December 13, 2002

American-backed Iraqi opposition is solidifying ties to Iran and opposing posibility of US-installed government if Saddam Hussein is ousted; leaders of all major groups, preparing to meet in London, welcome help getting rid of Hussein, but warn Iraq would not tolerate American military occupation or American 'viceroy' afterwards; reject US recommendation to refrain from setting up provisional government or assembly; Prof Kanan Makiya explains (M)

At least 10 New York Jets players are involved in brawl during practice, on day after unnamed Jets player is accused of assaulting limo driver Donald Matinsky after team dinner; photo (M)

Clyde Haberman NYC column offers humorous suggestions for remakes of movies that would be appropriate to events currently absorbing New Yorkers (M)

Securities regulators and biggest brokerage firms remain deeply at odds on terms of settlement of investigations into Wall Street's conflict-tinged stock research after two days of meetings in New York; sides will again try to reach agreement on how much in fines each firm will pay under settlement and which facts will be released by investigators to public for us by investors wishing to bring their own private lawsuits against firms; basic agreement has been reached on how brokerage firm research department will operate, ensuring that analysts do not become salespeople for firms' investment banking clients; regulators involved in talks are Securities and Exchange Commission, NASD, New York Stock Exchange, New York attorney general's office and North American Securities Administrations Association, which represents state regulators; 12 Wall Street firms include Salomon Smith Barney, unit of Citigroup, Credit Suisse First Boston and Morgan Stanley (M)

New York Gov George Pataki pledges ambitious effort to overhaul and eventually do away with adult homes system for mentally ill patients, long considered dumping ground for psychiatric patients discharged from state hospitals; teams of mental health workers evaluate state's adult homes and see whether some residents can be resettled into smaller, better-managed facilities; administration has not disclosed how it would finance new housing and say they will present more details when budget is released (M)

Pres Bush rebukes as 'offensive' remarks by Sen Trent Lott that appear to embrace segregationist appeals of Strom Thurmond's 1948 presidential campaign; Bush, speaking to mostly black audience in Philadelphia, says remarks 'do not reflect spirit of our country'; Lott is engulfed by criticism for saying at Thurmond's 100th birthday party that nation might be better off had Thurmond won; Bush says Lott was right to apologize; statement could give cover to reluctant Republicans, some of whom, like John McCain, William Bennett and Olympia Snowe, are calling for fuller explanation; photo; black members of Congress to seek formal Senate censure (M)

List of major news stories on inside pages

Phone equipment maker Alcatel will sell as much as 819 million euros ($834 million) in convertible bonds because it expects demand to continue to weaken in 2003; is reducing its work force by more than half; stock price graph (S)

Organizations run by religious and crime-fighting conservatives champion programs to help prisoners being released with job-training, using model established in welfare-to-work programs; America Works has placed more than 300 former prisoners in jobs and is eager to strengthen ties between incarcerated fathers and their children; workshops are offered to help former prisoners in variety of areas, including job interviewing techniques; photos (M)

Bush administration proposes largest increase in automotive fuel economy in more than decade, calling for 7 percent improvement in performance of sport utility vehicles, pickup trucks and minivans; critics, including environmentalists and top Democrats, say proposal demands no more of auto industry than it has already committed itself to achieve on its own; plan is praised by some moderates, and auto executives call it challenge; graph (M)

State and local officials and medical authorities across country doubt they could carry out first smallpox vaccination program in three decades within Pres Bush's time frame; cite need to educate medical personnel and the public, reduce risk of complications, ensure hospital care if vaccinated workers fall ill and determine responsibilities for costs and liabilities; photo; list of potential reactions; initial phase to be set by Bush would cover about 500,000 military personnel and 500,000 civilians, mostly health care and emergency workers; ten million people in law enforcement might be offered vaccine (M)

European Central Bank reduces its forecast of growth to as little as 1.1 percent in 2003, Western European automobile sales fall 6.2 percent in November and French factory production plunges 0.6 percent in October, providing most recent evidence that region's economy is stagnating (S)