( VP ( VBG changing ) ( NP ( NNS stripes ) ) ) ) ) ) ( CC or ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT either ) ) ( VP ( VBZ has ) ( VP ( VBN moved ) ( ADVP-CLR ( RB significantly ) ( RBR closer ) ( PP ( TO to ) ( NP ( DT the ) ( JJ other ) ) ) ) ) ) ) ) ) ) ) )

Still this does n't mean that either the government or the ANC is changing stripes or that either has moved significantly closer to the other


( S ( S ( NP-SBJ ( DT The ) ( NN government ) ) ( VP ( MD may ) ( VP ( VB ease ) ( NP ( NN repression ) ) ( PP-LOC ( IN in ) ( NP ( DT some ) ( NNS areas ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP it ) ) ( ADVP-TMP ( RB still ) ) ( VP ( VBZ keeps ) ( NP ( DT a ) ( JJ tight ) ( NN grip ) ) ( PP-LOC ( IN in ) ( NP ( NNS others ) ) ) ) ) )

The government may ease repression in some areas but it still keeps a tight grip in others


( S ( PP ( IN For ) ( NP ( NN instance ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ releases ) ( NP ( NNP Mr. ) ( NNP Sisulu ) ) ( PP ( IN without ) ( NP ( NNS conditions ) ) ) ) ) ( RB yet ) ( S ( NP-SBJ-1 ( NP ( PRP$ his ) ( NN son ) ) ( NP ( NNP Zwelakhe ) ) ( NP ( DT a ) ( NN newspaper ) ( NN editor ) ) ) ( VP ( VBZ is ) ( VP ( VBN restricted ) ( PP-CLR ( TO to ) ( NP ( PRP$ his ) ( NN home ) ) ) ( NP-TMP ( NP ( RB much ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN day ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN allowed ) ( S ( VP ( TO to ) ( VP ( VB work ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN journalist ) ) ) ) ) ) ) ) ) ) )

For instance it releases Mr. Sisulu without conditions yet his son Zwelakhe a newspaper editor is restricted to his home much of the day and is n't allowed to work as a journalist


( S ( NP-SBJ-1 ( DT The ) ( NNP ANC ) ) ( VP ( VBZ vows ) ( S ( VP ( TO to ) ( VP ( VB keep ) ( PRT ( RP up ) ) ( NP-CLR ( NN pressure ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NN government ) ) ) ) ) ) ) )

The ANC vows to keep up pressure on the government


( S ( NP-SBJ ( NNS Speakers ) ) ( NP-TMP ( NN yesterday ) ) ( VP ( VP ( VBD called ) ( PP-CLR ( IN on ) ( NP-3 ( JJ foreign ) ( NNS governments ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB increase ) ( NP ( NP ( NNS sanctions ) ) ( PP ( IN against ) ( NP ( NN Pretoria ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD urged ) ( NP-1 ( NP ( NNS supporters ) ) ( PP-LOC ( IN inside ) ( NP ( DT the ) ( NN country ) ) ) ) ( S ( VP ( TO to ) ( VP ( VB continue ) ( S ( VP ( VBG defying ) ( NP ( NP ( NN emergency ) ( NNS restrictions ) ) ( CC and ) ( NP ( NP ( JJ racial ) ( NN segregation ) ) ( VP ( VBN known ) ( PP-CLR ( IN as ) ( NP ( NN apartheid ) ) ) ) ) ) ) ) ) ) ) ) ) )

Speakers yesterday called on foreign governments to increase sanctions against Pretoria and urged supporters inside the country to continue defying emergency restrictions and racial segregation known as apartheid


( S ( S-TPC-2 ( NP-SBJ ( PRP We ) ) ( VP ( MD can ) ( RB not ) ( VP ( VB wait ) ( PP-CLR ( IN on ) ( NP-1 ( DT the ) ( NN government ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB make ) ( NP ( NNS changes ) ) ( PP-MNR ( IN at ) ( NP ( PRP$ its ) ( JJ own ) ( NN pace ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Sisulu ) ) ( VP ( VBD said ) ) )

