Table of Contents

70 Nation The President heads into a daunting new year. Miami cops face murder charges.

74 World Terrorists gun down travelers in Rome and Vienna. A surge of violence in South Africa.

78 Economy & Business 1985 was a time of tumult. On Wall Street the only direction seemed to be up.

84 Sport Some occasions of joy, some of wistfulness, and one that is both: Howard Cosell leaves ABC.

86 Theater Benefactors is a disillusioned comedy. The best productions of 1985.

89 Books The Good Apprentice is a tour de force of narrative energy. The year's best.

100 Video Mary is too much of a good--and familiar--thing. The top shows of 1985.

102 Design Zoos, bungalows and high-rises all found expressive form in the best of 1985.

12 Letters 83 People 96 Show Business 99 Music 101 Milestones 105 Cinema 106 Food

COVER: Collage by Robert Rauschenberg. Photograph of Deng by David Hume Kennerly

MAN OF THE YEAR

24 China's Deng Xiaoping leads 1 billion people on a far-reaching, bold but risky second revolution Defying the precepts most cherished by traditional Marxists, he is attempting to blend on a monumental scale elements that seem irreconcilable: state ownership and private property, central planning and competitive markets, political dictatorship and limited economic and cultural freedom. The reforms are a big gamble, and they face considerable domestic opposition. But if they work, the world will not be the same.

42 The comeback comrade In a 60-year march through war and revolution, achievements and humiliations, triumphs and tragedies, the self-effacing leader has always shown a preference for pragmatism over ideology. Today, at 81 , he stands at the zenith of his power.

46 A country changes course The winds of reform have swept over China with unequal force. Sichuan is a showcase for the new agriculture, Shenzhen is a magnet for foreign investment and a high-tech boomtown, but Shanghai remains peculiarly impervious to Deng's goals.

62 Other Marxist heresies In Eastern Europe, too, governments have been trying to make Communism work better. Hungary's relative prosperity has made it the envy of its neighbors, while Yugoslavia is testimony that not all the failures Marxism can be blamed on Moscow.

59 The next generation of leaders Ambitious, better educated than their elders and eager to use their skills, the young men and women now moving up will help determine whether Deng's reforms succeed or fail.

61 Peking's savvy, Western-style investment bank Led by a former capitalist, a state-owned firm gets around the ponderous bureaucracy to woo foreign investors with a combination of sizzle and shrewd business skills.

64 Children: the heirs of Deng's legacy Playing, laughing, sleeping--hardly the stuff of revolution. But the young stand to benefit most from the changes under way. A photo essay captures the faces of the future.

66 Four other newsmakers in the spotlight The Soviet Union's answer to the Great Communicator; an "implacable enemy of this world"; a symbol for South Africa's blacks; a rock musician who believes in Aid.