A prep course for the month-long World Cup soccer tournament, a worldwide pheno

 . Trade with China is now $ 40 billion and growing rapidly every year , and the

 economic implications of revoking MFN with China became virtually impossible to

 contemplate for the administration . `` It is so clear to the rest of the world

 that we 've moved far more on this than China has , '' said Alan Tonelson , res

earch director at the Economic Strategy Institute , a Washington-based think tan

k specializing in trade issues . The linkage between human rights and trade star

ted 20 years ago in Congress , when the late Sen. Henry Jackson , D-Wash. , and 

then-Rep. Charles Vanik , D-Ohio , pushed through legislation tying the then-min

iscule trade with the Soviet Union and other communist nations to their record i

n allowing the emigration of Jews . ( Optional add end ) Although presidents , a

s a matter of principle , resisted congressional attempts to link human rights t

o their ability to conduct foreign policy , former President Carter made human r

ights a centerpiece of his foreign policy . Christopher , then the No. 2 man in 

Carter 's State Department , was the administration 's coordinator for human rig

hts and institutionalized the linkage between human rights and foreign policy , 

using trade and economic aid as weapons . Now , in a different administration , 

Christopher is seeking to bend , if not break , the ties between human rights an

d the use of MFN status .

 WASHINGTON White House special counsel Lloyd N . Cutler said Tuesday that Paula

 Corbin Jones ' sexual harassment lawsuit against President Clinton should be po

stponed because it would harm the president to have to deal with it while he is 

in office . Cutler , appearing on the McNeil-Lehrer NewsHour , was the first adm

inistration official to state publicly that the lawsuit should not be allowed to

 go forward at this time . He laid out a comprehensive administration argument f

or granting Clinton immunity from having to deal with the Jones lawsuit while he

 is in office . He also suggested that Clinton would pursue that claim up to the

 Supreme Court , a strategy that could help the administration delay the taking 

of depositions or other discovery in the case . Cutler said resolving that quest

ion could take `` well over a year , perhaps longer . '' Clinton 's private lawy

er , Robert S. Bennett , said Tuesday that he will claim that Clinton cannot be 

sued while in office . He has until July 15 to file papers in the case . The Jus

tice Department is also planning to file a brief expressing its official view in

 the case , in which a former Arkansas state employee claims Clinton sexually ha

rassed her when he was governor . Because the department is charged with protect

ing the prerogatives of the executive branch , it would be surprising if it did 

not support some claim of presidential immunity . The issue is an unresolved leg

al question . The Supreme Court has said that presidents may not be sued for the

ir acts as president , but has never addressed the question of private conduct .

 Cutler did not argue that there is a blanket rule protecting a president while 

in office from being sued for his private acts . He said that in cases where `` 

immediate relief '' is required such as a divorce , a failure to pay child suppo

rt , or a zoning dispute a case might be allowed to proceed . Cutler said `` the

 issue has to be judged in each case , '' weighing the needs of the person suing

 against the duties of the president . But he argued that in the case of the Jon

es lawsuit , the fact that the alleged conduct took place 20 months before Clint

on took office and that she waited an additional 16 months before bringing suit 

should be factored into that decision . `` What would be lost in balancing her i

nterest against the interest of the presidency if it were deferred for an additi

onal period , '' Cutler said . `` No immediate relief is required here . This ca

se was brought on the 364th day of the third year '' the last day before it woul

d have been barred under the Arkansas statute of limitations . Cutler set out wh

at the administration may well argue should be the court test in deciding whethe

r such cases should be postponed : `` If the burden of the case is significant a

nd if the progress of the case would damage the president and the presidency .. 

. then there is a basis '' for granting a stay . Although the argument for presi

dential immunity could well stall progress in the lawsuit for years , one wrinkl

e which Cutler did not address is whether a separate part of the case would be a

llowed to go forward in the meantime . In addition to Clinton , Jones has also n

amed Arkansas State Trooper Danny Ferguson in the case , claiming that he was pa

rt of a conspiracy with Clinton to deprive her of her civil rights and that his 

later comments defamed her Several experts in court procedures have said it is l

ikely that a court would let the Ferguson part of the case proceed even if a sta

y is granted to the president an outcome that could permit Jones ' lawyers to qu

estion Ferguson and other troopers about Clinton 's alleged conduct in this case

 and claims that Clinton regularly used troopers to solicit women .

