LEAD: The New York City Health Department will more than double its capacity to offer voluntary testing of blood for the AIDS virus by opening two new testing sites this summer and by extending testing to some private and municipal teaching hospitals, a key health official said yesterday.

NEW YORK CITY TO ADD 2 SITES FOR AIDS TESTS

LEAD: After $2 billion in losses and 25,000 layoffs, the nation's semiconductor industry - which makes the chips that run everything from computers to spy satellites to dishwashers -appears to have made a long-awaited rebound, industry executives and analysts say.

U.S. CHIP MAKERS RECOVERING

LEAD: AEROSPACE engineers around the country, responding to a new challenge, have begun to develop the rocket that some expect to carry the nation into its next phase of space exploration and exploitation.

JUMBO ROCKET LOOMS LARGE IN U.S. PLANS

INSIDE

LEAD: THE ECONOMY  The U.S. semiconductor industry appears to be rebounding, according to industry executives and analysts. The success of the Reagan Administration's trade sanctions against Japan and a sudden surge in purchases of personal computers have spurred demand and driven up profit margins.

BUSINESS DIGEST: TUESDAY, MAY 26, 1987

LEAD: Prime Minister Jacques Chirac, with his political allies deeply divided over how to deal with the growing strength of the far right National Front Party, has publicly repudiated what he called ''intolerance and sectarianism'' in France.

CHIRAC, HIS COCLEAGUES SPLIT, ATTACKS RIGHTIST 'DEMAGOGY'

LEAD: In an encouraging step toward a revolutionary new form of treatment, scientists have transplanted a human gene into monkeys and it successfully directed production of a desired enzyme.

GENE THERAPY FOR HUMANS MOVES NEARER TO REALITY

LEAD: As evidence has mounted of President Reagan's personal involvement in the Iran-contra affair, a quandary has been presented to some Republican members of the joint Congressional committees.

REPUBLICANS ON IRAN-CONTRA PANEL AT ODDS OVER BEST TACTICS TO USE

LEAD: This village of seaside estates and elegant, brick-cobbled sidewalks is putting summer visitors under wraps.

COVER UP, SOUTHAMPTON TELLS VACATIONERS

LEAD: WHY do some people infected with the AIDS virus fall ill and soon die while other virus carriers remain healthy for years?

DOES THE AIDS VIRUS WORK ALONE?

LEAD: Former Labor Secretary Raymond J. Donovan and seven other construction executives were acquitted yesterday of state charges of fraud and grand larceny after an eight-month trial in the Bronx.

DONOVAN CLEARED OF FRAUD CHARGES BY JURY IN BRONX

LEAD: The nation's leading steel producers, who have looked to the Federal Government for assistance in the form of import quotas, now contend that more Government initiatives are needed.

AID ASKED FOR STEEL INDUSTRY

LEAD: The Soviet Union has stopped jamming Voice of America radio broadcasts into the country for the first time in seven years, officials of the American radio service announced today.

YEARS OF JAMMING VOICE OF AMERICA HALTED BY SOVIET

LEAD: Just outside the windows of the room where the Framers of the Constitution first convened 200 years ago today, that long-ago moment of high anxiety was celebrated this afternoon with pageantry and pride, but also with subdued reflection.

PAGEANTRY AND THE IDEALS OF 200 YEARS

LEAD: Sister Beverly Bligh and Sister Grace Reape rode from Jersey City to the beach on Memorial Day weekend, but they did not actually get on the sand. They looked at it from the Boardwalk. To go on the beach at Belmar costs $8 a person on weekends, too much for them.

The Beach War: Rising Fees, Rising Tempers

LEAD: Ecolab Inc., embittered by cutthroat competition on the supermarket shelf, has decided to sell its consumer dishwasher detergent business to Joh. A. Benckiser G.m.b.H. of West Germany for $242.5 million.

GERMAN CONCERN TO BUY ECOLAB DETERGENT UNIT

LEAD: Mexico's duty-free assembly industry, originally conceived as a program to link manufacturers in the United States and Mexico, is increasingly being regarded by Japan and other countries as a way to further their penetration of the American market while avoiding trade squabbles.

PLANTS IN MEXICO HELP JAPAN SELL TO U.S.

LEAD: For decades, this small city on the Susquehanna River has celebrated Memorial Day with a seemingly timeless ritual. It would begin with a slightly ragged parade down Main Street and end with solemn speeches before a worn monument bearing the names of fallen servicemen from World War I, World War II and the Korean

A MONUMENT OF GRIEF FOR DEAD MARINES

LEAD: On most days, outside American diplomatic missions here and elsewhere in Turkey, small knots of people gather -sometimes whole lines of them -clutching documents, some false, and harboring dreams, some in vain.

IRANIANS FLEE TO TURKEY AND DREAM OF U.S.

LEAD: Early this month three Airbus A-300's, some of the best planes in Eastern Airlines' fleet, were transferred to Continental Airlines under a lease agreement. Three more will follow next month, reconditioned and painted Continental's colors.

A TENSE CLIMATE FOR EASTERN

LEAD: During the Holocaust memorial ceremony in Brighton Beach last June, each of the neighborhood's synagogues sent forth one of its faithful to light a candle. A stooped old man named Jacob Tannenbaum represented Temple Beth El, and those who attended the service recall that as he lit the wick he began to cry.

HAUNTING ISSUES SURROUND JEWISH NAZI CAMP OVERSEER

LEAD: The Israeli Supreme Court has ruled that a loyal Moslem officer in the Israeli Army was framed by Shin Beth, the domestic intelligence service, and unjustly sentenced to 18 years in prison.

COURT FINDS ISRAEL FRAMED A MOSLEM

LEAD: One hundred times the bailiff asked for the verdict. And 100 times it came back ''not guilty.''

JURY CHIEF SAYS NO INDICTMENTS WERE JUSTIFIED

LEAD: The price of Genentech Inc. stock has been dropping steadily on expectations that the Food and Drug Administration will place restrictions on the use of the drug that is expected to become the company's biggest product. An advisory committee of the F.D.A. is set to hold a public hearing Friday on the drug, known as tissue plasminogen activator, or T.P

F.D.A. TO GET MORE DATA ON KEY GENENTECH DRUG

LEAD: A city so richly diverse as New York is more than the daily dance or jab of its citizens getting through the rush, more than the groan of its buses or the wail of its sirens, more than the clash of its politicians.

THINKING: THE TALK OF THE CITY

Olcay Şahan is a Turkish professional football manager and a former player who played as a winger or as an attacking midfielder. Born in Germany, he played for the Turkey national team internationally.

May 26, 1987

Headlines from May 26, 1987

NEW YORK CITY TO ADD 2 SITES FOR AIDS TESTS

U.S. CHIP MAKERS RECOVERING

JUMBO ROCKET LOOMS LARGE IN U.S. PLANS

INSIDE

BUSINESS DIGEST: TUESDAY, MAY 26, 1987

Billboard 200

The Joshua Tree

Slippery When Wet

Look What The Cat Dragged In

Licensed To Ill

Graceland

Notable Births

Historical Context for May 26, 1987