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Still struggling following a fire, a family hopes to recapture the joy of Christmas B5 VOLUME250 NUMBER159 112 pages 50 cents PROOF IS IN THE PLODDING Today: Snow, ram low 40s Tomorrow: Might rain; low 40s High tide: 7:19 a.m., 7:46 p.m. Full report: Page B6 Huston FRIDAY, DECEMBER 6, 1996 Hue 5 Em first, CMmltom tap AlMght Ik -v 3 Xt for rem to Defense State; Capitol Hill. Sen. Jesse Helms, chairman of the Foreign Relations Committee, hailed the choices and called Albright "a very tough and courageous lady." Clinton also appointed his national security adviser, Anthony Lake, to be director of Central Intelligence, and elevated Lake's deputy, Samuel R. Berger, to be national security adviser.

"Each of these individuals has remarkable qualities of intellect, energy and leadership," Clinton said as he introduced his selections in the Oval Office. "All are committed to work together as a team that will rise above partisanship and rise to the chal lenges that we all face." Joined by Vice President Al Gore, who worked closely with Clinton over the last month to add his friend and former Senate colleague Cohen to the lineup of the president said he intended to "build on the strong foundation laid in the last four years, to make sure that as we enter the 21st century, America remains the indispensable nation, the world's greatest force for peace and prosperity, for freedom and security." Clinton said Albright, who has been cited for her hard work, tough-mindedness and straight talk at the UN, "embodies the best of America. It says something about our country and about our new secretary of state-designate that a young girl raised in the shadow of Nazi aggression in Czechoslovakia can rise to the highest diplomatic office in America." While the president had been under pressure from women's groups to name Albright, who immigrated to the United States with her family in 1949, he asserted that he was appointing her based on her record and ability, not because of gender. "Am I proud that I got a chance to appoint the first woman secretary of state? CABINET, Page A2B By Ann Scales and David L. Marcus GLOHE STAFF WASHINGTON President Clinton made history and fulfilled a post-election promise yesterday by appointing the first woman to head the nation's foreign policy team and the first Republican to occupy a position in his Cabinet.

Clinton's selection of UN Ambassador Madeleine K. Albright as secretary of state and retiring GOP Sen. William S. Cohen of Maine as secretary of defense was greeted with widespread and bipartisan praise on Norman Rockwell's "The Baby Sitter" holds a special place. Beyond the painting, a portrait of devotion By Yvonne Daley GLOBE CORRESPONDENT Domestic politics shapes the team URLINGTON.Vt.-Fifty years ago, Alison Poo-ley, 11, died of cancer, and her school friends raised $48 to buy a painting in her memory from artist Norman Rockwell.

Rockwell refused to accept the money and gave the Taft Elementary School "The Baby Sitter," a 25-by-30-inch oil painting that was a 1947 cover for The Saturday Evening Post, The painting ended up in the school's furnace room and barely survived the building's renovation into administrative offices in the 1970s. But it was recently valued at $300,000, and tnis year, the Burlington school board considered auction-, ing it off and using the proceeds for school needs. That was before Alison Pooley's classmates learned of the plan. Now adults with grown children of their own, they pleaded with the board not to sell the painting and promised to raise the $300,000 needed to keep it in Burlington. "There are some things that have been lost that we grew up with, some values that this painting represented to us concern for others, remembering those who have touched us, the value of every life," said Lynne Swan, one of Pooley's classmates and a member of the Save the Baby Sitter Campaign.

"We were determined hot to lose this wonderful memory." The painting, which shows a fraz-PAINTING, Page A34 By David M. Shribman GLOBE STAFF WASHINGTON President Clinton's national-security selections mark an impor-NeWS tant syrnbol- ic passage in Analysis American public life in this century: Americari domestic politics is now shaping foreign policy more than the reverse. The two have never been completely separate, of course. The nation's late entry into the two world wars and its departure from Vietnam were colored by domestic political pressures. But American national-security leadership has never been used so vividly as a means to remake society at home during peacetime.

