September 29, 2001

Prospects for Hawaii's tourism-dependent economy plunge precipitously in days after terrorist attacks of Sept 11; with tourists reluctant to fly and spend, Hawaii has become forlorn and eerily quiet place; famed beaches are mostly deserted, and most hotels are less than half full; restaurants open late and close early, if they open at all; mood has become so grave that state's normally cautious governor, Benjamin J Cayetano, warns that Hawaii faces 'its worst economic crisis ever' and calls emergency session of state Legislature to borrow $1 billion to stimulate economy; photos (L)

Clyde Haberman NYC column contends that Mayor Rudolph Giuliani's proposal to extend his term by three months because of terrorist attack is not only unjustified but also raises some sticky questions about what other office might be affected, city budget and term of next mayor (M)

UN Security Council unanimously adopts US-sponsored resolution obliging all 189 member countries to crack down on financing, training and movement of terrorists, and to cooperate in any campaign against them, including use of force; Amb John D Negroponte says US is very encouraged by rapid, unanimous action on agreement that reflects broad support for crackdown (M)

European anxiety that NATO had handed United States a blank check to retaliate against terrorism worldwide lessens for now, with Washington winning praise to its deliberate response to attacks on New York and Pentagon; officials from Germany, France and Britain--European heart of alliance--all say they are pleased with Bush administration's effort at coalition-building and level of consultation, in particular by State Sec Colin L Powell; photo of British Foreign Sec Jack Straw (M)

American and Northwest To Pay Severance Benefits American Airlines and Northwest Airlines, facing the anger of their employees, have dropped plans to deny severance benefits to thousands of workers that they plan to lay off in their post-Sept. 11 slump. The airlines had invoked an emergency clause in their union contracts in refusing to pay severance benefits. After the unions protested and threatened to ask Congress to deny bailout funds to any airline that failed to pay severance, they changed course. [Page C3.]