ISSUE DATE: JANUARY 23, 1989; Vol. CXIII, No. 4

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IN THIS ISSUE:-
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COVER: HOW TO Survive on $300 Billion a Year. Bush's Defense Dilemma. The Comeback of Joe Montana. His rough road to the Super Bowl. Cover: Photo by Ormond Gigli.

TOP OF THE WEEK:
TOUCHING THE 'UNTOUCHABLE': Six months after his tainted election, Mexican President Carlos Salinas de Gortari moved to establish his command last week, ordering the arrest of the powerful oil workers' boss, JoaquIn Hernandez Galicia. It was an attempt to weaken the notoriously corrupt union's grip on Mexican politics and won Salinas new respect. International: Page 30.

TEXAS REDUX: Ever since Texas got hit by the oil bust, it has looked in vain for signs of recovery. Now a spate of good news on the economic front is boosting morale, and a pack of highly placed Texans in Washington-starting with George Bush-may help even more. The Lone Star State seems to have finally turned the corner. Business: Page 40.

BUSH's DEFENSE DILEMMA: Despite the deficit and all the other thorny issues on his agenda, no single issue pre- sents George Bush with a big- ger challenge than the future of United States defense policy. The stratospheric costs of pre- paredness are only part of the problem. In addition, the new president must cope with America's new role in the world and a technological revolution that promises to change U.S. military strategy. NEWSWEEK also profiles Defense Secre- tary-designate John Tower and explores the Stealth bomber debate. National Affairs: Page 12.

IN QUEST OF PURE SOUND: Compact discs already outsell LP's 3 to 1, but audiophiles are pushing CD makers to seek ever purer sound. Everything from speaker wire to amplifiers can be improved, and for some, the cost is no object. Rich audio: $5,000 CD player. Society: Page 48.

THE SURVIVOR: At the age of 32, quarterback Joe Montana has survived two failed marriages, back surgery and a benching to help make the San Francisco 49ers 7-point favorites over the Cincinnati Bengals in this week's Superbowl. Lifestyle: Page 54.

[FULL NEWSWEEK LISTINGS]:
NATIONAL AFFAIRS:
The $300 billion question (the cover).
The latest in "smart" weapons.
Tower the reformer?.
The Stealth bomber: a case of sticker shock.
Inaugurating a family dynasty?.
I've got George Bush.
Baker's overture to Congress.
The tragedy at Bellevue.
The blow-dried grand wizard.

INTERNATIONAL:
Mexico: union busting.
Bonn finally comes clean.
Nazi software: the ultimate virus.
South Africa strands the ANC.
A bluff on Afghanistan?.

BUSINESS:
Texas turns the corner.
Is America working smarter?.
Wanted: a Mr. Clean for Drexel Burnham.
AIDS, blood and money.
Shopping bags imitate art.
A sophisticated sampler for Joe Six-Pack.
Robert J. Samuelson.

SOCIETY:
Technology: High-end audio.
Two toys you must have.
Justice: Countdown on abortion.
Education: Shelters as schools.
Ideas: Forgetting civil rights.

LIFESTYLE:
Sports: Montana's passing fancy.
The Mind: Journey to the streets.
Health: Kicking a deadly habit.
Infertility suspect: caffeine.
Whose life is it, anyway?.

THE ARTS:
Books: Our stories, our selves.
Photography: Erwitt gets personal.
Movies: Batman's coming back.
Music: Gipsy Kings: all heart.

DEPARTMENTS:
Periscope.
The Mail.
Perspectives.
Newsmakers.
Transition.
Meg Greenfield.
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