LEAD: The Pennzoil Company appears to be leaning toward a major acquisition in the oil industry as the best way to use the $3 billion settlement it will receive next year from Texaco Inc., according to a letter that Pennzoil's chairman and chief executive sent to shareholders last week.

Pennzoil May Seek An Oil Deal

LEAD: Stock prices fell again yesterday in lackluster year-end trading, and some Wall Street experts attributed the decline to the dollar's weakness and tax-related selling.

Dow Falls 16.08 Points on Slow Day

LEAD: A Transit Authority program to revise service on all 200 of New York City's local bus routes, some of which have not been studied for decades, is resulting in schedule reductions averaging about 10 percent.

Bus Routes Cut 10% as Service Is Re-examined

LEAD: Sixteen years of Republican control of Suffolk County ends Friday as a Democrat, Patrick G. Halpin, moves into the County Executive's office.

After 16 Years of Republicans, A Democrat at Suffolk's Helm

LEAD: Prospects for relief in the third-world debt crisis brightened yesterday with an innovative proposal in which banks would forgive billions of dollars of Mexican debt in return for bonds of lesser value issued by Mexico. The bonds would be backed by United States Treasury bonds bought by Mexico.

NEW WAY OFFERED TO RELIEVE CRISIS IN 3D WORLD DEBT

LEAD: Delia Torres and her husband, Michael Cruzado, and their friend Randy Semiday were sitting quietly in the plywood and tin tumbledown shack that Ms. Torres and Mr. Cruzado share on 6th Street near the corner of Avenue C on the Lower East Side. Outside, snow was on the wind. Inside, a cat from a grab bag of forebears prowled the corners of the heatless hut.

About New York; Intense Nights In a Cold Shanty On Sixth Street

LEAD: Seeking to remove the legal and other obstacles to its acquisition of the E.F. Hutton Group, Shearson Lehman Brothers Holdings Inc. said yesterday that it was raising the cash portion of its bid, lowering the debt portion and sweetening the terms on the debt.

Shearson Is Revising Hutton Offer

LEAD: The president of the United States Catholic Conference insisted yesterday that the nation's Roman Catholic bishops stood by a policy paper that gave qualified support for teaching about condoms in AIDS education programs.

CATHOLIC LEADER REBUTS O'CONNOR ON CONDOM ISSUE

LEAD: The son of the founder of the Emery Air Freight Corporation announced his retirement as chairman and chief executive yesterday, and he was replaced by a board member who had never worked for the company. No reasons were given for the unexpected moves.

Emery Air Freight Chairman Retires

LEAD: President Reagan's national security adviser made it clear in a letter distributed today that the Soviet Union had reserved the right to abandon a proposed arms-reduction accord if the United States tested ''Star Wars'' components in space.

REAGAN AIDE SAYS MOSCOW OPPOSES 'STAR WARS' TESTS

LEAD: YES, yes. We know. The Russian chap with the broad smile and ready handshake was here recently and it was very exciting. But he and his wife have gone back to the Soviet Union and now there are pressing domestic concerns to mull. New Year's Day is around the corner, and if we don't do something fast, it's going to be tear-open-the-corn-chip-bag-and-mix-the-s our-cream-with-onion-powder time.

A New Year's Day of Television, Football and Food

LEAD: For his 50th birthday, James M. Fox got something he had always wanted - the New York office of the Federal Bureau of Investigation.

Fighting Crime and Inflation: New York Gets F.B.I. Chief

LEAD: After three years of staggering losses, executives in the oilfield service industry thought that the worst was finally over last summer. Oil prices went as high as $22 a barrel and exploration for new oil in the United States began to accelerate, increasing the demand for the drilling rigs, casing, pipe and other equipment and services needed to find and produce new reserves.

Hopes Fall for Oil-Rig Suppliers

LEAD: SMORREBROD is almost easier to make than to pronounce. This decorative, infinitely varied Danish open-faced sandwich is certainly simple and delicious to eat.

Smorrebrod: Danish Way With Bread

LEAD: The first space shuttle flight since the Challenger disaster is being delayed because of the failure of a redesigned rocket nozzle component in a recent test firing, the space agency announced yesterday.

