May 14, 2004

China's economy continues to race ahead in April despite series of measures by government to slow growth; volume of bank loans is up 20.4 percent from year earlier, little changed from year-over-year increase of 20.7 percent in March; money supply is up 19.1 percent in April, same as March; industrial production rises 19.1 percent from year earlier, compared with 19.4 percent in March; foreign direct investment accelerates, climbing 10.1 percent for first four months of year compared with period last year; contracts for future foreign direct investment rise 54 percent for first four months of year; imports rise 43 percent in April compared with year ago while exports climb 32 percent; faster growth of imports produces trade deficit of $2.3 billion; graph; photo (M)

Special report, First Friends, describes how friends have enabled Gov George E Pataki to amass great wealth while living on public servant's salary and avoiding conflicts of interest; his college roommate Richard A Hayden, who made tens of millions of dollars as real estate investor, employed Libby Pataki as $90,000-a-year consultant and beginning in 1998 he made Patakis partners in lucrative real estate deals; Pataki family finances show that with Hayden's help, Patakis have more than doubled their net worth while governor has been in office, to $2.35 million; family's annual income has grown to $579,453; with governor's salary fixed at $179,000, most of money is being earned by his wife Libby, who also earned $655,000 over last nine years working as consultant to Ronald S Lauder, one of Pataki's strongest political campaign backers; New York imposes no limit on outside income for spouses of elected officials who are not themselves state employees; detailed look at Pataki family finances and investments; photos; graphs (L)

Police investigating disappearance and death of Stacy-Ann Sappleton believe taxicab driver taking her from La Guardia Airport to home of her future in-laws in Queens dropped her off near wrong house; say that killer could have taken advantage of her disorientation and vulnerablity to strangers; family complains that police waited 24 hours before listing Sappleton as missing person; photo (M)

ING says first-quarter profit rose 32 percent, to 1.2 billion euros ($1.4 billion); income at ING's banking operations rose 13 percent, to 3.3 billion euros; graph (S)

IN a state (California, of course) noted for sun-drenched easy living and eccentricity, San Luis Obispo stands out with its ambitious restaurants, funky shops and sprawling vineyards. Not to mention a historic Spanish mission, a nearby ocean beach -- and a wall decorated with wads of chewing gum. Page 4.