ISSUE DATE: FEBRUARY 25, 1980; Vol. XCV

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IN THIS ISSUE:-
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COVER: A Break in the Deadlock. [IRANIAN HOSTAGES, JIMMY CARTER, KURT WALDHEIM.] Cover: Photos by Reza-Sipa, Michael Evans and Wally McNamee- NEWSWEEK.

TOP OF THE WEEK [Major Top Stories]:
A BREAK IN THE DEADLOCK: As the U.S. Embassy hostages spent their 100th day of captivity in Iran, leaders of the two countries finally talked compromise-and a break in the deadlock seemed at hand. But the deal could still come unstuck, and there was no guarantee that the embassy militants (above) would hand over their prisoners. In an interview with NEWSWEEK, Iran's President Abolhassan Bani Sadr cautioned: "We will have to wait." Page 22.

THE NEW FBI: Under director William Webster, the FBI has undergone a dramatic change. Gone are the gangbuster exploits and questionable domestic surveillance of the Hoover years. In their place is a new emphasis on organized crime, official corruption and foreign espionage, exemplified by recent "sting" operations against politicians and pornographers, which have raised ethicalquestions of their own. Page 39.

RAIL REVIVAL: After decades of decline, America's sprawling railroads may be on the brink of a renaissance. U.S. energy policy has given a big boost to the coal-hauling business, and Federal regulators are finally trying to apply some economic logic to the rail system's chaotic management. Page 63.

RATHER'S COUP: TV's longest-running guessing game ended last week when CBS tapped Dan Rather to inherit Walter Cronkite's throne. But the bigger story was played out off-camera. In an unprecedented bidding war, all three networks courted Rather with multimillion-dollar packages. Triggering it all was the ratings surge of upstart ABC News. Page 71.

THE OLYMPICS: As expected, speed skater Eric Heiden (below) brought home two gold medals; and, as no one expected, the young U.S. hockey team savaged the mighty Czechs. But others-like Heiden's sister, Beth, who broke an Olympic record yet won no medal-found the going too steep. Page 92.

[FULL NEWSWEEK LISTINGS]:
NATIONAL AFFAIRS:
Iran: a break in the deadlock (the cover).
An exclusive interview with President Bani Sadr.
Planning the homecoming.
Democrats: an increasingly bitter vendetta.
The outlook in New Hampshire.
How the Republican race shapes up.
At last, the trail of D. B. Cooper.
Cracking down on pornography.
Atlantic City's longer odds.
The new FBI.
Operation Lobster.
Snaring cigarette smugglers.

INTERNATIONAL:
Will Yugoslavia hold together without Tito? Afghanistan: the Russians under fire El Salvador: the specter of civil war.
The last Nazi trial.
Rhodesia: Mugabe and Soames head for a showdown.
A talk with the guerrilla leader.

SPORTS:
The Winter Olympics: snarls, surprises, heroics-and gold.
Hockey: those spunky Yanks.
The lonely U.S. losers.

THE COLUMNISTS:
My Turn: Suzanne Britt Jordan.
Paul A. Samuelson.
Meg Greenfield.

NEWS MEDIA: Dan Rather hauls in the CBS evening-news anchor.
TELEVISION: Talking back to the tube.
SCIENCE: The science of love.
BUSINESS:
Unshackling Ma Bell?.
Overpricing: Standard of Indiana settles for $716 million.
A new drive to revitalize American railroads.
A dead stop in the Ford Pinto trial?.
The ghost that stalked GM.

THEATER:
Reviving "West Side Story".
"Filumena": late-bloomer.
MOVIES: "Caligula": $17 million of porn.
BOOKS:
"A Woman's Age," by Rachel Billington, and a talk with the author.
"Moscow Diary," by Veljko Micunovic.
MUSIC: Composers in search of an audience.
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