CMYK Nxxx,2017-02-16,A,001,Bs-4C,E2

Late Edition
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VOL. CLXVI . . . No. 57,510 2017 The New York Times Company NEW YORK, THURSDAY, FEBRUARY 16, 2017 $2.50

PRESIDENT WANTS U.S. WONT PRESS

ALLY TO REVIEW A TWO-STATE PATH
U.S. SPY AGENCIES TO MIDEAST PEACE
ALARM FROM OFFICIALS DISMISSING PAST POLICY

Fears of a Reduction in During Netanyahu Visit,

Data Contradicting Trump Vows Effort to
Trumps Views Restart Talks

By JAMES RISEN By PETER BAKER

and MATTHEW ROSENBERG
WASHINGTON President
Trump plans to assign a New York
billionaire to lead a broad review
of American intelligence agen-
cies, according to administration
officials, an effort that members of
the intelligence community fear
could curtail their independence
and reduce the flow of information
that contradicts the presidents
worldview.
The possible role for Stephen A.
Feinberg, a co-founder of Cerber-
us Capital Management, has met
fierce resistance among intelli-
gence officials already on edge be-
cause of the criticism the intelli-
gence community has received
from Mr. Trump during the cam-
paign and since he became presi-
dent. On Wednesday, Mr. Trump
blamed leaks from the intelli-
gence community for the depar-
ture of Michael T. Flynn, his na-
tional security adviser, whose res-
ignation he requested.
There has been no announce-
ment of Mr. Feinbergs job, which
would be based in the White
House, but he recently told his
companys shareholders that he is
in discussions to join the Trump
administration. He is a member of
Mr. Trumps economic advisory
council.
Mr. Feinberg, who has close ties
to Stephen K. Bannon, Mr.
Trumps chief strategist, and Jar-
ed Kushner, the presidents son-
in-law, declined to comment on his
possible position. The White
House, which is still working out
the details of the intelligence re-
view, also would not comment.
Bringing Mr. Feinberg into the
administration to conduct the re-
view is seen as a way of injecting a
Trump loyalist into a world the
White House views with suspi-
cion. But top intelligence officials
fear that Mr. Feinberg is being
groomed for a high position in one
of the intelligence agencies.
Mr. Bannon and Mr. Kushner,
according to current and former
intelligence officials and Republi-
can lawmakers, had at one point
considered Mr. Feinberg for either
director of national intelligence or
Continued on Page A16
President Trump hosted Prime Minister Benjamin Netanyahu of Israel at the White House for the first time on Wednesday.
Love for Leaks Labor Choice Drops Out After Republicans Balk
Quickly Faded
After Election foodWASHINGTON
executive Andrew F. Puzder
By MICHAEL D. SHEAR
WASHINGTON As a candi-
date for president, Donald J.
Trump embraced the hackers who
had leaked Hillary Clintons
emails to the press, declaring at a
rally in Pennsylvania, I love
WikiLeaks!
To the cheering throngs that
night, Mr. Trump marveled that
nothing is secret today when you
talk about the internet. The leak-
ers, he said, had performed a pub-
lic service by revealing what he
called a scandal with no rival in
United States history.
Now, after less than four weeks
in the Oval Office, President
Trump has changed his mind.
At a news conference on
Wednesday and in a series of Twit-
ter postings earlier in the day, Mr.
Trump angrily accused intelli-
gence agencies of illegally leaking
information about Michael T.
Flynn, his former national securi-
ty adviser, who resigned after re-
ports that he had lied about con-
versations with the Russian am-
bassador.
Its a criminal action, criminal
Continued on Page A17
tional Review and Breitbart, had expressed concerns were John
also expressed resistance, zeroing Thune of South Dakota, Rob Port-
By ALAN RAPPEPORT
The fast-
in on Mr. Puzders employment of man of Ohio, Thom Tillis of North
an undocumented immigrant as Carolina, Susan Collins of Maine,
withdrew his nomination to be la-
bor secretary on Wednesday as
Republican senators turned
sharply against him, the latest de-
