Utilities in the US are largely prepared

But the Senate was concerned that the lack of preparations in other countries had the potential to set off a global recession.

Senator Bob Bennett said the estimated $50bn to $150bn spent by the private sector in the US and $8bn spent by the federal government to prepare for the computer problem has appeared to have paid off.

In a 288-page report, Senator Robert Bennett said any failures would cause more inconveniences than tragedies.

The report predicts the US will not experience any major failures of public utilities, transport, banking or food distribution. Any problems would be localised and overcome quickly.

But some states, including Washington, DC, still had a great deal of work to do, he said.

Warning against panic and scams

Senator Bennett was concerned that misinformation might set off a panic with serious knock on effects.

If people panic, they may "set off problems that could be worse than the problems they would face if they would simply get the information and take care of their own lives," Senator Bennett said.

The co-chair of the committee, Senator Christopher Dodd, also warned the public against falling prey to Y2K-related scams.

Embedded microchips used in cars and appliances will cause few problems

He said some people might try to take advantage of the computer glitch, preying upon people who have heard about potential problems the banking system.

"Any unsolicited phone call that requests financial data from you ought to be rejected immediately. You ask them for telephone numbers, ask them for the names of individuals, and you'll call back, you'll be in touch with them. That usually ends the scam," Senator Dodd said.

International concerns

The senators were careful to say the Defence Department has been successful in their work with the Russians to ensure the safety of missile operations.

However, confidence in international preparations ended there.

The report said about half of the 161 countries assessed were at medium to high risk of Y2K-related failures in critical sectors such as telecommunications, energy and transportation.

"Those American businesses who are dependent upon commerce from Eastern Europe, from Africa, from parts of South America and Asia will likely experience some difficulty in their supplies," according to Senator Gordon Smith, who served on the committee overseeing Y2K preparations.

The senators expressed particular concern about Italy, Russia, China and Brazil.

They said they were able to gather little independently verifiable information on Russia and China, but that China has already experienced date-related failures of computer systems.

With the global scope of the problem, the senators said that the computer glitch had a 50% chance of setting off a worldwide recession.

"It is a mistake to believe that disruptions abroad won't hurt us here," Mr Bennett said. "Economies are global, and Y2K disruptions will be experienced globally."