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   February 2, 2002   QUOTE OF THE DAY "Terrorism really flourishes in areas of poverty, despair and hopelessness, where people see no future."  COLIN L. POWELL, secretary of state.   NATIONAL Idaho Legislature Repeals Term Limit Law  The nation's most Republican Legislature overrode Republican Gov. Dirk Kempthorne's veto of a repeal on the state's term limit legislation.   New Orleans, Amid Revelry, Makes Time to Vote Today  Mayoral candidates in New Orleans are having a hard time bringing attention to the primary election on Saturday - a day before the Superbowl.   Winter Storm Moves East, Cutting Power to Thousands  A storm blamed for at least 20 deaths blew a double-barreled blast of snow and ice across the Northeast on Friday.     MORE NATIONAL NEWS    Advertisement    Sign up now for DealBook for Breaking News and Market-Moving Intelligence  Your source for daily briefings on the latest and most comprehensive news about market-moving mergers and acquisitions, IPOs, private equity  transactions, venture capital deals and Wall Street maneuverings, all delivered before the market's  opening bell.  Edited by Andrew Ross Sorkin.  Sign up now!   [IMAGE]   INTERNATIONAL Reservists Balk at Occupation, Roiling Israel  More than 100 Israeli Army reservists signed a statement published on Friday saying they would refuse to continue serving in the West Bank and Gaza Strip.   2 Top Officials Offer Stern Talk on U.S. Policy  Paul H. O'Neill and Colin L. Powell bluntly defended the Bush administrations policies on terrorism and Argentina at the World Economic Forum on Friday.   Most Recent E-Mail on Seized Reporter Sends Grim Message  The fate of Daniel Pearl remained unclear on Friday after a ransom demand was followed hours later by an e-mail message saying he had been executed.     MORE INTERNATIONAL NEWS    BUSINESS White House Told to Save Enron Records  The Justice Department on Friday night directed the White House to preserve records of contacts between government officials and Enron executives.   Son and Sister of Enron Chief Secured Deals  Enron had extensive business dealings with companies controlled by Lay family members and investments in companies in which family members had substantial holdings.   Economy Shows Healing Signs as Recession Is Still Wheezing  The pace of layoffs clearly slowed last month, the government said, adding to growing evidence that the recession that began in March could be drawing to a close.     MORE BUSINESS NEWS    TECHNOLOGY Europe Is Said to Be on Verge of Ending Case Against Intel  The European Commission is about to drop its antitrust investigation of the Intel Corporation, a person close to the investigation said.   As WorldCom Stock Falls, a Debt Rises  Bernard J. Ebbers, the man who built WorldCom into a giant company, now owes at least $92 million more than his stock in the company is worth.   Hackers Hit Global Leaders' Summit  An invisible cyber assault has cut off access for the second day running to the Web site of the World Economic Forum, organizers of the gathering confirmed.     MORE TECHNOLOGY NEWS    POLITICS Bush Sees Big Rise in Military Budget for Next 5 Years  The Bush administration will call for increasing the Pentagon's yearly budget by $120 billion over the next five years.   Budget Would Cut Medicaid Payments  President Bush's budget would rein in the growth of Medicaid by reducing payments to public hospitals.   New Leader Picked for Religion-Based Initiative  Jim Towey was named by President Bush to lead his effort to provide federal money for religious charities.     MORE POLITICS NEWS    SPORTS Rams' Wistrom Has Family Swept Up in Football  From high school through college and the pros, St. Louis defensive end Grant Wistrom has always had a parent in the stands to watch him play.   Knicks' Streak and Strength Run Out  After losing Marcus Camby five minutes into the game, the Knicks rallied from a 13-point halftime deficit only to fall to the stronger and smarter Pacers.   Rookie in Lead at Pebble Beach  With his seven-under-par 65, Pat Perez will take an unexpected four-stroke lead into the third round of the AT&T Pebble Beach National Pro-Am.     MORE SPORTS NEWS    ARTS Accord in Legal War Over Sondheim Musical  Stephen Sondheim and John Weidman, the creators of the musical "Gold!," have settled their lawsuit against the producer Scott Rudin, clearing the way for future productions of the oft-delayed show.   Man Who Would Be God: Giving Robots Life  Steve Grand, the author of "Creation: Life and How to Make It," is searching for the Holy Grail of artificial intelligence, a way to build a   robot that thinks, feels and learns.   An Outsider Teaches Japan About Itself  It is rare that a foreign-written book becomes critical in explaining another country's history to its own people. But John W. Dower's "Embracing Defeat" is such a work.     MORE ARTS NEWS    NY REGION Marketing Patriotism, Companies Blur Lines of Charity and Profit  Companies that align themselves with Sept. 11 charities can not always guarantee that monies donated will actually benefit the victims.   City College, the Faded Jewel of CUNY, Is Recovering Its Luster  City College is shaking an old underachieving academic stigma that stuck to it for decades.   Pataki Urges Reassessment of Safety Plan  Gov. George E. Pataki called on the federal government to reassess its guidelines for dealing with an emergency at the Indian Point nuclear power plant.     MORE NY REGION NEWS    OP-ED  State of the Enron   By FRANK RICH  Enron may be as much a cultural scandal as it is a business and political scandal. It reveals a world in which insiders get to play by one set of rules while the unconnected and uninitiated pick up the bill.   Public Education in Private Hands   By WILLIAM C. KASHATUS  Philadelphia, the cradle of American liberty, now finds itself in a situation that generations of its educational reformers never would have anticipated.   Forgotten Prisoners of War   By JENNIFER LEANING and JOHN HEFFERNAN  Some 3,500 Afghan and Pakistani Taliban men are being held in dangerously squalid conditions in the Shebarghan prison in northern Afghanistan.     MORE OP-ED  NEWS    About This E-Mail 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 http://www.nytimes.com/email .   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 "Save Selections."  Suggestions and feedback are welcome at feedback@nytimes.com .   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