We can not wait on the government to make changes at its own pace Mr. Sisulu said


( S ( SBAR-PRP ( IN Because ) ( S ( NP-SBJ-3 ( DT the ) ( NNP ANC ) ) ( VP ( VBZ remains ) ( VP ( VBN banned ) ) ) ) ) ( NP-SBJ ( PDT both ) ( NP ( NP ( DT the ) ( NN government ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD approved ) ( NP ( DT the ) ( NN rally ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNS organizers ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD orchestrated ) ( NP ( PRP it ) ) ) ) ) ) ) ( VP ( VBD denied ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( NP-PRD ( DT an ) ( NNP ANC ) ( NN rally ) ) ) ) ) ) )

Because the ANC remains banned both the government which approved the rally and the organizers who orchestrated it denied it was an ANC rally


( S ( NP-SBJ ( NP ( PRP They ) ) ( NP ( DT both ) ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( PRP it ) ) ( NP-PRD ( DT a ) ( JJ welcome ) ( NN home ) ( NN gathering ) ) ) ) )

They both called it a welcome home gathering


( S ( ADVP ( RB Nevertheless ) ) ( NP-SBJ ( NP ( DT an ) ( NNP ANC ) ( NN rally ) ) ( PP ( IN by ) ( NP ( DT any ) ( JJ other ) ( NN name ) ) ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB still ) ) ( NP-PRD ( DT an ) ( NNP ANC ) ( NN rally ) ) ) )

Nevertheless an ANC rally by any other name is still an ANC rally


( S ( NP-SBJ ( DT The ) ( ADJP ( RB recently ) ( VBN released ) ) ( NNS leaders ) ) ( VP ( VBD sat ) ( PP ( ADVP ( RB high ) ) ( IN atop ) ( NP ( DT a ) ( NN podium ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( CD one ) ( NN section ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN stadium ) ( NNS stands ) ) ) ) ) ) )

The recently released leaders sat high atop a podium in one section of the stadium stands


( SINV ( PP-LOC-PRD-TPC-2 ( IN Behind ) ( NP ( PRP them ) ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT a ) ( JJ huge ) ( NNP ANC ) ( NN flag ) ) ( CC and ) ( NP ( NP ( DT an ) ( ADJP ( RB even ) ( JJR bigger ) ) ( NN sign ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD said ) ( S-TTL ( S ( NP-SBJ ( NNP ANC ) ) ( VP ( VBZ Lives ) ) ) ( S ( NP-SBJ ( NNP ANC ) ) ( VP ( VBZ Leads ) ) ) ) ) ) ) ) ) )

Behind them was a huge ANC flag and an even bigger sign that said ANC Lives ANC Leads


( SINV ( PP-LOC-PRD-TPC-2 ( JJ Next ) ( PP ( TO to ) ( NP ( PRP them ) ) ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT the ) ( JJ red ) ( NN flag ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( VBN outlawed ) ( NNP South ) ( NNP African ) ( NNP Communist ) ( NNP Party ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( ADVP-TMP ( RB long ) ) ( VP ( VBN been ) ( NP-PRD ( DT an ) ( NNP ANC ) ( NN ally ) ) ) ) ) ) ) ) ) )

Next to them was the red flag of the outlawed South African Communist Party which has long been an ANC ally


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NNS stands ) ) ) ( NP-SBJ ( NNS people ) ) ( VP ( VP ( VBD waved ) ( NP ( NNP ANC ) ( NNS flags ) ) ) ( VP ( VBD wore ) ( NP ( NNP ANC ) ( NNS T-shirts ) ) ) ( VP ( VBD sang ) ( NP ( NNP ANC ) ( NNS songs ) ) ) ( CC and ) ( VP ( VBD chanted ) ( NP ( NNP ANC ) ( NNS slogans ) ) ) ) )

In the stands people waved ANC flags wore ANC T-shirts sang ANC songs and chanted ANC slogans


