February 1, 2000

Showing that he intends to be more than a caretaker, New York City's interim schools chancellor, Harold O. Levy, has warned the system's 32 district superintendents that he will evaluate them in June using a long list of criteria. Until now, superintendents have received annual evaluations from their community school boards, but not from the chancellor. Some educators speculated that the new performance guidelines are a sign that Mr. Levy wants the chancellor's job on a permanent basis.

Classified report by CIA inspector general says top officials of agency impeded internal investigation into evidence that former director John M Deutch mishandled large volumes of secret data; describes series of actions by agency's former executive director and general counsel that delayed prompt and thorough investigation of matter; says current director George J Tenet, Deutch's top deputy, should have done more to forcefully ensure that case was properly investigated; agency, at inspector general's recommendation, sets up special panel to examine whether Tenet and other top officials handled case appropriately; investigation of Deutch began in December 1996 shortly before he left office following discovery that he had placed large volumes of classified material on personal computers in his home, including information about some of most sensitive covert operations, in potential violation of agency rules and federal law (M)

Mannesmann AG reverses its opposition to talks with Vodafone AirTouch PLC and begins to consider face-saving friendly merger; executives say there is growing feeling within Mannesmann that company cannot defeat $156 billion hostile takeover bid from Vodafone, especially after Vivendi SA, ally of Mannesmann, joined alliance with Vodafone on Jan 30 (M)

Placido Domingo makes his New York recital debut at Carnegie Hall, with pianist Daniel Barenboim; photo; Anthony Tommasini review (M)

Merrill Lynch & Co is preparing to make its biggest push to compete with banks for customers' deposits; Merrill is taking advantage of recent changes in national banking laws to roll out new banking services, including federally insured, interest-bearing account tied to its customers' investment accounts; Merrill executives also are developing first new version of firm's Cash Management Account, which broke new ground 25 years ago by combining interest-bearing checking with standard brokerage account that held stocks and bonds; new version will allow customers who are queasy about mixing investments and savings to choose how to segregate various assets within account; vice chairman John L Steffens comments (M)