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he figures obtained before publication of the International Monetary Fund's World Economic Outlook (WEO) in mid-April, suggest that the performance of the past few years, the best in three decades, generally looks set to continue despite a U.S. lull.
imf.03.jpg
INTERNATIONAL
ECONOMY

SAN FRANCISCO, March 14 — A California judge on Wednesday dismissed charges against Patricia C. Dunn, the former chairwoman of Hewlett-Packard, in a corporate spying case that gained national attention and prompted Congressional hearings on the protection of personal telephone records.
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Paul Sakuma/Associated Press

Patricia C. Dunn, former chairwoman of Hewlett-Packard.
Related
H.P. Restarts as Spy Case Lingers On (March 14, 2007)
Battle Lines Are Drawn in Hewlett Proxy Issue (March 9, 2007)
Text: Original Felony Charges (Cal. v. Dunn, et al.)

Judge Ray Cunningham of the Santa Clara County Superior Court also agreed to dismiss a reduced misdemeanor charge against three other defendants in the case once they each perform 96 hours of community service. Ms. Dunn and the three others had initially been charged with four felony counts for their participation in a cloak-and-dagger investigation inside H.P., the world’s largest computer company.

That investigation was set in motion when officials at Hewlett-Packard, including Ms. Dunn, sought to ferret out the identity of company insiders leaking information to the news media.

Some of the concrete investigative work ended up in the hands of private detectives who misrepresented themselves to phone companies to gain access to the call records of Hewlett-Packard directors and journalists. The case aroused interest in the use of this tactic, known as pretexting, and raised broad questions about privacy in the digital age.

The news of the developments in the case came hours before Hewlett-Packard convened its annual shareholder meeting in Santa Clara, Calif. It was the first time that Mark V. Hurd had faced investors since being named chairman in September, after Ms. Dunn’s departure from the board.

“Let me assure you that no one is proud of what happened last year,” Mr. Hurd told shareholders. “We need to transform our board the same way we transformed the company.”

Federal investigators are still looking into the spying incidents.

The quiet resolution of the case was a vindication for the defendants, who briefly became symbols of the challenge of balancing corporate responsibilities and individual privacy rights. It came after several weeks of negotiations between lawyers for the defendants and the office of the California state attorney general, Jerry Brown.

The attorney general’s office ultimately endorsed the dismissal of charges against Ms. Dunn and reduced the charges against the three others: Kevin T. Hunsaker, a former company lawyer, and two private investigators, Ronald R. DeLia and Matthew DePante.

Lawyers for the defendants argued that their clients did not commit a crime, in part because they acted without criminal intent. James J. Brosnahan, a lawyer for Ms. Dunn, said she consulted accomplished lawyers before approving an investigation that ultimately involved pretexting, and was told that she was acting within the law.

“She received the benefit of advice that what was being done was perfectly legal.” Mr. Brosnahan added. “She never had the slightest criminal intent.”

While ignorance of the law is not a defense, Mr. Brosnahan said there were other considerations, including the fact that the pretexting laws were in flux at the time of the offense.

“The law was shifting and changing,” he said.
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The figures put U.S. growth at 2.6 percent in 2007 and 3.0 percent in 2008, both 0.3 percentage points lower than the IMF forecast back in September and coming after a 3.4 percent rise in gross domestic product in 2006.

That fits with predictions by the Organisation for Economic Co-operation and Development this week of a U.S. slowdown that would be offset primarily by continued healthy growth in Europe in 2007.

The IMF figures envisage growth in euro area of 2.3 percent this year and next year after 2.8 percent in 2006, which marked a major recovery and the best performance in six years.

Those figures are a third of a percentage point higher than the IMF was forecasting previously for this year and higher by almost as much for 2008 - showing the extent to which Europe may offset the drop in U.S. growth.

The forecasts put growth in Japan at 2.2 percent in 2007 and 1.9 percent in 2008, after 2.2 percent in 2006.

Within Europe, the IMF is counting for the moment on German growth of 1.8 percent in both 2007 and 2008 after 2.7 percent in 2006, according to the draft figures.

The growth forecast for France is 1.9 percent this year and 2.3 percent in 2008.

Italy, third biggest economy in the euro zone after Germany and France respectively, is seen growing 1.8 percent this year and 1.7 percent, after 1.9 in 2006.

For Britain, the draft figures put growth at 2.9 percent this year - the fastest for any G7 country - and 2.7 percent in 2008, unchanged from 2006.

For Canada, the GDP rise is put at 2.5 percent this year and 3.0 percent next year, after 2.8 percent in 2006.

The IMF also includes Spain on its list of big players in the industrialized world, with the draft figures pointing to growth there of 3.4 percent in 2007 and 3.3 percent in 2008, after 3.8 in 2006.

In the higher-growth world of emerging giants, Chinese GDP is seen expanding 10 percent in 2007 and 9.5 percent in 2008, in line with government plans there to slow the pace after growth of 10.7 percent growth in 2006. For India, the IMF's draft figures point to growth of 8.3 percent this year and 7.8 percent next year after 9.3 percent in 2006.

Expansion in world trade is likely to slow to 6.9 percent in 2007 from 9.1 percent in 2006 and pick back up to 7.4 percent in 2008, according to the draft forecasts.

The IMF's global GDP growth figure for last year, 5.3 percent, matches that of 2004 as the best since the early 1970s.

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