Arizona Republic from Phoenix, Arizona • Page 1

SPORTS: Bonds hits 68th homer; moves within 2 of record MfflMA HEPUB SATURDAY SEPTEMBER 29, 2001 azfcentralcom 50 CENTS LIC liiiiiiijss lion fen taroir ce Finances slowing airport's expansion mm Thl 1 Khalid Almihdhar Believed to have roomed with Hanjour and Aihazmi in San Diego. He and Aihazmi also may have been in Arizona for flight training. Nawaf Aihazmi His car was found at Dulles International Airport outside Washington with a cashier's check made out to an Arizona flight school, diagrams of a 757 cockpit box cutters Hani Hanjour Believed to have lived in Phoenix and Mesa. Trained at CRM Aviation at Scottsdale Air Park and used a flight simulator at Sawyer Aviation at Sky Harbor International Airport May have lived in San Diego. and maps of New York and Washington.

He is believed to have roomed with Hanjour in San Diego. Others involved Essam Al-Ridi Ariwsa cwnectraa: An Egyptian pilot, he came to Tucson in 1993 to buy a plane for bin Laden's al-Qaida network. Al-Ridi later defected from the bin Laden organization and became a government witness. He testified in the trial of four men suspected of Sv bombing the U.S. embassies in Kenya and Tanzania in 1998.

Phoenix SUNNY GOOD MORNING INSIDE: Petsmart goes upscale with a doggie boutique. Business, Dl, behind Smart Living. a VALLEY STATE Missing girl dead, mom and boyfriend arrested The mother of a 20-month-old girl reported missing Wednesday and her boyfriend are arrested after the tot's body is found. Valley State, Bl. INSIDE Km m.

1 Chore goes high-tech The buttons on washing machines aren't just hot, -cold and warm any more. AZ Home, AM. Ayer Hoy More Hispanic Heritage Month letters from Latinos whose family histories in Arizona predate 1949. Smart Living, EL Also: The White House and top lawmakers are poised to boost next year's spending bills to $686 billion. A18.

Market report: Dow industrials 166.14; NYSE 11.54; Nasdaq 38.09; 22.33. Business, Dl. CLASSIFIEDS Today, there are 9,016 ads, including 4,961 for autos and 1,526 for homes. Look for the color-coded index on the Classified cover, CLL behind Smart Living. INDEX Today's Movie Listings are in Smart Living, E4.

If 1 WadihEI-Hage Aiew W'W-r'. wi Lived in Tucson during the early 1990s. rf A former bin Laden i lieutenant, El-Hage arranged for -j the purchase of a used jet Pentagon deaths: 189 believed to be dead, including the 64 aboard the American Airlines Flight 77. I May have played la larger role i Lotfi Raissi Lived in Phoenix from 1996 to 2001 and may A have worked for a flight school at Deer Valley Airport. Arrested in London as possible mid-level figure in al-Qaida who taught four hijackers how to fly.

James Abundis, Eric BakerThe Arizona Republic Inside AMERICA ON ALERT, A2-A12 Cleaning up the rubble at the World Trade Center could take a year and cost $7 billion. A4. Investigators find step-by-step instructions linking the hijackers. Also, excerpts from the documents. A7.

Taliban call for a summit of the world's Muslim nations. A8. Heightened security at the U.S.-Mexican border has reduced the flow of illegal drugs and illegal immigration. A9. Arizona notebook.

B3. U.S. Air Force base in 1993. He is now in prison in connection bombing of the U.S. in Tanzania.

"I'm convinced the FBI is operating under the assumption that Arizona was host to an al-Qaida cell." Jack Williams, professor of law at Georgia State University By Dennis Wagner and Tom Zoellner The Arizona Republic Arizona appears to have been the home of a "sleeper cell" of Osama bin Laden's worldwide terrorist organization, with a select group of operatives living quietly in bland apartment complexes and obtaining flight training in preparation for the Sept. 11 attack. The organization's known history in the state goes back nine years, and scholars say the activities of at least three part-time Arizona residents fit the pattern of the al-Qaida terrorist network. "We can only speculate at this point, but I'm convinced the FBI is operating under the assumption that Arizona was host to an al-Qaida cell," said Jack Williams, a professor of law at Georgia State University in Atlanta, who has studied the network's financing methods. Among the suspects: Lotfi Raissi, a one-time resident of the Wickertree Apartments in north Phoenix, was arrested in England this week.

British prosecutors say the Algerian pilot is a mid-level player in the al-Qaida organization who gave flight training to four of the terrorists in Arizona. He is the first person publicly accused of helping the hijackers prepare for the attacks. Hani Hanjour, identified by the FBI as a hijacker who died when American Airlines Flight 77 crashed into the Pentagon, lived in Tucson and Phoenix and took flight training courses in Scottsdale. Authorities See ARIZONA Page A6 U.S., British elite troops scouting for bin Laden Republic news services WASHINGTON President Bush said Friday that the United States is "in hot pursuit" of the terrorist network, that attacked the United States, as U.S. officials confirmed that Ameri- can and British commandos were conducting scouting missions inside Afghanistan.

