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Cell 12 on wing three is about 6ft wide by 10ft long. A small window covered by wire mesh offers the dull view of a wall outside. There is a small television on a plastic desk in one corner and a metal toilet in the other.

Only the long, specially-adapted, lever tap handles give any indication as to the identity of the occupant. For the past six years this has been "home" to Abu Hamza, the notorious Muslim cleric. He is one of just nine prisoners held in Britain's most secure prison.

Holding the country's most dangerous criminals, HMP Belmarsh's High Security Unit (HSU) is a prison within-a-prison. And, until now, almost nothing has been known about it. Even within the main jail, most of the 843 prisoners have no idea what goes on inside.

But this week The Independent became the first newspaper to be granted full access to the HSU and allowed to speak to the men whose job it is to guard the country's most dangerous criminals. We saw the cramped living conditions and tedious regimes that men such as the 21/7 bombers and Bilal Abdullah, the man behind the Glasgow Airport attack, have experienced.

To get inside the main prison I had already negotiated 15 gated doors and had my fingerprints scanned. On arrival at the HSU – a windowless, grey concrete building opposite the prison's recently-built five-a-side football pitch – the security checks began again.

Surrounded by CCTV cameras in a small carpeted reception area – the only carpet in the block – I removed my shoes and belt and put all my belongings through an X-ray machine. I walked through a metal detector and a was given a body search – the lining of my jeans, the soles of my feet and inside my mouth were all checked.

This security is not just for visitors – the prison guards must go through the same search before they enter.

At the end of the reception area is a red iron gate. Passing through this door involves at least a four-minute wait, as it can only be unlocked by staff in the control room who check people's identity using remote cameras which zoom in to study their faces.

Once through you are faced with four more doors, each leading to a different part of the unit. No two doors in the unit can be opened at the same time.

The HSU is on two floors and is split into four "spurs". Each one has 12 single-occupancy cells. Built alongside the main prison in 1991, the HSU was originally used almost exclusively to house IRA prisoners. But since then it has held KGB agents, al-Qa'ida terrorists and even Charles Bronson – Britain's most violent prisoner – who had a whole spur to himself.

But while Bronson was deemed too dangerous to mix with others, the men currently held in the HSU are not there because of any physical risk they pose. For the most part it is their notoriety which earns them a place there.

"We get a lot of high-profile prisoners, and prisoners who have the means and capacity to escape," one of the the HSU managers explained. "The type of prisoner we have here is a lot different to the type of prisoner in the normal prison. The prisoners here have the means and ability to achieve the results prisoners somewhere else would not."

That applies to Curtis Warren, who is currently being held in the HSU. He is a gangster, a drug trafficker and was once Interpol's most wanted man.

The fear around Warren, a powerful and influential criminal on the outside, is that he would be both of these things inside the prison were he to mix with other prisoners. And, despite the fact that Belmarsh has never had a prisoner escape in its 19-year history, he would also be a possible escape risk.

A different fear exists around Abu Hamza: that he would use his preaching to radicalise other Muslim inmates. He cannot do that from the confines of the HSU. Indeed, he cannot do much.

The prisoners here have a similar regime to the inmates in the main prison except that they are not allowed to work – prison jobs include packing teabags and cleaning.

They are in their cell for 12 hours and out for 12. The day starts at 8.10am. They are given 20 minutes for breakfast, an hour of outdoor exercise, an hour to use the gym and have to clean the wing for half-an-hour a day. The rest of the time spent out of their cell – five hours – is "association" time.

During this period they can chat to one another, play pool or table football, watch television, or use the rowing machine or exercise bike which sit on the wing. There is also a laundry and a small shower cubicle.

While it may not sound a particularly taxing regime, it is far from stimulating. And it is certainly not the holiday camp which some commentators would have you believe. The area is desperately cramped and uncomfortably warm. During their five hours of association, the HSU prisoners cannot leave the confines of their spur.

The only outside areas are two surprisingly large exercise yards, surrounded by high fences topped with barbed wire and metal mesh for a roof.