( S-1 ( NP-TMP ( NN Today ) ) ( PRN ( SINV ( VP ( VBD said ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Sisulu ) ) ) ) ( NP-SBJ ( DT the ) ( NNP ANC ) ) ( VP ( VBZ has ) ( VP ( VBN captured ) ( NP ( NP ( DT the ) ( NN center ) ( NN stage ) ) ( PP ( IN of ) ( NP ( NP ( JJ political ) ( NN life ) ) ( PP-LOC ( IN in ) ( NP ( NNP South ) ( NNP Africa ) ) ) ) ) ) ) ) )

Today said Mr. Sisulu the ANC has captured the center stage of political life in South Africa


( S ( SBAR-TMP ( IN As ) ( S ( NP-SBJ ( DT a ) ( NN police ) ( NN helicopter ) ) ( VP ( VBD circled ) ( ADVP-LOC ( RB overhead ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Sisulu ) ) ( VP ( VBD repeated ) ( NP ( NP ( NP ( NP ( DT the ) ( NNP ANC ) ( POS 's ) ) ( NNS demands ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN government ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB create ) ( NP ( NP ( DT a ) ( NN climate ) ) ( PP ( IN for ) ( NP ( NNS negotiations ) ) ) ) ) ) ) ) ( S ( S ( VP ( VB Release ) ( NP ( DT all ) ( JJ political ) ( NNS prisoners ) ) ( ADVP-MNR ( RB unconditionally ) ) ) ) ( S ( VP ( VB lift ) ( NP ( NP ( DT all ) ( NNS bans ) ( CC and ) ( NNS restrictions ) ) ( PP ( IN on ) ( NP ( NNS individuals ) ( CC and ) ( NNS organizations ) ) ) ) ) ) ( S ( VP ( VB remove ) ( NP ( DT all ) ( NNS troops ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( JJ black ) ( NNS townships ) ) ) ) ) ( S ( VP ( VB end ) ( NP ( NP ( DT the ) ( NN state ) ) ( PP ( IN of ) ( NP ( NN emergency ) ) ) ) ) ) ( CC and ) ( S ( VP ( VB cease ) ( NP ( DT all ) ( NX ( NX ( JJ political ) ( NNS trials ) ) ( CC and ) ( NX ( JJ political ) ( NNS executions ) ) ) ) ) ) ) ) ) )

As a police helicopter circled overhead Mr. Sisulu repeated the ANC 's demands on the government to create a climate for negotiations Release all political prisoners unconditionally lift all bans and restrictions on individuals and organizations remove all troops from the black townships end the state of emergency and cease all political trials and political executions


( S-2 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( DT these ) ( NNS conditions ) ) ( VP ( VBP are ) ( VP ( VBN met ) ) ) ) ) ( PRN ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ( NP-SBJ-3 ( DT the ) ( NNP ANC ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN prepared ) ( S ( VP ( TO to ) ( VP ( VB discuss ) ( S ( VP ( VBG suspending ) ( NP ( PRP$ its ) ( NN guerrilla ) ( NNS activities ) ) ) ) ) ) ) ) ) ) )

If these conditions are met he said the ANC would be prepared to discuss suspending its guerrilla activities


( S ( S-TPC-1 ( NP-SBJ ( EX There ) ) ( VP ( MD can ) ( VP ( VB be ) ( NP-PRD ( NP ( DT no ) ( NN question ) ) ( PP ( IN of ) ( S-NOM ( NP-SBJ ( PRP us ) ) ( VP ( ADVP-MNR ( RB unilaterally ) ) ( VBG abandoning ) ( NP ( DT the ) ( VBN armed ) ( NN struggle ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

There can be no question of us unilaterally abandoning the armed struggle he said


( S ( PP-TMP ( TO To ) ( NP ( NN date ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP see ) ( NP ( DT no ) ( JJ clear ) ( NN indication ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ serious ) ( PP ( IN about ) ( NP ( NNS negotiations ) ) ) ) ) ) ) ) ) )

To date we see no clear indication that the government is serious about negotiations


( S ( NP-SBJ ( PDT All ) ( PRP$ their ) ( NNS utterances ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ vague ) ) ) )

