LEAD:  INTERNATIONAL  The most sweeping trade bill in a generation was passed by the Senate, 85 to 11, and sent to the President. The legislation is intended to make the U.S. more assertive and competitive by giving the President broader powers to retaliate against unfair trading practices. The bill also seeks from foreign governments access to their markets similar to what the U.S.

BUSINESS DIGEST

LEAD: Projections by Government and private analysts indicate that droughts in North America and Asia are sharply curtailing the world's production of wheat, corn and other cereal crops, reducing grain stockpiles to their lowest levels since 1973.

World Grain Supplies Are Dropping

LEAD: A Federal judge today temporarily blocked Eastern Air Lines Inc.'s plans to curtail service sharply and lay off 4,000 workers.

Judge Temporarily Blocks Eastern Plans for Cutbacks

LEAD: Peace and prosperity has been the surest formula for electoral victory since the dawn of democracy in ancient Greece.

Political Memo; Bush Appears in Trouble Despite 2 Big Advantages

LEAD: ''NEVER mind that some of the galleries have disappeared,'' said Michel Hurst, who with his partner Robert Swope owns Full House, one of the East Village's most stylish home furnishings shops. ''We believe there will be a second wave of retail businesses, and we want to stay in a part of the city we like,'' Mr.

East Village: New Wave Of Creativity

LEAD: William Gross is sweltering through the steamy, sticky days of summer wishing he could walk into the nearest appliance store and buy the biggest air-conditioner in stock.

No Cooling Hum in This Urban Oasis

LEAD: The City of Yonkers prepared a ''doomsday scenario'' today as it paid its first daily fine for refusing to adopt a court-ordered housing desegregation plan. City officials said the scenario showed the city would run out of money to pay either fines or salaries in 18 days.

First Contempt Fine Is Paid by Yonkers Over Housing Plan

LEAD: This town is offering a free lot and $1,200 to anyone willing to move here.

Dying Rural Towns Play Let's Make a Deal

LEAD: The Secretary of Energy yesterday proposed an urgent effort to build new nuclear reactors in South Carolina and Idaho to replace aging, breakdown-prone plants that are at the heart of the system for maintaining the nation's arsenal of nuclear weapons.

U.S. Proposes Two New Reactors Of Differing Types to Aid Arsenal

LEAD: The Senate overwhelmingly passed and sent to the President today the most sweeping trade legislation in a quarter-century.

MAJOR TRADE BILL SENT TO PRESIDENT BY SENATE, 85-11

LEAD: He was slouched on a bench, by himself, in the last row of courtroom 506 in Foley Square, lulled into light sleep by the haunting arias of ''The Phantom of the Opera'' that flowed from the headset of his son's cassette player.

Metro Matters; Mario Biaggi, Hearing a Sad, Haunted Voice

LEAD: Michael S. Dukakis, seeking to quash rumors about his mental health, eased his reluctance to discuss his medical history today and ordered his doctor to release a more detailed report that gave him a clean bill of health.

Dukakis Releases Medical Details To Stop Rumors on Mental Health

INSIDE

LEAD: Seven longtime Metro-North police officers were suspended yesterday after a five-year-old videotape came to light, showing them clowning in Grand Central Terminal while on duty and, in the case of one officer, harassing a homeless man with racist remarks.

7 Rail Officers Suspended For Joke Tape

LEAD: A committee of five oil ministers from the Organization of Petroleum Exporting Countries expressed concern today that the serious deterioration of oil prices since June is mainly the result of ''overproduction from some OPEC members as well as high level of production from non-OPEC members.''

OPEC Panel Does Little About Output

LEAD: The head of the Federal Deposit Insurance Corporation, L. William Seidman, said today that the savings and loan industry continues to pile up heavy losses and that some $50 billion would ultimately be required to rescue it.

F.S.L.I.C.'s Need Put at $50 Billion

LEAD: President Reagan today vetoed legislation governing $299.6 billion in military programs for the coming fiscal year and accused Democrats of pursuing a policy of ''weakness and accommodation'' on national defense issues.

Reagan Vetoes Pentagon Bill, Setting Up a Campaign Battle

LEAD: In this city where much of the nation's supply of corn, soybeans and wheat is exchanged, the crowds packing the trading pits are just one sign of how the drought has brought about a resurgence of the grain markets.

Drought Means Deluge in Grain Pit

LEAD: JUDITH MACHMER laughs as she remembers the day four years ago when she walked into a real-estate sales office in Hoboken, N.J., and announced that she wanted to buy a house for $70,000. A resident of Manhattan at the time, Miss Machmer, an admiralty lawyer, was taken to see one of the 80 tiny row houses that make up Willow

Tiny, Adaptable Houses In a Hoboken Enclave

LEAD: The developers of an Upper East Side apartment tower that is 12 stories too tall have asked the city for permission to keep the extra floors in exchange for renovating two East Harlem tenements as housing for the aged.

Owners of Too-Tall Tower Offer to Renovate 102d St. Tenements

LEAD: Frank Fabbri, World War II veteran and American Legionnaire, couldn't figure it out. This used to be a tough town, a ''Better Dead Than Red'' kind of town. Why were all those people rushing up to Jane Fonda for an autograph? Didn't they remember Vietnam? Hanoi Jane? ''It's sad,'' said Mr. Fabbri, one of a half-dozen demonstrators standing outside the brick warehouse-turned-movie-set where the actress was being mobbed by 200 starry-eyed extras last Friday.

Jane Fonda Finds Peace In Her Time

LEAD: Movie and television producers and writers reached a tentative agreement today to end the writers' 22-week-old strike. The strike, one of the longest ever in Hollywood, has already delayed the start of the next television season.

Producers and Striking Writers Reach a Pact

LEAD: THERE are certain things about being a lighthouse keeper that Henry Sieg, a Coast Guard petty officer, definitely will not miss: getting out of bed on cold, stormy nights to switch on the foghorn, rising at dawn and climbing the lighthouse tower to check the harbor buoys, bundling his children into neoprene survival suits in mid

Lighthouse Keepers Are Ending Their Watch

LEAD: Angola and Cuba today rejected a South African timetable for ending hostilities in southern Africa, accusing Pretoria of negotiating in bad faith and violating the ground rules of secret American-sponsored negotiations.

ANGOLA AND CUBA REBUFF PRETORIA ON TROOP PULLOUT

LEAD: The new NCNB Texas National Bank is borrowing nearly $2 billion daily from the Federal Reserve Bank of Dallas, but bank officials said today that they expected to reduce the bank's needs.

Borrowing At NCNB

Kelley Maureen O'Hara is an American former professional soccer player. She represented the United States national team on 160 occasions, winning two FIFA Women's World Cups and an Olympic gold medal. She spent most of her club career with National Women's Soccer League club NJ/NY Gotham FC. Known for her intensity, she played primarily as a wingback but played as a forward in college and occasionally played an attacking role in her professional career.

August 4, 1988

Headlines from August 4, 1988

BUSINESS DIGEST

World Grain Supplies Are Dropping

Judge Temporarily Blocks Eastern Plans for Cutbacks

Political Memo; Bush Appears in Trouble Despite 2 Big Advantages

East Village: New Wave Of Creativity

Billboard 200

Appetite For Destruction

Hysteria

Roll With It

Tracy Chapman

Dirty Dancing

Notable Births

Historical Context for August 4, 1988