CHARGES DROPPED . Against KATRINA LEUNG , 50, informant accused of stealing national security documents from her FBI agent lover James Smith; in Los Angeles. Prosecutors alleged that Leung, who was recruited to spy on China in 1982 but was suspected of becoming a double-agent, took classified papers from Smith's briefcase; her lawyers denied the accusations. A federal judge dismissed the charges, saying prosecutors deprived her of due process by limiting access to Smith, a key witness.

STEPPING DOWN. JAMES WOLFENSOHN , 71, after 10 years as president of the World Bank; in Washington, D.C. Over two terms, the charismatic former...

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