September 29, 1981

Sheik Ahmed Zaki Yamani, Saudi Arabia's Oil Minister, said today that his country's moderate oil pricing policy would remain unchanged whether or not the United States Congress rejected the sale of Awacs reconnaissance planes. His remarks came as a United States Senate committee debated the sale. The Administration has argued that rejection would damage Saudi-American ties. But Sheik Yamani and other Saudi officials have said the Saudis would not take drastic action if the sale collapsed.

The Westchester County Board of Legislators took a decisive step today toward creating a public power agency that would replace the Consolidated Edison Company as the local supplier of electrical power, presumably at lower cost to consumers. The board, acting unanimously, set Oct. 5 for a public hearing on a referendum that the board is expected to put before the voters next March 16. If approved by the voters, the referendum would establish a municipal agency that could buy low-cost hydroelectric power from the state and distribute it by leasing Con Edison's network, or by selling it to the utility for resale to customers. Similar Effort Rejected The legislative sponsor of the plan maintained that the lower rates would result in part from the new agency's tax advantages as a municipal body, but a Con Edison spokesman disputed this view.

The stock market made a dramatic recovery following an early avalanche of heavy selling yesterday, with the Dow Jones industrial average rising 18.55 points, to 842.56, its biggest daily gain in more than six months. ''The market was oversold and ripe for people to start buying,'' said John C. Pistell, chief analyst of Stires & Company. After plunging more than 15 points in the first 30 minutes of trading, the blue-chip average recovered sharply and was up 7 points at 2 P.M. Selling pressure then intensified again and the Dow was off 1.52 points at 3 P.M. However, stepped-up buying in the last hour enabled the Dow soar to 842.56, the biggest daily advance since March 25, when it rose 19.09 points. Advancers Top Decliners Analysts attributed most of the late upswing yesterday to bargain hunting by investors and traders. Since late April, the Dow has tumbled about 200 points, and on Friday the blue-chip indicator dropped 11.13 points, to 824.01, its lowest close since May 15, 1980.

Changes in the way lower-court judges are chosen to work temporarily in State Supreme Court have raised the hopes of some judges, caused concern among others and provided a rare look at the infighting for promotion that occurs on the bench. Hopes were raised for judges who had felt they might be passed over for appointment to State Supreme Court because they did not have friends in high places. But some Supreme Court justices already elected were concerned because they feared their ranks might become more plebeian. The changes were announced on Sept. 21 by Chief Judge Lawrence H. Cooke of the state's highest court, the Court of Appeals. The reactions attending his announcement throw light on how judges jockey for recognition and speculate about who has the backing of whom in their quests for higher office.

Reagan holds off on second nomi- nation for rights post 3 Iraq denies that Iran scored a vic- tory in war 3 Around the World 4 West German state elections go against Schmidt's party 4 U.S. urges Japan to increase arms spending 6 Soviet Jewish dissident in Khar- kov is arrested 7 Government/Politics Debate on voting rights act begins in House 9 Joggers in TV commercial sell Republican Party 12 "Students" enjoy Democratic training school 12 More emphasis on private pen- sions urged in report 12 At Congressional Black Caucus, a sense of opportunity 15 Washington Talk Briefing 10 Two Senators are struggling over control of foreign assistance 10 Quiet revolt goes on among Jus- tice Department lawyers 10 General Around the Nation 8 New air traffic controller trainees at crucial time 8 Thousands of working mothers in Jersey face loss of welfare 11 Around New York 15 Science Times Mystery of Damascus steel ap- pears to be solved 17 New chief of Federal science agency pushes for change 17 Education: Change in the offing for law school admission test 17 Science Watch 18 Science Q&A 18 Russians plan dramatic expan- sion of effort in earth drilling 19 Science Times Mystery of Damascus steel ap- pears to be solved C1 New chief of Federal science agency pushes for change C1 Education: Change in the offing for law school admission test C1 Science Watch C2 Science Q&A C2 Russians plan dramatic expan- sion of effort in earth drilling C3 About Education: Foundation urges drastic change C4 General Around the Nation A12 Hinckley plea to be not quilty by reason of insanity A13 Thousands of working mothers in Jersey face loss of welfare B2 In a troubled Brooklyn school, calm is replacing chaos B3 Religion Austrian cardinal urges coopera- tion of church and science B2 Industry/Labor New air traffic controller trainees at crucial time A12 Arts/Entertainment Two films explore urban neglect and Ku Klux Klan C6 "One World Percussion" at World Trade Cente r plaza C6 "Everybody's Gettin' Into the Act," at Actors' Playouse C7 "60 Minutes" examines itself C7 Ohioan wins $75,000 American Music Competition C7 Szabo's "Mephisto" at New York Film Festival C8 "Practicing History," essays by Barbara W. Tuchman C9 Stream Dance gives a concert at La Mama Annex C10 "Sophisticated Gents," middle- class black people, on NBC C10 PBS's "Odyssey" looks at "The Ancient Mariners" C10 Bella Davidovich, pianist C10 Style Notes on Fashion A24 Daytime uniform: The suit A24 Gifts for the second time around A24 Sports Brewers win, take first place in American League East D23 Cardinals win, 6-2, trail Expos by a half-game D23 Yankees lose to Indians, 6-2 D23 Dodgers' Smith suspended for five days for fight with fan D23 Chicago has a winner in the Sting D23 Phillies defeat Mets by 12-4 D24 Dave Anderson on Nolan Ryan's no-hit symphony D24 Nets waiting to hear from McAdoo and Barnes D24 Group formed to protect rights of student athletes D25 Ainge to quit baseball regardless of trial outcome D25 Giants face game against Pack- ers with optimism C26 Rams defeat Bears by 24-7 D26 Jets, 6-0 against Dolphins, look forward to their game D27 Features/Notes Notes on People B4 Going Out Guide C9 Sports People D25 News Analysis Leonard Silk discusses worries on world economy A1 E. R. Shipp examines temporary State Supreme Court duty B1 Editorials/Letters/Op-Ed Editorials A26 Two faces of Awacs What's fair on the modern air One-man trucks, more or less Letters A26 Sydney H. Schanberg: the new math explained A27 Tom Wicker: the riddle of deter- rence A27 Clemard Josep h Charles: aiding fleeing Hai tians A27 Alix Kates Shulman: the bag ladies A27