June 26, 2002

Spanish police and undercover FBI agent infiltrate Madrid hotel and, in sting operation, recover 10 of 17 masterwork paintings, valued at estimated $50 million, stolen in 2001 from mansion of billionaire construction magnate Esther Koplowitz Romero de Joseu; two suspects, Angel Flores and Juan Manuel Candela Sapiehia, identified as members of Eastern European criminal organization, are arrested and third, identified as former mansion security guard Luis Miguel del Mazo Lopez, surrenders; photos (M)

Argentina's already disastrous economic crisis is suddenly threatening to become even worse; Pres Eduardo Duhalde says it may be impossible to reach any agreement with International Monetary Fund; central bank president Mario Blejer is stepping down; will be replaced by Aldo Piganelli; Blejer's departure leaves Economic Min Roberto Lavagna as undisputed chief of government's economic team; Lavagna embarks on three days of meeting with country's creditors in New York and Washington to get $18 billion from lenders; Argentine peso is down 2.5 percent, to 3.86 to dollar;

Clayton, Dubilier & Rice acquires Brake Brothers, British forzen food supplier, for $651.1 million plus assumed debt; graph (S)

Germany defeats South Korea, 1-0, to eliminate South Korea from World Cup and advance to finals; photos (M)

China Aviation Industry No II Group plans to sell shares in Hong Kong to finance expansion (S)