Brazil is looking to become major player in global steel industry with help of foreign investors; Brazil's steel industry is trying to keep up with demand in China, investing billions of dollars to increase its production capacity by more than 30 percent in next few years; China's Baosteel Shanghai Group and Luxembourg's Arcelor are still planning to build blast furnaces to churn out steel in Brazil; Dongkuk Steel Mill Co of South Africa and Italian metals group Danieli are also helping to finance construction of $700 million steel slab plant in northeastern Brazilian state of Ceara; photo (M)

China Fuels Brazil's Dream of Being a Steel Power

BT Group's sales were little changed at 4.79 billion pounds ($8.5 billion) in three months ended in March; fourth-quarter income fell to 303 million pounds from 1.65 billion pounds; graph (S)

World Business Briefing | Europe: Telecom Concern Halts Sales Slide

World Business Briefing | Asia: Japan: Bank May Sell Unit

Article on popularity of Honda Civics, Mazdas and other budget-priced family cars among older teenagers who are focusing their attention on fancy aftermarket accessories; photos (M)

Off to a Showroom, Diploma in Hand

New York City's finance and investment banking community will throw lavish parties, receptions, concerts and dinners for delegates to Republican National Convention, especially for lawmakers who oversee financial service industry and those from states where their companies do most of their business; corporate-financed parties are legal but take on added significance this year because of new laws that prohibit corporations from giving large donations to national political parties; other industries will also entertain conventioneers, but none to extent of Wall Street (M)

Wall Street Plans Treats For the G.O.P.

 Wall Street Opens Wallet for Convention  Despite talk about protesters overwhelming the Republican National Convention this summer, one city sector is rolling out the red carpet: Wall Street and its investment banks. They are showering the conventioneers with money for parties to make the Republicans feel right at home. Some of the main parties will be for Republican members of Congress who oversee the financial services industry.   PAGE B1    German Opposes NATO Role  Chancellor Gerhard Schröder of Germany said he would make it clear to members of NATO at a meeting next month that he is opposed to sending troops from the alliance to Iraq.   PAGE A3

INSIDE

New York Yankees defeat Anaheim Angels, 6-2; photo (M)

Jeter Gets His Offense Into Gear In Victory

 Founder of Strong Funds Settles Trading Inquiry  Richard S. Strong, who helped fuel the growth of mutual funds over the last three decades, has agreed to pay $60 million and be banned from the financial industry for life to settle an investigation over rapid trades he made at the expense of fund investors.      Mr. Strong, 62, the founder of Strong Capital Management, is the most prominent figure to be ensnared in a sweeping investigation of improper trading in mutual funds begun last September by Eliot Spitzer, the New York attorney general. Mr. Spitzer and other regulators have sued some of the nation's largest money managers, forcing several to pay steep penalties and reduce the fees charged to investors. [Page A1.]

BUSINESS DIGEST

Nascar community expresses feelings of betrayal as number of races leave their North and South Carolina homes for tracks in California and Arizona in effort to expand audience and appeal of Nascar; map (M)

From a Cradle to a Grave

Italy's flagship airline Alitalia says it has secured government support to sell new stock and for bridge loan that would provide cash to pull company back from brink of bankruptcy; government, which owns 62 percent of carrier, and private investors would buy some portion of new shares; photo (M)

Italy Backs Plan to Sell New Stock At Alitalia

Indonesia's fledgling labor movement is backfiring on workers; growing number of Indonesian companies, frustrated by proliferation of unions and confusing laws on employment, are replacing employees with contract laborers who cannot bargain, or are moving their jobs to nonunion countries; map; graph; photo (M)

In Indonesia, Unions Hit a Roadblock: Contract Labor

Alessandra Stanley reviews CBS's two-part mini-series Scott Turow's Reversible Errors, based on novel, starring Felicity Huffman, William H Macy and Tom Selleck; photos (M)

Looking for the Flaw That Can Save a Life

United Methodist Church has voted to start old-fashioned, defined-benefit pension plan for its 25,000 American pastors and lay employees--very type of plan that so many companies have scuttled; church appears to be first sizable employer to create such pension plan in many years; has about $12 billion in other types of retirement plans; photo (M)

United Methodist Church Bucks the Trend on Employee Pensions

Floyd Norris comment on how fears of rising US interest rates are sending world stock and commodities markets reeling; chart (M)

How Fears of Rising U.S. Interest Rates Sent World Markets Reeling

Russia's Lukoil has main oil producer in Russia; its president Vagit Y Alekperov gets along well with Russian Pres Vladimir V Putin, who even took time out from state visit to US last September to cut ribbon at new Lukoil gas station in Manhattan; analysts and industry experts say things that make Lukoil work in Russia are holding it back in rest of world: Lukoil remains very Russian company, with all that has come to imply, from its complex structure and opaque finances to its inefficiency and dependence on good will of Russian government; Alekperov says company aims to be biggest producer in world; Lukoil is immense; in April it reported that it had 20.06 billion barrels of proven oil and gas reserves at beginning of year, 4 percent increase from year earlier; photos (M)

