  A search for charginos nearly mass-degenerate with the lightest
supersymmetric particle is performed using the 176 pb^-1 of data collected at
189 GeV in 1998 with the L3 detector. Mass differences between the chargino and
the lightest supersymmetric particle below 4 GeV are considered. The presence
of a high transverse momentum photon is required to single out the signal from
the photon-photon interaction background. No evidence for charginos is found
and upper limits on the cross section for chargino pair production are set. For
the first time, in the case of heavy scalar leptons, chargino mass limits are
obtained for any \tilde{\chi}^{+-}_1 - \tilde{\chi}^0_1 mass difference.
