January 19, 1982

Paul Craig Roberts, the Administration's most fervent advocate of supply-side economics, has resigned as an Assistant Secretary of the Treasury to accept appointment to the newly endowed William E. Simon chair in political economy at Georgetown University, it was announced today. Mr. Roberts, a champion of the three-year tax cut enacted last year, was asked about rumors that he was leaving because he was dissatisfied with the direction of President Reagan's economic policy. ''None of us really know the direction it's going, do we?'' he replied.

The Essex County Executive, Peter Shapiro, proposed today a cut of about 10 percent in the property tax rate for the county, which is New Jersey's most populous and includes the city of Newark. It was not clear which towns would be affected or how much of a tax break, if any, homeowners might receive. Donald V. Biase, director of the county's Division of Budget and Management, said a reduced county tax rate acting on inflated property values would raise the same amount of tax revenue as last year - $146.3 million. Services to Be Maintained Mr. Shapiro, in his message on the proposed budget for 1982, said that, even with its reduced tax rate, the county would be able to maintain its services and fill in the gaps created by Federal budget cuts.

International A U.S. military attache was slain outside his home in Paris by a solitary gunman who escaped. The murder of Lieut. Col. Charles Robert Ray came two months after the attempted shooting of Christian A. Chapman, charge d'affaires at the American Embassy. The police called the two attacks very similar. (Page A1, Column 3.) Thousands of Indians were arrested in advance of a one-day national strike called for today to protest the economic policies of Prime Minister Indira Gandhi. Most of those seized are union activists. (A1:1.)

Mayor Koch's preliminary plans to balance his budget for the next fiscal year rest in good part on dozens of proposed efficiencies and changes in the way certain segments of local government go about their daily business. They range from eliminating watchmen in some public buildings between midnight and 8 A.M. (saving $420,000) to requiring all city prisoners to leave their cells during recreation periods so that guards are not needed for those who might wish to remain behind (saving $463,000). No single proposal is worth a great deal of money, not to a city that expects to spend $15.7 billion in fiscal 1983. But altogether they produce a potential saving of $158 million. That goal is not only unusually ambitious, but also four times the scale that the Koch administration was talking about only a few months ago.

Israelis ask Egyptians to alter border a bit A3 Syrian paper says Soviet agrees to provide more arms A3 U.S. official has talks with Ango- lan A4 Around the World A5 Greece agrees to resume repair of Soviet ships A6 French Socialists shrug off two setbacks A8 Unesco conference on journalism opens in Mexico A13 Security tighter at U.S. embas- sies since Iran hostage seizure A16 High Polish official denies Walesa will be freed soon A17 Government/Politics Supreme Court Roundup A14 Labor Department proposes voluntary safety programs A19 Rep. Richmond's payroll ar- rangements raise questions B3 Connecticut Senate sends $36 mil- lion tax bill to Governor B3 Washington Talk Briefing A22 Clark settling in as national se- curity adviser A22 Congress gives itself a tax break A22 General Around the Nation A18 Cold wave strands thousands in the Northeast B2 New York City water shortage held no longer an emergency B2 Abbott denies violence attributed to him in prison B3 Hearing to start on asbestos com- plaint in Groton B12 PARKING REGULATIONS Because of snow, alternate-side parking is suspended in New York City today. All other rules remain in effect. Science Times Dinosaur extinction may have fallen from the sky C1 The fall and rise of a controver- sial biologist C1 About Education: A blow is struck for clear English C1 Science Watch C2 The Doctor's World: ''New'' dis- eases are not so new C3 Science Q&A C3 Education: The German lan- guage is losing out C5 Style Notes on Fashion A23 Boutiques: notable newcomers A23 A sense of adventure returns to men's fashion A23 Arts/Entertainment Charles Rosen gives all-Beetho- ven piano recital C6 New Park Avenue plaque honors Herman Melville C7 Three Mannes alumni join in benefit for school C7 Piers Paul Read's novel ''The Villa Golitsyn'' reviewed C10 Four new and recent dances by Bill Cratty C10 ''King of America,'' story of an ambitious Greek immigrant C10 Film about life in a mental insti- tution on CBS-TV C10 James Nederlander buys Lon- don's Aldwych Theater C10 Obituaries Varlam Shalamov, Russian writer on Stalin's labor camps A24 Sports N.B.A. referee admits he erred D24 Rangers' unbeaten streak halted at five in 6-2 loss to Maple Leafs D25 Nancy Lieberman still fights for league D25 Mare killed in tragic accident at Aqueduct D25 Reynolds, 49ers' senior member, is the team's film critic D25 Ira Berkow on Red Grange, the Galloping Ghost D26 Brown's Bengals are a no-frills, no-nonsense team D26 A24 (B2:2.) Miss Flanders wins first Cup downhill for U.S. in three years D26 Change in tennis Masters format expected D27 Yankees shuffle coaching staff D27 Features/Notes Notes on People A21 Going Out Guide C8 Sports People D27 News Analysis Michael T. Kaufman on outlook for new Pakistani council A2 Clyde Haberman reviews the Koch budget plan B1 Editorials/Letters/Op-Ed Editorials A26 It's still tax-exempt hate A not-so-neutral Neutrality Act Folly in New York's courts Jack Rosenthal: political lib Letters A26 Sydney H. Schanberg: fairness in hard times A27 Tom Wicker: where the buck stops A27 Angela E. Stent: Bonn pays the piper A27 Bernard Wolfman: law, cut on a bias A27