January 13, 2001

Justice Department and 19 state attorney generals file brief asking Appeals Court to uphold Judge Thomas Penfield Jackson's antitrust ruling against Microsoft Corp, including order to split company in two; Clinton administration Justice Department officials fear department, under Atty Gen-designate John Ashcroft, may back away from case and seek settlement more favorable to Microsoft; career civil service officers in solicitor general's office are set to argue case before court after George W Bush becomes president; state attorney generals have hired John Roberts to argue their case (M)

Israeli and Palestinian negotiators dwell on side issues rather than future of Jerusalem and Palestinian refugees even though Pres Clinton's blueprint for a final status peace agreement is set to expire when Clinton leaves office on Jan 20; Clinton administration officials try to inject sense of urgency, particularly in Palestinians, who are perceived as the reluctant ones, reminding them that incoming Bush administration will have a lot to tackle and that close, sometimes nearly daily mediation efforts of Clinton years are not likely to continue; Americans at least hope to stabilize violent conflict, and they see some positive signs on the ground; photos (M)

Physicists and medical experts raise doubts about allegations that some allied troops could have contracted leukemia from exposure to depleted uranium used in NATO ammunition in Balkans and that civilians were put at risk by military testing; among skeptics are Dr Frank von Hippel of Princeton, Dr Michael Thun of American Cancer Society, Dr Charles Phelps of University of Rochester, Dr John Boice of International Epidemiology Institute and Dr Bruce Boecker of Lovelace Repiratory Research Instiutute; photo (M)

Chairman Stephen M Case and other executives of newly merged AOL Time Warner say they stick to aggressive financial goals promised to investors; Case says planned layoffs will come from eliminating overlapping areas in two companies, not because of bleak business prospects; predicts company will end year with more than 85,000 workers it currently employs (M)

Next Round on Microsoft In its final plea in the case, the Clinton administration has asked an appeals court to uphold the ruling of the trial judge, Thomas Penfield Jackson, to divide Microsoft into two companies. PAGE C1 School Case Has Precedent When a judge ordered the New York Legislature this week to devise a more equitable school financing system, he sent New York down a path followed by more than two dozen other states. PAGE B1