March 26, 1981

Exceptional Shanghai restaurant demonstrates liberalized rules A3 American tells of efforts to recruit him as spy A3 Ronald Biggs's kidnappers freed A4 Around the World A5 American Embassy in San Salva- dor is attacked again A6 Soviet leaders press U.S. on talks A10 In Jidda, a million cars for a mil- lion people A14 U.S. lifts Sahara peace conditions for arms sales to Morocco A15 Government/Politics 23 oilmen contributed $270,000 to help redecorate White House A19 Desegregation issue cause confu- sion in Los Angeles schools A20 Carey and Kock testify against Reagan budget cuts B1 Jersey Republican shuns public funds in race for Governor B2 New York Assembly passes bill on joint custody in divorces B8 Feminists attack Reagan plan to curb abortion aid B13 Energy Accord reached on building refuse-fueled power plant B3 General Around the Nation A16 Police Charge three whites in the death of a black man A16 Study says crowded prisons should cut populations sharply A17 Bodies sought by Florida police in Weeki Wachee junkyard A18 Eban in New York to discuss TV series on Jews B8 Defector who dealt in false visas cites U.S. Embassy in Mexico B16 Health/Science The space shuttle Columbia has its fuel tank tested A16 University report advises genetic tests for donors of sperm A19 The Home Section Home Interior decoration among friends C1 Moving In, in China: A puzzled isolation C1 Show house guidelines are issued by designers C5 Shopping for an expandable din- ing table C10 The Milan look: Luxurious ma- terials in simple shapes C1 Hers C2 Home Beat C3 Cartier's secrets of mystery clocks C3 Home Improvement C4 Design Notebook C6 Laotian needlework from Rhode Island C11 Gardening C12 Industry/Labor Three New York City doctors tell why they went on strike B3 Kirkland opposes lower minimum pay rate for teen-agers B15 Arts/Entertainment Arts figures warn Congress on proposed budget cuts C15 Cunningham dancers give "Chan- nels/Inserts" its premiere C16 Suit alleges John Samuels sold painting used as collateral C17 Few opera stars are emerging from Europe C17 Ruby Braff leads jazz sextet C18 Al Carmines's opera-play on T.S. Eliot is staged C20 Donald Newlove's "Those Drink- ing Days" is reviewed C21 "Irish Coffee," a chilling tale of alienation, is staged C23 Obituaries Dr. Edward Lasker, five times U.S. Open chess winner D23 Dr. Joseph C. Hinsey, headed New York-Cornell Medical Center D23 Sports Guidry of Yanks gets chance to meet on his contract D18 Floyd discounts streak despite torrid golf rounds D18 Vecsey on Bert Yancey's continu- ing troubles D18 Tulsa beats Syracuse in overtime,86-84,to win N.I.T. D19 An oil crisis weapon: mirrors At the edge of abortion law The message from the mines Letters A22 William Safire: a quick guide to the foreign policy clans A23 Anthony Lewis: "1984" and Rea- gan's Cabinet appointments A23 Les Daly: Private Inc. in the pub- lic pen A23 Rita E. Hauser: of human rights and policy A23

Judge Milton Pollack of Federal District Court in Manhattan last night granted a temporary restraining order that prevents the St. Joe Minerals Corporation from going ahead with a series of proposals intended to block a $2 billion takeover by Joseph E. Seagram & Sons. The judge expressed outrage at St. Joe's proposal, announced on Tuesday, to liquidate the company if all else failed to block the Seagram acquisition of the nation's No. 1 lead company. ''It is inconceivable,'' he said, ''that an alleged flourishing enterprise has authorized its board to subject the assets and charter of the company to a scorched earth policy, to be accomplished in the name of an exercise of business judgment.'' Ruling Blocks Liquidation Judge Pollack's order stopped St. Joe from going ahead with any attempt at liquidation. It also prevented it from carrying out a proposal to buy up to 18 million of its shares, for $60 a share in cash and preferred stock, a move that could cost more than $1 billion.

This is President Reagan's kind of town: robust, conservative and Republican, an upholder of Western individualism, full of stout supporters in resonant harmony with his thinking about Federal spending. Southwesterners have long preached and tried to live by a set of laissez-faire and do-it-yourself values straight off the frontier. Accordingly, the intervention of the Federal Government has traditionally been unwelcome and Federal aid has been considered unnecessary. It is no surprise, therefore, that official Tulsa, unlike the city halls of the Northeast, says it is ready and willing to live with the President's proposed budget cuts. But, in reality, the Federal stamp is firmly planted on this city, as it is on many others in the Southwest, including Houston, Dallas, Phoenix and San Antonio. Modern Oklahoma and the West,

Governor Carey and Mayor Koch took their pleas against deep Federal budget cuts today to two Congressional hearings, where they were treated like the old friends that they are by some members of the House of Representratives who served with them. Governor Carey's testimony was the harsher of the two. He said that it was ''illusory'' to cut back the Export-Import Bank, since that actually created jobs in the United States, and that it was ''wacky'' to abolish legal services for the poor, since judges would then have to appoint defense lawyers who would have to be paid out of court funds. Mr. Carey was mostly ebullient and discursive, but his tone shifted to that of an impatient parent when questioned before the House Budget Committee by Representative Jack Kemp, the upstate New York Republican who is frequently mentioned as a potential opponent for Mr. Carey in next year's gubernatorial race.

The Dow Jones industrial average surged 19.09 points in a stunning late rally yesterday to finish at 1,015.22, its highest level in more than eight years. The stock market's most widely followed indicator thus established a foothold well above the 1,000 level, a barrier that has often proved formidable. The market, overcoming some early hesitation, moved broadly higher in active trading, with advancing issues outpacing declines by slightly more than a 2-to-1 ratio. Over all, turnover on the Big Board fell to 56.3 million shares from Tuesday's 66.4 million.