Passing one yard I saw two men slowly pacing around the perimeter. They were being watched by four prison guards. At that moment an alarm went off. Unlike the perception most people have of a prison, it was not an audible siren but a coded message via the guard's radio. We were told we were not allowed to move. As we watched the two men exercise, one of them shared a joke with a guard.

It was at this point an officer warned me that those men, despite already being in the HSU, had been categorised as "exceptional risk" prisoners and were not allowed to mix with anyone except each other. He added: "Those two men are two of the most powerful people in prison in the whole of Europe."

If the HSU sounds like an additional punishment, it is not meant to be. In fact the prison has gone to surprising lengths to keep its most dangerous men happy. Abu Hamza's disability, the fact that he has no hands (he is not allowed his hook in prison), has been catered for. Two cells in the HSU have been kitted out with special taps, shelves and clothes pegs. One Spanish inmate – believed to be Garikoitz Ibarlucea Murua, an alleged member of the Basque terrorist organisation ETA – is provided with Spanish books and newspapers.

Staff are warned against becoming too friendly with the inmates. Officers on the HSU are only allowed to work there for three years before being moved back to the main prison. They are also warned against sharing any personal details with the prisoners.

It is for this reason that the HSU manager asks for his first name not be be published. Senior officer Murray explained: "Our staff here are trained to spot manipulation and conditioning. We don't like staff to become over-friendly because it can get to the point where a prisoner has a member of staff in his pocket and can manipulate him for favours or telephone calls."

Precautions are taken to ensure that prisoners cannot hide anything in their cell. Every few months men are moved to a different cell and the cells are searched. This is why Hamza has two.

The day I visit, everything is calm in the HSU. Inmates, in their prison-issue, maroon jogging-bottoms, use the gym under the watch of the guards.

But it is not always like this. The prison governor Phil Wragg recalls an incident where the HSU inmates refused to return to their cells and had to be forcibly restrained. But he dismisses a newspaper story which suggested that al-Qa'ida had taken over the HSU and that the prisoners have been radicalised.

Misbehaviour in the HSU is dealt with by punishment in the form of the segregation unit, where prisoners must spend 23 hours a day in their cell. And if an inmate is particularly troublesome, he will go in "the box": a room with nothing inside it except a perspex window.

Due to its added security and smaller prisoner numbers, the safety record of the HSU is better than the main prison. There has been one accidental death – where a bag of drugs burst inside a prisoner – and one incident where an IRA prisoner attempted to slit his throat.

But, unlike the main prison, where there have been three suicides in the past three months, no one has ever killed themselves in the HSU.

And, despite the differing crimes of the men in the HSU, Murray says that the atmosphere is generally good. "Prisoners over here have to get on because it is such a closed environment," he said. "You would be surprised at who gets on with who. There are no gang or religious affiliations. Muslim prisoners and non-Muslim prisoners get on very well.

"And from my experience prisoners going from here back into the main jail hate it. In the main jail, prisoners do not have the same amount of contact with the staff. Also for many of them it gives them kudos to be over here."

While the prison staff are careful not to discuss the identities of current inmates, they enjoy name-dropping previous prisoners: "I remember when I heard Charlie Bronson banging on his cell door..." and, "When I first met Ian Huntley..." are the beginnings of of two tales I heard.

And they are honest enough to admit that even they are intrigued by the men they look after. Senior officer Jason Hancock explained: "There are evenings when I will be watching the news and hear about a load of terrorist arrests and, because of the type of prisoner we look after, I think to myself: 'I'll be seeing them in the morning'.

"And I have been known to go home and tell my wife: 'Guess who I bumped into today...' But there are many shocking things that we see that we do not go home and tell our friends and families about.

"A lot of things stay within the prison and the officers have their own coping mechanisms. Some of us tell jokes about things because we don't like to admit that something has affected us more than we let on."

One of the most intriguing things about HMP Belmarsh is the unique "two-prison" set-up. Outside the HSU is a local prison with convicts on short-term sentences. Not only are the prisoners separated, but the guards' paths do not cross either. And in some ways the conditions in the main jail are worse than those in the HSU.

John Steadman, a 40-year-old convicted cocaine dealer, is 15 months into a five-year sentence. He is sitting in his cell watching television when I visit.

