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

 , after meeting with Syrian President Hafez Assad , President Clinton said the 

Syrian told him he was ready to seek full peace , including normal diplomatic re

lations . But Assad refused to confirm that in public and said such issues were 

a matter for negotiation . Peres also said he considers `` irrelevant '' a state

ment by Arafat canceling Israeli laws in Jericho and the Gaza Strip , Palestinia

n areas from which Israel has withdrawn . `` You cannot sit down , reach an agre

ement on the declaration of principles , and then go around and declare differen

t things , '' he warned . `` If you devaluate a word of an agreement , you kill 

the peaceful solution , '' he added . `` We worked so hard to reach the declarat

ion and the test of the two sides is to remain true in letter and spirit to the 

declaration of principles , '' he said . ( Optional add end ) Christopher , spea

king at the beginning of his meeting with Peres , said he believes Arafat should

 reaffirm the commitments he made to Israel in their agreement on Jericho and Ga

za earlier this month . `` Commitments have been made . It is very important tha

t they be lived up to . I think it would be very helpful to have a reaffirmation

 , '' he said . Arafat has made several statements that cast doubt on his intent

ion to remain faithful to the accord , under which Israel agreed to turn Jericho

 and Gaza over to the PLO in exchange for assurances that it would retain ultima

te security control over the areas . In addition to Arafat 's declaration that I

sraeli laws are no longer valid in Palestinian-ruled areas , the PLO leader call

ed in a speech for a `` jihad '' or holy war to take Jerusalem . He later said t

hat he was using the word `` jihad '' only in a figurative sense , meaning a pea

ceful crusade .

