November 1, 2002

New York City and San Francisco find creative ways to present themselves to US Olympic Committee as both seek to be United States' entrant in international competition for 2012 Summer Games; cities must conform to strict rules enacted as result of scandals associated with Salt Lake City's bid for 2002 Winter Games when cash and gifts were given to members of International Olympic Committee; photos (M)

China Telecom Corp abruptly postpones $3.68 billion initial public offering in response to weak demand for shares and web of regulations that made it difficult to lower price of offering; state-owned enterprise provides communications to some of China's wealthiest and fastest-growing provinces; retail portion (5 percent) of shares offered globally was fully subscribed, but shares for institutional investors was not; company executives and investment bankers promise to relaunch deal in coming week (M)

Bruce Weber reviews play Hollywood Arms, co-written by Carol Burnett and Carrie Hamilton, directed by Harold Prince, with Donna Lynne Champlin, Linda Lavin, Michele Pawk and Sara Niemietz; photos (L)

S.E.C. Chairman at Center Of Furor Over Audit Chief Three investigations began into the Securities and Exchange Commission's choice of William H. Webster to head a new board overseeing the accounting profession. House and Senate Democrats called for the resignations of both Mr. Webster and Harvey L. Pitt, the commission's chairman. The White House expressed support for Mr. Webster as well as for Mr. Pitt, who was harshly criticized for failing to inform other commissioners before they approved the choice of Mr. Webster that he had led the audit committee of a company facing fraud accusations. [Page A1.]

Pakistani officials say Al Qaeda members are trying to re-establish their network in Karachi, with support from local people, elaborate secrecy and Internet communication; say story of Ramzi bin al-Shibh's final month of freedom and his chaotic arrest illustrates why it is proving so difficult to eliminate Al Qaeda; say bin al-Shibh, thought to be key planner of Sept 11 terrorist attacks on World Trade Center and Pentagon, lived quietly in Karachi, 10 miles from American Consulate, and spent his days with Qaeda friends, logging on to Internet and at night playing cards; Pakistani officials are convinced that Al Qaeda's operations head Khalid Shaikh Mohammed remains in Karachi, hiding in apartment, just as bin al-Shibh did; Mohammed, one of America's most sought men, is alleged mastermind of Sept 11 attacks; Pakistani officials say bin al-Shibh's arrest disrupted Al Qaeda's network in Karachi but did not eliminate it; yearlong crackdown by Gen Pervez Musharraf has failed to stop Pakistani militants from aiding Qaeda members; photo (L)

Reliance Industries, Indian oil and petrochemicals co, reports second-quarter profit of 10 billion rupees ($208 million), 25 percent increase over year earlier (S)

H Carl McCall, Democratic gubernatorial candidate in New York, has been on political scene for 30 years but is barely known by voters; polls show they recognize his name, but have no impression of him; in campaign stops, he recites his impressive resume but mostly leaves out details of what he did as state senator, United Nations diplomat, Citibank executive, president of New York City school board and, for last nine years, state comptroller; detailed examination of his record shows he has long stood apart from controversy; photos (L)

This film version of the old television series teams up Eddie Murphy and Owen Wilson in the Bill Cosby and Robert Culp roles. The slim plot and its predictable third-act twist involve the theft of the Switchblade, the newest example of United States Stealth plane technology, by evildoers. That's the word used by the spy boss, McIntyre (Bill Mondy), who assigns the bumbling special agent Alexander Scott (Mr. Wilson) to retrieve the stolen plane from the evildoer Gundars (Malcolm McDowell). Scott is hooked up with the megalomaniacal boxing champ Kelly Robinson (Mr. Murphy). It's a novel notion, trying to shoehorn two actors who are born scene-stealers into a buddy comedy. But in this case, there are far more laughs in the idea of Mr. Murphy and Mr. Wilson fighting to upstage each other than there are in the movie. — Elvis Mitchell

Article examines record and style of Democratic senatorial candidate Frank Lautenberg, who is trying to win back seat he gave up two years ago; record reveals cantankerous pragmatist who was willing at times to put aside his ideological leanings for sake of advancing his issues and protecting his turf; has reputation as being brash and combative, although he assembled what even critics termed admirable legislative record; career highlights discussed (M)

As the big Japanese brand-name manufacturers report their half-year earnings, it is becoming clear that they are bracing for a very tough holiday season. Sinking American consumer confidence, rumblings of war in the Middle East and the lingering threat of disruptions from a labor dispute in the ports of the American West Coast are worrying even the most robust of the companies, like Sony and Toyota Motor. Some of the manufacturers have already reduced their earnings expectations, while others are holding their breath.

Photo of Steven Sloane, new music director of American Composers Orchestra; photo (S)

Indictment in Enron Case Andrew S. Fastow, the former chief financial officer of Enron, was indicted on 78 counts of fraud, money laundering, conspiracy and obstruction of justice. PAGE C2