"Prison is boring and repetitive," he says. "This is my first sentence and definitely my last. Yes we get to watch television and play pool, but those things are just something to kill the time with. You could put a sauna and a sunbed in here and I'd still rather be outside."

It is not just the prisoners who have complaints; the guards often mention the low levels of staffing – there are just over 400 officers on rotating shifts and they are acutely aware that they are always vastly outnumbered by the prisoners. They also have to deal with drugs and mobile phones being smuggled into the prison. This is particularly annoying due to the fact that many are brought in by corrupt guards.

Despite this, Phil Wragg, the governor, is happy with his prison. "This is the best command in the prison service," he tells me. "We have the highest security and the most resources. It is also the most expensive prison to run.

"Yes, it has a bad name, but we do a good job. It has a bad name for all the wrong reasons. It has a bad name because people write things about it who, frankly, are not qualified to do so. And it is certainly not a holiday camp."

It doesn't look like one either. And obviously the prisoners inside agree. As I leave the prison I walk past guards with dogs and an exercise yard full of prisoners who press their faces against the wire fences. One shouts out to me. "Let me tell you lad," he says, nodding towards the gate and the outside world, "You are a very lucky man."

Belmarsh's most notorious prisoners

Abu Hamza

Extremist cleric who lost his hands in an explosion. On remand pending extradition request from the US.

Waheed Zaman

A relatively new arrival to Belmarsh, he was convicted of plotting to bomb a transatlantic flight.

Garikoitz Ibarlucea Murua

Alleged Basque separatist who is wanted for terrorist offences in Spain.

Curtis Warren

One of Britain's most dangerous gangsters, Warren is currently serving 13 years for smuggling drugs.

Charles Bronson

Dubbed Britain's most violent prisoner, Bronson once had an entire wing of Belmarsh HSU to himself.

Ian Huntley

The Soham murderer was held in Belmarsh's high security unit before his trial and conviction in 2005.

Kenneth Noye

Road rage killer who fled to Spain after stabbing Stephen Cameron, 21, in Swanley, Kent, in 1996.

Ronnie Biggs

Spent 36 years on the run and then eight in Belmarsh. Released last summer on compassionate grounds.

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Liberal Democrat ministers have warned that the Conservatives will inflict lasting political damage to Nick Clegg's party if voters think the coalition Government is relishing the task of cutting public spending.

Although the Cabinet has agreed to try to blame the cuts on its inheritance from Labour, senior Lib Dems are worried that some Tory politicians – including George Osborne, the Chancellor – give the impression they are on a Thatcherite mission to shrink the state.

One Liberal Democrat minister warned yesterday: “If we look as though we are enjoying it, we’re dead. We have to take people with us.”

Another minister from Mr Clegg’s party said: “Some of the language coming out of the Treasury is causing concern. We have to remember that we are talking about the jobs of real people and vital services that people depend on.”

Liberal Democrats are arguing that is it vital for the coalition to show voters there will be some “light at the end of the tunnel” after a four-year programme of cuts, so that it does not look like an ideological crusade.

They fear that the severity of the cuts of up to 40 per cent that the Chancellor has demanded of Whitehall has not yet dawned on the public. They say the outcry over cuts to the school building programme – the biggest cut noticed by voters so far – is a foretaste of what is to come after a government-wide spending review is concluded in October.

Some Lib Dems believe privately that David Cameron is more sympathetic to their plight than Mr Osborne.

Anxiety about the spending squeeze is also growing on the Liberal Democrat backbenches. Three MPs – Bob Russell, Mike Hancock and Adrian Sanders – have signed a Commons motion expressing concern that almost one million people, including 170,000 pensioners, will lose an average of £12 a week from cuts in housing benefit announced by Mr Osborne. It says that he is hitting the unemployed the hardest.

The MPs joined forces with Labour backbenchers to call on the Government “not to proceed with policies which will force those on low incomes to leave their homes and existing communities”. They warn that there is a real risk the benefit cuts will push hundreds of thousands of people into poverty, debt and even on to the streets if they are evicted from their homes.

