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

ay that as a cost-saving measure the Labor Department would no longer conduct a 

separate survey to determine the national , monthly unemployment rate using the 

method employed before January . Congressional Democrats had pressed for the sec

ond survey using the old method because they feared the new method would result 

in a higher unemployment rate . But the old method resulted in an unemployment r

ate higher rather than lower than the new method .

 In a rare corporate rebellion , K mart Corp. shareholders defeated a controvers

ial stock plan Friday , striking a blow to the top management of the nation 's N

o. 2 discount retailer . The plan called for K mart to issue stock linked to the

 performance of its specialty stores : Sports Authority , Waldenbooks-Borders Bo

okShop , OfficeMax and Builders Square . But dissidents , frustrated by the lack

 of progress in recent years under Chairman Joseph Antonini and openly skeptical

 of his plan , pulled off a surprise victory at the annual meeting at company he

adquarters in Troy , Mich. . They said K mart should find ways to bolster sales 

at its flagship discount stores , which contribute most of the company 's revenu

es , and which have been losing sales to other big discount retailers such as Wa

l-Mart , the nation 's No. 1 chain , and Target Stores . Although management gar

nered a majority of the shares voting , it needed a majority of the shares outst

anding for its plan to win . It got only 44 percent . Institutional investors ha

ve become more vocal in recent years , but it 's still rare for management to be

 defeated in a shareholder vote . `` Joe Antonini has more pressure on him now t

han at any time during his tenure , '' said Wayne Hood , an analyst at Prudentia

l Securities in New York . `` He probably has three more quarters to get the bus

iness stabilized and improving . '' The retailer lost nearly $ 1 billion last ye

ar and has seen its stock drop roughly 40 percent since November . The victory s

urprised even dissidents , who as late as Thursday were saying that they expecte

d to lose but hoped they could send management a message . The State of Wisconsi

n Investment Board , which owns 3 million K mart shares , led the campaign to ov

erturn the stock issue . It hired people to call other investors and took out ad

s in the Wall Street Journal . Antonini expressed disappointment that his propos

al had failed . `` K mart 's management and board will assess the alternatives a

vailable , '' he said . Five directors were re-elected , even though dissidents 

opposed this move also .

 UNITED NATIONS Haiti 's remaining lifeline to the outside world , commercial fl

ights that transport thousands of people a week in and out of the country , will

 soon be cut , diplomats here said Friday . `` It 's going to start happening as

 of next week , '' Dante Caputo , the U.N. and Organization of American States s

pecial envoy to Haiti , told Newsday . U.S. officials attending Friday 's meetin

g on the issue said the United States would send telegrams asking U.N. member na

tions to ban commercial flights to and from Haiti , according to a Latin America

n diplomat at the meeting . The U.N. . Security Council imposed a near total tra

de embargo on Haiti two weeks ago , but continued to allow air traffic between H

aiti and the outside world . Laura Hurd , a spokeswoman in Fort Worth , Texas , 

for American Airlines , the largest carrier flying to Haiti , said she has heard

 rumors that the United States is planning to stop flights in about a week . But

 she has not received any official word on the matter , she said . President Cli

nton 's special ambassador to Haiti , former Rep. William Gray , had lunch with 

top foreign affairs officials from France , Canada , Venezuela and Argentina , a

nd discussed the air cutoff , sources here said . The countries are collectively

 known at the United Nations as the Five Friends of Haiti because of their conti

nuing interest in the Haitian crisis . Neither Gray nor his deputy , James Dobbi

ns , was available for comment after diplomats ended their formal meeting Friday

 afternoon . The group issued a statement expressing `` their readiness to consi

der .. . further measures such as suspension of commercial air flights . '' Ques

tioned as he left the meeting , Caputo said the cutoffs would begin next week , 

but he did not say which nations would make the first move . Besides American , 

airlines from Panama , France and the Dutch Antilles fly to Port-au-Prince , dip

lomats said . France was described by the Latin American diplomat Friday as relu

ctant to order Air France to stop its flights .

 In CLINTON-NDY ( Page , Newsday ) sub for penultimate graf ( Correcting spellin

g of Dachau ) xxx to weep . `` I never wanted to come back here in 50 years beca

use it brought back bad memories , '' he said , recalling the 157th Infantry 's 

battles in Sicily and southern France and its liberation of the Dachau concentra

tion camp in Germany . But after the fighter jets had roared overhead in the `` 

missing man '' formation and two buglers had blown a plaintive `` Taps , '' he s

aid he felt overwhelmed and gratified . PICK UP last graf : `` God spared xxx .

