August 13, 2002

Surplus in Japan's current account nearly doubled in June, mostly because of 8.7 percent increase in exports; surplus grew 90.3 percent, to 1.5 trillion yen ($12.6 billion), from year ago; imports declined 4.6 percent because of Japan's weak economy (S)

Germany's RWE posts 9 percent increase in operating profit to 2.17 billion euros ($2.12 billion) in first half; sales rose 3.5 percent, to 27.7 billion euros ($27 billion), and net profit was 818 million euros ($800 million), up 11 percent from year earlier (S)

Bankruptcy experts says US Airways has some factors working in its favor and could benefit from bankruptcy process; long road to reorganization can offer airlines useful opportunity to streamline their operations and gain new financing (M)

PSA Corp, Singapore's dominant port operator, will join front line of US war against terrorism; Singpore in June became first country to sign on to container security initiative by US Customs Service; one important feature of initiative will be stationing of US customs officials in world's largest ports, where they can help prevent terrorists from sneaking weapons of mass destruction into 5.7 million containers that travel to US seaports each year; Canada, Netherlands, Belgium and France have followed Singapore's lead, and several other countries are thought to be close to signing on; many port operators and shipping companies remain unconvinced; plan will mean costly delays, at time when ports are competing intensely for cargo; Japan and Hong Kong have expressed reservations about cost of proposal and what they see as its instrusiveness; photo (M)

Federal officials report breaking up huge child-smuggling ring that preyed on illegal immigrants desperate to be reunited with their children in US; say since 1994, ring smuggled in hundreds of toddlers and teenagers from Guatemala, Honduras and El Salvador at cost of $5,000 to $7,000 each; say tightened border controls since September 11 have made it more difficult and expensive for those in US ilegally to return home to retrieve children, forcing them to entrust task to strangers; describe operation as mean-spirited, criminal enterprise driven by greed; announce arrest of alleged ring members Ana Karina Cruz Rivas, Juan Orlando Servellon De Leon and Andrea Giron; earlier arrests of Berta Campos and Guillermo Antonio Paniaqua noted; photo (M)

Clyde Haberman NYC column queries why input from tax-paying, ticket-buying public has not been sought in current labor problems of Lincoln Center musicians, New York City police and major league baseball players (M)

Michiko Kakutani reviews book The Writer and the World: Essays by V S Naipaul; photos (M)

Shakeup

Article on new story line in DC Comics' Green Lantern series featuring character Terry Berg, teenage comic book intern who is openly gay and becomes victim of gay bashing; cartoons (M)

Harvey Araton Sports of The Times column discusses ramifications of possible baseball strike on New York Yankees organization and owner George Steinbrenner; photo (M)

US Airways bankruptcy jolts confidence in large carriers and stocks plummet on August 12; passengers worry how travel will be affected by reorganization; investors seemingly focus on prospect that other carriers, such as United, will also file for protection; analysts say restructuring of US Airways will likely strengthen industry by forcing widespread cost-cutting and reduction in capacity; US Airways moves to reassure customers; says it plans to keep serving almost all destinations; says it hopes to complete plan to exit bankruptcy by first quarter of 2003; charts; photos (M)

Rapidly expanding cottage industry that helps people file bankruptcy petitions and other legal papers draws increasing attention from bench and bar; experts differ on whether crackdown is valuable consumer protection or restraint of trade by powerful monopoly, namely, legal profession; federal officials cite need to protect public from fraud; say preparers charge excessive fees and are huge problem in many parts of country, notably areas in West with large immigrant populations; reject assertion that crackdown is aimed at protecting monopoly enjoyed by bankruptcy lawyers; preparers say action smacks of antitrust, monopoly and price-fixing; scholars say it arises from mixed motives, mostly concern about competition; Justice Department in last seven years has filed almost 4,000 motions seeking to stop bankruptcy petition preparers or to reduce their fees; photo (M)