feat for a White House besieged
by infighting and struggling for
traction even with a Republican-
controlled Congress.
The toppling of one of President
Trumps cabinet picks was a vic-
tory for Democrats, unions and
liberal groups that had been at-
tacking Mr. Puzders business
record and his character since he
was chosen in December. Conser-
vative publications, including Na-
Repair Then Repeal: Trumps Health Market Plan
By ROBERT PEAR
WASHINGTON The Trump
administration proposed new
rules on Wednesday to stabilize
health insurance markets roiled
by efforts to repeal the Affordable
Care Act, by big increases in pre-
miums and by the exodus of major
insurers.
The move came a day after Hu-
mana announced that, starting
next year, it would completely
his housekeeper.
And records from his 1988 di-
vorce, disseminated Tuesday
night by opponents, resurfaced
spousal abuse accusations that
made some Republican senators
uncomfortable. His ex-wife had
recanted those accusations, but
senators from both parties pri-
vately screened a videotape from
The Oprah Winfrey Show that
featured her laying out the
charges while in disguise.
The opposition from Republi-
cans was broad, and the reasons
varied. Among the senators who
withdraw from the public market-
places created by former Presi-
dent Barack Obamas signature
domestic achievement.
The proposed rules, backed by
insurance companies, would
tighten certain enrollment
procedures and cut the health
laws open enrollment period in
half, in hopes that a smaller but
healthier consumer base will put
the marketplaces on sounder fi-
nancial footing and attract more
STEPHEN CROWLEY/THE NEW YORK TIMES
Johnny Isakson of Georgia, Lisa
Murkowski of Alaska and Tim
Continued on Page A18
DREW ANGERER/GETTY IMAGES
Andrew F. Puzders withdraw-
al was a victory for Democrats.
insurance companies in states
with limited choices.
But part of the markets prob-
lem stems from President
Trumps determination to repeal
the health law while the White
House and Congress struggle to
find a politically acceptable re-
placement. Even as the Depart-
ment of Health and Human
Services worked to answer insur-
ance company concerns, the In-
Continued on Page A13
and MARK LANDLER
WASHINGTON President
Trump jettisoned two decades of
diplomatic orthodoxy on Wednes-
day by declaring that the United
States would no longer insist on
the creation of a Palestinian state
as part of a peace accord between
Israel and the Palestinians.
Hosting Prime Minister Ben-
jamin Netanyahu of Israel for the
first time since becoming presi-
dent, Mr. Trump promised a con-
certed effort to bring the two sides
together, suggesting a regional ef-
fort involving an array of Arab na-
tions. But he said that he was flexi-
ble about how an agreement
would look and that he would not
be bound by past assumptions.
Im looking at two-state and
one-state formulations, Mr.
Trump said during a White House
news conference with Mr. Netan-
yahu. I like the one that both par-
ties like. Im very happy with the
one that both parties like. I can
live with either one.
At the same time, Mr. Trump
urged Mr. Netanyahu to tempo-
rarily stop new housing construc-
tion in the West Bank while he
pursues a deal, echoing a position
past presidents have taken. Id
like to see you hold back on settle-
ments for a little bit, he told Mr.
Netanyahu.
Mr. Trumps position on a two-
state solution discarded a policy
that has underpinned Americas
role in Middle East peacemaking
since the Clinton administration
and raised a host of thorny ques-
tions.
The Palestinians are highly un-
likely to accept anything short of a
sovereign state, and a single Is-
raeli state encompassing the
Palestinians would either leave
them as second-class citizens or
would no longer be majority Jew-
ish, given the growth rate of the
Continued on Page A14
For Settlers, Optimism
David M. Friedman, the
nominee as envoy to Israel, has
close ties to an Israeli community
deep in the West Bank. Page A14.

