<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0//EN"    "http://www.w3.org/TR/REC-html40/strict.dtd">

<HTML>
<HEAD>
<TITLE>NYTimes HTML E-Mail</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" TEXT="#000000" LINK="#000066" VLINK="#666666" ALINK="#990000">
<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0" BGCOLOR="#FFFFFF">
<TR>
<TD WIDTH="600" VALIGN="TOP">
<!-- Flag goes here -->
<IMG SRC="http://graphics.nytimes.com/images/email/todaysheadlines/todayshedflag.gif" WIDTH="600" HEIGHT="35" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="left">
</TD>
</TR>
<TR>
<TD WIDTH="600" VALIGN="TOP"><font face="verdana, arial, helvetica, sans-serif" size="1">
<!-- Search box begins -->
<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD HEIGHT="2" BGCOLOR="#000000"><IMG SRC="spacer.gif" WIDTH="1" HEIGHT="1" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="left">
</TD>
</TR>
<TR> <TD BGCOLOR="#CCCCCC" >
<FORM method="GET" action="http://query.nytimes.com/search/query">
&nbsp; 
<FONT face="verdana, arial, helvetica, sans-serif" size="2">Search NYTimes.com 
<INPUT TYPE="text" SIZE="15"  name="query" MAXLENGTH="32">  
<select name="date">
<option value="Today">Today's News <option value="site1week">Past Week <option value="past30days" selected="">Past 30 Days <option value="past90days">Past 90 Days <option value="past365days">Past Year <option value="Full">Since 1996 </select>
<input type="image" name="submit" value=" Search" src="http://graphics.nytimes.com/images/global/global_search/gs_submit.gif" width="18" height="19" border="0" alt="submit" align="top">
</FONT>
</FORM>
</TD>
</TR>
</TABLE>
<!-- Search box ends -->
</TD>
</TR>
<TR>
<TD WIDTH="600" VALIGN="TOP">
<TABLE WIDTH="600" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
 <TD WIDTH="600" COLSPAN="2" HEIGHT="7"><IMG SRC="http://graphics.nytimes.com/images/misc/spacer.gif" WIDTH="1" HEIGHT="7" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="left"></TD> </TR>
<TR>
<TD WIDTH="468" VALIGN="TOP">
<!-- OAS tag for 468 goes here -->
<A href="http://www.nytimes.com/RealMedia/ads/click_lx.ads/email.nytimes.com/todaysheadlines/html/3323/Position1/th-technoscout8/HappyEyes468x601.gif/" target="_blank"><img src="http://graphics4.nytimes.com/RealMedia/ads/Creatives/th-technoscout8/HappyEyes468x601.gif" BORDER=0 Other ALT="" ></A>

</TD>
<TD WIDTH="10"><p></TD>
<TD WIDTH="122">
<!-- E-Mail nav goes here --><!-- E-Mail nav goes here -->
<TABLE WIDTH="122" BGCOLOR="#FFFFFF" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD VALIGN="TOP">
	<A HREF="http://www.nytimes.com/email">
	<IMG SRC="http://www.nytimes.com/images/email/wine/customize.gif" ALT="Customize This E-Mail" WIDTH="122" HEIGHT="19" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="left">
  </A>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<A HREF="http://www.nytimes.com/email">
<IMG SRC="http://www.nytimes.com/images/email/wine/nytnewsletters.gif" WIDTH="122" HEIGHT="18" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="LEFT"></A>
 </TD>
 </TR>
<TR>
 <TD VALIGN="TOP">
<A HREF="http://www.nytimes.com/email"><IMG SRC="http://www.nytimes.com/images/email/wine/textversion.gif" ALT="Customize This E-Mail" WIDTH="122" HEIGHT="19" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="left"></A><p><br clear="all">
</TD>
 </TR>
</TABLE>

 </TD>
</TR>
 </TABLE>
</TD>
</TR>
 <TR>
 <TD WIDTH="600" VALIGN="TOP">
<font size="2" font face="Times New Roman, Times, serif"> 
</font>


