May 8, 1981

The Labor Party, battered for two years by defections and splits, scored a convincing comeback in yesterday's elections to local councils in England and Wales -the first major test of partisan strength since the Conservative Government of Prime Minister Margaret Thatcher took power two years ago. The Labor Party took control from the Conservatives in London, Manchester, Liverpool, Birmingham and Leeds. The party now dominates the councils in all of England's most populous areas. In addition, Labor staged some surprising upsets in rural Conservative strongholds, including the counties of Cumbria, Cheshire, Derbyshire and Staffordshire.

International Close U.S.-Japan consultations on matters of vital interest to Tokyo were pledged by President Reagan in a White House talk with Prime Minister Zenko Suzuki, according to a United States official. Japan has objected to a lack of consultations on such issues as Mr. Reagan's decision to lift restrictions on grain shipments to the Soviet Union. (Page A1, Column 1.) Britain's Laborites scored a comeback in elections to local councils in England and Wales in the first major test of party strength in two years. The Labor Party took control from the Conservatives in London, Manchester, Liverpool, Birmingham and Leeds and staged surprising upsets in some rural Conservative strongholds. (A1:2.)

Political activity beginning to stir in Turkey again A2 Schmidt silent on personal attacks by Begin A3 U.S. doubts Libya will cut off oil in reply to ouster of diplomats A3 U.S. priest who was missing in El Salvador criticizes U.S. A4 Around the World A5 Mexican leader criticizes U.S. on Nicaraguan policy A6 Arms aid for Argentina passes a House hurdle A7 Special U.S. envoy reaches Beirut for talks in crisis A8 Mood in Damascus is calm despite crisis over Lebanon A9 Government/Politics Watt says national parks are in "shameful" condition A17 White House defends decision to abolish Carter judicial plan A17 D'Amato expected to recommend Federal judge in Brooklyn B3 General Around the Nation A16 Videotaped testimony dominates ex-Tennessee Governor's trial A16 Ten indicted in alleged Dominica overthrow plot A16 Pay raises in New York being outpaced in other areas B2 Jersey town seeks to cope with strike by firemen B2 Detective denies contention he coached Crimmins B3 Official discounts radar as cause of collision in harbor B3 Two wives among dead in Air Force plane explosion B6 Features/Notes Man in the News: Zenko Suzuki, blunt guest from Japan A10 Notes on People C30 News Analysis Hedrick Smith discusses Reagan's victory on budget A1 Weekend Weekender Guide C1 New breed of clowns at the circus C1 Theater:Broadway C2 "The Little Foxes," with Misses Taylor and Stapleton C3 "The Idol Makers" at Soho Rep C9 Screen: "This Is Elvis" opens C8 At the Movies C8 "Moscow Doesn't Believe in Tears," Oscar winner, opens C10 "Second Hand Hearts," with Barbara Harris C11 Dance: Young stars in annual workshop C1 Art: Painting and the birth of photography C18 Museum of American Indian celebrates 65 years C21 Auctions C23 Books: Rare-book fair opens tomorrow C25 Publishing C26 "Basin and Range" by John McPhee reviewed C27 Restaurants C16 TV Weekend C31 Style The Evening Hours B4 A Broadway Ingenue named Elizabeth Taylor B4 Boycott on rights amendment divides psychiatric convention B4 Paris Vote: Parties B4 Sports Geiberger limiting his schedule on PGA Tour after surgery A22 Red Smith on baseball's star chamber A22 Dibbs ousts Kriek to reach quarterfinals at Forest Hills A22 Task force unmoved by N.Y.R.A. franchise extension bid A22 Flames beat Stars and trail 3-2 in series A22 Mets beat Giants, 3-2, after Torre shuffles lineup A23 Rockets top Celtics, 92-90, to tie series at 1-1 A23 Angels beat Yanks and John, 2-1 A23 Bowman, comatose boxer, is battling the long odds A23 Valenzuela wants a big season, then a big contract A26 Editorials/Letters/Op-Ed Editorials A30 Why destroy Conrail to save it? And why the commuter burden? The South Bronx looks to itself Tuning out controls on radio Letters A30 Tom Wicker: lessons from the NATO conference A31 Flora Lewis: the Rocquefort Principle A31 Geoffrey Colvin: the IRT and the Sky RT A31 Carol Bellamy: budget-cutting lessons A31

Americans bought $3.11 billion more on credit than they repaid on old debts during March, the Federal Reserve Board reported today. It was the largest growth of consumer installment credit in 18 months. Separately, big national retail chains reported sharp sales gains for April. Analysts noted that Easter came in late in the month this year, which helped raise sales over 1980, when Easter was early in April. They said that the weather this year was favorable and that credit controls had been in effect a year earlier. Sears Roebuck & Company reported a 20.5 percent increase, its best since December 1977. (Page D4.)

THE carefree buffoonery of the 27 clowns, three of them women, who perform acts and entr'actes in the Ringling Bros. and Barnum & Bailey Circus unit playing Madison Square Garden through May 31, is a series of infinitely varied capers, a premeditated assault on the senses. If the circus is spectacle designed to numb the onlooker with extravagant panorama, clowning is its quintessential art, the one thing without which the circus simply could not be the circus. There is a large ad hoc dressing room just off the Garden arena that bears the sign, ''Clown Alley.'' In it are tables, mirrors, racks of costumes and the clowns themselves, usually rushing through one change into another, running to make their entrance on a short avenue filled with the traffic of other acts - elephants, dancing bears, tiger cages, horses, wagons, funny motor cars, gorgeous trapeze artists. The clowns, with bulbous noses, billowing wigs, baggy pants and the paraphernalia of their skits, are always in evidence because there is rarely much time between their appearances. ''We are always in the show,'' said Lou Jacobs, the dean of Ringling's clowns. ''We always have to listen to the music because that tells us what is happening.''