Liberal Democrat ministers insist they will ensure the coalition “cuts with care” and protects the most vulnerable people in society. As the Commons begins its summer break, Mr Cameron warned of “difficult decisions” ahead on the cuts as he moved to quell concerns on his own backbenches about the coalition.

In a letter to all his MPs, he said: “Of course there are challenges ahead, and yes, there have been compromises as a result of this coalition. People will be disappointed that some policies have had to be discarded – and so am I. I’m not going to pretend that having two parties in one government is going to be easy, or that there will not be more difficult decisions ahead of us. But we must remember the most important thing of all: Britain now has something that all Conservatives believe in profoundly – a strong and stable Government acting in the national interest to do the right thing for the long-term.”

The Prime Minister said that in just 10 weeks, the coalition had shown its intent to be a great reforming government.

Liberal Democrats fear the looming cuts are responsible for the party losing about a third of its support in the opinion polls since the May election. Much of it appears to have switched to Labour, which has made Mr Clegg’s party the focus of its attacks.

Yesterday Labour accused Mr Clegg of misleading voters at the election after he suggested that he decided before polling day that the cuts would need to start this year. At the election, the Lib Dems and Labour opposed the immediate cuts backed by the Tories.

The Deputy Prime Minister told a BBC Two documentary last night on how the coalition was formed that he did not change his mind during the negotiations with the Tories after the election resulted in a hung parliament.

“I changed my mind earlier than that... between March and the actual general election, a financial earthquake occurred in on our European doorstep." Asked why he did not announce his change of heart, he told the BBC political editor Nick Robinson: “Ah, to be fair we were all I think reacting to very very fast-moving economic events.”

Liam Byrne, Labour’s shadow Chief Secretary, said: “This shows Nick Clegg simply misled voters. He’d clearly decided before the election that David Cameron was his partner of choice.”

Lib Dems believe that, while many Tory supporters will back the cuts, they will be opposed by many of those who voted for Mr Clegg’s party in May.

A ComRes survey for the BBC this week found that 57 per cent of the public believe that cuts of 25 per cent – Mr Osborne’s minimum demand for most government departments – would be too severe. The same proportion (57 per cent) of Lib Dem voters agree, compared to only 46 per cent of Tory supporters.

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MAY is an anxious month for an MBA student. Exams over, this is the time to get down to the real business finding out whether a job exists at the end of the programme. Students should take cheer that the job market is better than it was last year, though it could hardly have been worse. But as companies emerge from recession it seems that many of them have decided to rip up their old recruitment policies.

In the past it was common for firms to indulge in large-scale recruitment programmes: hoovering up the most talented students from business schools en masse, often for indeterminate roles. Such behaviour is increasingly rare. Instead firms are returning to the basics, hiring MBAs only when specific positions need to be filled. This means that being among the best in class is no longer enough to guarantee a job. Firms are more interested than they once were in candidates' particular skills and past experience. This also means that business students are competing closely with skilled and experienced non-MBAs too.

This result is that the MBA—so long the natural choice for those looking to switch careers—is no longer seen as an instant ticket to a new vocation. Derek Walker, head of the careers service at Oxford's Saïd Business School, says that students who are graduating this year will have to show much more patience than their predecessors did. In the past MBAs could hope for what he calls the "classic triple jump": a change in function, role and location. Now students may have to accept that they will change only one of the three. Attaining the other two changes may instead depend on proving oneself for several years within a chosen firm.
This means managing students' expectations. Diane Morgan, of London Business School, says that the dilemma for business schools is how to be honest about students' prospects without dampening their enthusiasm. Many students, forced to think harder about the cost-benefit of an MBA, do appear sanguine about the new conditions. These days fewer MBA students believe themselves entitled to a stonkingly well-paid job at the end of a degree, she believes. Pragmatism is the order of the day. Many students had used redundancy money to help fund their studies and have moderated their hopes of what might come next. A survey from the Graduate Management Admissions Council, a business-school association, found that despite continued pressure on salaries and, in particular, bonuses, 52% of the most recent MBA graduates said their starting salary met their expectations.

