Friday September 1 6:36 p.m. EDT

Politics Summary

• US: Breakthrough on Bosnia - The State Department says the U.S. effort to reach a negotiated peace in Bosnia has paid off. The foreign ministers of Bosnia, Croatia and the Yugoslav federation will begin peace talks in Geneva late next week. A similar statement was issued in Belgrade following a meeting between Serbian President Slobodan Milosevic and U.S. special envoy Richard Holbrooke. President Clinton launched the peace initiative two weeks ago and under U.S. pressure, NATO backed up the diplomatic efforts this week with a series of air strikes against Serb targets in Bosnia.

• Clinton: Talks Positive Step - President Clinton says the new round of Bosnia peace talks is a ``positive step'' but much remains to be done. Clinton made the comments during ceremonies in Hawaii marking the end of World War II. The State Department announced Friday that the three sides of the Bosnian conflict have agreed to peace talks in Geneva next week. But Clinton said, however, that the pending talks in no way preclude further NATO airstrikes if Bosnian Serbs continue to target civilians in Sarajevo or other safe areas.

• Clinton Marks VJ Day - Elite units of America's armed forces marched in a spit-and-polish tribute to veterans of World War II in the Pacific Friday. President Clinton saluted the legacy of those who ``bestowed a glory on our nation'' in combat with Japan. Some 7,000 troops, many in camouflage battle dress, wheeled in formation at historic Wheeler Air Field to kick off the 50th anniversary remembrance of the end of what Clinton called ``the most horrible thing ever done by man.''

• Hillary Prepares for China Trip - First lady Hillary Rodham Clinton leaves Sunday for China where she will lead the U.S. delegation to an international conference on women. The visit will be high profile for the first lady, who has spent the past year slipping deeper into the shadows of her husband. Human rights activists have called on her to take a strong stand against rights abuses in China during an address to the conference. But there is so far no word on whether she will take that position or concentrate exclusively on women's rights.

• Clinton Wants Pay Limit - President Clinton asked Congress Friday to approve his plan to limit the pay increase for federal employees to 2.4 percent effective in January 1996. Without Clinton's action, pay for federal employees would automatically increase 5.1 percent in January under current law. Clinton has also asked for a 2.4 percent pay increase for members of the U.S. military. Clinton said in his letter to Congress that limiting the federal pay increase will help continue the administration's efforts to control the budget.

• Deficit Cut Won't Hurt Dollar - Federal Reserve Chairman Alan Greenspan says budget deficit cuts won't necessarily weaken the dollar, because of lower interest rates. The Fed chairman made the remarks Friday at a meeting in Wyoming. He argued that despite concerns, the dollar could actually benefit from budget cuts because a lower deficit will boost confidence in the U.S. inflation outlook. Fed Governor Lawrence Lindsey echoed Greenspan's comments, saying credible budget action would lower the risk of a default by the U.S. and could boost demand for U.S. securities and the dollar.

• Reich Sees Room for Growth - The Labor Department's monthly jobs report for August showed strength in that sector, but Labor Secretary Robert Reich says there is room for even more growth. In an interview with Reuters Television, Reich says job growth and wage increases could be achieved without risking inflation. He says the U.S. unemployment rate has been below 6 percent for a number of months with no inflation in sight. But one cloud on the U.S. economic horizon is rising consumer debt, which could cause many shoppers to pull back.

• GOP Outraises Dems - The Federal Election Commission says the Republican Party has raised more than twice as much money for federal elections in the first half of this year as the Democrats. Republicans raised just over $52 million and spent $43.6 million in the period. Democrats raised $20.4 million and spent $19.6 million. Republican fundraising has ballooned since last November's elections when the party won control of both houses of Congress for the first time in 40 years.

• NY Death Penalty Takes Effect - After 18 years of debate, New York Friday became the 38th state where the death penalty has been revived. Gov. George Pataki used the issue of reviving capital punishment last year in his campaign against longtime governor Mario Cuomo, who vetoed the bill 18 times. About 100 protesters held a candlelight vigil in Times Square before the midnight deadline, after which certain types of murder become eligible for the death penalty.

• Texas Gun Law Begins - A so-called Wild West law went into effect Friday in Texas as officials began sending out applications for permits to carry concealed guns. Texas Department of Public Safety spokeswoman Sherri Green said an estimated 35,000 people have already requested permit applications. Those who get permits can start carrying their weapons Jan. 1, 1996. Many fear the controversial law, which has been criticized as a throwback to gun-filled days of the Wild West, will add to violence on Texas streets.

• US: Joint Serb Talks Team A Breakthrough
• Clinton Calls Bosnia Talks 'Positive Step'
• Justice Tries to Comply With Ruby Ridge Probe
• Third Innocent Plea Entered in Whitewater Case
• Packwood Accuser is the Accused
• FCC Head Sees Industry Support For TV Rules
• China, U.S. Ties Dogged By Politics
• U.S. Preps For Car Trade Battle With Korea
• U.S. Envoy Says Tough Talks Ahead Over Bosnia
• Reynolds to Announce Plans
• Antitrust Officials Looking at Merger Talks
• Federal Judge Strikes Down U.S. Extradition Law
• Report: JFK Jr. Proposed to Girlfriend
• Congress Stays Clear of International Session
• Panel: Air Force Should Probe Own Crashes
• INS Launches Plan to Speed Naturalization
• U.S., Canada Open Trade Talks
• Lawmakers Plead Refugees' Case