Shuttle Rocket Test Discloses Flaw That Will Delay Scheduled Flight

LEAD: The American economy, long dominated by its free-spending consumers, is rapidly being transformed into one whose growth depends heavily on producing goods for foreign markets.

American Economy Is Reported Shifting To Exports to Grow

LEAD:  8 Vie for Atom Smasher  Eight states, including New York, are finalists in the national competition for the $4.4 billion atom smasher, a selection panel says. Page B7.  Slaying on Park Avenue  A retired advertising executive was bludgeoned to death in his Park Ave-nue apartment, and his son-in-law was arrested in the slaying.

INSIDE

LEAD: According to Argentine court records, friends of Maj. Norberto Bianco and his wife, Susana, vividly recall the couple's delight when, unable to have children of their own, they adopted a baby girl and then a baby boy in the mid-1970's.

Argentines Fight for Orphans of a Dirty War

LEAD: A 77-year-old retired advertising executive was found bludgeoned to death yesterday in the apartment on Park Avenue in Manhattan where he lived alone.

Retired Ad Executive Found Slain on Park Ave.

LEAD: The Commodity Futures Trading Commission has intensified its surveillance of the copper market while an impending shortage has sent prices soaring, according to agency officials.

Soaring Copper Market Closely Watched by U.S.

LEAD: Homeless people packed New York City's shelters and transportation centers last night as temperatures plummeted into the teens and gusty winds created wind chills of below zero.

Cold Sends Homeless To Shelters

LEAD: Hundreds of homeless people live in the park behind the sprawling shelter here, where blue tents line the fence and fires flicker all night in steel drums. Tent 31, where Jay Martin lives, is decorated with a small American flag, an ironic reminder of Mr. Martin's war service and his failure to find a way into the mainstream of

Nation's Homeless Veterans Battle a New Foe: Defeatism

LEAD: THE restaurant industry has traditionally been a haven for immigrants, some of them illegal aliens. But restaurants, like other American industries, now must comply with a tough new immigration law. So far, restaurant owners say, the new law has meant, mainly, an increase in paper work and a shortage of workers to fill low-level jobs.

Restaurant Owners Adjusting To the New Immigration Law

LEAD: INTERNATIONAL  Prospects for relief in the third-world debt crisis are brighter. Under an innovative proposal, banks would forgive billions of dollars of Mexican debt in return for bonds of lesser value issued by Mexico. The new bonds would be backed by United States Treasury bonds bought by Mexico.

BUSINESS DIGEST: WEDNESDAY, DECEMBER 30, 1987

LEAD: THE Reagan years, which embodied a dramatic effort to restructure and revitalize the economy, are winding up with the dollar falling, the external deficit widening, the stock market still in a state of shock after its steepest fall in history and wide expectations of sluggish growth or recession in the

Economic Scene; Worrying About Reagan's Legacy

Jakub Nakládal  is a Czech former professional ice hockey defenseman who last played for HC Dynamo Pardubice of the Czech Extraliga (ELH).

Jakub Nakládal, Czech ice hockey player

Jakub_Nakládal

Stella Nomzamo Sigcau was a South African politician. Sigcau was also the first female Prime Minister of the bantustan of Transkei before being deposed in a military coup in 1987. After Transkei was merged into South Africa following the end of apartheid, Sigcau became a minister in the cabinets of Nelson Mandela and Thabo Mbeki until her death.

Stella Sigcau, Prime minister of the South African Bantustan of Transkei, is ousted from power in a bloodless military coup led by General Bantu Holomisa.

December 30, 1987

Headlines from December 30, 1987

Pennzoil May Seek An Oil Deal

Dow Falls 16.08 Points on Slow Day

Bus Routes Cut 10% as Service Is Re-examined

After 16 Years of Republicans, A Democrat at Suffolk's Helm

NEW WAY OFFERED TO RELIEVE CRISIS IN 3D WORLD DEBT

Billboard 200

Dirty Dancing

Bad

Faith

Whitesnake

Tiffany

Notable Births

Historical Events

Historical Context for December 30, 1987