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Gold Market


GoldAvenue Attempts to Boost Gold Prices


Buy gold on the Worldwide Web.

J.P. Morgan, the investment bank, and two of the gold sector's leading
companies are starting an internet site selling "all things gold" in an
attempt to boost the flagging price.

The site, to be called GoldAvenue, is backed by South Africa's AngloGold, the
world's largest gold miner, and Swiss-based PAMP, the world's largest private
gold refiner.

The three planned to sign an agreement today to form a joint venture, which
was expected to go online in the second half of this year. The three
companies are putting up $20m in initial capital for GoldAvenue's first year.

The organisers said the web site would eventually be a one-stop shop for gold
investors and merchants although its initial focus will be on selling gold to
retail customers.

Bobby Godsell, AngloGold chief executive, said GoldAvenue was an attempt to
find new gold buyers now that central banks have become sellers.

Market conditions deteriorated to the point last year that European central
banks agreed in September to cap their gold sales during the next five years.

"We have been arguing that if the gold industry is going to take charge of
its destiny, it's going to have to go out and find a customer base directly,"
Mr Godsell said.

To that end, GoldAvenue will sell everything from gold watches and chains to
individual grams of the metal. For investors, the minimum balance will be
only $50.

"We want to be all things gold," said Mehdi Barkhordar, GoldAvenue's chief
executive and managing director of PAMP. "When you think of gold, you think
of us."

The organisers are looking to target the US market first, before moving into
emerging markets, where gold remains a favoured investment.

"The problem in western markets is gold investments are inaccessible,"
Godsell said. "Western markets, we think, have been underdeveloped."

The organisers hope the site would eventually feature business-to-business
gold trading. However, Mr Barkhordar said the partners had no timetable for
such trading and were concentrating on getting the retail operation started
before the Christmas season.

William Winters, head of J.P. Morgan's markets arms, said the bank would
provide trading capabilities and vault services to the joint venture.

GoldAvenue is the latest in a series of internet ventures that J.P. Morgan
has announced in recent months, most of them looking to commercialise
existing businesses.
The Financial Times, April 11, 2000


US Politics


Criminal Indictment of Clinton Still Possible


Don't go off the deep end, Mr. Chump President.

Independent counsel Robert W. Ray considers the investigation of President
Clinton's relationship with Monica S. Lewinsky an "open" matter and is
actively considering seeking an indictment against the president after he
leaves office next January.

Rather than winding down the independent counsel's office after the departure
of Kenneth W. Starr and Clinton's impeachment trial, Ray recently hired six
new lawyers with significant prosecutorial and other experience, as well as
one investigator, and has an FBI agent detailed to his staff. In addition,
Ray has projected spending $3.5 million over the next six months, an increase
over the $3.1 million spent during the past half-year.

Among the criminal charges being weighed against Clinton in the Lewinsky
matter are perjury, obstruction of justice, making false statements, and
conspiracy to commit those crimes when he was questioned under oath about his
relationship with the former White House intern.

"It is an open investigation," Ray said in an interview yesterday. "There is
a principle to be vindicated, and that principle is that no person is above
the law, even the president of the United States. That is what we have been
charged with doing."

Ray previously has said he would defer any decision about whether to indict
Clinton until after the November elections. But the new revelations about the
aggressiveness of the probe indicate that this is not an academic exercise
and that an indictment of the president is under serious consideration.

Clinton's private attorney, David E. Kendall, declined to comment.

Reid Weingarten, a former senior trial attorney in the Justice Department's
public integrity section and a Washington defense lawyer, said yesterday that
the public would be surprised by the direction of Ray's investigation.

"I believe the great majority of Americans fervently wish that this matter
was behind them and they will be chagrined by the news," Weingarten said. "I,
however, have a great deal of experience with independent counsels, and I am
not the least bit surprised that this one, like so many others, has great
difficulty in closing the book."

In addition to examining Clinton's testimony about Lewinsky, Ray's
investigation involves allegations that Clinton made false statements about
his relationship with Kathleen E. Willey, and that others subsequently sought
improperly to silence her.

Ray, 40, does not intend to make a decision about whether to indict Clinton
until after the president is out of office next January, because the
indictment of a sitting president would be subject to constitutional
challenges that would go on for years. Under the independent counsel law,
Ray, who joined the office about a year ago and has been serving as
independent counsel for six months, is required to act in a speedy manner.
"By waiting, I am being prompt," Ray said yesterday.

Ray's budget has increased in part because of a federal pay increase. In
addition, his projected contracting expenses increased by nearly $200,000
because many experienced prosecutors involved in the Lewinsky matter, who
left the independent counsel's office over the past year, are likely to be
retained on a contractual basis to provide guidance.

Ray said he recently hired seven new officials to replace people who
departed. Overall, the independent counsel's office has 44 employees,
including lawyers, investigators and support staff, 10 fewer than it did one
year ago.

"There is a process, and a prosecutorial judgment has to be made," Ray said.
"That responsibility is to determine whether a crime was committed and, if
so, whether it is appropriate to" seek an indictment. "Even with regard to
the president of the United States, that process should be followed and that
is what I intend to do."

In his impeachment referral to Congress, Starr said he believed there was
"substantial and credible information" that Clinton lied under oath, both
before the grand jury and in his deposition in the Paula Jones civil lawsuit,
and that he obstructed justice in trying to cover up his affair with
Lewinsky.

Starr suggested to the House Judiciary Committee in November 1998 that he had
not reached a conclusion on the tougher question of whether the evidence
against Clinton was enough that a "fair-minded jury would convict based on
these facts, with the witnesses . . . as we find them, beyond a reasonable
doubt."

The House voted to impeach Clinton on charges of perjury and obstruction of
justice, but the Senate voted not to remove him from office.

Last year, a federal judge in Arkansas ordered Clinton to pay nearly $90,000
to Paula Jones's legal team for giving false testimony about his relationship
with Lewinsky, marking the first time that a sitting president has been
punished for contempt of court. It is too soon to determine whether the
judge's actions would be admissible in a criminal trial or considered too
prejudicial to present to a jury.

Ray said his hiring has been driven by the departures of key lawyers and the
need to have a team equipped to carry out the mandate under the independent
counsel law to review the allegations against the president.

"Part of my job is to hire a sufficient number of people to responsibly and
fairly conduct this investigation," Ray said. "We've had eight people leave
since I became independent counsel . . . and it is important to have a fully
staffed office."

Ray, who recently announced that he had completed an investigation into the
White House's improper handling of FBI files, is likely to issue final
reports this summer about the White House travel office firings and by fall
about the Clintons' Whitewater investment. Ray's office will not seek
indictments in either case, meaning Hillary Rodham Clinton's Senate campaign
in New York will not be tarnished by criminal charges.

But depending on the timing of Ray's reports, which he submits to a special
three-judge panel, and the timing of their public release by the judges, the
Senate race still could be influenced by information in the reports. If the
Whitewater report is not ready for release in September, the independent
counsel's office will wait until after the election, avoiding allegations of
an "October surprise."
The Washington Post, April 11, 2000
-----
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