IN HAWAII

State report forecasts income growth

Hawaii should see real growth of 1.5 percent in personal income this year, increasing to 1.9 percent next year, according to a state report released yesterday.

Department of Business, Economic Development and Tourism Director Seiji Naya said continued gains in Hawaii's economy is reason for cautious optimism. "We seem to be responding positively to improvement in the national economy. In particular, the number of visitors from the mainland is returning to the level of a year ago," he said.

The department's Quarterly Statistical and Economic Report said the forecast reflects expected growth in the national economy of 2.8 percent this year. Japan is expected to experience a further decline in its economy of about 1 percent in 2002 and return to positive growth in 2003, the report said.

Airport security in Hawaii to get review

Federal airport security officials will be in Hawaii Monday to start checking security screening at three airports, Honolulu, Kahului and Kona.

The checks by the Transportation Security Administration will start July 1 at 133 airports across the nation that are being fast-tracked for screening studies leading up to a Nov. 19 deadline for all airports to have federal employees screen travelers.

In that process, International Total Services, which screens passengers for Hawaii airports, will lose its contract as the job is taken over by U.S. agents.

Home Depot to accept government buyers

Home Depot Inc., which irritated Hawaii's military community and delighted its local competitors by recently reinforcing its policy of not selling to federal government buyers, made a turnaround yesterday and said it will now accept those customers.

Since it was founded in 1978, Home Depot has refused to accept purchase cards or buy orders issued by the military and other federal agencies. Criticism in recent weeks said its policy was based on worries about affirmative-action requirements, such as rules that require federal contractors to give hiring preference to Vietnam veterans.

Atlanta-based Home Depot yesterday issued a statement saying it rescinded the policy after comments from employees and customers and after a new study of what would make it a federal contractor.

ON THE MAINLAND

Bush administration watching port dispute

WASHINGTON >> The Bush administration is encouraging West Coast dock workers and shippers to reach an agreement before their contract expires Monday evening and avoid a work slowdown or strike.

The contract between about 10,500 members of the International Longshore and Warehouse Union and the Pacific Maritime Association controls the flow of goods through the nation's 29 major Pacific ports. Last year, that trade amounted to $260 billion in cargo.

The contract expires at 8 p.m. EDT Monday. The union has not voted to strike.

White House spokesman Scott McClellan said yesterday that administration officials are monitoring contract talks in California and are "encouraging the parties to reach an agreement and keep in mind the impact that it could have on the economy."

McClellan would not say whether President Bush would intervene should negotiations break down.

The Taft-Hartley Act allows a president to block a strike for 80 days if a dispute in a substantial segment of an industry will "imperil the national health or safety." Federal mediators would try to work out an agreement and an inquiry board would investigate and report on the progress. Congress could impose a settlement.