June 16, 1982

The Supreme Court ruled today, 5 to 4, that children who are illegal aliens have a constitutional right to a free public education. The Court said that a Texas law, which was declared unconstitutional earlier in two separate rulings by the Excerpts from opinions, page D22. United States Court of Appeals for the Fifth Circuit, violated the children's constitutional right to equal protection of the laws. In an opinion by Associate Justice William J. Brennan Jr., the Court struck down the statute, which cut off state funds from local school districts for educating children who had not been ''legally admitted'' to the United States. Under that law, the local districts could either charge the children tuition or bar them from school.

The Drysdale Securities Corporation, a 92-year-old stock and bond trading firm, announced yesterday that it was liquidating its business. The company's brief statement offered no reason for the liquidation. But it appeared to be linked to the troubles that developed after its offspring, Drysdale Government Securities, shook the markets by defaulting last month on $160 million in interest payments due on Treasury securities it had borrowed from other firms. Although Drysdale Securities had tried to separate itself from Drysdale Government Securities, which it had spun off as a separate operation in January, a cash squeeze developed at the parent company. Banks reportedly tightened up on credit, and others placed restrictions on business done with the firm.

A combination of the wrong products and a fickle toy market were the leading factors in the bankruptcy proceedings of Mego International Inc., company officials and industry analysts said. Mego, which built its business on celebrity dolls like Batman, King Kong and Farrah Fawcett, sought protection under Chapter 11 of the Federal Bankruptcy Act on Monday. Some analysts interviewed mostly blamed the company's line of toys. ''There was a lack of exciting new product,'' said David S. Leibowitz, vice president of the American Securities Corporation, a New York brokerage firm.

A picture that accompanied a dispatch from Mauritius last Thursday was published in error. It showed Harish Boodhoo, the head of the Hindu Organization of the Mauritian Socialist Party. The person mentioned in the caption - Paul Berenger, leader of the opposition - was correctly pictured Sunday on page 3.

An Israeli commander called today for the withdrawal of all Syrian forces stationed in the Beirut area as Israeli armored units tightened their grip on the city. Syria rejected the demand. Israeli and Syrian forces jockeyed for position around Beirut and along the Beirut-Damascus highway in what appears to be an attempt to strengthen their military positions. The redeployment resulted in a firefight between Israeli armored units trying to move into Shuweifat, just south of Beirut airport, and Syrian and Palestinian artillery units trying to hold them back, Lebanese Government sources said. The Israelis succeeded in entering Shuweifat.