US defeats Mexico, 2-0, to advance to quarterfinals of World Cup; chart tracks progress of World Cup; photos (M)

End of History? For U.S., Only the Beginning

New York City Mayor Michael R Bloomberg will increase number of government subsidies for apartments significantly, first such increase since 1995, as homelessness reaches record levels in city; will seek to evict some residents of shelter system who do not aggressively seek permanent housing, while making system more accessible to those in need; number of homeless families increased 22 percent during current budget year ending June 30, leading to 33,840 people in shelter as of June 17 or highest level since city began tracking homeless figures in 1980's; graph (M)

BLOOMBERG PLANS MORE HOUSING AID FOR THE HOMELESS

News analysis of two competing bills pending in New York State Lagislature to soften Draconian Rockefeller-era drug laws; critics say neither corrects fundamental legal structure that leads to injustices since both still include mandatory sentences for drug offenses, and still base charges on weight of drugs involved rather than role of defendant; hence, no matter what compromise is worked out between Democratic and Republican versions of bill, state district attorneys who generally have resisted changes will have won significant victory (M)

In Effort to Change Drug Laws, Some See Too Little Change

Article describes some custom-made diets that handlers at Bronx Zoo and San Diego Zoo prepare each day to feed wide variety of animals; zoo nutritionists describe how they tailor zoo diets, such as feeding cat food mixed with monkey chow to aardvarks, to keep their charges healthy in captivity; photos (M)

Cat Food for Aardvarks, and Other Zoo Diets

Michiko Kakutani reviews book The Lovely Bones by Alice Sebold; photos (M)

The Power of Love Leaps The Great Divide of Death

Footlights column: Louisiana and Spanish officials sign agreement for exhibition of masterpieces by Goya, El Greco and Murillo at Alexandria Museum of Art coinciding with Louisiana Purchase Bicentennial; Cathedral of St John the Divine and Philadelphia's Kimmel Center for the Performing Arts will hold summer solstice celebrations; Naumburg Orchestra summer concert series in Central Park is about to begin; Metropolitan Museum of Art will open new exhibits of works by Gauguin, artworks and photographs by Thomas Eakins and his circle and Impressionist and Post-Impressionist European paintings; photos (M)

Footlights

Madison Dearborn Partners, Chicago-based private equity firm, acquires Ireland's Jefferson Smurfit Group for 2.4 billion euros ($2.27 billion) and assumption of 1.5 billion euros ($1.42 billion) of Madison debt; chairman and chief executive Dr Michael Smurfit and several other directors, including his brother Tony, recuse themselves from involvement in negotiations to avoid conflict of interest because they are on both sides of deal; they will reinvest significant portion of proceeds from selling their Smurfit shareholdings in Madison Dearborn and will continue to have role in running company; graph; photo (M)

Chicago Firm Plans to Acquire an Irish Conglomerate

Shareholders of EasyJet approve purchase of Go Fly Ltd from 3i Group for 374 million pounds ($552 million) to overtake Ryanair Holdings as Europe's largest low-fare airline (S)

World Business Briefing | Europe: Britain: Go Fly Takeover Approved

Tyco International files suit against former general counsel Mark A Belnick and former lead independent director Frank E Walsh Jr contending in separate cases that men wrongly took millions of dollars from company; suit alleges Belnick was paid $20 million that was not disclosed to Tyco's board and received $14.9 million in no-interest loans under program that was supposed to pay for employee moving expenses; more than $10 million in loans went to Belnick's purchase of vacation home in Utah; Belnick allegedly falsified records so that this pay and bonuses would not be disclosed to Securities and Exchange Commission; suit contends Belnick refused to cooperate with company's internal probe into undisclosed pay and benefits to former chairman L Dennis Kozlowski and other executives; suit demands Belnick immediately repay loans and any other misappropriated money; Walsh and charity he controlled allegedly received $20 million bonus from Tyco in 2001 that was not disclosed to Tyco's board; Walsh, who led committee that determined pay of Kozlowski, asked Kozlowski personally for bonus; Kozlowski approved it without consulting anyone else; suit demands Walsh return $20 million, plus interest; representatives for Belnick and Walsh deny accusations (M)

