December 15, 1983

The United States has demanded that the Salvadoran Government exile or expel a number of civilians and military officers involved in right-wing death squads, according to Salvadoran political sources. In exchange for meeting the demands, the Administration has promised to increase military aid to El Salvador substantially, according to the sources. The reports were independently confirmed. What will happen if the Salvadorans fail to take action against those suspected of death-squad activity remained unclear.

The battleship New Jersey opened fire for the first time against targets in Lebanon today, hurling 1,900-pound shells at Syrian antiaircraft positions in the mountains east of here. Maj. Dennis Brooks, a Marine spokesman, said the 57,335-ton New Jersey and two other warships began firing at 3:37 P.M., five minutes after a pair of Navy F-14 reconnaissance planes were fired on from Syrian-controlled territory. (In Washington, Pentagon officials said the tour of the New Jersey off Lebanon would be extended until spring, when she is to be relieved by the Iowa, a sister ship. Page A18.

After more than 100 years of corporate life, first as an independent company and then as the manufacturing arm of the American Telephone and Telegraph Company, the Western Electric Company will be dissolved on Jan. 1, A.T.& T. said yesterday. The giant company's people and plants will spread among other divisions of the new A.T.& T. Western Electric has become virtually synonymous with the telephone in America and its manufacturing expertise has long been held up as an example of how to do things right. But its name will survive only in corporate history and as a brand on some - but not all - of the equipment A.T.& T. produces. A newer organization, A.T.& T. Technologies, set up to meet A.T.& T.'s competitive needs after divestiture, will assume Western Electric's corporate charter, its financial obligations and its other commitments, officials said at a news conference yesterday.

Three present and former judges were among 10 men indicted today on charges of corruption after a three-and-a-half-year Federal investigation of the Cook County Circuit Court. The undercover operation, called Operation Greylord, was conducted by the United States Attorney's office and the Federal Bureau of Investigation with the cooperation of local law-enforcement officials. ''Corruption within the Cook County judicial system was something that had been rumored and suspected for many years in Chicago legal circles,'' said United States Attorney Dan K. Webb, calling Greylord the longest undercover operation in United States history. Charge of Taking Bribes Among those indicted by a Federal grand jury were Judge Wayne W. Olson, who was charged with soliciting and receiving $9,530 in bribes from two lawyers, James Costello and Bruce Roth. In addition, it was charged that Judge Olson had an arrangement with Mr. Costello to be paid half the money the lawyer received as refunds from bonds his clients posted as defendants in the judge's court.

The Advertising column in Business Day on Nov. 30 misstated the findings of a survey of company executives on the subject of corporate advertising. A majority disagreed with the statement ''Corporate advocacy advertising is a blatant misuse of stockholder money.''