January 4, 1986

A decision by the Government this week to close the Roman Catholic radio station here appears to be the latest step in a three-month campaign against non-Sandinista press and broadcasting outlets. Since October, two periodicals have been shut down, and editors of two others have been warned to stop publishing. In one case, a labor union magazine was closed because the Government said it did not have enough censors to read and check its contents. The two editors who have been warned to stop circulating material are trying to continue doing so through various subterfuges.

President Reagan conferred for four hours here today with President Miguel de la Madrid of Mexico and pledged that the United States would continue to help the Mexican Government combat its financial problems. The meeting in this Lower California border town came at a time when Mexico was seeking new foreign capital to meet its $96 billion external debt amid domestic economic difficulties. ''Mexico's debt burden remains a serious challenge,'' Mr. Reagan said in public remarks to his host, adding that the United States ''remains ready and willing'' to help. Asking Support for Bank Loans Although Mexico is not seeking direct financial aid from the United States, Administration officials said it was asking Washington's support in obtaining loans from commercial banks and international lenders, like the World Bank and the International Monetary Fund. They said Mr. Reagan's remarks were a clear signal that he was prepared to offer such support.

At Princeton University, Frankie with private bath, carpet and large windows overlooking an expansive lawn. Nearby is a golf course. At home, in the South Bronx, he lives in a public housing project covered with graffiti, near burned-out buildings, abandoned homes and filth. As a freshman at Princeton, Mr. Cruz reads about psychology and Shakespeare and discusses politics and philosophy with some of the brightest, most articulate - and most affluent -students in the country. But when he returns home for vacations, as he did this holiday, he encounters neighborhood peers, some of whom dropped out of high school or work in gas stations and sandwich shops and have never read Shakespeare or heard about the Ivy League.

There was a mood of uncertainty today over whether the Reagan Administration would take military action in response to the airport terrorist attacks last week in Rome and Vienna. A United States carrier group headed south toward Libya, but President Reagan asserted there was nothing unusual about the ship movements. But Mr. Reagan and other officials continued to refuse to comment on whether a military strike might be ordered against Libya for its purported support of the Rome and Vienna attacks. Other Ships Put on Alert This approach of asserting that everything was routine, but at the same time leaving open the possibility that the carrier, the Coral Sea, might go into action, produced considerable speculation but no clear answers.

Inmates who took over the West Virginia Penitentiary released their seven remaining hostages today and returned control of the prison to the state. Three prisoners were killed in the uprising. Gov. Arch A. Moore Jr. said he believed some inmates had set up kangaroo courts to decide ''who they were going to destroy.'' He said that there would be no amnesty for the killers and that they would be prosecuted fully where murder cases could be established.