August 11, 2001

Manhattan Federal Judge Lawrence M McKenna rules that Giuliani adminstration's reqirement that art vendors in parks have permits violates city code, which unconditionally prohibits mandatory licensing for those who sell art and books; city says it will appeal decision; photo (M)

As Israel draped itself in mourning for its latest terrorism victims, senior Israeli officials vowed today to keep control of important Palestinian offices that the army and the police had seized overnight. Hours after a Palestinian suicide bomber killed 15 people and himself on Thursday in a crowded pizzeria in downtown Jerusalem, Israel responded with a direct blow to the heart of Palestinian nationalism.

Major Airlines Relax Rule For Saturday Stay-Over For more than 20 years, the Saturday night stay-over has been the bane of corporate travel, with airlines forcing business people to choose between being home for the weekend and getting a cheap fare. The airlines' bet -- that business travelers would pay more for less-restrictive tickets -- paid off handsomely. Now, though, the biggest airlines, mired in deep financial debt and hoping to lure back business travelers, are dumping the stay-over requirement on some of their most competitive routes. [Page A1.]

Producer prices at finished level fall 0.9 percent in July; some of price restraint comes from decline this year in overall commodity prices, which are down 12 percent, putting CRB/Bridge index at 15-year low; yields on two-year Treasury note is 3.68 percent, lowest point since fall of 1992; developmentsincrease likelihood of further cut in interest rates by Federal Reserve; graphs (M)

Dmitri Sklyarov, youthful Russian cryptographer charged with trafficking in program that decrypts Adobe Systems' software for electronic books, prefers literature printed on paper; photo (M)