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PUBLISHER'S LETTER 4

LETTERS 6

THE WEEK 13

MILESTONES 21

32

COVER: Act of Faith

Israelis and Palestinians stun the world with their biggest step yet toward peace. Meeting in secret, negotiators devise a plan for the Palestinians to share the land both call home.

36

Can It Work? The deal stirs fury as well as hope

50

The Oslo Channel: How the seeds of peace bore fruit

24

REFORM: Gore Against the System

He takes aim -- yes, again -- at bureaucratic bloat and red tape

27

Horror Show: Some of the silliest inefficiencies

29

THE ADMINISTRATION: A Most Busy Fella

The Vice President has a hand in nearly every decision

52

BOSNIA: Requiem for Mostar

The death of a city marks the end of peaceful coexistence

56

POLLS: Happiness Is . . .

. . . hard to find anywhere in the world, say the new surveys

58

PROFILE: Fighting for God and the Right Wing

Ralph Reed works to give the religious right a gentler face

61

TECHNOLOGY: Virtual Jungle

A game called MUD is the latest rage on computer networks

63

ENVIRONMENT: Superfund's False Promises

Uncle Sam's big toxic cleanup is a failure -- and a legal nightmare

66

MARKETING: Telepests

Telemarketing is hot, effective and downright irritating

68

SHOW BUSINESS: The Asians Have Landed

Movies, music and fashion from the Pacific Rim to the U.S.

72

ART: Rebecca Horn's Eccentric Machines

Sculpture that evokes both the comic and the sinister

73

MUSIC: Marley's Ghost Walks Again

Ziggy, son of Bob, takes reggae into the '90s

75

THEATER: Finding the Windsors' Ancestral Lear

The London hit The Madness of George III launches a U.S. tour

76

REVIEWS

TELEVISION HBO recounts the history of the AIDS epidemic, gingerly. BOOKS Smilla's Sense of Snow is a riveting thriller set in Denmark and Greenland. Scott Smith's first novel, A Simple Plan, needs work. Willie Morris goes golly-gee in his memoir, New York Days. CINEMA True Romance is true carnage. MUSIC A cheap shot at the underclass mars an appealing new album by Garth Brooks.

83

SPECTATOR: How the Networks Blinked

They are starting cable channels for the wrong reasons

PEOPLE 85

ESSAY 86

Cover: Photomontage: Rabin by Hammi -- SIPA Press; Arafat for TIME by David Rubinger; map from Argosy Gallery