What was going on when I was born?

-year-old budget dispute. Under a compromise reached by leaders of the 10 member countries, Britain would receive a rebate of about $800 million on its 1984 contribution to the Common Market treasury and $600 million for 1983. (Page A1, Column 6.) A corruption scandal shook Bonn. Economics Minister Otto Lambsdorff, a central figure in West Germany's center-right coalition, announced he had resigned because of the imminent confirmation of an indictment against him. (A1:4-6.)

Leaders of the European Common Market countries today settled a five- year-old budget dispute and said the agreement cleared the way for movement toward greater European political and economic unity. The dispute, over the size of Britain's contribution to the joint Common Market treasury, was resolved when the leaders of the 10 member countries agreed to a compromise bringing the Government of Prime Minister Margaret Thatcher what British officials called a satisfactory share of community funds. But in Britain, Mrs. Thatcher's political opponents, and critics within her own party, expressed dissatisfaction with the agreement. (Page D4.)

Last June major toy makers read the initial script of ''Gremlins,'' a Steven Spielberg movie. In February Gizmo, the good gremlin, made his debut at the annual toy fair in New York, and there were 50 licensees. Gizmo seemed sure to be a hit. ''We committed for thousands of pieces,'' said Ian McDermott, senior buyer for the F.A.O. Schwarz toy stores. ''We've never made a commitment like that before.'' Like other retailers, he had not seen the script. Then ''Gremlins,'' rated PG, opened on June 8. ''The moment we realized the movie was black humor and sick jokes, we pulled 8ut,'' Mr. McDermott said. Schwarz canceled most of its orders for Gizmo characters. ''The public is so sensitive,'' he added.

Walter F. Mondale and Senator Gary Hart met yesterday for two hours and then declared that their conflicts had largely been resolved and that they were united, as Mr. Hart put it, by a ''profound fear of a second Reagan term.'' ''If the Republicans and Mr. Reagan are betting on a divided party, they can forget it,'' said Mr. Mondale, who stood beside Mr. Hart outside an East Side brownstone where the two principal contenders for the Democratic Presidential nomination ate breakfast. Mr. Hart, who announced Monday that he would withdraw his threat to challenge several hundred convention delegates pledged to Mr. Mondale, said, ''We will do all we can to do everything within our power to see that Ronald Reagan does not have a second term in the White House.'' 'I'm Glad to See Fritz' Mr. Hart said, ''I'm glad to see Fritz again.''

The Consumers Power Company said today that it would halt construction of the Midland nuclear power plant tomorrow. The utility has spent $3.6 billion on the two-unit plant over the last 17 years. However, officials of the company and the state's Public Service Commission agreed to resume talks later this week in an effort to find a compromise on paying for completion of one unit at the Midland plant, about 100 miles northwest of Detroit. They agreed to meet at the request of the majority leader of the Michigan State Senate, John Engler.

In a tense drama acted out in split seconds, engines of the space shuttle Discovery began ignition and then cut off abruptly today, forcing postponement of the mission for several days or possibly several weeks. The shutdown occurred when computers detected an apparent valve failure in one of the main engines. The National Aeronautics and Space Administration said it was not known when a new launching date could be set for the spaceship's maiden flight. An investigation was under way to determine the exact cause of the engine shutdown, what repairs might be necessary and what effect the postponement could have on future shuttle missions. The six-member crew, five astronauts and a working passenger from industry, rode out their brush with potential disaster unharmed.

The House Banking Committee approved a comprehensive bill tonight to halt recent bank moves across state lines and to force banks out of certain nonbanking businesses. The vote puts the committee at odds with the Senate and the Administration. The measure, approved on a 32-to-16 vote after 10 hours of debate, is also vigorously opposed by much of the banking community, which views it as a step backward in efforts under way in the Senate to further deregulate the rapidly changing financial services industry. The bill, sponsored by Fernand J. St Germain, a Rhode Island Democrat and chairman of the panel, would also close a provision in banking law that has allowed several dozen nonbanking companies to push into commercial banking and the savings and loan business. Such firms include Merrill Lynch & Company and Sears, Roebuck & Company. In this important aspect, the House bill is similar to the one in the Senate.

A table in Business Day yesterday describing troubled utilities misstated the equity of common shareholders in the Consumers Power Company. At year end it was $2.3 billion.

Economics Minister Otto Lambsdorff, a central figure in West Germany's center-right coalition, announced late Tuesday night that he had resigned because of the imminent confirmation of a corruption indictment against him. He said Chancellor Helmut Kohl had accepted the resignation. In an abrupt announcement that caught even his Free Democratic Party by surprise, the 57-year-old minister said he had submitted his resignation after being informed by his lawyer that a Bonn court was about to confirm an indictment brought against him in November. Mr. Lambsdorff reiterated that he was innocent of the charges - accepting bribes from the giant Flick holding company for arranging tax waivers - but said that his need to defend himself prevented him from remaining in office.

The rise in interest rates, including this week's increase in the prime rate, is painful for the Federal Government, because the cost of borrowing to cover its deficit has soared. The same complaint comes from corporations, which borrow to finance new plants and machinery, and developing countries, which are trying to repay their ballooning debts. Rhoda Schwarz is delighted, however. Higher interest rates mean that she collects higher income from her investments - income that is not being eaten up by inflation. ''It's allowed me to be a little bit freer,'' said the widow, who lives in Hallandale, Fla. ''I bought my daughter a car last year. I can take people out for dinner and be kind of a sport. It's allowed me to do a little refurnishing in my apartment. On the whole, it helps.''

A Washington dispatch on Friday about a committee examining complaints by the Rev. Jesse Jackson erroneously described the political stances of two Pennsylvanians. Leroy Irvis, Speaker of the Pennsylvania House, is supporting Walter F. Mondale. Julius Uehlein, head of the Pennsylvania labor federation, will attend the Democratic convention as a Mondale delegate.

Fujitsu Ltd., Japan's largest computer company, is planning to export supercomputers to the United States, mounting the first direct challenge to American manufacturers who make high-speed computers considered vital for national defense. A Fujitsu spokesman said today that the computers would be sold by the Amdahl Corporation, a California computer company in which Fujitsu owns a 49 percent stake. ''Fujitsu and Amdahl are discussing it now, but we haven't reached an agreement,'' said the spokesman, Yuri Momomoto.