All their utterances are vague


( S ( S-ADV ( VP ( VBG Echoing ) ( NP ( NP ( DT a ) ( NN phrase ) ) ( PP ( IN from ) ( NP ( NNP Mr. ) ( NNP de ) ( NNP Klerk ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Sisulu ) ) ( VP ( VBD said ) ( S ( VP ( VB Let ) ( S ( NP-SBJ-3 ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( PRP us ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP love ) ( NP ( DT this ) ( NN country ) ) ) ) ) ) ( VP ( VB engage ) ( PP-CLR ( IN in ) ( NP ( NP ( DT the ) ( NN task ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG building ) ( NP ( DT a ) ( JJ new ) ( NNP South ) ( NNP Africa ) ) ) ) ) ) ) ) ) ) ) ) )

Echoing a phrase from Mr. de Klerk Mr. Sisulu said Let all of us who love this country engage in the task of building a new South Africa


( S ( NP-SBJ ( NNP Conseco ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG calling ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( NN redemption ) ) ( PP-TMP ( IN on ) ( NP ( NNP Dec. ) ( CD 7 ) ) ) ( PP ( IN of ) ( NP ( NP ( PDT all ) ( DT the ) ( CD 800,000 ) ( VBG remaining ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( ADJP ( CD 1.875 ) ) ( NNP Series ) ( NNP A ) ( JJ convertible ) ( VBN preferred ) ( NN stock ) ) ) ) ) ( PP ( IN at ) ( NP ( NP ( CD 26.805 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) )

Conseco Inc. said it is calling for the redemption on Dec. 7 of all the 800,000 remaining shares outstanding of its 1.875 Series A convertible preferred stock at 26.805 a share


( S ( NP-SBJ ( DT The ) ( NN insurance ) ( NN concern ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT all ) ( NN conversion ) ( NNS rights ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN stock ) ) ) ) ( VP ( MD will ) ( VP ( VB terminate ) ( PP-TMP ( IN on ) ( NP ( NNP Nov. ) ( CD 30 ) ) ) ) ) ) ) ) )

The insurance concern said all conversion rights on the stock will terminate on Nov. 30


( S ( PP-TMP ( IN Until ) ( NP ( RB then ) ) ) ( NP-SBJ ( NNP Conseco ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN stock ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( JJ convertible ) ( PP ( IN into ) ( NP ( JJ common ) ( NN stock ) ) ) ( PP ( IN at ) ( NP ( NP ( DT the ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NP ( CD 1.439 ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( JJ common ) ( NN stock ) ) ) ( PP ( IN for ) ( NP ( NP ( DT each ) ( NN share ) ) ( PP ( IN of ) ( NP ( VBN preferred ) ( NN stock ) ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ equivalent ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN conversion ) ( NN price ) ) ( PP ( IN of ) ( NP ( NP ( CD 17.50 ) ) ( NP-ADV ( DT a ) ( JJ common ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Until then Conseco said the stock remains convertible into common stock at the rate of 1.439 shares of common stock for each share of preferred stock which is equivalent to a conversion price of 17.50 a common share


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NN trading ) ) ) ( NP-TMP ( NNP Friday ) ) ( NP-SBJ ( NNP Conseco ) ) ( VP ( VBD closed ) ( PP-LOC-CLR ( IN at ) ( NP ( CD 19.50 ) ) ) ( ADVP ( RB down ) ( NP ( CD 25 ) ( NNS cents ) ) ) ) )

In New York Stock Exchange trading Friday Conseco closed at 19.50 down 25 cents


( S-HLN ( NP-SBJ ( NNP APARTHEID ) ( NNS FOES ) ) ( VP ( VBD STAGED ) ( NP ( DT a ) ( JJ massive ) ( JJ anti-government ) ( NN rally ) ) ( PP-LOC ( IN in ) ( NP ( NNP South ) ( NNP Africa ) ) ) ) )