Without commenting on reports that allied commandos already were operating inside Afghanistan, Bush told reporters that the U.S.-led campaign against terrorism would be "fought on a variety of fronts." "There may or may not be a conventional component to it," the president said at a White House photo session with Jordan's King Abdullah II. "Sometimes people will be able to see what we do on the television screens; other times, the American people won't be able to see what we're doing," Bush added. The president went on to say, "But make no mistake See U.S. Page A2 aztentralcom Read our special multimedia report, Attack on America, at terror.azcentral.com. By Elvia Diaz The Arizona Republic Contracts have been postponed and work is stopping on most of Phoenix Sky Harbor International Airport's $1.2 billion expansion, designed to handle decades of population growth.

Airport officials say they likely will face a substantial loss of revenues in the aftermath of the Sept. 11 terrorist attacks. "It's a necessary step," said airport director David Krietor, noting he is evaluating the immediate financial effects of the attacks. Among the most notable projects on hold are a $200 million rental car structure, a $35 million economy garage that would add 3,500 parking spaces, and preliminary work on a $650 million megatermi-nal to replace Terminals 2 and 3. For now, work will continue only on projects that are 80 percent completed.

Those include runway improvements and a parking garage that will add 3,100 spaces at Terminal 4, airport spokeswoman Suzanne Luber said. She predicted the airport won't carry out most of the $553.5 million in construction scheduled for fiscal year 2001-02. But she added that she does not anticipate layoffs among airport employees because private firms do most of the construction. The delays aren't expected to affect plans for a fourth runway, which probably wouldn't have been ready for another 15 years anyway, authorities said. Sky Harbor sought the ex-See AIRPORT Page A2 azferrtralcom Find out about the delayed airport expansion and new security measures at Sky Harbor at airport.azcentral.com.

Dow ends quarter with gain Chicago Tribune A truly horrific third-quarter came to a mercifully upbeat close Friday, even as two major Wall Street indexes posted their worst quarterly losses in 14 years, The Dow Jones industrial average closed up 166.14, at 8847.56, capping a week that saw the blue-chip barometer gain 611.75, regaining nearly nearly half the record 1,369 points lost last week, when stocks plummeted after a four-day market shutdown in the wake of the Sept. 11 terrorist attacks. The Nasdaq composite index was up 38.09, at 1498.80, leaving it with a gain of 5.3 percent for the week. The index rose 22.33, to 1040.94, finishing the week up 7.8 percent. But for the quarter that ended Friday, the Nasdaq lost 30.6 percent, the Dow 15.8 percent, the 500 15 percent.

The losses were the worst for the Dow and the since the 1987 fourth quarter, which included the record crash of Oct. 19 that year. "It's tenuously holding on the upside," said Jon Brorson, director of equities for Northern Trust Co. Still, it remains a very reactionary market, he said. 4- tl i iff 1 from a Tucson in federal with the Embassy Photos from FBI, Associated Press; Graphic by -r K-' I 1 Alison WoodworthFort Worth Star-Telegram Zach Robbins and his son, Zeb, on Friday look at the 5,040 white crosses erected in a field in Guthrie, in memorial to the victims of terrorist attacks on the Pentagon and the World Trade Center.

The Robbinses are members of Guthrie Bible Baptist Church, which created the memorial. Story, A12. warns Americans limits on freedom Astrology E2 Opinions. Autos AC1 People E2 Classified CL1 Puzzles E6.7 Comics E6.CL6 Real Estate. AH1 Dear Abby E9 Sports TV C2 Golf C16 Stocks D4 Lottery B2 ElO 64 Weather B8 O'Connor to expect New York Times NEW YORK Describing herself as "still tearful" after viewing the World Trade Center site, Justice Sandra Day O'Connor told a law school audience on Friday that as part of the country's response to terrorism, "we're likely to experience more restrictions on our personal freedom than has ever been the case in our country." Lawyers have a special duty to work to maintain the rule of law in the face of terrorism, she said, adding in a quotation from Margaret gal consequences.

Her brief remarks emphasized the need to proceed with care in the aftermath of a national trauma that she said "will cause us to re-examine some of our laws pertaining to criminal surveillance, wiretapping, immigration and so on." Lawyers would play an important role in striking the right balance, she said, adding, "Lawyers and academics will help define how to maintain a fair and a just society with a strong rule of law at a time when many are more concerned with safety and a measure of vengeance." In a talk Friday, Sandra Day O'Connor was the first justice to speak out on the terror attacks. AW Thatcher, the former British prime minister: "Where law ends, tyranny begins." O'Connor, who spoke at New York University, was the first Supreme Court justice to speak publicly about the event and its possible le 112th year No. 134 Gannett Newspaper Copyright 2001, The Arizona Republic News tips: (602) 444-2466 Circulation: (602) 4441000 Classified: (602) 444-2424 Pressline: (602) 271-5656 DAILY Introducing TIieAll- r-Iew2002 Jllilllltl Receive a Family Fun Vacation With Any 135 Test Drivel It's here and ready for your personal test drive today! iNFiNrn of SCOTTSDALE 6910 E. McDowell Road 1-888-437-7692 A mine juppiiv) idM.