December 7, 1983

The summit meeting of European Economic Community leaders ended today in a deadlock over proposed cuts in farm spending and Britain's demand for a $1 billion budget refund. The breakdown leaves the 10-nation Common Market on the brink of bankruptcy and facing the most difficult political crisis of its 26-year history, according to officials here. The debate over farm spending is of crucial importance to American agricultural interests because the Common Market's farm policy encourages European farmers to produce more food than the community needs by guaranteeing them high prices and keeping out inexpensive imports. Persistent Trade Tensions With the help of big community-financed subsidies, these surpluses are then sold on the world market, where, successive American administrations have complained, they compete unfairly with American agricultural exports. This results in persistent trade tensions with the United States and threats of ''subsidy wars.''

The Koch administration hopes to spend up to $400 million for six new economic development programs, including a fund to stimulate housing for middle-class families and a city high school to train students in financial services. The programs, originally proposed in a letter from Mayor Koch to Governor Cuomo, were elaborated on yesterday in a City Hall news conference by Deputy Mayor Kenneth Lipper. The other proposals - to be financed from an expected surplus generated by the Municipal Assistance Corporation - are for projects in the downtown areas of Brooklyn, Queens, Staten Island and the Bronx, more assistance to relocate businesses displaced by residential development and a reduction in utility taxes for industries. 'City Will Solidify These Ideas' The proposals are in addition to a commitment by the city to use some of the surplus to defray overruns on the Convention Center on the West Side, whose construction has been plagued by delays. The M.A.C. surplus is estimated by the city at $1 billion.

A key state official said yesterday that he thought six months could be cut from the Convention Center's completion time by the use of a new kind of space-frame construction for part of the project. The proposal is the lastest attempt to deal with production problems in the center's frame that have caused its completion date to be pushed back two years, to mid-1986. The frame, a Tinkertoy-like construction, uses a system that links rods to metal balls called nodes, which have been plagued with manufacturing problems, including hairline cracks.

Four Israelis were killed and 46 wounded when a bomb, apparently placed by a Palestinian terrorist, destroyed a crowded bus at the height of the lunchtime rush in Jerusalem. It was the worst terrorist attack there since 1979, when 3 people were killed and 50 wounded by explosives packed in a bicycle frame. (Page A1, Col. 6.) Data about Syrian antiaircraft sites in Lebanon was inadequate and American pilots met more intense fire than they expected during Sunday's bombing raid, a senior admiral said. He spoke at a Navy briefing in defense of the raid, in which two planes were lost, one airman was killed and one was captured by the Syrians. The performance of the airmen has been criticized by military specialists at home at abroad, including two former commanders of the Israeli Air Force. (A1:5-6.)

President Reagan today appointed three more people to the United States Commission on Civil Rights but refused to reappoint a prominent Republican who had criticized the Administration's civil rights policies. White House officials said they hoped the new appointees would reshape the commission in a conservative vein more consistent with the President's views. They said they hoped the commission would soon abandon its support for busing in school desegregation cases and for the use of numerical goals and quotas in affirmative action. If the new commissioners do not create a majority in support of the President on these issues, at least they can stimulate a wide-ranging debate on the meaning of civil rights, the White House officials said.