July 17, 1986

The Defense Department suspended Litton Industries today from bidding for Government contracts, following a subsidiary's indictment Tuesday on 325 counts of criminal fraud. The decision leaves the military temporarily unable to turn to its 19th-largest supplier for many kinds of work, including construction of major combat ships for the Navy. The suspension does not cancel existing contracts, but they cannot be renewed, Pentagon officials said. The Government said the suspension was temporary pending a review of the circumstances surrounding yesterday's indictment. The company will be given an opportunity to appeal the suspension, and the Government promised to take into consideration that only a small unit of Litton was involved in the indictment, as well as the company's assertion that steps have been taken to remedy problems.

The blood bank that serves the New York metropolitan area said yesterday that it was working to identify about 700 people who received transfusions since 1977 that may have been contaminated with the AIDS virus. The agency, the Greater New York Blood Program, said it expected to begin notifying these patients this fall. The patients received blood given in earlier donations by people who have recently tried to donate blood and were found in a screening test to be carrying antibodies to the AIDS virus. Infection with the virus does not necessarily lead to AIDS, an incurable depletion of the immune system.

THE invitation reads: ''Jacqueline Kennedy Onassis requests the honor of your presence at the marriage of her daughter, Caroline Bouvier Kennedy, to Edwin Arthur Schlossberg on July 19, 1986, at 3 P.M., the Church of Our Lady of Victory, Centerville, Massachusetts.'' That was not Mrs. Onassis's only request. She has let it be known that advance publicity about her daughter's wedding was unwelcome. ''We made up our mind not to give out any information,'' Mrs. Onassis's longtime spokesman, Nancy Tuckerman, said. That is, not until a five-page fact sheet is released following the wedding. The wedding's suppliers - designers, caterer and hotel, for example - have all been asked to keep mum.

Outside the Roman Catholic church on East 116th Street, so much has changed. Gone are Ferraro's Bakery and Rosie's Candy Store. Gone are Dr. Miraglia the optometrist and Dr. Spinelli the urologist. Gone, in other words, is all but the shrunken shell of the Italian-American community that once flourished in East Harlem. But once each year, those who have left come back.

Because photographs were transposed, a caption in the Advertising Column in some copies yesterday misidentified the two partners in the design firm W.B.M.G. Inc. Milton Glaser was pictured on the right and Walter Bernard on the left.