Dueling press releases have provided a continuing backdrop to the legal dispute over how much insurers should pay for the destruction of the twin towers. The litigation serves as a roadblock to rebuilding at the site.

Gov. Pataki announced in a statement last week that he wants to assist in the settlement process.Mr. McKelvey said Mr. Silverstein welcomes the governor's intervention and attempt to mediate a settlement.

Jacques E. Dubois, chairman and chief executive officer of Swiss Re America, noted that "if anyone wants to talk settlement within the framework of the Willis property form [the Trade Center property insurance policy], we would be willing to do that."

Mr. Silverstein contends that the two airplanes that hit the twin towers on Sept. 11, 2001, should be considered two separate events, entitling him to recover $7 billion?twice the $3.5 billion property insurance policy limit. Insurers, led by New York-based Swiss Re America, counter that the WTC attack was one event and that one policy limit applies.

On Sept. 26, Judge John M. Walker Jr. of the U.S. Second Circuit Court of Appeals rejected Mr. Silverstein's argument that two insurance limits apply as a matter of law and ruled that a trial is needed to decide the issue.

At Gov. Pataki's request, Kevin Rampe, president of the Lower Manhattan Development Corp., will spearhead the settlement talks.

"This is a contract dispute," Swiss Re's Mr. Dubois stressed. "The insurers' obligation is up to the $3.5 million policy limit and nothing more. We're talking to lots of people all the time about this to make people know our position."

"Insurers have met with nothing but delays from Mr. Silverstein in trying to get this resolved," Mr. Dubois continued. "We are ready to go to trial and put this dispute before a jury of New Yorkers."

"Resolving this dispute all depends on whether the insurers are prepared to negotiate a reasonable settlement that will lead to the rebuilding of the World Trade Center," Mr. McKelvey responded.

"Swiss Re on Saturday put out a rather uncomplimentary press release about Mr. Silverstein," said Mr. McKelvey.

The release called Mr. Silverstein "a private developer who wants to control Ground Zero." It went on to state that "Silverstein continues to erode the insurance proceeds available so that he can pay lobbyists, lawyers and PR advisers who contribute nothing to the rebuilding."

In addition, the release said Mr. Silverstein "has successfully lobbied Congress for insulation from any potential liability to the September 11 victims' families."

"This release is very derogatory and not conducive to settlement," said Mr. McKelvey.

"This bears the earmarks of a foreign insurer desperate to protect its pocket book to the detriment of New York," noted another of Mr. Silverstein's spokespersons, Howard J. Rubenstein, in a statement.

Mr. Silverstein's statement went on to note that Swiss Re has paid only $49 million so far. The statement also pointed out that the contention that the Trade Center attack was two separate events is not an "outrageous" claim, as that position is supported by Gov. Pataki, among others.

Mr. Rampe's office and Gov. Pataki's spokesperson Molly Fullington did not return calls for comment.