WASHINGTON INSIGHT

FOLLOW THE MONEY: Clinton Administration lawyers are quietly at work on a Supreme Court brief that could save California a cool $4 billion. The high court has agreed to hear a challenge to the state’s so-called unitary tax on multinational corporations. California taxes these companies based on the percentage of their worldwide operations that are conducted in the state. But British-owned Barclays Bank says it should instead be taxed in California according to its profit in the state--a computation that would produce a smaller tax payment. . . . In the lower courts, the George Bush Administration sided with Barclays. After initially trying to avoid taking a stand, the Clinton White House has now decided to throw its weight behind the state. The change could prove crucial, since the views of the sitting Administration carry special weight in international tax cases. . . . If California lost, it could be forced to refund $4 billion to an array of international corporations. The brief goes to the court in mid-January. One warning: The fact the court has decided to hear the Barclays challenge suggests that at least four justices may want to overturn the lower courts and back the bank.

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A COUPLE OF CUTUPS: For more than 20 years, one of the least coveted duties of the secretary of state was the occasional obligatory meeting with Syrian President Hafez Assad. Arguably the smartest--and probably the most ruthless--leader in the Middle East, Assad is known for holding five- and six-hour meetings without a break, a form of psychological and physical gamesmanship. So it came as a great surprise when associates heard dour-faced Secretary of State Warren Christopher say he found Assad a guy with a great sense of humor. . . . Christopher, whose own comedic sense is so dry a lot of people miss it, actually enjoys the encounters. Good thing. Assad--who less amused observers call “The Butcher of Hamma”--likes to begin the meetings with a lengthy description of his version of the history of the area, starting with the Crusades.

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GOOD YEAR, BAD YEAR: President Clinton’s Renaissance Weekend with deep-thinking friends at Hilton Head Island, S.C., consisted mostly of seeking enlightenment on the golf links, including one last round of golf on Sunday before heading back to Washington. But he also took the opportunity to stroke a press corps that has given him mixed notices. He went so far as to thank reporters on New Year’s Eve for a “good year.” . . . Once out of their earshot, however, Clinton chafed in an off-the-record chat about the treatment his team has gotten from critics. Sources say he picked up the phrase “culture of critique” from semanticist Deborah Tannen, another Renaissance Weekend attendee, and went on to describe his unhappiness with pundits who denounce events they don’t fully understand. . . . In the private session, Clinton also made the case for his health care plan. It won an enthusiastic reception from the audience.

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ROYAL TREAT: Princess Diana’s shopping spree in Washington last week sent the distinguished British press corps of Washington into rough waters. The Washington Brits, who normally disdain the tabloid foolishness of the Royal Family’s marital escapades, dashed after the princess through shopping malls and hunted for interviews with store clerks who served her. One high-brow writer from the Manchester Guardian got wind that the princess might be dining at Sesto Senso, a hot new Italian bistro in the district, so he booked a table for eavesdropping. The princess canceled. The reporter did not.