The Brattleboro Reformer from Brattleboro, Vermont • 1

Twin State BRATTIFB TOWN Hi Lifestyles of the rich Page 9 Busing out all over Page 11 20 PAGES TUESDAY, JULY 1, 1997, BRATTLEBORO, VERMONT VOL 85 NO. 104 1997 BRATTLEBORO PUBLISHING CO. 50' Britain hands over Hong Kong to China Its all history now By MARCUS ELIASON Associated Press Writer HONG KONG (AP) With a midnight change of flags, an anxious, excited Hong Kong ended its 156-year British colonial era and embarked Tuesday on a uncertain new age under the sovereignty of an exultant Communist China. cs The few pro-democracy protests were sparse and peaceful, and the Chinese army moved in with punctilious discipline. Except for rain that drenched the farewell ceremony, the eight-hour rite of passage unfolded with a flair worthy of a territory famous wealth and sophistication.

i The brief ceremony, een wosldwide on TV, administered the coup de grace to 19th-century colonialism, and erased what China has always regarded as a fundamental humiliation Britains seizure of Hong Kong in 1841 from a Chinese emperor too weak tdefend his country. The broad smile of Chinese President Jiang Zemin summed up Chinas triumph. For Britain, it was a melancholy reminder of its shrunken role on the world stage, although Prince Charles, along with Chris Patten, the last British governor, managed to turn their retreat into a dignified, restrained spectacle gf British patriotism. For Hong Kongs 6.3 million people, the biggest questionwas still unanswered: Can a free capitalist society survive in the embrace of a Communist power, even one that has promised to keep Hong Kong politically and economically free? The initial signs seemed mildly encouraging. At dawn, the Chinese army poured in 4,000 troops in long convoys of trucks, jeeps, buses and armored personnel, carriers.

Britain had sharply protested the use of armored vehicles, saying they would frighten people. But they were met by hundreds of people lining the road in pelting rain, waving flags, banging cymbals and applauding. Some cars stopped, Chinese officers got out beaming, and they were By TED ANTHONY The Associated Proa HONG KONG (AP) Britains prince sailed off. Chinese troops, silent and somber in floodlit buses, crossed the border. A red flag replaced a blue one.

And when the sun finally set on the British colony, it rained. Snapshots for Hong Kong's scrapbook, the images of British ends and Chinese beginnings swept by with dizzying speed. Prince Charles, his eyes sad, watched dejectedly as the Union Jack came down seconds before midnight: Its Chinese counterpart the Wuxing Hongqi, or Five-star Red Flag reached the top of its staff eight seconds after the hour. And then, so quickly, it was over. A small smile crossed Chinese Premier Li Pengs face.

Chris Patten, the outgoing colonial governor whose reforms and rhetoric so enraged China, finished a day of tears, lip-biting and goodbyes by doing his best to avoid contact with Chinas leaders. Minutes later, while his three daughters cried, Patten boarded the royal yacht Britannia with the prince. It slipped into the darkness, carrying their flag and their empires fading mantle with them. They left behind a territory enjoying the beginning of a five-day national holiday with a mix of See HISTORY, Page 8 AN HONOR Members of the Chinese armed forces honor guard stand at attention, under the Chinese and British flags during the ceremony marking the handover of Hong Kong to China Tuesday. See HANDOVER, Page 8 Windmills in business Justice Ernest Gibson HI retiring No tax breaks Townshend store, siudio lose in bid Amestoy said Monday hes grateful to have had Gibson guide him in his first months on the job.

Hes been a wonderful colleague. Hes been an immense help to me as a new chief justice, Amestoy. said. Gibson will continue to live at his home on Baldwin Street, a short walk from the Supreme Court, and has offered to pinch-hit for other judges when needed, Amestoy said. Im glad hell be just down the street, because well have occasion to use him, both formally and informally, the chief justice said.

Rep. Marion Milne, the chairwoman of the Judicial Nominating Committee, says her panel has received numerous applications for the Supreme Court seat See GIBSON, Page 8 By CHRISTOPHER GRAFF The Associated Prom MONTPELIER Supreme Court Ernest Gibson III plans to retire at the end of the month. I have enjoyed it all, said Gibson on Monday, reflecting on a distinguished and diverse career in public service that spanned 40 years. Gibson, who turns 70 in September, must step down by the end of the -year under the states mandatory retirement law for judges. The retirement will give Gov.