 In CLINTON-NDY ( Page , Newsday ) sub for penultimate graf ( Correcting spellin

g of Dachau ) xxx to weep . `` I never wanted to come back here in 50 years beca

use it brought back bad memories , '' he said , recalling the 157th Infantry 's 

battles in Sicily and southern France and its liberation of the Dachau concentra

tion camp in Germany . But after the fighter jets had roared overhead in the `` 

missing man '' formation and two buglers had blown a plaintive `` Taps , '' he s

aid he felt overwhelmed and gratified . PICK UP last graf : `` God spared xxx .

 WASHINGTON Even as the Clinton administration Friday took its first steps towar

d seeking economic sanctions against North Korea , key lawmakers and experts inc

reased pressure for military moves to end Pyongyang 's nuclear ambitions and det

er any attack on South Korea . After 15 months of patient , cautious , U.S. dipl

omatic efforts to persuade North Korea to permit inspections of its nuclear faci

lities , Assistant Secretary of State Robert Gallucci said the basis for continu

ing the dialogue `` has been destroyed '' and `` we need to discuss alternative 

options . '' North Korea 's refusal to permit inspections by the United Nations 

' International Atomic Energy Agency , Gallucci said , has all but destroyed any

 way of learning whether Pyongyang is or has been illegally diverting plutonium 

from its small nuclear reactor for the purpose of making nuclear weapons . North

 Korea has denied that it is developing nuclear weapons . North Korea signed the

 1968 worldwide nuclear Non-Proliferation Treaty , under which it is required to

 submit its nuclear program to inspections . The U.N. . Security Council has thr

eatened economic sanctions if North Korea refuses to abide by its treaty obligat

ion . Gallucci said the United States has begun consulting with other members of

 the Security Council `` on appropriate next steps in response to North Korea 's

 actions , including sanctions . '' He would not say when a sanctions resolution

 might be presented to the council , but he said `` certainly the intensity of t

hose consultations will pick up next week . '' North Korea has warned that econo

mic sanctions would be regarded as an act of war . And China 's traditional oppo

sition to sanctions remains an obstacle to Security Council action , administrat

ion officials said . A leading congressional critic , Sen. John McCain , R-Ariz.

 , said the United States should take a tougher stance to gain China 's support 

and to discourage North Korea from carrying out its military threats . McCain , 

a Vietnam veteran and member of the Senate Armed Services Committee , opposed us

ing military force in Bosnia , Somalia and Haiti . But he argues , as he did in 

a lengthy speech on the Senate floor May 24 , that the administration 's weaknes

s and a policy of `` appeasement '' have permitted North Korea to build its stoc

kpile of plutonium while stalling in negotiations . He noted that the United Sta

tes has repeatedly retreated on its policies toward North Korea for the sake of 

continuing negotiations . Although President Clinton had pledged that North Kore

a would not be allowed to develop a nuclear bomb , there is evidence it has one 

or two such weapons , according to U.S. intelligence agents . The United States 

shifted its position , warning North Korea against diverting any more plutonium 

for possible new bombs . Although North Korea is defying that warning and has fa

iled to live up to its promises in talks with Washington , the administration ho

pes sanctions will persuade North Korea to begin negotiating again , Gallucci sa

id Friday . South Korea and Japan , which would be vulnerable if North Korea is 

provoked , have called on the United States to proceed with caution . China has 

counseled patience . But McCain accused the administration of `` a failure of ne

rve '' and said the United States , in seeking sanctions , `` should make clear 

to China , quietly but very forcefully , that there is no other issue involved i

n our relations of comparable importance . '' While seeking sanctions , McCain s

aid the United States should warn North Korea that it faces destruction if it mo

ves to attack South Korea , as it did 44 years ago this month . To deter such an

 attack , McCain said , the United States should beef up its 37,000 forces in So

uth Korea , deploy additional fighter aircraft and helicopters and send an aircr

aft carrier force and bombers and tankers to the region . ( Optional add end ) E

choing McCain , Sen. Richard Lugar , R-Ind. , a ranking member of the Senate For

eign Relations Committee , has been telling constituents during the current cong

ressional recess that the United States should be sending back some tactical nuc

lear weapons that were withdrawn from South Korea more than two years ago . He c

alled on Clinton to prepare the American people for a possible confrontation . J

ames R. Lilley , former U.S. ambassador to South Korea and China , said on Fox M

orning News Friday that sanctions could pressure North Korea into compliance if 

China supports them . But beyond sanctions , he added , it 's time to get tough 

with North Korea . `` If you appease the North Koreans , they 'll take advantage

 of you , '' he said . `` What you need is a very strong , unambiguous deterrent

 . If they turn to force , they will be obliterated . ''

