December 1, 2001

Report Offers Conflicting Signals on the Recession The economy shrank much more this summer than the government initially estimated, the Commerce Department said. The revised report offered conflicting signals about how long the current recession would last. In the third quarter, the economy contracted at an annual inflation-adjusted rate of 1.1 percent, its worst showing since 1991, during the nation's last recession. The government had originally reported a 0.4 percent decline, but new data led to the steeper drop reported in the scheduled revision. [Page C4.]

New York's elected officials in Washington and Albany meet with Dennis Rivera and others from 1199/SEIU, New York's Health and Human Service Union, to discuss urgent need for financial aid to city's hospitals; union says it is seeking more than $1 billion to help hardest-hit facilities and that Sept 11 attack cost more than $350 million in readiness, security and supplies; Rep Charles Rangel is pessimistic about chances of getting federal aid, but Sen Charles Schumer is more hopeful (M)

Northern Alliance discovers small compound in Kunduz used as headquarters by Islamic Movement of Uzbekistan, Central Asia's largest terrorist group, and its leader Juma Namangani, who is thought to have been killed nearby; Namangani's home within compound served as academy for preparing soldiers and terrorists to export international Islamic jihad and emphasized incursions into Uzbekistan, Tajikistan and Kyrgyzstan; academy was abandoned as Northern Alliance forces swept through Kunduz but documents and other materials salvaged confirm Namangani's ambition of fomenting religious war; photo of document showing how to make suitcase bomb (M)

LUXURY IN HARD TIMES The fashion designer Tom Ford is trying to ensure a place for Gucci in a daunting new environment. A report by Lynn Hirschberg in The Times Magazine.

Northern Alliance leader Burhanuddin Rabbani questions talks in Bonn, saying new temporary government can wait until elections are held; refuses to permit delegation to submit names of candidates for interim administration; says former monarch Mohammad Zahir Shah should have no special role and that international security force should be limited to about 200 members; delegates and diplomats in Bonn interpret Rabbani's statement as stalling for time so Northern Alliance can consolidate power; United Nations envoy Lakdar Brahimi contends delay is unacceptable; United States asks Russia and Iran, which have closer ties to Rabbani, to press him to abide by his commitment to honor results of Bonn meeting and not block work of his delegation; photo (M)