Tyco Sues Ex-Lawyer And Director

US soccer team advances to quarterfinals of World Cup competition for first time in 72 years with 2-0 victory over Mexico in Chonju, South Korea; deft lineup changes, tactical maturity on defense and efficient counterattack produces victory, establishing regional superiority for team, which finished last among 32 competing teams in 1998 World Cup; team will face heavily favored Germany on June 21; photos (M)

Makeover Is Doing Wonders for U.S. Soccer Team

Study by General Accounting Office, investigative arm of Congress, shows more than year after California endured power shortages and soaring energy prices, Federal Energy Regulatory Commission is still not up to task of protecting consumers and ensuring that electricity is sold at reasonable rates; finds commission is hobbled by antiquated procedures, legislation and perhaps mind-set more suited to old days when energy producers were regulated monopolies; GAO says Congress should consider arming energy agency with tougher regulatory powers; commission chairman Patrick Wood III files response to study in which he generally agrees with criticism and suggestions for change (M)

Study Faults U.S. Regulators In Aftermath Of Power Crisis

Two years after federal government announced ambitious plan to build two mammoth passenger cruise ships, first in US shipyard since 1950's, project has failed at cost of $187 million to taxpayers; unfinished and unfloatable hulls lay in Pascagoula, Miss, shipyard where government is seeking buyer to recoup costs; failed project, backed by more than $1 billion in loan guarantees, is derided as example of political pork gone wrong; shipyard is in home state of Senate minority leader Trent Lott and was father's employer; failure confirms worst fears of critics, who say project is corporate welfare debacle that illustrates dangers lurking behind tens of billions of loan guarantees government has extended to array of businesses; ships being built by American Classic Voyages were seen as way to jump-start dormant commercial shipbuilding industry; became government property after company filed for bankrutpcy protection in October 2001; photo (M)

Critics Christen Ship Project As an Off-Course U.S.S. Pork

New Jersey legislators begin final, frantic attempt to close looming $5.3 billion budget gap for fiscal 2003, quest that has consumed Gov James E McGreevey's first months in office; dispute is sharper than those of last eight years, when Republicans held lock on government; fight over centerpiece of McGreevey's budget, restructuring of state's corporate business tax, has been especially contentious; photos (M)

Racing to Plug A Budget Hole In New Jersey

Republican leaders in Congress are using procedural tactics to keep from voting on measures to close so-called Bermuda loophole in federal tax code, measures that would almost certainly pass overwhelmingly if given chance; loophole allows big companies to pretend legally that they are based offshore (Bermuda has been country of choice) and then filter profits through third country (most often Barbados), avoiding American income taxes; Bush administration and Republican leaders have said loophole should be closed but have emphasized that flawed tax laws are forcing companies to make Bermuda move; Democratic Rep Lloyd Doggett will try to change law again with measure that would forbid companies to use loophole unless their shares actually trade on exchange in tax haven country or most of their stock is owned by people living there; photo (M)

G.O.P. Is Moving to Slow Action on Tax Loophole

Omnicom Group chairman Bruce Crawford, former Metropolitan Opera president and general manager, is chosen to replace Beverly Sills as chairman of Lincoln Center; Crawford comments on center's $1.2 billion redevelopment plan; photo (M)

Met Opera's Former Head Will Lead Lincoln Center

Article on genetic research by Dr Kari Stefansson, direct descendant of Vikings who began kidnapping young Celtic women and carrying them off to Iceland in 874; Stefansson's six-year-old company, Decode Genetics, reportedly has mapped general location of errant genes for 20 of 50 common diseases, found region holding longevity gene and identified specific disease-causing genes in three, those for schizophrenia and two forms of stroke; photo; map; diagrams (M)

A Genomic Treasure Hunt May Be Striking Gold

Article on Richard C Notebaert, who succeeds Joseph P Nicchio as chief executive and chairman of Qwest Communications International; says how long Notebaert stays at helm depends in part on his relationship with Philip F Anschutz, who owns about 18 percent of Qwest; company's financial problems detailed; photos (M)

For Qwest's New Chief, A Question of Longevity

National Forest Service employee Terry Lynn Barton is arraigned, Denver, Colo, on charges of igniting blaze that destroyed more than 100,000 acres and drove thousands from homes; confessed she set letter from estranged husband on fire in fit of anger after initially telling investigators she responded to fire already burning; faces up to 20 years in prison and fines of up to $750,000; her arrest prompts conflicted reaction of anger and sympathy, both from people who know her and those living in areas scorched by fire; friends and relatives describe her as hard-working, dedicated Forest Service employee who regarded summers in forests of native California and Colorado as dream job; map; photo (M)

