European Stars and Stripes (Newspaper) - September 26, 1991, Darmstadt, Hesse                                Construction workers direct a Crane amid the rubble of the Chiado District devastated by fire by Emma Gilbert the associated press the elegant heart of Lisbon Portugal has begun beating again three years after fire razed its shops and cafes. Jackhammers chatter trucks hauling Concrete rumble through narrow streets and workmen scramble Over Scalt Olding that is everywhere in the the Ferreiro do Pavo or Palace Terrace with the statue of King Jose i leads to the Busy streets of the Chiado. Historic Chiado District. The Din is music to Chiado shopkeepers who have suffered hard times since the fire swept 10 blocks on aug. 25, 1988. Frieda Torres who moved her Crystal and porcelain business to a nearby Street said Only those sustained by Quot ferocious optimism and total dedication Quot remained in business. Bureaucratic wrangling and disputes Over How the new Chiado should look delayed the Start of reconstruction until May. Plans approved by the City Council Are intended to restore the Graceful Century old facades and the Chiado atmosphere which once made it a haunt of artists and writers. The fire began in the cellar of the Armaz erts do Candela department store in the Early hours and lasted throughout the Day. It killed two people and destroyed or severely damaged 22 buildings put 6,000 people out of work and displaced the few families who lived in the District. Chiado a restoration is expected to Cost at least $75 million. The City Council has offered Low interest Loans and other incentives to property owners who Are paying for the work. Henrique Batalha Sequeira s 350-year-old jewelry shop Casa Batalha was one of the few with adequate insurance but Batalha Sequeira said there was an Quot irreparable loss Quot of historic documents decor and merchandise. He has continued in business nearby but said last year s sales of $204,000 were Down about 20 percent from 1987. Like most of Lisbon s Central business District Chiado was nearly deserted after the shops closed. City Council officials say that was one reason the fire escaped notice until it was out of control. More living space will be built into the new Chiado but Alvaro size Vieira the architect in charge has promised there will be no apartment towers. Quot nowadays we have to consider history As a whole Quot he said. Quot just because a City has baroque buildings that does not make it out of Date. In the Chiado there is no reason to aim for a modern  size Vieira who has won International awards for work in old quarters of Amsterdam and Berlin plans to include two floors of residential space at the top of restored six Story buildings. The apartments will have panoramic views of Lisbon s Hills and the Tagus River Estuary. Most of the original facades with their wrought Iron balconies will be restored. Small gardens and malls Are to be built into previously unused courtyards. Access to Chiado will be improved with a new subway line that connects to railroads serving suburbs and the Estoril and Sintra resorts West of Lisbon. Controversy has Arisen Over the decision to build a luxury hotel on the site of a destroyed department store a which in turn was built Over the ruins of Convent that survived an earthquake 1755. The Banco International do Funchal owner of the property prefers office and shop space which will produce More income than a hotel. The City Council has threatened to expropriate the property unless the Bank agrees to the hotel project. 1 another complication is the discovery of the Convent ruins under the store s foundations. Archaeologist Jose Luis de Matos says the ruins Are part of Lisbon s history and should be made into a museum. Until those two disputes Are resolved work will he kept on hold. In 24 stripes Magazine september 26, 1991 a