 WASHINGTON After months of disagreements and recriminations with the United Sta

tes , exiled Haitian President Jean-Bertrand Aristide Friday spoke encouragingly

 of President Clinton 's recent policy changes while urging more aggressive step

s against Haiti 's military rulers . In a veiled endorsement of military interve

ntion , Aristide called for `` swift and determined action '' to remove the army

 generals who deposed him in 1991 and for the deployment of a large internationa

l force to help him reestablish democracy in Haiti . Aristide 's comments signal

ed an important convergence with the administration on the Haitian crisis . Unti

l recently the administration had urged Aristide to reconcile with his political

 opposition , a move the deposed president refused to make . The administration 

has since dropped that line . Now both Clinton and Aristide are talking about th

e need to oust the Haitian military and the possibility of doing it by force . M

aking his first extensive public remarks since Clinton took a new stance on Hait

i , Aristide said , `` President Clinton needs help , and I am helping him as he

 can help us . '' Aristide said the tightened embargo against Haiti promoted by 

the administration is `` a good step '' and he avoided any direct criticism of C

linton 's new policy toward Haitian refugees . The kind words were all the more 

remarkable because they came at a Capitol Hill luncheon sponsored by the TransAf

rica lobbying group , which has led the opposition to Clinton 's Haiti policies 

among civil rights groups and refugee advocates . Responding to a 27-day hunger 

strike by Randall Robinson , executive director of the group , Clinton announced

 May 8 that the United States would begin offering Haitian boat people a chance 

to seek refugee status rather than automatically returning them to their homelan

d . The new policy won an important measure of international support Friday when

 the Turks and Caicos Islands , a British dependency in the Caribbean , agreed t

o let the United States set up a 5-acre refugee processing facility on Grand Tur

k Island . Two days earlier , Jamaica had offered to allow the United States to 

conduct processing aboard ships anchored in its territorial waters . `` It buys 

them time , '' Rep. Kweisi Mfume , D-Md. , said of the administration 's success

 in winning support from the Caribbean states . Mfume , chairman of the Congress

ional Black Caucus , emphasized that he does not agree with the administration '

s approach but acknowledged , `` It certainly allows them for some time to work 

with other nations in the region . '' In stepping up the pressure on Haiti 's mi

litary and in dealing with the refugees fleeing the island republic , the Clinto

n administration has emphasized its determination to find international solution

s that will win the endorsement and participation of other countries in the regi

on . In calling for the ouster of the military , Aristide also emphasized the ne

ed for multilateral action . Aristide , who was elected by an overwhelming major

ity but only ruled for seven months before the military overthrew him in 1991 , 

was careful not to openly invite the invasion of his homeland . But he nonethele

ss made his intentions clear . `` As you know , we do not seek military occupati

on , '' he said , `` and if I were to ask for a military intervention , I would 

be impeached under my constitution . However , I do believe that action can be t

aken to rid the nation of the thugs who have taken her hostage and restore democ

racy to Haiti . `` Therefore , swift and determined action should be taken to re

move the coup leaders within the framework of the Governors Island agreement . I

 will not waste time describing what this action would be . The international co

mmunity knows how to proceed . '' Aristide was referring to an agreement signed 

under the United Nations 's auspices last July 3 , in which the commander of the

 military government , Lt. Gen. Raoul Cedras , promised to leave office and allo

w Aristide to resume power by last Oct. 30 . Cedras failed to fulfill several pr

eliminary steps to the accord and it collapsed last fall . `` The military breac

hed the agreement , and Aristide is just calling on the international community 

to enforce it , '' said Michael Barnes , the former Maryland congressman who adv

ises Aristide . Aristide argued Friday that after Cedras and the other top offic

ers are removed from power , the other provisions of the agreement should be imp

lemented . These include the dispatch of a sizable international mission to refo

rm the Haitian military and other measures to promote democracy . Aristide sugge

sted that with sufficient international support , no prolonged occupation of Hai

ti by the U.S. military would be necessary . Yet even as he offered Clinton a me

asure of encouragement , Aristide urged his supporters to keep pressing the pres

ident : `` Once we keep the pressure on , he will continue , I hope , I wish , I

 think , he will continue building the pressure on the military , on the thugs t

o get rid of them . ''

 Strong national job figures released Friday managed to signal economic growth w

ithout alarming the stock and bond markets about inflation . The markets ' subdu

ed response stemmed partly from the mixed messages out of the U.S. . Labor Depar

tment . While the national unemployment rate dropped to 6 percent in May from 6.

4 percent in April the biggest one-month drop in 11 years a separate count of jo

b growth came in at 191,000 , much below the expected 300,000 . Economists and m

arket analysts interpreted the numbers as indicating slow but continued growth .

