January 25, 1987

LEAD: On the arid flatlands south of this capital, a cemetery is growing quickly.

LEAD: LAST week's killing of 12 protesters by Government policemen substantially raised the already enormous pressure on President Corazon C. Aquino and appeared to set the limit on her policy of ''maximum tolerance.''

LEAD: On the boardwalk in the 1940's, dancers did the Lindy to music from a juke box in front of ''Meyer's Knishes.'' Nearby was the Takee-Cup stand where you bought chow mein served in a cup made out of noodles. You ate the chow mein, then you ate the cup. The bars featured a kind of juke box with a screen that played ''soundies,'' short subjects of big bands playing their hits, like Artie Shaw and his Orchestra doing ''Star Dust.

LEAD: TO LOOK at her, you wouldn't know. An outgoing, green-eyed, blonde child, she looks and acts like any other 4-year-old, stealing potato chips from her brother and sister and jumping on her daddy's lap.

LEAD: Treasury Secretary James A. Baker 3d is expected to tell President Reagan Monday that the two-year fall of the dollar that accelerated late last month has been good for the economy, an Administration aide said today.