Give the rest a chance

The other big change is in the type of company that is recruiting students. In the past, consulting and finance firms did by far the most hiring. The recession hit them both, but while recruitment by consultancies is almost back to the pre-recession level, finance positions have dried up.

So MBAs are looking for alternative employers, including unfashionable organisations that were neglected in the past. Britain’s Royal Mail has started to recruit MBAs, for example

Mr Walker sees advantages to this change. Although students may not earn as much as they would have done in finance, firms from other sectors are generally better at developing students' careers. He talks wistfully of people celebrating 25 years of service at Novartis, a pharmaceutical company, something he rarely sees at a bank.

But for these new recruiters, too, patience is required. Careers officers say that it takes time for a company to build a brand on campus. It takes time, too, for firms to build a successful young-professionals programme.

And for those students left unimpressed by the new choices, there is a further option. Business schools are reporting a huge increase in interest in entrepreneurship or working for early-stage companies. It may be more risky and possibly less financially rewarding, but Michelle Antonio, from Wharton Business School in Pennsylvania, says that her students feel they are pursuing something worthwhile.

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DELHI, Iowa — What was a sparkling lake last week is now a muddy graveyard. The skeletons are mangled white boatlifts wedged in rocky sandbars.

After heavy rains forced a dam break over the weekend, people here in eastern Iowa were coming to grips on Monday with the jarring reality that their beloved

lake was gone. Lake Delhi, a popular getaway in Delaware County surrounded by waterfront vacation homes, had drained itself to a stream.

The water on the west side of the dam, which was a quarter-mile wide last week, spanned 100 feet on Monday, according to Jeff Driscoll, a state trooper. He

said it had dropped a foot in four hours that day.

Now the lakefront homes look out over acres of muck.

“The lake’s pretty much dead,” said Mike Beatty, 54, who lived here 29 years and was hours from closing on the sale of his uninsured home when the flood

destroyed it. “It’s just a creek, basically. It’s a sickening feeling knowing that you basically lost everything.”

When the Lake Delhi dam burst, so did a thriving tourism industry for the region. The nine-mile, 450-acre lake was rimmed by 900 homes and vacation cabins.

Most of the owners came from outside the county.

On summer weekends, Lake Delhi (pronounced DEL-high) drew about 3,000 people, said Jim Willey, president of the Lake Delhi Recreation Association. Visitors

traveled from other states to sit at its shore, said Beverly Rahe, assistant director of Delaware County Economic Development. “It’s a beautiful place,”

she said. “It was absolutely beautiful.”

The lake generated about 10 percent of the county’s tax base, which last year totaled $24.9 million, Jodi Cahalan, a county assessor, said.

Chris Stender, 42, whose home and marina on the lake were damaged by the flood, said he considered that estimate low. No matter, it is hard, he said, to put

a price tag on his life and livelihood. “There’s no way I’ll make it with no work and no water,” he said.

About 100 boaters entered the lake from his marina each summer weekend, Mr. Stender said. Now he is getting calls asking to have boats prepared for the

winter. “Maybe there’ll be water next year,” he said.

Tina Maloney, 38, owner of the Pizza Place on the north side of Lake Delhi, said she usually sold 300 pizzas on a Friday night in the summer. She said she

was expecting to lose 80 percent of that business, adding, “I’m scared.”

One of her employees hung two green signs on Monday that read, “We are open!”

Thousands of fish have been flushed out by the lake’s rapid drop — largemouth bass, bluegills, crappie and channel catfish — said Dave Marolf, the

fisheries biologist and hatchery manager at the state’s Manchester Trout Hatchery. If the dam were rebuilt, he said, the Iowa Department of Natural

Resources would be responsible for restocking the lake.

Whether it will be rebuilt is unclear. The dam is privately owned by the Lake Delhi Recreation Association, but the road above it, which the flood

obliterated, is county property.

“All we have today is rumors, and they range from yes to no,” Mr. Marolf said.

Some locals were skeptical.

“I think there will be a fight with the environmentalists and the corps of engineers, and I don’t think it’ll be fixed five years from now — if at all,”

said Billie Zumbach, 58, a bookkeeper from Coggon. “Some rare species will be found, and there’ll be a dispute. There’ll be months of haggling. That’s

just the way it is.”