 They don't want the news to be too good , for fear the Federal Reserve Board wi

ll renew its anti-inflation activity . The Fed already has raised interest rates

 four times this year , even though inflation is running at less than 3 percent 

. Higher rates hurt the value of stocks and bonds and could slow the nation 's e

conomic recovery . On Wall Street , the Dow Jones industrial average gained 13.2

3 points to 3,772.22 , ending the week up 15.08 . Standard & Poor 's 500-stock i

ndex rose 2.48 to 460.13 , up 2.80 for the week . The price of the 30-year Treas

ury bond traded up 13-16 point . Its yield , which moves in the opposite directi

on , fell to 7.26 percent from 7.34 percent Thursday . The dollar advanced again

st other major currencies , rising to a two-week high against the German mark . 

In New York , the dollar closed at 1.6700 marks , up from 1.6535 . Republic Nati

onal Bank quoted gold at $ 380.60 an ounce , down $ 3.30 . On the New York Commo

dity Exchange , silver for current delivery brought $ 5.292 an ounce , down from

 $ 5.369 .

 Two of the nation 's largest cable television companies tentatively agreed Frid

ay to a $ 2.3 billion merger , part of a move among the country 's balkanized ca

ble systems to unite into regional powerhouses . Cox Enterprises Inc. , the Atla

nta-based newspaper and TV company , reached a tentative agreement to buy the ca

ble systems owned by Times Mirror Corp. , publisher of the Los Angeles Times and

 Baltimore Sun , Times Mirror said . The deal would bring under one management a

 nearly seamless string of cable systems running from San Diego to Los Angeles ,

 one of the most populous and wealthiest regions in the country . It would creat

e the nation 's third-largest cable company , with 3 million subscribers in Cali

fornia and other states . Cable companies generally have scattered holdings the 

Washington area is served by more than a dozen companies . But the consolidation

 envisioned by Cox and Times Mirror would permit the companies to compete on a m

ore equal basis with Pacific Bell , California 's regional phone company , which

 is planning to enter the TV business . The cable and phone industries are racin

g each other to upgrade their networks of wires to enter each other 's business 

and provide a new generation of communications and entertainment services the ``

 information highway . '' Cox not only hopes to be in cable and telephone market

s , it also has a tentative license to offer `` personal communications services

 '' new wireless phone and data links to people on the go-in southern California

 . Bigger and more concentrated cable companies may be the wave of the future , 

analysts say , because such companies could more efficiently complete the job of

 rewiring millions of households . `` You 're going to see more trading , buying

 and consolidating '' of cable systems to achieve mass , an industry executive i

nvolved in the bidding for Times Mirror cable said Friday . `` Just as telephone

 companies have a seamless network in their markets , a cable operator needs a s

imilar effect to be competitive . '' In fact , Tele-Communications Inc. ( TCI ) 

, the nation 's largest cable company , is attempting to assemble a regional str

ing of cable systems in the San Francisco Bay area . Thus , both TCI and Cox wou

ld take on Pacific Bell , which has said it will spend as much as $ 18 billion i

n the next few years to make its ubiquitous phone network capable of carrying TV

 pictures . At the same time , Time Warner Inc. , which owns most of the cable T

V systems in New York City , is reported to be discussing a buyout of the Long I

sland cable systems owned by Cablevision Systems Inc. . Wall Street analysts and

 other observers said the announcement also indicates that another wave of mega-

deals may be building in the cable and phone businesses after a brief period in 

which several mergers fell apart . Only a few months ago , cable-industry execut

ives , including those at Cox , were blaming recent price rollbacks ordered by t

he federal government for scuttling alliances that were aimed at accelerating co

nstruction of the information highway . Among the deals that went sour in the wa

ke of a Federal Communications Commission order to cut rates by 17 percent were 

Bell Atlantic Corp. 's proposed $ 26 billion purchase of TCI , and a proposed mu

ltibillion-dollar partnership between Cox and regional telephone company Southwe

stern Bell Corp. . Now , however , `` I think what Cox is saying is ` This is st

ill a good business , ' ' ' said analyst John Reidy of Smith Barney Inc. in New 

York . `` This is the beginning of a new look . '' Reidy predicted major telepho

ne companies will be investing in cable companies again within six months . In f

act , two telephone companies , Bell Atlantic and GTE Corp. , were early bidders

 for the Times Mirror cable systems , but both dropped out as the bidding rose ,

 sources said Friday . FCC chief of staff Blair Levin stopped short of declaring

 vindication for the agency 's action on cable prices . But he said , `` Mergers

 occur because of people 's view in the long term , not the short term . Both Co

x and Times Mirror understand the long-term strength of the cable industry . ''

 NEW YORK When 7-year-old Kenneth Yeglinski II was struggling against a big rott

weiler that had a hold on his neck , he knew what to do . He kicked the dog in t

he neck , using the same technique he 'd learned in studying tae kwon do for the

 past year . Thanks to his timely kick , the freckled , red-haired first-grader 

was around Friday to tell the story of a harrowing attack from a 3-year-old , 12

1-pound male rottweiler . `` I was scared , but I didn't show it , '' he said in