APARTHEID FOES STAGED a massive anti-government rally in South Africa


( S ( NP-SBJ ( QP ( JJR More ) ( IN than ) ( CD 70,000 ) ) ( NNS people ) ) ( VP ( VP ( VBD filled ) ( NP ( NP ( DT a ) ( NN soccer ) ( NN stadium ) ) ( PP-LOC ( IN on ) ( NP ( NP ( DT the ) ( NNS outskirts ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ black ) ( NN township ) ) ( PP ( IN of ) ( NP ( NNP Soweto ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD welcomed ) ( NP ( NP ( VBN freed ) ( NNS leaders ) ) ( PP ( IN of ) ( NP ( DT the ) ( VBN outlawed ) ( NNP African ) ( NNP National ) ( NNP Congress ) ) ) ) ) ) )

More than 70,000 people filled a soccer stadium on the outskirts of the black township of Soweto and welcomed freed leaders of the outlawed African National Congress


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBD was ) ( VP ( VBN considered ) ( S ( NP-PRD ( NP ( NNP South ) ( NNP Africa ) ( POS 's ) ) ( JJS largest ) ( NN opposition ) ( NN rally ) ) ) ) ) )

It was considered South Africa 's largest opposition rally


( S ( NP-SBJ ( NP ( NNP Walter ) ( NNP Sisulu ) ) ( NP ( NP ( NP ( DT the ) ( NNP ANC ) ( POS 's ) ) ( JJ former ) ( NN secretary ) ( NN general ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD served ) ( NP ( CD 26 ) ( NNS years ) ) ( PP-LOC-CLR ( IN in ) ( NP ( NN prison ) ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN released ) ( ADVP-TMP ( NP ( CD two ) ( NNS weeks ) ) ( IN ago ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD urged ) ( NP ( NN peace ) ( NN negotiation ) ( CC and ) ( NN discipline ) ) ) )

Walter Sisulu the ANC 's former secretary general who served 26 years in prison before being released two weeks ago urged peace negotiation and discipline


( S ( S ( NP-SBJ ( NP ( NNP President ) ( NNP de ) ( NNP Klerk ) ( POS 's ) ) ( NN government ) ) ( VP ( VBD permitted ) ( NP ( DT the ) ( NN rally ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN security ) ( NNS forces ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB interfere ) ) ) ) )

President de Klerk 's government permitted the rally and security forces did n't interfere


( S ( NP-SBJ-1 ( NP ( NP ( NP ( NNP Pretoria ) ( POS 's ) ) ( NN approval ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN demonstration ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNP ANC ) ( POS 's ) ) ( JJ conciliatory ) ( NN tone ) ) ) ( VP ( VBD appeared ) ( S ( VP ( VBN aimed ) ( PP-CLR ( IN at ) ( S-NOM ( VP ( VBG setting ) ( PRT ( RP up ) ) ( NP ( NP ( NNS negotiations ) ) ( SBAR-PRP ( S ( VP ( TO to ) ( VP ( VB give ) ( NP ( NNS blacks ) ) ( NP ( JJ political ) ( NNS rights ) ) ) ) ) ) ) ) ) ) ) ) ) )

Pretoria 's approval of the demonstration and the ANC 's conciliatory tone appeared aimed at setting up negotiations to give blacks political rights


( S-HLN ( NP-SBJ ( JJ CONGRESSIONAL ) ( NNS LEADERS ) ) ( VP ( VBD BACKED ) ( NP ( NP ( NP ( NNP Bush ) ( POS 's ) ) ( NN criticism ) ) ( PP ( IN of ) ( NP ( NP ( NNP Nicaragua ) ( POS 's ) ) ( NNP Ortega ) ) ) ) ) )

