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)