LEAD: The nation's semiconductor makers agreed today to form a consortium in an effort to revive American manufacturing technology in the production of computer chips. They appealed to the Reagan Administration for financial support.

CHIP MAKERS IN ACCORD ON PLAN FOR CONSORTIUM

LEAD: President Reagan today denounced as ''despicable fiction'' published reports that his wife, Nancy, had played a major role in the dismissal of his chief of staff, Donald T. Regan, and was involved in key Government decisions.

ANGRY REAGAN CALLS REPORTS OF WIFE'S POWER 'A FICTION'

LEAD: With Wall Street receiving a psychological lift from the General Motors Corporation's plans for a huge buyback of its own shares, the stock market rallied to record-breaking levels yesterday.

G.M. PLAN SPURS DOW TO A 30.93 RISE

LEAD: The Soviet Union has agreed to the principle of on-site inspection in the proposed removal of medium-range nuclear missiles from Europe, diplomats close to the negotiations here said today.

SOVIET, IN GENEVA, SAID TO BACK IDEA OF SITE INSPECTION

LEAD: Borough President David N. Dinkins of Manhattan yesterday compared the fatal shooting Saturday by New York City police of a man they say attacked an officer to a summary execution.

DINKINS SAYS KILLING OF VENDOR BY POLICE WAS LIKE EXECUTION

LEAD: Representative Jim Wright, the Speaker of the House, told Democrats on the Budget Committee today that he was ready to fight for a tax increase this year to reduce the Federal deficit even though President Reagan was expected to oppose higher taxes.

SPEAKER OF HOUSE PLEDGES TO FIGHT FOR TAX INCREASE

LEAD: Basic electricity rates of the Consolidated Edison Company will drop by 3.1 percent, or almost $500 million, over the next three years under an agreement announced yesterday by the giant utility and Governor Cuomo.

CON EDISON AGREES TO REDUCE ITS RATES BY 3% STARTING IN APRIL

LEAD: The soaring stock market, which has lifted many stocks to record highs, has not cooled corporate America's love affair with that one sure-fire way to bolster share prices and please investors: the buyback.

THE ALLURE OF STOCK BUYBACKS

LEAD: President Reagan said tonight that his policy toward Iran had ''deteriorated'' into a trade of arms for hostages and that he accepted ''full responsibility'' for the Iran-contra affair, which has thrown a shadow over his Administration for three months.

TAKES BLAME, VOWS CHANGES

LEAD: ONCE the interior designer has finished, many clients feel like new parents, proud but apprehensive.

KEEPING UP THE LOOK ONCE THE DESIGNER LEAVES

LEAD: It's a long way geographically and culturally from the tiny West Texas oil town of Wink to Dallas.

TEXAS FOOTBALL: BEYOND THE BOUNDS OF SPORT

LEAD: Jonathan Jay Pollard, the former civilian intelligence analyst for the Navy who pleaded guilty to spying for Israel, was sentenced to life in prison today in a highly emotional session in Federal District Court here.

AMERICAN GETS LIFE FOR GIVING SECRETS TO ISRAEL

INSIDE

LEAD: After five weeks of battling that culminated in an all-night session of its special committee of outside directors, Viacom International Inc.'s future has apparently been decided.

VIACOM BATTLE APPEARS OVER

LEAD: President Reagan spoke to the American people tonight in a spirit of contrition that has not been heard from the White House in a quarter century.

IN A SPIRIT OF CONTRITION  Reagan's Concession on Iran Affair Evokes Memories of Kennedy's Bay of Pigs Speech

LEAD: Carl C. Icahn, the chairman of Trans World Airlines, offered yesterday to buy USAir Group Inc. for $1.4 billion, but some analysts suggested that he really wanted to force the opposite: the sale of T.W.A. to USAir.

ICAHN BIDS $1.4 BILLION FOR USAIR

LEAD: The strongest expansion of the New York metropolitan region's economy since World War II will stop without significant improvements in job training and housing, according to two government reports released this week.

RETRAINING AND HOUSING CALLED KEYS TO GROWTH

LEAD: In another move aimed at strengthening the world banking system, the Federal Reserve and the Bank of England yesterday announced a new proposal that would require increased capital levels at banks.

FED ACTS ON BANKS' SWAP RISK

LEAD: PRESTON McADOO, who designs many of the hand-hooked rugs turned out by his family business, had been trying to draw the right kind of cow. He did not like the ones he drew, and he did not like the ones offered by his employees.

A FAMILY GOES FROM RUGS TO RICHES

LEAD: IN the White Plains Middle School classroom where Phyllis Zuber teaches home economics, the stoves are spotless and the pots and pans are stowed underneath the counters. Her seventh and eighth graders aren't busy beating batters. Instead, they are learning how to read labels in supermarkets, spotting sexual stereotypes and planning for their careers.

HOME ECONOMICS: NOT JUST STITCH AND STIR

LEAD: A sharp rise of signs of AIDS at Rikers Island reflects an impending crisis in city and state prisons in New York, justice officials said.

AIDS IN PRISON: HARD QUESTIONS FOR JUSTICE SYSTEM

BUSINESS DIGEST: THURSDAY, MARCH 5, 1987

LEAD: It is unusual, some would say imprudent or even self-fulfilling, for a law-enforcement official to publicly predict the kind of large-scale street demonstrations unseen here since the 1960's, but Police Commissioner Benjamin Ward did so Sunday, twice.

WARD, THE 60'S, AND THE NEW SEEDS OF RACIAL UNREST

LEAD: POOR Baby M. As a mother who can remember not too long ago holding buttery little babies of my own, I too want only the best for her. Yet what seems sadly apparent during the battle for her custody in Hackensack, N.J., is that neither of her biological parents may deserve her.

HERS

NEWS SUMMARY: THURSDAY, MARCH 5, 1987

Anna Djambuliovna Chakvetadze is a Russian former professional tennis player.

Anna Chakvetadze, Russian tennis player

Anna_Chakvetadze

Christopher David Cohen is an English former professional footballer. He is currently assistant head coach at Lincoln City.

March 5, 1987

Headlines from March 5, 1987

CHIP MAKERS IN ACCORD ON PLAN FOR CONSORTIUM

ANGRY REAGAN CALLS REPORTS OF WIFE'S POWER 'A FICTION'

G.M. PLAN SPURS DOW TO A 30.93 RISE

SOVIET, IN GENEVA, SAID TO BACK IDEA OF SITE INSPECTION

DINKINS SAYS KILLING OF VENDOR BY POLICE WAS LIKE EXECUTION

Billboard 200

Licensed To Ill

Slippery When Wet

The Way It Is

Invisible Touch

Control

Notable Births

Historical Context for March 5, 1987