ISSUE DATE: September 19, 1977; Vol XC, No 12

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IN THIS ISSUE:-
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TOP OF THE WEEK:
COVER: THE BERT LANCE AFFAIR: WHAT DAMAGE TO CARTER?: Bert Lance was set to tell Congress his side of the story this week, but his resignation seemed inevitable. The real question was how much damage the scandal had done to Jimmy Carter -- and what the President's men were doing about it. This week's report includes a special Gallup poll, a column by George F. Will (page 122), a piece on Lance's Office of Management and Budget -- and who its next boss might be -- and a proffle of jailed banker Billy Lee Campbell, who has made new charges involving Lance. (Newsweek cover sculpture by Robert V. Engle; photograph by Matt Sultan.)

HENRI MATISSE IN GLORY: He called it a second life, born of painful necessity after a near-fatal ill- ness: unable to paint comfortably at an easel, 71-year-old Henri Matisse took up scissors and colored paper and pioneered an exciting art form. A large selection of his joyous and daringly composed cutouts is now on display at the National Gallery of Art in Washington. A vibrant fusion of painting, sculpture and drawing, the works represent Matisse at his glorious best and a permanent peak of modern art.

THE MOUTH AT SEA: Skipper TED TURNER and the yacht Courageous defend the America's Cup against Australia this week, and Turner is sure to enliven the Newport, scene with monologues about his favorite topic: himself. Joking, bragging, needling the Establishment, the Atlanta millionaire also has raised the decibel level of baseball and basketball by buying major-league teams. Pete Axthelm listened to Turner on both land and sea to write the story.

A CANAL EXTRAVAGANZA: Jimmy Carter staged an extravaganza for the new Panama Canal treaty last week. Ronald Reagan tells Gerald Lubenow why he opposes the pact.

BORDER WAR: Recently, Cambodia has waged a series of border battles with Thailand and Vietnam. Holger Jensen reports on Southeast Asia's newest conflict.

NEWSWEEK LISTING:
NATIONAL AFFAIRS:
The Lance affair: how much damage to Carter? (the cover).
A bank embezzler's story.
Minding the store at the 0MB.
New York City dumps Mayor Beame.
Case of the phony "Richard Avedon".
Freedom on parole for G. Gordon Liddy.
The Korean lobby: Park stays put.
INTERNATIONAL:
A party -- and a fight -- over the Panama Canal.
Reagan tells why he's against the treaty.
Germany: the terror again.
Albert Speer on Hitler and the Jews.
di Amin plays possum.
The Horn of Africa: a victory for Ethiopia.
Cambodia's border war.
Ariel Sharon, Israel's settlements boss.
RELIGION: The preacher vs. the atheist.
SPORTS: America's Cup defender Ted Turner.
SCIENCE: The lethal spread of the deserts.
BUSINESS:
Now, an oil glut -- for a while.
The energy plan: a tax bill in disguise?.
Introducing strip-mine wine.
Raising the minimum-wage floor.
New York City as world banking center.
Britain: a fragile victory for wage restraint.
EDUCATION: The Bakke brief on affirmative action. Segregation by sex.
MEDICINE: Three new battles in the war on germs.
TELEVISION: NBC's new-look news. David Eisenhower on "Washington".
IDEAS: The ethics of medicine and miracles.
NEWS MEDIA: Jody Powell faces life.
THE COLUMNISTS:
My Turn: Bernard Sloan.
Paul A. Samuelson.
George F. Will.

THE ARTS:
ART: Henri Matisse's marvelous cutouts.
BOOKS:
Three volumes of memoirs.
"Daniel Martin," by John Fowles.
Hilma Wolitzer's "In the Flesh".
Richard Kluger's "Members of the Tribe".
"Attachments," by Judith Rossner.
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