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NEWSWEEK


April 16 issue — The Budget \| Russia: All Putin, All the Time \| Egyptair: Crash Theory \| Conventional Wisdom \| The Buzz: 2008 Olympics \| Music Videos: Chrisopher Walken \| California Energy Crisis \| Kids’ Snacks \| Plastic Surgery \| Horse: The Other Red Meat \| Style: Vacation T-Shirts

THE BUDGET

Cuts—And Cash for Coke Crackdown
The budget that President George W. Bush sends to Congress this week mirrors his campaign proposals: faster growth in spending for education and defense, but slow growth or cuts for just about everything else, including agriculture, the environment, health-care access and work-force training.

        While Bush would slash spending on energy-efficiency programs, he does increase outlays for research on wind, solar and other renewables. But that comes with a trade-off. Funding would flow only from fees earned on increased oil and gas leasing on federal lands. Bush officials put the total R & D budget at $95 billion, the highest ever, but the money is mainly targeted to two areas: the National Institutes of Health and the Defense Department. Among the losers are NASA and Commerce’s semiconductor and communications technology programs.
        The budget does contain good news for U.S. military contractors involved in the Latin American drug war. NEWSWEEK has learned that Bush proposes an increase of $800 million to expand anti-narcotics assistance in the Andean region. Not appearing in the public budget: millions of dollars in “black” U.S. intelligence assistance, including funding for covert programs to neutralize right-wing paramilitary forces with links to drug traffickers. Also planned: money for a highly sensitive “mycoherbicide” test program in Colombia that involves unleashing a plant-killing fungus on the nation’s coca crop.
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Special Chinese Box Edition The spy-plane crisis illuminated complexities in U.S.-China relations. CW is in no mood to apologize, but wonders just how mad we'd be if the roles were reversed.
		C.W.
Bush		Muddles through China mess, but shoulda used hot line even though it was Bill C.'s idea.

Powell		On China, the general's in command—as long as things go well.

Jiang		Caught between the hard-liners and a hard place. The Olympics will always have Paris.

Jeffords		Vt. sen. stands firm in tax "torture chamber." One gutsy GOPer saves billions for education.

CEOs		Eisner and others rake in megabucks while stocks tank. Talk about Mickey Mouse.

MIT		Puts almost all coursework online for free. Now anybody can be a nerd!