 WASHINGTON Efforts to reach a plea bargain in the fraud case against Rep. Dan R

ostenkowski , D-Ill. , intensified Tuesday , with agreement no longer hinging on

 keeping the powerful chairman of the House Ways and Means Committee out of jail

 , sources familiar with the negotiations said . It was tentatively decided that

 Rostenkowski , who has been expected to play a central role in President Clinto

n 's health reform efforts , would resign from Congress . Under discussion is ho

w much time U.S. . Attorney Eric Holder would recommend that Rostenkowski serve 

in prison and whether U.S. . District Judge Norma H. Johnson would be bound by t

hat recommendation , the sources said . Negotiations , which grew out of a tradi

tional meeting with prosecutors at which defense attorneys are given an opportun

ity to argue why their client should not be charged , have been under way since 

it became clear that Holder intended to ask a federal grand jury to indict Roste

nkowski for misusing his office for financial gain . Sources in and out of gover

nment estimated the chances that a plea bargain would be reached at 50-50 . The 

federal grand jury to which Holder would present any proposed charges is schedul

ed to meet Thursday but the plea discussions , if they continue , could push the

 matter over to next week , one source said . Another source , describing Rosten

kowski as `` headstrong , '' said that the discussions could collapse , clearing

 the way for action Thursday or next Tuesday . The advantage to the government i

n a plea bargain would be avoiding a long and expensive legal process with no ce

rtainty of conviction , while achieving the `` symbolically important '' goal of

 putting in jail , even for less than a year , a lawmaker who admitted corruptio

n . For Rostenkowski , the agreement would offer a chance to avoid the humiliati

on of a public trial and the prospect of a possible conviction and long sentence

 , which could result even if he were convicted on only one of multiple felony c

ounts . Dismissing reports that the plea negotiations are still focusing on whet

her Rostenkowski would step down as chairman of the House Ways and Means Committ

ee and would have to serve time , one source said that his lawyer , Robert S. Be

nnett , is engaged in `` damage control , '' trying to ensure that his client 's

 time behind bars would be limited . Rostenkowski 's resignation from the House 

appears to be a `` very live option , '' according to one well-placed Democrat .

 His departure would avoid the possibility of a censure resolution and foil atte

mpts by Republicans to force the House Ethics Committee to investigate Rostenkow

ski and others allegedly involved in misuse of the now defunct House post office

 . The Ways and Means chairman is alleged to have converted $ 22,000 in postage 

stamps from his office accounts to cash for his personal use through the post of

fice . Rostenkowski also is alleged to have paid employees for work they did not

 do . He has denied wrongdoing . If Rostenkowski is indicted on felony charges ,

 rules of the House Democratic Caucus would require him to step down as chairman

 of the Ways and Means Committee although he could continue as a member of the p

anel . But associates said that Rostenkowski would resign from Congress if he ha

d to give up his chairmanship . Justice Department guidelines for federal prosec

utors state that resignation from office is among `` appropriate and desirable o

bjectives in plea negotiations with public officials who are charged with federa

l offenses that focus on abuse of the office involve . '' While resignation `` s

hall not be imposed involuntarily against the will '' of a member of Congress , 

an offer of resignation `` may be incorporated into plea agreements , '' the gui

delines state . ( Optional add end ) The high political stakes and spillover fro

m the Rostenkowski case were made clear Tuesday by House Minority Whip Newt Ging

rich , R-Ga. , who noted that defense lawyer Bennett also is representing Clinto

n in a sexual harassment complaint brought by a former Arkansas state employee .

 `` Clearly when you have the president 's lawyer negotiating with the Justice D

epartment over a national health care leader , '' Gingrich said , `` the America

n people have some cause to wonder what 's going on . '' He said the great conce

rn among Republicans is that White House political interference with Rostenkowsk

i 's case would prevent justice from being done . `` What we 're concerned about

 is some sort of strange plea bargaining taking place in which political pressur

e could be brought to bear , '' Gingrich added . '' You can't have one of the mo

st powerful members of the House having the same lawyer as the president at this

 critical moment being involved in a plea bargain and not say anything about it.

 '' ' `` He ( Rostenkowski ) doesn't want to go to prison , '' said a Democratic

 colleague , indicating why it may be difficult for Rostenkowski 's lawyers to r

each a plea bargain agreement with federal prosecutors . On the other hand , a p

lea bargain that does not include prison time or a resignation would trigger dem

ands from Republicans , and some Democrats , for a tough censure resolution and 

demands for an Ethics Committee investigation that probably would be approved by

 the House .

