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   February 2, 2002   QUOTE OF THE DAY "Terrorism really flourishes in area=
s of poverty, despair and hopelessness, where people see no future."  COLIN=
 L. POWELL, secretary of state.   NATIONAL Idaho Legislature Repeals Term L=
imit 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 i=
n New Orleans are having a hard time bringing attention to the primary elec=
tion on Saturday - a day before the Superbowl.   Winter Storm Moves East, C=
utting Power to Thousands  A storm blamed for at least 20 deaths blew a dou=
ble-barreled blast of snow and ice across the Northeast on Friday.     MORE=
 NATIONAL NEWS    Advertisement    Sign up now for DealBook for Breaking Ne=
ws and Market-Moving Intelligence  Your source for daily briefings on the l=
atest and most comprehensive news about market-moving mergers and acquisiti=
ons, IPOs, private equity  transactions, venture capital deals and Wall Str=
eet maneuverings, all delivered before the market's  opening bell.  Edited =
by Andrew Ross Sorkin.  Sign up now!   [IMAGE]   INTERNATIONAL Reservists B=
alk at Occupation, Roiling Israel  More than 100 Israeli Army reservists si=
gned a statement published on Friday saying they would refuse to continue s=
erving 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 Bu=
sh administrations policies on terrorism and Argentina at the World Economi=
c Forum on Friday.   Most Recent E-Mail on Seized Reporter Sends Grim Messa=
ge  The fate of Daniel Pearl remained unclear on Friday after a ransom dema=
nd was followed hours later by an e-mail message saying he had been execute=
d.     MORE INTERNATIONAL NEWS    BUSINESS White House Told to Save Enron R=
ecords  The Justice Department on Friday night directed the White House to =
preserve records of contacts between government officials and Enron executi=
ves.   Son and Sister of Enron Chief Secured Deals  Enron had extensive bus=
iness dealings with companies controlled by Lay family members and investme=
nts in companies in which family members had substantial holdings.   Econom=
y Shows Healing Signs as Recession Is Still Wheezing  The pace of layoffs c=
learly slowed last month, the government said, adding to growing evidence t=
hat 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 A=
gainst Intel  The European Commission is about to drop its antitrust invest=
igation of the Intel Corporation, a person close to the investigation said.=
   As WorldCom Stock Falls, a Debt Rises  Bernard J. Ebbers, the man who bu=
ilt 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 t=
he Web site of the World Economic Forum, organizers of the gathering confir=
med.     MORE TECHNOLOGY NEWS    POLITICS Bush Sees Big Rise in Military Bu=
dget for Next 5 Years  The Bush administration will call for increasing the=
 Pentagon's yearly budget by $120 billion over the next five years.   Budge=
t Would Cut Medicaid Payments  President Bush's budget would rein in the gr=
owth of Medicaid by reducing payments to public hospitals.   New Leader Pic=
ked 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  Fro=
m high school through college and the pros, St. Louis defensive end Grant W=
istrom has always had a parent in the stands to watch him play.   Knicks' S=
treak 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 int=
o 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 a=
nd John Weidman, the creators of the musical "Gold!," have settled their la=
wsuit against the producer Scott Rudin, clearing the way for future product=
ions of the oft-delayed show.   Man Who Would Be God: Giving Robots Life  S=
teve 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 th=
at thinks, feels and learns.   An Outsider Teaches Japan About Itself  It i=
s rare that a foreign-written book becomes critical in explaining another c=
ountry's history to its own people. But John W. Dower's "Embracing Defeat" =
is such a work.     MORE ARTS NEWS    NY REGION Marketing Patriotism, Compa=
nies Blur Lines of Charity and Profit  Companies that align themselves with=
 Sept. 11 charities can not always guarantee that monies donated will actua=
lly benefit the victims.   City College, the Faded Jewel of CUNY, Is Recove=
ring Its Luster  City College is shaking an old underachieving academic sti=
gma that stuck to it for decades.   Pataki Urges Reassessment of Safety Pla=
n  Gov. George E. Pataki called on the federal government to reassess its g=
uidelines for dealing with an emergency at the Indian Point nuclear power p=
lant.     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 rul=
es while the unconnected and uninitiated pick up the bill.   Public Educati=
on in Private Hands   By WILLIAM C. KASHATUS  Philadelphia, the cradle of A=
merican liberty, now finds itself in a situation that generations of its ed=
ucational reformers never would have anticipated.   Forgotten Prisoners of =
War   By JENNIFER LEANING and JOHN HEFFERNAN  Some 3,500 Afghan and Pakista=
ni Taliban men are being held in dangerously squalid conditions in the Sheb=
arghan prison in northern Afghanistan.     MORE OP-ED  NEWS    About This E=
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