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García had no choice politically but to resist foreign creditors. Peru's fragile democratic government, only five years old, must contend with a rebel guerrilla insurgency as well as an economy in crisis. Inflation runs at 250%, and about two-thirds of the labor force is either unemployed or working part time. Worst of all, García alleges, wealthy Peruvians have been frantically buying U.S. dollars and putting money into bank accounts abroad. To stop this capital flight, García shut down Peru's banks after he became President. When he allowed them to reopen two days later, accounts...

Author: /time Magazine | Title: Defiant Debtor | 4/18/2005 | See Source »

Allied leaders who must contend with large and vocal antinuclear movements within their own countries also expressed worry that Reagan is not countering Soviet arms-reduction proposals vigorously enough. West German Chancellor Helmut Kohl was impressed by Reagan's private notes, which he showed the allies, detailing various arms-control scenarios that might be played out at the summit. But Thatcher, supported by Canadian Prime Minister Brian Mulroney, thought more was required. A spokesman quoted her as telling Reagan at the minisummit that "you have to re-present or reformulate your arms-control position before Geneva or there will...

Author: /time Magazine | Title: Let's Change the Subject | 4/18/2005 | See Source »

...field questions from a carefully selected group of around 80 young people - an educational chat aimed at explaining the constitution and reversing the trend toward no. Chirac stressed that the constitution will protect Europe from "the ultraliberal current" of globalization rather than succumb to it as the no forces contend. He warned that France would "cease to exist politically" if no prevailed, and urged voters to seek "strength in union" within the E.U. by embracing a constitution whose content and inspiration he described as "essentially French." Despite Chirac's often impassioned arguments, a poll taken the next day found...

Author: /time Magazine | Title: Prime-Time Politics | 4/17/2005 | See Source »

...working from the world's war zones and other unsavory hot spots, the sound of civilization was Penny's marvelous, sprightly voice. But another thing that Penny knew was when work could wait. She once instructed a distraught correspondent, who had both a deadline and a screaming infant to contend with, to give the child a bubble bath and come back to the story later. Penny showed us all how to balance professionalism with parenthood: her young son Joseph would dart around the office for a few hours every Saturday, invariably dressed as Spiderman...

Author: /time Magazine | Title: Letters | 4/16/2005 | See Source »

...Cardinals have signed the petition, and if one of them is elected Pope, he can duly ignore any suggestion that the Cardinals put forth. It's a reminder, of course, that this is not an election for a four-year term of a leader who will have to contend with political pressures from his peers or governmental balance of powers. It is an election of an absolute monarch for a lifetime term. Big stakes indeed-even for Boy Scouts...

Author: /time Magazine | Title: Vatican Diary: A New Papacy Begins | 4/16/2005 | See Source »

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