December 4, 1981

The Federal Reserve Board today cut its discount rate to 12 percent from 13 percent, confirming a drop in interest rates as the economy continues to decline. The cut, which is effective Friday, is the second in a month. On Nov. 2, the Fed reduced the discount rate, the interest it charges on loans to banks, to 13 percent from 14 percent. The 12 percent level is the lowest the discount rate has been since last Dec. 5.

In a move to break a deadlock in the Security Council on the election of a Secretary General, Kurt Waldheim said today that he would not compete in any further ballots for the position. But aides to Mr. Waldheim made it clear that he had not abandoned his hopes of being re-elected. They said the Secretary General had decided against undergoing any further ordeal by voting. But he now runs the risk of the divided Council's agreeing on some other figure.

City Comptroller Harrison J. Goldin called yesterday for a sharp slowdown in the hiring of New York City government employees to avoid tax increases that he said could hurt the city's economy. The Comptroller's proposal put him at odds with Mayor Koch, who has said he is contemplating new taxes on personal income for next year. Mr. Koch also is considering a limit on hiring, but he said it would not be as restrictive as the one put forth by Mr. Goldin. ''It appears that his suggestions today go too far in one direction,'' the Mayor said, referring to the Comptroller's reliance on trimming the number of municipal workers and not imposing higher taxes.

International Plans for the Sinai peacekeeping force were pressed by the United States and Israel. They issued a joint statement in Washington governing participation in the projected force that American officials said should clear the way for four Western European nations to take part. But final Israeli acceptance of the formula appeared to be in doubt. (Page A1, Column 1.) A move to break a U.N. stalemate was initiated by Secretary General Kurt Waldheim, who said he would not compete in further Security Council voting on his post. The tactic was designed to introduce new candidates for consideration. If none is successful, aides to the Austrian diplomat said, he will be receptive to an offer to remain when his current term expires. (A1:2.)

The State Legislature voted tonight to override Governor Carey's veto of a bill to repeal a 193-year-old law requiring that all property be assessed at full value. The vote was a major victory for the legislative leaders, who had assembled the compromise measure after several years of sometimes bitter negotiations, only to see their work rejected by Mr. Carey last month. The law will essentially keep current assessment systems intact, but it includes a number of special provisions for New York City and Nassau County. Proponents of the law said it would protect the state's homeowners from tax assessment increases, but opponents said it would leave in place a crazy-quilt pattern of assessment that discriminates against many homeowners. One legislator said that the new law preserves a system that is ''blatantly racist.''