November 20, 1981

Mayor Koch yesterday disputed figures indicating there are 36,000 homeless men and women in New York City and strongly attacked the state, asserting that it had failed to live up to its obligations to these people. ''We have done the best we can,'' the Mayor said, ''but it is time for New York State to reassume the burden it so cavalierly dumped on local governments when it stopped providing care for a substantial portion of the mentally ill population, care that has been the traditional responsibility of the state.'' In a sometimes heated hearing before a half-dozen state legislators, the Mayor also suggested that he would not necessarily consult with them before placing shelters for the homeless in their districts.

Darwin's islands adapt to a new species: tourists A2 House panel presses Reagan on Salvadoran elections A4 Opposition in Canada demurs at constitutional accord A5 Allen's Japanese friend plays a behind-the-scenes role A6 Reagan's missile offer is said to reflect Weinberger's stand A8 Around the World A10 Government/Politics Legislative-judicial conflict widening in Pennsylvania A15 Congress deadlocked on restoring Social Security benefit A24 Mayor Koch disagreed that there are 36,000 homeless in the city B1 Governor Carey offers a new as- sessment plan B2 Governor outlines budget plan to Connecticut legislature B2 Assemblyman urges separate subway and rail authorities B3 Witness tells why he made pay- ments as directed by Margiotta B4 Washington Talk Briefing A28 Conference is where Congress does work that counts in the end A28 Saudi ambassador and wife have distinctive style in capital A28 General Around the Nation A14 Moon sect follower ponders Cali- fornia court order A14 Harvard to name panel to consult on sociology tenure A16 Court asked to reverse Mrs. Har- ris's murder conviction A36 Seven persons were indicted in Rockland robbery and shootout B3 Industry/Labor A.F.L.-C.I.O. delegates urge air controllers' return A20 International labor group faults U.S. flight controllers A20 Weekend Weekender Guide C1 Walking tour of hidden pleasures of Riverdale in the Bronx C1 Theater: Broadway C2 Katharine Hepburn shines in ''The West Side Waltz'' C5 ''Mozartiana'' returns to City Ballet repertory C4 Screen: ''They All Laughed'' opens C6 ''Ragtime'' is reviewed C10 At the Movies C10 ''The Hungarians,'' from Zol- tan Fabri C14 Bugs Bunny special opens C18 Music: New Ballroom opens with Clooney and Whiting C5 Wall-to-wall Beethoven at Sym- phony Space C9 Art: Islamic show at Met Mu- seum C1 Buffalo Bill exhibition at Brooklyn Museum C1 Jim Dine paintings at Pace Gal- lery C26 Auctions C30 Books: Publishing C36 ''Poems and Sketches of E.B. White reviewed C33 ''Boccaccio'' by Thomas G. Bergin reviewed C32 Restaurants C22 TV Weekend C36 Health/Science Adverse reactions reported for some taking flu shots A31 Style The evening hours A32 200 contributors tour a refur- bished White House A32 Eating out: Their way of life A32 Obituaries Jack Frizzelle, publicity man- ager at Metropolitan Museum A30 Sports Lakers dismiss Westhead as coach B5 Holzman shakes up lineup, then Knicks lose fourth straight B5 Todd, listed as doubtful, works out and feels he can play B5 Joe Frazier makes a comeback only he wants to happen B5 Red Smith on apartheid's step- child B7 Features/Notes Notes on People B4 Sports People B8 News Analysis Adam Clymer on political rami- fication of labor convention A21 Michael Goodwin on decline of S.R.O. hotel B1 Editorials/Letters/Op-Ed Editorials A34 What Taiwan wants Correcting the Council, cont. Privacy in public Hugh Price: Bronx beacon Letters A34 Tom Wicker: getting a start on START A35 Flora Lewis: a spook's buck is a buck A35 Roy M. Cohn: run Stockman out of town on a rail A35 Robert B. Reich: high-tech ri- valry A35

An article in The Living Section on Wednesday about where to buy a take- home turkey dinner gave an incorrect telephone number for the Market Din- ing Rooms at the World Trade Center. The number is 775-0582.

Senior White House aides, concerned that they do not have full information about the activities of Richard V. Allen, have ordered Mr. Allen to review his office records on his contacts with Japanese businessmen while serving as President Reagan's national security adviser, according to an Administration official. Justice Department sources, meanwhile, said the officials investigating the $1,000 payment Mr. Allen received from a Japanese magazine had been told by one of his secretaries that she had failed to follow his instructions on how to dispose of the money. The sources said the investigation showed that Mr. Allen had instructed the secretary, who was not identified, to turn the money over to the Government. But they added that she told investigators that after putting the money in an office safe, she forgot about it.

The Nuclear Regulatory Commission voted today to suspend the license for the Diablo Canyon nuclear power plant near San Luis Obispo, Calif. The license permitting the plant to load fuel and conduct low-power testing will remain suspended until the plant passes a series of seismic tests. A number of design errors related to earthquake safety have been discovered at the plant, which is near an offshore geological fault. The commission's chairman, Nunzio J. Palladino, called the action a ''strong stand'' and a ''strong sign that the commission doesn't like what it's seen.''