Howard Dean his second appointment to the five-member appeals court. In January he named then-Attorney General Jeffrey Amestoy chief justice. Clinton vows to resist GOP plans posal, Clinton embraced the con cept of a tax-deferred savings account for education expenses, agreed to support greater relief from estate taxes and signed off on a reduction in capital gains taxes all key elements of the measures that cleared the House and Senate last week. Key differences remain with Republicans on the details in all those areas, however. Clinton also sweetened his own proposal for a $500 per-child credit, a proposal that gained prominence in the Contract With America that Republicans rode to power in the 1994 elections.

Clinton also embraced the 20-cent- By DAVID ESPO The Aaoociatod Pro WASHINGTON Laying down markers in the tax debate, President Clinton offered overtures to Republicans on capital gains cuts and other key issues on Monday but vowed to resist GOP proposals he said provide too little relief to the middle class. I dont want to start talking about veto now, Clinton said in an appearance on the White House lawn. "I want to craft an agreement that can be written into law and can be passed with a bipartisan majority of both sides of Congress. In revising his own tax cut pro per-pack hike in the cigarette tax contained in the Senate bill. Final negotiations are expected to begin in earnest next week as the House and Senate attempt to reconcile their two bills and the White Houses wishes.

Republican congressional leaders hope to have the final compromise on Clintons desk by early next month for the largest package of tax relief in 16 years. At the same time he spoke optimistically, Clinton criticized the congressional plans. They do an inadequate job of opening the doors to college. They direct far See TAX CUTS, Page 8 By BONNEY PRINCE Reformer SUIT TOWNSHEND Two local businesses, asking for tax relief after being put through arduous paces and expense by the states Act 250 process, were shot down by townspeople at a special town meeting Monday night. Both the River Bend Marketplace and Crest Studios had asked for tax stabilization, which allows businesses to pay only a percentage of their local taxes for several years while the town holds a lien on their property.

The businesses would be asked to pay 25 percent the first year, 50 percent the second, 75 percent the third and return to one hundred percent at the end of the contract. Selectmen Chairman Kit Martin told voters that the reason for tax stabilization was to give new or expanding businesses a chance to establish a foothold in town and relieve their original burden after the expense of permits, construction and other costs associated with starting a new business. The River Bend Marketplace, owned by Paul Bedortha and William Miller, had asked for relief on their entire tax liability, which on the stores current assessed value of $736,800 would be approx- See TOWNSHEND, Page 8 Brittany McGesigle EVERY LITTLE BREEZE Officials from Green Mountain Power and Zond Corp check out the windmills on the top of Mount Waldo in Searsburg. The 11 turbine wind generating station formally began commercial operation Monday. The six-megawatt facility, constructed by the Zond Corp.

of California, is the largest commercial wind generating station east of the Mississippi River. The windmills are the culmination of 20 years of research. Power shortage expected today Benedict Arnolds gunboat found in Champlain By DAVID GRAM The Aaoociatod Pro FERRISBURGH A Revolutionary War gunboat that was part of a fleet commanded by Benedict Arnold before he turned traitor has been found sitting upright at the bottom of Lake Champlain, astonishingly well-preserved by the cold, deep water for the past 220 years. The wooden vessel, which was either abandoned or scuttled by retreating American forces after a losing 1776 battle against the British, was found by a team scanning the lake for wrecks before they become encrusted by a new invader, the tiny zebra mussel. The 54-foot vessel, whose name is not yet known, is largely intact, its mast still standing over 50 feet high and its large bow cannon still in place, said Art Cohn, director of the Lake Champlain Mari time Museum.

This could prove to be the most significant maritime discovery in American history in the last half-century," said Philip Lundebcrg, curator emeritus of naval history at the Smithsonian Institution's American History Museum. The ap parently excellent condition of the gunboat is See GUNBOAT. Page 8 will bring unhealthy air quality, said John DeVil-lars. New England administrator for the Environmental Protection Agency. Were asking New Englanders to let the lawn grow for a couple of days and to leave the car in the garage in favor of public transportation or other means of travel, he added.

So if you cant drive to the ocean or lake, theres also na sitting at home in front of the air conditioner "You can help utilities in the region balance electricity supply and demand by watching your elec- See SHORTAGE, Page 8 By DAVID GRAM The AaooctaUd Pr a MONTPELIER Heat, humidity, poor air quality and a request to conserve power are to be the order of the day today, a mix of circumstances resulting from New Englands summer climate and humans use of energy. As EPA officials in Boston were urging people to leave the car in the garage. New England Power Pool planners were scrambling to keep electric demand low enough so they wouldnt have to fire up their dirtiest plants, officials said Monday. "It is unfortunate that the balmy days of summer ArMrMM SPITTING IMAGE A replica of the Revolu tiooary War gunboat Philadelphia Boats at the Lake Champlain Maritime Museum in Fer risburg on Monday..