Forest Worker Held in Fire Creates Anger and Sympathy

 Solicitation Ban Overturned  People have the right to go door to door for religious and political causes without first getting the government's permission, the Supreme Court ruled.   PAGE A20    Wall St. Push on Laws  Members of the securities industry are pushing Congress to water down a proposed law to prevent states from pursuing those who violate securities laws.   PAGE C19

INSIDE

Clyde Haberman column examines report by Anti-Defamation League on anti-Semitism in America which found 17 percent of Americans hold hard-core anti-Semitic views, compared with 12 percent four years ago (M)

Among Jews, Urge to Panic Is Premature

Suicide bomber detonates powerful explosion on bus during rush hour in Jerusalem killing at least 14 people; scene described; Israeli forces kill Palestinian militant Walid Sbeich in West Bank village of Al Khader; Israel radio links killing to attack; Palestinian bomber also blows self up on Israeli side of border with West Bank, near where Israel is building new 225-mile security fence; two other Palestinian fighters are killed; both Jewish settlers and Palestinians oppose construction; Israelis who favor exxpulsion of Palestinians from West Bank say fence represents victory for terrorism; Palestinian leader Yasir Arafat calls it act of racism and 'sinful assault' on Palestinians' land; photos (M)

Suicide Bomber Hits Jerusalem; At Least 14 Die

Muhammad Fahim Rayan, chairman of EgyptAir since 1981, is ousted, and carrier promises rapid progress on sweeping reorganization announced last month; government's ownership and control of carrier will remain same; Rayan is replaced by Abdel Fattah Katu, government's director of civil aviation; airline and Rayan have drawn mounting criticism from opposition newspapers and airline's pilots over mismanagement, corruption and safety lapses; photo (M)

EgyptAir Chairman Ousted Amid Mounting Criticism

Romania hires PricewaterhouseCoopers to help it find about $30 million of financing needed to build Count Dracula theme park in medieval town of Sighisoara in Transylvania (S)

World Business Briefing | Europe: Romania: Vampire Theme Park Seeks Funds

20 years after beating death of Chinese-American Vincent Chin in Detroit club sparked widespread protests and grassroots expansion of Asian-American political movement and broadening of laws and attitudes regarding civil rights and hate crimes Asian-Americans are still engaged in struggle to be seen and heard in nation that still views race issues in terms of black and white; Asian-Americans say there is need to battle stereotypes that still foster social and political climate as potentially dangerous as one that led to Chin's death during racially tinged brawl in strip club; incident recalled; his assailants Ronald Ebens and Michael Nitz pleaded guilty to second-degree manslaughter and were sentenced to three years' probation and fined $3,780; photos (M)

A Slaying in 1982 Maintains Its Grip on Asian-Americans

Documents filed in bankruptcy court show year before Enron Corp collapsed last December, about 100 executives and energy traders collected more than $300 million in cash payments from company; more than $100 million went to former chairman-chief executive Kenneth L Lay; majority of cash payments went to employees at units whose profitability has been called into question since company's collapse; John J Lavorato, top executive at Enron's energy-trading unit, and gas trader John D Arnold each received cash bonuses of $8 million to keep them from leaving Enron last fall; former chief executive Jeffrey K Skilling received $7.5 million in cash bonuses and incentive pay; Lay got $10.6 million in similar payments; former Enron Energy Services executive David W Delainey received $4.2 million; Senate Finance Committee says it is looking into whether top executives at Enron placed their bonuses in offshore accounts and had later withdrawn that money without paying taxes; chart (M)

June 18, 2002

Headlines from June 18, 2002

End of History? For U.S., Only the Beginning

BLOOMBERG PLANS MORE HOUSING AID FOR THE HOMELESS

In Effort to Change Drug Laws, Some See Too Little Change

Cat Food for Aardvarks, and Other Zoo Diets

The Power of Love Leaps The Great Divide of Death

Billboard 200

The Eminem Show

P. Diddy & Bad Boy Records Present... We Invented The Remix

Ashanti

Come Home With Me

A New Day Has Come

Historical Context for June 18, 2002