Others were more hopeful that the lake would be revived. Marcheta Cooey, 81, a widow who is a retired resort owner, is the second of five generations to

enjoy Lake Delhi. It has been home her entire life and is part of her identity, she said as she filed her fingernails.

“I’m positive they’ll fix it,” she said.

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Expert systems are now emerg¬ing from our research institutions, factories, laboratories, hospitals, universi¬ties and military units.They are working as learned consultants (MR ) ,wise problem-solvers, flexible decision-makers , and patient teachers.

Not driven by the desire to develop general problem solving techniques that had characterized before, expert systems address problems that are fo-cused.In essence, an expert system is a highly specialized computer soft-ware.lt has accumulated expertise (^r n^flW)from human experts in a spe¬cific domain (^l^K)and serves as the substitute for those experts when they are absent.

Expert systems are the product of cooperation between the knowledge engineers and the experts.The knowledge engineer is an individual responsi¬ble and competent for building the expert system but is not an expert in the domain of that expert system.He/She understands the domain and learns what major problem-solving procedures are involved in that domain.The job for a knowledge engineer is to work with the experts (one or more)to extract ($t?X), convert and compile (tSH)expertise from the experts into knowl¬edge stored in the knowledge base in suitable representation formats through programming in one of the AI (artificial intelligence)languages.The expert who serves as the source of knowledge of the expert system is, of course, an experienced specialist in the domain.But his/her knowledge must first be broken down into primitive elements such as the IF-THEN rules, in a form suitable for representing knowledge in an AI program.

To transform an assembly of written expertise into a bulk of rules is a diffi-cult job.lt may take months or even years.But it is worthwhile to do so .because

only in this way can expertise be acceptable to any present AI program and be available to non-experts who use the expert system for practical purposes.

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But today opponents have so complicated its development that no nuclear plants have been ordered or built here in 12 years.

The greatest fear of nuclear power opponents has always been a reactor "meltdown" ( tt- F*3 £§ VC ). Today,the chances of a meltdown that would threaten U. S. public health are very little. But to even further reduce the possibility, engineers are testing new reactors that rely not on human judge¬ment to shut them down but on the laws of nature. Now General Electric is already building two advanced reactors in Japan. But don't expect them ever on U. S. shores unless things change in Washington.

The procedure for licensing nuclear power plants is a bad dream. Any time during,or even after,construction,an objection by any group or individual can bring everything to a halt while the matter is investigated or taken to court. Meanwhile, the builder must add nice-but-not-necessary in-provements, some of which force him to knock down walls and start over. In every case where a plant has been opposed,the Nuclear Regulation Commission has ultimately granted a license to construct or operate. But the victory often costs so much that the utility ends up abandoning the plant anyway.

A case in point is the Shoreham plant on New York' s Long Island. Shoreham was a virtual twin to the Millstone plant in Connecticut, both ordered in the mid-60's. Millstone, completed for $101 million, has been generating electricity for two decades. Shoreham,however,was singled out by anti-nuclear activists who,by sending in endless protests,drove the cost over $5 billion and delayed its use for many years.

• Shoreham finally won its operation license. But the plant has never produced a watt of power. Governor Mario Cuomo,an opponent of a Shore-ham start-up, used his power to force New York's public-utilities commission to accept the following settlement: the power company could pass the cost of Shoreham along to its consumers only if it agreed not to operate the plant! Today,a perfectly good facility,capable of servicing hundreds of thousands of homes, sits rusting.

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Asteroids are bigger versions of the meteoroids (Sift. JL)that race across the night sky. i/lost orbit the sun far from Earth and don't threaten us. But there are also thousands of isteroids whose orbits put them on a collision course with Earth.

Buy $ 50 million worth of new telescopes right now. Then spend $ 10 million a year for he next 25 years to locate most of the space rocks. By the time we spot a fatal one, the icientists say, we'll have a way to change its course.

Some scientists favor pushing asteroids off course with nuclear weapons. But the cost wouldn't be cheap.

