March 14, 1985

The Senate Budget Committee, on a straight party-line vote, approved a deficit reduction package tonight that would sharply lower projected military spending and eliminate for one year a cost-of-living increase for Social Security. The package would end some domestic programs and cut, but not abolish, many others that President Reagan wanted to eliminate. The plan, which would cut $55.1 billion from the projected deficit in 1986 and $296.7 billion over three years, includes no tax increases. Intense Negotiations The 11-to-9 vote, with one Republican and one Democrat voting present, followed a day of intense negotiating among the 12 Republican members of the committee, led by the chairman, Senator Pete V. Domenici of New Mexico, in an effort to break an impasse and get a plan out of the committee to the Senate floor. Earlier today, Mr. Reagan accused the committee of a ''full-scale retreat'' from the battle to reduce domestic spending and warned that he would veto any tax increase Congress might pass this year.

In the middle of a week when highly ornamented, decorative clothes were the norm, Giorgio Armani brought cheers with his showing of strictly tailored coats and suits. There were indeed some fanciful evening styles, but it was mainly the fabrics that were ornate. The evening cuts were simple and the designer maintained that they should be worn in a casual manner, much like his daytime styles. The collection was presented Tuesday night in the theater of the palace on the Via Borgonuovo, where the designer lives. At the end, the models posed in a double-tiered stage set, each in her own cubicle. The designer stepped to center stage and the audience exploded. The collection introduced a classic note to the wildly exuberant mood of the fall ready-to-wear shows and it was appreciated. Classic, for Armani, is not boring. The designer who popularized the oversize blazer after he started his business 10 years ago has other tricks up his sleeve.

It took the investigators looking into the collapse of E.S.M. Government Securities Inc. less than hour to discover that, for nearly a decade, the firm had hidden hundreds of millions of dollars in losses in an affiliated dummy company. But trying to determine precisely how the money was lost - and how E.S.M. operated - has led the investigators into a complex tangle of records providing no clear answers. But one persistent, puzzling question is how Marvin L. Warner, an unusually savvy and successful entrepreneur, could have been caught up in the E.S.M. web. Throughout the firm's nine-year history, there are strong and continuing links between Mr. Warner and Ronald Ewton, the 42-year-old founder of E.S.M. Mr. Warner, 65, is a politically influential man who is prominent in Florida and Ohio, as well as in his native Alabama. Mr. Warner initially made his fortune in home building, and then ventured into banking and professional sports. (Once a part owner of the New York Yankees, he is now the principal owner of the Birmingham Stallions football team.) A Democrat who supported his party financially, Mr. Warner was Ambassador to Switzerland from 1977 to 1979.

THURSDAY, MARCH 14, 1985 International A Bush-Gorbachev meeting in Moscow that lasted 85 minutes prompted the Vice President to say he believed ''we can move forward with progress.'' The official Soviet press agency Tass said that Mr. Gorbachev, the new Soviet leader, had affirmed his readiness ''to work in practice'' to improve relations with the United States. (Page A1, Col. 6.) Chopin's funeral march echoed across Red Square as Konstantin U. Chernenko was buried in the Kremlin. The ceremony was rich in pomp and Russian circumstance. (A1:4-5.)

A dispatch from Austin on Feb. 25 about Republicans' political gains in Texas incorrectly described the move by two former Congressmen - Kent Hance and Jack Hightower - into law practice. They have joined an existing firm, Boyd, Veigel, Gay & McCall.