CONGRESSIONAL LEADERS BACKED Bush 's criticism of Nicaragua 's Ortega


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NNS lawmakers ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN raised ) ( NP ( NP ( DT the ) ( NN possibility ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG renewing ) ( NP ( NP ( JJ military ) ( NN aid ) ) ( PP ( TO to ) ( NP ( DT the ) ( NNPS Contras ) ) ) ) ( PP-TMP ( VBG following ) ( NP ( NP ( NNP Ortega ) ( POS 's ) ) ( NN weekend ) ( NN threat ) ( S ( VP ( TO to ) ( VP ( VB end ) ( NP ( DT a ) ( NN truce ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Senate ) ( NNP Majority ) ( NNP Leader ) ( NNP Mitchell ) ) ( VP ( VBD said ) ( PP-LOC ( IN on ) ( NP ( NNP NBC-TV ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Ortega ) ) ( VP ( VBD had ) ( VP ( VBN made ) ( NP ( DT a ) ( ADJP ( RB very ) ( JJ unwise ) ) ( NN move ) ) ) ) ) ) ) )

While lawmakers have n't raised the possibility of renewing military aid to the Contras following Ortega 's weekend threat to end a truce Senate Majority Leader Mitchell said on NBC-TV that Ortega had made a very unwise move


( S ( NP-SBJ-2 ( NNP Minority ) ( NNP Leader ) ( NNP Dole ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB offer ) ( NP-3 ( DT a ) ( NN resolution ) ) ( NP-TMP ( NN tomorrow ) ) ( S-ADV ( VP ( VBG denouncing ) ( NP ( NP ( DT the ) ( JJ Nicaraguan ) ( NN president ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NNS remarks ) ) ( S ( VP ( VBD came ) ( PP-TMP ( IN during ) ( NP ( NP ( DT a ) ( NN celebration ) ) ( PP-LOC ( IN in ) ( NP ( NNP Costa ) ( NNP Rica ) ) ) ( VP ( VBG marking ) ( NP ( NP ( JJ regional ) ( NNS moves ) ) ( PP ( TO to ) ( NP ( NN democracy ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Minority Leader Dole plans to offer a resolution tomorrow denouncing the Nicaraguan president whose remarks came during a celebration in Costa Rica marking regional moves to democracy


( S ( NP-SBJ ( NNP Ortega ) ) ( VP ( VBD cited ) ( NP ( NP ( VBN renewed ) ( NNS attacks ) ) ( PP ( IN by ) ( NP ( DT the ) ( JJ U.S.backed ) ( NNS rebels ) ) ) ) ) )

Ortega cited renewed attacks by the U.S.backed rebels


( S ( NP-SBJ ( NNS Lawmakers ) ) ( VP ( MD must ) ( VP ( VB decide ) ( NP-TMP ( JJ next ) ( NN month ) ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( DT the ) ( NNPS Contras ) ) ( VP ( MD will ) ( VP ( VB get ) ( NP ( JJ so-called ) ( JJ humanitarian ) ( NN aid ) ) ( PP-LOC ( IN under ) ( NP ( NP ( DT a ) ( JJ bipartisan ) ( NN agreement ) ) ( VP ( VBN reached ) ( PP-TMP ( IN in ) ( NP ( NNP March ) ) ) ) ) ) ) ) ) ) ) ) )

Lawmakers must decide next month whether the Contras will get so-called humanitarian aid under a bipartisan agreement reached in March


( S ( NP-SBJ-1 ( NP ( NNP Spain ) ( POS 's ) ) ( NNP Socialist ) ( NNP Party ) ) ( VP ( VBD claimed ) ( NP ( NP ( NN victory ) ) ( PP-LOC ( IN in ) ( NP ( JJ nationwide ) ( NNS elections ) ) ) ) ( S-ADV ( VP ( VBG saying ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN retained ) ( NP ( PRP$ its ) ( JJ parliamentary ) ( NN majority ) ) ( PP-MNR ( IN by ) ( NP ( CD one ) ( NN seat ) ) ) ) ) ) ) ) ) ) )

Spain 's Socialist Party claimed victory in nationwide elections saying it had retained its parliamentary majority by one seat


( S ( SBAR-ADV ( IN With ) ( S ( NP-SBJ-1 ( PDT all ) ( DT the ) ( NNS votes ) ) ( VP ( VBN counted ) ) ) ) ( NP-SBJ ( DT a ) ( NN government ) ( NN spokesman ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Prime ) ( NNP Minister ) ( NNP Gonzalez ) ( POS 's ) ) ( NN party ) ) ( VP ( VBD won ) ( NP ( CD 176 ) ( NNS seats ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ 350-seat ) ( NNP Cortes ) ) ( CC or ) ( NP ( NP ( JJR lower ) ( NN house ) ) ( PP ( IN of ) ( NP ( NN parliament ) ) ) ) ) ) ) ) ) ) )