<!-- Content begins -->
<table align="right"><tr><td><font face="Times New Roman, Times, serif" size="2" ><b>January 18, 2002</b> </font></td></tr></table><br>


<hr size="1">
<font face="Times New Roman, Times, serif">
		

<font size="2" color="#990000"><b>QUOTE OF THE DAY</b></font><br>

<font size="2">"Reassurance is good. Cash is better." <br>
<a href="http://www.nytimes.com/2002/01/18/international/asia/18POWE.html?todaysheadlines">AHMAD FAWZI,</a>of the United Nations, on American support for Afghanistan.


<hr size="1">



<font size="2" color="#990000"><b>NATIONAL</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/national/18INQU.html?todaysheadlines">U.S. Hunts 5 Men Seen on Tape, Saying They May Plan Attack</a></b><br>
The Justice Department released photos and video excerpts of five suspected Al Qaeda members on Thursday who were taped offering "martyrdom messages."
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/national/18SHOO.html?todaysheadlines">Coal Town's Hopes Clouded by Killings of 3 at Law School</a></b><br>
As townspeople absorbed the shootings at the Appalachian School of Law, the suspect in the murders was charged on Thursday.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/national/18SECU.html?todaysheadlines">Screening of All Checked Bags Is Starting, but Concerns Remain</a></b><br>
Experts predicted only  modest improvements in security, and hoped for only modest schedule   disruptions as baggage checks begin on Friday
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/national/index.html?todaysheadline">MORE NATIONAL NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<hr size="1">
<img src="http://graphics4.nytimes.com/images/email/advertisement2.gif" WIDTH="150" HEIGHT="15" HSPACE="0" VSPACE="0" BORDER="0" ALIGN="left" ALT="Advertisement">
<BR CLEAR="ALL">
<TABLE WIDTH="588" BORDER="0" CELLPADDING="5" CELLSPACING="0" 
BGCOLOR="#F8F5EC">
<tr><TD><font size="2"> 
<b>"A floor lamp that spreads sunshine all over a room"</b>
<br>
The HappyEyes (TM) Floor Lamp brings the benefits of natural
daylight indoors for glare-free lighting that's perfect for
a variety of indoor activities.
</font></td>
<TD valign=middle><CENTER><a href="http://www.nytimes.com/RealMedia/ads/click_lx.ads/email.nytimes.com/todaysheadlines/html/28600/Position2/th-technoscout8/happyida.html/"> <img vspace=5 src="http://www.nytimes.com/ads/techno120.gif" border="0"></a></CENTER></TD></tr></table>
<br>

