February 28, 2002

Mayor Michael Bloomberg announces plan to build temporary road leading to Brooklyn-Battery Tunnel, which would restore major New York traffic artery disrupted by attack on World Trade Center; trade group announces development of free card to be used for discounts from merchants in Lower Manhattan to enhance business; map; photo (M)

France's Credit Lyonnais reaches agreement in principle with Justice Department to avoid criminal charges in connection with bank's acquisition in 1990's of junk bond portfolio belong to failed American insurance company, Executive Life of California; Credit Lyonnais is expected to pay as yet undetermined fine; Jeffrey B Isaacs, assistant US attorney in Los Angeles, had proposed indicting Credit Lyonnais, which was owned at time by French state, for conspiring with group of investors to skirt federal laws prohibiting banks from owning insurance companies; Credit Lyonnais still faces civil suit for damages (S)

Britain's HBOS will issue stock to increase reserves so it can sell new mortgages and insurance policies, afer profit last year fell 5.6 percent; will sell stock worth about 1.37 billion pounds ($1.9 billion); net income for all of 2001 fell to 1.68 billion pounds compared with 1.78 billion pounds year earlier (S)

Shareholders of San Miguel Corp approve sale of 15 percent of company to Kirin Brewery Co for $543 million; San Miguel president Eduardo M Cojuangco Jr praises merger (S)

US Defense Department relaxed security requirements for Global Crossing for planned military communications network in way that allowed company to remain in bidding for lucrative contract even as company ran into financial trouble last year; although department and Global Crossing say there was nothing inappropriate about way bid was handled, company's success in navigating Pentagon's procurement system illustrates how it became formidable player in Washington; Pentagon picked Global Crossing last July as winner of three-year contract to developo network to link 6,000 scientists working on military projects; contract was valued at $137 million initially and up to $450 million with options; losing bidders, including AT&T Corp, Sprint, MCI-Worldcom and Qwest, protested, saying Global Crossing, which is incorporated in Bermuda and is newcomer to military industry, did not have secure American operations or workers who had received requisite background checks to manage sensitive information, as contract specified; in 2000 elections, Global Crossing and its exeutives contributed $2.8 million to candidates and political parties; it recruited political, government and military officials to burnish its reputation, including William S Cohen, former defense secretary, who is now on Global Crossing's board (M)

Bush administration's top priority in post-Sept 11 world, preventing future terrorist attacks, has changed priorities of many cabinet agencies, particularly Justice Dept; vivid example is Atty Gen John Ashcroft's recent testimony before Congress, arguing for substantial spending increases for counterterrorism programs; prior to Sept 11, Ashcroft had identified more than dozen other objectives for greater emphasis within Justice Dept, and had suggested cutting out millions of dollars FBI requested to hire new counterterrorism field agents and millions more in counterterrorism grants to states and localities; under Janet Reno, Ashcroft's predecessor, department's counterterrorism budget increased in 1999, 2000 and 2001; photo (M)

Tale of Two Economies Alan Greenspan, the Federal Reserve head, said the United States recession appeared to be ending. At the same time, Germany's economy continues to struggle. PAGE C1 Probing the Electrical Grid Computers that control the nation's electrical power system have been probed from the Middle East, experts on security said. PAGE A13

House Proud column on interior decor of Greenwich Village home of Patricia Fox, artist who makes decorative objects; photos (M)

Indian government is scheduled to deregulate oil and gas sector in April as part of privatization program and, in July, to sell its stake in Hindustan Petroleum Corp and Bharat Petroleum Corp (S)

Seventeenth annual Technology Entertainment and Design conference is held in Monterey, Calif; photos (M)

Federal Reserve chairman Alan Greenspan, in testimony before House Financial Services Committee, says recession appears to be ending but that recovery is likely to be sluggish; forecast is taken by analysts and economists to mean central bank will leave interest rates unchanged at least until middle of year; says he does not expect collapse of Enron Corp to have any broad economic impact, though he suggests it should result in changes, including new accounting rules for stock options; suggests he has little sympathy for calls from domestic steel makers for imposition of big tariffs on imports; sees less of need for Congress to pass package of tax cuts and other measures to help economy with business conditions improving, although he supports Bush administration's position that such package could be helpful should recovery not continue as expected; says despite disruptions engendered by terrorist attacks of Sept 11, typical dynamics of business cycle have re-emerged and are prompting firming in economic activity; says central bank's forecast is for economy to grow at 2.5 percent to 3 percent annual rate this year; says unemployment will be 6 percent to 6.25 percent, up from current level of 5.6 percent; says Fed expects inflation to remain restrained, with price index for personal consumption expenditures increasing 1.5 percent (M)

Article traces genesis of video games back to Spacewar, created at Massachusetts Institute of Technology by six programmers: Dan Edwards, Martin Graetz, Alan Kotok, Steve Russell, Peter Samson and Wayne Wiitanen; game was early inspiration for innovators who founded Apple and other computer companies; brief profiles; drawings illustrate game; photos (L)