August 20, 1981

JONATHAN BELKIN'S house in Queens needed major repairs, including a new heating system, new kitchen and bathroom, electric wiring, windows and exterior siding. Like many consumers, he knew nothing about construction. He simply threw himself at the contractors' mercy, asking for the ''best price'' for the ''highest quality material and workmanship.'' Under these circumstances, Mr. Belkin might easily have become one of the four persons a day who complain to the New York City Department of Consumer Affairs about contractors who have abandoned projects, used poor materials or done shoddy work. ''Mr. Belkin,'' however, was a phony consumer, an undercover investigator for the department whose work requires him to remain anonymous. Following his investigation, charges were brought against four contractors for violating the city's home improvement regulations, and summonses were issued to seven unlicensed contractors and seven unlicensed salesmen that called for their appearances at departmental hearings or told them to apply for licenses.

Bullets ricocheted around the Amman Intercontinental during Jordan's 1970 civil war. Revolutionaries smashed windows at the Teheran Intercontinental while the Shah's regime was being overthrown. Sheiks have been sauntering through the Riyadh Intercontinental since well before the 1970's oil boom. History and revenues have been flowing copiously through the farflung portals of the Intercontinental Hotels Corporation, which is the most profitable subsidiary of ailing Pan American World Airways. It logged pretax earnings of $23.8 million on operating revenues of $136.7 million for this year's first half.

The United States said today that two Navy F-14 jets shot down two Soviet-built Libyan SU-22's about 60 miles from the Libyan coast after being fired on by one of the Libyan aircraft. The brief battle occurred in the final hours of a two-day United States Navy Transcript of Weinberger's remarks and text of U.S. protest, page A8. exercise in the southern Mediterranean and the northern part of the Gulf of Sidra, the United States said. It said the two Libyan fighters were downed by Sidewinder missiles fired by the F-14's in a one-minute dogfight over the Gulf, a broad body of water that Libya claims as part of its territorial waters but that the United States regards as international waters. Pentagon officials said the American planes returned to the carrier Nimitz safely. A Pentagon official said that the two Libyan pilots were seen parachuting but that one of the chutes was believed to be in flames.

''Under these conditions of operations such as this, that if an enemy aircraft conducts a hostile act, in this case did take on fire of our two aircraft, the aircraft flight commander has the authority to defend himself; in this case, that's exactly what he did.'' - Lieut. Gen. Philip J. Gast, director of operations of the Joint Chiefs of Staff. (A8:1.)

The economy contracted at a revised annual rate of 2.4 percent in the second quarter, more than previously estimated, after a robust 8.6 percent growth rate in the first quarter. Corporate profits also fell after a first-quarter rise, the Commerce Department reported, with after-tax profits down 11.3 percent to an annual rate of $150.1 billion. But economists declined to forecast a recession. (Page D1.) The MacArthur Foundation of Chicago is selling its vast assets in insurance companies and real estate to comply with Federal laws limiting business ownership by tax-free, private foundations. Experts said the sale might realize between $1 billion and $2 billion, consolidating the foundation's position as a leader in its field. (A1.)