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>INTERNATIONAL</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/international/asia/18POWE.html?todaysheadlines">In Shattered Kabul, Powell Vows Longterm U.S. Help for Afghans</a></b><br>
In a whirlwind visit to Kabul on Thursday, Secretary of State Colin L. Powell pledged "significant" assistance to help rebuild Afghanistan.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/international/middleeast/18MIDE.html?todaysheadlines">Six Israelis Slain by Palestinian Gunman</a></b><br>
A coming-of-age ritual turned into a scene of horror on Thursday after a Palestinian gunman walked into a reception hall in northern Israel and opened fire.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/international/18INDI.html?todaysheadlines">India Presses Its Conditions for Pullback From Border</a></b><br>
India will not withdraw its forces from the border with Pakistan until raids end and Pakistan hands over suspected terrorists, India's defense minister said on Thursday.
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/world/index.html?todaysheadline">MORE INTERNATIONAL NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>BUSINESS</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/business/18ENRO.html?todaysheadlines">S.E.C. Leader Says Auditing Industry Can't Police Itself</a></b><br>
The head of the Securities and Exchange Commission proposed Thursday that the accounting industry should be policed by a group dominated by outside experts.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/business/18PART.html?todaysheadlines">Deals That Helped Doom Enron Began to Form in the Early 90's</a></b><br>
The financial dealings that played a central role in Enron's collapse were begun a decade ago by the finance officer at the time, Andrew S. Fastow.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/business/18SHOP.html?todaysheadlines">Kmart Fires Its President and Names a Chairman</a></b><br>
Kmart fired its president and named a new chairman, but failed to reassure investors, who are waiting for concrete signs that the company will not file for bankruptcy.
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/business/index.html?todaysheadline">MORE BUSINESS NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>TECHNOLOGY</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/business/18MERG.html?todaysheadlines">Plan to Split Up Antitrust Oversight Stalls</a></b><br>
A plan by the Bush administration to give the Justice Department responsibility for oversight of mergers involving communications, entertainment and software companies was temporarily scuttled Thursday.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/technology/18SOFT.html?todaysheadlines">Solid Consumer Spending Bolsters Microsoft</a></b><br>
Microsoft reported second-quarter results Thursday that surpassed Wall Street's expectations in both   earnings and revenue.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/technology/18BLUE.html?todaysheadlines">I.B.M.'s Quarterly Sales and Profit Fall</a></b><br>
I.B.M. reported that its sales and profits declined in the fourth quarter, but the results once again reflected the resilience of the world's largest computer company.
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/technology/index.html?todaysheadline">MORE TECHNOLOGY NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>POLITICS</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/business/18BUSH.html?todaysheadlines">Congress Rebuffed on Energy Documents</a></b><br>
The White House refused to turn over documents demanded by Congress as part of an inquiry into workings of the administration's energy task force.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/politics/18ETHI.html?todaysheadlines">Bush's Advisers on Ethics Discuss Human Cloning</a></b><br>
President Bush's newly appointed Council on Bioethics met for the first time and plunged into the thorny issue of human cloning.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/politics/18HART.html?todaysheadlines">Reopening of Senate Building Is Delayed</a></b><br>
One day after officials declared the Hart Senate Office Building free of anthrax, they closed the building indefinitely.
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/politics/index.html?todaysheadline">MORE POLITICS NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>SPORTS</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/sports/football/18NFLL.html?todaysheadlines">N.F.L. Warns Parcells About Tampering</a></b><br>
The N.F.L., concerned that the Buccaneers and Bill Parcells may be skirting league tampering rules, issued a warning to both parties that could subject them to punishment.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/sports/ncaabasketball/18DUKE.html?todaysheadlines">Williams Leads No. 1 Duke Over Maryland</a></b><br>
Jason Williams sank 3-pointers and made twisting shots near the basket, dazzling and dazing the Terrapins and helping Duke coast to victory.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/sports/tennis/18TENN.html?todaysheadlines">Venus Williams Overcomes Slow Start</a></b><br>
Venus Williams lost the first set in a hurry, but found her confidence and rhythm to top Slovakian teenager Daniela Hantuchova at the Australian Open.
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/sports/index.html?todaysheadline">MORE SPORTS NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>ARTS</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/arts/television/18ROOT.html?todaysheadlines">Both Timeless and Timely: 'Roots' at Quarter-Century</a></b><br>
Much has changed since the mini-series "Roots" aired in 1997, yet it remains a gripping tale of individuals whose  stories became an emblematic historical saga.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/arts/design/18KIMM.html?todaysheadlines">The Body Imperfect, 50 Years Ago and Today</a></b><br>
There are two shows of Irving Penn nudes in town: "Dancer" at the Whitney Museum of American Art and "Earthy Bodies" at the Metropolitan Museum of Art.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/arts/design/18SMIT.html?todaysheadlines">In the Orbit of Funk and Hip-Hop</a></b><br>
"One Planet Under a  Groove: Hip-Hop and Contemporary Art"  at the Bronx Museum of the Arts explores the interplay between rap music,   hip-hop culture and contemporary art
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/arts/index.html?todaysheadline">MORE ARTS NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>NY REGION</b></font><br>




