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January 27, 2000 - Image 5

Resource type:
The Michigan Daily, 2000-01-27

Disclaimer: Computer generated plain text may have errors. Read more about this.

The Michigan Daily - Thursday, January 27, 2000 - 5A

BEIJING (AP) - Trying to tight-
en its hold on the fast-moving
Internet, China is ordering compa-
nies to register software used to
transmit sensitive data and threaten-
ipg punishment for letting govern-
ment secrets slip onto the Web.
The moves, set out in regulations,
could scare off foreign firms eager to
*p China's bursting Internet market
and retard electronic commerce in its
infancy. They also underscore the
Chinese leadership's ambivalent
desire to exploit the Internet for busi-
ness while constricting information
considered threatening to communist
"It's like saying you want to devel-
op railroads and then throwing down
different gauge track not used any-
here else in the world," said
William Soileau, an information
technology lawyer with Denton Hall
in Beijing.
Rules announced yesterday for-
mally extend China's vague state
secrets law to the Internet. Everyone,
frpmp Internet sites to chat-room
users, must gain approval from agen-
cies protecting government secrets
before publishing previously unre-
gased information on the Web,
cording to the States Secrecy
Bureau regulations released in
People's Daily.
Perhaps most chilling for business
are regulations ordering companies
and individuals to register with the
government by Monday the software
used to protect transfers of sensitive
information. Forms require compa-
nies to hand over the serial numbers
d list the employees using the soft-
ware, possibly making it easier for
the government to track use.
So-called encryption software is
used to prevent prying into every-
thing from electronic mail to bank-
ing settlements. Popular products
like Netscape browsers contain
encryption software, as do some
Microsoft products.
"This can potentially compromise
'e trade secrets of companies," said
y Hu of the United States
Information Technology Office, an
industry lobbying group.
Hu said China was worried that
foreign encryption technology might
contain secret pathways enabling
outsiders to peer into Chinese busi-
nesses or government agencies.

Dow Jones Industrial Averae, ASDAQ and
S&P 500 Composite for eek 1/20-1/27

DJIA Close
1/20 11,351.30.
1/21 11,251.71
1/24 11,008.17
1/25 11,029.89
1/26 11,032.99




S&P Close


Retailers file
utaadebit cards

Highlights from the week:Yesterday Federal Reserve Chair Alan Greenspan expressed concern about the
U.S. margin debt, which is the money lent by banks to brokers to buy stocks, and this caused the NASDAQ
to close lower. Investors moved their money out of volatile technology stocks, as a couple of majorcom-
panies announced warnings about their upcoming quarter reports. Also yesterday, due to a strong U.S. 30-
year bond, people shifted their excess money from the tech stocks into the financial sector. Tuesday saw
the first positive close for the Dow in five sessions as American Express posted a record quarter. So far,
67 percent of the 218 companies that have reported earnings in the S&P 500 have beat Wall Street expec-
tations. Last Friday saw the NASDAQ close above 4,200 rark for the first time in its history and last
Thursday's NASDAQ market set a record for having 1.84 billion shares traded.
What is the Dow Jones and NASDAO Industrial Average? The DJIA represents 30 stocks traded on the
New York Stock Exchange (NYSE) and NASDAQ and are all major factors in their respective industries.
These stocks are widely held by individuals and institutional investors. Many financial advisers think of it
as a gool indicator in telling whether the NYSE is doing well or poorly.
What is the NASDAQ Composite? The NASDAQ is the fastest growing stock market in the U.S. due to
it being a screen-based stock market, compared to a trading floor market like the NYSE. It also has almost
all of the technological stocks available for trading, which has proved to be a very volatile industry in the
last couple of years.
What is the S&P 500? The S&P 500 is a marketvalue weighted index composed of 400 industrial
stocks, 20 transportation, 40 financial, and 40 utility. It is a far broader measure than the DJIA
because it takes into account 500 different stocks traded on the two main exchanges (NYSE and
NASDAQ-AMEX) compared to the DJIA's 30 all traded on the NYSE and NASDAQ.
Compiled by Da r iStaJfReporrer Kevin Magnusonfoivm wirreports.
MSA passes Code aenmet

The Washington Post
A group of retailers, led by Wal-
Mart Stores Inc., is seeking S8.1 billion
in damages from Visa and MasterCard
in an antitrust suit that accuses the big
bank-card associations of using their
market dominance to force stores to
accept their high-cost debit cards.
The case, pending since 1996,
received new impetus recently when a
federal judge in Brooklyn refused
requests for further postponement from
Visa and MasterCard and scheduled a
hearing next month on whether to treat
the case as a class action.
The judge also granted a Justice
Department request for access to evi-
dence and other records obtained by the
retailers for possible use in a govern-
ment antitrust suit that is pending in
another federal court in New York.
The private case, which includes
many of the nation's largest retailers,
involves the "interchange fee" banks
charge when stores accept a debit
transaction. When a customer uses an
ATM card, the transaction is activated
by a personal identification number
and processed electronically, and typi-
cally costs about 8 cents.
But if the customer uses a Visa
Check Card or MasterCard's equivalent
- often the same piece of plastic as
the AIM card - the transaction is ver-
ified by the customer's signature and
processed off-line. In that case, the fee

