L.A. - the whole truth.

One of the most oft-quoted phrases of our time is Mark Twain's immortal quip that the report of his death was greatly exaggerated.

The same can be said of the death of Los Angeles, which has been reported time and again when Southern California has been hit by a calamity, either natural or man-made. The most recent obituaries originated with the recession, grew more doleful with the riots of 1992 and snowballed into national mourning after the fires, the floods and the Northridge earthquake. The sorrowful tones of some reports left the impression that little of Los Angeles was left standing, and people were leaving in droves to go who knows where.

Along comes Price Waterhouse and tells us that, according to a new study, there is hope for ol' L.A. after all. It says, in fact, that we may be better positioned for economic recovery than many of our neighbors in the West.

One of the most encouraging aspects of the Price Waterhouse report, however, is what it's not: The report, which is the lead article in the California section of this issue, is not a whitewash job to cover up the problems of Los Angeles. It's not one of those shrill pieces of rhetoric attacking anyone who dares to speak ill of L.A. It's not an apology that makes excuses for the city's shortcomings or uses euphemisms to cover up the real problems. The report acknowledges the serious problems facing the city and the region -- from crime to the recession to the perception that business is unwelcome here. But it makes a convincing argument, based upon an exhaustive analysis, that Los Angeles has a solid long-term economic future.

In fact, the report suggests, one reason L.A. and other parts of Southern California have fallen so far in the recession is that they rose to such heights when the economy was in high gear. Los Angeles had more to lose in a recession because it had more construction, more manufacturing, more people earning high incomes and more highly educated workers than the more "average" cities elsewhere. Such a supercharged economic engine is bound to suffer more in a downturn, the Price Waterhouse report points out, but that same economic engine has more potential to grow when the economy turns around. In the long run, the study says, L.A. still has lots of potential.

The Price Waterhouse report was prepared by Dennis Macheski, director of research for the accounting and consulting firm's real estate industry services group. Macheski was a featured speaker recently at a panel discussion sponsored by the Los Angeles Central City Association called "L.A.'s Vibrant Economy." Panelists conceded that yes, L.A. does have the problems alluded to in all the premature obituaries, but that's life in the big city. Even in the best of times, a megalopolis like Southern California is a complex mix of successes and failures, dreams come true and dreams that have been broken, hope, despair, and a complicated mix of opportunity and frustration for businesses of all sizes. Macheski's report urges us to look at the whole picture, warts and all, and to base our decisions on a careful look at realty rather than reacting to the latest headlines.

The most recent reason for the dire views of the city's future was the Northridge earthquake, which experts say may be the region's worst natural disaster ever. The earthquake was a disaster in every sense of the word, and no amount of looking at the bright side will undo what it did. But, as Peter Wenner points out in another article in the California section of this issue, the manner in which Los Angeles is recovering from the quake says something about the resilience of the region's economy and the prospects for its future. Wenner is the general manager of Ritter Ranch, a 10,625-acre master-planned community in the Antelope Valley, which is the largest project under active development in Los Angeles County. He points out that much of the positive news in the Los Angeles basin economy can be linked to the infusion of approximately $14.4 billion in federal and state economic aid and insurance money disbursements, the effects of which are expected to become evident in the second half 1994 and extend into 1995 and perhaps even into 1996. "It is estimated that the basin will enjoy the creation of 34 service sector jobs for every million dollars in earthquake aid it receives," Wenner says. His article makes a convincing argument that, rather than demoralizing Los Angeles, the Northridge earthquake galvanized the region into action that will have long-term economic benefits.

Los Angeles isn't the world, of course, so these articles about L.A. current and future recovery are just part of what you'll find in this issue of Corporate Expansion & Relocation. There's news of Nevada's new-found allure for business, for example, along with reports on other parts of California, the nation and the world -- including the first steps American companies have taken in Vietnam since the government lifted restrictions on doing business there. Enjoy the issue and look for more news about economic development, corporate expansion and relocation in our next issue, due in August.

Bob Howard is the editor of Corporate Expansion & Relocation.