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President Clinton challenged world leaders to work together to control illegal drugs. In the opening address at a UN special session on the issue, he praised Mexico for its cooperation in fighting the movement of narcotics and announced a $2 billion antidrug media campaign aimed at young people.
Retired Admiral Thomas Moorer backed away from a CNN-Time magazine report quoting him as confirming that the US had used sarin nerve gas in the Vietnam War. In an interview with Reuters, Moorer cited "rumors," but said he had no personal knowledge of sarin use in the conflict. Defense Secretary William Cohen ordered an inquiry into the report, but said he also knew of no evidence to support the allegations.
Clinton asked Congress for $294 million to bolster US defenses against biological- or chemical-weapon attacks. Most of the funds would be used for equipment, training, and planning for chemical or biological terrorism - and to build up civilian stockpiles of various antidotes.
Most of the military will continue to train men and women together despite sexual harassment problems, Defense Secretary Cohen announced. But he noted the Marine Corps would not end its tradition of training men and women separately - and the Army would continue to train men separately for frontline combat units.
The Federal Trade Commission filed a narrowly focused complaint against Intel Corp., saying it illegally abused its monopoly over computer microprocessors to restrain competition. Intel is charged with violating fair-trade law by withholding key information from three computermakers in an attempt to stifle competition and innovation. The case will be heard by an administrative-law judge in the fall.
Honda Motor Co. agreed to pay $17.1 million and extend warranties to settle charges that it disabled pollution monitors on 1.7 million cars and vans. The total cost could reach $267 million if future free auto-repair work is included, Justice Department officials said. Separately, Ford Motor Co. agreed to a $7.8 million settlement in a case involving tampering with emission controls on 60,000 Econoline vans.
The US banned American investments in Yugoslavia and froze that country's assets in the US in response to violence against Albanians in Kosovo. The action came just hours after the European Union announced similar measures. State Department spokesman James Rubin said military intervention in the Kosovo conflict had not been ruled out.
A strike in Michigan stopped work at two General Motors assembly plants and slowed production at three others. A facility in the town of Orion, north of Detroit, and another in Kansas City, Kan., were idled after a strike by nearly 3,400 workers at the GM Metal Center in Flint, Mich., caused shortages of sheet-metal parts. Other affected operations were a light-truck plant in suburban Moraine, Ohio, a Chevrolet Lumina and Monte Carlo facility in Oshawa, Ontario, and a Buick plant in Flint.
Actor Charlton Heston was elected president of the National Rifle Association at its annual convention, held in Philadelphia.
Texas Gov. George W. Bush asked Clinton for US firefighting resources, saying his state was suffering a severe drought. Bush said there was an "imminent risk" of fires in 207 of 254 Texas counties because rainfall totals for 1998 are 80 percent below normal. A Bush spokeswoman said major fires had already burned 67,000 acres.
The Federal Reserve approved a merger of the US operations of two big Swiss banks. Fed governors approved the melding of Swiss Bank Corp. and Union Bank of Switzerland to create United Bank of Switzerland. With some $706 billion in assets, it would rank as the world's second-biggest bank, after Bank of Tokyo-Mitsubishi.
Gen. Abdusalam Abubakar was hastily sworn in as Nigeria's ninth military ruler after former leader Sani Abacha's death. The US, European Union, and Nigerian opposition leaders urged Abubakar to begin a peaceful transition to democratic civilian rule even before the country's scheduled presidential elections Aug. 1.
New international sanctions against Yugoslavia because of its offensive against Albanian separatists in Kosovo were met with scorn. Belgrade government officials called the measures imposed by the US and European Union "unnecessary, strange, and unreasonable." Meanwhile, Russian President Yeltsin offered to use his influence with the Yugoslav government to help resolve the Kosovo conflict.