January 31, 2003

Profit at Canon, world's largest office equipment maker, doubled in last quarter of 2002; earned 60 billion yen ($503 million); sales grew 14.4 percent; sales and profit set records in 2002; net income was 191 billion yen, 13.8 percent increase over previous year (S)

Cambodian Apology to Thais Cambodia apologized and offered compensation for a riot that damaged the Thai Embassy in Phnom Penh and severely strained relations with its neighbor. PAGE A4 File-Shredding at the I.N.S. Two former employees of an Immigration and Naturalization Service data processing center were indicted on charges of shredding tens of thousands of documents. PAGE A22

Bush Expected to Propose Expansion of Savings Plans The administration is working on a major shift in retirement savings plans that would enable most Americans to greatly increase the amount they could put away in tax-free accounts. The change, which would primarily benefit the affluent, is aimed at encouraging an increase in personal savings and at simplifying the maze of retirement savings choices. The move would potentially increase tax revenues in the short turn, helping the White House hold down the deficit over the next few years, but it would cause a substantial drain on future tax revenues. [Page A1.]

A.U.S.A, sitcom set to debut, was developed by former US attorney Richard Appel and shows lighter side of life in Manhattan federal prosecutor's office; Homeland, dramatic series about US attorney's office, is currently under review at several networks; photos (M)

New York City Police Comr Raymond Kelly announces arrests of 25 people on drug charges; arrests were made with help of local residents who feared reprisals when police asked them about drugs at Coney Island housing development tenant association meeting, but who were more than willing to phone in tips privately; residents say dealers intimidated them and controlled neighborhood (M)