Nation digest 10/19/02

Two F-18s crash off West Coast; four missing

POINT SUR, Calif. -- Two Navy fighter jets crashed into the Pacific off the California coast during a training mission Friday, military officials said. All four crew members were missing.

The F/A-18-F Super Hornets crashed 80 miles southwest of Monterey during an exercise with six other aircraft, the Navy said. Military aircraft and a commercial fishing vessel were at the site searching for the aviators.

At the Pentagon, Navy spokesman Cmdr. William Fenick said he did not know whether the planes had collided.

New Jersey police superintendent resigns

TRENTON, N.J. -- The head of the New Jersey State Police, accused of improper conduct and criticized for his criminal record, resigned Friday after only seven months on the job.

Joseph Santiago, 54, is the third superintendent to leave in four years, forcing the governor to find a replacement for an agency under a federal court order to end racial profiling.

In his resignation letter, Santiago said the "current climate" prevented him from focusing on reforming the organization. A state police spokesman said Santiago was unavailable for comment.

Attorney General David Samson is investigating whether Santiago improperly ordered subordinates to turn over all investigative files pertaining to him and his top staff.

Trade deficit hits record $38.5 billion in August

WASHINGTON -- The U.S. trade deficit swelled to a record $38.5 billion in August, reflecting Americans' hearty appetite for foreign-made clothes, cars and TVs.

The Commerce Department reported Friday that the trade deficit was a sizable 9.7 percent higher than the $35.1 billion trade gap reported for July.

Imports of goods and services rose by 2 percent in August from the previous month to $120.3 billion, the highest level in 17 months. Worries about a strike by West Coast dock workers probably speeded up imports and contributed to the rise, economists say.

Shuttle returns, ending 'incredible adventure'

CAPE CANAVERAL, Fla. -- Space shuttle Atlantis and its crew of six returned from the international space station Friday, ending a 4.5 million-mile voyage that accomplished major construction work.

"What an incredible adventure we've been on," commander Jeffrey Ashby said.

During their 11-day mission, Ashby and his crew successfully outfitted the space station with a $390 million girder that is part of a framework that will grow over the next 1 1/2 years and sprout power-generating solar wings.

Court clears way for drug tests in welfare program

LANSING, Mich. -- A federal appeals court Friday cleared the way for Michigan to test welfare recipients for drug use.

U.S. District Court Judge Victoria Roberts halted a pilot drug-testing program in 1999 after a group of welfare recipients and the American Civil Liberties Union of Michigan argued that the testing is unconstitutional.

The 6th U.S. Circuit Court of Appeals reversed Roberts' decision Friday, saying the testing program is based on a legitimate need to ensure that public money is not used for illegal purposes.

Under the rules of the pilot program, the drug test results wouldn't affect access to food stamps and police wouldn't be notified, but applicants who tested positive could gradually lose benefits if they failed to go to treatment.

United parent loses $889 million in third quarter

CHICAGO -- The parent company of ailing United Airlines reported an $889 million third-quarter loss Friday, its second-biggest setback ever, reflecting the continued bleak environment for U.S. carriers.

It was the ninth consecutive quarterly loss for UAL Corp., which is negotiating with its unions to shed billions of dollars in costs in a bid to avoid filing for bankruptcy.

Its only worse quarterly result was a $1.16 billion loss in last year's third quarter, when the terrorist attacks set off the industry's current tailspin.

-- From wire reports