Indeed, the appointment of the first woman, Madeleine K. Albright, as secretary of state, and of a Republican, William S. Cohen of Maine, as secretary of defense, represents more an expression of the president's vision of American domestic policy than his vision of American foreign policy. And though the diplomatic meaning of the new team mav ANALYSIS, Page A28 f.4 AP RLE PHOTO William S. Cohen The cerebral Maine Republican has been a steady-backer of US armed forces while displaying a strong streak of independence.

Story, Page A24. Madeleine K. Albright The ambassador may lack diplomatic niceties at times, but she has developed a keen instinct for the political mood in Washington on foreign policy. Story, Page A25. US pressures Whitey Bulger Assets eyed; fugitive reportedly eluded FBI in N.Y.

Benjamin B. Taylor is named as the Globe's next publisher By Charles Stein GLOBE STAFF 1 Globe, a title he will retain. The two men are second cousins. The publisher's job has been held by a member of the Taylor family since 1873, when Gen. Charles H.

Taylor joined the Globe a year after it was founded. Benjamin Taylor will be the first publisher since Gen. Taylor who comes to the job with significant experience on the editorial side of the paper. Since joining the Globe in 1972, he has held a variety of editing and writing jobs, including a stint as a White House reporter. He has also been assistant business editor, assistant managing editor and executive editor.

Since 1990, he has worked on the business GLOBE, Page 1)3 Bulger had been driving while on the lam in New York City and kept the vehicle under surveillance for several weeks in October and November, according to sources. But when Bulger failed to surface, agents concluded he had left the area. Sources said Bulger had not changed his appearance in an attempt to avoid arrest, according to a description given to law enforcement officers by a tipster. But authorities are not waiting for Bulger's capture as they turn up the pressure on Bulger's longtime associates in an effort to add money laundering charges to the litany of federal racketeering charges already lodged against Bulger. Just last week Bulger's longtime companion, BULGER, Page A20 By Shelley Murphy and Kevin Cullen GLOBE STAFF Unable to lay their hands on James J.

(Whitey) Bulger, a fugitive for nearly two years, law enforcement authorities are stepping up efforts to seize his assets and break up his notorious network of straws: Sources meanwhile say the FBI came close to nabbing the elusive South Boston crime boss last month in New York City. The FBI and State Police have investigated other purported sightings as far away as Ireland and as close as Quincy and Bulger's Southie powerbase. "We'll get him. It's only a matter of time," said one law enforcement source. FBI agents believe they found a car that Benjamin B.

Taylor will become publisher of The Boston Globe April 1, a changing of the guard that will make him only the fifth publisher in the paper's 125-year history. He will succeed William O. Taylor, who xhas been publisher since: 1978. William Taylor will continue as chairman of the board -and chief executive of Globe paper Co a subsidiary of The New York Times Co. William Taylorsaid he was stepping down because he will turn 65 next year.

Benjamin Taylor, 49, is president of the GLOBE STAFF PHOTO JOHN TLUMACKt BENJAMIN B. TAYLOR Will retain title of president Sports Plus Globe Online www.boston.comglube 4 9 5 3 9 World A Bid to defuse protests Serbian president Slobodan Milosevic permits a small radio station that he had shut down to go back on the air. A2. MetroRegion Discrimination case Boston Housing Authority lawyers knew that two police officers could have cast doubt on a Charlestown resident's claims of harassment. LivingArts Literary clout Oprah Winfrey's televised "Book Club" has a startling influence on the nation's best-seller lists.

111 unnm Bimma Ask The Globe "C20 iClassifiecl C24-C27 Comics C20 'Autos B11-B16 Deaths C22 Help Wanted C25 Editorials A30 Professional C25 Horoscope C20 Real Estate C28 Lottery B2; Apartments C29 TVRadio C18-C19; 'Comm'lInd'l C29 ccmc. Market Basket C31 YnihtsHcmts E2 Learning E9 Business Fraud accusations Millions of unwary gourmet coffee drinkers may have been victims of a bean-swapping scheme. Meet the manager Red Sox skipper Jimy Williams, who returns to Boston today, allows a glimpse into his life. ill.