ISSUE DATE: JULY 9, 1979; Vol XCIV, No. 2

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IN THIS ISSUE:-
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COVER: OVER A BARREL. [OIL]. Cover: Illustration by Bill Nelson.

TOP OF THE WEEK:
A QUOTA WINS: The United States Supreme Court faced the volatile issue of "reverse discrimination" again last week. A year ago, in deciding the landmark Bakke case, it disapproved the idea of setting racial quotas to improve opportunities for blacks in education. This time, interpreting a different passage of law, the High Court found a quota acceptable in employment and promotion. Private companies can develop voluntary affirmative-action plans to help blacks, the Justices ruled-even if whites suffer. Page 77.

OVER A BARREL: In Geneva, OPEC voted a stiff new price increase for oil. In Tokyo, a grim summit of the world's major oil-consuming nations resolved to hold down imports-and steeled themselves for years of probable economic turmoil anyway. In the U.S., the Gas Panic of `79 boiled on, so furiously in places that shippers tanked up under armed guard (right). NEWSWEEK'S cover report includes an exclusive interview with OPEC's Sheik Yamani and assessments of the week's crisis diplomacy, the ongoing energy fever in the U.S. and the growing political threat that it poses for Jimmy Carter. Page 18.

BEYOND POP: Two decades ago, the ingenious plaster figures placed by artist GEORGE SEGAL in settings scavenged from real life (left) were the ultimate in pop art. Now, with a huge retrospective of his work at the Whitney Museum in New York City, Segal's sculptures seem firmly rooted in a formal tradition of homely humanism. Page 66.

NEWSWEEK NAMES A NEW EDITOR: NEWSWEEK will have a new editor in mid- August when Lester Bernstein rejoins the magazine. Bernstein (photo below) spent tenyearsatNEwswEEKfrom 1963to 1973, first as editor of the NATIONAL AFFAIRS section, then as executive editor and managing editor. "He was one of a team of top editors who broke old molds and set new ,standards for the newsweekly form," said Katharine Gra- ham, board chairman of The Washington Post Company, in announcing his appointment as editor last week. For the last six years, Bernstein has been vice president, corporate communications, of RCA Corporation. Earlier, he was a reporter at The New York Times and then, for ten years, worked at Time magazine as a writer in the press, cinema and television sections and as a foreign correspondent in London and Rome. In 1958, he joined NBC, where he helped make possible the Kennedy-Nixon television debates Carl Mydans during the 1960 Presidential campaign. Bernstein replaces Edward Kosner, who has left the magazine after sixteen years. "We are grateful for his brilliant contributions," said Mrs. Graham. "During his tenure as editor, the magazine won an unprecedented number of journalism awards and pioneered a number of innovations, including a greatly expanded use of color photographs and excerpts of newsmaking books.".

NEWSWEEK LISTINGS:
NATIONAL AFFAIRS:
The energy crisis (the cover).
A talk with the Saudi oil minister.
Americans over a barrel.
The politics of gasoline.
Senator Baker's SALT challenge.
A Russian mole in the FBI?.
A plague of grasshoppers.
Arizona's tritium-pollution flap.
INTERNATIONAL:
Nicaragua: Somoza defiant.
Who's behind the rebels?.
Mideast: a Syrian-Israeli dogfight.
Israel's Cabinet troubles.
Libya's Soviet-arms arsenal.
A near miss for NATO's chief.
China: the boom in English.
Ghana's new ruler draws blood.

NEWS MEDIA: Widening libel protection.
BUSINESS:
How deep a recession?.
A small town feels the pinch.
Behind the executive exodus.
at Twentieth Century-Fox.
Boeing's great engineer grab.
DANCE: Competing in Jackson, Miss..
MEDICINE:
A drug to ease menstrual cramps.
New clues to disease prevention.
RELIGION: Church-related colleges fight for life.

ART: A George Segal retrospective.
MOVIES:
"Bloodline": torpid turkey.
"Meatballs": pass the sauce.
"Goldengirl": fumbled ideas.
"Down and Dirty": fresh wit on old points.
"Lost and Found": funny as a crutch.
BOOKS:
Two macho-mystique novels.
"The Dog of the South," by Charles Portis.
Dan Morgan's "Merchants of Grain".
EDUCATION:
Flourishing free universities.
Fundap entalists and the Creation.
JUSTICE: A victory for affirmative action.
LIFE/STYLE: Gilley's, home of the nightclub cowboys.
TELEVISION: Prime-timer Tom Snyder.
THE COLUMNISTS:
My Turn: Mohammed Milhem.
Milton Friedman.
Pete Axthelm.
George F. Will.

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