January 17, 2002

Samsung Electronics says fourth-quarter profit fell 64 percent, to $307 million (S)

White House says Lawrence B Lindsey, who heads National Economic Council and served as paid consultant to Enron Corp before joining administration, directed review of broad economic effects of potential collapse of company but concluded it posted little risk to American economy; says review began two weeks before Enron chairman Kenneth L Lay called Treasury Sec Paul H O'Neill and Commerce Sec Donald L Evans suggesting that any Enron collapse might ripple through American and global economies; says government did exactly what the government should do after being questioned about Lindsey's role; photo (M)

Britain's unemployment rate remained close to 26-year low at 3.2 percent in December (S)

Semiconductor Equipment Association of Japan says orders for equipment used to make computer chips fell record 85.6 percent in November (S)

American military officials report that many Pashtun tribal leaders in eastern Afghanistan are balking at cooperating with American Special Operations Forces in hunt for Al Qaeda and Taliban fighters, weapons and caches and intelligence that could prevent future terrorist attacks; say this leaves American forces with few Afghan allies in one of most dangerous regions of country that may still harbor hostile fighters and contain underground command bunkers and hideouts for staging guerrilla attacks; say Pentagon is trying to offset lack of assistance on ground by focusing more attention on sky, using surveillance sensors and unpiloted Predator drones (M)

New Jersey Nets defeat Washington Wizards, 111-67, Continental Arena; photo of Michael Jordan and Kenyon Martin (M)

Officials at Hospital of St Raphael in New Haven say that two women died there over last week after they were accidentally given nitrous oxide instead of oxygen during cardiac catheterization (M)

Letter that Enron Corp executive Sherron S Watkins sent to chairman Kenneth L Lay provides a few new details about Enron's web of partnerships and raises possibility that company might have to reduce its past earnings by $1.3 billion more than it already has; discloses for first time existence of entity called Condor, which was financed with Enron stock and which made investments that generated $800 million in cash for Enron; letter also says another entity, Raptor, previously disclosed investment vehicle owned by another Enron partnership, generated $500 million in revenue; Enron does not appear to have written that off either, but may have to do so; chart (M)

Elektrim, Polish telephone and industrial company that defaulted on 479 million euros ($423 million) in bonds in December, escapes forced bankruptcy proceedings when court orders it to begin talks with creditors (S)

For the first time in six years, New York City's welfare rolls began to rise by several thousand people in the late fall, adding to growing concerns that the country's revamped welfare system may be caught short in the recession. Gov. George E. Pataki has joined other governors in seeking more federal aid for welfare. Article, Page B1.

Carnegie Hall's new director, Robert J Harth, discontinues 16-member jazz ensemble; trumpeter Jon Faddis and band co-founder George Wein will try to keep group going; photos of band in 1922 and last December (M)

Susan and Derek Johnson's renovation of three-story 1909 townhouse on Hamilton Terrace in Harlem described; photos (M)