With all the votes counted a government spokesman said Prime Minister Gonzalez 's party won 176 seats in the 350-seat Cortes or lower house of parliament


( S ( NP-SBJ ( DT The ) ( NNPS Socialists ) ) ( VP ( VBD held ) ( NP ( CD 184 ) ( NNS seats ) ) ( PP-TMP ( VBG going ) ( PP ( IN into ) ( NP ( DT the ) ( NN balloting ) ) ) ) ) )

The Socialists held 184 seats going into the balloting


( S ( NP-SBJ ( NP ( NNS Thousands ) ) ( PP ( IN of ) ( NP ( NNP East ) ( NNPS Germans ) ) ) ) ( VP ( VP ( VBD attended ) ( NP ( NP ( JJ public ) ( NNS rallies ) ) ( VP ( VBN organized ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP Communist ) ( NN leadership ) ) ) ) ) ) ( CC and ) ( VP ( VBD demanded ) ( NP ( NP ( JJ free ) ( NN speech ) ) ( NP ( NP ( NNS controls ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN security ) ( NNS forces ) ) ) ) ( CC and ) ( NP ( NP ( DT an ) ( NN end ) ) ( PP ( TO to ) ( NP ( JJ official ) ( NNS privileges ) ) ) ) ) ) ) )

Thousands of East Germans attended public rallies organized by the Communist leadership and demanded free speech controls on the security forces and an end to official privileges


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNS gatherings ) ) ( UCP-LOC ( PP ( IN in ) ( NP ( NNP East ) ( NNP Berlin ) ) ) ( CC and ) ( ADVP ( RB elsewhere ) ) ) ) ( VP ( VBD were ) ( VP ( VBN viewed ) ( PP-CLR ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN government ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB stop ) ( NP-3 ( NNS activists ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG staging ) ( NP ( NNS protests ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB press ) ( NP ( PRP$ their ) ( NNS demands ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The gatherings in East Berlin and elsewhere were viewed as part of a government effort to stop activists from staging protests to press their demands


( S ( NP-SBJ ( NP ( NNS Dissidents ) ) ( PP-LOC ( IN in ) ( NP ( NNP Czechoslovakia ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJ pro-democracy ) ( NN movement ) ) ( VP ( VBD was ) ( VP ( VBG growing ) ( PP ( IN despite ) ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( NN move ) ( S ( VP ( TO to ) ( VP ( VB crush ) ( NP ( NP ( DT a ) ( NN protest ) ) ) ( NP-TMP ( NNP Saturday ) ) ( PP-LOC-1 ( IN in ) ( NP ( NP ( NNP Prague ) ( POS 's ) ) ( NNP Wenceslas ) ( NNP Square ) ) ) ) ) ) ) ) ) ) ) ) ) )

Dissidents in Czechoslovakia said the nation 's pro-democracy movement was growing despite the government 's move to crush a protest Saturday in Prague 's Wenceslas Square


( S ( NP-SBJ ( QP ( JJR More ) ( IN than ) ( CD 10,000 ) ) ( NNS demonstrators ) ) ( VP ( VBD had ) ( VP ( VBN called ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ free ) ( NNS elections ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN resignation ) ) ( PP ( IN of ) ( NP ( NNP Communist ) ( NNP Party ) ( NN leader ) ( NNP Milos ) ( NNP Jakes ) ) ) ) ) ) ) ) )

More than 10,000 demonstrators had called for free elections and the resignation of Communist Party leader Milos Jakes


( S ( NP-SBJ ( NNS Police ) ) ( VP ( VBD detained ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 350 ) ) ( NNS people ) ) ) )

