The Michigan Daily - Thursday, January 27, 2000 - 5A (Yhinese regulate Internet 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 rule. "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 Change 138.06 99.59 -243.54 +21.72 +3.10 NASDAQ Close 4,189,51 4,235.40 4,096.08 4,167.37 4,069.91 Change +38.22 ±45.89 -139.32 +71.29 97.50 S&P Close 1,445.57 1,441.36 1,401.91 1,410.04 1,404.09 Change -10.33 -4.21 -39.45 +8.51 -5.94 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 transaction. 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- ardy." 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." BU DGET 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. PIERPONT 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 tenure. Pierpont also served as the University's chief financial officer and was a business and accounting professor. "Bill Pierpont earned and enjoyed his reputation as a financial wizard," Baker said. "He was a known leader who inspired confidence and loyal- tv. f t Y a Ns I 7r'' "''4 C 9 t t k f 2Fidk;F W'q ° ifpY'too 6.a !f ad , °^ r9 a p pawx'r*-"°''kf a ,f tn. 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