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First of all, the two-day weekend provides college students with more time to reflect and consolidate what they have learned in the previous week. Another advantage is that the two-day weekend may enable college students to diversify and enrich their campus life. By taking one more day for meaningful relaxation, they will be mentally refreshed for a new five-day routine week. Finally, the two-day weekend system has undoubtedly become good news for those who wish to earn their own bread. By doing some part-time jobs, they will gain their sense, of self-independence and adaptability to their future life.

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Of major concern to Amtrak and its advertising agency DDB Needham, were the long-distance western routes where ridership had been declining significantly.

At one time, trains were the only practical way to cross the vast areas of the west. Trains were fast, very luxurious, and quite convenient compared to other forms of transportation existing at the time. However, times change and automobile became America's standard of convenience. Also, ah- travel had easily established itself as the fastest method of traveling great distances. Therefore, the task for DDB Needham was to encourage consumers to consider other aspects of train travel in order to change their attitudes and increase the likelihood that trains would be considered for travel in the Vest.

Two portions of the total market were targeted: 1) anxious fliers — those concerned with safety, relaxation, and cleanliness and 2) travel-lovers — those viewing themselves as relaxed, casual, and interested in the travel experience as part of their vacation. The agency then developed a campaign that focused on travel experiences such as freedom, escape, relaxation, and enjoyment of the great western outdoors. It stressed experiences gained by using the trains and portrayed western train trips as wonderful adventures.

Advertisements showed pictures of the beautiful scenery that could be enjoyed along some of the more famous western routes and emphasized the romantic names of some of these trains (Empire Builder, etc.). These ads were strategically placed among family-oriented TV shows and programs involving nature and America in order to most effectively reach target audiences. Results were impressive. The Empire Builder, which was focused on in one ad, enjoyed a 15 percent increase in profits on its Chicago to Seattle route.

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After Tesco entered the Thai market in 1998 with its brand of colorful, well-stocked superstores, angry' local competitors tried to impede the powerhouse U. K.-based retailer's progress with a wall of lawsuits— including one that would have forced Tesco Lotus, the company's regional subsidiary, to shut off air conditioning because chilly stores posed a public health hazard to the equatorial Thai people. Frivolous legal actions were a minor nuisance compared with what came next. Over a five-month period last year, two Tesco Lotus outlets were bombed, another peppered with automatic weapons fire and yet another hit by a rocket-propelled grenade.

Despite threats by governments to ban them, chains including France's Carrefour and U. S.-based WalMart are ramping up plans to hundreds of new outlets throughout the region over the next several years.

The onslaught threatens to run local retailers right out of business. Local retailers are not the only ones displaced when the superstore conies to town. Because of their high turnover, hyjjermarkets can throw their weight around with local suppliers by demanding lower prices. Costco buys directly from manufacturers to stock its two stores in Japan—a practice that disrupts the country's entrenched but inefficient distribution networks. That's not to say the foreigners are unstoppable. Carrefour, the world's second largest retailer, tried and failed to crack the Hong Kong market in the 1990s. Hong Kong consumers seemed to prefer familiar neighborhood chain stores.

Undeterred, foreign hypermarkets have learned to adapt, often by forming joint ventures with domestic partners and by stocking local wares. "A lot of people make the mistake of thinking that when Wal-Mart comes to town, we set up exactly the same system as we do everywhere, says Holley of Wal-Mart. 'But we take our best practices and customize it to each market."

Mike Sinegal, head of Costco's Japan operations, agrees that stores must trim their sails according to prevailing winds, but dismisses the notion that Asian consumers are very different from shoppers in, say, Los Angeles. When Costco entered Japan, he says, local suppliers insisted American shampoos wouldn't sell because Japanese hair is different. But Costco's private-label brand quickly became one of its top-selling products. "The bottom line is that the uniqueness of these markets is overrated," says Sinegal.

Local retailers asserts that they are more aware of the local people and their consumption customs compared with the foreigners. Shoppers, however, don't seem to care. Because of economic globalization, it doesn't matter whether you are a foreign store or a domestic store. What's important is that you provide what local customers really need at a price that most people can afford.

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