 WASHINGTON Russian organized crime groups have made substantial inroads in the 

United States , engaging in activities such as tax fraud , insurance scams and d

rug trafficking , FBI Director Louis Freeh told a Senate panel Wednesday . Freeh

 said the rapid growth of such groups poses `` a mounting threat to the safety a

nd well-being '' of Americans , not only from these crimes but also because the 

groups could obtain nuclear weapons materials or a completed nuclear bomb . `` S

uch stolen weapons could be sold potentially to terrorists who could use them ag

ainst the United States and other countries , '' Freeh said . `` We have all bee

n fortunate maybe lucky is a better word that there apparently have been no nucl

ear thefts so far . '' He added , however , that an international probe is under

 way into a possible theft from the area of St. Petersburg , Russia , of two kil

ograms of highly-enriched uranium capable of being used in a nuclear weapon . Th

at is less than a third the amount needed to fashion a crude nuclear device . Fr

eeh 's unusually blunt warnings at a hearing of the Governmental Affairs Permane

nt Investigations subcommittee prefaced his announcement that the FBI will soon 

open its first-ever office in Moscow , for the purpose of forging anti-crime lin

ks with the Russian law enforcement community . This move and Freeh 's grim depi

ction of a new threat to U.S. security come at a time when federal intelligence-

gathering and law enforcement agencies are under pressure to trim their budgets 

and develop new missions in the aftermath of the Cold War . Freeh did not offer 

many examples of Russian criminal activity abroad but said the FBI has received 

a growing number of reports of such action . As part of a new effort to cooperat

e with a country long regarded as the FBI 's principal nemesis , Freeh said he i

s willing to begin FBI training of Russian policemen in organized crimefighting 

techniques . He also plans to establish a joint intelligence data base and insta

ll secure communication links to exchange leads on organized crime groups . Deta

ils of the new cooperation are to be discussed when Freeh travels to Moscow next

 month with senior officials of the Treasury Department , State Department and t

he Drug Enforcement Administration . Freeh said the `` template '' for such coop

eration is a 1981 arrangement with Italy that has sent hundreds of Mafiosi to pr

ison in both nations . Seated near Freeh at the hearing was the top Russian offi

cial charged with fighting organized crime , First Deputy Minister of the Interi

or Mikhail K. Yegorov , who confirmed and enlarged on Freeh 's grim warnings abo

ut the threat to Americans . According to information reaching Moscow , Yegorov 

said , 24 Russian organized crime groups are operating on U.S. territory , princ

ipally in San Francisco , Los Angeles , Miami , Chicago and New York . He said t

hey engage in `` money laundering , illegal money transactions , and narcotics ,

 '' with assistance from emigres now living in America . Freeh said FBI probes o

f `` Russian/Eurasian '' organized crime and racketeering had increased from 13 

in 1992 to 35 early this year . He said , for example , that the FBI had evidenc

e Russian emigres were working with La Cosa Nostra organizations to control the 

illegal , untaxed sale of 50 million gallons of gasoline a month , costing the T

reasury $ 7 million a month . Profits from the scheme were funneled to import-ex

port firms conducting business in Eurasia and to an organized crime figure in Mo

scow , Freeh said . He added that 18 individuals and three companies have pleade

d guilty to the fraud , including two people hunted down in Russia and returned 

to the United States . Freeh also noted that a Russian emigre affiliated with an

 organized crime group operating in the Baltic States was convicted three years 

ago in a medical insurance billing scheme that netted $ 50 million . He said FBI

 data `` clearly indicates '' Russian emigres are laundering millions of U.S. do

llars `` that originated as rubles '' and in some cases stemmed from criminal ac

tivities . According to Yegorov , the United States is not alone in providing fe

rtile ground for Russian criminals . He said 47 organized groups are operating i

n Germany and 60 groups in Italy , often banding together with local criminals t

o commit extortion , fraud or provide a conduit to the West for narcotics from C

entral Asia . Yegorov said that during the past 18 months , his organization had

 investigated 47 criminal cases involving radioactive materials , including nine

 alleged thefts of highly-enriched materials of the sort needed for nuclear weap

ons . Only one such theft involved `` organized crime groups , '' he said , addi

ng nonetheless that this danger should be taken more seriously . Hans-Ludwig Zac

hert , the president of Germany 's Federal Criminal Police , also underscored Fr

eeh 's warnings about the potential for trade in nuclear materials from the form

er Soviet Union and eastern Europe . Zachert told the Senate panel his organizat

ion in 1992 investigated 18 such alleged thefts . Weapons-grade materials were o

ffered for sale in several of the cases , although none was found . Two cases in

vestigated in 1993 involved attempts by eastern Europeans to extort money by thr

eatening the use of nuclear arms against Germany or Austria .

 WASHINGTON President Clinton used commencement at the U.S. . Naval Academy as a

 platform Wednesday for a sharp counterattack on his Bosnia policy , accusing cr

itics including many leaders of his own party of advancing `` simplistic ideas t

hat sound good on bumper stickers but that would have tragic consequences . '' T

he administration 's policy , which relies heavily on multinational consultation

s and which critics deride as a failure to assert U.S. leadership , `` is not qu

ick ; it is not neat ; it is not comfortable , '' Clinton conceded during his sp

eech in Annapolis , Md. . `` But I am convinced in a world of interdependence wh

ere we must lead by working with others , it is the right path . `` Our administ

ration will not walk away from this Bosnian conflict . But we will not embrace s

olutions that are wrong , '' Clinton said . `` We plan to continue the course we

 have chosen raising the price on those who pursue aggression , helping to provi

de relief to the suffering , and working with our partners in Europe to move the

 parties to a workable agreement . '' In particular , Clinton denounced proposal

s that the United States unilaterally violate the U.N. embargo against arms ship

ments to the warring parties in Bosnia a course of action many leading Democrats

 have endorsed and that enjoys substantial support in Congress . Although Clinto

n has made that point several times before , his sharpened rhetoric marked an es

calation of the war of words over Bosnia policy . The move reflects a realizatio

n by White House officials that Clinton needs to take a more active role in defe

nding his foreign policies . Clinton also repeated his insistence that Congress 

not make further cuts in the defense budget , an idea congressional liberals hav

e revived as lawmakers begin to face the hard choices on spending forced this ye

ar by tight budget caps . In addition to his Bosnia policy , Clinton also defend

ed his overall approach of emphasizing multilateral action in most foreign arena

s . Clinton 's critics , including several potential Republican presidential hop

efuls , have claimed that he has devalued traditional U.S. leadership by refusin

g to act alone when necessary . But , Clinton said , while the United States mus

t act unilaterally when its own immediate interests are at stake , many world cr

ises require international cooperation instead . `` The end of the superpower st

andoff lifted the lid from a cauldron of long-simmering hatreds , '' he said . `

` Now the entire global terrain is bloody with such conflicts , from Rwanda to G

eorgia . `` We cannot solve every such outburst of civil strive or militant nati

onalism simply by sending in our forces . We cannot turn away from them . But ou

r interests are not sufficiently at stake in so many of them to justify a commit

ment of our folks . '' In Bosnia , for example , Clinton said , the United State

s has interests at stake . They are not weighty enough to `` warrant our unilate

ral involvement , but they do demand that we help to lead a way to a workable pe

ace agreement if one can be achieved . '' Multilateral action in such cases `` p

reserves our leadership , preserves our treasure and commits our forces in the p

roper way . '' ( Optional add end ) Until recently , Clinton advisers tended to 

shy away from having the president defend his positions on foreign issues , feel

ing that the public would resent Clinton for spending time on overseas issues ra

ther than on domestic policies . But the administration 's mood on that issue ha

s shifted recently as polls have shown that public uncertainty about Clinton 's 

policies has begun dragging down voters ' overall assessment of his ability . Be

cause of that , officials increasingly have urged Clinton to explain and defend 

his policies more actively a challenge that will absorb much of Clinton 's time 

during his visit to Europe that begins next week . The arms embargo has been a p

articularly difficult issue for the White House because Clinton agrees with crit

ics who say the main impact of the embargo has been to prevent Bosnian governmen

t forces from obtaining enough weapons to defend themselves against Serb rebels 

who receive arms through the neighboring Serbian republic . Clinton has intermit

tently , and unsuccessfully , tried to convince U.S. allies to agree that it sho

uld be lifted . The administration 's inability to convince Britain , France and

 Russia each of which has a veto in the U.N. . Security Council to agree to lift

ing the embargo has led many members of both parties to call on Clinton to abrog

ate the ban unilaterally .

