Clinton to Sign Budget, Tax Cuts

In search of his place in history, President Clinton today will sign landmark legislation that aims to balance the U.S. budget and cut taxes at the same time. The legislation was approved by the Republican-controlled Congress last week, and to show the bipartisan nature of the bill, the White House has invited House Speaker Newt Gingrich to join Clinton in making remarks at the South Lawn ceremony. Enactment of the law may well be the crowning achievement of Clinton's second term as he attempts to secure a favorable place in history while presiding over a nation at peace and enjoying a booming economy.

Federal Smoking Ban Widened

President Clinton reportedly plans to toughen the crackdown on smoking on federal property. The U.S. military and many federal agencies already restrict smoking in their facilities. But the Washington Post reported today that Clinton plans to sign this week an executive order that would ban smoking in virtually every building owned or leased by the federal government. The Post says the order also would forbid outdoor smoking in courtyards and near building entrances. Exceptions would include rooms with separate ventilation systems and residential units such as military barracks.

Clinton Speaks on Funds Flap

President Clinton says he felt "sick at heart" when he first learned the Democratic Party accepted illegal political contributions from foreign sources. In an interview with Fox News Channel, Clinton said he was angry that donations were not checked more carefully. He said he was also angry because the fund-raising controversy gave the Democrats an "unfair image" although the funds in question represented less than 2 percent of the money raised in 1996. A Senate committee has completed four weeks of hearings into campaign finance irregularities, exposing some questionable aspects of Clinton's 1996 re-election campaign. But so far there's been no hard evidence of a Chinese plot to influence the outcome of the election, as Republicans suggested at the start of the hearing.

Korea Talks Set in New York

After more than a year of haggling, the impoverished communist state of North Korea opens talks in New York today with China, the U.S. and South Korea aimed at securing lasting peace on the Korean peninsula. North Korea created a positive mood for the talks with a goodwill gesture yesterday, handing over the remains of four U.S. soldiers killed during the 1950-1953 Korean War. Today's meeting of officials from the four countries at New York City's Columbia University has a limited purpose -- to set a date, time, place and agenda for the opening of substantive negotiations, probably in September.

US: Canada Relations Not Hurt

Commerce Secretary William Daley is scheduled to continue a trade mission to Canada today by meeting with separatist Quebec Premier Lucien Bouchard before going to Ottawa for talks with Canada's international trade and industry ministers. Daley's three-day trade mission ends in Toronto tomorrow, but he also has a one-day visit to Vancouver scheduled for Thursday. During his mission, Daley is focusing on trade opportunities for small- and medium-sized businesses. Yesterday, Daley said the salmon fishing dispute between Canada and the United States will not hurt trade relations between the two countries.

Helms Defiant on Weld Nomination

Senate Foreign Relations Committee Chairman Jesse Helms says he has no plans to hold a confirmation hearing on William Weld, President Clinton's nominee to be ambassador to Mexico, despite reports that Republicans might pressure him to do so. Helms, a conservative North Carolina Republican, has refused to hold a hearing on the nomination of the moderate Republican and former Massachusetts governor. White House spokesman Mike McCurry had applauded comments by the second-ranking Republican on the committee, Sen. Richard Lugar of Indiana, who says he is willing to defy Helms to try to force a hearing on Weld's nomination.

CIA: Govt. Lied About Spy Planes

National security officials systematically lied to explain reports of UFOs at the height of the Cold War, according to a CIA study. In what amounts to the first admission of federal deception on the issue, the study said most reports of unidentified flying objects in the 1950s and 1960s stemmed from glimpses of supersecret U.S. spy planes, the U-2 and the SR-71 Blackbird. Rather than disclose the existence of these aircraft, developed to photograph enemy targets from high altitudes, the military put out false stories. The study was written by a historian at the National Reconnaissance Office, which operates military satellites.

Will Tobacco Deal Get Tougher?

An adviser to President Clinton says the $368.5 billion tobacco deal between states and the tobacco industry needs to be toughened to include stiffer penalties against tobacco companies. Domestic policy adviser Bruce Reed also says the White House wants greater power given to the Food and Drug Administration to regulate tobacco as a drug. "It needs to be strengthened in some key ways," Reed told NBC's "Today" program. Giving the FDA more power, Reed said, is "central to our ability to reduce smoking and reduce nicotine addiction over time."

Clean Air Standards Battle

Three House members claim to have enough support to fend off efforts to delay or overturn the Environmental Protection Agency's controversial new clean air standards. Reps. Henry Waxman, Sherwood Boehlert, and Christopher Shays saymore than 145 House colleagues have promised to back the strict new limits on smog and soot issued last month and due to come into effect within the next eight years. The battle lines over the new standards fall largely between regions, not parties, with northeastern states eager to see neighboring upwind states curb their pollution to help stop smog blowing into their area, while industrial states do not want to spend the money on new emissions cuts.

Giuliani Denies Affair

New York City Mayor Rudolph Giuliani is vehemently denying that he is having an affair with a 32-year-old aide and his marriage is ruined. Giuliani yesterday called a report in Vanity Fair magazine "untrue" and "malicious." Vanity Fair reports in its September issue that the 53-year-old mayor is carrying on an extramarital affair with communications director Cristyne Lategano that started during out-of-state campaign trips in 1994. Vanity Fair says the mayor's 13-year marriage has broken down over Lategano's closeness to Giuliani. The report comes just three months before the city's mayoral election in which Giuliani is the heavy favorite for re-election.

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