Police detained more than 350 people


( S ( NP-SBJ ( NNP Federal ) ( NNS investigators ) ) ( VP ( VBP have ) ( VP ( VBN determined ) ( SBAR ( S ( NP-SBJ ( NP ( DT a ) ( JJ metallurgical ) ( NN flaw ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD developed ) ( PP-TMP ( IN during ) ( NP ( NP ( DT the ) ( NN making ) ) ( PP ( IN of ) ( NP ( DT an ) ( NN engine ) ( NN disk ) ) ) ) ) ) ) ) ) ( VP ( VBD led ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NNP July ) ( NN crash ) ) ( PP ( IN of ) ( NP ( DT a ) ( NNP United ) ( NNPS Airlines ) ( NN jetliner ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Sioux ) ( NNP City ) ) ( NP ( NNP Iowa ) ) ) ) ) ) ( S-ADV ( VP ( VBG killing ) ( NP ( CD 112 ) ( NNS people ) ) ) ) ) ) ) ) ) )

Federal investigators have determined a metallurgical flaw that developed during the making of an engine disk led to the July crash of a United Airlines jetliner in Sioux City Iowa killing 112 people


( S ( NP-SBJ ( NNP Congress ) ) ( VP ( VBD sent ) ( PP-DTV ( TO to ) ( NP ( NNP Bush ) ) ) ( NP ( NP ( DT an ) ( ADJP ( QP ( CD 8.5 ) ( CD billion ) ) ) ( JJ military ) ( NN construction ) ( NN bill ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ cuts ) ( NP ( NP ( NN spending ) ) ( PP ( IN for ) ( NP ( JJ new ) ( NNS installations ) ) ) ) ( PP-EXT ( IN by ) ( NP ( CD 16 ) ( NN % ) ) ) ) ) ) ) ) )

Congress sent to Bush an 8.5 billion military construction bill that cuts spending for new installations by 16 %


( S ( NP-SBJ ( DT The ) ( NN measure ) ) ( ADVP ( RB also ) ) ( VP ( VBZ moves ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 450 ) ( CD million ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Pentagon ) ( NN budget ) ) ) ) ( PP-CLR ( TO to ) ( NP ( JJ home-state ) ( NNS projects ) ) ) ( PP-CLR ( IN from ) ( NP ( JJ foreign ) ( NNS bases ) ) ) ) )

The measure also moves more than 450 million in the Pentagon budget to home-state projects from foreign bases


( S ( NP-SBJ-1 ( UCP ( NNP U.S. ) ( CC and ) ( JJ Soviet ) ) ( NNS officials ) ) ( VP ( VBP are ) ( S ( VP ( TO to ) ( VP ( VB open ) ( NP-4 ( NP ( DT a ) ( JJ new ) ( NN round ) ) ( PP ( IN of ) ( NP ( NNS talks ) ) ) ) ( NP-TMP ( NN today ) ) ( S-ADV ( VP ( VBN aimed ) ( PP-CLR ( IN at ) ( S-NOM ( VP ( VBG reducing ) ( NP ( NNS chemical-weapons ) ( NNS arsenals ) ) ( PP-LOC ( IN amid ) ( NP ( NP ( NN superpower ) ( NNS differences ) ) ( PP ( IN over ) ( SBAR ( IN whether ) ( S ( VP ( TO to ) ( VP ( VB stop ) ( S ( VP ( VBG making ) ( NP ( DT the ) ( NNS gases ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

U.S. and Soviet officials are to open a new round of talks today aimed at reducing chemical-weapons arsenals amid superpower differences over whether to stop making the gases


( S ( NP-SBJ ( NP ( DT The ) ( NNS talks ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ ( NP ( NNP Bush ) ) ( CC and ) ( NP ( JJ Soviet ) ( NNP Foreign ) ( NNP Minister ) ( NNP Shevardnadze ) ) ) ( VP ( VBD unveiled ) ( NP ( NNS proposals ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB scrap ) ( NP ( VBG existing ) ( NNS weapons ) ) ) ) ) ) ) ) ) ) )

The talks in New York are the first since Bush and Soviet Foreign Minister Shevardnadze unveiled proposals in September to scrap existing weapons