December 7, 2001

Middletown, NJ, teachers strike is seen as one of most bitter and disruptive local labor battles in recent years; mass jailing of teachers is first in country since 1978 and acrimony toward pickets runs high; barbs and death threats fly as parents become increasingly infuriated with situation; photo (M)

On Yachting column on New Zealand sailing star Sir Peter Blake, murdered by pirates who boarded his yacht near mouth of Amazon River in Brazil; Blake's storied achievements include victories in America's Cup and Whitbread Round-the-World Race; photo (M)

Afghan Taliban forces surrounded in Kandahar agree to surrender their last stronghold, but negotiators have yet to resolve crucial issues of fate of leader Muhammad Omar and thousands of Arab fighters loyal to Osama bin Laden; yet uncaptured is bin Laden, who Gen Muhammad Fahim says has retreated to caves of Tora Bora region close to Pakistan frontier; surrender terms call for Omar to cede power to local tribal leader and have soldiers lay down weapons; new Afghan leader Hamid Karzai says Omar and top aides must face trial for crimes, noting that Omar has not even made statement of regret; former Taliban envoy Abdul Salam Zaeef comments in Islamabad; photo; map; intense negotiations and role of various factions detailed (M)

AOL Time Warner's new management team faces whole range of urgent operating challenges on way to realizing its dreams of media convergence; company has hurt self by promising investors very aggressive, and ultimately unrealistic, short-term growth targets; graphs; photo (M)

Retailers post Nov sales growth that was below already low expections; sales at stores opened at least year grew 2 percent, tepid number inflated by calendar quirk that moved week of selling season to Nov from Dec; Gap Inc posts 25 percent year-to-year sales decline; Wal-Mart Stores posts 4.3 percent gain; graph; table; photo (M)