is 1.6 percent of the amount - 64
cents for the typical debit transaction
amount of S40, or $1.60 for a $100
The retailers would like to refuse the
Visa and MasterCard debit cards, but
both associations have what they call
an "honor-any-card" rule requiring
retailers to accept any proffered valid
Visa or MasterCard. Under this rule, if
a retailer refuses a valid debit card, it
could lose the right to accept Visa and
MasterCard credit cards.
"It's a tying case," said Lloyd
Constantine, of Constantine &
Partners, the retailers' lead attorney.
"Visa and MasterCard both say, 'If
you take our credit cards, you have to
take our debit cards and you can't
refuse to take them.'
"The issue in a tying case is whether
or not (the company involved) has mar-
ket dominance," he added, and "with a
retailer the size of Wal-Mart, if they are
forced to take them, then where does a
small retailer fall'?"
Constantine said retailers treat the
higher costs as part of their overhead;
those costs are paid by all customers,
not just Visa and MasterCard debit-
card users.
Both Visa and MasterCard said the
honor-all-cards rule ensures that con-
sumers have the choices they want, and
they expressed confidence in the event
of a trial.

Continued from Page IA
change this," Rafi said.
The first major change occurs itn the first paragraph of the
document where the values are listed. Now, instead of read-
ing that the values are "essential" to all students, there are
"some" values which might be held by students.
"We weren't really happy with those values being essential
values of the entire University. The University was trying to
tell us all what to think," Trapani said.
At the end of the same paragraph MSA added a statement
ensuring that faculty and staff are subject to the same Code
that students are.
"What is expected at this University should be the same for
everyone," Elias said.
Another change affecting faculty and staff is that they can no
longer submit complaints that students have violated the Code.
MSA members reasoned that if faculty and staff aren't respon-
sible under the Code, they shouldn't charge students under it.
"We wanted to make sure that the people being punished
are those bringing the charges," Rafi said.
Under the proposed Code, students will be allowed to
choose whether they want to have the same or separate arbi-
trations when two or more students are charged with a crime
under the Code. Also, students will be given the choice to
have legal representation at arbitration bearings.
"As the Code stands now, students are able to have an
adviser at the hearings with them, but the adviser is not
allowed to speak during the trial. Our amendment allows stu-
dents to hire a lawyer to protect their rights," Rafi said.
Transcripts from Code hearings are legitimate evidence in
cases brought to trial in court. Without legal advise, some stu-

dents reveal information inadvertently which is later used
against them in legal hearings.
Guilt "beyond a reasonable doubt" will be necessary for
conviction in cases when students are accused of serious vio-
lations, but "clear and convincing" evidence will be the
guideline for all other cases.
In the case of an emergency suspension, students do not
have to be informed of the reason for why they are being sus-
pended. The assembly feels that all students should be
informed of the allegations and presented with evidence.
"Now, students are given the opportunity to defend them-
selves before being suspended, but they don't have to be told
what they are defending themselves against," Elias said.
The final major change to the Code concerned students
being charged with a crime under the Code and in a court of
law at the same time - often referred to as "double jeop-
Currently, students can choose to delay their Code hearing
to face the trial in court. But, they are suspended from the
University until after the trial.
"By doing this, the University is assuming that the student
is guilty until proven innocent. We want to change this so that
unless the student poses a serious threat to the University
community, they will be allowed to stay in school until
proven otherwise," Rafi said.
MSA unanimously voted in favor of the changes to the
Code. Elias and Rafi said they are hopeful that the amend-
ments will go through.
"This is such a big issue that affects all students, even
though they don't know it," Elias said. "This is the first time
this year MSA has spent so much time on one issue and we
have a lot more work to do. But, based on what we have
already done, we'll accomplish the job."

Continued from Page 1A
we'll see health care and some envi-
ronmental projects move forward,"
Schafer said.
Kelly Chesney, spokesperson for the
Department of Management and
Budget, was more specific as to what
Engler's proposal will include when it
is unveiled at the Capitol by State
Budget Director Mary Lannoye.
Chesney said tax relief, funds for

local government, health care and other
new initiatives will all be provided for.
Despite Schwarz's assertion that the,,
budget "needs work," Chesney said
she is hopeful the proposal will move
through the Legislature without signif-
icant opposition.
"I hope that the budget will be
received well and it will be expedited
through the legislative process so that
the citizens of the state will see the
positive impact of the budget,"
Chesney said.

Continued from Page 1A
Former Regent Deane Baker also
attended the ceremony. Baker, who
served on the board during
Pierpont's vice presidency, said
Pierpont was respected during his

Pierpont also served as the
University's chief financial officer
and was a business and accounting
"Bill Pierpont earned and enjoyed
his reputation as a financial wizard,"
Baker said. "He was a known leader
who inspired confidence and loyal-

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