<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/nyregion/18RELE.html?todaysheadlines">Grateful Egyptian Is Freed as U.S. Terror Case Fizzles</a></b><br>
Abdallah Higazy was released because a private pilot told officials an aviation radio in Mr. Higazy's possession was his.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/nyregion/18SITE.html?todaysheadlines">Contractors at Ground Zero Denied Insurance for Cleanup</a></b><br>
Contracting companies excavating ground zero are working with energy and devotion, but without insurance.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/nyregion/18JOBS.html?todaysheadlines">Unemployment Rate Rises, Again, in Wake of Attack</a></b><br>
Although the unemployment rate in New York City shot up last month to 7.4 percent, economists say the jump was not as bad as it could have been.
<P>
</font>













<p>
<a href="http://www.nytimes.com/pages/nyregion/index.html?todaysheadline">MORE NY REGION NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">

<font size="2" color="#990000"><b>OP-ED </b></font><br>






<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/opinion/18KRUG.html?todaysheadlines">A System Corrupted</a></b>
<br>
By PAUL KRUGMAN
<br>
The Enron debacle is not just the story of a company that failed; it is the story of a   system that failed.
<P>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/opinion/18KRIS.html?todaysheadlines">The Chip on China's Shoulder</a></b>
<br>
By NICHOLAS D. KRISTOF
<br>
Openness and political   maturity in China is accompanied by   a dangerous sign of political immaturity: a booming, aggrieved, chip-on-the-shoulder nationalism.
<P>
</font>


<font  face="times new roman"><b><a href="http://www.nytimes.com/2002/01/18/opinion/18PRIC.html?todaysheadlines">The Damaged Spirit of the Sept. 11 Fund</a></b>
<br>
By FRED PRICE and MITCH KLEINMAN
<br>
The rules of the Victims Compensation Fund protect airlines and others from being sued while denying victims' families fair compensation.
<P>
</font>









<p>
<a href="http://www.nytimes.com/pages/opinion/index.html?todaysheadline">MORE OP-ED  NEWS</a>
<br>

<!-- Inline Direct Ad begins -->

<!-- Inline Direct Ad ends -->

<hr size="1">


<font face="verdana, arial, helvetica, sans-serif" size="1">
<b>About This E-Mail<br>
</b>You received these headlines because you requested The New York Times
Direct e-mail service. To sign up for other newsletters, cancel delivery,
change delivery options or your e-mail address, see
<a href="http://www.nytimes.com/email">http://www.nytimes.com/email</a>.&nbsp;&nbsp;
Check or un-check the headlines you would like to receive or cancel and
remember to go to the bottom of the page and click on &quot;Save
Selections.&quot;&nbsp; Suggestions and feedback are welcome at
<a href="mailto:feedback@nytimes.com">feedback@nytimes.com</a>.

<p>
Please include the following ID number when writing to
<a href="mailto:feedback@nytimes.com">feedback@nytimes.com</a> 
so that we can track any reports of problems: 577749
<P>
<b>How to Advertise</b><br>

For information on advertising in e-mail newsletters or other advertising
opportunities with NYTimes.com, contact <a href="mailto:onlinesales@nytimes.com">onlinesales@nytimes.com</a> or
visit our <a href="http://www.nytimes.com/adinfo">online media kit</a>.

<table width="600" border="0" align="left">
<tr align="left" valign="bottom"><td  align="left"><font face="Times New Roman, Times" size="2"><b><a href="http://www.nytimes.com/info/help/copyright.html">Copyright 2002 The New York Times Company</a></b></font></td>
<td  valign="bottom" ><font face="Times New Roman, Times" size="2"></td>
</tr>
</table>
<!-- Content ends -->
<BR>
</TD>
</TR>
</TABLE>
<IMG SRC="http://ads.nytimes.com/RealMedia/ads/adstream_nx.cgi/email.nytimes.com/todaysheadlines/html@Bottom1!Bottom1" height="0" width="0">
</BODY>
</HTML>