August 5, 1986

Israeli officials are contesting subpoenas from Federal grand juries investigating whether Israel illegally tried to export American technology for manufacturing cluster bombs, Reagan Administration officials said today. The subpoenaed Israelis work in their country's military purchasing office in New York. It remained unclear whether they would soon be required to make appearances before grand juries in Iowa and Pennsylvania. There were indications that the Justice Department planned to enforce the subpoenas, but one Administration official suggested late today that a last-minute agreement might permit the Israelis to submit affidavits instead.

International Britain agreed to limited sanctions against South Africa, but refused to endorse the stiffer penalties approved by six other Commonwealth leaders. A communique said the British Prime Minister had agreed to bar imports of South African coal, iron and steel if the rest of the European Community agreed to do so at a meeting scheduled for late next month. [ Page A1, Column 6. ] OPEC ministers agreed tentatively on an Iranian proposal to limit the group's oil production in a bid to halt the decline in prices. The agreement is designed to cut OPEC production to 16 million barrels a day from the current level of 20.5 million. [ A1:2-3. ]

Since he was laid off on June 20 from the ceiling components shop at the Manville Corporation here, John Felegi has found central New Jersey's job market - one of the nation's strongest - to be unfamiliar terrain. ''I've been out there, and there's nothing,'' said Mr. Felegi, 59 years old. He started working for Manville in 1951, and was earning more than $35,000 a year by 1985. ''If you are 25, or if you know how to run a computer, you've got a job,'' he said. ''But to guys like me, all this talk of economic growth seems like a bunch of bull.''

International A tentative agreement to limit OPEC oil output was reached by ministers of the organization. The Iranian proposal is intended to cut production to 16 million barrels a day from the current 20.5 million barrels. Analysts said that a cut of that size, if enforced, could halt the sharp drop in prices. There was elation at the Geneva meeting at the prospect of ending the price war that began late last year, and the news sent the share prices of blue-chip oil companies soaring. But several delegates cautioned that important parts of the accord remained to be put in place. [ Page A1. ] On the oil markets, prices posted some of their sharpest gains of the year. The futures price of West Texas Intermediate crude jumped $1.74, to $13.29 a barrel, its first move above $13 in two weeks. [ D1. ] The textile trade pact with South Korea would restrain growth in its exports to the United States to 0.8 percent annually, down from an average rate of 8.6 percent in recent years. The pact was achieved two days before a House vote on overriding a Presidential veto of restrictions on textile trade. [ D1. ]

Once the factory here and its 5,000 workers were the pride of what is now the multinational Manville Corporation. But both the asbestos plant and the asbestos work force grew old, and both were in poor shape. A month ago, as part of a national reorganization, what once would have seemed impossible came to pass: the Manville Corporation ended 74 years of production in Manville, N.J. Many workers left behind in these small central Jersey towns are twice cursed by their fate: they have been laid off in middle age and they are sick with asbestosis, an often deadly lung disorder. Since 1977, 900 of them have sued, charging that the Manville Corporation and its suppliers knew the health hazards of inhaling asbestos particles and did not warn workers.