An attorney for the U.S. Department of Justice Monday spent time building up a potential showdown between the twin towers of the PC business.

Monday morning, Justice Department attorney David Boies played more of the videotaped testimony from Microsoft Corp. Chairman Bill Gates during which the attorney grilled Gates on his and Microsoft's relationship with microprocessor king Intel Corp.

The questions in the Gates deposition are laying the groundwork for testimony expected later Monday by Intel Vice President Steven McGeady.

Boies asked Gates whether he or Microsoft tried to convince Intel not to help Sun Microsystems Inc. with Java. Gates, apparently looking down at a document on the table in front of him, paused for a long moment before answering: "Not that I know of."

Then, Boies asked whether Gates or Microsoft tried to convince Intel not to engage in software activity. Gates answered no.

Boies then narrowed the question of whether Microsoft asked Intel not to get into software activity where Microsoft already was involved. That answer was less definitive. Gates said he was sure the companies talked about how "sometimes there was a lack of communication in various areas, including software development, that lead to a mismatch and bad customer experiences."

"Did you personally ever tell [Intel Chairman] Andy Grove that Intel software work was beginning to overlap with what Microsoft was doing?" Boies asked. Gates responded "only in the sense" that the companies needed to avoid low quality and incompatibility.

"Did you ask Intel to keep you apprised of any software work Intel was doing?" Boies asked.

Gates replied that he thought he made that request in vain.

Boies then tried to pinpoint when Gates or Microsoft asked Intel to keep Microsoft apprised of Intel software plans, asking in succession if whether it was last year, two years ago or three years ago. Gates answered in the negative.

"Did you tell Intel that if Intel competed with Microsoft, Microsoft would be forced to compete with Intel?" Gates again answered no.

"If anyone said that, would you see it as against company policy?" Boies continued.

Gates said: "I'm confused. Intel and Microsoft are not in the same business, so there's no policy that suggests we're going to go into the chip business."

Boies jumped on that. "Is part of your goal to keep Microsoft and Intel in separate businesses?"

Gates: "No."

Would, Boies asked, Microsoft hold up support for Intel's chips if Intel did not cooperate with Microsoft?

Gates said: "When we saw low-quality work that also served no Intel goal, that should change. They were doing work that was negative and producing negative customer experiences."