 Back-to-back congressional losses underscore the Democrats ' vulnerability in t

his fall 's midterm elections and could foreshadow significant Republican gains 

in the South , analysts in both parties said Wednesday . Republican officials qu

ickly capitalized on their easy victory Tuesday in the Kentucky Congressional Di

strict held for 41 years by the late William H. Natcher , D , and an earlier win

 in a Democratic-held district in Oklahoma , claiming the races showed growing p

ublic dissatisfaction with President Clinton and the Democrats who control Congr

ess . `` I think what we just did is a test run in Oklahoma and Kentucky , '' sa

id House Minority Whip Newt Gingrich , R-Ga . `` Morale and momentum and therefo

re resources are shifting our way and Democrats are disoriented and don't want t

o defend Clinton and can't run away from him . '' But Clinton , in a private mee

ting with House Democrats , said the administration has much to be proud of and 

urged members to `` take credit for this stuff and don't sit back on your heels 

, '' according to one Democrat who attended the meeting . Clinton also sharply a

ttacked Republicans as `` fanatics '' who are peddling a message of `` hate and 

fear '' and said they are `` fooling themselves '' if they believe the Kentucky 

race is indicative of how Democrats will fare this fall . Democratic National Co

mmittee Chairman David Wilhelm blamed the Kentucky defeat on a candidate `` who 

got in a defensive crouch and stayed there . '' But other Democrats , while caut

ioning that special elections are often poor predictors of later contests , were

 more pessimistic , especially in their private comments . They said Clinton is 

likely to be an issue in many marginal races in the South . Even Rep. Vic Fazio 

, D-Calif. , who chairs the Democratic Congressional Campaign Committee and who 

echoed Wilhelm 's analysis of the Kentucky race , warned that the Republicans co

uld rack up big gains this fall . Fazio called the Kentucky race unique , but sa

id it nonetheless may serve `` as a wake-up call '' to the party . `` I 've been

 talking about our potential of losing up to 25 seats and I 've been very seriou

s about it . '' The Kentucky election left the Democrats holding a 257-to-178 ad

vantage in the House , along with their 56-to-44 margin in the Senate . A gain o

f even 15 House seats would give Republicans their largest number since the mid-

1950s and greater gains could cost Democrats their working majority . Working co

ntrol of the Senate is also threatened by the recently announced retirements of 

Senate Majority Leader George Mitchell , D-Maine , and Sen. David Boren , D-Okla

 . The party that holds the White House generally loses House seats in midterm e

lections . But the Democrats ' historical disadvantage is compounded this year b

y a variety of factors . They include voter anger toward Washington , Democratic

 retirements in marginal House districts , the effects of redistricting and Clin

ton 's unpopularity in the South . Republican strategist Whit Ayres said the two

 special House races , combined with last year 's string of Republican victories

 `` send a very clear message , that voters around the country , and particularl

y voters in the South , are very unhappy with the leadership provided by Preside

nt Clinton and the Democrats in Congress . '' Clinton 's popularity varies from 

region to region and a White House official said many Democrats are anxious for 

his help this year . But the danger for House Democrats in districts where Clint

on 's favorability ratings are weak is most apparent in the 28 open seats where 

Democratic incumbents have announced their retirements or are seeking higher off

ice . In 17 of the 28 districts , Clinton 's vote in 1992 was below his national

 average of 43 percent , and in 11 of those districts , most of them in the Sout

h , George Bush beat Clinton . Republican pollster Bill McInturff said that , in

 the South , the Clinton administration is facing growing hostility . `` In focu

s groups , there is an historic anti-governemnt sentiment , '' McInturff said . 

`` What they see Clinton doing , on taxes , the economy , health care , these ar

e seen as symbols of Jimmy Carter , round two . The guy is raising taxes and ove

rreaching the role of government . '' Emory political scientist Merle Black , wh

o has specialized in the study of Southern politics , said , `` Clinton is not a

n asset in most Southern congressional districts '' and predicted Republican can

didates would mimic the kind of campaign Republican Ron Lewis ran in Kentucky . 

