DOLLAR RISES ON NEWS OF YELTSIN’S ILLNESS.

The dollar rose sharply yesterday following gloomy economic forecasts from Germany combined with the news of Yeltsin’s hospitalization. (Reuter, January 8) Germany is Russia’s main trading partner so political uncertainty in Russia often weakens the Mark almost as much as the ruble. But Yeltsin was said this morning not to have a temperature and to have had a 15-minute telephone conversation with Prime Minister Viktor Chernomyrdin. In what was seen as a sign that Yeltsin is not seriously ill, Chernomyrdin was said to be planning to continue his holiday; he left Moscow yesterday for a brief vacation expected to last till about January 15. (Itar-Tass January 9) Should Yeltsin be seriously incapacitated, the constitution calls for the prime minister to assume his powers for a period of up to three months.

Russian Government Fails to Bankrupt Tax-Defaulting Auto-Maker.