October 10, 2003

Station wagon packed with explosives blows up inside police compound in one of Baghdad's poorest slums, killing car's occupants and at least 8 others and wounding more than 40; hours later, two American soldiers are killed and four wounded in ambush in same Baghdad neighborhood; no one claims responsibility for either attack; suspicion falls on Sunni Muslims loyal to Saddam Hussein, but because attack is in predominantly Shiite Muslim area, radical Shiites may have been involved; at almost same hour as attack on police, but in Baghdad's richest neighborhood, Jose Antonio Bernal Gomez, deputy intelligence officer at Spanish Embassy, is assassinated at his home after opening his gate to man dressed as Shiite cleric; continuing security problems raise question of how diplomats, United Nations or relief agencies are going to do their jobs in Iraq; photos (M)

Mexico's new energy minister, Felipe Calderon, faces same challenges his predecessors did in struggle to overhaul decaying government-owned oil and electricity monopolies and open these industries to more foreign investment; estimates his oil-rich nation needs more than $150 billion in investment in next decade to stem rising tide of natural gas, petrochemical and gasoline imports; allowing private companies in would probably require constitutional changes that many Mexicans liken to treason and that Congress has repeatedly rejected; Mexico could find its economic stability threatened by rising debt from investments in production needed to keep up with domestic energy demand with changes; Calderon replaces Ernesto Martens; photo (M)

Report by New York City Comptroller William C Thompson finds that quasi-public Economic Development Corp has been used to pay for items from sport utility vehicles for top city officials to ceremonial keys for celebrities; corporation, which raises money by selling and leasing city-owned properties, paid $7,000 for going-away party for chief of staff Catherine Giuliani, former mayor's cousin, and $11,222 for president Michael Carey, former governor's son; Mayor Michael Bloomberg says financing of vehicles is ending (M)

Recording Industry Assn of America sues owners of Columbus Farmers' Market in Springfield, New Jersey, where more than 15,000 counterfeit CD's have been seized in raids over last three years; photo (S)

Andy Pettitte survived a shaky start to beat Derek Lowe, 6-2. Nick Johnson's two-run homer woke up New York's offense. The stage is set for an all-Cy Young Game 3 tomorrow in Boston, with Pedro Martínez facing Roger Clemens.