May 17, 1982

Foreign ministers from the 10 Common Market countries failed to reach agreement tonight on an extension of economic sanctions against Argentina, which were imposed a month ago in support of Britain over Argentina's seizure of the Falkland Islands. The foreign ministers agreed to meet again Monday night, just hours before the midnight expiration of the sanctions, in a final attempt to decide whether to extend the measures. The failure represented an additional blow to Britain's hopes for an unequivocal display of European Economic Community support and a further hindrance to any major invasion, which is believed unlikely to occur while an extension of the sanctions is being considered. 'There Is Time' ''The measures taken already do not expire until tomorrow night, and so there is time for us to take a decision tomorrow,'' Francis Pym, the British Foreign Secretary, said as he emerged from tonight's 90-minute session. ''We need to take that decision, and I expect that we will.''

In this mile-square borough, the elevation is 913 and the population slightly less. Downtown amounts to a pizza parlor across the street from a pharmacy. Fresh blueberry muffins cost 30 cents and a barbershop quartet warbles in the local school on Saturday nights. The government, still known by its English title, the Board of Warden and Burgesses, tends almost exclusively to matters of street lights, recreation and the police force, which consists of one parttime officer.

International Two Argentine ships were attacked by British planes in the channel between the two main Falkland Islands, and one of the ships was abandoned by its crew, the Defense Ministry announced in London. The attacks were carried out by harrier jets from the carrier Hermes. One of the jets was struck by Argentine antiaircraft fire, but returned safely, the British said. The two ships were believed to be supplying food to the Argentine troops on West Falkland, the more sparsely populated of the two islands. (Page A1, Column 6.) The U.S. Embassy in Buenos Aires denied that it was guilty of any ''inappropriate conduct'' in the Falklands crisis. The unusual statement followed Argentine newspaper reports that Ambassador Harry W. Shlaudeman and other embassy officials had met with opposition political leaders in an attempt to ''destabilize'' the military junta lead by Gen. Leopoldo Galtieri. The newspaper reports had cited unidentified sources high in the Government. Argentine journalists and Western diplomats said the sources for the accusations were leading officers in the junta. (A1:4-5.)

OPEC convenes in Ecuador this week for its semiannual price-setting meeting amid strong signs that the world oil oversupply is ending. The mood of crisis surrounding the group at its last meeting appears to have dissipated. (Page D1.)

British warplanes attacked two Argentine supply vessels today in the channel between the two main Falkland islands, forcing the crew of one to abandon ship, the Defense Ministry announced tonight. The attack came a few hours after Defense Secretary John Nott said that it might be only a matter of days until Britain had to take more decisive military action in the South Atlantic. Harrier jets from the carrier Hermes carried out the attack. One of the two planes was hit in the tail by Argentine antiaircraft fire but returned safely, according to the British. Argentina acknowledged the attack, saying one ship had been set afire.