What was going on when I was born?

On a snowy Christmas Eve, faith blooms in Moscow A2 Iraqis say they have halted Iranian drive, trapping hundreds A3 Soviet warns again on subversive threat from Islamic nations A4 U.S. won't prosecute Ramsey Clark for Iran trip A6 Around the World A7 400 American clerics criticize Israel on Palestinian rights issue A8 U.N. endorses a report that fear would endanger a free press A11 U.S. journalist missing in El Salvador called ''determined'' A14 Government/Politics Grand jury to pay $25,000 for libeling concern A16 New York Assistant State Attorney General called suicide B2 The new State Legislature reacts in the old partisan style B4 Koch says he's pleased, generally, with Carey's annual message B4 Carey calls for major overhaul of criminal-justice system B5 The text of Gov. Carey's State of the State message B6 Program increases conviction rate for ''career criminals'' B7 Loft plan denounced by manufacturing and residential interests B9 Abscam witness says he was told Lederer took $5,000 of $50,000 B13 Inaugural entertainment to have Hollywood tone B17 General Around the Nation A16 Snow delays trains and shuts some schools in New York area B2 City needs 60 days of heavy rain to bring reservoirs to capacity B7 PARKING REGULATIONS Because of the snow, alternate-side parking regulations are suspended throughout New York City today. The Home Section Home Architects play with spatial illusions C1 An energy audit of a typical row house C1 At Your Service: Home filing cabinets C8 Use of energy codes lags in many areas C13 A new status symbol: a thatched cottage C16 Clinics and classes for overweight children C1 Hers C2 Helpful Hardware C2 Home Beat C3 Preventing damage from deicing salt C3 Home Improvement C4 Latest how-to help is on video- tapes C9 Design Notebook C10 Begin the new year by culling plants C11 Choosing shapes and textures for winter terraces C12 Two products must halt claims of doctors' endorsements C15 Energy E.P.A. extends deadline on limiting auto emissions D24 Arts/Entertainment City Ballet returns to its regular repertory C17 A literary critic asks: Is marriage a bad novel? C20 Dance Theater of Harlem offers ''Allegro Brillante'' C20 ''Melvin and Howard,'' a film praised but unseen C21 Graham Greene's second volume of memoirs is reviewed C22 Town Meeting on the Arts planned in Washington C22 WNYC altering its stations' shows and financing C24 Obituaries Wesley Powell, former Governor of New Hampshire D23 Clair Loring Farrand, inventor of radio loudspeaker D23 Religion Catholic Bishops urged integration, not assimilation in U.S. D23 Health/Science NASA gets a $60,000 donation for Mars mission A20 Sports Earl Campbell seeking 6-year pact at $1 million a year B18 Esposito retires as player today; to be Ranger coaching aide B19 Mrs. Lloyd, Misses Navratilova and Mandlikova win in tennis B19 Islanders lose to Penguins, 7-3 B19 Dave Anderson on Bum Phillips on the bum's rush B19 Hausman and Jorgenson are signed by the Mets B21 St. John beats Georgetown, 68-60 B22 Features/Notes Notes on People B10 Man in the News: T.H. Bell, Education Secretary-designate B17 News Analysis Drew Middleton weighs Iran's claims of a ''counteroffensive'' A3 Richard J. Meislin on Carey's State of the State address B6 Lawrence K. Altman on Alexander M. Haig's health B16 Editorials/Letters/Op-Ed Editorials A22 State of the State End of the Education Dept. Selling the Seaport Letters A22 William Safire: when Mr. French Smith goes to Washington A23 Anthony Lewis: questions for General Haig A23 James S. Altschul: in favor of negotiating with North Korea A23 Alvin B. Lebar: when strange things happen A23

Governor Carey opened the 204th session of the Legislature today by calling for a broad program of tax cuts for individuals and business, increases in welfare grants, more aid for mass transportation, a state takeover of Medicaid costs and a series of tough new measures to combat street crime. Mr. Carey's seventh State of the State Message represented the most ambitious inventory of proposals of his tenure and drew freely on the ideas of both liberals and conservatives. The Governor proposed that his potentially expensive program be put into effect over a number of years and his aides believe that will give him room for the financial and political maneuvering he needs to see it through. Mr. Carey, speaking in a staccato style as he condensed and improvised from a longer printed message, made his televised address before a joint session of the Legislature. Action on Crime Urged The Governor also recommended a major overhaul in the criminal justice system that would include stricter sentencing for violent criminals, increased police protection, three new correction facilities and expansion of investigatory and prosecution resources. (Page B5.)

''In each of the areas I have outlined today there is the same single underlying need to accept the disciplines of austerity as a means of hope.'' - Governor Carey in his State of the State message. (B4:2.)

Despite an impressive recovery from near bankruptcy in 1975 and subsequent investigations of widespread graft, Pertamina, Indonesia's national oil company, again faces the possibility of corruption within its ranks. More than $15 million in fuel cargoes have been stolen in the last year from ships traveling between Singapore refineries and Indonesia. An investigation has resulted in the arrest of more than 50 foreigners and Indonesians so far, including the Greek captain and the Polish first mate of the Panamanian-registered ship Houssan B. ''We think there are more,'' a Pertamina spokesman said. ''The investigations will continue until we are sure.''

-------------------------------------------------------------------- Arlene Fischer is a freelance writer. By ARLENE FISCHER ''WHEN you're fat you feel different from the other kids, like there's something wrong with you,'' said 10-year-old Julie, who six months ago weighed 93 pounds, about 15 pounds over her ideal weight. ''You're out of breath a lot, you're jealous of the skinny kids, sometimes you lie about eating and you end up being really mad at yourself and everybody else.'' An overweight child may carry a much greater burden than extra pounds, and the parents may also find the situation stressful. ''My daughter couldn't stop eating,'' said the mother of a 12-year-old girl, Susan, who was 5-foot-1 but weighed 127 pounds. ''At school she traded her diet lunches for pizza and potato chips. I hoped Susan would slim down on her own, but she was out of control. She put on 20 pounds in six months.''

Paul A. Volcker, chairman of the Federal Reserve Board, said today that the board's tight hold on growth of money and credit was likely to cut off any strong economic recovery as long as inflation remained high. At the same time, Mr. Volcker called for help in the fight against inflation from the Federal Government's budget policy, which he said had tended to ''strongly aggravate interest rate pressures.'' In sum, Mr. Volcker's testimony before the Senate Banking Committee appeared to be both a warning and a policy prescription for the incoming Reagan administration. In one sense, Mr. Volcker's remarks constituted his defense of monetary policy a day after Donald T. Regan, designated to be Secretary of the Treasury, cited ''erratic monetary policies'' as one cause of volatile financial markets.