The Russian Contender For King of the Oil Patch

Interrogation center at Abu Ghraib was run by military intelligence unit that brought to Iraq aggressive rules and procedures it developed for conflict in Afghanistan, where Geneva Conventions were not necessarily followed; some members of that unit have already been quietly punished for abuse of Iraqi woman at prison; Congressional officials say 'interrogation rules of engagement' posted in Aug 2003 by Capt Carolyn A Wood, officer in charge of unit, were inconsistent with those later issued for Iraq by Lt Gen Ricardo S Sanchez; senior Army lawyer has acknowledged that Sanchez's rules might have left unclear degrees to which harsh measures were permissible; until now, very little information about interrogators or evolution of interrogation rules has emerged publicly; secret interrogation center is focus of continuing inquiry into role of military intelligence officers and civilian contractors who oversaw it; no military police were present at secret interrogation center and abuses that have come to light in recent weeks did not occur there, but in cellblocks of Abu Ghraib; photos; chart showing changing rules for interrogation (M)

Afghan Policies On Questioning Landed in Iraq

World Business Briefing | Asia: Japan: Steel Maker's Profit Rises

Parks in less affluent areas of New York City are being repaired and maintained with help from private and corporate sponsors; 50 percent of city's 1,700 parks and playgrounds have been adopted by volunteers, up from 40 percent in 2003, while nine nonprofit groups have donated $60 milllion for park restoration; city is also raising money for parks through concessions and park rentals; photos (M)

For Parks, It's Not Easy Getting Green; But a Push Is On to Interest Donors in Unsung Spots

World Business Briefing: Russia: Oil Figure's Trial Pü

World Business Briefing | Europe: Russia: Oil Figure's Trial Postponed

Richard S Strong, who helped fuel extraordinary growth of mutual funds over last three decades, agrees to pay $60 million and be banned from financial industry for life to settle investigation over rapid trades he made at expense of investors in his funds; is most prominent figure to be ensnared in probe of improper trading im mutual funds begun last Sept by New York Atty Gen Eliot Spitzer; Spitzer has long maintained that Strong's behavior stood out because he personally profited from trading and because, as chief executive of Strong Capital Management, he should have known better; Strong is paying largest penalty by individual since mutual fund investigation began; in addition, Strong Capital agrees to pay $80 million and cut management fees for its mutual funds by 6 percent over next five years; Spitzer's office releases statement of contrition written by Strong; graphs (M)

FUND EXECUTIVE ACCEPTS LIFE BAN IN TRADING CASE

Article on canyoneering trip to Zion National Park; canyoneering is multiskill sport that combines climbing, rappelling and swimming to descend steep slot canyons; photos; maps (M)

Where Waterfalls Are the Way Out

Article profiles towns along Hudson River's east and west banks; compares Newburgh, NY, which has failed to regain footing, with Beacon, Annandale-on-Hudson and Hudson, which are flourishing with infusion of art galleries and revival and construction of cultural facilities; photos and brief descriptions of homes for sale in region; drawing (L)

A River Runs Through Them

Caryn James Critic's Notebook column focuses on two documentary movies about journalists in Iraq: Control Room, behind-the-scenes look at Arab news channel Al Jazeera, and War Feels Like War, which will be shown on PBS in July; also notes foreign news programs shown on American television; photos (M)

The War's Dark Side: Filling In the Blanks

Illegal balcony collapses during construction of luxury condominium in Brooklyn, killing laborer and injuring two others, all immigrants; Big Apple Development and Construction, primary contractor, has history of violations and fines for unsafe work sites; Marine Partners, owners, and Pro Weld Fabricators, balcony contractors, have also been cited for violations; photo; diagram of balcony (M)

Laborer Dies and 2 Are Hurt as Illegal Balcony Roof Falls

Magistrate Judge Cheryl L Pollak rules that New York City has right to information from Bureau of Alcohol, Tobacco and Firearms that could help prove its claim that industry closes its eyes to ways that guns get into hands of criminals; city wants to trace path of guns used in crime to help prove claims that gun industry's marketing and distribution practices amount to public nuisance; Bush administration and Congressional supporters of gun industry and its lobbying groups are reluctant to have data release because it is likely to be helpful in civil suits against industry; some law inforcement officals, including New York City Police Comr Raymond W Kelly, have been critical of release of information, fearing that it could compromise investigations (M)

May 21, 2004

Headlines from May 21, 2004

China Fuels Brazil's Dream of Being a Steel Power

World Business Briefing | Europe: Telecom Concern Halts Sales Slide

World Business Briefing | Asia: Japan: Bank May Sell Unit

Off to a Showroom, Diploma in Hand

Wall Street Plans Treats For the G.O.P.

Billboard 200

Confessions

D12 World

Musicology

Still Writing In My Diary: 2nd Entry

The Girl In The Other Room

Historical Context for May 21, 2004