 WASHINGTON U.S. government officials and civil rights advocates , hailing a `` 

new partnership '' dedicated to weeding out racism in commercial establishments 

, announced Tuesday a record $ 54.4 million discrimination settlement with the e

mbattled Denny 's restaurant chain . The settlement , which earmarks funds for D

enny 's patrons who feel they were victims of discrimination , closes the book o

n class-action lawsuits that evoked a modern version of the lunch-counter protes

ts of the civil rights movement 's early days . `` With the help and cooperation

 of private counsel , the Justice Department and Denny 's have entered into the 

largest , most sweeping nationwide settlement of a public accommodations case in

 history , '' said Deval L. Patrick , assistant attorney general for civil right

s . The deal , which must be approved in U.S. district courts in San Jose and Ba

ltimore , ends a painful chapter for Flagstar Cos. of Spartanburg , S.C. , which

 owns the chain . The company was accused in the lawsuits of fostering a discrim

inatory corporate culture and refusing to serve blacks at some of its 1,400 Denn

y 's restaurants across the country . Some black customers , for example , said 

they were asked to prepay for meals or pay cover charges before they were seated

 . One former restaurant manager said he was told by superiors to close his rest

aurant if `` too many '' black customers approached . Under the terms of the arr

angement , Flagstar did not admit to any wrongdoing . Nevertheless , Justice Dep

artment officials said it represents a landmark in civil rights enforcement the 

largest settlement ever negotiated in a case involving discrimination at restaur

ants , hotels or other public accommodations . The agreement resolves separate l

awsuits filed last year in California and Maryland . The California plaintiffs i

ncluded Rachel Thompson of Vallejo , a 15-year-old black who went to Denny 's to

 celebrate her 13th birthday , but was refused the restaurant 's customary free 

birthday meal . The Maryland lawsuit was filed by six U.S. . Secret Service offi

cers who stopped at a Denny 's in Annapolis amid preparations for a speech by Pr

esident Clinton at the U.S. . Naval Academy . The black agents said they sat for

 nearly a hour without receiving service , even as they watched white colleagues

 eat second and third helpings . Their lawsuit was expanded to include claimants

 in 48 other states . Under the settlement , Flagstar will pay $ 28 million in d

amages to Californian customers , plus $ 6.8 million in attorneys fees . The cha

in will pay $ 17.7 million to customers in Maryland and other states , along wit

h $ 1.9 million in legal fees . Customers who feel they were treated unfairly at

 Denny 's can request claim forms and apply for a portion of the damages by call

ing the company toll-free at ( 800 ) 836-0055 . The claims will be screened by a

n independent claims administrator and the Washington Lawyer 's Committee for Ci

vil Rights and Urban Affairs , which filed the Maryland lawsuit . Damages will b

e prorated among victims whose claims are approved . Besides paying damages , Fl

agstar will be required to retain an independent civil rights monitor to ensure 

the company 's compliance with the settlement . In addition , it agreed to featu

re blacks as customers and employees in advertisements , train its employees in 

racial sensitivity , and allow representatives of a civil rights group to make r

andom spot checks of Denny 's outlets to detect bias . Flagstar officials said t

he company already has begun satisfying many of the agreement 's requirements . 

( Optional add end ) Attorneys for plaintiffs in the class-action suits said the

 settlement could become a precedent for future discrimination cases . Patrick ,

 noting that the Justice Department is pursuing 20 other cases involving alleged

 discrimination at public accommodations , issued a pointed warning to any compa

nies that still practice racial discrimination : `` We are watching . '' The set

tlement `` symbolizes what I think is a return of the finest moments of the civi

l rights struggles , in which the Department of Justice locked arms with civil r

ights lawyers and the private bar to win relief for victims of discrimination , 

'' said John P. Relman , an attorney with the Washington Lawyer 's Committee . `

` We hope and believe that this is the beginning of a new partnership. .. . We w

ant the Justice Department by our side . '' Flagstar still faces a handful of in

dividual discrimination lawsuits . A spokesman said the company hopes to settle 

those cases separately . Last year , Flagstar entered a `` fair share '' agreeme

nt with the National Association for the Advancement of Colored People , and agr

eed to expand minority ownership of its franchises . Although the company has no

 black-owned franchises , a spokesman said 28 potential owners are under conside

ration .