6 Months After Olympics, a Crumbling Legacy

By ANNA JEAN KAISER
RIO DE JANEIRO It is not
uncommon for the Olympics to
leave behind some unneeded fa-
cilities. Rio, however, is experienc-
ing something exceptional: Less
than six months after the Summer
Games ended, the host citys
Olympic legacy is decaying
rapidly.
Empty Olympic buildings
abound, puncturing any uplifting
buzz from the competitions last
summer. At the Olympic Park,
some stadium entrances are
boarded up, and screws are scat-
PILAR OLIVARES/REUTERS
tered on the ground. The handball
The Olympic Aquatics Stadium, used during the Games in August. Such deserted buildings now arena is barricaded with metal
abound in Rio de Janeiro. They came, they robbed, and they said goodbye, one resident said. bars. The broadcast center re-
Rio Is Latest Case of
Promises Unfulfilled
mains half disassembled. The
warm-up pool is decorated with
piles of dirt and puddles.
Deodoro, a neighborhood in
Rios poor periphery, has the sec-
ond-largest cluster of Olympic
sites. The canoe slalom course
was to be converted into a giant
public swimming pool. It closed to
the public in December. Today,
residents fill plastic pools a few
hundred feet away.
The government put sugar in
our mouths and took it out before
we could swallow, Luciana
Oliveira Pimentel, a social worker
from Deodoro, said as her children
played in a plastic pool. Once the
Olympics ended, they turned their
backs on us.
Olympic officials and local
organizers often boast about the
legacy of the Games the re-
sidual benefits that a city and
country will experience long after
the competitions end. Those pro-
jections are often met with skepti-
cism by the public and by inde-
pendent economists, who argue
that Olympic bids are built on
wasted public money. Rio has
quickly become the latest, and
perhaps the most striking, case of
Continued on Page A8

INTERNATIONAL A4-11 NATIONAL A12-21 SPORTSTHURSDAY B9-14

A Plan for South Africas Poor
Faced with poverty and discontent
among black voters, South Africas
government is weighing something
more common in developed economies:
a national minimum wage. PAGE A4
Starting Point of Opioid Abuse
Some emergency room doctors are far
likelier than others to prescribe opioids
for pain in older people, and the pa-
tients are at higher risk of using the
pills chronically, a study says. PAGE A12
Soccer Blooms in the Desert
Hapoel Beer Sheva, Israels reigning
soccer champion, has helped rejuvenate
Beersheba, an ancient city in the re-
mote south. This team is part of the
roots of the city, a fan said. PAGE B9

NEW YORK A23-25

Closure (or Not) in Patz Case

BUSINESS DAY B1-8
Fake News and Movie Ads
As part of a viral marketing campaign
for A Cure for Wellness, above, 20th
Century Fox created a group of fake
news sites, slipping references to its
plot alongside made-up stories. PAGE B1
Bull Market Roars Along
Many investors are ignoring the chaos
As word spread about a guilty verdict in
the killing of Etan Patz, longtime
residents of a changed SoHo reflected
on the 6-year-olds disappearance in
1979. Crime Scene. PAGE A23
THURSDAY STYLES D1-10
A Rat Infestation Turns Deadly
Life After Vogue
A rare rat-borne disease transferred by
Joan Juliet Buck, above, a longtime
contact with the animals urine has left
editor of the magazines French edition,
one resident dead and made two others
regroups and reflects with a new mem-
severely ill in the Grand Concourse
oir, The Price of Illusion. PAGE D1
neighborhood of the Bronx. PAGE A24
ARTS C1-8 EDITORIAL, OP-ED A26-27
An Actor on the Oscar Road Gail Collins PAGE A27

in Washington and instead are focusing Denzel Washington, who is nominated

U(D54G1D)y+"!{![!#!/
on President Trumps agenda of tax for an Academy Award for his role in
cuts and deregulation, sending the Fences, talks about the long path to
stock market climbing. PAGE B1 getting the movie made. PAGE C1