Lewis ran an explicitly anti-Clinton campaign that included one television ad in

 which the face of Democrat Joe Prather turned into the face of Bill Clinton . `

` I wouldn't be too surprised to see that ad in 200 districts in October , '' Gi

ngrich said . `` I hope so , '' responded presidential pollster Stan Greenberg .

 `` I think people will vote for change rather than negativism and a return to t

he Reagan-Bush years . '' Greenberg and other Democrats said it 's too early to 

make predictions about November , despite the losses in Kentucky and Oklahoma , 

and that the outcome of the health-care debate could become a major factor in th

e fall . `` I don't think the story of the off-year elections is going to be dec

ided until October , '' he said . `` People are going to make a decision of whet

her we 're moving the country forward or whether we 're stuck . And right now , 

they don't know . '' But Republican pollster Linda Divall said many voters are s

till angry with Washington . She said the special-election results were not just

 a vote against Clinton . `` It was also a warning signal that the changes voter

s cast their votes for in 1992 have not come about and they are still frustrated

 . '' She and others noted the continued intense anger over congressional check 

bouncing , and argued that almost any outcome in the pending criminal case of Re

p. Dan Rostenkowski , D-Ill. , will damage Congress and the Democrats . `` Any p

lea bargain is going to look very bad , '' she said . Democrats worry that low v

oter turnout , which occurred in Kentucky , will hurt their candidates this fall

 . `` The people on the outs are much more motivated to vote than our people are

 , '' said Democratic pollster Harrison Hickman . `` The angry people are going 

to take the time to vote . ''

 NEW YORK Vandals hit Machpelah Cemetery in New York City where Harry Houdini is

 buried , knocking over several tombstones and destroying two carved sandstone b

enches at the magician 's grave site , officials said Wednesday . Houdini 's tom

bstone escaped damage but two hand-carved , priceless stone benches were destroy

ed , said David Jacobson , who heads the cemetery , in the borough of Queens . `

` They were smashed , they 're irreplacable , '' he said . In the 67 years Houdi

ni has been buried in Machpelah , vandalism has not been uncommon . Originally t

he tombstone was topped by a bust of the magician . But after the theft of the f

irst bust and two replacements , those responsible for maintenance of the grave 

site decided the busts ' disappearing act was too costly to go on .

 ANNAPOLIS , Md. . In a preview of themes he will strike during next week 's Eur

opean tour , President Clinton Wednesday defended his foreign policy in general 

and his approach to Bosnia in particular against critics with `` simplistic idea

s that sound good on bumper stickers but that would have tragic consequences . '

' The president used a commencement address at the U.S. . Naval Academy to deliv

er his most extensive explanation to date of the circumstances under which he wo

uld send American troops into harm 's way and made it clear they weren't likely 

to include `` ethnic and religious conflicts '' like those raging in Rwanda and 

Bosnia . `` The end of the superpower standoff lifted the lid from a cauldron of

 long-simmering hatreds , '' he told a sweltering football stadium filled with g

raduating midshipmen and their proud families . `` We cannot solve every such ou

tburst of civil strife or militant nationalism simply by sending in our forces .

 We cannot turn away from them , but our interests are not sufficiently at stake

 in so many of them to justify a commitment of our folks . '' The speech was the

 first in a series of presidential addresses tied to next week 's celebration in

 Europe of the 50th anniversary of D-Day , the amphibious assault on the Normand

y beaches that turned the tide in World War II . The White House is approaching 

Clinton 's eight-day trip to Italy , England and France eager to bolster his cre

dentials , now under increasing fire , on foreign and defense issues . Clinton o

utlined relatively limited circumstances under which he would commit U.S. forces

 , saying he would do so `` to defend our land and our people '' and `` to prote

ct our vital interests . '' During the 1992 campaign , he had advocated more dec

isive U.S. action in places like Bosnia and Haiti , but he has tempered those vi

ews since taking office especially since the debacle in Somalia last year that c

ost American lives . In Bosnia and elsewhere , he said , the United States shoul

d work with other nations and be prepared to not always call the shots about how

 to proceed . He singled out for rebuke calls by Congress to unilaterally break 

the U.N. arms embargo for Bosnian Muslims . While Clinton personally supports li

fting the embargo , Britain and France , which have troops on the ground there ,

 oppose it . `` We simply must not opt for options and action that sound simple 

and painless and good , but which will not work in this era of interdependence w

here it is important that we leverage American influence and leadership by provi

ng that we can work with others , '' he said , `` especially when others have gr

eater and more immediate stakes and are willing to put their soldiers in harm 's

 way . '' The Senate this month passed a bill that would require Clinton to lift

 the embargo unilaterally , though it also passed a contradictory provision inst

ructing him to consult with NATO allies first . Advocates of lifting the ban tri

ed to force a House vote on the issue Tuesday , but Democratic leaders postponed