 JERICHO , West Bank Palestinian police , who apparently thought they were in co

ntrol of this small-town experiment in self-rule , got a rude lesson Tuesday in 

the limits of power . Israel sealed off Jericho for 24 hours after a policeman d

isarmed and detained three Jewish settlers who had come to town to change money 

. The closure , the Israeli army said , is to give Palestinian commanders time t

o explain to their officers that Israelis are untouchables . It was a day of bac

k-to-back crises in the fledgling arrangement that provides limited self-rule fo

r Jericho and the Gaza Strip while leaving substantial authority in Israel 's ha

nds . A potentially bloody incident between the armed settlers and Palestinian p

olice was narrowly averted in Jericho . At the same time , a ferocious political

 battle is shaping up over other efforts by Palestine Liberation Organization Ch

airman Yasser Arafat to assert his legislative rule in the autonomous zones and 

to post Palestinian police officers at a PLO office in Arab East Jerusalem . Sin

ce the self-rule agreement was signed in Cairo , Egypt , May 4 , Israel and the 

PLO have disagreed sharply over its interpretation and the PLO 's ability to tak

e charge on the ground . In Jericho , site of the most serious power clash since

 Israel 's troop withdrawal 10 days ago , two men from the nearby Israeli farmin

g settlement of Naama were detained by a Palestinian policeman who briefly confi

scated their pistols . A third settler reported the incident to Israeli army com

manders , who complained to a Palestinian commander and won the settlers ' relea

se . The incident could have turned violent , according to the settlers . At one

 point , one of the Israelis lied when asked if he was armed . The Arab police o

fficer then patted the settler down and found a pistol jammed into his waistband

 . The settler started to pull out the gun . The police officer raised his rifle

 and cocked it . Shlomi Yohanan , another armed settler at the scene in downtown

 Jericho , said he came within a twitch of drawing his own gun . `` I was half a

 second from shooting the Arab , '' a shaken Yohanan said later . `` I was only 

thinking of my friend . But can you imagine what would have happened to the peac

e if I had shot him ? My God . '' The autonomy agreement gives Palestinian secur

ity forces the right only to ask an Israeli in their jurisdiction for identifica

tion and for a gun license . The Israeli doesn't have to respond . A Palestinian

 policeman can only hand over an Israeli to Israeli soldiers , but not detain hi

m . The army said it closed Jericho to enable Palestinian commanders `` to expla

in to all police .. . their powers and authority . '' Palestinians say they don'

t want any armed Israelis inside the self-rule areas . Israel said the agreement

 permits licensed Jewish gun owners to take their weapons wherever they choose ,

 even into places of worship in PLO-controlled areas . ( Optional add end ) The 

issue of guns and jurisdiction isn't likely to go away . In another incident cau

sing friction , a PLO-appointed commander in the West Bank said he wants to stat

ion Palestinian police to guard an office in East Jerusalem . Israel 's police m

inister , Moshe Shahal , said that would be illegal and threatened to stop the P

LO by any means from establishing a security outpost in the Israeli capital . Ar

afat Tuesday opened another front in the battle for power by announcing that he 

is canceling , effective immediately , all Israeli-written laws , military order

s and regulations issued over the 27 years of occupation in Gaza and Jericho . I

sraeli authorities said Arafat cannot do that because the self-rule agreement gi

ves Palestinians only those legislative powers approved by Israel . `` These cla

ims by any Palestinian authorities have no grounds because any legislation needs

 the approval of Israel , '' said a Foreign Ministry spokesman .

 PORT-AU-PRINCE , Haiti Five of them sit at the pier , ships of all measure , va

rying from 70 feet to seven times that size . Some fly the Haitian flag , one th

e British ensign , and some fly no flags at all . They all have one thing in com

mon : They defy the world . From the Leo , an anchorless rust bucket recently pu

lled from the beach where it had run aground , to the British-flagged Oakleigh ,

 all have run a U.N. embargo to bring in tens of thousands of gallons of banned 

fuel oil even , in at least one case , in the face of warning shots from U.S. en

forcers . Pentagon officials said Tuesday in Washington that 14 ships heading fo

r Haiti had been diverted since the embargo went into effect over the weekend . 

But other ships keep coming . Jacmel , a resort created as a pseudo French seasi

de village by early 19th-century coffee magnates , has become the center of the 

Haitian military 's effort to break the international sanctions intended to forc

e the army from power . `` The border is still a serious problem , '' a diplomat

 said of the frontier between Haiti and the Dominican Republic , `` and lots of 

gas comes through , but the biggest threat is now the sea . '' Under threat is t

he strategy by the United Nations and the United States to use a near-total emba

rgo to end military rule and restore exiled President Jean-Bertrand Aristide , w

ho was driven from office Sept. 20 , 1991 , after seven months as Haiti 's only 

democratically elected president . `` If we can't stop smuggling , especially fr

om the D.R. , then the embargo is not only a failure , it is stupid , '' the dip

lomat said . `` Ships come all the time , '' said a foreign resident who has liv

ed here for more than 20 years . `` They unload barrels of gas , or they just pu

mp it out into truck tankers , all in plain sight of the choppers . '' The chopp

ers are U.S. naval and Coast Guard helicopters flying from the 10-ship internati

onal flotilla that is supposed to enforce the embargo , which was widened at mid

night Saturday to include all goods save food and humanitarian items .

 LOS ANGELES Newly reunited family members of the accused assassin of Mexican pr

esidential candidate Luis Donaldo Colosio have given a potentially explosive new

 account of the case that implicates two Mexican federal security officials , fa

mily representatives said Tuesday . The accused assassin 's father now says that

 his son knew the two security agents and met with them two months before the Ma

rch 23 assassination , said Jorge Mancillas , a University of California , Los A